6%
3.3Gt

Buildings

Buildings contribute around six percent of global emissions just from the fuels they burn on-site. If we also take their electricity use into account, like for cooling and powering appliances, this number goes up to 16%.

 

Unfortunately, many buildings are like leaky containers, with single-pane windows and uninsulated, leaky ducts that allow energy to escape. Up to 40% of the heated or cooled air in a typical building leaks out due to these inefficiencies. 

Getting buildings to net zero faces several challenges. Their variety in sizes, types, and uses makes it tricky to establish standardized insulation practices. Rental properties encounter a dilemma where tenants benefit from energy-saving improvements, but landlords have to pay for them. Plus, many homeowners lack the financial resources to make upfront investments for future energy savings. 

To be able to reach net zero emissions, policies supported by cost-effective and easy-to-implement technologies, as well as novel business models that pre-finance home electrification, are essential in overcoming these challenges in the building sector.

Buildings contribute around six percent of global emissions just from the fuels they burn on-site. If we also take their electricity use into account, like for cooling and powering appliances, this number goes up to 16%.

 

Unfortunately, many buildings are like leaky containers, with single-pane windows and uninsulated, leaky ducts that allow energy to escape. Up to 40% of the heated or cooled air in a typical building leaks out due to these inefficiencies. 

Getting buildings to net zero faces several challenges. Their variety in sizes, types, and uses makes it tricky to establish standardized insulation practices. Rental properties encounter a dilemma where tenants benefit from energy-saving improvements, but landlords have to pay for them. Plus, many homeowners lack the financial resources to make upfront investments for future energy savings. 

To be able to reach net zero emissions, policies supported by cost-effective and easy-to-implement technologies, as well as novel business models that pre-finance home electrification, are essential in overcoming these challenges in the building sector.

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Sub-challenge 1

Heating and cooling


The challenge of climate change introduces a troubling paradox: as global temperatures rise, our primary method of cooling, air conditioners, makes climate change even worse. Not only do they increase CO2 emissions, but they also release harmful refrigerants, gases that cause thousands of times more warming than an equal amount of CO2. With over 5 billion A/C units projected by 2050 (double the current amount), finding energy-efficient cooling solutions is crucial. At the same time, we must also explore clean and efficient ways to stay warm during colder seasons. Currently, around 40% of households worldwide require space heating for part of the year, and nearly two-thirds of heating energy use still relies on fossil fuels.

01 Insulation

Most of the buildings we’ll have in 2050 have already been built, and we need to rapidly improve their insulation to decrease emissions from buildings. Basic insulation steps can make homes up to 20% more energy efficient and more advanced insulation can reduce energy usage up to 75%.* New insulation technologies underway can help decrease costs and scale adoption.
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02 Heat pumps and air conditioning

Several companies are exploring ways to meet the heating and cooling demand of the future in an energy-efficient way. But even as technologies continue to get better, consumer uptake is not accelerating as fast as it could as consumers may lack the funds, information or incentives to make energy-efficient choices. A new generation of energy suppliers is aiming to change this.
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03 Other sustainable heat

Besides using heat pumps, there are other methods to reduce our reliance on fossil fuels for heating or increase efficiency. We could turn to green energy sources for our heating needs like geothermal power or solar thermal heaters that use solar collectors on the roof to produce hot water. Another opportunity is district heating, where the heating of multiple buildings comes from a centralized, renewable power plant.

04 Enablers

To get to net zero, we need to retrofit most buildings in the world. While some homeowners took the initiative to do this themselves, spending time researching what insulation and heat pumps they needed, many homeowners want help navigating through this complex field. Platforms that support finding the right solutions for a specific home, connecting to installers, and helping apply for subsidies are on the rise. Sometimes these platforms also offer financial and insurance services.
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Sub-challenge 2

Construction

The construction industry is a significant contributor to GHG emissions and air pollution. Most of these emissions are related to the burning of diesel fuel on construction sites. Heavy-duty vehicles, cranes, excavators, generators, and other types of equipment all discharge emissions into the atmosphere. The industry’s reliance on diesel fuel often stems from the absence of grid power at construction sites.

01 Electrify construction

Diesel engines and generators from a construction site can be eliminated by replacing them with electric batteries that cater to the energy needs of construction equipment. When these batteries are powered by renewable energy, for example by combining them with on-site solar panels, they can revolutionize the way we build.
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Sub-challenge 3

Other electricity use

Meeting our daily needs—lighting our homes, doing laundry and dishes, cooking, and keeping our food cool—depends on electricity. Energy consumption of these behaviors continues to grow despite efficiency improvements. Despite improvements in efficiency resulting from stricter minimum energy performance standards in many regions, further gains are needed and must be accompanied by behavioral shifts to reduce household electricity needs. The rise of digitization adds to the challenge through data centers and data transmission networks, each accounting for about 1-1.5% of global electricity use. It is projected that electricity usage by data centers, primarily driven by the adoption of AI, will triple by 2030.* Industry efforts on energy efficiency and renewables procurement will be essential to curb energy demand.

01 Efficient appliances

Lower electricity appliances can make a big difference within a building. If the highest existing minimum energy performance and labeling standards were applied globally, they could save the equivalent of ~1140 average coal-fired power plants, showcasing how key lighting and appliance efficiency improvements are to limiting global warming.

02 Smart buildings

With the increasing penetration of internet connectivity, Internet of Things (IoT) devices have become an integral part of our daily lives. Smart homes are leveraging this connectivity to achieve energy efficiency by automatically adjusting temperature settings, managing lighting, and controlling other energy-intensive devices, resulting in lower energy bills and reduced emissions.
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03 Sustainable cooking

Most emissions from cooking arise in large parts of the world where people still cook on open fires, mainly fueled by traditional wood or coal stoves. By bringing clean cooking improvements to these individuals, we could improve their health by preventing local air pollution, while also reducing GHG emissions and deforestation.

04 Efficient data centers

In a zero-carbon grid, it’s important to make sure data centers are as efficient as possible to put less pressure on our renewable energy capacity. Enhancements in energy efficiency involve deploying more effective cooling systems for servers, integrating smart energy management software to pinpoint inefficiencies, and embracing virtualization—a method that reduces the overall number of required servers.
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