SBTi Launches Buildings Sector Decarbonisation Framework with 2030 Fossil Fuel Halt

The Science Based Targets initiative released its Buildings Sector Science-Based Target-Setting Criteria in August 2024, requiring companies and financial institutions to commit to no new fossil fuel heating and cooking installations by 2030 at the latest. The framework covers both operational in-use emissions and upfront embodied emissions from materials and construction.

The SBTi Buildings Sector Criteria takes a whole-building approach, covering all energy consumption and fugitive emissions to enable companies across the buildings value chain to set 1.5-degree-aligned targets. Four core requirements apply: halting all fossil fuel heating, cooking, power generation, and hot water installations by 2030; reducing in-use operational emissions using regional pathways developed with the Carbon Risk Real Estate Monitor; setting targets to reduce embodied emissions from raw materials, manufacturing, transportation, and construction; and committing to retrofit energy efficiency improvements in existing buildings.

The buildings sector generates over a quarter of global energy-related emissions and faces direct financial exposure to climate impacts, including billions of dollars in construction delays from extreme weather annually. Global floor area is expected to grow approximately 15 percent by 2030, with nearly 80 percent of that growth in developing economies. India, which is experiencing rapid urbanisation and commercial construction growth, is directly affected by the scale of the challenge: around 80 percent of buildings standing in 2050 are already built, making retrofitting a critical near-term priority.

The framework was developed through an independent Expert Advisory Group, a two-month public consultation, and a four-month pilot test. CRREM, a long-standing partner, developed the regional in-use emissions pathways. Companies and financial institutions were invited to attend webinars on 17 October 2024 for a deep dive into the criteria. SBTi Chief Technical Officer Alberto Carrillo Pineda called for immediate action, noting that the sector now has the tools needed to build toward net-zero.

Key figure — Over a quarter of global energy-related emissions from the buildings sector