Addressing climate change requires decisive action from the buildings sector, which is responsible for nearly 40% of global energy-related CO2 emissions. With continued urbanisation and a projected 15% increase in global floor area by 2030, building-related emissions are set to rise unless ambitious policy actions are implemented to support investment in sustainable buildings.
Governments around the world are actively seeking ways to decarbonise buildings. However, the pace and ambition of actions need to be accelerated and strengthened. The OECD Programme on Decarbonising Buildings in Cities and Regions seeks to help governments in those endeavours. Launched in 2021, it has been collecting data and best practices to decarbonise buildings on both national and local levels, advising specific countries and cities through deep-dive studies, and sharing the latest knowledge on innovative initiatives via its annual Sustainable Buildings Roundtable.
At the request of the French Ministry of Ecological Transition and Territorial Cohesion, the OECD ran a Global Survey on Buildings and Climate (2024) across 28 countries in Africa, America, Asia, and Europe to gather information on strategies and policies on decarbonising buildings being developed and implemented across the globe. This new report provides insights from that survey.
While the report stresses the need for urgent action, it also advocates caution in adopting sudden overhauls in policy approaches. France’s new environmental and energy regulations (Réglementation environnementale 2020, RE2020), which entail a gradual process of extensive data collection, stakeholder involvement and pilot projects, provide a good example of the incremental approach set out in this report. The step-by-step approach has allowed for a period of trial and error, enabling practical adjustments before the regulations were extended nationwide in 2022.
The report also sheds light on multi-level partnerships, as exemplified by the Netherlands’ Natural Gas Free Neighbourhood Programme (PAW). While the national government oversees the energy transition, each municipality faces different challenges in decarbonising buildings due to variations in, for example, available heating sources, workforce, building energy efficiency and energy poverty levels. Moreover, each neighbourhood has unique geographic and social characteristics, which also require tailored solutions. To address this heterogeneity of local needs, the Netherlands has established the PAW to co‑ordinate efforts across all levels of government. Under the PAW scheme, the national government has provided EUR 4-5 million to each selected neighbourhood. With this fund, the municipality of Rotterdam has opted for district heating solutions for its neighbourhoods, taking advantage of its proximity to its port. In contrast, the municipality of Leusden, which lacks access to district heating, has focused on improving building insulation combined with heat pump installations.
Cities can take the lead in providing exemplary models for national governments. For example, in addition to the national government’s overarching ambition to decarbonise buildings, the city of Tokyo introduced a buildings cap-and-trade programme in 2010 — one of the first of its kind globally. This programme has set mandatory emissions targets for Tokyo’s largest emitters, such as commercial buildings and industrial facilities, which together accounted for nearly 40% of the metropolitan area’s total emissions in 2017. By addressing the specific needs of its urban landscape, Tokyo has created a framework aligning national and local efforts to tackle the complexities of the energy transition.
Finally, this report highlights the importance of international collaboration on decarbonising buildings, including through technical assistance and technology transfers, echoing the 2024 Chaillot Declaration, a landmark commitment of over 70 countries adopted at the first Ministerial Meeting of the Global Forum on Buildings and Climate. By expanding the evidence base on sustainable, low-carbon and resilient building initiatives, this report aims to further advance on the Chaillot Declaration goals.
Moving forward, the OECD Programme on Decarbonising Buildings in Cities and Regions will continue to support policymakers in OECD and partner countries as they strive to decarbonise buildings and create a more sustainable urban future, notably through greater emphasis on whole life carbon approaches. The programme will also investigate sustainable real estate investment, including the impact that stranded assets may have on global property values if no action is taken to address physical and transition risks associated with climate change.