Buildings and Construction Generate 37% of Global Emissions, Report Finds
The decarbonisation of the global buildings and construction sector has slowed significantly, leaving one of the world’s largest sources of greenhouse gas emissions increasingly exposed to climate risks and rising energy costs, according to a new report released by the United Nations Environment Programme and the Global Alliance for Buildings and Construction.
The tenth edition of the Global Status Report for Buildings and Construction (2025–2026) evaluates progress in the sector using seven key indicators linked to policies, finance, technologies and investments needed to achieve global net-zero emissions targets by 2050.
Released amid a growing global housing and energy affordability crisis, the report says stronger climate action in the buildings sector could lower energy bills, improve living conditions and strengthen resilience to climate impacts while reducing 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,” she added.
The report notes that the world is currently adding an estimated 12.7 million square metres of floor area every day, nearly equivalent to constructing the entire city of Paris in new floor space each week.
In 2024, global building floor area expanded by 1.7 per cent to reach 273 billion square metres, driven largely by rapid construction in emerging economies such as India and countries across Southeast Asia.
The buildings and construction sector now accounts for nearly half of global material extraction, 37 per cent of global greenhouse gas emissions, and 28 per cent of global energy consumption, according to the report.
Despite some progress since 2015, UNEP warned that the pace of the green transition has slowed since 2020 and is failing to keep up with rapid urban growth and construction demand worldwide.
The report highlights several achievements over the past decade, including an 8.5 per cent reduction in global building energy intensity, which measures a building’s annual energy use relative to its size. Green building certifications have also nearly tripled globally.
Investment in energy efficiency reached USD 275 billion in 2024, contributing to a cumulative USD 2.3 trillion invested since 2015. However, renewable energy supplied only 17.3 per cent of buildings’ energy demand in 2024, far below levels required to meet global net-zero targets.
To align the sector with a net-zero pathway, the report calls on governments to accelerate energy efficiency improvements, phase out fossil fuels, and significantly scale up investment in sustainable buildings.
According to the report, investment in building energy efficiency must reach USD 5.9 trillion by 2030 — equivalent to about USD 592 billion annually.
The report also highlights examples of progress across different regions. The European Union introduced policies targeting both operational emissions and embodied emissions generated during construction. Improvements in building energy performance were also recorded in Japan and Switzerland.
Countries including Australia, Germany, India and Pakistan saw growth in on-site renewable energy use in buildings, while updated building energy codes were introduced in California, Kenya, Japan and Singapore.
The report further cites national climate action plans with stronger building sector strategies in Bahamas, Cambodia and Colombia, alongside expanded green building certification programmes in China, Colombia, India and Türkiye.
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