COP30: Climate-Neutral, Energy-Efficient Buildings, Districts and Smart Cities

Recommendations

• Reduce energy and electricity demand through efficiency measures, especially in existing buildings.
• Deploy building-integrated solar systems (for both electricity and heat) and district heating.
• Develop integrated urban strategies that combine energy, transport, buildings, and land use in line with the EU Renewable Energy Directive and the Electricity Market Directive.
• Introduce clear price signals. Design tariffs that are understandable for end users and drive desired societal outcomes.
• Enable flexibility. Support coordinated solutions at neighbourhood and city level to enhance resource efficiency.
• Strengthen collaboration. Increase cooperation between business, academia, and the public sector to leverage digitalisation and sustainable urban development.
• Engage citizens. Ensure that technology is used inclusively, promoting participation and improving quality of life.

Current situation

Today’s cities account for a large share of global greenhouse gas emissions due to high energy consumption and inefficient resource management. Climate-neutral and smart cities aim to balance their greenhouse gas emissions through measures that reduce, capture, or offset them — achieving net zero. Both the EU and Norway target a 55 % reduction in greenhouse gas emissions by 2030 and climate neutrality by 2050.

Residential and commercial buildings account for about half of Norway’s annual electricity consumption. Aligning energy use in buildings and urban areas more closely with renewable energy generation will help reduce emissions. Achieving a net-zero Europe by 2050 requires a significant increase in renewable energy — much of which will be variable and weather-dependent (solar and wind). To maintain power system balance, electricity consumption must become far more flexible. Smart technologies need to be better utilised to collect and analyse data in real time, enabling improved energy management.

Despite extensive research and experience from programmes such as FME ZEB (Zero Emission Buildings) and FME ZEN (Zero Emission Neighbourhoods), implementation remains slow. The market is fragmented, and suppliers often lack the competence to deliver integrated solutions. As a result, costs are inflated due to perceived risk. Investing in climate-neutral or zero-emission solutions requires upfront capital, and current regulations and business models are still designed for traditional practices rather than innovation. There is also a lack of new business models and services that reflect the opportunities of future zero-emission districts.

Solutions

The transition to climate-neutral and energy-efficient cities requires comprehensive cooperation between research, industry, government, and citizens. Research shows that it is possible to halve energy consumption in the building stock by 2050, freeing up around 40 TWh of electricity — enough to meet growing demand in the transport and industrial sectors. Moreover, research indicates that material-related climate footprints can be reduced by at least 50 % compared to today’s solutions.

To realise these reductions, action must be taken quickly and collaboratively. Knowledge development, capacity building, and significant measures from both public and private actors are needed — and must be implemented well before 2030 to have measurable effects by 2050.

Although climate-neutral and zero-emission solutions require initial capital investment, they are profitable over their lifecycle. As technologies mature and become standard, costs will fall further. Reduced energy use and local energy production also generate both savings and potential income streams.

Energy flexibility must be better utilised through smart control and optimisation. Flexibility exists at both the building and district level and can involve thermal energy systems (district or local heating) as well as the power grid. Coordinated use of such resources improves energy efficiency and system resilience.

Demonstration projects can showcase innovative solutions, drive learning, and reduce costs through market experience. Climate-neutral and smart solutions in buildings, neighbourhoods, and cities will also create new jobs and business opportunities. Finally, achieving rapid, fair, and cost-effective global emission reductions requires binding international cooperation — including shared standards and common goals for climate-neutral buildings and cities.