The building sector plays a pivotal role in climate change mitigation. By regulating the demand for services and products from supply sectors, building sector can contribute to decarbonization. To assess the decarbonization and cost-saving potential of demand-side solutions for China’s residential building sector, this study develops a demand-side solution framework and an end-use technology model. The model covers the building sector and major supply sectors, considering the heterogeneous impacts of demand-side solution measures on different supply sectors. Here we show that the most optimistic cost-effective demand-side solution can reduce cumulative CO₂ emissions by 47% (42.21 Gt CO₂-eq), while achieving a 16% saving in the net present value of costs over the period 2020−2060. Additionally, results indicate that the demand-side solution enable China’s rural residential buildings to achieve carbon neutrality without carbon dioxide remove options, while simultaneously mitigating uncertainties in reaching carbon neutrality targets.

Buildings are key in supporting human activities and well-being by providing shelter and other important services to their users. Buildings are, however, also responsible for major energy use and greenhouse gas (GHG) emissions during their life cycle. Improving the quality of services provided by buildings while reaching low energy demand (LED) levels is crucial for climate and sustainability targets. Building sector models have become essential tools for decision support on strategies to reduce energy demand and GHG emissions. Yet current models have significant limitations in their ability to assess the transformations required for LED. We review building sector models ranging from the subnational to the global scale to identify best practices and critical gaps in representing transformations toward LED futures. We focus on three key dimensions of intervention (socio-behavioral, infrastructural, and technological), three megatrends (digitalization, sharing economy, and circular economy), and decent living standards. This review recommends the model developments needed to better assess LED transformations in buildings and support decision-making toward sustainability targets.