The building sector is becoming more energy efficient – yet still falling short of climate goals.

The new UNEP “Global Status Report for Buildings and Construction” highlights a key dilemma: while emissions per square metre are declining in many places, construction worldwide is expanding faster than buildings are being decarbonised. At the same time, energy retrofits are still progressing far too slowly.

This matters because buildings and construction account for more than one third of global CO₂ emissions. To achieve climate neutrality by 2050, operational building emissions would need to fall by more than half by 2030, while the share of renewable energy in the sector would need to grow four times faster than today.

The report also shows that progress happens where policy provides long-term direction, supports investment and steadily reduces dependence on fossil fuels. The technologies already exist – what matters now is the speed of implementation.

The authors therefore call for more climate-friendly and affordable housing, faster renovation rates, greater use of low-carbon materials, better urban planning and a much stronger expansion of renewable energy. More efficient buildings could not only reduce emissions, but also permanently lower energy costs and strengthen resilience to climate risks – especially for lower-income households.