PARIS, France / RankWire.AI / – Buildings worldwide could become substantially more energy efficient over the next decade, lowering bills, strengthening energy security and cutting emissions, according to a new International Energy Agency special report. The report examines a proposed global target to improve the energy intensity of buildings by at least 25% by 2035. Türkiye and Australia requested the study under the strategic partnership between the COP31 Presidency and the IEA. It finds the target achievable with existing tools, but only by more than doubling current rates of improvement.
IEA Executive Director Fatih Birol said more efficient buildings can cut emissions worldwide while making a tangible difference to daily life. Birol said faster progress would lower energy bills and help more people access secure, affordable energy. The report shows governments already have the technologies and policy tools needed, Birol added. The priority now is to put them to work. COP31 takes place in Antalya, Türkiye, from November 9 to 20, with Australia serving as President of Negotiations.
Energy used in buildings accounts for around 30% of total final consumption and half of all electricity use. The sector also produces 2.8 gigatonnes of direct CO2 emissions. The IEA pathway is consistent with the COP28 goal of doubling the global rate of energy efficiency improvement by 2030. It also aligns with a proposed COP31 goal to raise electricity’s share of final energy consumption to 35% by 2035. Global electricity demand is already rising quickly.
Four measures drive the efficiency gains
The report identifies four main areas for faster progress: better building envelopes, electrification, more efficient equipment and wider access to clean cooking. Together, these measures could cut buildings’ energy intensity by more than 25% by 2035, despite growing demand for energy services. They could also reduce the sector’s direct CO2 emissions by nearly 40%. The contribution of each measure would vary by country. Climate, building stock, technology use and access to clean cooking all shape the mix.
More efficient equipment makes the largest contribution globally, accounting for 40% of the intensity improvement. Expanded access to clean cooking, replacing inefficient traditional biomass, delivers another 25%. Better building envelopes contribute 20%, while electrification adds up to 15%. Population growth and rising incomes will continue to lift demand for heating, cooling and appliances. Efficiency gains would help countries meet that demand at a lower cost.
Proven policy tools need faster rollout
Governments already have proven policy tools, but faster progress depends on combining them effectively. These include stronger and better-enforced building energy codes and faster renovation of existing buildings. Wider minimum energy performance standards and energy labels would also help. Measures to improve the economics of heat pumps and expand clean cooking can reinforce those gains. Australia has already expanded NatHERS energy ratings to cover existing homes.
The right policy mix will depend on national circumstances and starting points. Given the long lifetime of buildings, decisions made now will shape energy use for decades. Faster efficiency improvements would help countries meet rising electricity demand at lower cost. They would also strengthen energy security. The report says such gains would put the global buildings sector on a path towards significantly lower emissions.