A growing number of countries are taking steps to decarbonize the building sector, but slow progress and inadequate financing continue to jeopardize global climate goals. These are the key findings of the Global Status Report for Buildings and Construction 2024-2025, published today by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The report, titled Not Just Another Brick in the Wall, highlights progress toward global climate targets while calling for greater ambition in six critical areas, including building energy codes, renewable energy adoption, and financing mechanisms.
Global initiatives such as the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough, and the Déclaration de Chaillot are sustaining momentum in integrating ambitious climate action plans into Nationally Determined Contributions (NDCs) ahead of the UN Climate Change Conference (COP30) in Belém, Brazil.
“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 we must do it faster. I encourage all countries to include plans to rapidly cut emissions from buildings and construction in their new NDCs.”
Key findings
A review of the decade since the 2015 Paris Agreement reveals that 2024 marks the first time that continued construction growth has been decoupled from rising emissions. Previously, greenhouse gas emissions in the sector had plateaued, but now, decisive action is starting to shift the trend downward.
- Energy efficiency gains: The sector’s energy intensity has dropped by nearly 10%, while the share of renewable energy in final energy demand has risen by nearly 5%.
- Policy progress: Countries implementing mandatory building energy codes and performance standards aligned with net-zero emissions are seeing measurable reductions.
- Circular construction: Adoption of green leases, energy-efficient retrofitting, low-carbon materials, and circular economy principles can further reduce emissions and construction waste.
Despite these gains, the building sector remains a major contributor to climate change, consuming 32% of global energy and accounting for 34% of global CO₂ emissions. The sector is heavily dependent on high-emission materials like cement and steel, which together contribute 18% of total global emissions.
The road ahead
With nearly half of the world’s 2050 building stock yet to be constructed, the adoption of ambitious energy codes is essential. However, challenges remain:
- Over 50% of new floor space in emerging and developing economies is still not covered by energy-efficient building codes.
- Heat pump installations, a key energy-saving measure, have seen a recent decline.
To accelerate change, the report challenges major carbon-emitting nations to adopt zero-carbon building codes by 2028, with all other countries following no later than 2035. These efforts align with the COP28 Global Renewables and Energy Efficiency Pledge.
To meet climate targets, UNEP and GlobalABC emphasize that global investment in building energy efficiency must double—from $270 billion to $522 billion by 2030. Key measures include:
- Extended Producer Responsibility (EPR) and circular economy initiatives to reduce waste and maximize material efficiency.
- Workforce development programs to fill green construction skill gaps.
- Increased collaboration between governments, financial institutions, and businesses to drive sustainable transformation across the entire building value chain.
UNEP, GlobalABC members, and their partners will continue supporting countries and businesses in decarbonizing new and existing buildings, using this data to inform ambitious NDC updates ahead of COP30.
