Buildings represent the largest opportunity for cost-effective global CO₂e emissions reductions available immediately. Energy use in buildings accounts for over 20%, or 10 billion metric tons, of global anthropogenic CO₂e emissions annually.

Emissions from buildings are projected to rise to 11.1 billion tons by 2020, according to the IPCC. Building materials manufacture contributes approximately another 4 billion tons of CO₂e annually and is increasing due to global construction. The largest share of construction is taking place in developing countries, with China playing the biggest role. Failure to decrease buildings sector emissions by 2020 will make it near impossible to hit global stabilization targets for CO₂e and avert catastrophic climate change.

Low energy prices, lack of awareness about climate change, and a pervasive principal-agent problem in the building sector have led to the construction of highly energy-inefficient buildings. These issues continue to bias decision making today. For example, although energy prices have increased, average monthly residential utility bills in the U.S. are under $160/month and not a strong motivator for efficiency investments.

Lack of information on the part of consumers regarding energy efficiency options, cost savings, and security and outdated building codes are slowing transformation of the buildings sector.