For the first time since 2020, emissions from the global building and construction sector did not increase in 2024, according to a new report by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction. While this marks a significant milestone the sector remains one of the world’s largest carbon emitters responsible for over a third of global emissions.
The Global Status Report for Buildings and Construction 2024-2025, released on March 17, 2025 highlights emerging progress in decarbonization. Energy intensity in the sector dropped by nearly 10%, and the share of renewable energy in final energy demand rose by 5%. However the report warns that these improvements are not enough to keep climate goals within reach.
Urgent Need for Stronger Policies and Investment
Inger Andersen Executive Director of UNEP emphasized the critical role of buildings in climate action. “The buildings where we work, shop, and live account for a third of global emissions and a third of global waste. Government actions are showing results, but we must act faster,” she said urging countries to integrate stricter emissions reductions into their Nationally Determined Contributions (NDCs) under the Paris Agreement.
The report warns that nearly half of the world’s future buildings have yet to be built, making zero-carbon building codes crucial. Yet, more than 50% of new buildings in emerging and developing economies still lack such policies. The report calls for major carbon-emitting nations to adopt zero-carbon building codes by 2028 and all other countries by 2035.
Construction Materials Driving Emissions
Despite some progress, the construction sector remains a major driver of emissions. It consumes 32% of global energy and is responsible for 34% of total CO₂ emissions. The production of cement and steel alone contributes 18% of global emissions while generating massive amounts of waste.
Massive Investment Gap in Green Construction
The report stresses that the sector must double investments in building energy efficiency from $270 billion to $522 billion by 2030 to meet global climate targets. Strategies such as circular construction, energy-efficient retrofitting, green leases, and low-carbon materials could accelerate progress. Additionally, workforce development programs are needed to address critical skill shortages in green construction.
With COP30 set to take place in Belem, Brazil, UNEP, GlobalABC, and other partners have pledged to support countries and businesses in decarbonizing both new and existing buildings. The report’s findings are expected to shape ambitious climate commitments in the years ahead.