Operational Efficiency

Operational Efficiency

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Efficiency First: Reducing the Footprint of Building Operations

Keeping our buildings running comes with a heavy climate cost. Heating, cooling, lighting, and appliances account for nearly a third of global energy use and more than a fifth of greenhouse gas emissions — and demand is only rising as cities expand and billions of people buy their first air conditioners, refrigerators, and electronics. Despite decades of progress on efficiency, air conditioning is set to triple again by mid-century. Advances to reduce these emissions remain too slow, held back by upfront costs, industry inertia, and persistent policy gaps. The challenge: innovating solutions that minimize friction and make implementation easy and advantageous for everyone involved. 

Emissions at stake in 2050: 3.7 Gigatons

Innovation Imperatives

Critical needs that can help accelerate the path to net zero
Grid-Integrated Storage
Improve on-site storage capabilities and bi-directional grid connections for building systems
Buildings are evolving into dynamic energy hubs, but most are still passive consumers of electricity. Grid-integrated storage — paired with bi-directional connections across building systems like heat pumps, water heaters, cooking appliances, and EVs — can help balance demand, reduce peak loads, and store renewable energy when it’s abundant. Scalable, low-cost storage solutions would turn buildings into active participants in grid capacity while cutting operational emissions and energy costs.
Heating Grid
Create heating and cooling systems as integrated as the electric grid
Heating and cooling remain fragmented, building by building and city by city. City-wide district heating grids would connect neighborhoods and districts through shared thermal networks — storing, moving, and balancing heat and cold as flexibly as electricity flows today. Powered by renewables, waste-heat recovery, or seasonal storage, these systems could dramatically reduce emissions, optimize efficiency, and provide affordable climate control at scale.
High-Efficiency HVAC
Develop next-generation electrified heating, cooling, and water systems
Heating and cooling account for nearly half of building energy demand, much of it still fossil-fueled. Advanced HVAC systems — including high-performance air- and ground-source heat pumps, evaporative cooling, and electrochemical cycles — and next-generation water heating can deliver the same performance while using less energy and causing fewer emissions. Scaling these high-efficiency solutions is critical to replacing legacy systems, reducing peak electricity demand, and ensuring that buildings remain livable as global temperatures rise.
Smart Electric Appliances
Increase the rate of retrofitting electrified appliances by expanding range, appeal, and usability of smart devices
Widespread electrification of household and commercial appliances is essential to decarbonize building operations, but adoption remains slow. Smart electric appliances — efficient, easy to install, and designed to fit into existing spaces — can accelerate retrofits at scale. By combining high performance with user-friendly design and integration into smart energy systems, these appliances can rapidly displace fossil-fueled equipment and reduce emissions from heating, cooking, and daily energy use.

Moonshots

High-risk, high-reward innovations that could radically reshape our path to net zero
Advanced Air Management
Recycle indoor air with CO₂ scrubbers and ultra-efficient filtration
Today’s HVAC systems move massive volumes of air to maintain indoor temperatures, wasting energy in the process. Advanced air management envisions buildings equipped with ultra-efficient filtration, CO₂ scrubbers, and air quality systems that recycle indoor air instead of constantly replacing it. By sharply reducing ventilation loads while still maintaining healthy air, this approach could slash building energy demand and unlock a new level of efficiency.
Clean Refrigerants
Pioneer ultra-low emissions, high-efficiency, novel refrigerants
Cooling is one of the fastest-growing drivers of building energy demand — and conventional refrigerants are potent greenhouse gases. This moonshot calls for entirely new classes of ultra-low-GWP, high-efficiency refrigerants that eliminate leakage impacts while boosting system performance. Breakthroughs here could redefine the cooling industry, cutting direct refrigerant emissions and reducing the massive amount of energy used by air conditioning worldwide.
DC Building Systems
Implement high-efficiency, low-voltage (DC) building electrical systems that integrate into the existing AC grid
Most modern appliances, lighting, and electronics already run on direct current (DC), but our buildings still rely on alternating current (AC), wasting energy through constant conversions. DC building systems could eliminate this inefficiency, enabling more seamless integration with rooftop solar, battery storage, and EVs. If connected smartly into the existing AC grid, DC systems could unlock major efficiency gains and set the stage for a next-generation architecture for building energy.

Tech Categories

Groupings of climate technologies
Cluster NameReadiness
Appliances
Commercial
Appliances include electrifying everyday use machines like stoves by using high-efficiency alternatives that run on electricity.
Heating & Cooling
Commercial
Heating and cooling replaces fossil fuel-based systems with electric heat pumps. It also entails improving insulation and optimizing building envelopes, the physical barriers between the inside and outside of a building, to reduce energy demand.
Smart Buildings
Commercial
Smart buildings lower emissions by optimizing indoor air quality with minimal waste. Technologies include smart thermostats, demand-controlled ventilation, and energy recovery systems that optimize airflow and climate control.
View all Tech Categories
References
Climate Tech Atlas
Beta
@2025 Climate Tech Atlas
Opportunity Areas
Tech Categories
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