RETROFIT & SUSTAINABLE BUILDINGS
Decarbonising buildings: do green materials deliver?
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Harry Kilby, analyst, energy and resources, Edison Group asks if green materials are the answer to achieving greener buildings
s the world intensifies efforts to reach net-zero carbon emissions, few sectors face as complex or consequential a transition as the built environment. Often
overshadowed by the flashier narratives of electric vehicles or renewable power, buildings, in both their construction and operation, are responsible for nearly 40% of global greenhouse gas emissions. In the UK, buildings account for around a quarter of national emissions. If we are to meet our Net-Zero goals, the decarbonisation of our built environment must become a core focus, and fast.
The problem hidden in plain sight
The sheer scale of the challenge is formidable. Around 80% of the buildings that will exist in 2050 are already standing, meaning retrofitting must accompany any effort to build greener. New construction cannot simply be “less bad”; it must be actively good by utilising materials and methods that reduce both operational and embodied carbon. But do green materials necessarily result in
greener buildings? And how can architects, developers, and investors make informed decisions in a market crowded with sustainability claims and regulatory noise?
Green materials: progress, not perfection
Our recent Edison Group research, based on conversations with European building materials companies, reveals that significant strides are being made in this area, but the path forward is nuanced. Many firms are already reporting measurable progress in emissions reductions, particularly in transportation and energy sourcing. However, the production processes themselves that often involve energy-intensive operations like kiln firing or cement mixing remain carbon-heavy. What is encouraging is that material innovation is now viewed as a commercial imperative, not just an ESG box-ticking exercise. For example, UK brickmaker Michelmersh is piloting hydrogen- fired kilns to cut firing emissions by 60%, while SigmaRoc has launched a carbon capture and utilisation trial plant aimed at neutralising emissions from lime production. Marshalls, a concrete manufacturer, is embedding waste carbon directly into its products via CarbonCure technology. Although these may seem like minor shifts, they represent the foundations of a more sustainable industry. Yet despite this progress, barriers remain. New
production technologies are often sub-scale and commercially unviable without wider government support. Hydrogen, for instance, remains expensive and not widely available at the necessary scale. Similarly, carbon capture for smaller facilities like brick kilns may not yet offer a return on investment.
Regulation: the push the sector needed
Fortunately, policy is finally catching up. The UK’s Net Zero Carbon Buildings Standard, launched in 2024, offers much-needed consistency in performance benchmarks. Meanwhile, Future Homes and Buildings Standards will require all new buildings to be “zero-carbon ready” by 2025, pushing developers to consider material emissions from day one. Importantly, the retrofit challenge is also being taken seriously. With 18 million UK homes currently rated EPC ‘D’ or below, government funding of £1.4bn over 10 years is helping to mobilise market activity. Retrofitting offers arguably the greatest near-term opportunity for
24 BUILDING SERVICES & ENVIRONMENTAL ENGINEER SEPTEMBER 2025
carbon savings and materials innovation and is set to drive a decade-long demand cycle for construction and materials firms that can meet the challenge. However, without Carbon Border Adjustment Mechanisms (CBAM), there is a risk that domestic progress will be undercut by high- carbon imports. Multiple firms in our research flagged this concern, reiterating the need for aligned policy and trade regulation.
The investor angle: opportunity in transition
For investors, the move towards green building materials and net-zero construction is creating new winners and losers. This offers compelling long-term value for those who can spot the difference.
Companies that can offer validated, low- carbon solutions will benefit from expanding addressable markets, driven by regulation, consumer demand, and financing shifts. ESG integration in capital markets is becoming more rigorous, creating a two-tier system in which climate-aligned firms benefit from better access to capital and favourable lending terms. Indeed, the rise of green finance is accelerating the bifurcation of the sector. Banks are increasingly offering preferential terms for sustainable developments, while traditional, high-carbon construction projects face higher borrowing costs or capital access challenges.
Industry feedback: reality from the ground
Our interviews with senior management across companies like Forterra, Genuit, Alumasc, and Ibstock offered three critical insights. First, the transition is being taken seriously; not just for reputational reasons but as a matter of long-term competitiveness. Management teams understand that decarbonisation will define the next era of growth in construction. Second, while innovation is underway, the most difficult decarbonisation tasks lie ahead, particularly in raw material processing.
For example, switching from natural gas to hydrogen or electricity in high-heat industrial processes is technically possible, but commercially untested at scale. Third, housebuilders tend to focus on Scope 1 and 2 emissions (those they directly control), whereas material emissions fall under Scope 3, leading to a mismatch in responsibility and sometimes limited incentives to adopt higher- cost sustainable materials.
Beyond the product: systems thinking required
While product innovation is essential, it must be accompanied by systems thinking – looking at the full life cycle of buildings and materials. This includes demand reduction through smarter design, improved recycling and circularity, and supply chain decarbonisation. In fact, some of the most promising innovations we have seen are in production processes and supply logistics. Electrified fleets, renewable energy sourcing, smart insulation materials, and modular building systems are changing not just what we build, but how we build it.
Conclusion: greener materials are essential but not a silver bullet
So, do greener materials lead to greener buildings? The answer is: yes, but only when combined with conscious design, rigorous regulation, and systemic thinking. Low-carbon bricks or concrete alone will not deliver net-zero if used in poorly insulated, fossil- fuel-heated buildings. Nevertheless, the direction of travel is clear and encouraging. The sector is moving from intent to action, and from innovation to implementation. For material suppliers, construction firms, regulators, and investors alike, the challenge of decarbonising the built environment is becoming both a necessity and a catalyst for transformation and value creation. For both compliance and commercial success, those who lead in this transformation will not only reduce emissions but redefine the future of how we build.
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