Decarbonisation in the global buildings and construction sector has slowed, leaving the industry exposed to climate risks and energy price volatility, according to a new report.
The latest Global Status Report for Buildings and Construction, published by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GABC), warns that progress towards net-zero targets is failing to keep pace with rapid global construction growth.
The tenth edition of the report assesses the sector against seven indicators linked to policies, finance, technology and investment needed to align with a 2050 net-zero emissions pathway.
The sector remains one of the world’s largest sources of emissions and resource use. According to the report, buildings and construction account for 37% of global emissions, 28% of global energy consumption, and nearly half of all material extraction worldwide.
Global floor area expanded by 1.7% in 2024 to reach 273bn square metres, driven largely by construction growth in emerging economies including India and countries across South East Asia. UNEP estimates that 12.7m square metres of new floor space is added every day – the equivalent of constructing the city of Paris almost every week.
The report highlights that climate action in the built environment could help reduce energy costs, improve living conditions and strengthen resilience against climate-related impacts.
Inger Andersen, executive director of UNEP, said: “From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives.
“Buildings can either lock in climate risks or deliver safer, healthier, and more affordable living conditions. With half of the world’s buildings yet to be built or renovated by 2050, governments have a critical opportunity to drive zero-emission, resilient construction through better policies, codes, and investment.”
The report found that since 2015, global building energy intensity has fallen by 8.5% and green building certifications have nearly tripled. Investment in energy efficiency reached US$275bn in 2024, contributing to cumulative investment of US$2.3tn since 2015.
However, progress has slowed since 2020, with the pace of green transition measures failing to match construction growth.
Renewable energy supplied just 17.3% of buildings’ energy demand in 2024, well below levels required for a net-zero trajectory. UNEP and GABC said annual investment in building energy efficiency must more than double to around US$592bn each year by 2030.
The report identified examples of progress across several regions. These included updated building energy codes in California, Kenya, Japan and Singapore, increased deployment of on-site renewables in Australia, Germany, India and Pakistan, and expanded green building certification schemes in China, Colombia, India and Türkiye.
UNEP and GABC said they would continue supporting governments through improved data, methodologies and policymaking guidance aimed at accelerating climate action while addressing affordability and equity challenges.
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