00:00The way Europe builds results in a massive carbon footprint.
00:04Timber 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, but it depends again on the
02:51context.
02:52The cost differential comes because first, the transportation costs are lower, it'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, but 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 is growing faster than anywhere else in
03:35the 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 wood 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.
03:56That is a huge growth market indeed.
03:58Indeed. And is there any quality compromise here?
04:02There need not be a quality compromise because recent innovations in engineered wood creates a more stronger and more versatile
04:13structures.
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, insurance 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, the engineered timber products, which are fire resistant and which
04:50can hold up against fire risks.
04:52That work is ongoing.
04:54There is a higher degree of communication between constructors, the production companies and insurers.
05:02And this is picking up pace.
05:04And especially in areas where the fire risk is low, this 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 while ensuring all wood is responsibly sourced and fully traceable?
05:25Looking ahead, the only way we can scale up timber construction is by making sure that the timber is responsibly
05:38sourced and responsibly managed across the value chain.
05:41Because without that, there is no way to ensure either stability of supply or maintaining global forests, Europe's forests to
05:52the extent needed to provide the ecosystem services that the world right now needs.
05:58But three conditions have to be met.
06:00First, first, not just the environmental services, the nature, the biodiversity and the ecosystem services have to be maintained and
06:09supported.
06:10The forest stewards, the communities living around, the 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 has to be prioritized.
06:26In other words, as you manage the forest, are we prioritizing the growth and usage of high value timber?
06:35And the third piece is that the reuse, recycling and cascading of timber has to be scaled up.
06:44And that is particularly important because engineered wood can take low value timber and manufacture it into really high quality,
06:52good construction material.
06:54So if all three pieces come together, then 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, we have forest fires raging across Europe.
07:13We've had thousands dying in heat waves.
07:17The climate crisis is affecting consumers, businesses and 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 Bhattachaji, 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 program.
07:46Thank you for having me.
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