How can we rapidly transform the global building sector to combat climate change? This report, based on the OECD Global Survey on Buildings and Climate, presents a comprehensive analysis of the endeavours undertaken by 28 countries across continents to decarbonise and bolster the resilience of their buildings. By examining policy objectives, measures, and trends, the report offers valuable insights into how countries are developing effective strategies for decarbonising buildings. These strategies often involve a step-by-step approach, for example, beginning with targeted measures in buildings that are more feasible or have a greater impact. Successful measures are then scaled up to achieve broader decarbonisation goals. Furthermore, the report emphasises the importance of a multi-level approach, including breaking down silos between government departments. With 93% of responding countries reporting that at least three ministries are involved in decarbonising building measures. The report also underscores the importance of international cooperation and knowledge sharing to fast-forward progress towards a more sustainable built environment.
Global Monitoring of Policies for Decarbonising Buildings
Abstract
Executive summary
At the source of nearly 70% of global energy-related CO2 emissions in large cities like New York, Paris and Tokyo, buildings have a critical role to play in efforts to reduce greenhouse gas (GHG) emissions. With urban populations projected to increase by 2.5 billion by 2050, the demand for new buildings is poised to surge, primarily in urban areas. If sustainable solutions are not implemented, this growth could significantly exacerbate climate change.
Buildings are inherently local infrastructure that reflect different climate zones, historical contexts, and social conditions. While many national governments recognise the importance of tailoring decarbonisation approaches to local needs, they often struggle to effectively address the diverse nature of building-related challenges across cities and regions. Countries can gain valuable insights by examining how their peers are addressing these challenges. Similarly, subnational policy makers can draw on international best practices to guide their own policies. In this context, this report underlines lessons from a variety of strategies to decarbonise buildings, drawing on a first ever Global Survey on Buildings and Climate carried out across 28 countries.
Although more than 140 countries have announced or are considering net‑zero targets, many still lack concrete quantitative targets and monitoring mechanisms for decarbonising buildings at the local level. Only half (54%) of countries that responded to the OECD Global Survey on Buildings and Climate have incorporated building-related actions into their Nationally Determined Contributions (NDCs), and around half (46%) have set up specific plans for phasing out fossil fuels in heating and cooling systems. In addition, 54% of responding countries do not have monitoring frameworks to track progress on decarbonisation efforts at the local level.
Countries currently focus on energy-related measures, while whole-life carbon receives comparatively less attention. A majority of responding countries have implemented mandatory energy-efficiency codes (89%), alongside financial incentives (86%) such as subsidies and low-interest loans. Moreover, building codes tend to focus primarily on insulation (79% in responding countries) but with only 7% focused on whole-life carbon (7%).
However, future decarbonisation priorities will gravitate towards whole-life carbon and circularity, passive design for cooling and retrofitting existing buildings. Looking ahead, responding countries anticipated a significant shift towards whole-life carbon policies. Embodied carbon will increase from 14% (of responding countries) in current priorities to 43% in future priorities, and the circularity of materials from 11% to 68%. Moreover, rising temperatures and urban heat island effects are causing countries to prioritise cooling over heating, with an emphasis on passive cooling designs. Meanwhile, 76% of countries plan to prioritise retrofitting existing buildings over constructing new ones, a significant increase from the current 39%.
Countries are employing a range of strategies to adapt to climate change in the buildings sector. Addressing climate change requires both reducing carbon emissions from buildings and enhancing their climate resilience. The survey highlights that 25% of responding countries have regulations for extreme heat, and 21% for floods and storms. Financial incentives are also in place, with 29% of countries providing support for measures against extreme heat, and 18% for flood and storm protection. Furthermore, 75% of responding countries offer publicly accessible geographic databases with information on climate risks.
For new buildings, some countries have begun to adopt near-zero standards as the new norm, incorporating measures on whole life carbon emissions. This shift requires the implementation of stringent new standards that focus on energy efficiency, cleaner heating technologies, and sustainable building practices. Countries like France, the Netherlands, Norway and Sweden have started to implement new requirements that address whole life carbon in new buildings. Policies addressing whole-life carbon ambitions complement existing energy standards by introducing separate requirements for operational carbon and embodied carbon. Typically, these policies begin with the development of assessment methodologies and the creation of a national database (e.g. the French national reference database called INIES, which provides extensive environmental and health data on construction products and equipment). This paves the way for the implementation of regulations such as mandatory declarations and limit values (e.g. kg CO2 equivalent per m2). However, 60% of responding countries have reported that a key challenge for new buildings is to make decarbonisation measures affordable.
For existing buildings, energy labeling and minimum energy performance standards are gaining traction but remain at an early stage of adoption. The Energy Performance Certificate (EPC) is the most common form of energy labeling, adopted by 64% of respondents, followed by broader certifications such as Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM) at 36%, as well as labels indicating annual energy consumption at 29%. However, only 18% of responding countries currently include whole life carbon emissions in their labeling systems. To date, only a few countries like France, the Netherlands, and England and Wales in the United Kingdom, have implemented Minimum Energy Performance Standards (MEPS). Moreover, the survey found that the main challenge for existing buildings lies in standardising methodologies, reducing the economic burden on building owners and resolving conflicts of interest.
Countries are adopting a step-by-step approach to decarbonise buildings, starting with preparatory measures through pilot projects and stakeholder engagement, and targeting specific types of buildings such as public/private or residential/non-residential. For example, France’s RE2020 policy, which includes regulations for energy and whole life carbon emissions in new buildings, has been the result of a process to refine methodologies gradually. It was developed through a series of preparatory actions, notably with the E+C- (Energy plus and Carbon minus) initiative to test its methodology with relevant stakeholders. Similarly, Japan's approach has targeted specific building types. Aiming for net‑zero energy for all buildings by 2050, Japan began with mandatory energy efficiency standards for large non-residential buildings in 2017 and plans to extend these standards to small non-residential and all residential buildings by 2025. In addition, countries such as Brazil, Lithuania and Singapore have started implementing more stringent measures on public buildings to showcase the effectiveness of decarbonisation policies and technologies before scaling them up. This incremental approach seeks to ensure continuous improvement, tailored solutions, and gradual expansion based on feasibility and impact, leading to effective progress toward decarbonisation goals.
Furthermore, local governments are implementing ambitious measures at a smaller scale, in cities or neighbourhoods. Successful initiatives can then be scaled up for broader impact. For instance, Helsinki’s proactive enforcement of carbon footprint limits in construction, which uses emissions calculation methods developed by the national government, began two years ahead of nation‑wide adoption. This early implementation has served as a practical trial-and-error opportunity for the national government to learn from city-level experiences before wider rollout. The Netherlands also chose to start from a neighbourhood scale to test technically and economically feasible measures before wider implementation.
Countries are strengthening their multi-level approach to better co‑ordinate decarbonisation policies. With 93% of responding countries involving at least three ministries in strategies to decarbonise buildings, countries are shaping horizontal co‑ordination strategies. Over half (57%) of countries are also addressing energy poverty and inequalities via building decarbonisation strategies. Support for local governments is strong, with 82% of countries providing local actors with toolkits, co‑ordinating regional networks, and developing online platforms. Moreover, there are efforts to leverage public-private partnerships, with 54% of countries establishing funding programmes for SMEs, although further support is needed.
Develop tailored step-by-step roadmaps: As opposed to a sudden overhaul (or inaction), a step-by-step approach aims to achieve incremental long-term transformations by breaking down seemingly overwhelming challenges into a sequence of realistically manageable steps, whilst also providing flexibility to respond and adapt to new developments. Regulatory measures should be introduced progressively, allowing each phase to build momentum, refine strategies and expand efforts. Clear and ambitious goals with measurable targets should guide the process, starting with low-hanging fruit such as targeting a specific building type. A long-term roadmap with milestones and timelines, supported by robust monitoring mechanisms, can help track progress and ensure adaptability. Additionally, this approach fosters more effective stakeholder engagement, as stakeholders have an opportunity to witness tangible results and see their input reflected in decisions throughout the process.
Enhance multi-level co‑ordination: Fostering co‑ordinated efforts across various levels of government and sectors can help enhance building-decarbonisation efforts by bridging ministry siloes and leveraging cities as testbeds for scalable national policies. Building strong partnerships with private entities, particularly through public-private partnerships (PPPs) with small and medium enterprises (SMEs), is equally important in accelerating this transition. Given that SMEs accounted for over 99% of all enterprises and 80% of turnover in the European Union’s construction industry in 2017, they play a substantial role in shaping the built environment. However, SMEs have more limited capacities than larger companies to adapt to new regulatory environments and standards, which means that targeted support or enabling mechanisms will be essential for ensuring a just, bottom-up transition in the buildings sector. Moreover, facilitating green investment in the real estate sector can unlock much needed capital and expertise. To this end, national governments could actively organise regular policy dialogues between governments and investors.
Strengthen international collaboration: Governments can accelerate their climate and energy policies by engaging more deeply in international dialogues to learn from best practices and find common solutions to shared global challenges. For example, by participating in the Intergovernmental Council for Buildings and Climate (ICBC) – one of the outcomes of the Chaillot Declaration from the Global Forum on Buildings and Climate in 2024, endorsed by 70 countries – countries can strengthen international co‑operation in promoting decarbonisation and climate resilience in the building sector.
