By Sharon Atieno Onyango
The carbon emission reduction 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.
This is according to a new report from the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC).
The tenth edition of the Global Status Report for Buildings and Construction (2025-2026) assesses progress across the sector using seven key indicators covering policies, finance, technologies, and investment aligned with global commitments towards a 2050 net-zero emissions pathway.
With the sector accounting for around 37 per cent of global carbon emissions and nearly 50 per cent of global material extraction, the report notes that three main factors are responsible for this stalling.
Among them is that construction is outpacing decarbonization. New floor space is being added faster than energy systems are being cleaned up, cancelling out efficiency gains.
Also, renovation is too slow. Millions of existing buildings remain inefficient and carbon-intensive due to low retrofit rates.
Lastly, fossil fuel dependence persists as heating and cooking are overly dependent on fossil fuels. This reflects weak phase-out policies and low priority given to buildings in national climate strategies.
Further, the report notes that as of January 2026, no country’s nationally determined contributions (NDC) 3.0 included an extensive buildings and construction strategy. This is despite 20 countries already including extensive building-sector strategies in their NDC 2.0 plans by 2024.
“From homes and schools to hospitals and workplaces, buildings play a fundamental role in our lives,” said Inger Andersen, Executive Director of UNEP. “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.”
To align the sector with a net-zero pathway, policymakers should accelerate energy efficiency improvements, and the fossil fuel phase out, while investment in building energy efficiency must reach USD 5.9 trillion by 2030, equivalent to USD 592 billion annually.
UNEP and GlobalABC will continue working to strengthen data, improve methodologies and support national policymaking. These efforts will equip decision-makers with the evidence needed to accelerate climate action while addressing affordability and equity challenges.
