LET’S BUILD SMARTER – Consumers Association Penang

*The buildings and construction sector accounts for 32% of global energy consumption and 34% of carbon dioxide emissions. (Pic credit: AFP)*

How Buildings Contribute to Climate Change – and What Can Be Done about it

The building and construction industry is a big emitter of planet-warming greenhouse gases, according to the latest UNEP and Global Alliance for Buildings and Construction report.

The amount of building floor space is expected to double by 2050, with many of the additions coming in developing and emerging economies. These homes, offices, warehouses and other structures are important, experts say, especially in a rapidly growing and urbanizing world. But their construction and operation account for one-third of planet-warming greenhouse gas emissions, finds the 2024-2025 Global Status Report for Buildings and Construction, published by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction.

Here are 5 things you should know about the buildings and construction sector, and its role in climate change.

1. The building and construction industry is a big emitter of planet-warming greenhouse gases. The sector accounts for 32% of global energy consumption and 34% of carbon dioxide emissions, finds the Global Status Report. That is more than transport and agriculture.

2. Building energy codes can help reduce emissions but they need to be twinned with other policies. A growing number of countries are using building codes as a cost-effective way to reduce the carbon dioxide emissions that come from the operation of buildings.

Some 85 countries now have these codes, which cover things such as energy efficiency and the use of renewable energy. But of nearly 51 billion square metres of floor space newly constructed in emerging and developing economies, over 50% remains uncovered by building codes.

3. The world needs to embrace building materials that are more climate friendly. Many building-related emissions come from the extraction of natural resources used for construction. As well, the production of materials like cement and steel is responsible for 18% of building-related carbon dioxide emissions.

To change that, countries need to develop a more circular construction industry. In practical terms, that can mean using recycled construction materials and retrofitting instead of demolishing older buildings.

The construction industry needs to shift wherever possible to low-carbon building materials, such as sustainably sourced bricks, bamboo and agricultural waste, like straw. “At the same time, the world must radically decarbonise conventional materials, such as concrete, steel, aluminium and cement,” says Gulnara Roll, Chief of UNEP’s Climate Change Mitigation Branch.

4. Traditional building practices can also help reduce emissions. Traditional building practices have a lot to offer, particularly in countries in the African region where 70% of the building stock expected by 2040 has not yet been constructed. Africa as a region is rich in sustainable materials – from bamboo to termite mound soil – and has a long history of using construction techniques that provide natural heating and cooling, saving money and energy.

These traditional methods lower energy use and help re-enforce the cultural heritage of communities, says Roll. “They are a win-win, which is exactly the type of thing the world needs right now, given how quickly the building and construction sector is growing.”

5. Investing in zero-emission and climate-resilient buildings can generate jobs and profits. Efficient buildings are one of the biggest investment opportunities across emerging-market cities, as they will be worth an estimated US$24.7 trillion by 2030. For every US$1 million invested in retrofits and efficiency measures in new construction, an estimated 9 to 30 jobs are created.

Investing in climate-resilient infrastructure and buildings now also saves money in the long run. UNEP’s Roll says that building higher flood defences, stronger homes, or smarter grids greatly reduces the economic fallout from storms and wildfires.

As well, energy efficiency measures could save households globally US$201 billion annually by 2040 on electricity and gas, according to the International Energy Agency. Builders also benefit from higher property values when buildings meet green certification and labelling requirements that align with energy codes.

Source: UN Environment Programme (30 April 2025)