The buildings sector – which includes energy used for constructing, heating, cooling and lighting homes and businesses, as well as the appliances and equipment installed in them – accounts for around 37 per cent of energy and process-related CO2 emissions and more than 34 per cent of energy demand globally.
According to the Intergovernmental Panel on Climate Change (IPCC), efficiency policies in buildings and constructions can reduce greenhouse gas (GHG) emissions by up to 90 per cent in developed countries and up to 80 per cent in developing countries and help lift up to 2.8 billion people in developing countries out of energy poverty. Yet, with half of the buildings still needing to be built by 2050, the sector is still not on track to achieve its full mitigation potential.
Because of the long lifetime of structures, heating and cooling systems, and other building appliances, design and purchasing decisions made today will shape energy use for many years to come. The climate impact of buildings is likely to increase in the coming decades. Buildings of the future will need to be decarbonized along their lifecycle and be increasingly resilient to natural disasters.
Building decarbonization and resilience represent a great economic and well-being opportunity. The built environment accounts for about 7 per cent of global employment and 11-13 per cent of global GDP. For every US$ 1 million invested in retrofits and efficiency measures in new construction, an estimated 9 to 30 jobs are created. In addition, efficient buildings are one of the biggest investment opportunities across emerging market cities, as they will be worth an estimated US$24.7 trillion by 2030.
To decrease emissions in the building sector, four major shifts are necessary: excess floor area must be minimized; energy intensity must be reduced; the emissions intensity of energy use must decline; and embodied carbon emissions from construction must be reduced. Actions are required at every level: national and subnational governments, international collaboration, businesses, investors, private and development banks, and citizens private sector and the public.
