Climate action key to affordable housing, but buildings decarbonisation stalls -

Buildings’ operational emissions increased by 1 per cent to 9.9 GtCO₂ in 2024
Globally buildings are becoming more energy efficient, but progress is too slow to meet climate goals
USD 5.9 trillion in investment in energy efficiency is needed by 2030

Decarbonisation of the buildings and construction sector has slowed, leaving it both a major emissions source and increasingly vulnerable to climate impacts and energy price shocks, according to a new report from the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).

The tenth edition of the Global Status Report for Buildings and Construction (2025-2026) assesses progress across the sector using seven key indicators covering policies, finance, technologies, and investment aligned with global commitments towards a 2050 net-zero emissions pathway.

Published amid a global housing and energy affordability crisis, the report highlights how climate action in buildings can reduce energy bills, improve living conditions, and strengthen resilience to climate impacts, while cutting greenhouse gas emissions.

“From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives,” said Inger Andersen, Executive Director of UNEP. “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.”

Every day, the world builds an estimated 12.7 million square metres of floor area –roughly the equivalent of adding the entire city of Paris in new floor space nearly every week.

In 2024, the global buildings floor area expanded by 1.7 per cent, reaching 273 billion square metres. This rapid growth was driven largely by construction in emerging economies, including India and Southeast Asia. The buildings and construction sector now accounts for nearly 50 per cent of global material extraction, 37 per cent of global emissions, and 28 per cent of global energy consumption.

The report notes that since 2015:

Global building energy intensity – measuring a building’s annual energy consumption relative to its size – has reduced by 8.5 per cent.
Green building certifications have nearly tripled.
In 2024, renewables supplied just 17.3% of buildings’ energy demand, far below what is needed for a net‑zero pathway.
Investment in energy efficiency reached USD 275 billion in 2024, contributing to cumulative investment of USD 2.3 trillion since 2015.

Since 2020, however, progress has slowed, as the green transition has not kept pace with the rate of construction. To align the sector with a net-zero pathway, policymakers should accelerate energy efficiency improvements, and the fossil fuel phase out, while investment in building energy efficiency must reach USD 5.9 trillion by 2030, equivalent to USD 592 billion annually.

The report highlights positive examples across regions, including:

The European Union deployed policies tackling operational emissions and emissions released before and during construction (embodied emissions). Improvements in building energy performance in Japan and Switzerland.
Growth in on-site renewables in buildings in Australia, Germany, India, and Pakistan.
National climate action plans (NDCs) substantively covering building sector strategies in the Bahamas, Cambodia, and Colombia.
Updated building energy codes in California, Kenya, Japan, and Singapore.
Expansion of green building certification in China, Colombia, India, and Türkiye.
National roadmaps supporting sector transformation in Bangladesh, India, Indonesia, Jordan, Ghana, and Senegal.
Growth in investment and financing for sustainable buildings in Canada, New Zealand, and the United Kingdom.

UNEP and GlobalABC will continue working to strengthen data, improve methodologies and support national policymaking. These efforts will equip decision-makers with the evidence needed to accelerate climate action while addressing affordability and equity challenges.