Slow Decarbonization Progress Threatens Climate Goals

The push to decarbonize the building sector is gaining traction worldwide, but slow progress and limited funding threaten global climate goals, according to a new report by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).

The Global Status Report for Buildings and Construction 2024-2025 highlights both advancements and persistent challenges in achieving net-zero emissions in the sector. It calls for increased ambition in six key areas, including energy codes, renewable energy integration, and financing. Initiatives such as the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough initiative, and the Chaillot Declaration are supporting the inclusion of ambitious building sector commitments in national climate plans, ahead of the COP30 climate conference in Brazil.

“Buildings account for one-third of global emissions and waste. Government actions are making an impact, but we need to move faster. I urge all member states to include building decarbonization strategies in their updated national climate commitments,” said Inger Andersen, Executive Director, UNEP. 

The report notes that 2023 marked the first year in which the continued growth of building construction did not result in increased greenhouse gas emissions, which have stabilized. This progress is attributed to the adoption of mandatory energy codes and efficiency standards, as well as increased investment in energy efficiency. The sector’s energy intensity has declined by nearly 10%, while the share of renewables in its final energy demand has grown by almost 5%.

Despite these improvements, the building sector remains a major contributor to climate change, consuming 32% of global energy and producing 34% of global CO2 emissions. The industry also relies on carbon-intensive materials such as cement and steel, which account for 18% of global emissions and contribute significantly to construction waste.

With nearly half of the buildings that will exist by 2050 yet to be built, the report stresses the need for stronger energy codes. However, recent data shows a decline in the adoption of key measures like heat pump installations, while over 50% of new floor space in emerging economies remains unregulated by building codes.

The report calls on major carbon-emitting countries to adopt net-zero building energy codes by 2028, with all other nations following by 2035. These measures are critical to meeting the COP28 Global Renewables and Energy Efficiency Pledge. It also urges governments, financial institutions, and businesses to double global investment in building energy efficiency, from US$270 billion to US$522 billion by 2030.

Extended producer responsibility policies and circular economy practices, such as extending building lifespans, improving material efficiency, recycling, passive design, and waste management, are highlighted as essential strategies for addressing funding gaps. Workforce training programs are also needed to fill skills shortages in the sector.