Slow Progress, Inadequate Financing Challenge Construction Sector to Achieve Climate Goals

Slow Progress, Inadequate Financing Challenge Construction Sector to Achieve Climate Goals

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The construction sector faces challenges in achieving climate goals due to slow progress and inadequate financing.

Several countries are advancing towards decarbonizing buildings, but slow progress and inadequate financing pose a significant threat to global climate goals.

Challenges to carbon-emitting countries:

• Adopt zero-carbon building energy codes by 2028.
• Follow by all countries by 2035.
• Integrate building code reform plans in NDCs.
• Achieve the COP28 Global Renewables and Energy Efficiency Pledge.

The UN Environment Programme and Global Alliance for Buildings and Construction have released an annual review of the buildings and construction sector, revealing slow progress and financing challenges.

The Global Status Report for Buildings and Construction 2024-2025 emphasizes progress in achieving climate goals and calls for increased ambition in six areas: building energy codes, renewable energy, and financing.

According to the new report, global frameworks and initiatives are pushing for ambitious climate action plans for net-zero buildings ahead of COP30. These include the Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough, and the Declaration de Chaillot, Nationally Determined Contributions (NDCs), for net-zero buildings.

“The buildings where we work, shop, and live account for a third of global emissions and a third of global waste,” said Inger Andersen, Executive Director, UNEP. “The good news is that government actions are working. But we must do more and do it faster. I encourage all countries to include plans to rapidly cut emissions from buildings and construction in their new NDCs.”

The report highlights that 2023 marked the first year where building construction growth was not influenced by the sector’s previously plateaued greenhouse gas emissions.

Mandatory building energy codes, performance standards, and energy efficiency investments have reduced energy intensity by nearly 10% and increased renewable energy share by nearly 5%.

Implementing circular construction, green leases, energy-efficient retrofitting, and low-carbon materials can significantly reduce energy consumption, waste management, and overall emissions.

Despite advancements, the sector remains a significant contributor to the climate crisis, consuming 32 percent of global energy and 34 percent of global
CO2 emissions. It relies heavily on materials like cement and steel, which contribute to 18 percent of global emissions and are a significant contributor to construction waste.

Adopting ambitious energy building codes is crucial, as nearly half of the world’s buildings by 2050 have not yet been constructed. Data shows a decline in effective heat pump installations, and over 50 percent of newly constructed floor space in emerging and developing economies is not covered by building codes.

The report urges major carbon-emitting countries to adopt zero-carbon building energy codes by 2028, followed by all other countries by 2035, to achieve the COP28 Global Renewables and Energy Efficiency Pledge.

Conclusion:

Governments, financial institutions, and businesses must collaborate to double global building energy efficiency investment from $270 billion to $522 billion by 2030, focusing on extended producer responsibility, circular economy practices, and skill development.

UNEP, GlobalABC, and partners will continue supporting countries and businesses in decarbonizing buildings and the entire building value chain, using data to support ambitious NDCs for COP30, UNEP said.

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