SBTi Framework to Decarbonise Global Building Sector
The buildings sector contributes over 25% of global energy-related emissions, making it a pivotal player in the fight against climate change.
According to the World Economic Forum (WEF), the sector holds the key to reducing emissions and could unlock US$1.8tn in market opportunities globally.
To drive this transition, the Science Based Targets initiative (SBTi) has introduced the first-ever framework designed to decarbonise the entire buildings value chain.
Alberto Carrillo Pineda, Chief Technical Officer at the SBTi, says: “This sector now has the tools to build towards net-zero – companies and financial institutions must take immediate action.
“Decarbonising both old and new buildings is paramount to tackling climate change. We call on these businesses to lead the net-zero transformation.”
How the SBTi developed its framework
The SBTi framework establishes emissions reduction targets that align with the goal of preventing global temperatures from rising above 1.5°C.
The development process involved an independent Expert Advisory Group, comprising companies, financial institutions, non-profits, and multilateral organisations.
Patrick Ho, Head of Sustainable Development at Swire Properties, who participated in the advisory group, says: “As a member of the Expert Advisory Group, Swire Properties is excited to support the launch of the SBTi Building Sector Target-Setting Criteria.
“The initiative provides a scientifically robust and practical framework for real estate developers and stakeholders to establish pathways aligned with the 1.5°C target for both in-use operational and upfront embodied emissions.”
The framework underwent a two month public consultation in 2023, followed by a four month pilot phase in 2024.
The pilot allowed companies to fine-tune their climate strategies, promoting transparent climate reporting and fostering internal collaboration on applying the Buildings Sector Guidance Principles.
Four key actions for decarbonisation
The new framework outlines four essential actions for companies to decarbonise the buildings sector:
- Stop fossil fuel installations
- Reduce in-use emissions
- Retrofit inefficient buildings
- Lower upfront embodied emissions
The SBTi encourages companies to publicly commit to halting the installation of fossil fuel-based heating, power generation, cooking, and hot water equipment by 2030 at the latest.
It also highlights the need to reduce in-use operational emissions, with regional pathways developed in collaboration with the Carbon Risk Real Estate Monitor initiative (CRREM) to account for local power grid variations.
Prof. Dr. Sven Bienert, Head of the CRREM Consortium, says: "As a long-standing advocate for the decarbonisation of the real estate sector, CRREM is pleased to support the release of SBTi's Buildings Criteria and supplementary resources as a technical partner.
“These tools and actionable guidance provide clear, science-based targets that enable the sector to accelerate decarbonisation and drive the global shift to a net-zero economy.
“CRREM is committed to continuing the collaboration with SBTi to drive meaningful progress in reducing the carbon footprint of the buildings sector."
Meeting future challenges
With global floor area expected to expand by 15% by 2030, 80% of which will occur in developing economies, the SBTi framework urges companies to focus on reducing upfront embodied emissions to manage this growth sustainably.
The initiative also stresses that retrofitting must more than double by 2030 to stay on track with the 2050 Scenario.
Peter Heymann Andersen, COO at Ramboll, explains: “We at Ramboll applaud the SBTi’s latest targets for Buildings, offering a definitive channel for the industry to align with the Paris Agreement goals.
“Having science-based targets, recently validated by SBTi, Ramboll has demonstrated our commitment towards reducing carbon emissions, which also includes targeting reductions from our building designs by 50% come 2030.
“Achieving this is no small feat—it mandates a cohesive effort across the value chain.
“The SBTi’s guidance is invaluable; it not only demystifies 'Paris-aligned' for the sector but also fortifies our discourse with partners and clients, steering us toward a sustainable future in unison.”
The SBTi’s groundbreaking framework represents a critical step forward in the global effort to decarbonise the buildings sector.
By providing clear, science-based targets, it equips companies and financial institutions with the tools necessary to lead the transformation towards a net-zero future.
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