Enhance energy efficiency in the built environment4 Sector objective: According to the IEA, retrofit rates for buildings should more than double to 2.5% per year to align with the doubling target by 2030.18 Energy-consuming products, such as appliances including air conditioners and refrigerators, would also require 30-40% less energy to do the same job, with all markets mainly selling LED lighting by 2030. This sector represents about 30% of global energy demand and approximately one-third of global GHG emissions.19 This energy is used in construction, heating and cooling, lighting, and operating appliances and equipment installed in them.Key policy enablers: IBC members have identified the three most important government actions as: i. Providing direct tax credits/incentives to support retrofitting and electrification efforts. ii. Creating minimum building efficiency codes for houses and commercial buildings that become more stringent over time. iii. Shortening administrative procedures, including permitting, for retrofit-related modifications. Table 5 lists the full list of policy enablers that IBC members have recommended. Buildings TABLE 5 Inform Facilitate access to key data such as energy performance certificates and risk-related data points. Provide digital public tools to track energy consumption. Launch public awareness campaigns. Regulate Create minimum efficiency standards for buildings, and related equipment inside buildings, that become more stringent over time, and harmonize these standards across industries and regions. Shorten administrative procedures, including permitting, for retrofit-related modifications. Strengthen testing and enforcement mechanisms for standards. Legislate to require green building design across new construction to align with a “net-zero” world. Align with leading international building standards on measurement of energy. Incentivize Implement programmes and allocate dedicated funding for widespread retrofitting interventions and electrification. Provide support for the creation and provision of green mortgages to fund retrofitting through tax incentives or insurance. Support digitalization of building management systems. Provide incentives for retrofitting to meet minimum standards. Invest in local energy communities to generate jobs and economic growth, as well as in critical material and recycling hubs.Key building blocks Note: Top enablers chosen by IBC in bold Transforming Energy Demand: Accelerating Business Action through Government Leadership 13

Transforming Energy Demand 2025