A collaboration between UNEP and GlobalABC serves as an annual review of the progress made by the global buildings and construction industry. This comprehensive report assesses policies, finances, technologies, and potential solutions to align with the objectives of the Paris Agreement. It aims to provide compelling evidence to spur action from policymakers and the construction community.

According to the report, the industry contributes approximately 21% of worldwide greenhouse gas emissions. In 2022, 34% of global energy demand and 37% of CO2 emissions originated from buildings. Despite a modest 3.5% decrease in energy intensity, overall energy demand and emissions increased by roughly 1% compared to 2021.

Looking towards the future, the report strongly advocates for an increase to ten annual decarbonization points by 2030. This is a considerable step up from the six points that have been forecasted since 2015. Moreover, the report pushes for improved policies on energy efficiency and construction carbon emissions. It also encourages governments, industries, and society to strive for a zero-emission, efficient, resilient building sector.

Key findings

1. Challenges Post-Pandemic: Indicates that post-pandemic, the building and construction sector grappled with challenges such as inflation, supply chain issues, and higher interest rates, despite a resurgence in construction activities.
2. Need for Stronger Policies: Advocates for improving building energy efficiency, reducing carbon emissions, and investing in net-zero carbon buildings. It emphasizes cutting operational building emissions by 50% from 2022 to 2030, aligning with the IEA NZE scenario.
3. NDC Changes: Highlights changes in the detail of Nationally Determined Contributions (NDCs) related to buildings since the signing of the Paris Agreement. This indicates a shift in focus towards addressing climate change in the building sector.
4. Alignment with Paris Agreement Goals: The global buildings and construction sector is not currently on track to align with the goals of the Paris Agreement and transition to an efficient, resilient, and net-zero carbon building stock by 2050. This underscores the urgent need for accelerated progress in the sector.

Overview

Chapter 1: Buildings and construction sector in review: A reality check

Offers an in-depth review of the sector, spotlighting present challenges and opportunities. It serves as a reality check on the sector’s current state, underscoring the urgent need for collaborative efforts to tackle sustainability, energy efficiency, and climate change issues within the industry.

1. Post-Pandemic Recovery: The construction sector saw increased activities due to eased supply disruptions and rising housing demand. Yet, inflation and global interest rate hikes have moderated this growth, especially in developing nations like China, Mexico, Indonesia, and India.
2. Global Energy Market Instability: Geopolitical tensions have increased energy market instability, affecting construction. However, despite the difficulties, global attempts like the Buildings Breakthrough at COP28 work towards a net-zero and resilient construction sector.
3. Climate Change Mitigation: Stresses the importance of emission cuts, improved building performance, more renewable energy use, and addressing housing and energy inequalities. Strategic partnerships are key for a global transition to efficient, resilient, net-zero carbon buildings.
4. Policy Recommendations: Underlines the need for improved policies for energy efficiency, carbon emission reduction in construction, and promoting low-carbon practices. National efforts and coalitions are vital for promoting sustainable construction.

Chapter 2: Global buildings and construction status

Explores the current global building and construction situation, highlighting trends, challenges, and opportunities. It emphasizes the need for sustainable practices, energy efficiency, and policy interventions to combat climate change and foster a resilient, efficient built environment.

1. Building Construction Trends: Highlights trends in building construction, noting the social impact across the built environment. It discusses how post-pandemic recovery has increased construction activities driven by housing demand and economic growth.
2. Energy Trends: Discusses trends in energy use within the buildings and construction sector, emphasizing the importance of improving building heating and cooling technologies to enhance energy efficiency. It underscores the need for sustainable energy solutions to reduce carbon emissions.
3. Emissions Trends: Examines emission trends in the building and construction sector, stressing decarbonization challenges. It underscores the requirement for drastic emission cuts to meet global climate objectives and transition to net-zero carbon buildings.
4. Policy Recommendations: Underscores the importance of sustainable buildings and construction policies to drive positive change in the sector. It emphasizes the need for national policies that promote energy efficiency, zero-carbon buildings, and sustainable construction practices.

Chapter 3: Sustainable buildings and construction policies

Underlines the importance of sustainable construction policies and the role of national actions in transitioning to a low-carbon, resilient built environment. It outlines advancements in tackling energy efficiency, carbon emissions, and sustainability in the building sector nationally and globally.

1. Leading National Policies: Highlights the crucial role of national policies in guiding the sustainable transition in the building sector. It notes the global diversity in building policies and the growing number of countries implementing regulations to limit temperature increases to 1.5°C.
2. Building Codes: Tracks building energy codes’ status and alignment towards net-zero or nearly zero carbon emissions. It highlights the importance of modernizing building energy codes to improve energy performance and reduce carbon emissions in the built environment.
3. Nationally Determined Contributions (NDCs): Discusses building commitments under the Paris Agreement’s NDCs, tracking countries’ progress aligning their building energy performance and emission reduction targets with global climate goals. It underscores the need for enhanced commitments to address building energy performance and emissions.
4. Policy Advances: Spotlights notable policy advances in various countries, such as the European Union’s revised Energy Performance of Buildings Directive (EPBD) mandating zero emission standards for new buildings and phasing out fossil fuel boilers. It also mentions India’s Energy Conservation (Amendment) Act, 2022, which introduces carbon-trading schemes and sustainable building codes.

Chapter 4: Investment and financing for sustainable buildings

Highlights the importance of investment and financing in achieving sustainable buildings. This chapter emphasises the critical role of capital mobilization in reducing carbon emissions from the building sector. It presents global trends in energy efficiency investment, discusses the challenges in financing sustainable buildings, and explains the role of financial services in mobilizing capital for this purpose.

1. Energy Efficiency Investment: Discusses global investment trends in energy efficiency for buildings, noting a significant increase in investment to around US$285 billion in 2022. However, projections suggest a potential decline in 2023 due to rising borrowing costs and economic uncertainty, impacting construction activity.
2. Financing Challenges: Addresses the challenges posed by climate change in the buildings sector, emphasizing the need for substantial capital mobilization to decarbonize buildings. It highlights the investment gap in the European Union, where around US$300 billion of additional investment in building renovation is needed annually to achieve climate targets.
3. European Union Case Study: A case study of the European Union’s financing efforts for energy efficiency and zero-carbon buildings is presented. The EU aims to meet its climate targets through substantial investments in building renovation, focusing on leveraging funds from initiatives like the Recovery and Resilience Facility (RRF) to support climate-related expenditure.
4. Role of Financial Services: Emphasizes the importance of the financial services sector in mobilizing capital for sustainable buildings. While public investments play a significant role, the involvement of financial institutions is crucial in bridging the investment gap and supporting the transition to a low-carbon built environment.

Chapter 5: Global Buildings Climate Tracker

Introduces the Global Buildings Climate Tracker (GBCT). This is a tool designed to monitor decarbonization efforts in the global building sector. The chapter underscores the significance of the GBCT in evaluating these efforts. It also emphasizes tracking key indicators to gauge progress towards carbon reduction goals and advancing sustainable building practices.

1. Purpose of the GBCT: Explains that the GBCT was first published in 2020 to track the decarbonization of buildings worldwide. It serves as a composite index comprising seven parts, providing a snapshot of decarbonization efforts from 2015 to the present, with data included up to 2022. The GBCT measures progress against a reference scenario envisioning decarbonization by 2050.
2. Key Indicators: The GBCT integrates various indicators to monitor the impact of decarbonization efforts and actions taken towards decarbonizing buildings. These indicators include CO2 emissions associated with building operations and metrics to assess progress in reducing emissions and advancing decarbonization initiatives.
3. Importance of Tracking Progress: Underscores the importance of tracking progress in decarbonizing buildings to assess the effectiveness of global efforts in reducing carbon emissions from the built environment. By monitoring key indicators and trends, stakeholders can evaluate decarbonization strategies’ success and identify areas for improvement.

Chapter 6: Buildings climate policy gap review

Explores the Buildings Climate Policy Gap Review. This review assesses the progress and challenges in decarbonizing the global building stock. Thus, it offers an in-depth analysis of the challenges and opportunities in this process. It underscores the need for accelerated policy actions, improved energy efficiency measures, and collective efforts to achieve a sustainable and resilient built environment.

1. Decarbonization Progress: Underlines the lack of significant progress in decarbonizing the global building stock, as the Global Buildings Climate Tracker (GBCT) indicates. The gap between the current state and the desired decarbonization path is substantial, with 40 decarbonization points identified in 2022.
2. Key Indicators: Outlines seven indicators used in the GBCT to measure decarbonization efforts against a 2050 target, with a milestone for 2030 progress. These indicators include CO2 emissions from building operations, energy intensity, renewable energy share, energy efficiency investments, green building certifications, NDCs for buildings, and building energy codes.
3. Challenges and Recommendations: Highlights challenges like rising CO2 emissions, inadequate energy reduction, slow progress in renewable energy and green certifications. Stresses the need for rapid execution of effective measures and improved reporting to reach the 2050 decarbonization goal.
4. Policy Actions: Stresses the importance of stronger policies to enhance energy efficiency, address carbon emissions from building materials and construction, and promote low-carbon construction practices. It highlights the necessity for national efforts and coalitions to share best practices and drive the transition to net-zero carbon buildings.

Chapter 7: Deep dive – Adaptation and resilient construction methods

Accentuates adaptation and resilient construction methods to tackle climate change challenges. It stresses the importance of such methods in mitigating climate impact on buildings and underscores the need for sustainable building practices. Furthermore, the chapter advocates for resilient urban planning and innovative solutions to strengthen the built environment against evolving climate challenges.

1. Definition of Adaptation and Resilience: Adaptation, defined as actions to adjust to climate effects and resilience, the capacity to handle hazardous events, are key in addressing climate change impacts on buildings.
2. Climate Change Risks: Underlines the growing risks buildings face from climate change, including overheating, storms, and flooding. It particularly notes the vulnerability of buildings in flood zones, as water can damage structures and electrical systems.
3. Maladaptation Risks: Highlights the risks of poor building practices causing overheating and high energy use, stressing the need for sustainable design to reduce these risks and cut greenhouse gas emissions.
4. Resilient Urban Environments: Emphasizes the vital role of sturdy construction in creating sustainable cities. Discusses economic challenges and informal building methods limiting resilience in developing regions. Highlights major cities’ vulnerability to climate change.

Chapter 8: Deep Dive – Innovations in business cases (renovation and green building construction industry)

Focuses on innovative business cases in the renovation and green building construction industry. This chapter illustrates how innovations like central planning, digitalization, and government support enhance efficiency and sustainability. It also emphasizes the importance of collaboration between industry stakeholders and policymakers to hasten the adoption of these innovative practices.

1. Central Planning and Coordination: Underscores the need for centralized planning in construction and renovation to address root causes. By optimizing coordination, the renovation process becomes more efficient and cost-effective.
2. Digitalization and Standardization: Highlights the role of digitalization, such as 3D scanning and printing, in simulating renovation solutions. These tools allow precise planning, component prefabrication, and efficient renovations, saving time, materials, and labor.
3. Renovation Efficiency: Demonstrates innovative business models that have quickly achieved deep renovations, such as making a building climate-neutral in 22 working days. These success stories highlight the potential for swift, efficient renovation practices via centralized coordination and planning.
4. Government Support: Highlights the role of government policies in spurring construction innovation. Netherlands and Germany’s practices, such as fees for net-zero energy renovations and solar PV tariffs, encourage innovative renovations.
5. Future Outlook: Concludes by emphasizing the potential of future renovation practices through innovative business models and government support. It underlines that innovation in construction is attainable and can lead to sustainable, efficient practices.

Chapter 9: Deep dive – Nature Based Solutions and Biophilic Design

Discusses Nature-Based Solutions (NbS) and Biophilic Design within sustainable architecture and urban planning. This chapter stresses the importance of these solutions and designs in fostering sustainability, resilience, and human well-being in constructed spaces. It also highlights the potential of incorporating nature into architecture to produce healthier, more sustainable, and resilient urban areas.

1. Nature-Based Solutions (NbS): Underscores NbS’s growing role in architecture and urban planning for sustainability. NbS merges human structures with nature for climate control, water purification, and habitat creation, improving air and water quality, supporting biodiversity, and reducing urban heat islands.
2. Benefits of NbS: NbS provides sustainable options like green roofs and constructed wetlands, improving resilience against extreme weather and aiding environmental conservation. However, NbS investments are lower than harmful activities, signifying a need for more support and adoption.
3. Biophilic Design: The chapter explores Biophilic Design, which uses natural elements to foster a bond with nature and enhance well-being, productivity, and learning, especially in healthcare. Its principles focus on creating spaces that boost human health and nature connection.
4. Multidisciplinary Approach: Implementing NbS and Biophilic Design involves a multidisciplinary approach and global standards from groups like the International Union for Conservation of Nature, enhancing sustainable development, climate resilience, and human well-being through nature in architecture and urban planning.
5. Global Impact: The chapter emphasizes recognizing nature as a valuable resource and integrating it into architectural solutions. By leveraging the benefits of natural ecosystems, NbS and Biophilic Design can address societal challenges effectively while providing benefits for human well-being and biodiversity conservation.

Chapter 10: Roadmaps for buildings and construction

Highlights creating and implementing roadmaps for inclusive climate action in the building and construction sectors. It underscores their significance in promoting sustainability and decarbonization. The GlobalABC’s role in providing guidance and tools for governments to create and implement these roadmaps and meet the Paris Agreement’s goals is also highlighted.

1. Climate Action Roadmaps: Emphasizes the need for climate action roadmaps in the buildings and construction sector. These roadmaps guide stakeholders towards sector decarbonization by setting achievable goals and speeding up climate action.
2. Global Alliance for Buildings and Construction (GlobalABC): Under UNEP, UNOPS, and UN-Habitat, GlobalABC is crafting tools and guidance to help governments create climate action roadmaps. Initial trials are in Ghana, Senegal, Bangladesh, and India, with future expansion planned.
3. Importance of Roadmaps: Roadmaps play a crucial role in aligning stakeholders, defining actions, and monitoring progress towards decarbonizing the buildings and construction sector. They provide a structured approach to transitioning to sustainable practices, reducing emissions, and enhancing resilience in the face of climate change impacts.
4. Global Impact: GlobalABC has aided the creation of decarbonization strategies in 34 countries, supporting sustainable building practices to achieve the Paris Agreement goals and combat climate change.
5. Roadmap Implementation Process: Provides a simplified roadmap for climate action, including mobilization, stakeholder engagement, baseline assessment, identification of challenges, prioritization, action plans, and monitoring.

Chapter 11: Buildings Breakthrough

Spotlights the Buildings Breakthrough initiative, aiming for clean technologies and sustainable solutions to be prevalent by 2030. This global effort shifts the building and construction sector towards sustainable, low-carbon, resilient practices. Collaboration, funding, knowledge sharing, and capacity building speed up the transition to net-zero emission and climate-resilient buildings by 2030.

1. Buildings Breakthrough Initiative: Presents the Buildings Breakthrough Initiative. Committed by 28 countries, it targets near-zero emissions and resilient buildings by 2030. This global initiative seeks to fast-track sustainable and low-carbon practices in building and construction.
2. Global Collaboration: The initiative, a collaboration between UNEP/GlobalABC, IEA, the International Renewable Energy Agency, and High-level Climate Champions, annually assesses global progress in the sector. This evaluation aligns with the Global Status Report for Buildings and Construction to monitor sustainable building advancements.
3. Key Actions: The Buildings Breakthrough Agenda proposes key steps such as enhancing global coordination among countries and stakeholders and standardizing definitions, assessments, and certifications for near-zero emissions and resilient buildings to promote global sustainability.
4. Funding and Support: The initiative demands more funds for net-zero carbon building projects and renovations, procurement commitments for such buildings, alliances for low-carbon materials, and clean, efficient heating and cooling technologies for sustainable construction.
5. Knowledge Sharing and Capacity Building: The Buildings Breakthrough Agenda promotes collaboration among nations and businesses to align research, policy goals, and network enhancement. It highlights the need for capacity building, research distribution, and training to transition to sustainable building practices.

Chapter 12: Key recommendations for policymakers and decisionmakers

Provides critical recommendations for policymakers to address the significant delay in the sector’s progress towards net-zero carbon targets by 2050. This section details steps to align the construction industry with global climate goals. These recommendations can enable governments, businesses, researchers, and NGOs to guide the shift to sustainable, low-carbon, and resilient building practices.

1. Urgent Climate Action Roadmaps: Emphasizes the urgent need for governments to develop and enforce climate action roadmaps for buildings and construction. With 161 nations still pending, it is crucial to set clear pathways for decarbonization and resilience in the sector to align with global climate goals.
2. Strengthen Building Energy Codes: Policymakers are advised to strengthen building energy codes to enhance energy efficiency in new constructions and renovations. Despite economic challenges, investments in building decarbonization should be increased to drive sustainable practices and reduce energy consumption.
3. Reduce Embodied Carbon: Policies should aim to reduce embodied carbon in buildings through sustainable practices and materials. Promoting retrofitting existing buildings is also recommended to decrease energy consumption and carbon emissions in the sector significantly.
4. Private Sector Engagement: The private sector is urged to incorporate climate action plans, invest in energy-efficient, net-zero carbon buildings, retrofit for lower emissions, and consider social impacts like equitable housing access and affordability.
5. Role of Researchers and NGOs: Researchers and NGOs are key in crafting climate action plans via evidence-based research. They aid in data framework development, media awareness-building, strategic communications, and policy advocacy, all crucial for decarbonization.
6. Cross-Sectoral Collaborations: Highlights the need for cross-sector collaborations to decarbonise buildings and construction effectively. It stresses aligning research with policy goals and promoting best practices for a sustainable, resilient future.

Transition Verbs

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