Road transport contributes nearly 16% of global CO2 emissions, while buildings are responsible for approximately 30% of total energy use and more than a quarter of global carbon emissions.
COP28 highlighted the urgency of transforming these sectors, launching initiatives such as the Buildings Breakthrough – a platform for collaboration between national governments and stakeholders to accelerate action towards a common target: “Near-zero emission and resilient buildings (NZERB) as the new normal by 2030”.
While such measures have set important precedents, significant gaps remain in finance, policy and technology as COP30 approaches in Belem, Brazil.
In the built environment, the International Energy Agency (IEA) estimates that retrofitting existing buildings could reduce global carbon emissions by 6.1 gigatons by 2050, while each dollar invested in energy efficiency yields $2–$4 in benefits, including lower energy bills and improved health outcomes.
Despite this, global investment in building energy efficiency rose only marginally to $275 billion in 2024, leaving a cumulative shortfall of $1.1trn necessary to achieve required retrofit and technology deployment targets.
Grid infrastructure and energy storage, essential for integrating renewables and maintaining system resilience, remain underfunded, with $400bn spent annually on grids compared with $1trn on generation assets.
Amount spent on grid infrastructure worldwide each year.
Amount spent on new generation worldwide each year.
The World Green Building Council (WGBC), whose member councils span over 70 countries and collectively represent 49,000 members, recently released a COP30 Action Statement urging for accelerated decarbonisation in the built environment.
The statement calls for finance flows to support a clean economy, including redirecting subsidies toward energy efficiency and renewable deployment, which could unlock $1.8trn in value by 2030.
It emphasises scaling retrofits and renewable integration to meaningfully reduce fossil fuel reliance, alongside rolling out building energy performance codes, mandatory energy efficiency standards, and improved labelling of low-carbon materials.
UNGA: Are other nations bowing to Trump’s ‘climate hoax’ declaration?
At the 80th UN General Assembly (22–29 September), world leaders have largely reaffirmed their commitment to climate action, emphasising that “the urgency of international climate action has never been greater”. This counters the approach of US President Donald Trump, who criticised renewable energy and dismissed the carbon footprint as a hoax.
Investments in grid infrastructure, energy storage and demand-side management are also critical to enhance resilience and ensure electricity security. Furthermore, it emphasises that adaptation and resilience measures are essential to protect vulnerable communities and infrastructure, potentially averting $178trn in climate-related economic damages by 2070.
In transport, electrification has emerged as a key strategy for reducing emissions. By 2024, global electric vehicle (EV) sales surpassed 17 million units, representing roughly one-fifth of new car sales, while about 10% of two- and three-wheelers worldwide are now electric.
Recent reporting shows that from 2022 to 2023, investment announcements in EV and battery manufacturing totalled almost $500bn, of which around 40% has been committed. More than 20 major car manufacturers, representing more than 90% of global car sales in 2023, have set electrification targets, and taken together, these targets could deliver more than 40 million electric cars sold in 2030, meeting deployment levels projected under today’s policy settings.
Governments have also invested in low-emission public transport infrastructure and promoted cycling and pedestrian networks, reflecting broader efforts to reduce reliance on fossil fuels. However, adoption remains uneven, with many emerging economies still facing barriers due to limited financing and infrastructure constraints.
Businesses are pivotal in translating these commitments into action. Companies can invest in low-carbon transport and sustainable building technologies, adopt science-based targets aligned with global climate goals, and advocate for supportive regulations.
Private sector engagement through financing, innovation and collaboration with governments and non-profits can accelerate EV deployment, green building retrofits and smart grid integration.