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.
