Experts discuss in technical session during UNFCCC June meeting
Photo: Christophe Rousse, 10 Billion Solutions
Only 5% of global investment in the buildings sector is directed towards sustainable building design and energy efficiency. Energy efficiency in buildings remains grossly underfunded, and there is a huge demand for innovative financing mechanisms to be developed.
Carbon markets present a potentially massive source of funding in the future. PEEB is exploring how carbon markets can help fund the decarbonisation of the buildings sector. As part of PEEB Climate Finance Incubator (PEEB CFI) the opportunities offered by Article 6 of the Paris Agreement are systematically explored.
Key milestones include a white paper outlining methodological standards, a practical handbook for decision-makers, standard training for universal use, and capacity-development missions in Morocco, a frontrunner under Article 6.
On 17 June, during the June Climate Meetings (SB62) held by the UNFCCC in Bonn, PEEB invited experts on Article 6 and energy efficiency in buildings to a technical work session. Participants were asked to share feedback on a white paper draft on Article 6 methodologies for buildings.
Photo: Christophe Rousse, 10 Billion Solutions
The session explored how building-related emissions across the lifecycle – from energy consumption to materials production to demolition – can be credibly addressed through Article 6. Participants also discussed how carbon markets can help solve persistent sector challenges: split incentives, fragmented value chains, and financing gaps.
The experts pointed to four essential elements needed to make Article 6 work for buildings:
- Aligned policy frameworks, including baselines, energy standards, and carbon pricing, to support eligibility and investment confidence.
- Simplified yet robust additionality tests that ensure environmental integrity without unnecessary complexity.
- Country-specific implementation strategies tailored to local regulations and market conditions.
- Clearer guidance on identifying viable projects, grounded in proven methodologies and sector experience.
Photo: Christophe Rousse, 10 Billion Solutions
The session was a key milestone in the development of finance opportunities for decarbonising the buildings sector, and there’s still more to come. The feedback from participants will help shape the white paper into a handbook that will guide policymakers and project developers on how to identify viable projects. PEEB is now working to expand the handbook’s scope and engage a wide range of stakeholders to ensure it becomes a practical, transformative tool for climate action in the buildings sector.