In this fourth part of the 2024 Annual Review, the Climate Change Advisory Council outlines detailed observations and recommendations for the Built Environment sector. The sector includes all residential, commercial and public buildings, and the majority of emissions arise from fossil fuels used for heating space and water. Reliance on fossil fuels needs to end for the sector to reduce its emissions in line with climate objectives. Emissions across the sector fell again in 2023 and included a 7.1% reduction in emissions from residential buildings. The residential sector is currently on track to meet its sectoral emissions ceiling, but to do so it must rapidly scale up efforts to replace fossil fuel heating systems with low-carbon alternatives such as heat pumps and district heating. It will also be essential to continue upgrading and improving the energy efficiency of buildings. In 2023 there was a significant increase of almost 80% in the number of properties making use of existing grants for retrofitting, as well as an increase in the number of local authority funded retrofits. This positive acceleration in progress will need to be maintained.
