Accelerating Energy Efficiency in Buildings

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With buildings accounting for over 34% of global final energy demand and 37% of total CO2 emissions, the sector is critical for driving progress towards doubling energy efficiency improvements by 2030. In the IEA Net Zero Scenario (NZE), average energy intensity improvement rates for buildings reach over 5% on average from now until 2030, a more than quadrupling of the average rate in the last decade. While COP28 has indeed brought energy efficiency to the forefront, the focus must now shift to more ambitious policy action, incentives and support from countries, organizations, and financial institutions. Accelerating energy efficiency improvements in buildings will require a package of policies, incentives and information measures to maximise progress.

Building codes play a pivotal role in advancing energy efficiency and sustainability in the buildings sector, and global coverage has expanded in recent years. Around 80% of all building codes globally are mandatory, but one third have not been updated since 2015. Only a few building codes set requirements for achieving net zero performance of new and retrofitted buildings. Developing countries are anticipated to see an 80% growth in floor area by 2030, emphasizing the importance of integrating energy-efficient practices early on. In Africa, 70% of buildings are yet to be constructed and the continent is expected to experience the fastest urban population growth by 2050. 

Currently, numerous buildings are being financed, designed, and constructed without adequate energy efficiency measures, underscoring the critical need for collaboration to ensure sustainability across the built environment. In the buildings sector strengthened policies on energy efficiency should be combined with financial incentives such as green mortgages, preferential loans and grants that can motivate consumers and developers to invest in energy efficient solutions. 

As countries look to formulate their updated submissions for Nationally Determined Contributions (NDCs), implementing an effective policy package for energy efficiency in buildings can ensure a pathway for increased ambition and action. This event will aim to bring together stakeholders from governments, the private sector, financial institutions and civil society to explore the actions to be taken now that can drive energy efficiency in the buildings sector out to 2030. Aligning policies, incentives and information measures to achieve optimal outcomes in a range of global settings will form a key part of discussions, aiming to draw on best practices from around the world.  

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