What the Paris Climate Agreement means for the Building Sector

LAC Regional Meeting GABCLima, 20 September 2016Martina Otto, Head of Cities and Lifestyles, UN Environment

Critical to realizing global objectives:Combating Climate Change Sustainable DevelopmentHousing and Urbanization Disaster Risk Reduction

• Buildings and constructions account for 32% of global energy expenditure and are responsible for 19% of greenhouse gas emissions,  (9 GtCO2e / year or around 30% of all energy‐based CO2 emissions)

• Based on projections and construction trends, emissions from the building sector could double by 2050 if we carry on business as usual

• Due to the population growth of 2.5 billion people by 2050 and the strong needs that are still to be met, in particular in high‐growth, emerging and developing countries, the global stock of buildings is estimated to grow by over 180 billion m²,  (by over 90%)

Why tap the significant, and largely unrealized, potential of the building sector

• Achieving the greenhouse gas (GHG) emissions mitigation potential of the building sector is essential for the world to limit global warming to <2oC.  This path requires reducing global energy and process‐based CO2 emissions by 60% in 2050 compared to 2012. 

• For the building sector this means avoiding at least 50% of projected growth in energy consumption through mainstreaming of highly energy‐efficient, near or net‐zero energy or energy‐plus new buildings, and a deep renovation of the existing stock of buildings by 2030. 

• However, there is still no mainstream demand for low‐GHG emissions buildings.  Available technical and financial resources are therefore not fully mobilized, despite the many effective technologies, materials and design concepts, and proven policy measures available.

Why tap the significant, and largely unrealized, potential of the building sector

Buildings were recognized and identified as a key sector in the lead up to COP21, based on mitigation potential and realisation that 2 degree path is not achievable without reducing emissions from buildings and construction.  

The Government of France, as Presidency of COP21, proposed ‘Buildings Day,’ and has supported development of the Global Alliance.

The Need for Actions to address Climate Change

Creating the transformation needed to

address the challenges in the building sector requires investing

approximately an additional $220 billion US by 2020. But returns on this 

investment could be as high as 124% if investments in ambitious

policy and technology actions are made

now.

The Need for Actions to address Climate Change

Transforming markets to enable rapid

widespread adoption of today’sstate-of-the-art policies and technologies

could reduce building energy demand to almost 50%

of 2005 levels – avoiding more than 3,2GtCO2‐e 

by 2050.

The Need for Actions to address Climate Change

2030 Agenda for Sustainable Development

The building sector intersects with most of the Sustainable Development Goals, including Climate Action, Infrastructure, Sustainable Cities,  and Partnerships.  The SDGs will not be realized without actions in the building sector.  

Climate Change, and much more…

Climate and EnergyProjections and established

pathways to zero energy/zero carbon

Through technologies, policies and mechanisms (codes, standards, rating systems, etc.), and political will

(Graph from Architecture 2030)

Resource Efficiency• Resource use and Materials

extraction increases with population growth(materials, water, waste)

• Construction mineral extraction from 1992 to 2005 increased by 80%

• How to alter resource consumption trends from construction?

• More Localized Decisions and Solutions

UNEP, 2011

Beyond Climate and Energy Challenges

Mapping Building Sector Actorsand Initiatives

Credit:  J. Drinkwater, World Green Building Council 

Building Sector Responding to Global Mandates

2030 Agenda for Sustainable Development (SDGs)

Adopted in September 2015

The New Urban Agenda

Being developed through the Habitat III processTo be adopted at H‐III in Quito, October 2016

The Paris Climate Agreement 

Agreed at COP‐21 in December 2015

Rio+20 (The Future We Want)

10YFP Adopted – July 2012 

10YFP: A 10 Year Framework of Programmes on sustainable consumption and production (SCP), adopted at Rio+20.

SBC Work Streams

Multi‐stakeholderAdvisory Committee

Partners

Lead and Co‐LeadsCoordination Desk

Other 10YFPProgrammes

Coordination Desk

Work Stream 1

Work Stream 2

Work Stream 3 Sustainability inSupply Chain

Work Stream 4

Cross‐cutting themes

Knowledge sharing OutreachAwareness raising

EnablingFrameworks

SustainableHousing

ReduceClimate Impact

Africa

EuropeAsia

North

LAC

Oceania

America

Region

Stakeholders Mobilising Actions and Initiatives

Actions are being taken by Countries, Cities, Private Sector and NGOs

• More than 90 countries identified Buildings or Buildings Efficiency‐related activities in their Intended Nationally Determined Contributions (INDCs) in the lead‐up to COP‐21

• According to ICLEI, more than 500 cities have committed to reducing emissions from construction supply chains and/or climate neutrality, and more than 300 cities have committed to policy actions such as building energy efficiency regulation, rating and disclosure;  C40 Cities reported more than 2,200 actions being taken in the building sector in partner cities

• World Resources Institute working with cities through the Building Efficiency Accelerator under the Sustainable Energy for All platform 

• In a pre‐COP21 review of private sector partner platforms and companies:  More than 200 had committed to reducing energy use in the buildings and facilities they own and/or operate, increasing use of building integrated renewable energy

Actions are being taken by Countries, Cities, Private Sector and NGOs

• More than 70 private sector partner platforms and companies  committed to increasing their investment in low energy and carbon building & construction programs

• Finance institutions are committing to decrease emissions from their own operations and buildings energy efficiency improvements, and increase investments or finance offered to the sector for climate actions in buildings.

• Over 100 financial institutions (both investors and banks) being mobilized and committed to increase energy efficiency financing;    Investors representing over $3 trillion in assets under management have endorsed the G20 Energy Efficiency Investor Statement ‐ work led by UNEP Finance Initiative jointly with the PRI and CERES

• 91 banks from 38 countries have signed the Statement of Financial Institutions for Energy Efficiency, work co‐led by EBRD and UNEP FI

Stakeholders Mobilising Actions and Initiatives

• Greater recognition of the building sector in global processes and increased awareness‐raising 

• Global Alliance for Buildings and Construction (24 countries and more than 60 organizations) to increase pace and scale of actions through Knowledge sharing (Communication; Collaboration; Implementation)

• Actions being identified by countries, sub‐national governments, private sector and NGOs, including in NDCs

• More energy efficiency and building‐related projects in all regions

• Greater focus on finance, data and measurement

• Opportunities for Climate Change actions, SDGs and ‘The New Urban Agenda’(at Habitat III in Quito, Ecuador in October 2016) to intersect and further engage the building sector

Progress

The Paris Agreement

Challenges of the Paris Agreement: Implementation of the NDCs (Capacity

Building; Finance; Reporting; Reviewing)

GABC: the coalition facilitating the implementation of the Paris Agreement in the building sector worldwide

Examples of Platforms and Initiatives promoting Energy Efficiency in Buildings

• 10‐Year Framework of Programmes on Sustainable Consumption and Production (10YFP) 

• Energy Efficiency Accelerators Platform  (Building Efficiency Accelerator)

• Energy Efficiency Laboratories  

• Technical and Policy Support Networks 

• NAMA Development Project

• Finance‐focused Initiatives  

• Member Networks 

• National and Domestic Initiatives and Sub‐national Initiatives 

Stakeholders Mobilising Actions and Initiatives

For the first time ever, the building sector's

critical role in the fight against climate change was recognized

with Buildings Day, at COP 21 in Paris.

The second Buildings Day will be held at COP 22

in Marrakech

Thank you!For more information, please contact:

Mr. Frederic Auclair, Coordinator of the GABC (Frederic.auclair@unep.org)

Or 

Mr. Curt Garrigan, Cities and Buildings Officer(Curt.Garrigan@unep.org)