C
ities and countries worldwide are implementing strict new building regulations to support a green transition. Governments are pushing developers to incorporate clean technology and renewable energy into construction, as the real estate sector contributes significantly to global carbon emissions. Almost 40% of energy-related CO2 emissions come from buildings, with 70% produced by operations and 30% by construction activities.

    Rapid urbanisation is expected to add 2.5 billion people to urban areas by mid-century. Research suggests that energy efficiency improvements can alleviate energy poverty and support better public health outcomes. The OECD's Global Survey on Buildings and Climate found that 54% of countries surveyed had included building-related commitments in their NDCs, while 46% aimed to phase out fossil fuels for heating and cooling.

    However, introducing new measures into construction is challenging due to cost concerns. Governments must balance the need for decarbonisation with affordability for homebuyers. Retrofitting existing buildings can be costly and disruptive, but several countries have introduced ambitious housing strategies aiming for sectoral decarbonisation. The EU's Green Deal aims to achieve carbon neutrality by 2050, while initiatives like REpowerEU seek to reduce emissions.

    The revised Energy Performance of Buildings Directive (EBPD) requires new EU buildings to be zero-emission by 2030 and mandates the renovation of worst-performing buildings. A SolarPower Europe analysis suggests that the EBPD could drive the installation of between 150 GW and 200 GW of rooftop solar power in the coming years.

    The EU Solar Rooftop Standard applies to new non-residential and public buildings from 2027, while existing non-residential buildings undergoing major renovations must comply by 2028. The UK government has announced that almost all new homes in England must be fitted with rooftop solar panels starting in 2027, expected to save homeowners over $1,320 on annual energy bills.

    In Canada, the Energy Future 2023 Global Net Zero Scenario forecasts a 71% reduction in greenhouse gas emissions from buildings by 2050. To achieve this, the government aims to increase heat pump use, meeting 13% of residential space heating demand by 2030 and 50% by 2050.

    Governments worldwide are targeting developers with new building standards and regulations, requiring them to incorporate renewable energy and clean tech into new builds. Several countries have introduced strict measures, while others have mapped their potential to better understand the path to decarbonisation.