Are the Electrical Equipment Business Greening Trends Heating Up or Cooling Off?
The construction industry accounts for 40% of global energy-related carbon emissions, and three-quarters of those emissions are attributable to building operations. The global building stock is forecasted to double by 2050 – the equivalent of building one New York City a month for the next forty years.
Meanwhile, governments across the globe are increasingly embracing the idea of net-zero buildings as part of the future infrastructure to combat climate change from GHG emissions, leading to a slew of net zero-friendly policies. Since HVAC systems are significant energy consumers in buildings, construction companies look to HVAC companies for energy-efficient (low carbon dioxide emitting) systems to meet the thresholds set forth under the new regulations on buildings and constructions.
Building owners are increasingly prioritizing the quality of HVAC units installed in the buildings. This trend could continue as building owners look to get accredited by building rating agencies like LEED and WELLS to differentiate themselves and gain the highest ROI.
90% of companies have 2030+ carbon emission and energy consumption goals and plan to pursue LEED Zero or LEED Platinum. The top three goal-setting reasons include "increase building performance or value," "positively impact the community," and "access green investments." The top five were "meet investor demands" and "meet customer demands."
Commentaries from HVAC companies in the past few quarters suggested an acceleration of the residential replacement cycle given:
- Work-from-home phenomenon (people using HVAC more and longer).
- Hotter weather (life of cooling systems reduced).
- The approaching deadline to replace R-22 refrigerant systems and windows.