Demand for sustainable buildings and carbon measures have slowed across construction projects, the Royal Institute for Chartered Surveyors (RICS) found.
The report warned that momentum behind sustainable development risks stalling without stronger policy intervention.
While investors value green certification and climate-resilient assets, high initial costs and uncertainty about returns are the biggest deterrents to investment.
A lack of investor awareness, especially across the Middle East and Africa and Asia-Pacific, is another significant barrier.
Nicholas Maclean, acting RICS president, said: “Transformation across the built environment is necessary if we are to meet the challenge of climate change.
“This important RICS research shows progress, but also clear signs of fatigue and uncertainty.
“In our 2025 report, the MEA region has emerged as a strong performer, indicating demand growth outpacing all other regions studied.
“These developments offer valuable insights for global efforts in sustainability practices and provide an important example for the rest of the world.
“Governments, industry and professional bodies must work together urgently to unlock investment, strengthen policy and scale up skills to deliver a truly sustainable future.”
Some 46% of construction professionals report not measuring embodied carbon, a figure that has risen in the past year.
Only 16% say carbon measurement meaningfully informs material choices in project design.
RICS warns that without mandatory whole-life carbon assessment and reporting, the sector will not be able to achieve national and global decarbonisation targets.
To accelerate climate progress, RICS urges policymakers to:
- Introduce mandatory whole-life carbon reporting for all construction projects
- Set national emissions limits aligned to net-zero pathways
- Expand incentives and financing for green retrofits and low-carbon materials
- Harmonise global standards and definitions for low-carbon and resilient buildings
- Prioritise investment in sustainability skills and training
- Strengthen biodiversity legislation and reporting requirements