A reliability-based conceptual framework for carbon trading management in the construction sector

The construction sector is increasingly impacted by carbon trading policies across its supply chains in various countries. These policies require construction entities to purchase carbon permits if their emissions exceed allocated limits, while those with lower emissions can sell excess permits. A key challenge is the effective allocation of carbon responsibility, which directly affects the cost- effectiveness and the success of carbon trading in reducing the sector emissions. However, quantifying uncertainty in carbon emissions remains a significant challenge. This paper introduces a reliability- based framework that captures uncertainties and interactions between carbon emissions and allocations under a shared responsibility model between construction producers and project owners. It enhances the theoretical understanding of carbon emission trading by offering an evidence-based approach for evaluating and refining carbon trading mechanisms in the construction sector. Additionally, the framework’s effectiveness can be further assessed using data from construction entities, focusing on carbon emission levels and allocations.