The construction sector in Mexico is a fundamental pillar of the national economy. It accounts for approximately 7% of the gross domestic product (GDP) and employs around 4.5 million people. The construction market in Mexico is estimated to grow at a compound annual growth rate (CAGR) of 2.5% between 2025 and 2034, according to expert reports.

Not only is the construction sector crucial to urban development, but it also faces a significant challenge: the need to adopt sustainable practices. With growing urban development and demand for infrastructure, the opportunity arises to transform construction with a more responsible and energy-efficient model.

In this context, GBCI Mexico, PEEB Cool, SUMe and THREE Environmental Consulting collaborated in the development of the Green Financing Guide for Sustainable Buildings. This resource seeks to connect the financial and construction sectors, promoting the use of financial instruments that facilitate the development of sustainable buildings. The guide is presented as an essential tool for builders, developers and other stakeholders, providing access to clear information on green financing options and compiling case studies and success stories that demonstrate the economic benefits of such practices.

Main objectives

The guide has two main objectives: to boost the development of sustainable buildings through the promotion of green financial instruments and to encourage the creation of financial models that accelerate the sustainable building market in Mexico. This effort is crucial, considering that the construction sector is one of the largest consumers of natural resources, energy and generators of waste.

In addition, the guide details the current situation in Mexico regarding the applicable legislation and sustainable taxonomy, as well as how sustainable building certifications complement the available financial instruments. It includes a compendium of financing tools, an overview of the process for obtaining green financing and relevant contacts for evaluating projects.

Participants

The guide was developed with the participation of eight commercial entities, Banorte, BBVA Mexico, Banco Inmobiliario Mexicano (BIM), HSBC, Mifel, Sabadell, Santander and Scotiabank, and three development banks, Bancomext, International Finance Corportation (IFC) and NAD Bank, as well as important Mexican organizations that have benefited from green finance instruments such as Fibra Uno, Fibra Macquarie and Vinte and other confidential participants.

The guide will be updated annually, with the aim of reflecting market developments and increasing the participation of financial institutions. This initiative represents a significant step toward the integration of sustainable practices in the urban development of Mexico, contributing to the creation of more resilient and responsible communities.

In 2024, the Global Alliance for Buildings and Construction (GlobalABC) continued to strengthen its position as the leading global platform for a zero-emission, efficient, and resilient built environment. Membership rose to 339, including 42 countries—with a 19% growth from low- and middle-income countries—while the Alliance expanded its impact through high-level convenings, strategic partnerships, and the launch of the Intergovernmental Council for Buildings and Climate (ICBC). From publishing flagship reports and roadmaps to coordinating COP29’s Buildings Pavilion and mobilizing private sector action, GlobalABC is driving systemic change across the buildings sector worldwide.

The 2024 Building and Climate Global Forum Report serves as a valuable resource for reflection and action in the field of buildings and climate. This major event brought together over 1,500 participants from more than 70 countries, fostering dialogue among international experts, government representatives, and private sector leaders.

With a strong focus on innovation, research, and education, the report captures key insights from the plenary and parallel sessions. A dedicated team of experts, students, and alumni contributed to summarizing discussions, ensuring the dissemination of critical knowledge on sustainable development challenges in the built environment.

This initiative was made possible through the collaboration of ADEME (The French Agency for Ecological Transition), École nationale des ponts et chaussées and the Global Alliance for Buildings and Construction (GlobalABC), and the commitment of nearly 50 rapporteurs, whose contributions played a crucial role in the success of this project. The report stands as a testament to collective efforts in advancing sustainable solutions for the buildings and construction sector.

The Global Status Report for Buildings and Construction (Buildings-GSR), published by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC), provides an annual snapshot of the progress of the buildings and construction sector on a global scale. The Buildings-GSR reviews the status of policies, finance, technologies and solutions to monitor whether the sector is aligned with the Paris Agreement goals.

The Global Status Report for Buildings and Construction 2024-2025 - Not just another brick in the wall highlights progress made on related global climate goals and calls for greater ambition on six challenges, including building energy codes, renewable energy, and financing. Global frameworks and initiatives such as Intergovernmental Council for Buildings and Climate, the Buildings Breakthrough and the Declaration de Chaillot are sustaining momentum towards adopting ambitious climate action plans, Nationally Determined Contributions (NDCs), for net-zero buildings ahead of the UN Climate Change Conference (COP30) in Belem, Brazil.

Despite this progress, the sector remains a key driver of the climate crisis, consuming 32 per cent of global energy and contributing to 34 per cent of global CO2 emissions. The sector is dependent on materials like cement and steel that are responsible for 18% of global emissions and are a major source of construction waste.

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Since its launch at COP 26, the Breakthrough Agenda has become established as an annual collaborative process centred around the Conference of the Parties (COP) meetings of the United Nations Framework Convention on Climate Change (UNFCCC). It is currently supported by 59 countries representing over 80% of global GDP, and by over 100 initiatives working to enhance collaboration within major emitting sectors. Countries can endorse Breakthrough goals to make clean technologies and sustainable practices more affordable, accessible and attractive than their alternatives by 2030 in the power, road transport, hydrogen, steel, cement, buildings and agriculture sectors. This report covers six of the seven sectors, with agricultural covered in a separate report.

The Breakthrough Agenda establishes an annual cycle to track developments towards these goals, identify where further coordinated international action is urgently needed to accelerate progress and then galvanise public and private international action behind these specific priorities in order to make these transitions quicker, cheaper, and easier for all.

To initiate this cycle, world leaders tasked the IEA and the UN Climate Change High Level Champions to develop an annual Breakthrough Agenda report to provide an independent evidence base and expert recommendations for where stronger international collaboration is needed.

This document, the 2024 Breakthrough Agenda Report, is the third of these annual reports. It provides an assessment of progress against the recommendations made last year, updating recommendations for what more needs to be done.

This year's report includes the second edition of the Buildings Chapter, developed in collaboration with the GlobalABC. The chapter highlights progress in the built environment and calls on governments to strengthen collaboration, in five priority areas: standards & certification, demand creation,  finance & investment, research & deployment, capacity & skills– to accelerate decarbonisation and enhance resilience in buildings. 

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Following the “build back better” principle, BPIE presents in this report six investment criteria to guide a sustainable reconstruction of Ukraine's heavily damaged built environment. The report calls on multilateral donors and the Ukrainian government to allocate funding to projects that meet ambitious energy efficiency, renewable energy, climate adaptation, and circularity criteria.

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The Global Status Report for Buildings and Construction (Buildings-GSR), a report published by the UN Environment Programme (UNEP) and the Global Alliance for Buildings and Construction (GlobalABC), provides an annual snapshot of the progress of the buildings and construction sector on a global scale. The Buildings-GSR reviews the status of policies, finance, technologies, and solutions to monitor whether the sector is aligned with the Paris Agreement goals. It also provides stakeholders with evidence to persuade policymakers and the overall buildings and construction community to take action.

As outlined in the latest edition, the buildings and construction sector contributes significantly to global climate change, accounting for about 21 per cent of global greenhouse gas emissions. In 2022, buildings were responsible for 34 per cent global energy demand and 37 per cent of energy and process-related carbon dioxide (CO2) emissions.

Policy progress is evident with more comprehensive climate action plans covering buildings and construction in Nationally Determined Contributions (NDCs). However, few align with net-zero operational emissions, and while over 81 countries have building energy codes, many are outdated.Investment in building decarbonisation exceeded US$285 billion in 2022 but is expected to decline in 2023, largely due to a less favourable investment environment due to rising costs. The necessary increase in investments falls short of the net-zero targets for new and existing buildings by 2030 and 2050, respectively.

The 2022 update of the Global Buildings Climate Tracker (GBCT) paints a concerning picture: the gap between the current state and the desired decarbonisation path is significant. To align with the 2030 milestone, an annual increase of ten decarbonisation points is now required, a substantial jump from the six points anticipated per year starting in 2015.

The GBCT shows a negative rebound since 2020 in the decarbonization of the buildings sector, with increased energy intensity and higher emissions. The gap between the actual climate performance of the sector and the necessary decarbonization pathway is widening. The lack of structural or systemic decarbonisation improvement in the building sector leaves its emissions reductions vulnerable to external factors.

To reach the goals of net-zero carbon emission buildings for new buildings by 2030 and existing buildings by 2050, stronger policies are needed to enhance energy efficiency and address carbon emissions from building materials and construction. National efforts are crucial, with countries forming coalitions to share best practices and promote low-carbon construction.

This year, the deep dive chapters are the following: Adaptation and resilient construction methods; Innovations in business cases (renovation and green building construction industry); and Nature-based solutions and biophilic design.

A welcome development in 2023 was the Buildings Breakthrough launched at COP28, to coordinate between countries to make clean technologies and sustainable solutions in the buildings and construction sector the most affordable, accessible, and attractive option in all regions by 2030.

Looking forward to 2024, the focus must be on tangible emission reductions, enhancing building performance, increasing renewable energy use and addressing housing and energy access disparities. Despite the complexities, strategic partnerships can facilitate the shift to an efficient, resilient and whole life net-zero carbon global building stock.

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The factsheet introduces the Implementation of the EU Taxonomy in the built environment and the link between NZEB and the EU Taxonomy The EU Taxonomy for the construction, acquisition and ownership of buildings requires the disclosure of a building’s primary energy demand (PED) as per the Energy Performance of Buildings Directive (EPBD) of 2010.

It was suggested that the European Commission and Member States should agree on a more harmonized definition of a major and deep renovation. The EU Commission should add embodied carbon assessments for the construction of a building, the demolition and rebuilding of a building, and the renovation/retrofitting of a building to allow comparability. Member States should provide further incentives for investors to choose energy renovation over construction.

Check the full factsheet here.

The Cooling Web is a guidance document and a compilation of case studies that bring out a range of cooling solutions that are diverse and comprehensive and do not rely on conventional energy-guzzling practices. This involves measures to enhance microclimate, thoughtful designs for building envelopes, judicious selection of material, and context-specific cooling approaches.

India is witnessing rising frequency and intensity of heat waves. This is making our cities sear and pushing the built environment community to rethink how to plan and design buildings and cities. This momentum is strongly linked with the India Cooling Action Plan 2019 and its very important goal of thermal comfort for all. The Union government and a few state governments are taking strides to achieve this goal by developing thermal comfort standards and action plans, adopting energy conservation building codes, and other initiatives like cool roof programmes. However, the degree of success lies in the scaled-up implementation of cooling strategies.

The 10 case studies in the volume 1 carefully selected from across the country—with five deep dives—highlight how thermal comfort can be achieved by a combination of passive and active cooling measures. This approach reduces cooling energy demand tremendously and addresses cooling equity. These solutions blend traditional wisdom on passive design with modern techniques and provide optimized solutions so that energy consumption is minimized. These solutions are also a guide toward achieving a rational and climate-appropriate cooling ecosystem that not only ensures resource efficiency but also maintains thermal comfort for building occupants.

Please read the report here.

The Building Energy Codes Working Group has released their latest report on Resilience Issues in Building Energy Codes, led by the Australian Government.

The report, authored by Adam Hinge, MD of Sustainable Energy Partnerships and prepared for the International Energy Agency’s (IEA) Building Energy Codes Working Group (BECWG), which is part of the IEA Energy in Buildings and Communities Technical Collaboration Programme (IEA EBC), focuses on the application of building energy codes to improve the building stock’s ability to provide safe indoor thermal conditions and function during extreme events. It reviews the relationship of building energy codes to other building resilience policies and strategies, such as other building/life safety codes, community planning, zoning or other land use regulation to discourage rebuilding in areas most prone to climate disasters, and other resilience planning strategies. The report provides an overview of how different jurisdictions address resilience issues through building energy codes in countries that are part of the IEA EBC Building Energy Codes Working Group.

Read the full report here.