When we talk about net-zero in the Asia-Pacific (APAC) region, one of the biggest pieces of the puzzle is the built environment. Simply put, this means making sure our buildings and infrastructure are designed, built, and operated in ways that reduce their environmental impact. Think energy efficiency, low-carbon materials, and smarter urban planning.
Why does this matter so much? Because buildings and construction are responsible for a huge share of greenhouse gas emissions. As APAC’s cities grow and economies expand, the way we build and manage our urban spaces will determine how quickly we can reach our net-zero goals. Today, we’ll break down the built environment’s carbon footprint, the commitments APAC governments are making, and the key strategies that are reshaping construction and urban planning.
Buildings are often called the "low-hanging fruit" in the fight against climate change, mainly because there’s so much room for efficiency improvements. And in APAC, the stakes couldn’t be higher.
In 2018, buildings in major APAC economies accounted for 27% of total final energy consumption. Globally, if you count both building operations and the materials used in construction (like cement and steel), the built environment contributes about 39% of energy-related emissions. And with urbanization booming in APAC, those numbers could climb even higher—unless we make serious changes now.
The good news? Every improvement in efficiency and every green building we construct makes a real dent in national emissions totals. That’s why decarbonizing buildings is a major priority.
Most APAC governments recognize the need to act. As of 2022, 39 out of 49 countries in the region have committed to carbon neutrality or net-zero goals. These pledges typically target mid-century—Japan, South Korea, and Malaysia aim for 2050, while China and Indonesia are aiming for 2060.
But these goals won’t be achievable without greening the built environment. Governments are already rolling out building-specific policies to help drive progress. For example:
These policies signal strong top-down support for changing how we construct and manage buildings—but real impact will come from action on the ground.
Creating a sustainable built environment requires collaboration across multiple sectors—construction materials, urban planning, and building management all play a role.
Cement and steel are major emissions culprits. Cement production alone emits 2.5 billion tonnes of CO₂ each year (about 7% of global emissions), and China alone produces 60% of the world’s cement. That means finding cleaner alternatives is crucial.
Solutions include:
Urban planners and architects are stepping up to design buildings that use less energy in the first place. Simple design choices—like better insulation, natural ventilation, and solar panels—can dramatically cut a building’s carbon footprint.
There’s also a huge investment opportunity here. The International Finance Corporation estimates that emerging economies need $1.5 trillion in green building investments to keep up with demand. Governments are helping move the needle by offering tax breaks and incentives. For instance:
The built environment is sometimes called the "front line" of climate action in APAC—and for good reason. Buildings last for decades, meaning choices made today will shape emissions for generations. By prioritizing sustainable design and low-carbon construction, the region can prevent carbon-intensive infrastructure from being locked in.
But beyond cutting emissions, going green offers real benefits: lower energy costs, cleaner air, and better climate resilience. Of course, challenges remain, from financing the higher upfront costs of green construction to training workers in new building techniques. However, given that nearly half of the world’s construction activity this decade will happen in APAC, the region has the power to reshape the future.
With strong policy support, growing market demand, and climate tech innovation accelerating, the momentum is there. Now, it’s about turning ambition into action—and making sure APAC’s built environment moves from being a major emitter to a major part of the solution.