ESG & Investing

Global Building Emissions Tick Up as Urbanization Accelerates

Gains in energy efficiency aren’t enough to offset the impact of new construction as built-up areas expand. 

Construction work on a commercial building in Stockholm, Sweden.

Photographer: Erik Flyg/Bloomberg

More than a decade after countries pledged in Paris to curb greenhouse gas emissions, pollution from the day-to-day operation of buildings — including heating, cooling and lighting homes and offices — continues to climb as rapid construction growth overwhelms gains in efficiency and renewable energy.

Buildings’ operational emissions rose 1% in 2024 to 9.9 gigatons of carbon dioxide, according to the Global Status Report for Buildings and Construction 2025-2026, released Tuesday by the United Nations Environment Programme (UNEP) and the Global Alliance for Buildings and Construction. Those emissions have climbed 6.5% since 2015 despite major investments in greener materials and energy-saving technologies.