Nairobi — A new global report by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction has warned that progress in decarbonising the buildings and construction sector is slowing, threatening global climate targets and increasing exposure to energy price shocks.
The findings are contained in the tenth edition of the Global Status Report for Buildings and Construction (2025-2026), released Tuesday in Nairobi.
According to the report, buildings' operational emissions rose by one per cent in 2024 to reach 9.9 gigatonnes of carbon dioxide, despite ongoing global efforts to improve energy efficiency.
The sector remains one of the world's largest sources of emissions, accounting for nearly 37 per cent of global emissions, 28 per cent of global energy consumption, and almost half of total material extraction worldwide.
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The report warns that although buildings are gradually becoming more energy efficient, the pace of change remains insufficient to align with the global net-zero target for 2050.
"From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives," said United Nations Environment Programme Executive Director Inger Andersen.
"Buildings can either lock in climate risks or deliver safer, healthier, and more affordable living conditions."
Zero-emission construction
Andersen added that with half of the world's future building stock yet to be constructed or renovated by 2050, governments face a critical opportunity to drive zero-emission construction through stronger policies, building codes, and investment.
The report comes amid rising global concern over housing and energy affordability, noting that climate-aligned construction could help reduce energy bills, improve living conditions, and strengthen resilience against climate-related disasters.
Globally, the world is adding an estimated 12.7 million square metres of floor space every day--roughly equivalent to building a city the size of Paris each week.
In 2024, global building floor space expanded by 1.7 per cent to 273 billion square metres, driven largely by rapid urbanisation in emerging economies, including India and parts of Southeast Asia.
8.5pc decline
Since 2015, global building energy intensity--measuring energy use per unit of floor area--has fallen by 8.5 per cent, while green building certifications have nearly tripled.
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However, renewable energy still accounted for only 17.3 per cent of buildings' energy demand in 2024, a level far below what is required for a net-zero pathway.
Investment in energy efficiency reached USD 275 billion in 2024, bringing cumulative global investment since 2015 to USD 2.3 trillion.
Despite these gains, the report says momentum has slowed since 2020, as green construction efforts have failed to keep pace with rapid expansion in global building stock.
To meet climate targets, annual investment in building energy efficiency would need to rise sharply to USD 5.9 trillion by 2030, equivalent to about USD 592 billion per year.
The report also highlights several countries making notable progress in sustainable construction and building decarbonisation.
These include the European Union's policies targeting both operational and embodied emissions, improved efficiency standards in Japan and Switzerland, and expanded use of on-site renewable energy systems in Australia, Germany, India, and Pakistan.
Kenya was among countries recognised for updating building energy codes, alongside Japan, Singapore, and California in the United States.
Other progress cited includes expanded green building certification programmes in China, Colombia, India, and Türkiye, as well as national roadmaps supporting sector transformation in countries such as Bangladesh, Ghana, Indonesia, Jordan, Senegal, and India.
UNEP and the GlobalABC said they will continue supporting governments with data, policy guidance, and technical assistance to accelerate climate action while addressing affordability and equity challenges in the housing sector.
