Global Building Sector Begins Decoupling Growth from Emissions
UNEP-GlobalABC report highlights “partial decoupling” as building sector growth outpaces emissions, but warns policy gaps and fossil fuel dependence may slow net-zero progress.
Amid the global housing crisis and rising energy costs, a new report reveals a significant shift in the buildings sector: while it still accounts for 37% of global carbon emissions, the industry has achieved a stage of “partial decoupling.”
According to a joint report by the UN Environment Programme and the Global Alliance for Buildings and Construction, decarbonisation in the buildings and construction sector has slowed. This leaves the sector both a major contributor to emissions and increasingly exposed to climate risks and volatile energy prices.
Released during a period marked by global housing shortages and affordability challenges, the report highlights that climate-focused interventions in buildings can lower energy bills, improve living standards, and enhance resilience to climate impacts—all while reducing 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 UNEP. “They can either lock in climate risks or provide safer, healthier, and more affordable living conditions. With half of the world’s buildings yet to be constructed or renovated by 2050, governments have a crucial opportunity to promote zero-emission, resilient construction through stronger policies, codes, and investments.”
Globally, construction activity continues at a massive scale. Every day, approximately 12.7 million square metres of new floor area is added—equivalent to building a city the size of Paris nearly every week.
In 2024, global building floor area expanded by 1.7%, reaching 273 billion square metres. This growth has been largely driven by emerging economies such as India and Southeast Asia. Today, the sector accounts for nearly 50% of global material extraction, 37% of emissions, and 28% of total energy consumption.
Encouragingly, recent data shows that construction activity is growing much faster than its carbon footprint. However, this progress risks slowing due to continued dependence on fossil fuels and insufficient policies promoting low-carbon materials and energy-efficient buildings.
The 10th edition of this flagship report assesses whether the global buildings sector is on track to achieve net-zero emissions by 2050. It reviews advancements in energy efficiency, renewable energy adoption, embodied carbon reduction, investment patterns, and regional trends.
At a time of rising global housing and energy costs, the report underscores that climate action in buildings can simultaneously reduce expenses, improve quality of life, and strengthen resilience to climate change.
Key Takeaways
Energy Efficiency Driving Progress
For the first time, the report notes that while global floor space increased by 20% over the past decade, energy demand rose by only 11%. This indicates that building codes and efficiency measures have helped stabilise energy consumption, though further acceleration is needed.
Tackling the “Lock-In” Risk
With construction equivalent to five cities the size of Nairobi added in 2024 alone, emissions embedded in traditional materials like cement pose a serious challenge to climate targets. The report stresses the need for “whole-life carbon” policies and increased adoption of sustainable materials such as timber and recycled industrial byproducts.
Policy, Not Technology, as the Main Barrier
Technologies required for decarbonisation—such as high-efficiency heat pumps and rooftop solar—are already available and proven. However, the sector remains stuck in pilot phases due to policy gaps. Stronger regulatory frameworks are needed to scale these solutions and make energy-efficient buildings the norm.
India-Specific Insights
Rapid Expansion
India is adding building space equivalent to two Delhis every year. The construction sector recorded an 11% growth between 2024 and 2025, reaching a valuation of USD 210 billion.
Solar Growth Momentum
Under the PM Surya Ghar initiative, rooftop solar capacity expanded significantly—from 1.7 GW in 2023 to 4.9 GW in the first nine months of 2025, marking a 161% year-on-year increase.
Stronger Energy Codes
The 2024 Energy Conservation and Sustainable Building Code aims to deliver 20–50% energy efficiency improvements compared to conventional commercial buildings, signalling a major push towards sustainable construction in India.
The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy
