The global building and construction sector is not reducing emissions quickly enough to meet international climate targets, according to a new report from the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The report warns that growth in construction activity continues to outpace decarbonization efforts, putting the sector’s goal of reaching net-zero emissions by 2050 at risk. Buildings and construction remain among the largest contributors to climate change, accounting for 37 percent of global carbon emissions and nearly 28 percent of global energy consumption.
Construction Growth Outpaces Emissions Reductions
According to the report, operational emissions from buildings increased by 1 percent in 2024, reaching 9.9 gigatonnes of carbon dioxide equivalent. While energy efficiency improvements continue to be made, UNEP says progress is not keeping pace with the rapid expansion of the global building stock.
Global floor space grew by 1.7 percent last year, reaching 273 billion square metres. New buildings are generally more efficient and increasingly incorporate technologies such as solar panels, heat pumps, battery storage systems and advanced building controls. However, the sheer volume of new construction is driving up overall energy demand and generating significant emissions through the construction process itself.
The report concludes that the transition to greener buildings is not advancing quickly enough to offset the emissions associated with new development.
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Fossil Fuels Remain a Major Challenge
UNEP identified continued reliance on fossil fuels as one of the main barriers to progress. The report points to a lack of policies supporting the phase-out of fossil fuel heating and cooking systems, along with tax structures and regulatory frameworks that continue to favour fossil fuel use in many regions.
Renewable energy supplied just 17.3 percent of buildings’ energy demand in 2024, a figure UNEP says remains well below the level needed to align the sector with a net-zero pathway.
To get back on track, the report calls for stronger government action to accelerate building retrofits, expand the adoption of low-carbon technologies and use public procurement to stimulate demand for sustainable construction materials and practices.
Implications for Canada
The findings arrive as Canada continues to invest heavily in green building initiatives, energy-efficient retrofits and low-carbon construction technologies. Recent growth in heat pump adoption, battery storage projects and net-zero building standards reflects a broader push to reduce emissions from the built environment.
However, the UNEP report suggests that countries worldwide, including Canada, will need to significantly increase the pace of retrofits and clean energy adoption if the sector is to meet climate goals. The report estimates that global investment in building energy efficiency must reach US$5.9 trillion by 2030.
UNEP Executive Director Inger Andersen said governments have a critical opportunity to shape the future of construction through stronger policies, building codes and investment strategies, particularly as roughly half of the world’s buildings have yet to be built or renovated by 2050.
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