Unlocking efficiency: A critical path to sustainable buildings worldwide

The views expressed in the Let’s Talk Development blog are solely those of the author(s).

As we mark Earth Day today, an equivalent of a Paris-sized city of new buildings is constructed every week with no mandatory energy efficiency standards, locking in decades of excessive energy consumption and emissions.

A new World Bank report, "Unlocking Efficiency: The Global Landscape of Building Energy Regulations and their Enforcement," highlights the critical role of building energy efficiency by providing a detailed analysis of global building energy regulations and their enforcement, offering practical recommendations for policymakers. The findings reveal the urgent need for effective regulatory frameworks to manage the projected construction boom.
 

Global Coverage of Building Energy Codes: Progress Made, But Large Gaps Remain

A Landscape of Disparities

The report uncovers stark regional disparities in building energy code adoption and enforcement. Europe leads with near-universal adoption, while rapidly urbanizing regions in Africa and South Asia remain largely unregulated. Of 88 countries studied, 71 have mandatory requirements, but only 52 enforce them consistently.

These disparities are concerning given the scale of projected construction in developing regions. India and Africa will add over 100 billion square meters of new floor space between 2022 and 2050—over 40% of global construction. Without effective regulations, this boom risks locking in decades of unnecessary energy consumption and emissions.
 

Building Energy Codes (BEC) by Income Group

Detailed Technical Requirements: Building for Climate

The report offers targeted policy recommendations for strengthening building envelope standards. It suggests developing climate-specific performance standards for roofs, walls, floors, and fenestration. For example, cold regions might prioritize U-values below 0.20 W/m²K, while hot regions might focus on values between 0.30-0.49 W/m²K.

For cooling systems, the report recommends comprehensive national policies, including regulations, information programs, and incentives to reduce energy consumption and refrigerant emissions. This includes enhanced Minimum Energy Performance Standards (MEPS) for air conditioning and demand-side management requirements.

The report proposes a tiered approach for lighting requirements, starting at 70-80 lm/W in developing markets and increasing to 100+ lm/W in advanced economies. It also recommends phased control system implementation for larger commercial buildings, beginning with basic manual switching and scheduled shutoff, then advancing to daylight-responsive controls and occupancy sensors.
 

Enforcement: Bridging the Implementation Gap

Enforcement is critical for translating well-designed codes into actual energy savings. The report recommends establishing clear authorization frameworks for third-party inspectors with standardized qualifications and regular reviews. It advocates for independent bodies to develop inspector guidelines and oversee inspection quality.
 

Enforcement of Building Energy Codes by Income Group in Practice

Successful passive design verification requires a progressive framework aligned with local climate zones and market capacity. Initial requirements should focus on fundamental elements like building orientation and solar control, expanding to complex strategies as markets develop. Countries should set clear performance thresholds for shading coefficients, ventilation opening ratios, and other easily verified metrics.

Post-construction verification is crucial, with the report recommending staged implementation. Countries should start with visual inspections of critical elements and then expand to comprehensive as-built verification with performance testing. Energy audits can be introduced as market sophistication and verification capabilities mature.
 

Market Support Tools: Enabling Implementation

Financial incentives play a vital role in market transformation. Performance-based grants that offer progressively higher funding for superior energy performance follow successful models like Singapore's Green Mark Incentive Scheme. Tax credits work best with a tiered approach that rewards higher energy savings, while rebate programs should provide immediate financial benefits while encouraging deeper efficiency upgrades.
 

Adoption of Financial Incentive Types by Income Group

Technical resources are equally important. Comprehensive designer and occupant guides structured in a three-tier system can cover basic compliance, detailed design solutions, and advanced performance options. These work best when maintained through centralized digital platforms with standardized templates for updates while engaging industry stakeholders to ensure practical relevance.
 

Technical Resources to Support Energy Efficiency Compliance and Adoption

A Differentiated Approach for Different Contexts

Countries require differentiated approaches based on their development stage and institutional capacity. For countries introducing building efficiency standards for the first time, the focus should be on establishing basic regulatory frameworks with clear compliance pathways. Those with existing codes should prioritize strengthening enforcement mechanisms and expanding technical requirements.

Those starting from minimal requirements should focus first on no-cost and low-cost measures like passive design strategies that deliver immediate savings with minimal implementation expense. As market capacity develops, countries can progressively expand to more complex requirements—from basic envelope improvements and efficient lighting to comprehensive performance standards.
 

The Path Forward

The report identifies three priorities:

1. Expanding coverage in regions with limited requirements
2. Strengthening enforcement where codes exist
3. Addressing existing buildings through retrofits

Success depends on creating self-sustaining frameworks that align policy with market capacity. While the implementation pace will vary, all jurisdictions must establish action plans with clear accountability for full code implementation and enforcement.

Decisions made today about building energy efficiency will shape future energy consumption and emissions. This report provides the evidence and strategic framework to ensure these decisions support our climate objectives.