Building sector decoupled growth from emissions in 2023 – but decarbonisation remains off track

2023 was the first year when the growth of building construction around the world was decoupled from associated emissions, according to a new UN Environment Programme (UNEP) report.

UNEP and the Global Alliance for Buildings and Construction (GlobalABC), who jointly published the Global Status Report for Buildings and Construction 2024-2025, found that the sector’s energy intensity has reduced by almost 10% thanks to mandatory net zero-aligned building energy codes and performance standards, as well as energy efficiency investments.

Still, emissions from building operations have increased by 5.4% since 2015, instead of the necessary 28.1% decrease – suggesting that building decarbonisation remains woefully off track.

“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. I encourage all countries to include plans to rapidly cut emissions from buildings and construction in their new NDCs.” 

Increasing renewable energy and heating adoption

The report highlights notable progress in specific areas. For example, renewables made up 17% of total buildings energy demand in 2023, and many building firms are converting their heating and cooling systems to renewable sources (IKEA is one example).

In addition, green building certifications have grown significantly, with 20% of new commercial buildings in OECD countries achieving certification in 2023, up from 15% in 2020. 

Circular construction practices including material reuse and modular building are also gaining traction, with recycled materials accounting for 18% of construction inputs in Europe. But the sector remains dependent on highly polluting materials like cement and steel, which are responsible for 18% of global emissions.

Call for greater government action

Upon publishing their findings this week, UNEP and GlobalABC called for greater government ambition, particularly around building energy codes – specifically the adoption of zero-carbon building energy codes by high-emitting countries by 2028 – as well as renewable energy and financing. 

The organisations warn that global building energy efficiency investment needs to double, from US$270 billion to US$522 billion by 2030 in order to meet the goals of the Paris Agreement. 

“Adoption of Extended Producer Responsibility measures, and circular economy practices - including longer building lifespans, better material efficiency and reuse, recycling, passive design, and waste management - are key to help bridge gaps in financing, while workforce development programmes are essential to fill skill gaps in the sector,” they added.