Jakarta – For the first time in nearly five years, emissions from the global building sector have stopped rising, marking a significant milestone in climate action efforts, UN Environment Programme (UNEP) said in a statement on Monday, March 17. However, despite this progress, the sector remains one of the most significant contributors to global greenhouse gas emissions, and experts warn that more ambitious policies and increased financing are needed to maintain momentum.
According to the latest Global Status Report for Buildings and Construction 2024-2025, released by the UNEP and the Global Alliance for Buildings and Construction (GlobalABC), the sector continues to consume 32% of global energy and produce 34% of global CO2 emissions. The report highlights key areas where action works and urgent improvements are needed to meet global climate targets.
The report finds that climate action in the building sector is beginning to show results. Government-led initiatives, including adopting stricter building energy codes and performance standards, have helped reduce energy intensity in the sector by nearly 10%. Simultaneously, the share of renewable energy in final energy demand has grown by almost 5%.
Measures such as circular construction practices, energy-efficient retrofitting, and low-carbon materials like sustainable cement and steel have further supported emissions reductions. However, significant challenges remain: half of the world’s newly constructed buildings still lack energy codes, and highly effective initiatives like heat pump installations have recently declined.
“The buildings where we work, shop, and live account for a third of global emissions and a third of global waste,” said Inger Andersen, Executive Director of UNEP. “The good news is that government actions are working. But we must do more and do it faster. I encourage all countries to include plans to rapidly cut emissions from buildings and construction in their new Nationally Determined Contributions (NDCs).”
The road ahead: Urgent action required
The report underscores the urgent need for nations to adopt mandatory net-zero building energy codes. The challenge urges the world’s highest-emitting countries to implement such codes by 2028, with all other countries following by 2035.
Since nearly half of the buildings that will exist by 2050 have yet to be built, integrating strict energy efficiency regulations is essential to achieving the COP28 Global Renewables and Energy Efficiency Pledge.
Additionally, financing remains a significant hurdle. To stay on track with climate goals, the report calls for doubling global building energy efficiency investment, from USD 270 billion to USD 522 billion by 2030. Extended Producer Responsibility measures and circular economy practices—including longer building lifespans, improved material efficiency, and waste recycling—could help bridge financing gaps. Workforce development programs are also crucial to ensure a skilled labor force for the green transition in construction.
UNEP, GlobalABC members, and other partners will continue to support governments and businesses in decarbonising new and existing buildings and the entire construction value chain. The report highlighted the need for increased cooperation between governments, financial institutions, and private-sector stakeholders to ensure the success of ambitious NDCs ahead of the UN Climate Change Conference (COP30) in Belém, Brazil.
The building sector stands at a crossroads as the world moves towards net-zero emissions. While significant progress has been made, the path forward demands increased ambition, investment, and global collaboration to ensure a sustainable and energy-efficient future. (nsh)
Banner photo: Kirandeep Singh Walia/pexels.com
