Paris’ fine Haussmann buildings provided a fitting backdrop for last week’s first Global Forum on Buildings and Climate. Our buildings account for 40% of global energy-related greenhouse gas emissions, and older buildings are the main culprit. In the EU, buildings built before 1945 leak 5 times more energy than modern ones, undermining our climate ambitions as well as household finances.
Patchy policymaking
Endeavours to tackle this issue have been erratic to date. A new OECD Global survey shows that while a majority of countries have made a commitment to decarbonising the building sector, efforts to date have been more focussed on raising the standards of new buildings, with only 39% of countries concentrating on retrofitting the existing stock – which of course make up the majority of buildings.
There are gaps too within regulations for new buildings. 89% of responding countries have a mandatory energy code for the efficiency of new buildings, most fail to tackle the emissions involved in constructing them. This is a vital oversight given a significant portion of a building’s carbon footprint arises before occupants even set foot inside. Construction, an energy-intensive process, contributes 5% to 10% of energy consumption in developed countries and up to 30% in developing countries, and represents a fifth of the lifetime emissions of a building.
Strengthening subnational action
Subnational governments can help fill those gaps. They have huge influence in shaping regulations and tailoring solutions. A previous OECD survey on Decarbonising Buildings in Cities and Regions found that 88% of the cities and regions surveyed support higher energy efficiency standards in building energy codes than their national counterparts, and an impressive 25% were already calling for net-zero emissions.
Cities also have the power to adopt stricter building codes and regulations that promote sustainable construction practices. Last year, Helsinki’s initiative mandated a carbon footprint limit of 16.0 kgCO2e/m2/year over 50 years for new multi-story apartment houses, exemplifies this approach. Local and regional authorities, which often own a significant share of public buildings (around 20% of non-residential buildings in France), can also lead by example by improving energy efficiency in public buildings. Tokyo has chosen to enforce rules that require landlords to reduce emissions from buildings to below certain thresholds.
Embracing collaboration
While the vast majority (86%) of cities and regions surveyed by the OECD have their own plans or strategies, implementation remains a challenge. 74% of responding cities and regions highlight the need for further support from national governments to scale up initiatives and boost public awareness. Ministerial silos, institutional fragmentation, and inadequate monitoring and evaluation frameworks hinder the translation of strategies into actionable policies and results-oriented investments.
Addressing these challenges requires the development of common policy tools and frameworks across cities and regions, with national governments establishing the necessary regulatory frameworks, strengthening incentives, and facilitating access to finance as well as data and information to raise awareness and promote collaboration.
Near-zero emission and resilient buildings will be the new normal by 2030
To build momentum, at COP 28 in December 2023 France and Morocco jointly launched the Buildings Breakthrough, which aims to achieve zero emissions in the buildings sector by 2030. This initiative brings countries and organisations together to advocate this narrative and align policies to this goal focusses on helping countries to establish near-zero greenhouse gas emissions buildings as the standard for new construction and major renovations by 2030 by setting collective priority actions in standards and certification, financing, investment, research and innovation, and diversification of industry approaches. 70 countries signed the Declaration de Chaillot, which was unveiled at the Buildings and Climate Global Forum. This means that these countries have committed to implement roadmaps, regulations and mandatory building and energy codes to move towards carbon-neutral buildings.
Paving the way for environmental responsibility
As we confront the complex challenges of climate change, the time is ripe for action on the decarbonisation of buildings. Working across borders, we can raise standards, change behaviours and break down barriers – and make the places where we live and work a shining example of our climate ambitions.
To find out more about the findings from the OECD Survey on Buildings and Climate, visit: Decarbonising Buildings in Cities and Regions – OECD
Sunniva Giske, an intern at the Director’s Office of the Centre for Entrepreneurship, SMEs, Regions and Cities (CFE), holds a bachelor’s degree in Economics and Business Administration from the Norwegian School of Economics. This fall she will continue her studies as a part of the CEMS Double Degree master’s program at the Norwegian School of Economics, majoring in Strategy and International Management. Prior to her current role, Sunniva worked in an AI startup in Silicon Valley while participating in a graduate program in Entrepreneurship at UC Berkeley.
Ji-Soo Yoon is a Policy Analyst at the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) where she actively contributes to the work of Decarbonising Buildings in Cities and Regions. Her role involves proving support to national and subnational policy makers in decarbonising building policies including energy efficiency in buildings, life-cycle approach (LCA) to embodied carbon, and the integration of digital technologies, all aimed at harnessing the building sector's potential to combat climate change through mitigation and adaptation measures.
Before joining the OECD, she worked in the energy division at the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) where she conducted research on blockchain technology application for clean energy transition, mainly on P2P renewable energy trading. She holds a Master’s degree in International Affairs from the Geneva Graduate Institute (Institut de Hautes Études Internationales et du Developpement, IHEID) in Switzerland and a Bachelor’s degree in International Studies from Ewha Womans’ University in Korea.
Takeshi Miyamori leads OECD’s work on Decarbonising Buildings in Cities and Regions. Before joining the OECD in 2022, Takeshi has worked for the Ministry of Land, Infrastructure, Transport and Tourism of Japan for more than 15 years developing polices on housing, buildings and urban planning as well as three years for the Prime Minister’s office. He holds two master’s degrees in urban engineering (University of Tokyo) and public economics (National Graduate Institute for Policy Studies).