Achieving Energy Efficiency in Buildings

Overview & Synopsis

Buildings in Pakistan account for over 43.7 percent of the country’s total energy use and represent a significant opportunity for energy efficiency and conservation. The high energy consumption in buildings is primarily attributed to Pakistan’s predominantly sunny and hot climate, which drives high demand for cooling for most of the year—and the widespread reliance on inefficient gas and firewood appliances for heating and cooking. Driven by rapid urbanization, population growth, and increasing construction demand, energy use in buildings and greenhouse gas (GHG) emissions associated with buildings are projected to grow considerably. The buildings sector drove higher electricity demand in 2024, growing four times faster than in 2023. Global electricity consumption in buildings increased by more than 600 terawatt hours (5 percent) in 2024. Globally, buildings account for 37 percent of energy and process-related carbon dioxide (CO2) emissions. In addition to the high overall levels of energy consumption in buildings, seasonal variation in electricity and gas load patterns also pose a problem. For instance, electricity peak demand in summer rises briefly to over 25,000 megawatts (MW) from a baseload of only 8,500 MW. The benefits of energy efficiency in buildings however extend beyond reduced energy consumption or peak demand management. Energy-efficient buildings provide a healthier and more supportive living and work environment by improving indoor air quality and enhancing overall occupant comfort. In addition, demand for new construction materials and techniques in the building industry generates livelihood opportunities. Key findings from the World Bank’s comprehensive assessment on Buildings Energy Efficiency in Pakistan, conducted in 2022 and 2023, are presented below; details on the assessment’s approach, data collection, and methodology are provided in annex 1.