The report outlines six key challenges that must be overcome to accelerate the decarbonization of the building sector. These challenges are not merely technical but also involve policy, financial, and behavioral shifts.

A report released today by the United Nations Environment Programme indicates that greenhouse gas emissions from the building sector have ceased their relentless climb for the first time since 2020. This plateau, while a welcome development, is presented against a backdrop of persistent challenges and an urgent need for accelerated action to meet global climate targets.

The “Global Status Report for Buildings and Construction 2024-2025,” titled “Not just another brick in the wall,” says that the global landscape of construction and building management is undergoing a critical evaluation, as a recent report from the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC) reveals a significant, albeit fragile, turning point.

The core message of the report is a dual narrative: progress is being made, but it is far from sufficient. Inger Andersen, Executive Director of UNEP, articulated this tension, stating, “The buildings where we work, shop and live account for a third of global emissions and a third of global waste. The good news is that government actions are working. But we must do more and do it faster. I encourage all countries to include plans to rapidly cut emissions from buildings and construction in their new NDCs.”

The report’s optimism stems from the observation that 2023 marked the first year where the continued expansion of building construction was decoupled from the corresponding rise in sector greenhouse gas emissions. This achievement is attributed to several factors, including the increasing adoption of mandatory building energy codes aligned with net-zero emissions, the implementation of mandatory performance standards, and a surge in energy efficiency investments. Notably, the sector has seen a nearly 10 per cent reduction in energy intensity and a nearly 5 per cent increase in the share of renewable energy in final energy demand.

Major driver of climate crisis

However, the report does not shy away from highlighting the sector’s persistent role as a major driver of the climate crisis. Despite the recent plateau, buildings still account for 32 per cent of global energy consumption and 34 per cent of global CO2 emissions. The reliance on carbon-intensive materials like cement and steel, which contribute 18 per cent of global emissions and are a major source of construction waste, remains a significant concern.

One of the most pressing issues identified in the report is the need for more stringent and widespread adoption of energy-efficient building codes. With nearly half of the buildings expected to exist by 2050 yet to be constructed, the opportunity to shape a sustainable future is immense. However, the report reveals a concerning decline in the adoption of highly effective measures like heat pump installations, and more than 50 per cent of new floorspace in emerging and developing economies still lacks coverage by building codes.

To address this gap, the report sets out a clear and ambitious challenge: major carbon-emitting countries must adopt zero-carbon building energy codes by 2028, with all other countries following suit by 2035. This call to action is directly linked to the COP28 Global Renewables and Energy Efficiency Pledge and underscores the critical role of integrating building code reform plans into Nationally Determined Contributions (NDCs).

The report also emphasizes the urgent need to double global building energy efficiency investment from USD 270 billion to USD 522 billion by 2030. This financial commitment is deemed essential to drive the necessary transformations, including the adoption of Extended Producer Responsibility measures, the implementation of circular economy practices, and the development of workforce training programs to address skill gaps.

Clear message: The time for action is now

The report outlines six key challenges that must be overcome to accelerate the decarbonization of the building sector. These challenges are not merely technical but also involve policy, financial, and behavioral shifts.

1. Building Codes: The report calls for major emitters to lead the way in adopting mandatory zero-carbon building energy codes, setting a global standard for sustainable construction.
2. Retrofits: The rate of energy efficiency retrofits must be significantly increased to reduce energy intensity and improve the performance of existing buildings.
3. Renewable Energy Adoption: The integration of renewable energy sources in buildings must be accelerated to reduce reliance on fossil fuels.
4. NDC Integration: Building code reform plans must be explicitly included in NDCs to ensure alignment with global climate goals.
5. Embodied Carbon: Limits on embodied carbon in building materials must be established to reduce the sector’s overall carbon footprint.
6. Financing: Global investment in building energy efficiency must be doubled to support the transition to sustainable building practices.

The Urgency of Action

Despite the challenges, the report highlights several areas of progress and international collaboration. The increasing adoption of renewable energy, the growth of green building certifications, and the implementation of circular construction practices are all positive trends. Initiatives such as the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough, and the Declaration de Chaillot are also playing a crucial role in driving momentum towards ambitious climate action plans.

The Buildings Breakthrough Agenda, launched at COP28, aims to make near-zero emission and resilient buildings the new normal by 2030. This initiative, endorsed by 45 countries, outlines six key action areas to drive buildings sector decarbonization, including standards and certification, demand creation, finance and investment, research and deployment, capacity and skills, and landscape coordination.

The Chaillot Declaration, issued at the inaugural Buildings and Climate Global Forum in 2024, reinforces international commitments to decarbonization through mandatory energy codes, sustainable materials, and capacity-building.

The UNEP and GlobalABC report serves as a stark reminder of the urgency of addressing the building sector’s contribution to climate change. While the plateauing of emissions is a positive sign, it is crucial to recognize that this is just the beginning of a long and challenging journey. The report calls for immediate and decisive action to accelerate progress and ensure that the building sector aligns with the goals of the Paris Agreement.

The upcoming COP30 in Belem, Brazil, provides a critical opportunity for countries to strengthen their commitments and accelerate the implementation of sustainable building practices. By embracing innovation, fostering collaboration, and prioritizing investment in energy efficiency, the global community can transform the building sector into a key driver of a sustainable, low-carbon future.