News / Building Bulletin

Buildings remain top CO2 emitter

25 September 2025

Buildings remain the No 1 source of CO 2 emissions, according the European Climate Neutrality Observatory's 2025 report. Emissions cuts averaged 16.5Mta between 2018-23, only half of the 33Mta required. The report attributes the finding to little progress in the renovation of buildings.  Renovation rates have not changed from one per cent annually while deep retrofits reach just 0.2-0.3 per cent of the existing stock. At the same time, embodied emissions are rising, with cement and brick demand increasing by 18 per cent over five years. Energy experts from Exergio, a company that develops AI-based solutions for energy efficiency in commercial properties, say this reflects a blind spot in EU policy. “Deep renovations cover less than one per cent of the building stock each year, which I hardly can call progress. Even light measures like replacing windows or swapping boilers have slowed. Despite that, Europe still overlooks digital retrofits. With AI optimisation, buildings ...