00:00The way Europe builds results in a massive carbon footprint.
00:05Timber construction is growing faster than anywhere else in the world.
00:08Getting it wrong means literally lives are at risk.
00:17Welcome to The Big Question, the series from Euronews where we speak to leaders in business.
00:24And today I'm joined by the Director General of the Forest Stewardship Council, Shubhra Bhattacharjee.
00:31Thank you very much for joining us on The Big Question.
00:33The pleasure is mine. Thank you for having me.
00:35Okay, well, now you're here today to talk to me about Europe's construction industry.
00:41Most buildings in Europe, of course, are built from brick, concrete and steel.
00:46So first of all, tell me more about the role the FSC is playing in the way Europe builds.
00:51The global construction sector has doubled its carbon footprint in the last three decades
00:57and is set to double it again by 2050, which means that under a business-as-usual scenario,
01:06just the construction industry globally will take up the entirety of the annual carbon budget
01:12for a 1.5 degree to 2 degree centigrade target globally.
01:17Timber has the potential to reduce that carbon footprint significantly,
01:22but only if timber is responsibly sourced.
01:26FSC helps forest owners, forest managers and those who work with wood
01:32make sure that wood is responsibly sourced and is at the same time economically viable.
01:44Can you just elaborate on why timber is a more favourable material?
01:48So when trees are growing, they capture and store the carbon.
01:52And that carbon can be stored inside a structure during the entirety of the lifetime of that structure.
01:59So it embodies carbon rather than emitting, like cement, like steel.
02:06Second is because it is significantly lighter, it means that in transportation, in installation
02:12and in the entirety of the process of construction, it is less energy intensive.
02:17But now imagine, once the construction is done, while the building or the construction is standing,
02:24it will use less energy because it is weather resistant.
02:29At the end of the life cycle, you can reuse, recycle that wood, and it would also take up less
02:34space in landfills.
02:35So over the entirety of the life cycle, it has a significantly lower footprint.
02:41It can, not always.
02:43And what's the cost difference?
02:44Depending on the context, the cost difference could go up to 25% less.
02:50But it depends, again, on the context.
02:52The cost differential comes because, first, the transportation costs are lower.
02:57It's lighter to handle.
02:59Your on-site labour costs are lower because you can bring in prefabricated structures.
03:05That results, first, in the buildings or the construction getting done faster,
03:11but also lowering your insurance costs.
03:14for the duration of the construction.
03:16And that's, therefore, cheaper for people to buy, then, using timber.
03:21So why is it not more popular in Europe at the moment?
03:24It is gaining popularity in Europe.
03:27In fact, North America and Europe are the two markets where timber construction
03:33is growing faster than anywhere else in the world.
03:36What's more, the policy signals are very clear.
03:40The European Union and the Swiss government have funded research on engineered wood to make
03:46wood more amenable for construction.
03:49It is a $5 billion market that's growing at 10% on average per year.
03:54So the potential is huge.
03:55That is a huge growth market, indeed.
03:59And is there any quality compromise here?
04:02There need not be a quality compromise because recent innovations in engineered wood
04:09creates a more stronger and more versatile structures.
04:14And it gives you a material that is both weather-resistant, fire-resistant, lighter, and yet stronger.
04:21And the innovation is moving fast.
04:24So it is not a static picture we are looking at.
04:27So at the moment, for people looking to perhaps build a new home with timber,
04:33insurance is still a consideration.
04:36Would timber frame houses not be more susceptible to higher insurance premiums, for example?
04:43Insurers need to be educated about the new timber products,
04:47the engineered timber products which are fire-resistant
04:49and which can hold up against fire risks.
04:53That work is ongoing.
04:54There is a higher degree of communication between constructors,
04:59the production companies, and insurers.
05:02And this is picking up pace.
05:04And especially in areas where the fire risk is low,
05:08these insurance rates are already beginning to level out.
05:11So it is a matter of time before the insurance industry catches up.
05:15And looking ahead, can Europe realistically scale up timber construction
05:20while ensuring all wood is responsibly sourced and fully traceable?
05:26Looking ahead, the only way we can scale up timber construction
05:32is by making sure that the timber is responsibly sourced
05:38and responsibly managed across the value chain.
05:41Because without that, there is no way to ensure either stability of supply
05:47or maintaining global forests, Europe's forests, to the extent needed
05:53to provide the ecosystem services that the world right now needs.
05:58But three conditions have to be met.
06:00First, not just the environmental services, the nature, the biodiversity,
06:06and the ecosystem services have to be maintained and supported.
06:10The forest stewards, the communities living around,
06:14the indigenous peoples, the workers, their rights have to be protected.
06:18So that's the first precondition.
06:20The second is production of high-value construction timber
06:25has to be prioritized.
06:26In other words, as you manage the forest,
06:30are we prioritizing the growth and usage of high-value timber?
06:35And the third piece is that the reuse, recycling,
06:39and cascading of timber has to be scaled up.
06:44And that is particularly important because engineered wood
06:47can take low-value timber and manufacture it
06:51into really high-quality, good construction material.
06:54So if all three pieces come together,
06:57then it is absolutely possible to scale up timber usage in Europe.
07:01And finally, what is at risk if Europe gets this balance wrong?
07:07If we look around us, just this year,
07:10we have forest fires raging across Europe.
07:13We've had thousands dying in heat waves.
07:17The climate crisis is affecting consumers, businesses,
07:23and communities alike.
07:26Getting it wrong means literally lives are at risk.
07:31Economy is at risk.
07:33Businesses are at risk.
07:34That's a very powerful note to end it on.
07:37Shubhra Bhattacharji, Director General of the Forest Stewardship Council,
07:42thank you very much for joining us on The Big Question.
07:44It's been a pleasure to get your insights on this programme.
07:47Thank you for having me.
07:49Thank you.
07:49Thank you.
07:56Music
07:57Music
07:57Music
07:57Grazie a tutti.
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