From KwH to accountability: improving how we measure buildings’ efficiency

At COP28, nearly 200 countries signed the Global Renewables and Energy Efficiency Pledge1, committing to double the global average annual rate of energy efficiency improvements — from approximately 2% to over 4% annually — by 2030. Yet, no shared methodology was established to measure progress toward this goal.

This paper suggests how to measure energy efficiency progress in the buildings sector.
Currently used indicators, such as final energy consumption per square metre (kWh/m²), i.e. energy intensity is a useful and intuitive metric. However, this indicator can be influenced by external factors, such as climate, economy and user behaviour, that obscure the picture on energy efficiency improvements achieved in buildings. Relying solely on energy intensity risks being misleading.

This paper explores how progress to improve the energy efficiency of buildings can be measured more meaningfully — in a way that is transparent, sector-specific, and globally applicable. We focus on three key complications that current indicators often overlook:

-Climate variations and climate change, which can distort perceived energy gains;
-Economic and behavioural factors, such as energy poverty or price-driven reductions in use;
-Space-use intensity, including how many people benefit from a given energy input.

To build on and refine the existing approach to measuring energy efficiency improvements, while mitigating the limitations, this paper refines and complements the current indicator assessment, tailors it to the building sector, and proposes three improvements to the energy intensity indicator:

1. Climate correction to isolate actual energy efficiency gains.
2. Complementary comfort indicator to distinguish between efficiency and energy poverty.
3. Supplementary per-person indicator to reflect space-use efficiency.

To demonstrate feasibility, this paper applies this modified indicator assessment framework to the European context, using data from Eurostat, the EU Building Stock Observatory, and EU-SILC. The results show:
1. Europe’s building sector is far behind the needed improvement rate, with heating and cooling efficiency rising just ~0.4% annually since 2015 — compared to the 4% goal. Efficiency improvements in Europe need to change by a factor 10 to comply with the global goal.
2. Improved data is urgently needed, especially on disaggregated end-uses, space-use patterns, and comfort levels. Europe’s system, despite gaps, offers a valuable model for global development.
3. No single indicator can capture efficiency alone — a robust approach must account for the relationship between energy input and useful, comfortable building space.

More broadly, a shared, credible way to measure real energy efficiency of buildings is missing. Without it, political pledges risk becoming empty promises. This paper gives policymakers the tools to align on definitions, track genuine progress, and uphold the commitments made on the global stage at COP28 — with transparency, credibility, and urgency.