• Sectorial CO2 emissions trends have been fairly stable since 2018.

• Efficiency gains in buildings are improving energy use, but rising ownership of appliances and extreme weather increasingly offset these benefits.

• Emissions intensity of steel and cement is largely the same as 2020, while global construction activity has slowed in recent years.

• Investment in building energy efficiency has risen over the past decade, but growth is now stalling, while spending on electrification grows steadily.

• High-efficiency building envelopes often entail higher upfront costs, constraining uptake in markets without dedicated financial support mechanisms.

• Strengthening the business case requires better recognition of high efficiency buildings’ broader societal value, including enhanced resilience, health benefits, and long-term affordability.

• Energy intensity has decreased about 8% since 2015, driven by policy development globally.

• However, total floor area is set to continue increasing, especially in developing economies, where 80% of growth to 2050 is expected. Many of these economies lack robust building and energy codes.

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

• Building codes, standards and certifications shape how buildings are designed, constructed, operated and renovated, providing an opportunity to embed energy and material efficiency, circularity, low-emissions and climate resilience practices across the building life cycle for decades. They can serve to improve design, construction and management quality across the sector, if they are supported by compliance and enforcement mechanisms.

• As such, codes, standards and other types of regulations support the deployment of compliant equipment and materials at scale.

• Building codes aligned with the definitions and principles for near-zero emissions and resilient buildings (NZERBs) improve international comparability, helping guide investment, drive demand and facilitate global knowledge-sharing.

• As global built floor area is expected to grow by about 45% by 2050 – particularly in emerging markets and developing economies (EMDEs) with increasing demand for cooling – codes, standards and certifications for NZERBs will be increasingly important for ensuring efficient and resilient constructions and technologies.

Quantitative indicators for success

• Number of countries supporting internationally endorsed definitions and principles of NZERBs.

• Number of countries with building codes and other policies aligned with the definition and principles of NZERBs.

• Percentage share of projected new floor space to 2050 covered by building codes and standards aligned with the definition and principles of NZERBs.

Qualitative examples of collaboration

• The Intergovernmental Council for Buildings and Climate, with over 60 member and observer countries as of July 2025, offers a high-level platform to guide global action in the sector.

• Common definitions and principles are emerging. Led by the World Green Building Council (WorldGBC), together with multiple other organisations, a public consultation on draft definitions and principles of NZERBs closed in June 2025 and the outcome is due for publication at COP 30.

• The World Bank and Global Facility for Disaster Reduction and Recovery jointly launched a Global Assessment of Building Codes to track development. The Global Indicators Group developed a global dataset on building code effectiveness and compliance.

• The International Code Council (ICC) runs the Building Capacity for Sustainable and Resilient Buildings campaign to support development of a robust building regulatory ecosystem, with a focus on the establishment and compliance of building codes.

• The OECD Decarbonising Buildings in Cities and Regions programme supports governments at all levels to accelerate decarbonisation and resilient measures in the building sector, across themes including efficiency, whole-life-carbon emissions, digitalisation and finance.

• The WorldGBC developed a Nationally Determined Contributions (NDCs) Scorecard for Sustainable Buildings, a digital tool co-created with national Green Building Councils (GBCs), governments, and more than 800 stakeholders to help policy makers assess and strengthen national policies and codes in support of NDCs.

• IEA Technology Collaboration Programmes (TCPs) are deepening work on research priorities for building design and technologies. In particular, the IEA Energy in Buildings and Communities (EBC) TCP’s Working Group on Building Energy Codes brings together 12 countries as well as The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the ICC to foster stronger collaboration in addressing critical issues in the development and application of Codes.

• The Living Art of Building initiative is collaborating with the United Nations University Institute for Integrated Management of Material Fluxes and of Resources to expand R&D on building materials. R&D can inform updates to building codes by providing scientific evidence and technical standards, including data on the performance, safety and application of new construction materials, techniques and enabling technologies.

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

• Public procurement represents a significant share of the construction market; this buying power can be directed to support the deployment of new technologies and practices, reducing risks, and building capacity in the industry for the wider market. It can also provide a long-term signal to private investors by creating a testbed for near-zero and low-emissions products.

• Aggregated demand can create economies of scale that drive down upfront cost premiums for NZERBs (both new-builds and retrofits) and the construction practices, materials, appliances and equipment they require.

• Growth in demand can support wider public acceptance and the normalisation of higher standards across the value chain. More broadly, public spending can support local employment and reskilling and upskilling, and create incentives for local manufacturing and construction companies.

Quantitative indicator for success

• Number of countries implementing performance-based public procurement for buildings aligned with the definition and principles of NZERBs.

Qualitative examples of collaboration

• The One Planet Network launched its Global Framework for Action on Sustainable and Circular Public Procurement at COP 29, to drive demand for “Near-Zero and Resilient Buildings”.

• The over 140 signatories of the WorldGBC’s Net Zero Carbon Buildings Commitment are supporting procurement-based supply chain levers. C40 leads the commitment at the subnational level, with Net Zero Carbon Building and Clean Construction Accelerators.

• The Solar Impulse Foundation has developed a Catalogue of Solutions for deployment to be published at COP 30, which can serve as a reference for public procurement. This was developed through a multi-stakeholder process, following a blueprint launched at COP 29.

• The Market Transformation Action Agenda, led by the World Business Council for Sustainable Development identifies collective actions on decarbonisation along the built environment value chain, building on GlobalABC's Market Transformation Levers.

• The Industrial Deep Decarbonisation Initiative developed Green Public Procurement guidelines, which cover key implementation steps, with a focus on steel and cement.

• Built by Nature supports cross-border collaboration on timber and market transformation via demand-side coalitions. It launched the Principles for Responsible Timber Construction, in partnership with Bauhaus Earth, and the Climate Advisers with the Forests and Climate Leaders Partnership Greening Construction with Sustainable Wood Initiative.

• SteelZero and ConcreteZero are international collaborative initiatives that leverage procurement commitments from major buyers to drive demand for low-emissions steel and cement.

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

• Upgrading buildings to be NZERBs will require significant investments globally, including for the renovation of existing buildings. Governments alone cannot fund the shift; an increase in private capital is also needed.

• As the need for housing increases globally, public funding or regulation to direct private investment is important to ensure that affordable housing meets NZERBs principles, especially for the most vulnerable populations.

• Public funding and blended finance can help de-risk and crowd in private capital, and make the cost of risk mitigation more transparent.

• Improved access to a diversified pool of private capital instruments (private equity, venture capital, green debt) could further support companies working on developing NZERBs. For investors, this could present a balanced risk-return profile and the potential for long-term economic value in emerging markets and technologies.

• As investments in NZERBs rise, cost premiums associated with specific characteristics of NZERBs can also be brought down through economies of scale and learning-by-doing.

Quantitative indicator for success

• Annual investment in energy efficiency, electrification and renewables in the buildings sector (USD 380 billion in 2024).

Qualitative examples of collaboration

• The Partnership for Energy Efficiency in Buildings launched support for carbon-market projects in in the buildings sector under Article 6 of the Paris Agreement. It is providing countries with training and support to develop proposals, starting with Morocco.

• The Market Accelerator for Green Construction, an assistance programme, was launched by the United Kingdom in partnership with the International Finance Corporation.

• The Green Climate Fund (GCF) provides financing to developing countries for adaptation and resilience, including resilient building design and retrofits.

• The Cities Climate Finance Leadership Alliance launched the Net Zero Carbon Buildings Instrument Database, which includes financial tools.

• The Climate Bonds Initiative (CBI) taxonomy was developed through multi-stakeholder engagement that supports comparability in the sustainable finance market. This is a global guidebook specifying what qualifies as a green investment, including in buildings. A Buildings Criteria 2.1 was released to expand the framework to include both new and existing buildings and incorporate whole-life carbon metrics.

• The Green Home Finance Principles were published by the Green Finance Institute, focusing on green mortgages and retrofit funding.

• The Finance Hub of the GlobalABC provides a discussion platform and presents solutions for mitigation and climate adaptation for the sector, as well as mapping existing efforts.

• In 2025, GREEN – a network of institutional investors in real estate – partnered with Leaders of the Urban Future to launch works to streamline environmental, social and governance data practices, improve access to reliable energy and carbon performance metrics, and address systemic barriers preventing the real estate sector from accurately pricing climate risk and accelerating decarbonisation.

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

• It is estimated that in advanced economies, 80% of the 2050 building stock has already been built. This creates a big opportunity for retrofitting rather than building new floor area.

• Retrofitting can also improve comfort, health and living conditions, beyond expanding potential to integrate adaptation and resilience into the existing stock.

• Retrofitting can support the local economy by driving demand for skilled labour across construction, engineering and design sectors.

• The oldest building stock is mostly located in cold climates that require space heating. This currently represents half of building energy use, two-thirds of which is currently supplied by fossil fuels. Retrofits are critical to support clean heating.

Quantitative indicator for success

• Annual retrofit rates in advanced economies and share of deep retrofits.

Qualitative examples of collaboration

• Within the Energy Efficiency Hub activities, the Energy Efficiency in Buildings task force published an article on Energy Efficiency Financing for Buildings, informed by several workshops organised over 2024, with a focus on financing instruments for retrofits.

• The UN Development Programme, with GCF support, is running a “De-risking and Scaling-up Investment in Energy Efficient Building Retrofits” project in Armenia, combining international donor financing with national implementation (2017–2026).

• GBCs in the European Union have supported member states to develop stakeholder-led Long Term National Renovation Strategies. Under the revised Energy Performance of Buildings Directive, these strategies will now need to be updated into National Building Renovation Plans that have a clear pathway to achieve a fully decarbonised building stock by 2050.