Decreased Demand for Sustainable Structures

According to the Royal Institution of Chartered Surveyors (RICS), building occupiers and investors in North America and South America are reporting a notable decline in the demand for green commercial buildings. The survey indicates that this shift is closely related to changes in U.S. government policy. While demand for green buildings declined globally, the decrease was more pronounced in the U.S.

Environmental Impact of Building Emissions

Residential and commercial properties accounted for 34% of global carbon emissions in 2023, as reported by the UN Environment Programme. Most of these emissions stemmed from heating, cooling, and powering buildings, with roughly 20% originating from construction activities. The UN has emphasized the urgent need for accelerated action in the building sector to achieve global climate objectives.

Barriers to Growth in Green Construction

Despite the known benefits of green buildings—including reduced environmental impact through improved materials, water usage, and energy efficiency—many construction professionals are reporting stagnation in demand. Nicholas Maclean, acting president of RICS, noted that while many building occupants prioritize sustainability, the current market dynamics may be reflective of deeper issues.

“The ongoing shift may be a temporary blip. However, it’s essential for builders to recognize that sustainable buildings attract higher rents and are increasingly favored by large corporate tenants,” he stated.

Civic Engagement and Future Prospects

Although a larger portion of U.S. respondents still shows interest in sustainable building practices, those reporting increased demand has sharply decreased from 25% to 11%. In contrast, the balance of professionals outside North and South America reporting growth in demand remains at 40%, despite an overall decline from 48% in 2021.

Kisa Zehra, a sustainability analyst at RICS, emphasized that government policy significantly affects market confidence. The previous administration’s deregulatory approach has shaken trust in sustainability standards, potentially hindering progress in election reform and civic engagement concerning environmental issues.

Importance of Embodied Carbon Measurement

RICS reports a concerning reduction in the number of construction professionals actively measuring their projects’ embodied carbon, particularly emissions from materials like steel and concrete. This year, 46% of professionals indicated they do not track embodied carbon—a rise from 34% the previous year. Only 16% of respondents said carbon measurement significantly influenced material choices in design.