The built environment is responsible for more energy-related carbon emissions than the entire transportation sector, making the transition to net zero buildings a critical response to climate change. A new report from the World Business Council for Sustainable Development and Arup sets out how property owners and policymakers can take action now to meet emissions targets
The urgency of climate action has never been clearer. As the built environment contributes approximately 37% of global energy-related carbon emissions, our sector bears a significant responsibility for driving meaningful change.
Despite this, globally the policy position is stark, with no countries having policies in place requiring comprehensively net zero buildings either now or in the future.
In addition, only 18% of Nationally Defined Contributions (national decarbonisation commitments as part of the COP process) feature specific targets to decarbonise the built environment.
The World Business Council for Sustainable Development (WBCSD) and Arup’s recently published report, Achieving Net-Zero Buildings – An Action Plan for Market Transformation, provides a comprehensive blueprint for how we can address this challenge and transition to net zero operational buildings at scale.
Moving from compliance to performance
One of the most critical shifts that needs to be made is moving from a code compliance mindset to a performance framework. Traditional building regulations typically focus on design specifications and predicted energy efficiency, not on how buildings actually perform when occupied.
Evidence from the Better Buildings Partnership in the UK shows virtually no correlation between EPC ratings and actual energy performance, highlighting the limitations of the current approach.
A performance framework, by contrast, regulates on the basis of actual energy performance in use and so addresses all factors influencing a building’s energy consumption – from design and construction to commissioning, operation and occupant behaviour.
This approach enables us to truly measure and improve what matters: real-world carbon emissions.
A 12-step action plan
Our research identifies a comprehensive action plan built around four key objectives:
- Definition: Establishing a consistent understanding of what constitutes a net zero building, with performance thresholds covering both energy efficiency and renewable procurement
- Transparency: Requiring all operational buildings to publish their performance relative to net zero targets.
- Performance floor: Implementing mandatory minimum standards that tighten over time.
- Incentivised goal: Creating commercial incentives that drive investment in net zero buildings.
The good news is that every element of this action plan has already been successfully implemented somewhere in the world. NABERS in Australia, New York City’s Local Law 97 and the UK’s emerging Net Zero Carbon Building Standard all provide evidence that these approaches work. The challenge is bringing these pieces together comprehensively.
Proven pathways to net zero
Our report showcases 16 case studies across four themes – operational optimisation, retrofit, new build and technologies – demonstrating the viability of achieving net zero buildings in various contexts worldwide.
For existing buildings, optimisation should be the first step. For example, Landsec’s portfolio-wide programme in the UK has delivered 10%-20% energy savings through improved building management system controls and operational practices. This low-hanging fruit often has the shortest payback periods and creates a solid foundation for deeper interventions.
When more substantial changes are needed, retrofit projects like 40 Argyll Street in London show how even listed buildings can be transformed into all-electric, high-performance spaces. This prime office space now targets a NABERS UK 4.5-star rating and operational energy use of just 53.2 kWh/m²/year.
For new construction, projects like The Emma & Georgina Bloomberg Center in New York demonstrate how net zero can be achieved from day one through integrated design approaches combining ground-source heat pumps, building-integrated photovoltaics and smart systems.
Technology as an enabler
While achieving net zero is possible with today’s technologies, innovation continues to expand what is feasible. The deployment of energy recovery ventilation in Thailand’s hot, humid climate has delivered 35%-45% energy savings, while DC microgrids in China have enabled more efficient use of on-site renewable generation.
Service-based business models are also emerging as powerful enablers. Cooling-as-a-Service installations in India and South Africa demonstrate how capital constraints can be overcome while simultaneously delivering 20%-70% energy improvements compared to conventional systems.
A call to action for industry
As practitioners in the built environment, we need to:
- Advocate for policy frameworks that incentivise performance over mere compliance.
- Upskill our teams to deliver net zero buildings in both new construction and retrofit contexts.
- Engage clients in conversations about operational outcomes, not just design standards.
- Share knowledge and evidence to accelerate market transformation.
The transition to net zero buildings is already underway, as our case studies demonstrate. However, we must dramatically accelerate the pace of change if we are to meet our climate responsibilities.
What’s particularly encouraging is that the barriers are not technological – we already have the solutions. Rather, the focus neds to be on creating the right enabling environment through policy, transparency and incentives.
By implementing the 12-Step Action Plan outlined in our report, we can transform our industry and ensure buildings become part of the climate solution rather than continuing to be part of the problem.
The prize is substantial: reduced operating costs, enhanced asset values, improved occupant wellbeing and a meaningful contribution to global climate targets. The time for incremental change has passed; we need systematic transformation now. And with the framework provided in our action plan, that transformation is not only possible but entirely achievable.
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