Rising energy insecurity and climate risks are placing pressure on our built environment, which now stands at the intersection of challenge and opportunity – while momentum for net zero buildings is growing, there are still barriers to overcome.

Words Sindi Kalumba

THE ADOPTION OF NET ZERO BUILDINGS in the South African Commercial Property Market

When the lights go off for the fifth time in a week, it’s more than just an inconvenience. It is a sign of a deeper energy crisis. South Africa’s ageing infrastructure, load shedding and rising electricity costs are disrupting lives, businesses and the economy.

COMMERCIAL BUILDINGS MATTER IN THE CLIMATE FIGHT

Electricity consumption in South Africa’s commerce and public services sector (including offices, retail, government services and public institutions) represents a substantial portion of national energy use and holds the potential to lead a shift toward a more sustainable, self-sufficient economy.

Net zero carbon buildings are designed to reduce energy use while generating an equivalent amount of renewable energy on-site or off-site to match their annual consumption.

WHERE ARE WE NOW?

South Africa has made strong progress in green building: as at the end of 2024, 1 287 Green Star certifications have been bestowed since 2009. These certifications cover many types of buildings and include projects in other parts of Africa, not just South Africa. Meanwhile, net zero building adoption, starting in 2017, is still growing and faces both drivers and barriers.

The research1 presented in this article included an analysis of decision-makers from four property organisations to identify the drivers and barriers in the adoption of net zero buildings in the South African commercial property market during the net zero transition. The findings showed a clear drive with regard to innovation, yet revealed persistent structural, financial and regulatory barriers. This pointed to an emerging zone of drivers and barriers, called the “Amber Zone”, where the market could stall or lead amid the transition.

Net zero buildings offer a timely opportunity within South Africa’s volatile energy landscape. Frequent load shedding, infrastructure instability and escalating electricity tariffs have rendered energy security a concern. Net zero solutions combine active and passive design to improve resource efficiency, using on-site renewables first, then off-site renewable energy. As the country commits to achieving net zero greenhouse gas emissions by 2050, the role of the commercial property market becomes increasingly critical. As part of global initiatives, South African cities Cape Town, Johannesburg and Durban have signalled their intent by joining the global network C40 cities. But turning these ambitions into real progress in the built environment is still a work in progress.

WHAT IS DRIVING THE SHIFT?

Encouragingly, the motives behind sustainability investment are evolving. GBCSA has driven this progress by setting standards for green building and net zero building certification, encouraging sustainable design and construction practices, as well as promoting a network of accredited professionals and suppliers. Green building certification has gained momentum and is increasingly driven by tenant demand, cost savings, financing incentives and shareholder expectations.

Through early-stage integration and efficient planning, sustainable buildings are increasing. This shows that when sustainability starts early, green goals become more achievable.

WHY IS IT STILL TOUGH?

Net zero building adoption remains slow in South Africa, with cost being the largest barrier. Retrofitting is expensive, not all roofs can accommodate solar panels and battery storage is still costly. These buildings are high performance and tenant demand for green features in net zero buildings remains limited. In addition, the supply of net zero building skills, products and services in South Africa is still limited. This gap affects the full process, from design and installation to long-term maintenance.

But it also opens up space for innovation and local growth, which can help make net zero more feasible. While education can influence willingness, the financial case for net zero buildings is still developing. Trust in these benefits will grow only as more real-world evidence accumulates over time.

Countries like the UK have strict targets and grants to push net zero buildings. South Africa, like Brazil and other emerging economies, has set net zero goals but still relies on voluntary action without strong national rules or incentives. These combined financial, technological and legislative gaps create a slow-moving landscape, but the rising capacity, awareness and net zero building certifications indicate an opportunity for leaders to build capacity and move the market forward.

THE “AMBER ZONE”

Challenges such as these, however, are not fixed. The research1 conducted identified a critical space we call the “Amber Zone”, in which some challenges can either block progress or become key opportunities, depending on which way it is swayed. The tension in the zone is represented in Figure 1, which shows how drivers (environmental institutional, social), Amber Zone factors (economic, technical) and barriers (cost, technology, policy) interact. Green arrows indicate opportunities, and red arrows, the challenges.

The key insight is not merely that challenges exist, but that their impact is contextual and dynamic. What appears as a barrier in one organisation can become a catalyst in another, depending on vision, timing and strategic alignment. Load shedding, as an example of a technical factor, while a threat to business continuity, is also a powerful motivator for self-sufficiency. So, this Amber Zone represents a space of tension and possibility that influences the adoption of net zero buildings within South Africa’s commercial property sector during the net zero transition.

WHAT’S NEXT?

While this research provided insight into the adoption of net zero buildings, it is based on a limited sample of four property organisations, which may not fully reflect the sector’s variability. The absence of financial modelling and tenant behaviour analysis highlights areas for further investigation. Moreover, the findings are specific to the South African context. Continued research and cross-sector collaboration will be essential to accelerate progress and realise the full potential of net zero in the commercial built environment.

South Africa’s commercial property sector faces challenges such as high costs, limited incentives and a growing business case alongside promising opportunities in the net zero transition. While barriers persist, increasing awareness, shifting market drivers, and the rise in certifications signal a slow but meaningful shift.

Sindisiwe Kalumba is a Mastercard Foundation Scholar who is pursuing an MPhil in Real Estate Finance at the University of Cambridge. She holds a BSc (Hons) Property Studies from the University of Cape Town (UCT), where she worked as a research assistant for the Urban Real Estate Research Unit (URERU) based at UCT. Sindisiwe won second prize in the Property category of 2023 Greenovate Awards for her research on this topic.

Reference

  1. Kalumba, S., Volker, H. & Nurick, S. An Investigation of the Adoption of Net-Zero Buildings (NZBs) in the South African Commercial Property Market. Sustainability 2025, 17, 5272. https://doi.org/10.3390/su17125272
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