Housing Crisis Compounded By Poor Decarbonization In Construction Industry:UN

NEW DELHI-Decarbonization of the buildings and construction sector has slowed, leaving it a major source of greenhouse gas emissions and increasingly vulnerable to climate impacts and energy price shocks, according to a new report released on May 19 by the United Nations Environment Program (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 progress in the sector using seven key indicators covering policies, finance, technologies and investment aligned with global commitments toward achieving net-zero emissions by 2050.

Published amid a global housing and energy affordability crisis, the report said climate action in buildings can help reduce energy bills, improve living conditions and strengthen resilience to climate impacts, while also cutting greenhouse gas emissions.

“From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives,” said Inger Andersen, Executive Director of the United Nations Environment Programme.

“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,” Andersen said.

According to the report, the world is adding an estimated 12.7 million square meters of floor area every day, roughly equivalent to constructing the entire city of Paris in new floor space nearly every week.

In 2024, the global building floor area expanded by 1.7 per cent to reach 273 billion square meters, with much of the growth driven by construction activity in emerging economies, including India and countries in Southeast Asia.

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, the report noted.

It added that since 2015, global building energy intensity — which measures annual energy consumption relative to building size — has declined by 8.5 per cent, while green building certifications have nearly tripled.

However, the report said renewable energy supplied only 17.3 per cent of buildings’ energy demand in 2024, far below the level required to achieve a net-zero pathway.

Investment in energy efficiency reached $275 billion in 2024, contributing to cumulative investment of $2.3 trillion since 2015, according to the report.

The report noted that progress has slowed since 2020 because the pace of green transition measures has failed to match rapid global construction growth.

To align the sector with a net-zero pathway, policymakers should accelerate energy-efficiency improvements and phase out fossil fuels, while investment in building energy efficiency must reach $5.9 trillion by 2030, equivalent to $592 billion annually, the report said. (IANS)