Achieving net zero buildings: key actions for market transformation

Investment Rating - The report emphasizes the urgent need for a transition to net-zero buildings, indicating a positive investment outlook for companies involved in sustainable building practices and technologies. Core Insights - The building sector was responsible for 37% of energy-related carbon emissions globally in 2022, highlighting the critical need for decarbonization efforts in this industry [7] - A 12-Step Action Plan is proposed to create an enabling environment for net-zero operational emissions in buildings, focusing on definition, transparency, performance, and incentives [15][23] - The report identifies that while some localities have methodologies for defining and assessing net-zero buildings, their application is not yet widespread [24] Summary by Sections Introduction - The report outlines the context of rising emissions in the built environment and the need for immediate action to meet global warming targets [1][10] - It highlights commitments from over 60 countries to implement long-term sector roadmaps for building decarbonization [9] Key Actions for Market Transformation - Four objectives are identified to create an enabling environment for net-zero buildings: definition, transparency, minimum performance, and incentives [17] - The report stresses the importance of a consistent understanding of net-zero buildings and the need for transparency in performance to drive investment [18][19] 12-Step Action Plan - The proposed action plan includes steps to align government taxation and funding with performance against net-zero thresholds, and to mandate corporate disclosure of building performance [39] - It emphasizes the need for a mandatory energy and carbon performance floor for all buildings to ensure a pathway to net-zero emissions [37][38] Next Steps - Future reports will explore the implementation of the 12-Step Action Plan and its impact on real progress in the sector [41][42] - The report aims to engage with industry stakeholders to develop a consensus on property decarbonization strategies [42]