The appetite for green buildings has softened globally, led by a sharp decline in the Americas as perceived high costs, unclear returns, and shifting priorities amid geopolitical instability hinder investment in sustainability in the building sector, found a study by the Royal Institution of Chartered Surveyors (RICS).

Based on insights from more than 3,500 real estate and construction professionals across 36 countries, the report reveals that while sustainability remains on the agenda in the sector, progress in embedding green practices – particularly carbon measurement – is stagnating.

Almost half (46 per cent) of construction professionals surveyed said they do not measure embodied carbon in projects – a figure that has risen over the past year. Only 16 per cent said that carbon data meaningfully informs material choices.

The built environment is responsible for nearly 40 per cent of global carbon emissions, with embodied carbon – that is, the emissions released during the mining, manufacturing, and construction of a building – expected to account for half of all new construction emissions between now and 2050.

RICS warned that without mandatory whole-of-life carbon assessment and reporting, the sector will not achieve decarbonisation targets. The World Green Building Council has recommended that by 2030, all new projects globally should achieve at least 40 per cent embodied carbon reductions and all new buildings have net zero embodied carbon emissions by 2050.

Across Asia Pacific, survey respondents reported slower demand growth for green and sustainable real estate compared to previous years. This softening mirrors global trends, as the Americas saw the sharpest decline, while demand in Europe also cooled. The Middle East and Africa (MEA) was the only region where green building demand strengthened.

Despite the softening, 40 per cent of respondents globally still report rising occupier and investor demand for sustainable buildings. However, fewer than 10 per cent see a “significant” increase, and roughly 60 per cent report no change.

The report links the decline mainly to “changing political attitudes and policy focus” driven by the US, coupled with weak commercial property cycles.

Read the full article about sustainability in the building sector by Robin Hicks at Eco-Business.