Environment
UN Reports First Drop in Building Sector Emissions Growth Since 2020
A growing number of countries are making efforts to decarbonise buildings; however, sluggish progress and financing jeopardise global climate goals.
These are the key findings of the annual review of the buildings and construction sector, published today, Monday, 17th March 2025, by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The Global Status Report for Buildings and Construction 2024-2025, not just another brick in the wall, highlights the progress made towards related global climate goals and calls for greater ambition in tackling six challenges, including building energy codes, renewable energy, and financing.
The Global frameworks and initiatives such as the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough, and the Declaration de Chaillot are sustaining momentum towards adopting ambitious climate action plans, Nationally Determined Contributions (NDCs), for net-zero buildings ahead of the UN Climate Change Conference (COP30) in Belem, 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 encouraging news is that government actions are effective. However, we must do more and do it more swiftly. I urge all countries to include plans to rapidly reduce emissions from buildings and construction in their new NDCs.”
Reflecting on the decade since the signing of the Paris Agreement in 2015, the report identifies 2024 as the first year when the growth of building construction was no longer accompanied by a rise in the sector’s greenhouse gas emissions, which have previously plateaued.
By implementing mandatory building energy codes aligned with net-zero emissions, enforcing performance standards, and capitalising on energy efficiency investments, the sector’s energy intensity has decreased by almost 10%, while the share of renewable energy in final energy demand has risen by nearly 5%.
Additional measures such as circular construction practices, green leases, energy-efficient retrofitting of existing buildings, and prioritising the use of low-carbon materials can further reduce energy consumption, enhance waste management, and lower emissions overall.
Despite this advancement, the sector continues to be a significant contributor to the climate crisis, consuming 32 per cent of global energy and resulting in 34 per cent of global CO2 emissions. The sector relies on materials like cement and steel, which are responsible for 18% of global emissions and are a major source of construction waste.
Given that nearly half of the world’s buildings that will exist by 2050 have yet to be constructed, the adoption of ambitious energy building codes is paramount. Nevertheless, data indicates a recent decline in highly effective measures such as heat pump installations, and over 50 per cent of newly constructed floorspace in emerging and developing economies remains uncovered by building codes.
The report challenges major carbon-emitting countries to adopt zero-carbon building energy codes by 2028, to be followed by all other countries no later than 2035. Building codes and the integration of building code reform plans in the ongoing submission of NDCs are essential for achieving the COP28 Global Renewables and Energy Efficiency Pledge.
Finally, all governments, financial institutions, and businesses must collaborate to double global building energy efficiency investment from USD 270 billion to USD 522 billion by 2030. The adoption of Extended Producer Responsibility measures and circular economy practices —including longer building lifespans, improved material efficiency and reuse, recycling, passive design, and waste management— are crucial to bridge financing gaps, while workforce development programmes are essential to address skill shortages in the sector.
UNEP, GlobalABC members, and other partners will continue to support countries and businesses in decarbonising both new and existing buildings and the entire building value chain, including utilising this data to bolster ambitious NDCs ahead of COP30.
Key Findings;
• Buildings and construction are responsible for over a third of global emissions.
• Half of the world’s new buildings still lack energy codes, a critical policy tool for reducing emissions.
• Climate action on buildings is effective but requires a $1.1 trillion investment.
