India’s Construction Sector Growth and Global Decarbonisation Challenges

India's construction sector exhibited significant growth, driven by strong public and private investment. However, this expansion poses challenges in the context of global decarbonisation efforts, as elaborated in the 10th Global Status Report for Buildings and Construction (GSRBC) by UNEP and GlobalABC.

Key Growth Statistics

• India's construction sector grew at an annual rate of 11% between 2024 and 2025, reaching a valuation of around $210 billion.
• India contributed significantly to the global building floor area, which reached 273 billion square meters in 2024, growing by 1.7%.
• Inflation in India's construction sector was at 5%-6%, attributed mainly to labor shortages.

Environmental Concerns

• Buildings and construction account for 37% of global carbon emissions, 50% of global material extraction, and 28% of global energy consumption.
• Operational emissions from buildings rose by 6.5% between 2015 and 2024, contrary to the required 31.6% reduction for aligning with a net-zero pathway by 2050.
• Embodied emissions from materials like cement, steel, and aluminum accounted for 9% of global emissions in 2024.

Indian Initiatives and Innovations

• The Energy Conservation and Sustainable Building Code 2024 aims for 20-50% efficiency improvements in commercial buildings.
• India's rooftop solar capacity increased significantly, with the addition of 3.2 GW in 2024 and 4.9 GW in the first nine months of 2025.
• The Indian Green Building Council and GRIHA have collectively registered over 22,489 projects, covering significant floor space.

Global and National Policy Recommendations

• Renewables met 17% of global buildings' energy demand in 2024, below the 46% target by 2030.
• There is a call for G20 nations and at least 75 other countries to include comprehensive built environment strategies in their NDCs by 2030.
• Closing the investment gap requires an additional $3.6 trillion by 2030 to align with net-zero goals.

Broader Implications

The report highlights the Belém Call for Action, emphasizing that climate change exacerbates the housing crisis by raising costs and energy demands, thus widening affordability gaps for low-income households.