Energy for Buildings

Share of Emissions from Buildings

World ~40% 🌎
of global CO₂ emissions
U.S. 31% 🇺🇸
of U.S. GHG emissions

Share of Final Energy Used by Buildings

World 34% 🌎
of global total final energy
U.S. 28% 🇺🇸
of U.S. total final energy

Share of Energy Final Used in Buildings From Renewable Resources

World 18% 🌎
U.S. 15% 🇺🇸
of total final energy used in buildings comes from renewable resources

Biggest Opportunities for Energy Efficiency and Decarbonization

• Efficient building envelope (e.g., high performance windows - a home’s largest source of heat loss, insulation)
• Lighting - use of natural light and LED lights
• Improved HVAC systems and ductless heat pumps
• Electrification of space heating and natural gas appliances (stoves, dryers, water heaters)

Effective Sustainable Building Design Practices

• Integrative design - optimize whole systems rather than components in isolation
• Application of energy efficiency best practices
• Maximization of natural light and ventilation
• Use of sustainably sourced natural materials
• Reduction of friction in piping systems through size and layout to ensure smooth transitions
• Optimal building orientation

Drivers

• Reduced costs for building operation and maintenance
• Increased worker productivity and comfort
• Better indoor air quality with health benefits 
• Higher lease rates and resale values for green buildings
• Greater resilience to energy price volatility and grid outages for green buildings
• Increased retail sales in naturally lit spaces
• Supportive policies such as mandatory energy-efficient building codes in some regions
• Available financing mechanisms that reduce upfront costs (e.g., on-bill financing)

Barriers

• Efficiency upgrades must be paid for up-front, and there may be a long cost recovery time
• Upfront costs can be prohibitive if not applied correctly (i.e., optimizing in isolation as opposed to applying principles of integrative design)
• Emphasis on short-term returns can lead to missed opportunities, as many significant energy savings or decarbonization projects require longer periods to break even (payback trap)
• “Split incentives” between those paying the costs of efficiency measures and those enjoying the savings (e.g., owner vs tenant)
• Lack of access to financing for lower-income populations
• Price distortions caused by fossil fuel subsidies 
• Lack of mandatory energy-efficient building standards or codes in some regions
• Risk aversion among managers regarding adopting new, untested technologies, even if they have the potential to improve energy efficiency (manager barrier)
• Long building lifespans mean slow turnover – buildings can operate for 50-100+ years, delaying opportunities for upgrades
• Low consumer awareness of efficiency and decarbonization options
• Lack of skilled workforce in renewable heat and energy efficiency installation

Climate Impact: High

• Leading source of GHG emissions

Environmental Impact: High

Construction:

• Land use
• Mining for building materials
• Noise pollution
• Unsustainable wood harvesting
• Potentially hazardous building materials
• Construction debris

Operational:

• Air pollution
• Waste
• Water use

^{Updated August 2026}