A growing number of countries are taking steps to reduce carbon emissions from buildings, but slow progress and limited financing are threatening global climate targets, according to a new report by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The Global Status Report for Buildings and Construction 2024-2025, released today, assesses advancements in the sector’s climate goals and highlights six key challenges, including stricter building energy codes, increased use of renewable energy, and improved financial support for green initiatives.
Several international frameworks, including the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough initiative, and the Declaration de Chaillot, are driving efforts toward more sustainable construction practices.
These initiatives are encouraging governments to integrate ambitious net-zero targets into their Nationally Determined Contributions (NDCs) ahead of COP30, scheduled to take place in Belem, Brazil.
“The buildings where we work, shop, and live contribute significantly to emissions and waste,” said UNEP Executive Director Inger Andersen.
“While government actions are making an impact, we must accelerate efforts. Countries should prioritize reducing emissions from buildings in their updated NDCs.”
The report highlights a significant milestone in 2024, as it marked the first time that growth in building construction did not lead to increased emissions—something that had been a persistent trend over the past decade. This achievement follows the introduction of mandatory building energy codes, enhanced performance standards, and increased investments in energy efficiency.
As a result, the sector’s energy intensity has declined by nearly 10 percent, while the share of renewable energy in total energy demand has risen by close to 5 percent.
Despite these gains, buildings remain a major contributor to the climate crisis, consuming 32 percent of the world’s total energy and accounting for 34 percent of global CO2 emissions. Key materials such as cement and steel are responsible for 18 percent of emissions and generate significant construction waste.
With nearly half of the buildings expected to exist by 2050 yet to be constructed, adopting stringent energy codes is crucial. However, the report points out that progress has slowed in some areas, including a decline in the installation of energy-efficient heat pumps. Additionally, over 50 percent of newly built floor space in emerging and developing economies still lacks regulatory oversight.
To address these challenges, the report calls on major carbon-emitting nations to implement zero-carbon building energy codes by 2028, with all other countries following suit by 2035. These reforms are essential to achieving the COP28 Global Renewables and Energy Efficiency Pledge.
The UN is urging governments, financial institutions, and businesses to work together to double global investments in building energy efficiency—from the current USD 270 billion to USD 522 billion—by 2030.
The report also recommends adopting circular economy principles to extend the lifespan of buildings, enhance material efficiency, and improve recycling efforts. Additionally, Extended Producer Responsibility (EPR) policies could help bridge financial gaps in the sector by ensuring manufacturers take accountability for their products’ environmental impact.
Another priority is workforce development, as addressing skill gaps in the sector is critical for implementing sustainable construction practices.
Established at COP21 and hosted by UNEP, the GlobalABC brings together 291 members, including 42 countries, to promote a zero-emission, efficient, and resilient buildings and construction sector. The alliance provides leadership and fosters collaboration to ensure sustainable growth without compromising the well-being of future generations.
