Moving the needle on building energy codes: From analysis to action

As climate negotiations at COP29 in Azerbaijan draw to a close, the building sector stands at a critical juncture. Buildings account for 34% of global CO2 emissions, making them a central battleground in our fight against climate change. The challenge is particularly urgent in rapidly urbanizing regions, where unprecedented construction activity risks locking in decades of excessive energy consumption.

This blog explores the urgent need for building energy codes (BECs), highlights global disparities, and provides a staged approach for policymakers to implement effective BECs.
 

The Urgency in the Buildings Sector

The scale of this challenge is staggering. In 2023 alone, 2.55 billion square meters of floor space was constructed without any mandatory energy efficiency requirements - equivalent to building a new Paris every week. With urban populations expected to increase by 2.5 billion by 2050, the decisions we make today about building energy efficiency will have ramifications for generations.
 

Global Disparities in Building Energy Codes (BECs)

The World Bank's Building Green dataset, providing comprehensive analysis of building energy codes spanning 88 countries, reveals both progress and concerning disparities. While 71 countries have adopted mandatory codes in at least one major city, only 52 consistently enforce these regulations. This enforcement gap results in actual energy savings achieving only 30-40% of their potential impact.

Regional disparities paint a concerning picture for future development. While Europe shows near-universal adoption with 95% coverage of comprehensive codes, only 25% of rapidly urbanizing regions in Africa and South Asia have similar regulations. This disparity becomes critical when considering that these regions will account for 68% of new construction by 2040.
 

The Need for Comprehensive Regulations

The analysis also reveals a critical gap in existing building requirements. While 71 countries have requirements for new construction, only 16 have comprehensive regulations for building retrofits. This oversight is particularly concerning given that 80% of 2050's building stock in developed regions already exists today.
 

Moving the Needle: A Staged Approach for Policymakers

The path to successful building energy codes varies depending on a country's starting point and existing regulatory framework.

1. Starting from Scratch: Building Strong Foundations—For countries without existing codes, the priority should be establishing foundational elements that can support long-term success. This means starting with larger buildings where enforcement is more manageable and impact more immediate. Technical capacity building should precede enforcement, with a focus on training building officials, creating clear compliance guidelines, and developing basic technical resources. These countries should also implement simple financial incentives to encourage early adopters while demonstrating the feasibility of energy-efficient construction. Rwanda, standing out as the only low-income country with comprehensive building energy codes, shows that this measured approach can achieve significant results within three years while building crucial market understanding.
2. Strengthening Partial Requirements: Expanding Impact—Countries with partial requirements should focus on systematic enhancement of their existing frameworks. This means expanding coverage across all building types while strengthening enforcement mechanisms. Our analysis shows that countries investing in enforcement capacity through training programs and digital tools achieve significantly better outcomes. These countries benefit from implementing digital compliance tools, developing comprehensive financial incentives, and building technical expertise networks. The evidence demonstrates that strong enforcement mechanisms, combined with robust market support, are crucial for successful implementation and higher compliance rates.
3. Advanced Implementation: Leading the Way Forward—For countries with unified codes, the challenge lies in pushing boundaries and preparing for future demands. These nations should focus on implementing post-occupancy verification systems, transitioning to outcome-based requirements, and developing comprehensive retrofit strategies for existing buildings. They must also lead the way in integrating climate adaptation measures and planning for emerging technologies. Their experience shows that regular code reviews and updates, coupled with sophisticated market support mechanisms, can drive continuous improvement in building energy performance.
    

The Path Forward

The economic opportunity is compelling—according to IEA estimates, energy-efficient buildings could generate energy cost savings of over $1 trillion by 2050. However, realizing these benefits requires immediate action calibrated to each country's current position in their building energy code journey.
 

Universal Success Factors

Across all stages, success requires more than just technical requirements. Countries achieving the highest compliance rates consistently provide both technical and financial support to market participants. Our analysis shows that 76% of countries with effective codes maintain robust technical resource programs, while successful implementations typically combine multiple incentive types—grants, tax credits, loans, and rebates—tailored to different market segments.
 

Conclusion

The message is clear: while countries may be at different stages in their building energy code journey, the imperative for action is universal. As urbanization continues at unprecedented rates and climate impacts intensify, building energy codes represent one of our most powerful tools for achieving both climate goals and sustainable development.

The decisions we make today about building energy efficiency will shape emissions trajectories for decades to come. For policymakers racing to meet their climate commitments, strengthening building energy codes is not just an environmental imperative—it is an economic opportunity that can deliver tangible benefits while driving us toward a more sustainable future. By taking immediate, tailored actions based on their current position, countries can significantly reduce CO2 emissions, achieve energy cost savings, and contribute to global climate goals. The time to act is now.