In a promising development for climate action, global greenhouse gas emissions from the building and construction sector have stopped rising for the first time since 2020, according to a new United Nations report. But while the news offers hope, the UN Environment Programme (UNEP) warns that without faster and more ambitious action — particularly in financing and regulation — the sector could still derail global efforts to meet climate targets.

Released today, the Global Status Report for Buildings and Construction 2024-2025—produced by UNEP and the Global Alliance for Buildings and Construction (GlobalABC)—reveals a critical turning point: in 2024, the sector’s emissions were decoupled from the rapid pace of construction growth for the first time in nearly a decade.

“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.”

Progress, But Not Enough

The report credits the improvement to several key measures, including the introduction of mandatory building energy codes, tougher performance standards, and increased investment in energy efficiency. These efforts helped reduce the sector’s energy intensity by nearly 10%, while the share of renewable energy in the sector’s final energy demand rose by almost 5%.

Further progress has been made through the adoption of circular construction practices, energy-efficient retrofits, the use of low-carbon materials, and green leasing agreements. Yet despite this forward momentum, the buildings and construction sector still consumes 32% of global energy and is responsible for 34% of CO₂ emissions — making it a central driver of the climate crisis.

The Challenge Ahead

The report emphasizes the immense task still ahead. Nearly half of the buildings that will exist by 2050 have not yet been constructed. However, over 50% of new floorspace in developing and emerging economies is still being built without energy codes — a key tool in slashing emissions from new buildings.

Heat pump installations and other high-impact measures have also seen a worrying decline, suggesting a loss of momentum in critical areas.

The report sets a bold challenge for major carbon-emitting countries: adopt zero-carbon building energy codes by 2028, with all other nations to follow no later than 2035. These measures, it argues, are essential to achieving the COP28 Global Renewables and Energy Efficiency Pledge.

The $1.1 Trillion Gap

While policies are gaining traction, funding remains a major roadblock. To stay on track for global climate goals, the report calls for a doubling of building energy efficiency investments — from USD 270 billion today to USD 522 billion by 2030. The current shortfall stands at a staggering $1.1 trillion.

Bridging this gap will require a collective effort by governments, financial institutions, and businesses. The report advocates for circular economy principles — such as extending building lifespans, improving material reuse and recycling, and promoting passive design — as cost-effective solutions to reduce environmental impact while minimizing waste.

The integration of Extended Producer Responsibility frameworks is also recommended, along with workforce development programs to address critical skill gaps in green construction and retrofitting.

Global Momentum Builds Ahead of COP30

International momentum is building through platforms like the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough initiative, and the Declaration de Chaillot. These frameworks are helping nations align their Nationally Determined Contributions (NDCs) with more ambitious targets for net-zero buildings, setting the stage for strong climate commitments at the upcoming COP30 in Belém, Brazil.

UNEP and GlobalABC pledged continued support for countries and businesses to transition both new and existing buildings toward a zero-carbon future, using this latest data to help inform climate action plans.

“Not Just Another Brick in the Wall”

The report’s title — Not Just Another Brick in the Wall — is a call to recognize buildings not just as physical structures, but as foundational to our climate future.

With buildings set to shape the world’s emissions profile for decades to come, the message is clear: we know what works, but we must move faster, fund smarter, and build better.