Building Green: Sustainable Construction in Emerging Markets

Construction value chains, including the construction and operation of buildings as well as production of materials such
as steel and cement, account for approximately 40 percent of energy and industrial-related CO2 emissions globally. Two-thirds
of this can be attributed to emerging markets, and this contribution will grow substantially as growing populations, urbanization, and
rising incomes drive demand for better housing and commercial buildings.

How developing countries meet their rising building needs will be pivotal to the world’s climate future. The good news is that the
projected emissions growth in construction value chains can be reduced significantly with the application of existing technologies, new financing
instruments, and the implementation of appropriate policies. Even as emerging economies meet the rising demand for residential and
commercial buildings, it is possible to reduce total emissions from the sector below today’s level by 2035. To avoid perpetuating the status
quo, decisive action is needed by policymakers, developers, construction material producers, financiers, and international development institutions.