For the first time since 2020, emissions from the global building and construction sector have stopped rising, marking a critical moment in the fight against climate change.

However, a new UN report warns that financial constraints and weak policies could still jeopardize efforts to meet global climate goals.

The Global Status Report for Buildings and Construction 2024-2025, released by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC), highlights the sector’s impact on climate change.

Buildings contribute 34 percent of global carbon dioxide emissions and consume 32 percent of the world’s energy.

While efforts to decarbonize the industry have shown progress, major hurdles remain.

“The buildings where we work, shop, and live account for a third of global emissions and a third of global waste.

The good news is that government actions are working. But we must do more and do it faster,” said UNEP Executive Director Inger Andersen.

The report notes that 2024 is the first year emissions from building construction have been separated from sector growth.

This progress is attributed to mandatory energy codes, improved efficiency standards, and increased use of renewable energy.

Energy intensity in buildings has dropped nearly 10 percent, while the share of renewable energy in total building demand has increased by almost 5 percent.

Despite these advancements, the report points out that half of all newly built structures, particularly in emerging economies, still lack energy codes. Without such policies, the goal of reducing global emissions could remain out of reach.

Construction materials such as cement and steel continue to be a major source of pollution, contributing 18 percent of total emissions.

While solutions like circular construction, energy-efficient retrofitting, and low-carbon materials are being adopted, stronger measures are needed to achieve climate targets.

The UN has urged the world’s largest polluting nations to implement zero-carbon building codes by 2028, with other countries following by 2035.

These reforms are considered vital in meeting commitments made under the COP28 Global Renewables and Energy Efficiency Pledge.

“To keep up with climate goals, building energy efficiency investments must double from $270 billion to $522 billion annually by 2030,” the report states.

It also stresses the need for policies like Extended Producer Responsibility, circular economy programs, and improved workforce training to address financial and skills shortages.

As the UN Climate Change Conference (COP30) in Belem, Brazil, approaches, UNEP and GlobalABC have pledged continued support for governments and businesses working to reduce emissions in the building and construction sector.