PARIS, France / RankWire.AI / – Buildings around the world could become substantially more energy efficient over the next decade, helping households and businesses lower their energy bills, according to a new International Energy Agency special report. The report examines a proposed global target to improve the energy intensity of buildings by at least 25% by 2035. It finds the goal is achievable with existing technologies and policies. Meeting it, however, would mean more than doubling current rates of improvement.
The report was prepared at the request of Türkiye and Australia under the strategic partnership between the COP31 Presidency and the IEA. Buildings energy intensity has improved by only about 1% a year so far this decade. Under current policy settings, it would decline by just 7% from 2025 levels by 2035. IEA Executive Director Fatih Birol said more efficient buildings can cut emissions while making a tangible difference to daily life. He said the priority now is to put existing tools to work.
The report identifies four main areas where faster progress could deliver the required gains. These are improving building envelopes, electrifying end uses, strengthening equipment efficiency and expanding access to clean cooking. Together, they could reduce buildings’ energy intensity by more than 25% by 2035, even as population growth and rising incomes lift demand. They could also cut the sector’s direct CO2 emissions by nearly 40%. The mix would vary by country, reflecting climate, building stock and technology use.
Efficient equipment leads the gains
At the global level, more efficient equipment makes the largest contribution in the IEA pathway, accounting for 40% of the reduction. Better building envelopes contribute another 20%, and electrification up to 15%. Expanded access to clean cooking, replacing the inefficient traditional use of biomass, adds a further 25%. New materials are also emerging, including cement designed to reflect heat and cut cooling demand. Heat pumps feature among the technologies whose economics governments are urged to improve.
Energy used in buildings accounts for around 30% of total final consumption and half of all electricity consumption. The sector also produces 2.8 gigatonnes of direct CO2 emissions each year. The IEA says its pathway is consistent with the COP28 goal agreed in Dubai of doubling the global rate of energy efficiency improvement by 2030. It also fits a proposed COP31 goal of raising electricity’s share of final energy consumption to 35% by 2035. Electricity demand is already climbing as data centres expand.
Policy tools already in place
The report says governments already have proven policy tools, but faster progress depends on combining them effectively. These include stronger and better enforced building energy codes and faster renovation of existing buildings. Wider minimum energy performance standards and energy labels can also help. Measures to improve the economics of heat pumps and expand clean cooking access can reinforce one another. The IEA says the right mix will depend on national circumstances and starting points.
Because buildings last for decades, choices made now will shape energy use for years to come. Faster efficiency gains would help countries meet growing demand for energy services at lower cost and strengthen energy security. They would also help accommodate rising electricity demand while lowering emissions. The report comes ahead of the COP31 climate summit, which runs from November 9 to 20 in Antalya, Türkiye. Australian minister Chris Bowen will serve as President of Negotiations at the talks.