Focuses on the urgent need to address greenhouse gas emissions from the global buildings sector, which is a significant contributor to climate change. It outlines strategies for reducing emissions from new and existing buildings, emphasizing that decarbonizing this sector is crucial for meeting international climate targets, such as those set by the Paris Agreement.

Key Findings

1. Significant Emissions Source: The buildings sector accounts for approximately 37% of global energy-related CO2 emissions. This includes direct emissions from using fossil fuels in buildings and indirect emissions from electricity and heat consumption.
2. Energy Efficiency: Improving energy efficiency in buildings is one of the most cost-effective ways to reduce emissions. It highlights that retrofitting existing buildings with energy-efficient technologies (e.g., insulation and efficient heating systems) can significantly cut energy use and emissions.
3. Electrification and Renewable Energy: Electrifying building systems (such as heating and cooling) and powering them with renewable energy are vital strategies for decarbonization. It stresses the importance of transitioning from fossil fuel-based systems like gas boilers to electric heat pumps powered by clean energy.
4. Building Codes and Standards: Strengthening building codes and standards is essential for ensuring that new construction is energy-efficient and low-carbon. It calls for governments to adopt stricter regulations that mandate high-performance building designs and materials.
5. Embodied Carbon: Beyond operational emissions, this policy also addresses embodied carbon—the emissions associated with the production, transportation, and disposal of building materials. It emphasizes the need to use low-carbon materials (e.g., recycled steel, sustainable wood) to reduce the overall carbon footprint of construction projects.

Strategic Recommendations

• Policy Action: Governments should implement policies that promote energy efficiency, electrification, and using renewable energy in buildings. This includes financial incentives for retrofitting existing buildings and regulations that require new buildings to meet zero-emission standards.
• Private Sector Engagement: The private sector must participate by investing in green building technologies and adopting sustainable practices in construction and real estate development.
• Financing Mechanisms: Innovative financing solutions are needed to support large-scale retrofitting and electrification efforts. Public-private partnerships, green bonds, and other financial instruments can help mobilize the necessary capital.
• Holistic Approach: Advocates for a comprehensive approach that addresses operational and embodied carbon emissions across the entire lifecycle of buildings—from design and construction to operation and demolition.

Overview

Chapter 1: Buildings and construction sector in review: A reality check

Provides an overview of the current state of the buildings and construction sector, highlighting key trends, challenges, and the urgent need for action. It serves as a critical assessment of the sector, highlighting the urgent need for comprehensive action to address climate change and promote sustainable practices in the industry.

Key Themes and Insights

Post-Pandemic Recovery

• Discusses the construction sector’s recovery following the COVID-19 pandemic. As economies reopened, there was a notable resurgence in construction activities, driven by pent-up demand for housing and commercial spaces. This recovery was facilitated by easing supply chain constraints that previously hampered construction efforts.

Economic Challenges

• Despite the recovery, the sector faces economic challenges. Rapid inflation and rising interest rates have increased borrowing costs, slowing construction in major developing economies like China, Mexico, Indonesia, and India.

Energy Demand and Emissions Growth:

• Energy demand and building sector emissions continue to rise, increasing about 1% from the previous year. This trend shows the sector is not meeting global climate targets, highlighting the urgent need for effective decarbonization strategies.

Future Projections and Opportunities:

• By 2050, 60% of buildings will be new construction, offering a chance for sustainable development. Today’s decisions on new buildings will significantly impact future emissions and energy use. By 2030, 20% of existing buildings need zero-carbon-ready renovations, emphasizing the importance of retrofitting current structures.

Investment Gaps and Financial Challenges:

• Highlights insufficient investment in building decarbonization. While over US$285 billion was invested in 2022, 2023 projections show a decline due to economic challenges. It urges developing innovative business models and clear metrics to encourage green investments in the sector.

Policy Alignment and National Commitments:

• Stresses the need for more robust national policies and commitments. It notes that many NDCs lack specific actions and targets for building energy efficiency and adaptation. It exhortscountries to align their NDCs with Paris Agreement goals, especially for achieving net-zero emissions in the buildings sector.

Chapter 2: Global buildings and construction status

Analyzes the global buildings and construction sector, examining trends in energy use, emissions, and policies. It highlights the complex interplay between construction activities, energy consumption, and emissions, underscoring the urgent need to decarbonize the sector and align investments with climate goals.

Key Themes and Insights

Building Construction Trends:

• Outlines the recent trends in building construction, noting a rebound in activities as economies recover from the pandemic. It highlights the increasing demand for new housing and commercial buildings, which has returned to pre-pandemic levels. However, this growth is tempered by economic uncertainties and rising costs.

Energy Consumption in Buildings:

• Examines energy use trends in buildings, noting improvements in heating and cooling efficiency. Despite these gains, the sector’s overall energy demand continues to grow, highlighting the need for more aggressive efficiency measures.

Emissions Trends:

• Presents data showing continued growth in building sector emissions, indicating insufficient progress toward decarbonization. It stresses the need to address both operational emissions (from energy use) and embodied carbon emissions (from materials and construction).

Policy Developments:

• Examines the policy landscape for buildings and construction. While many countries have developed climate action plans, it notes that building energy codes in over 81 countries often lags behind net-zero operational emissions targets.

Investment in Decarbonization:

• Investment trends in building decarbonization are discussed, highlighting that while investment exceeded US$285 billion in 2022, it is expected to decline in 2023 due to unfavorable economic conditions. Stresses the need for increased investment to meet net-zero targets for new and existing buildings by 2030 and 2050, respectively.

Global Initiatives and Collaborations:

• Highlights international efforts to address climate change within the buildings sector, including initiatives like the Buildings Breakthrough launched at COP28. These efforts aim to promote the adoption of near-zero emission and resilient buildings as the new standard by 2030.

Chapter 3: Sustainable buildings and construction policies

Examines policies promoting sustainable building and construction. It assesses current regulations, identifies shortcomings, and showcases effective initiatives. Offers a comprehensive review of policies shaping sustainable construction, noting advancements, ongoing issues, and the urgent need for improved regulations and investments to achieve net-zero emissions in the sector.

Key Themes and Insights

Diverse Policy Landscape:

• Begins by acknowledging the diversity of the global policy environment regarding building sustainability. While some countries have made significant strides in developing comprehensive policies, many still lack coordinated strategies to address sustainability, energy performance, and CO2 emissions in the building sector.

Nationally Determined Contributions (NDCs):

• Emphasizes NDCs under the Paris Agreement. While progress has been made in integrating building-related climate action, many NDCs still don’t align with net-zero operational emissions targets. Countries are urged to enhance commitments and set clear targets for building energy efficiency.

Leading National Policies:

• Highlights critical national policies promoting sustainable buildings. The EU’s revised Energy Performance of Buildings Directive (EPBD) sets zero-emission standards for new public buildings (2028) and all new buildings (2030), phasing out fossil fuel boilers and enforcing minimum energy performance standards for non-residential buildings.

Building Codes and Standards:

• Discusses the role of building energy codes in driving energy efficiency and emissions reductions. While over 81 countries have established such codes, many are outdated and do not reflect current best practices. It advocates modernizing these codes to ensure they effectively achieve sustainability goals.

Investment and Financing Mechanisms:

• Emphasizes the need for more investment in sustainable construction. It outlines innovative financing methods and models to boost energy efficiency and zero-carbon building investments. Underscores financial incentives and regulations drive private sector engagement in green building projects.

Global Collaboration and Best Practices:

• Underlines global partnerships and knowledge exchange. It showcases effective initiatives promoting sustainable building practices. These collaborations enable countries to learn and implement strategies for reducing building sector emissions.

Chapter 4: Investment and financing for sustainable buildings

Explores financing strategies for sustainable construction. It examines investment patterns, funding challenges, and innovative capital-raising methods. Overviews sustainable building investments, spotlighting key trends and opportunities. It underscores the vital role of creative financing and partnerships in driving investments for a sustainable, resilient building sector.

Key Themes and Insights

Current Investment Trends:

• Global investment in building energy efficiency reached US$285 billion in 2022 but is projected to decline in 2023 due to economic factors. Sustainable building investments still comprise a small portion of total sector investment.

Investment Gaps:

• Significant investment gaps persist, especially in developing countries. Additional funding is needed to meet climate targets, including the EU’s proposed 55% emissions reduction by 2030. The EU alone requires approximately US$300 billion annually for building renovations to achieve its climate goals.

Barriers to Financing:

• Outlines key barriers to sustainable building investment: high upfront costs, investor unawareness, and lack of incentives. Economic instability and rising interest rates further deter long-term commitments to sustainable projects.

Innovative Financing Mechanisms:

• Explores innovative financing mechanisms to bridge the investment gap, including green bonds, public-private partnerships, and blended finance models. It stresses the need for tailored financial products to stimulate investment in the building sector.

Role of Public Investment:

• Public investment is vital for transitioning to sustainable buildings. The EU’s Recovery and Resilience Facility exemplifies this by allocating substantial funds for climate-related projects. It exhortsgovernments to boost financial support for sustainable building initiatives.

Private Sector Engagement:

• Private sector involvement is key to boosting sustainable building investments. Stresses the need for clear regulations and incentives to spur private investment in energy-efficient, low-carbon construction. It highlights how companies’ sustainability targets can drive green building investments.

Chapter 5: Global Buildings Climate Tracker

Introduces the Global Buildings Climate Tracker (GBCT), a tool for assessing decarbonization progress in the buildings sector. This composite index evaluates policy effectiveness and emission reduction actions. Outlines the GBCT’s structure, presents key findings, and stresses the importance of ongoing assessment in meeting climate goals.

Key Themes and Insights

Purpose of the GBCT:

• A tool for tracking the progress of global efforts to decarbonize the buildings sector. It provides a comprehensive overview of emissions associated with building operations and evaluates the impact of various decarbonization initiatives.

Composite Index Structure:

• Comprises seven components tracking CO2 emissions, policy implementation, and decarbonization effectiveness. This multi-faceted approach provides insights into the various factors influencing building emissions reductions.

Data and Reference Scenarios:

• Uses data from 2015 to 2022 to measure progress against a reference scenario that envisions full decarbonization of the building sector by 2050. This reference scenario is a benchmark for evaluating current efforts and future trajectories.

Key Findings:

• Reveals mixed progress in emissions reduction. While some advancements have been made, major obstacles persist. Many nations lag in implementing effective decarbonization policies and actions, hindering the achievement of targets.

Importance of Monitoring:

• Enables ongoing assessment of progress in decarbonization. It offers key insights for policymakers, stakeholders, and the public on strategy effectiveness and areas needing improvement.

Encouraging Accountability:

• By providing a clear framework for tracking progress, the GBCT encourages accountability among governments and stakeholders. It highlights the need for transparent reporting and data sharing to foster collaboration and drive further action in the building sector.

Chapter 6: Buildings climate policy gap review

Analyzes policy gaps in building sector decarbonization, reviewing current climate policies and identifying areas for improvement. It highlights vital gaps and stresses the need for comprehensive strategies, stakeholder engagement, and swift action to meet decarbonization targets and global climate commitments.

Key Themes and Insights

Assessment of Current Policies:

• Begins by assessing the effectiveness of existing climate policies in the building sector. While progress has been made, many countries still lack comprehensive and robust policies aligning with net-zero emissions targets.

Identification of Policy Gaps:

• Focuses on identifying specific policy gaps that hinder progress towards decarbonization. These gaps include insufficient regulatory frameworks, outdated building energy codes, and a lack of detailed Nationally Determined Contributions (NDCs) that address building emissions.

Need for Comprehensive Strategies:

• Emphasizes the necessity of comprehensive strategies that integrate energy efficiency, renewable energy use, and sustainable building practices. It calls for policies that target operational emissions and consider emissions from building materials and construction processes.

Importance of Data and Monitoring:

• Highlights the importance of data collection, monitoring, and reporting mechanisms to track progress effectively. It stresses that improved data availability can help policymakers make informed decisions and adjust strategies as needed.

Role of Stakeholders:

• Engaging various stakeholders, including governments, private sector actors, and civil society, is crucial for closing the policy gaps. Discusses the importance of collaboration and knowledge sharing to promote best practices and innovative solutions in the building sector.

Accelerated Action Required:

• Outlines the urgent need for accelerated action to bridge the identified gaps. It suggests that countries must enhance their commitments and implement effective measures to achieve the necessary reductions in emissions by 2030 and 2050.

Chapter 7: Deep dive – Adaptation and resilient construction methods

Examines strategies to enhance building resilience against climate change impacts and explores methods to create sustainable structures capable of withstanding environmental challenges. It highlights the need for adaptive construction techniques and emphasizes building resilience strategies, supportive policies, and obstacles to achieving sustainable, resilient built environments.

Key Themes and Insights

Definition of Adaptation and Resilience:

• Adaptation refers to actions taken to adjust to actual or expected climate effects, and resilience refers to the capacity of systems to cope with hazardous events or trends. These concepts are crucial for developing buildings that can endure climate-related stresses.

Vulnerability of Existing Buildings:

• Highlights the vulnerabilities of existing buildings, particularly in the context of increasing temperatures, extreme weather events, and rising sea levels. Poorly designed or constructed buildings may face significant risks, including overheating, structural damage, and flooding.

Strategies for Resilient Construction:

• Improved Design: Incorporating design features that enhance ventilation, insulation, and energy efficiency to mitigate overheating and reduce energy consumption.
• Material Selection: Using durable and sustainable materials that can withstand extreme weather conditions and reduce the overall carbon footprint of construction.
• Site Planning: Considering the geographical and environmental context when planning new developments to minimize risks associated with climate change.

Integration of Nature-Based Solutions:

• Emphasizes the role of nature-based solutions (NbS) in building resilience. These solutions can include green roofs, urban forests, and porous surfaces that help manage stormwater, reduce heat, and enhance biodiversity.

Policy and Regulatory Frameworks:

• Discusses the need for supportive policies and regulatory frameworks that promote resilient construction practices. This includes updating building codes to incorporate resilience measures and incentivizing sustainable materials and designs.

Challenges in Implementation:

• Acknowledges the challenges faced in implementing resilient construction methods, particularly in low-income and emerging economies with limited resources. Stresses the importance of capacity building and access to financing to support these efforts.

Case Studies and Best Practices:

• Provides examples of successful adaptation and resilient construction projects from various regions, showcasing innovative approaches and lessons learned that can be replicated elsewhere.

Chapter 8: Deep Dive – Innovations in business cases (renovation and green building construction industry)

Examines innovative business models revolutionizing renovation and green building sectors. It showcases how these innovations boost efficiency, cut costs, and speed up sustainable building adoption. Chapter 8 underscores the transformative impact of these models, highlighting centralized planning, digital tools, supportive policies, and financial mechanisms as key drivers of efficiency and sustainability in construction.

Key Themes and Insights

Need for Innovative Business Models:

• Begins by addressing the challenges the construction and renovation sectors face, including low productivity and fragmented value chains. It emphasizes the necessity for innovative business models to drive building decarbonization and improve overall sector performance.

Centralized Planning and Coordination:

• Central planning and coordination streamlines renovation processes, boosting efficiency and reducing time and costs. A German project exemplifies this, transforming a building into a climate-neutral structure in just 22 days through optimized coordination.

Standardization and Scalability:

• Discusses the need for standardizing best practices across different building types and climate zones. This standardization is crucial for the scalability and replication of successful renovation strategies, making it easier to implement across various contexts.

Digitalization in Construction:

• Emphasizes the role of digital technologies, such as 3D scanning and printing, in enhancing renovation processes. These technologies facilitate better planning, simulation of renovation solutions, and prefabrication of components, ultimately saving time and resources.

Emergence of Startups:

• Notes the rise of startups that act as centralized solution providers, offering services from renovation coordination to installing renewable energy systems like solar photovoltaics (PV). These startups are reshaping the traditional roles of renovation and energy service providers.

Supportive Government Policies:

• Highlights the importance of supportive government policies to enable these innovative business models. Examples from the Netherlands and Germany illustrate how policies can incentivize energy-efficient renovations and integrate renewable energy systems.

Addressing Financial Barriers:

• Discusses the financial barriers that often hinder renovation efforts. Innovative financing mechanisms, such as performance contracting and building performance guarantees, are suggested to reduce investment risks and encourage more extensive renovations.

Chapter 9: Deep dive – Nature Based Solutions and Biophilic Design

Examines the integration of natural elements in architecture and urban planning to enhance sustainability and occupant well-being. This chapter delves into nature-based solutions (NbS) and biophilic design principles, benefits, and implementation strategies. It underscores their importance in creating sustainable, resilient, and healthy urban spaces while highlighting the need for collaboration and education to address implementation challenges.

Key Themes and Insights

Definition of Nature-Based Solutions (NbS):

• Defines NbS as actions that protect, sustainably manage and restore natural or modified ecosystems to address societal challenges while benefiting human well-being and biodiversity. NbS leverages natural processes to enhance urban resilience and sustainability.

Biophilic Design Principles:

• Biophilic design is introduced as an approach that seeks to connect people with nature by using natural materials, light, ventilation, and design elements that encourage interaction with the natural environment. This design philosophy aims to improve occupants’ health, productivity, and overall quality of life.

Benefits of NbS and Biophilic Design:

• Improved Air and Water Quality: Natural systems can enhance air and water quality in urban environments.
• Biodiversity Support: NbS can create habitats for various species, promoting urban biodiversity.
• Climate Regulation: These solutions can help mitigate urban heat islands and manage stormwater effectively.
• Enhanced Well-Being: Biophilic design has been shown to reduce stress, improve mood, and increase productivity among building occupants.

Implementation Strategies:

• Green Infrastructure: Incorporating green roofs, walls, and urban forests to enhance ecological functions.
• Community Engagement: Involving local communities in the design and implementation process to ensure solutions meet their needs and preferences.
• Multidisciplinary Approaches: Collaborating across disciplines, including ecology, architecture, and urban planning, to create holistic solutions.

Challenges and Barriers:

• Acknowledges the challenges in adopting NbS and biophilic design, such as limited awareness, lack of technical expertise, and financial constraints. It emphasizes the need for education and capacity building to overcome these barriers.

Case Studies and Best Practices:

• Provides examples of successful NbS and biophilic design projects worldwide, showcasing innovative approaches and the positive impacts these solutions have had on urban environments and communities.

Chapter 10: Roadmaps for buildings and construction

Outlines critical strategies for achieving sustainability and decarbonization in buildings and construction. It emphasizes developing clear roadmaps to guide stakeholders in climate action. It stresses the importance of structured plans, stakeholder engagement, and monitoring mechanisms to ensure effective implementation and progress toward climate goals in the sector.

Key Themes and Insights

Importance of Roadmaps:

• Begins by highlighting the critical role of roadmaps in providing structured pathways for countries and regions to transition toward sustainable building practices. These roadmaps help set clear goals, timelines, and actions necessary for reducing emissions in the sector.

Components of Effective Roadmaps:

• Baseline Assessment: Understanding the current state of the building sector, including emissions levels and energy consumption.
• Stakeholder Engagement: Involving various stakeholders, including government agencies, industry players, and community members, to ensure comprehensive input and support.
• Identification of Challenges and Opportunities: Recognizing barriers to implementation and potential areas for improvement or innovation.
• Action Plans: Developing specific actions, timelines, and targets to achieve the desired outcomes.

Global Examples and Initiatives:

• Provides examples of successful roadmap initiatives from various countries, showcasing how these frameworks have driven climate action in the buildings and construction sector. It mentions the Global Alliance for Buildings and Construction (GlobalABC) and its efforts to support countries in developing their roadmaps.

Pilot Programs:

• Discusses pilot programs implemented in Ghana, Senegal, Bangladesh, and India. These programs aim to test and refine the roadmap development process, ensuring that the guidance provided is practical and effective.

Standardization and Simplification:

• A significant focus is placed on standardizing the roadmap creation process. This includes developing easy-to-use tools and templates that simplify the process for various stakeholders, making it more accessible and efficient.

Monitoring and Evaluation:

• Emphasizes the importance of establishing mechanisms for monitoring and evaluating the progress of roadmap implementation. This ensures accountability and allows adjustments to stay on track with climate goals.

Chapter 11: Buildings Breakthrough

Outlines the Buildings Breakthrough—a global initiative to achieve near-zero emission and resilient buildings by 2030. It details this collaborative effort’s objectives, commitments, and actions to reduce emissions in the building sector. It highlights international cooperation, ambitious goal-setting, and innovative practices to transform the industry towards sustainability and enhanced building performance.

Key Themes and Insights

Overview of the Building Breakthrough:

• A collective initiative that brings together countries, organizations, and stakeholders to commit to delivering near-zero-emission buildings. The initiative aims to enhance buildings’ performance while ensuring their resilience to climate change.

Global Participation:

• As of February 2024, 28 countries, including major economies like the USA, China, and several European nations, have pledged their commitment to the Buildings Breakthrough. This growing coalition reflects a shared recognition of the urgent need for action in the building sector.

Objectives and Goals:

• The primary goal of the Buildings Breakthrough is to accelerate the development and implementation of actions that lead to the construction and renovation of buildings that meet near-zero emissions standards. This includes improving energy efficiency, utilizing low-carbon materials, and integrating renewable energy solutions.

Key Actions and Strategies:

• Establishing procurement commitments for net-zero buildings.
• Joining low-carbon material alliances to promote sustainable building practices.
• Deploying clean and efficient heating and cooling technologies.
• Increasing funding for net-zero carbon building construction and renovations.

Collaboration and Knowledge Sharing:

• Emphasizes the importance of collaboration among countries and stakeholders to harmonize definitions, performance metrics, and certification schemes for near-zero emission buildings. This includes creating knowledge-sharing platforms and best practices to enhance the initiative’s effectiveness.

Addressing Knowledge Gaps:

• Seeks to identify and address knowledge gaps in the sector, aligning research priorities with policy goals. This involves enhancing communication of research findings and promoting awareness of successful strategies and technologies.

Monitoring Progress:

• An annual assessment of global progress in the building sector will be conducted, closely aligned with the Global Status Report for Buildings and Construction. This assessment will help track advancements and identify areas needing further attention.

Chapter 12: Key recommendations for policymakers and decisionmakers

Outlines key strategies for policymakers and industry leaders to address climate change in buildings and construction. It synthesizes insights from previous sections, highlighting policy’s role in promoting sustainability and reducing emissions. Provides clear recommendations for transitioning to a sustainable, decarbonized sector, focusing on roadmaps, energy codes, investment, collaboration, and evaluation to guide climate-aligned decision-making in construction.

Key Recommendations

Develop and Implement Climate Action Roadmaps:

• Policymakers are urged to prioritize the creation of detailed climate action roadmaps that outline short-, medium–, and long-term strategies for decarbonizing the buildings and construction sector. These roadmaps should be tailored to national and sub-national contexts.

Strengthen Building Energy Codes:

• Recommends enhancing building energy codes to ensure that new and existing buildings meet stringent energy performance standards aligned with net-zero targets. This includes regular updates to codes based on technological advancements and best practices.

Increase Investment in Sustainable Practices:

• Emphasizes increased investment in energy efficiency and sustainable construction practices. Policymakers should create clear market signals and incentives to attract private investment and drive innovation in the sector.

Promote Circular Economy Principles:

• Advocates for adopting circular economy principles in building design and construction, reducing waste, reusing materials, and utilizing sustainable resources to minimize embodied carbon.

Encourage Retrofitting of Existing Buildings:

• Policymakers are encouraged to promote extensive retrofitting of existing buildings to improve energy efficiency and reduce emissions. This includes providing incentives for retrofitting initiatives that achieve significant energy savings.

Foster Collaboration and Stakeholder Engagement:

• Highlights the importance of collaboration among various stakeholders, including government agencies, private sector actors, and civil society. Engaging stakeholders in decision-making is crucial for developing effective policies and strategies.

Invest in Research and Development:

• Calls for increased investment in research and development to drive innovation in sustainable building technologies and practices. This includes exploring new materials, construction methods, and energy systems.

Monitor and Evaluate Progress:

• Establishing robust monitoring and evaluation frameworks is essential for tracking the effectiveness of implemented policies and strategies. Policymakers should regularly assess progress toward climate goals and make necessary adjustments.