| Global buildings sector |
Share of global energy demand |
Approximately 30% |
2022 |
Buildings remain one of the largest energy-consuming sectors, making residential efficiency a central part of emissions-reduction strategies. |
Very high |
| Global buildings sector |
Share of energy-related carbon dioxide emissions |
Approximately 26% |
2022 |
The sector’s emissions profile increases pressure for insulation, efficient heating, lower-carbon electricity and building-performance improvements. |
Very high |
| European Union |
Reduction target for average primary-energy use in residential buildings |
16% by 2030; 20–22% by 2035 |
Targets under the recast Energy Performance of Buildings Directive |
Member states must establish national pathways that encourage renovation of the least efficient homes and improve the overall building stock. |
Very high |
| European Union |
Fossil-fuel heating transition |
National road maps should aim to phase out fossil-fuel boilers by 2040 |
Directive adopted in 2024 |
Homeowners and landlords face growing incentives to replace fossil-fuel heating with heat pumps, district heating or other lower-emission systems. |
High |
| United Kingdom |
Residential energy-performance policy direction |
All homes targeted toward EPC C or better by 2035, subject to consultation and policy changes |
Government target announced in 2020 |
Energy-performance standards have increased attention on loft insulation, wall insulation, glazing, ventilation and heating-system upgrades. |
High |
| United States |
Federal home-efficiency tax-credit ceiling |
Up to US$3,200 per year for qualifying efficiency improvements |
Inflation Reduction Act provisions effective from 2023 |
Tax incentives reduce the upfront cost of insulation, efficient windows, doors and qualifying home-energy improvements. |
High |
| United States |
Federal heat-pump tax-credit ceiling |
Up to US$2,000 for qualifying heat pumps |
Inflation Reduction Act provisions effective from 2023 |
Financial support improves the economics of replacing fossil-fuel heating systems with high-efficiency electric alternatives. |
High |
| Japan |
New-build energy-performance requirement |
Energy-efficiency standards required for all new buildings |
Requirement scheduled to apply from fiscal year 2025 |
Although focused on new construction, the rule strengthens demand for high-performance envelopes, efficient equipment and lower operational energy use. |
Medium |
| Australia |
National residential energy-rating standard |
Minimum average rating increased from 6 to 7 stars |
National Construction Code 2022 |
Higher minimum standards increase the importance of passive design, insulation, glazing, shading and efficient building services. |
Medium |
| Global household economics |
Main financial drivers of retrofit decisions |
Energy-bill savings, policy compliance, resilience and property value |
Ongoing trend |
Volatile energy prices and tightening climate rules are shifting renovation decisions from cosmetic upgrades toward whole-home, multi-measure retrofits. |
Growing |