A new study from the German Sustainable Building Council (DGNB) and the Buildings Performance Institute Europe (BPIE) reveals that smart, energy-efficient buildings can be constructed without exceeding typical budgets. Analysing 28 residential projects, the report shows that climate-friendly design is not only feasible but also economically viable, even ahead of upcoming EU regulations mandating life cycle carbon assessments.

Contrary to common assumptions, the study finds no consistent link between lower emissions and higher construction costs. Several buildings with excellent energy performance were built below the national average cost. Timber and hybrid structures emerged as particularly effective in reducing embodied carbon, offering planners a practical route to sustainable construction.

Operational emissions —those generated during a building’s use—are also addressed. The report highlights that buildings with lower energy consumption often have lower overall costs, despite a higher share of investment in technical systems. Smart buildings, equipped with efficient heating, cooling, and ventilation, offer long-term savings and reduced environmental impact.

The findings support a broader shift towards smart building practices. By integrating energy efficiency and life cycle thinking from the outset, developers can meet climate targets while maintaining financial sustainability. The report calls on policymakers and industry leaders to act swiftly, embedding these principles into regulation and planning frameworks.