Reducing whole life carbon of buildings requires vertical co-ordination of efforts across levels of government, as well as horizontal collaboration across municipalities, ministries, and countries by pooling knowledge and resources for greater impact. Public-private-academic partnerships are also critical to leverage industry insights and technical knowledge from the private sector throughout the construction value chain as well as universities and research institutes.
Zero-Carbon Buildings in Cities

5. A multi-level approach to whole life carbon policies for buildings
Copy link to 5. A multi-level approach to whole life carbon policies for buildingsAbstract
Vertical co-ordination
Copy link to Vertical co-ordinationCities possess a range of strengths in advancing WLC policies for buildings. As discussed in Chapter 4, some city governments are leveraging their unique advantages to pioneer ambitious policies. However, effective policy implementation cannot be achieved without robust vertical co-ordination mechanisms. While city-level policies determine specific details of land use, building and planning regulations, WLC standards are usually subject to national policies. This highlights a two-way relationship between local and national actions on climate change, as action at local scale may enable or constrain what is possible at the national level and vice versa (OECD, 2010[1]). Therefore, vertical co-ordination is essential to overcome institutional constraints and narrow the policy gaps across levels of government that hamper the effectiveness of local actions.
The OECD Global Survey on Decarbonising Buildings in Cities and Regions (2022) has shown that 74% of surveyed cities and regions stated they do not receive enough support from the national government for decarbonising buildings (OECD, 2022[2]). In addition, the OECD Global Survey on Whole Life Carbon of Buildings (2024) has revealed that disparities between local and national WLC measures, alongside inconsistent methodologies, pose challenges to ambitious city-led initiatives, potentially expose subnational authorities to legal risks, and strain local government capacity.
Strengthen policy coherence across levels of government
The OECD Global Survey on Whole Life Carbon of Buildings (2024) shows that in most of the surveyed countries that have implemented WLC policies (Denmark, France, and Sweden), local governments are required to follow the national government’s policy decisions without a subnational breakdown of quantitative targets or the autonomy to adjust building policies or regulations locally.
In some cases, local governments are implementing stricter policies than the national government (i.e. Espoo and Helsinki, Finland) and the national government adopted local guidelines at the national level (i.e. Vancouver, Canada). In the absence of national policies, some local governments must follow the regional government’s WLC standards (i.e. Greater London, UK). The variability across different levels of government underscores the need for enhanced policy coherence to align mandates, policies, and sectoral objectives across government institutions, ensuring consistent and effective implementation of WLC policies for buildings.
Disparities in whole life carbon policies and methodologies hamper local implementation
While cities and regions often have competencies over local building regulations and building energy efficiency measures, discrepancies can arise between subnational and national policy frameworks, particularly when city governments are pursuing more ambitious objectives than those set at the national level. As revealed by responses to the OECD Global Survey on Whole Life Carbon of Buildings (2024), a city government actively pursuing ambitious climate goals in the building sector can encounter significant obstacles in implementing local building and urban planning regulations if the national government challenges the legality of such measures. Without a coherent policy framework that aligns national and local legislations, countries could miss out on the opportunity to leverage effective city-level initiatives for scalable national policies.
Cities that have already implemented WLC policies may lose motivation to advance their initiatives if national policies are scheduled for implementation several years later. This scenario underscores the need for flexibility in national policy frameworks to accommodate local contexts and recognise existing progress. Inflexible national policies risk discouraging cities from pursuing ambitious WLC standards. Concerns about future adjustments to align with national standards might deter cities from pioneering these standards, potentially hindering progress towards global sustainability goals.
Furthermore, the lack of a coherent, standardised WLC calculation methodology throughout a country increases the cost for capacity building at the local level. Given the technical nature of WLC assessment, city governments can face difficulties in implementing emission limit values and tender award criteria based on life-cycle emissions from buildings. Inconsistencies in WLC methodology and assessment tools across different cities and regions within a country further complicate policy development, leading to higher costs both for local governments and for companies to build technical capacity. In addition, disparities across WLC methods may complicate LCA application process, disrupt market performance, and even expose subnational governments to legal risks, including potential litigation challenges from construction companies, as indicated by survey responses.
Divergent challenges between national and local governments
The OECD Global Survey on Whole Life Carbon of Buildings (2024) reveals that national and local governments face distinct challenges regarding the implementation of WLC policies. While the top three challenges identified by survey respondents are the workload placed on developers, construction companies, and/or architects when calculating WLC, the lack of EPD data, and the affordability of WLC calculation, the capacity constraints of local authorities are often overlooked. Five out of seven local government respondents considered workload imposed on local authorities as a main challenge during policy implementation, while four out of seven local government respondents indicated the shortage of WLC experts within their local authority. By contrast, only one national government respondent saw these issues as main challenges (Figure 5.1). The disparity in perceived challenges underscores the need for effective vertical co-ordination mechanisms across levels of government that are essential for ensuring that local challenges can be effectively communicated to the national government. It is crucial for national governments to identify and understand capacity constraints (i.e. lack of technical expertise) at subnational level when developing national policies. Such understanding is key for formulating feasible policies that account for diverse contexts and support targeted capacity building initiatives tailored to local needs.
Figure 5.1. Main challenges at the policy implementation stage
Copy link to Figure 5.1. Main challenges at the policy implementation stage
Note: Question from the survey: “Main challenges at the policy implementation stage” The responding countries and cities could select all applicable options.
Source: OECD Global Survey on Whole Life Carbon of Buildings (2024)
In addition, the survey indicates a lack of vertical co-ordination mechanisms regarding WLC policies in the surveyed countries. Only 4 (Denmark, France, Germany, and Japan) out of 11 national governments that participated in the survey have platforms or mechanisms in place to discuss and co-ordinate with subnational governments on WLC policies for buildings. These platforms and mechanisms include regular meetings or committees, dedicated task forces or working groups, online collaboration platforms or forums, and joint projects or initiatives. Such mechanisms play a crucial role in facilitating communication and dialogue between national and subnational governments regarding buildings policies.
For instance, Germany’s annual Conference of Building Ministers convenes the ministers and senators responsible for urban development, construction, and housing from the country’s 16 states, with regular attendance by the Federal Minister for Housing, Urban Development and Building. This vertical co-ordination platform ensures the uniform application of building and construction regulations across the states and makes key policy decisions, such as determining the model building code, which forms the basis for state building codes (Bayerisches Staatsministerium für Wohnen, Bau und Verkehr, n.d.[3]). In 2024, the Conference passed a resolution on Germany’s Building Energy Act, emphasising the importance of considering life-cycle GHG emissions when implementing the EPBD (Bayerisches Staatsministerium für Wohnen, Bau und Verkehr, 2024[4]).
Scale up city-led initiatives for whole life carbon of buildings
Leveraging cities as testbeds can enable national governments to implement ambitious policies and identify scalable measures (OECD, 2024[5]). Successful city-led initiatives often generate valuable data and insights that can facilitate policy making at the national level. However, scaling up successful local WLC measures requires effective vertical co-ordination between national and subnational governments.
Canada’s federal government demonstrates the potential of harnessing local initiatives by adapting city-level guidelines on embodied carbon for nation-wide use. In 2024, the National Research Council Canada and the Construction Research Centre published the National Whole-Building Life-Cycle Assessment Practitioner’s Guide, which was adapted from the City of Vancouver’s Embodied Carbon Guidelines. The new National Guide complements the existing National Guidelines for Whole-Building Life-Cycle Assessment with additional guidance on embodied carbon assessments of new buildings and renovation of buildings and has been referenced by Canada Green Building Council (CAGBC)’s standard. It is also intended to support the compliance with the Standard on Embodied Carbon in Construction for major federal government construction projects. The federal government encourages local governments to adopt the same guides (National Research Council of Canada, 2024[6]).
Providing financial aid to subnational governments is another effective policy instrument to boost local efforts for WLC of buildings. Launched in January 2023 by Natural Resources Canada, the Codes Acceleration Fund is designed to assist subnational governments in adopting the highest feasible energy performance tiers within building codes to reduce GHG emissions and energy use (Natural Resources Canada, 2023[7]). The Code Acceleration Fund targets Canadian provinces, territories, municipalities, as well as Indigenous governments and communities that have the authority to adopt energy codes, addressing gaps in code compliance and enforcement at the local level (Natural Resources Canada, 2024[8]). For instance, the City of Vancouver received CAD 2.98 million in funding through the Codes Acceleration Fund for the adoption and implementation of Canada’s first embodied carbon code and existing building GHG emission regulations (Government of Canada, 2024[9]).
Support local governments through capacity building
Support from the national government is essential to build the capacity of local authorities, particularly municipalities and smaller cities, to implement WLC policies for buildings. The OECD Global Survey on Whole Life Carbon of Buildings (2024) shows that supervision and monitoring are the most prevalent capacity building support from national governments to local governments, in four out of seven respondent countries (Table 5.1).
Table 5.1. Countries providing capacity building support to local governments
Copy link to Table 5.1. Countries providing capacity building support to local governments
|
Provide education and capacity building for the local industry |
Conduct pilot projects to collect data and knowledge and leverage it for national policies |
Adjust national policies or regulations to local scale |
Ensure supervision and monitoring |
---|---|---|---|---|
Countries |
Israel |
Israel, Japan |
Brazil, Germany, Israel |
Denmark, France, Germany, Japan, Sweden* |
Note: Question from the survey: “National government support of capacity building and technical assistance to local governments for implementing WLC policies for buildings” The responding countries and cities could select all applicable options. (n=6)
Sweden*: The national government only supervises/monitors when a climate declaration is submitted for a new building.
Source: OECD Global Survey on Whole Life Carbon of Buildings (2024)
At the same time, supervision and monitoring alone are insufficient to unlock the potential of cities to implement WLC policies. National governments can provide support to local authorities through an array of policy instruments, including education and capacity building for the local industry, pilot projects, and adjustment of national policies or regulations to local scale. However, the survey reveals that only two out of seven city respondents (Espoo, Finland, and Vancouver, Canada) receive support for capacity building and technical assistance from the national government.
A wider range of support from the national level can bolster local governments’ capacity to implement WLC policies. The survey finds that in the case of Espoo (Finland), which has implemented more stringent policies than the national government, the national level provides the city with various types of support, including funding for training programmes and workshops, hosting annual conferences focused on WLC policy implementation, and distributing toolkits and guidelines tailored to local government needs. Furthermore, according to the survey, all three countries that have implemented WLC policies for buildings (Denmark, France, and Sweden) offer training programmes for local governments on WLC of buildings (Table 5.2). This shows that support from the national level is a key enabler for effective implementation of WLC policies across regions within a country.
Table 5.2. Types of training on WLC assessment of buildings for local governments
Copy link to Table 5.2. Types of training on WLC assessment of buildings for local governments
|
Direct |
Indirect |
Upon request |
Educational materials |
---|---|---|---|---|
Countries |
France |
Denmark, France |
France |
France, Germany, Sweden |
Note: Question from the survey: “Training/education for local governments regarding WLC assessment of buildings” The responding countries could select all applicable options. (n=6)
Source: OECD Survey on Whole Life Carbon of Buildings (2024)
Horizontal collaboration
Copy link to Horizontal collaborationHorizontal collaboration across ministries and government agencies is key to overcome potential discrepancies regarding WLC policies for buildings. According to the OECD Global Survey on Buildings and Climate (2024), 93% of respondent countries have at least three ministries involved in decarbonising buildings (OECD, 2024[5]). The fragmentation of buildings policy making and implementation responsibilities across different branches within a subnational government unit also hampers the effectiveness of WLC policies for buildings at the local level. There is a critical need for horizontal co-ordination among ministries and government agencies at the national, as well as at the subnational level to break siloes and develop coherent strategies. The OECD Global Survey on Whole Life Carbon of Buildings (2024) shows that subnational governments can create political momentum to influence national policy through inter-municipal collaboration, while inter-ministerial collaboration can facilitate an effective dialogue across the government agencies and greater access to information, and countries can benefit from inter-governmental collaboration by sharing knowledge and resources.
Inter-municipal collaboration
The OECD Global Survey on Whole Life Carbon of Buildings (2024) shows that six out of seven surveyed cities (Helsinki, Greater London, Malmö, Oslo, Tokyo, and Vancouver) take part in horizontal collaboration mechanisms involving subnational governments.
Sweden’s “Climate Municipalities” (Klimatkommunerna) show how inter-municipal collaboration can leverage synergies at the local level to promote WLC policies for buildings. This association brings together 54 subnational governments for regular meetings, engaging them in policy dialogues with the national government, and facilitating knowledge-sharing on local climate action (Klimatkommunerna, 2024[10]). The association also leverages the political momentum at the local level to advocate for emission limit values that are stricter than those set forth by the national government (Klimatkommunerna, 2024[11]) (Box 5.1).
Box 5.1. Sweden’s “Climate Municipalities”
Copy link to Box 5.1. Sweden’s “Climate Municipalities”Sweden’s “Climate Municipalities” (Klimatkommunerna) is an association of cities and regions dedicated to accelerating Sweden’s climate transition. Its primary goal is to support municipalities and regions to reduce carbon emissions, exchange experiences, influence national policymaking, and showcase successful climate actions to inspire other municipalities and regions across Sweden. It brings together 52 municipalities and two counties for regular networking meetings to foster collaboration and knowledge sharing among members. The association’s pillars of work include reducing carbon emissions from the construction and real estate sector and promoting sustainable building practices throughout Sweden.
The association exemplifies how effective horizontal co-ordination across subnational governments can leverage synergies at the local level to promote WLC policies for buildings. The Climate Municipalities’ collaborative efforts include:
Dialogue with national government: It engages in active discussions with various national-level agencies, including Fossil Free Sweden, the Swedish Environmental Protection Agency, and the Swedish Climate Policy Council. This engagement helps shape national policies and ensures municipal perspectives are represented.
Disseminating best practices: It highlights inspiring examples of effective local climate actions and success factors. The association also provides local politicians and leaders with tips and guide for achieving climate goals at the municipal level. The “Climate knowledge for local leaders” is a set of self-study training material, which provides basic knowledge about what the climate transition means and concrete tips on measures and working methods.
Gathering expertise: It collects members' expertise and experiences to identify gaps in national climate policy and suggest improvements. Member municipalities and regions present their views regularly through articles and consultation processes mediated by the association. A climate situation report is published every year to evaluate the member municipalities’ measures and emission levels.
Promoting stricter emission limit values in new buildings and renovations
The Climate Municipalities advocates for stricter emission limit values in new buildings and renovations compared to the proposal by the Swedish National Board of Housing, Building and Planning. The association supports setting limit values that are lower than those proposed by the national agency (Boverket) and tightening them over time. The rationale is that many actors in the construction industry find the current requirements too lenient, as most of the existing building stock is already below the limit values proposed for 2025. In addition, the association calls for measuring and reporting emissions through climate declarations and limit values for new buildings at the construction phase. The association also promotes the application of EPDs of recycled building materials to indicate the climate impact of a reused building product throughout the circular material flow.
Source: Klimatkommunerna, https://klimatkommunerna.se/
Inter-ministerial collaboration
The OECD Global Survey on Whole Life Carbon of Buildings (2024) showed that the number of ministries and agencies at the national level involved in WLC of buildings ranges from three to seven (Table 5.3). Considering this large number of entities involved in the decarbonisation agenda, horizontal collaboration across ministries and agencies within the government structure is crucial in delineating a coherent long-term vision and mobilising resources to assist various government agencies. Countries can deploy a range of mechanisms to strengthen horizontal collaboration across ministries, such as inter-ministerial platforms. For instance, Japan has established an Inter-Ministerial Liaison Meeting for Building Life-cycle carbon Reduction to develop WLC assessment roadmaps involving related ministries and agencies, with the Cabinet Secretariat and the Ministry of Land, Infrastructure, Transport and Tourism serving as a joint secretariat (Box 5.2). This demonstrates a robust political ambition to break down ministerial siloes and integrate existing work streams distributed across government agencies at the national level. The Inter-Ministerial Liaison Meeting also facilitates collaboration with other stakeholder engagement platforms, such as the Zero Carbon Buildings Promotion Council and the EPD Promotion Council.
Table 5.3. Ministries and agencies involved in whole life carbon related regulations and standards
Copy link to Table 5.3. Ministries and agencies involved in whole life carbon related regulations and standards
Denmark |
Japan |
Sweden |
|
---|---|---|---|
Number of ministries/agencies working on whole life carbon of buildings |
6 |
7 |
4 |
Building code |
The Danish Authority of Social Services and Housing |
Ministry of Land, Infrastructure, Transport and Tourism |
Ministry of Infrastructure, Boverket |
Building permit |
Municipalities |
Building officials; Designated confirmation and inspection bodies |
Municipalities |
Climate declaration |
The Danish Authority of Social Services and Housing |
Ministry of Environment |
Ministry of Infrastructure, Boverket |
Energy efficiency standards |
The Danish Authority of Social Services and Housing, the Danish Energy Agency |
Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Economy, Trade and Industry |
Minimum energy efficiency standards: Ministry of Rural Affairs and Infrastructure; Boverket. Voluntary standards: Ministry of Climate and Enterprise, Energimyndigheten |
WLC standards |
The Danish Authority of Social Services and Housing |
Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Economy, Trade and Industry |
Ministry of Infrastructure, Ministry of Climate and Enterprise, Boverket |
EPD related |
Ministry of Economy, Trade and Industry |
Boverket |
|
Innovation of low carbon materials |
The Energy Technology Development and Demonstration Programme (EUDP), The Danish Eco-Innovation Programme (MUDP) |
Ministry of Economy, Trade and Industry |
|
Database |
The Danish Authority of Social Services and Housing |
Ministry of Land, Infrastructure, Transport and Tourism |
Boverket |
Assessment tools |
The Danish Authority of Social Services and Housing, Department of the Built Environment – Aalborg university |
Ministry of Land, Infrastructure, Transport and Tourism |
|
Training and education |
VCBK, Videnscenter |
Ministry of Land, Infrastructure, Transport and Tourism |
Boverket |
Capacity buildings for SMEs |
Ministry of Land, Infrastructure, Transport and Tourism |
Boverket |
|
Circularity of building |
Danish Ministry of Environment and Gender Equality, The Danish Authority of Social Services and Housing |
Ministry of Infrastructure, Boverket |
Note: Ministries/agencies that are in italics are contributing to work on the given topics, but they are not the leading institution.
Source: The OECD Global Survey on Whole Life Carbon of Buildings
Box 5.2. Japan’s Inter-Ministerial Liaison Meeting
Copy link to Box 5.2. Japan’s Inter-Ministerial Liaison MeetingIn November 2024, Japan established an Inter-Ministerial Liaison Meeting for Building Life-cycle Carbon Reduction to foster collaboration across related ministries and agencies, including:
Cabinet Secretariat
Ministry of Land, Infrastructure, Transport and Tourism (MLIT)
Ministry of Economy, Trade and Industry (METI)
Ministry of the Environment (MOE)
Ministry of Education, Culture, Sports, Science and Technology (MEXT)
Financial Services Agency (FSA)
Forestry Agency
The Inter-Ministerial Liaison Meeting is co-ordinated at a high-level with the Cabinet Secretariat and MLIT as its secretariat, demonstrating the political will of the Japanese government to promote WLC assessment. The Inter-Ministerial Liaison Meeting is tasked with the development of coherent national roadmaps for introducing whole LCA and the development of policies for environmental product declaration. It also collaborates with other stakeholder engagement platforms. For instance, the Inter-Ministerial Liaison Meeting discusses issues raised by the Zero Carbon Buildings Promotion Council, composed of academics, major construction companies, major real estate companies, as well as design offices and financial institutions. It also helps building material and equipment companies as well as industry associations to join the EPD Promotion Council, which provides capacity building opportunities, disseminates best practices, and assists companies to develop EPDs.
Source: Cabinet Secretariat of Japan, https://www.cas.go.jp/jp/seisaku/building_lifecycle/index.html
Inter-governmental collaboration
International collaboration offers valuable opportunities for knowledge exchange and regional harmonisation of WLC measures for buildings. On the one hand, national governments can leverage the experience and resources of countries that share a common political ambition through structured dialogue and information sharing to develop WLC calculation methodologies, databases, and digital tools. On the other hand, horizontal collaboration mechanisms, such as inter-governmental platforms, inter-ministerial fora, and joint research programmes, create political momentum and commitments for harmonising legislation, methodologies, and policies on the built environment across countries.
Nordic Sustainable Construction is an example of horizontal collaboration across Nordic countries (Box 5.3). This collaborative programme, under the Nordic Council of Ministers, works towards the harmonisation of LCA policies, methodologies, limit values, and BIM-based LCA across Nordic countries, supporting shared goals under the Nordic Vision 2030 (Nordic Sustainable Construction, 2024[12]). The 2023 Nordic Ministerial Declaration further strengthens this commitment to low-carbon construction by pledging to align policies, tools, and data across Nordic countries (Nordic Sustainable Construction, 2023[13]). Effective inter-governmental collaboration can leverage the collective knowledge and experience in implementing methods and legislation for WLC of buildings, while identifying opportunities for more efficient division of work and shared pathways for future development (Nordic Sustainable Construction, 2023[14]).
By addressing discrepancies and similarities across countries, horizontal collaboration mechanisms across countries pave the way for harmonising WLC policies across countries, aligning limit values, and enhancing consistency of LCA. This allows the construction industry to evaluate limit values and LCA calculation across countries efficiently, accelerating the market transition towards a low carbon-built environment.
Box 5.3. Nordic Sustainable Construction
Copy link to Box 5.3. Nordic Sustainable ConstructionNordic Sustainable Construction is a collaborative programme funded by Nordic Innovation, an organisation under the Nordic Council of Ministers, focusing on improving the sustainability of buildings and construction processes across the Nordic countries. The programme supports Nordic countries in implementing the Nordic Vision 2030, establishing the Nordics as the world’s leading region in sustainable and competitive constriction with minimised environmental and climate impact.
Nordic Ministerial Declaration on Commitment to Low Carbon Construction
In September 2023, the Nordic Ministers of Housing and Construction committed to a common effort on reducing climate impact from construction through a declaration on low carbon construction. This ministerial declaration aims to reduce GHG emissions from buildings, with a focus on building materials, waste, construction sites, the existing building stock, and construction processes. Another key commitment is the harmonisation of policies, legislations, tools, data, and assessment methods for achieving carbon neutrality in the built environment across the Nordic countries.
Work package on LCA in the Nordics
Nordic Sustainable Construction promotes the harmonisation of LCA assessment across the Nordic countries through one of five work packages. Key milestones include developing a roadmap for LCA harmonisation, presented at the Nordic Climate Forum for Construction 2023. Nordic Sustainable Construction published reports and hosted webinars to disseminate research findings on topics such as the creation and maintenance of LCA databases in the Nordics, BIM-based LCA, a common Nordic approach to GWP data and life-cycle scenarios, and harmonised CO2eq limit values for buildings. A BIM-to-LCA tool was developed, accompanied by YouTube training videos on LCA digitalisation.
Additionally, in 2023, Nordic Sustainable Construction launched the “Roadmap: Harmonising Nordic Building Regulations concerning Climate Emissions”, which lays out three strategic aims:
Harmonisation and implementation of climate declarations: Nordic countries collaborate in future methodological development regarding the scope and level of detail based on the European LCA standards, translatability of results and methods across countries, limit values, digitalised and BIM-based LCA, and the reporting on the decarbonisation of the Nordic building stock. This will also be supported by pooling resources for capacity building in the markets and stakeholder dialogue.
European collaboration: Collaboration across the Nordic countries includes initiatives such as the mapping of and contribution to EU climate policies, regulations, methods, and initiatives (i.e. EPBD, CPR, WLC, EU Sustainable Finance Taxonomy Regulation, CBAM, Ecodesign Directive, and EU Green Public Procurement Criteria).
Strengthened authority co-operation: The continuation and strengthening of the existing Nordic inter-governmental network is key to the accumulation of knowledge and sharing of experience in implementing methods and legislation. This also includes enhancing collaboration with researchers and creating a common digital co-working platform.
Source: Nordic Sustainable Construction, https://www.nordicsustainableconstruction.com/work-packages; Nordic Sustainable Construction (2023), “Nordic Ministerial Declaration on Commitment to Low Carbon Construction”, https://www.nordicsustainableconstruction.com/knowledge/2023/november/nordic-ministerial-declaration-on-commitment-to-low-carbon-construction; Nordic Sustainable Construction (2023), “Roadmap: Harmonising Nordic Building Regulations concerning Climate Emissions”, https://www.nordicsustainableconstruction.com/knowledge/2023/september/roadmap-for-harmonisation; Nordic Sustainable Construction (2023), “Roadmap: Harmonising Nordic Building Regulations concerning Climate Emissions”, https://www.nordicsustainableconstruction.com/Media/638302229397775948/Roadmap%20for%20harmonising%20Nordic%20Building%20Regulations%20concerning%20Climate%20Emissions.pdf
Public-private-academic partnership
Copy link to Public-private-academic partnershipEngaging the private sector and research institutes is crucial in creating an enabling environment for WLC policies. Given the varying technical capacity and resources of different levels of government, support from the private sector and the academia is an important success factor in effective WLC policy development. Public-private-academic partnerships play an instrumental role in developing digital tools and methodologies for WLC calculation, while providing resources to train and upskill workers in the construction industry. In addition, these partnerships can help clarify roles and responsibilities for various stakeholders.
Public-private-academic partnerships can harness the potential of multi-stakeholder knowledge co-creation and generate impact on innovation for sustainable building practices. According to the OECD (2013[15]), public-private partnerships (PPPs) are long-term contractual agreements between the government and a private partner whereby the latter typically finances and delivers public services using a capital asset (e.g. transport or energy infrastructure, hospital or school buildings). The private party may be tasked with the design, construction, financing, operation, management, and delivery of the service for a pre-determined period of time, receiving its compensation from fixed unitary payments or tolls charged to users. Public-private partnerships blend the regulatory guidance and policy support from the public sector with the innovation, resources, and execution capabilities of the private sector (OECD, 2024[5]). Governments expect private sector engagement to bolster government capacity to achieve its objectives by mobilising the resources (money, technology, and knowledge) of the private sector (OECD, 2018[16]). Furthermore, the OECD finds that public support for science-industry collaboration is shifting towards a more interactive, long-term model of knowledge co-creation that involves stakeholders from industry, civil society, research and government (OECD, 2019[17]).
The complex nature of building policies underscores the relevance of multi-stakeholder partnerships. Real estate developers, investors, and financial institutions are crucial in addressing WLC of buildings, given that the majority of the building stock is owned by the private sector and the construction of net-zero carbon buildings relies on private funds. Besides, universities, research institutes, and the scientific community contribute to the development of calculation methodologies for carbon emission of buildings, while conducting studies on the environmental, socio-economic, and technical practices for low-carbon buildings. Stakeholders such as manufacturers and suppliers play an essential role in developing and producing low-carbon building materials. By contrast, professionals such as architects, contractors, designers, engineers, green building and energy consultants, and procurement professionals are responsible for planning and implementing the WLC approach in the construction process. They do so by providing building specifications, integrating low-carbon and energy-efficient design elements, ensuring quality control and effective logistics, estimating LCC, and conducting site investigations and analyses (Falana, Osei-Kyei and Tam, 2024[18]). Public-private-academic partnerships create formal channels for knowledge co-creation by leveraging private sector’s technical expertise and research institutes’ capacity to develop WLC calculation methodologies.
However, the wide range of stakeholders with varying levels of engagement throughout the long span of the building life-cycle implies potential conflicts and confusion due to competing interests (Falana, Osei-Kyei and Tam, 2024[18]). This complex policy landscape highlights the need for robust public-private-academic partnerships to gather different stakeholders and facilitate effective collaboration across various sectors, clarifying roles and responsibilities in developing and implementing WLC policies.
The OECD Global Survey on Whole Life Carbon of Buildings (2024) reveals that national and city governments consider the development of methodologies and databases, training and capacity building, as well as the development of assessment tools as the three most important aspects of public-private-academic partnerships (Figure 5.2).
Figure 5.2. Key elements of public-private-academic partnerships for whole life carbon of buildings
Copy link to Figure 5.2. Key elements of public-private-academic partnerships for whole life carbon of buildings
Note: Question from the survey: “Tasks where the public-private-academia partnership is important” The responding countries and cities could select all applicable options.
Source: OECD Survey on Whole Life Carbon of Buildings (2024)
The evidence drawn from the survey also shows that private sector engagement cannot be overlooked when governments pursue ambitious WLC policies. Premature implementation of WLC policies without a without a clearly defined and consolidated methodology will send conflicting signals to the private sector and risks distorting market performance. In contrast, governments can benefit from a proactive buildings and construction sector to pioneer successful policies. For instance, Vancouver (Canada) indicated in the survey that the backing of local and international industry leaders and experts is one of the reasons the city was able to take action ahead of the federal government in Canada, as these stakeholders provided critical insights informing the city’s WLC policies for buildings. The city also emphasised the importance of public-private-academic partnerships for advancing research into innovative low-embodied carbon materials and solutions.
Develop methodologies, databases, and assessment tools
The OECD Global Survey on Whole Life Carbon of Buildings (2024) provides evidence on how joint efforts involving private sector actors can advance WLC policies instruments. Indeed, including diverse actors throughout the construction value chain, such as construction companies, architectural firms, and building material providers, as well as research institutes helps enhance an enabling environment for WLC policies. The survey shows that governments are mobilising resources from the private sector to develop WLC assessment tools, methodologies, and database (Figure 5.3). This approach combines the regulatory guidance and policy support from the government with the innovative and technical capabilities of various stakeholders.
Figure 5.3. Types of policy instruments based on private sector initiatives
Copy link to Figure 5.3. Types of policy instruments based on private sector initiatives
Note: Question from the survey: “Policy instruments based on the initiatives that have been fully developed by the private sector” The responding countries and cities could select all applicable options.
Source: OECD Survey on Whole Life Carbon of Buildings (2024)
For instance, Brazil’s Information System for Environmental Performance in Construction (SIDAC) shows that partnerships involving public agencies, private companies, and researchers are key to develop a national database on EPDs and LCA (Box 5.4). SIDAC’s development is co-ordinated by the Brazilian Council for Sustainable Construction (CBCS), a nationwide civil society organisation comprising academia, construction companies, manufacturers, government representatives, and other stakeholders in the construction industry. Major public utilities companies, associations of construction companies, and research institutions play an important role in the development process to refine methodologies, gather stakeholder feedback on prototypes, and develop assessment tools, such as the CECarbon (SIDAC, 2024[19]; Fernanda Belizario-Silva, 2023[20]; CECarbon, 2020[21]; SIDAC, 2024[22]).
Box 5.4. Brazil’s Information System for Environmental Performance in Construction (SIDAC)
Copy link to Box 5.4. Brazil’s Information System for Environmental Performance in Construction (SIDAC)Brazil’s Information System for Environmental Performance in Construction (SIDAC) shows that public-private-academic partnership is one of the success factors for developing a national database on EPD and LCA. SIDAC is an outcome of the Strategic Partnerships for the Implementation of the Paris Agreement (SPIPA) programme, co-ordinated by the Brazilian Ministry of Mines and Energy (MME), funded by the EU's Partnership Instrument and the German Ministry of Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and implemented by the German International Cooperation Agency (GIZ).
The development of SIDAC exemplifies the merits of involving public enterprises, the private sector, and industry experts in refining the methodology, collecting data, and gathering feedback on system prototypes. The administrative co-ordination of SIDAC’s development is undertaken by the Brazilian Council for Sustainable Construction (CBCS), a nationwide civil society organisation comprising academia, construction companies, manufacturers, government representatives, and other stakeholders in the construction industry. Notably, the development process was supported by collaboration among various public and private stakeholders, including the Brazilian Ministry of Regional Development (MDR), the major public electric utilities company Eletrobras, the national energy efficiency programme Procel, the state-owned Energy Research Office (EPE), and associations of material manufacturers, designers, life-cycle assessment experts, and local software companies. Prototypes of the system were presented during meetings with stakeholders for feedback and suggestions. The system methodology was examined by a scientific committee composed of researchers specialised in life-cycle assessment from nine universities, resulting in two methodological revisions. Furthermore, a technical committee was established within the governance structure to ensure the technical and methodological integrity of the system, alongside reviewers and specialists in life-cycle assessment of buildings.
In addition, Brazil taps into the resources and executive capabilities of the private sector in developing assessment tools for carbon emissions in the construction of new buildings. SindusCon-SP, a major association of companies in the construction industry in the State of São Paulo, launched the CECarbon tool in 2021 for calculating GHG emissions and energy consumption of each of the construction stages. CECarbon results from a partnership between SindusCon-SP, GIZ, and the National Housing Secretariat of the Ministry of Regional Development.
Source: Sidac, https://sidac.org.br/quem_somos/desenvolvimento; Belizario-Silva, et al. (2023), “The Sidac system: Streamlining the assessment of the embodied energy and CO2 of Brazilian construction products” https://doi.org/10.1016/j.jclepro.2023.138461; Sidac, https://sidac.org.br/quem_somos/governanca; CECarbon, “Sobre a CECarbon”, https://cecarbon.com.br/about
Japan's public-private-academic partnership demonstrates effective collaboration in developing WLC calculation tools (Box 5.5. Japan’s Zero Carbon Building Promotion Committee. The Institute for Built Environment and Carbon Neutral for SDGs (IBECs) serves as a platform for research and technological development related to housing, architecture, and cities, including the built environment and energy conservation (IBECs, 2024[23]). The Zero Carbon Building Promotion Committee, established with the IBECs in 2022, engages a full range of stakeholders including local governments, universities, four associations of construction, architecture, and real estate companies, and several ministries (IBECs, 2024[24]). The Committee launched the J-CAT, a Japanese WLC assessment tool for calculating GHG emissions throughout the entire building life-cycle, in 2024 (IBECs, 2024[25]; Ministry of Land, Infrastructure, Transport and Tourism, 2024[26]).
Box 5.5. Japan’s Zero Carbon Building Promotion Committee
Copy link to Box 5.5. Japan’s Zero Carbon Building Promotion CommitteeJapan leverages public-private-academic partnership to develop WLC calculation tools. The Institute for Built Environment and Carbon Neutral for SDGs (IBECs) serves as a platform for research, technological development and outreach activities related to housing, architecture and cities, including the built environment and energy conservation. The Zero Carbon Building Promotion Committee was established in December 2022, with IBECs and the Japan Sustainable Building Consortium (JSBC) serving as a joint secretariat. The Committee aims to develop WLC evaluation methods, study issues related to databases on materials and equipment, and collect information from overseas, promoting zero-carbon buildings through collaboration between industry, government, and academia.
The Zero Carbon Building Promotion Committee comprises representatives from two local governments, eight universities, a federation of construction contractors, an association of architectural firms, an association of real estate companies, a national research and development agency, a public interest incorporated foundation, a leading architectural agency, and an investment consultancy, with government officials from the Cabinet Secretariat and four Ministries as observers. One of the main outputs of the Zero Carbon Buildings Promotion Committee is the J-CAT launched in 2024. J-CAT offers a free software and a manual to calculate GHG emissions throughout the entire building life-cycle, based on the revised LCA guidelines defined by the Architectural Institute of Japan.
Source: Institute for Built Environment and Carbon Neutral for SDGs, https://www.ibecs.or.jp/english/index.html; Institute for Built Environment and Carbon Neutral for SDGs, “Zero Carbon Buildings (LCCO2 Net Zero) Promotion Council”, https://www.ibecs.or.jp/zero-carbon_building/; Institute for Built Environment and Carbon Neutral for SDGs, https://www.ibecs.or.jp/zero-carbon_building/files/ZeroCarbonBuildingPC_member240701.pdf; Ministry of Land, Infrastructure, Transport and Tourism of Japan, https://www.mlit.go.jp/report/press/house04_hh_001226.html
Provide training and education to the construction industry
The OECD Global Survey on Whole Life Carbon of Buildings (2024) reveals that only two national and one local government respondents have introduced WLC training programmes based on public-private partnership. However, these examples demonstrate the potential of public-private-academic partnerships in providing training programmes on WLC. As labour shortages and upskilling in the construction sector become more pressing issues, governments can tap into the sector’s resources to address skill gaps and ensure long-term competitiveness of the construction industry.
For instance, the Nordic Sustainable Construction offers an example of effective public-private-academic collaboration, leveraging expertise from Nordic countries’ sustainability consulting firms and Denmark’s national Knowledge Centre for Crafts and Sustainability to develop educational materials on sustainable building practices. Skills4Reuse is an online platform that provides comprehensive introductory courses on the reuse and recycling of wood and brick (Skills4Reuse, n.d.[27]). This initiative contributes to a collective effort in the Nordic region towards enhancing the circularity of building materials, as well as upskilling current and future workers in sustainable building practices.
The Singapore Green Building Council (SGBC) Digital Academy provides built environment and sustainability professionals and practitioners with on-demand access to over 30 webinars on green buildings. The online platform offers webinars on whole life carbon (Singapore Green Building Council, n.d.[28]). The SGBC is a non-profit industry-led organisation that facilitates public-private partnerships and fosters innovative industry solutions across the entire building and construction value chain (Singapore Green Building Council, n.d.[29]). Similarly, the Israeli Green Building Council (ILGBC) provides professional courses on LCA and the revision of the Green Building Standard in collaboration with the country's Ministry of Environmental Protection (Israeli Green Building Council, 2024[30]). The ILGBC serves as a non-profit platform for public-private-academic partnership by bringing together more than 270 member organisations from the construction industry, local and central governments, professional community, academia, and NGOs (Israeli Green Building Council, n.d.[31]).Clarify roles and responsibilities through multi-stakeholder engagement.
The vast number of stakeholders involved in the entire life-cycle of buildings creates a complex policy landscape that requires clearly defined roles and responsibilities for various stakeholders. Some countries have adopted a multi-stakeholder approach to allow for the identification and clarification of roles and responsibilities in setting life-cycle assessment methodologies.
The Netherlands has developed a public-private partnership model to delineate the roles of various stakeholders. The Nationale Milieudatabase (NMD) is an independent organisation managing the Environmental Performance Assessment Method for Construction Works and its database (Nationale Milieudatabase, 2024[32]) (Box 5.6. The Netherlands’ National Environmental Database). The NMD is overseen by the Netherlands Policy Committee on Environmental Performance (BMNL), which brings together 18 stakeholder parties including public and private clients, data suppliers, and users. In parallel, there is a Technical Committee engaging experts from the construction sector, allowing them to share knowledge and industry perspectives (Nationale Milieudatabase, 2024[33]). By collaborating with the industry, this governance structure clarifies roles and responsibilities in setting methodologies on LCA that are separate from policy making and political decisions on regulations. The BMNL’s governance framework also safeguards the independence of the NMD, ensuring that it remains impartial and resilient to commercial or political influence while meeting the evolving energy and environmental standards.
Box 5.6. The Netherlands’ National Environmental Database
Copy link to Box 5.6. The Netherlands’ National Environmental DatabaseThe Nationale Milieudatabase (NMD) is an independent non-profit organisation in the Netherlands that manages and maintains the Environmental Performance Assessment Method for Construction Works (Assessment Method) as well as the construction carbon database. The NMD also validates privately developed calculation tools based on the assessment method and EPDs for building products for the database.
The NMD exemplifies a robust public-private partnership model that convenes a wide range of stakeholders to assess energy performance of buildings or civil engineering structures in the construction sector. The NMD is overseen by the Netherlands Policy Committee on Environmental performance (BMNL), which brings together 18 stakeholder parties including public and private clients, data suppliers from the industry, and data users – including architects, engineers, and software providers. Representing stakeholders’ interests, the BMNL decides on rates, the annual plan, and licences. The BMNL advises on the Assessment Method and the database following consultation with the relevant Ministry and the advisory committees. A key aspect of this collaboration is the Technical Committee (TIC), which comprises 8-10 sector experts who bring technical knowledge and industry perspectives to the table. The TIC has a balanced membership of 60% LCA experts and 40% construction sector representatives. BMNL and TIC members are appointed for three-year terms.
The BMNL’s collaborative governance structure enables stakeholders to share knowledge and align on sustainability goals, benefiting from exchanges of insights and experience. Through establishing an independent foundation, the Netherlands has developed a public-private partnership model that does not only raise environmental standards in buildings, but also empowers stakeholders from the construction industry by recognising and leveraging their technical expertise. More importantly, this structure clarifies roles and responsibilities in setting methodologies on LCA that are separate from policy making and political decisions on regulations. The BMNL’s governance framework also safeguards the independence of the NMD, ensuring that it remains immune to commercial or political influence while meeting the evolving energy and environmental standards.
Source: Nationale Milieudatabase, “Organisation NMD” https://milieudatabase.nl/en/about-us/organisation/; Nationale Milieudatabase, “An introduction to the NMD”, https://milieudatabase.nl/en/an-introduction-to-the-nmd/
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