Building sector emissions stall for first time since 2020, but progress remains slow

The building and construction sector’s emissions did not increase in 2024 for the first time since 2020, according to a new report by the United Nations Environment Programme (UNEP) and climate alliance Global Alliance for Buildings and Construction. Despite this progress, the sector remained a major contributor to climate change, responsible for over a third of global emissions.

The Global Status Report for Buildings and Construction 2024-2025 released March 17, 2025 revealed that efforts to decarbonise buildings had started to show results. The energy intensity of the sector reduced by almost 10 per cent, while the share of renewable energy in final energy demand increased by nearly 5 per cent. 

However, slow progress and inadequate funding continued to threaten global climate targets.

“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.”

Almost half of the world’s future buildings had yet to be built, making the implementation of ambitious energy codes crucial, the report highlighted. However, more than 50 per cent of new buildings in emerging and developing economies still lacked such policies. 

The adoption of zero-carbon building energy codes by 2028 for major carbon-emitting countries and by 2035 for all others, was identified as a key measure for achieving global climate goals.

Despite some progress, the sector remained a key driver of emissions, consuming 32 per cent of global energy and contributing 34 per cent of global carbon dioxide emissions. Construction materials like cement and steel accounted for 18 per cent of global emissions and generated significant waste.

The report also called for a major increase in investment. The sector needed to double global building energy efficiency investments from $270 billion to $522 billion by 2030. Measures such as circular construction practices, green leases, energy-efficient retrofitting and low-carbon materials could further reduce emissions. Workforce development programmes were also necessary to address skill shortages in the industry.

UNEP, GlobalABC and other partners pledged to continue supporting countries and businesses in decarbonising both new and existing buildings. The findings would be used to guide ambitious NDC commitments ahead of the 30th Conference of Parties or COP30 to the United Nations Framework Convention on Climate Change in Belem, Brazil.