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Tracking Incremental Energy Efficiency Investments in Certified Green Buildings
The briefing introduces an 'energy efficiency cost premium' method to isolate energy efficiency spending from total construction costs in green-certified buildings. Analyzing over 16,000 certifications from 2019-2020, it finds that incremental energy efficiency investments averaged USD 10.5 billion annually, representing only about 5% of the total cost of those buildings. The report highlights that green certifications are inconsistent indicators of energy performance, with over half of tracked assets achieving less than a 30% efficiency gain. It argues that current certifications often fail to align with 1.5°C or 2°C decarbonization pathways and recommends standardized asset-level reporting and a shift toward certifying retrofits in developed economies.
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Document type: Briefing