Energy & Climate
‘We are not powerless’
British way of life under threat from heat, flooding and drought, warns Climate Change Committee – but solutions exist.
21 May 2026
Decarbonisation of the buildings and construction sector has slowed, leaving it both a major emissions source and increasingly vulnerable to climate impacts and energy price shocks, according to a new report from the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The 10th edition of the ‘Global Status Report for Buildings and Construction’ (2025-2026) assesses sector-wide progress aligned with global commitments to a 2050 net-zero emissions pathway.
Published amid a global housing and energy affordability crisis, the report highlights how climate action in buildings can reduce energy bills, improve living conditions and strengthen resilience to climate impacts, while cutting greenhouse gas emissions.
‘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.’
INGER ANDERSEN
Executive Director of UNEP
Every day, the world builds an estimated 12.7 million square metres of floor area – roughly the equivalent of adding the entire city of Paris in new floor space nearly every week.
In 2024, the global buildings floor area expanded by 1.7%, reaching 273 billion square metres.
This rapid growth was driven largely by construction in emerging economies, including India and Southeast Asia.
The buildings and construction sector now accounts for nearly 50% of global material extraction, 37% of global emissions and 28% of global energy consumption.
The report notes that since 2015, global building energy intensity – the measure of a building’s annual energy consumption relative to its size – has reduced by 8.5% and green building certifications have nearly tripled.
Investment in energy efficiency reached $275 billion in 2024, contributing to cumulative investment of $2.3 trillion since 2015.
Yet in 2024, renewables supplied just 17.3% of buildings’ energy demand, far below what is needed for a net‑zero pathway.
Since 2020 progress has slowed, as the green transition has not kept pace with the rate of construction. To align the sector with a net-zero pathway, the report notes that policymakers must accelerate energy efficiency improvements and the fossil fuel phase out. At the same time investment in building energy efficiency must reach $5.9 trillion by 2030, equivalent to $592 billion annually.
The report highlights positive examples across regions. The European Union deployed policies tackling operational emissions and emissions released before and during construction (embodied emissions).
There have also been improvements in building energy performance in Japan and Switzerland, and growth in on-site renewables in buildings in Australia, Germany, India and Pakistan.
Building energy codes have been updated in California, Kenya, Japan and Singapore and green building certification has expanded in China, Colombia, India and Türkiye.
Bangladesh, India, Indonesia, Jordan, Ghana and Senegal have put in place national roadmaps to support sector transformation, and there has been a growth in investment and financing for sustainable buildings in Canada, New Zealand and the United Kingdom.
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