The decarbonisation of the global buildings and construction sector has slowed significantly, leaving it both a leading source of greenhouse gas emissions and increasingly exposed to climate impacts and energy price shocks, according to the Global Status Report for Buildings and Construction 2025-2026 released on Tuesday, 19 May 2025 by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC). The report warns that the green transition in construction is failing to keep pace with the rate at which new buildings are being built.

Scale of the Problem

The buildings and construction sector now accounts for nearly 50 per cent of global material extraction, 37 per cent of global emissions, and 28 per cent of global energy consumption. Every day, the world adds an estimated 12.7 million square metres of floor area — roughly equivalent to adding the entire city of Paris in new floor space almost every week. In 2024, the global building floor area expanded by 1.7 per cent, reaching 273 billion square metres, driven largely by construction in emerging economies including India and Southeast Asia.

Key Findings From the Report

The tenth edition of the report assesses progress across seven key indicators covering policies, finance, technologies, and investment aligned with a 2050 net-zero emissions pathway. Among its headline findings: global building energy intensity has reduced by 8.5 per cent since 2015; green building certifications have nearly tripled over the same period; and investment in energy efficiency reached $275 billion in 2024, contributing to a cumulative $2.3 trillion invested since 2015.

However, renewables supplied just 17.3 per cent of buildings' energy demand in 2024 — far below what a net-zero trajectory requires. Critically, since 2020, overall progress has stalled as construction activity has outrun climate action.

What Policymakers Must Do

To align the sector with a net-zero pathway, the report calls on governments to accelerate energy-efficiency improvements and phase out fossil fuels in buildings. Investment in building energy efficiency must reach $5.9 trillion by 2030 — equivalent to $592 billion annually — a figure that dwarfs current spending levels.

Inger Andersen, Executive Director of UNEP, underscored the stakes: 'From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives. 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 said.

Bright Spots Across Regions

The report identifies positive examples globally. The European Union has deployed policies tackling both operational emissions and embodied emissions — those released before and during construction. Japan and Switzerland have improved building energy performance, while Australia, Germany, India, and Pakistan have recorded growth in on-site renewable energy in buildings.

What Comes Next

Published against the backdrop of a global housing and energy affordability crisis, the report argues that climate action in buildings can simultaneously reduce energy bills, improve living conditions, and strengthen resilience to climate shocks. UNEP and GlobalABC have committed to strengthening data systems, refining methodologies, and supporting national policymaking to equip decision-makers with the evidence needed to accelerate action while addressing affordability and equity challenges. With half the world's building stock yet to be constructed or retrofitted by 2050, the decisions made in the next few years will determine whether the sector becomes a climate solution or a long-term liability.