Top 5 Priorities for Achieving Net Zero by 2050 in the Building Sector

By Ankit SinghReviewed by Bethan DaviesApr 8 2025

We don’t often think about buildings as the main climate offenders—but they’re a big part of the problem. Nearly 40 % of global carbon dioxide emissions tied to energy use come from buildings and construction. That’s heating, cooling, lighting, plus everything it takes to make and move the materials, build the structures, and eventually tear them down.¹

Image Credit: VideoFlow/Shutterstock.com

Broadly, those emissions fall into two buckets: operational carbon (running the building) and embodied carbon (everything else). Operational emissions account for about 70 % of the total, while embodied carbon makes up the remaining 30 %.¹

To meet the Paris Agreement’s goal of keeping global warming below 1.5°C, the building sector needs to reduce its emissions by half by 2030 and achieve net-zero emissions by 2050. That’s a steep ask, and it’ll take major shifts in how we design, build, and power the spaces we live and work in.

Let’s break down what needs to happen—and what’s already underway.

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1. Look at the Whole Picture with Lifecycle Carbon Assessments

Until recently, most of the focus in construction decarbonization has been on operational energy—making buildings more efficient. That’s still important, but as operations get cleaner, embodied carbon is becoming a bigger slice of the pie.

Think about the emissions from producing concrete and steel, transporting materials, and eventually demolishing a structure. Those things add up. In fact, materials like concrete and steel alone account for nearly a quarter of global emissions.^2,3

That’s where Whole Life Carbon (WLC) Framework assessments come in. The World Business Council for Sustainable Development's (WBCSD) framework helps track emissions from a building’s entire lifecycle—from raw materials to demolition. It gives project teams a better sense of where the carbon hotspots are (spoiler: structural systems and interior finishes are usually big ones). And this approach isn’t just a nice-to-have anymore. Governments are getting serious about it. The European Union’s (EU) Energy Performance of Buildings Directive now requires lifecycle carbon reporting for all new buildings and more jurisdictions are expected to follow suit.^1-3

2. Clean Up High-Impact Materials

If we want to lower construction emissions, we have to tackle the biggest sources: cement, steel, and aluminum. Together, they account for about 30 % of the building industry’s emissions. The good news, however, is that new technologies and production methods are emerging that significantly cut their carbon footprint—without compromising quality or performance.³ These smarter alternatives include:

• Cement: Traditional Portland cement is incredibly carbon-intensive, mainly due to the CO₂ released during limestone calcination. But alternatives are gaining traction. Geopolymer cement, made from industrial byproducts like fly ash or slag, avoids this process entirely. Meanwhile, carbon-cured concrete actually absorbs CO₂ as it sets—turning a major emitter into a carbon sink. These innovations can reduce emissions by up to 80%.⁴
• Steel: The shift away from coal-fired blast furnaces is underway. Electric arc furnaces, especially when powered by renewable energy, allow for lower-emissions steel production. Another promising option is hydrogen-based direct reduction, which replaces carbon with hydrogen in the reduction process. Both approaches also make it easier to recycle scrap steel—lowering energy use and enabling more circular supply chains.⁵
• Aluminum: While less talked about, aluminum production is also energy-intensive. Switching to low-carbon smelting powered by renewables and expanding closed-loop recycling systems can dramatically reduce its footprint.

Beyond new materials, we should also focus on using less to begin with. Smarter, lighter designs and modular building systems help minimize material use upfront. Reuse strategies—like salvaging wood, brick, or steel from deconstructed buildings—keep existing resources in play and avoid emissions from extraction and processing.

Take steel as an example; recycling uses about 75 % less energy than producing it from raw ore. That’s a major efficiency gain. The Department of Energy’s (DOE) National Blueprint for Buildings Sector Decarbonization decarbonization blueprint also emphasizes circularity as a core strategy and calls for expanded policies and incentives to support reused and recycled materials.⁷

3. Retrofitting and Electrification: The Low-Hanging Fruit

Around 80% of the buildings that will be in use by 2050 already exist today. That simple fact shifts the focus: reducing emissions isn’t just about designing better new buildings—it’s about upgrading the ones we already have.^3,8

Retrofitting offers a direct, scalable path to lower emissions. Improvements like better insulation, high-performance windows, and more efficient HVAC systems can reduce operational energy use by 50–75 %. Electrification—swapping out gas-powered systems for electric ones like heat pumps—builds on those savings, especially when the grid is powered by clean energy sources such as wind or solar.

San Diego is putting these strategies into action. The city aims to reduce natural gas use in buildings by 90 % by 2035. As part of that push, it’s piloting neighborhood-scale microgrids powered by solar and backed by battery storage, in partnership with Schneider Electric and Shell Energy. These systems cut emissions while also boosting energy resilience during outages.⁸

Still, scaling retrofits isn’t simple. High upfront costs, uneven incentive programs, and disparities in access—especially in low-income or marginalized communities—remain major barriers. To address this, the Department of Energy launched the Affordable Home Energy Shot, a national effort to cut retrofit costs in half and expand access to upgrades across the country.⁷

4. Policy, Partnerships, and Playing the Long Game

Getting to net-zero buildings isn’t just about better materials or smarter technologies—it also depends on the right policy frameworks, financial incentives, and long-term coordination across sectors. Without these supports, even the best solutions struggle to scale.

Setting Standards That Drive Change

One of the most effective tools governments are using is Building Performance Standards (BPS), which require existing buildings to meet specific energy or emissions targets over time. More than 30 US cities and states have adopted BPS policies so far, including San Diego, where the local standard targets net-zero operational emissions by 2035. These policies push owners and developers to make upgrades and track progress—not just make promises.

On the corporate side, initiatives like the Science-Based Targets initiative (SBTi) are gaining traction. SBTi helps companies align their climate commitments with actual emissions pathways, ensuring that goals are based on science rather than just marketing.^8,9

Correcting Market Signals

Policy also plays a critical role in shaping the economics of decarbonization. Fossil fuel subsidies still skew the market toward high-carbon options, while low-carbon technologies often face financial headwinds. Redirecting subsidies and introducing carbon pricing can help level the playing field.

According to the International Energy Agency (IEA), roughly 70 % of the emissions reductions needed by 2050 depend on stronger pricing signals and financial incentives.¹⁰

Building Together

No single sector can tackle this challenge alone. Public-private partnerships are increasingly stepping in to fill the gaps, bringing together governments, businesses, and nonprofits to share resources and expertise. The World Green Building Council’s Advancing Net Zero program, for example, connects more than 100 Green Building Councils worldwide to exchange tools, data, and best practices.

Efforts to harmonize standards are also growing. In the UK, the Net Zero Carbon Buildings Standard is creating a consistent framework for measuring both operational and embodied carbon—helping ensure everyone is working toward the same goals using the same metrics.^9,11

5. Innovation + Workforce = Real Impact

Here’s a stat that puts things in perspective: nearly half of the emissions reductions we need by 2050 depend on technologies that are still in early stages today. That means investment in R&D isn’t just important—it’s essential.

Promising areas include:

• Advanced energy storage (for when the sun isn’t shining or the wind isn’t blowing).
• Direct air capture (DAC) to pull residual CO₂ from the atmosphere.
• Smart grids that make it easier to manage distributed energy and demand.

Yet even the most advanced technologies can’t scale without a skilled workforce behind them. The ability to design, install, and maintain clean energy systems will shape how fast—and how equitably—we move.^7,10

In San Diego, San Diego Gas & Electric (SDG&E) is taking a proactive approach by partnering with local colleges to train workers in solar installation, building electrification, and energy efficiency. The effort isn’t just about filling jobs—it’s also about broadening access. By focusing on outreach to underrepresented communities, SDG&E is helping ensure the transition to clean energy includes pathways for everyone to participate and benefit.⁸

The Path to Net-Zero: Building Smarter, Not Just More

The path to net-zero buildings isn’t about one single solution—it’s about taking a systems-level approach that brings together smarter materials, efficient design, clean energy, and inclusive policies.

Lifecycle carbon assessments help us see the full picture. Low-carbon materials like geopolymer cement and recycled steel are already making a difference. Retrofitting and electrification can dramatically cut operational emissions from the buildings we already have. And smart, aligned policies—from performance standards to carbon pricing—can accelerate change across the board.

Innovation and workforce training will fill in the gaps, helping us scale the tools and talent needed to get the job done.

Yes, there are hurdles—cost, complexity, access—but the blueprint is there. And with bold, coordinated action across the construction value chain, we can go from one of the biggest climate contributors to a major part of the solution.

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Curious to Learn More?

Decarbonizing the built environment won’t happen with a single fix. It takes a systems approach—one that combines better design, smarter materials, clean energy, and strong policy. If this article has taken your interest, why not check out the below?

• Embodied Carbon: What Is It and How to Reduce It
• Reducing Embodied Carbon Through Design
• Incorporating the Circular Economy Model in Architecture
• Retrofitting Buildings to Reduce Carbon
• Addressing Workforce Challenges in the Construction Industry with Technology and Training

References and Further Reading

1. Built Environment Decarbonization. WBCSD. https://www.wbcsd.org/actions/built-environment-decarbonization/
2. Ramachandran, A. (2024). The importance to decarbonize construction and achieve net zero. One Click LCA. https://oneclicklca.com/en/resources/articles/climate-emergency-and-the-need-to-reach-net-zero-carbon
3. Call for action: Seizing the decarbonization opportunity in construction. (2021). McKinsey & Company. https://www.mckinsey.com/industries/engineering-construction-and-building-materials/our-insights/call-for-action-seizing-the-decarbonization-opportunity-in-construction
4. Sharma, A. et al. (2022). Potential of geopolymer concrete as substitution for conventional concrete: A review. Materials Today: Proceedings, 57, 1539-1545. DOI:10.1016/j.matpr.2021.12.159. https://www.sciencedirect.com/science/article/pii/S2214785321078834
5. Pimm, A. J., Cockerill, T. T., & Gale, W. F. (2021). Energy system requirements of fossil-free steelmaking using hydrogen direct reduction. Journal of Cleaner Production, 312, 127665. DOI:10.1016/j.jclepro.2021.127665. https://www.sciencedirect.com/science/article/pii/S0959652621018837
6. Steel Recycling: Processes, Benefits, and Business Solutions. Rubicon. https://www.rubicon.com/blog/steel-recycling/
7. DOE Releases First Ever Federal Blueprint to Decarbonize America’s Buildings Sector. Energy.gov. https://www.energy.gov/articles/doe-releases-first-ever-federal-blueprint-decarbonize-americas-buildings-sector
8. 4 strategies to decarbonize existing buildings. World Economic Forum. https://www.weforum.org/stories/2024/05/4-strategies-to-decarbonize-existing-buildings/
9. Net-Zero Buildings: How to Decarbonize a Portfolio. (2023). WSP. https://www.wsp.com/en-us/insights/how-to-decarbonize-a-portfolio
10. Net Zero by 2050 – Analysis. IEA. https://www.iea.org/reports/net-zero-by-2050
11. Climate Action. World Green Building Council. https://worldgbc.org/climate-action/

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