UN Reports First Positive Sustainability Progress Since2020: Experts Say Green Certificates Not Enough
With expertise from Donatas Karčiauskas, CEO of Exergio
While global emissions from buildings have stopped rising for the first time since 2020, experts warn that relying on certifications instead of smart energy tech risks stalling progress.
Earlier this year, UN Environment Programme and the Global Alliance for Buildings and Construction released a report titled “Not Just Another Brick in The Wall: The Solutions Exist.” It gives hope to reach decarbonization goals as for the first time since 2020, emissions from the building sector have stopped rising. However, energy experts caution that while progress is tangible, the building sector is not using its full decarbonization potential – smart energy solutions exist, but remain underutilized.
“It’s encouraging to see emissions plateau, but this isn’t enough,” says Donatas Karčiauskas, CEO of Exergio, a company that implements AI-based energy efficiency tools in commercial buildings. “Novel AI-based tools that optimize energy are available, but the real issue is adoption. We have to ask ourselves if we are truly moving towards net-zero in buildings, or are we just issuing more certificates that supposedly show that the building is energy efficient?”
According to the UN report, green building certifications are gaining momentum. A 20% increase in newly certified commercial buildings in Organisation for Economic Co-operation and Development (OECD) countries is noted, and global certification programs like EDGE, BREEAM, and LEED continue to expand, together with regional green labels. (There are 38 OECD countries that work closely with policy makers, stakeholders, and citizens to establish evidence-based international standards and to find solutions to social, economic and environmental challenges.)
Karčiauskas states that there is a catch with green certifications.
“They don’t always reflect actual greenhouse gas reductions. Certifications focus on how a building is designed, but not how it performs in the long run. Furthermore, if companies rely too much on carbon offsets instead of reducing actual emissions, pollution still happens where the business operates. We need to integrate smart solutions on-site to retain the progress,” he said. The report confirms that many technologies remain underutilized and only a small percentage of builders and countries have adopted them.
Automated controls or digital tracking tools are far from mainstream, with only a few countries incorporating them so far. This shows there’s still a lot of untapped potential when it comes to making buildings truly future-ready.
“Too many buildings receive ‘green’ status based on initial design rather than real-world performance,” explains Karčiauskas. “What matters is how efficiently a building operates over time. Real-time energy tracking and AI-driven optimization are the only ways to ensure that a building is contributing to emission reductions, and doesn’t just create a facade of sustainability.” Certain smart energy technologies are on the rise. Tools like demand response systems and energy management software help optimize consumption and lower peak demand, and report claims that digital tools are becoming popular too – 40% of large construction firms are now using building information modelling to enhance energy efficiency during the design phase.
Despite that, the transition has some challenges. Heat pump installations, for instance, declined by 3% compared to previous years, because both businesses and governments started searching for other heating alternatives.
One of the critical levers for achieving energy efficiency in new buildings is stricter building energy codes, as the report notes. They would better reflect real energy operations in buildings when buildings start operating, not before that.
To make that happen, it’s important to include smart features that allow buildings to interact with the grid more effectively. Updated codes should also cover minimum standards for insulation, system efficiency, and overall energy performance.
However, according to Karčiauskas, setting the right standards is one thing and meeting them in the real world is another. That’s where implementation through technology becomes essential. Exergio proved that AI can help bring both new and existing buildings to the standards of sustainability targets. The company showcased that wireless CO2 sensors can also optimize indoor air quality, and enable efficient airflow and temperature adjustments.
For Vilnius shopping mall “Ozas” in Lithuania, these upgrades helped to reduce electricity consumption by 29%, and in heat usage for HVAC systems by 36%. It translated to around €1 million in cost savings.
“The solution for unsustainable buildings is real-time optimization. AI-based tools can make those buildings efficient by continuously analyzing data from sensors, occupancy levels, and weather forecasts to adjust heating, cooling, and lighting systems automatically. These systems can detect anomalies like equipment inefficiencies or energy leaks, and quickly intervene to prevent waste. Moving from static certifications and embracing adaptive energy management can accelerate progress toward net-zero,” concluded Karčiauskas.
The building sector remains top contributor to the climate crisis as it consumes 30% of global energy and accounts for 26% of global CO2 emissions, according to the International Energy Agency.
Donatas Karčiauskas is the CEO of Exergio, a platform turning building data into energy savings with the help of AI. With over 15 years of experience in digitalization, he has led M2M and IoT initiatives at Tele2 and advanced building monitoring systems at Benco. At Exergio, Donatas is driving the shift to smarter, more efficient, and future-ready buildings. He believes AI and robotics are key to scalable, cost-effective real estate. From predictive maintenance to optimization, making buildings smart and intelligent. His mission is to redefine building performance through data-driven automation.
Exergio, is a company born from extensive experience in building maintenance. Recognizing the inadequacies of conventional approaches, the firm introduces an AI-driven system that analyzes real-time building data, enabling informed decision-making and yielding up to 20% in energy savings. This innovative solution goes beyond static systems, ensuring adaptive building responses to environmental factors, thus optimizing energy consumption without compromising comfort or operational efficiency. The company also has ongoing projects in Poland, the United Kingdom, Ireland, the Czech Republic, Hungary, Oman, Sweden, and Lithuania and is planning to expand to Germany and France.