The built environment ecosystem, encompassing everything from homes to highways, is responsible for about one-fourth of global greenhouse-gas emissions. The bulk of those emissions, at about 75 percent, comes from space and water heaters, partner Brodie Boland and colleagues explain. Heat pumps alone could reduce these emissions by about 60 percent.

Most operational emissions in multifamily homes are caused by water and space heating.

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A Voronoi pie chart shows the average annual CO2 emissions from a dwelling, totaling 2,178 kilograms. The emissions are split across various sources. Appliances contribute 198 kilograms and cooking adds 44 kilograms. Further emissions are from electricity for space heating at 154 kilograms and lighting at 110 kilograms. Natural gas for space heating accounts for 770 kilograms, oil and propane for space heating add 242 kilograms, space cooling contributes 176 kilograms, and water heating produces 484 kilograms. Notably, the combined segment for space heating, which includes electricity, natural gas, and oil and propane, accounts for 53 percent of the total emissions per dwelling.

Source: McKinsey Real Estate Climate Action Platform.

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To read the report, see “Building value by decarbonizing the built environment,” June 12, 2023.