Green building industry accelerating towards net zero
Mahesh Ramanujam, President & CEO of Global Network for Zero, highlights that the green building industry is advancing toward net zero. Key AI, IoT, and sustainable construction innovations are driving this transformation. As the demand for low-carbon spaces grows and net zero certifications gain momentum, 2025 promises significant sustainability and energy efficiency strides.
What is your perception of the green building industry outlook for 2025?
The green building industry is set for a major shift as demand for low-carbon spaces continues to rise and we move closer to the Paris Agreement’s deadlines. This year, accelerating progress towards net zero for both new and existing buildings will be crucial. Green building rating systems are now mainstream, and the focus is shifting more and more toward net zero.
Only 0.023 per cent of the world’s buildings are net zero, and there is a 70 per cent shortfall in the number of low-carbon buildings available. The next frontier will be designing, constructing, and retrofitting buildings to achieve net zero across Scope 1, 2, and 3 emissions. That frontier is here now, and the industry must move with urgency to understand and embrace it. I also predict embodied carbon will continue to gain importance as the industry moves toward outcome-based sustainability strategies.
Financially, the green building market is expected to grow from $588.37 billion in 2024 to $646.81 billion in 2025. In India, the market is projected to reach $39 billion, with both commercial and residential sectors expanding. India currently leads the way in net zero-building progress globally. I am optimistic that paired with progress on the technology side with PropTech startups leveraging AI and IoT for energy-efficient solutions, India’s leadership in clean energy, the evolving ESG landscape in the nation (such as BRSR) and strong national initiatives and policy advances, India will accelerate progress towards its national net zero goal.
What role can certifications and frameworks like the GHG Protocol play in driving technology advancements?
The built environment is evolving fast, with new advancements making building design, construction and operations Smarter, more efficient, and more sustainable. AI and machine learning are now deeply integrated into construction workflows, helping teams manage projects, allocate resources, and improve on-site safety in real-time. At the same time, Building Information Modeling (BIM) has stepped up, especially with IoT integration, allowing for seamless collaboration and better control throughout a building lifecycle — from design to demolition.
Sustainable construction is now the foundation of modern construction. We are seeing a big push to reduce embodied carbon by using sustainable materials like mass timber and recycled steel, and adaptive reuse of existing buildings is gaining traction as a way to cut emissions and save costs. Meanwhile, smart buildings are becoming the norm, thanks to 5G and IoT sensors that optimise energy use, enhance security and create more comfortable environments.
We’re also seeing a rise in science-led design, which combines data, neuroscience, and engineering to create spaces that perform better and improve human well-being. It’s a shift towards building with people and the planet in mind.
To support these changes, our certification process covers new construction, existing buildings, portfolios, and businesses, focusing on reducing emissions, energy, water, and waste. Our flexible framework aligns with the Paris Agreement, the GHG Protocol, SBTi, and other leading ESG regulations, providing recognition benchmarks that help stakeholders track and showcase their progress in sustainability.
The future of the built environment is all about smarter, more responsible development, and these innovations are making it easier for everyone — developers, businesses, and communities — to create a greener future.
How can AI and IoT optimise energy use in India’s smart buildings, and how do initiatives like the Smart Cities Mission support their adoption?
These technologies enable real-time energy consumption monitoring, predictive maintenance, and automation of energy-saving processes. For instance, AI-driven building management systems can adjust heating, cooling, and lighting based on occupancy, cutting energy waste by up to 15%. IoT-enabled energy monitoring helps track consumption, improve efficiency, and lower operational costs.
In India, as urbanization increases, the demand for AI-integrated smart buildings grows, leading to significant energy savings. AI helps predict renewable energy production, balancing supply and demand. It also optimizes energy storage, extending the life of renewable resources like solar panels and wind turbines.
PropTech startups in India use AI and IoT to promote sustainable urban development, while developers like Godrej Properties and Mahindra Lifespace Developers are integrating smart systems to reduce energy costs by 20-30 percent.
Government initiatives, like India’s Smart Cities Mission, are pushing for wider adoption of AI and IoT in urban planning and renewable energy solutions. With growing demand for sustainable housing, the Indian green building market is projected to reach $39 billion by 2025, further accelerating the integration of these smart technologies.
How do green transition and biophilic design contribute to sustainability and the well-being of occupants in modern buildings?
The green transition is not only about reducing carbon emissions but also about prioritizing the well-being of the community by designing healthier and more comfortable spaces. Smart building technologies, biophilic design, and energy-efficient systems are transforming our experience of indoor environments.
Smart glass, adaptive LED controls, and other energy-efficient lighting solutions optimize natural light and minimize heat gain, improving comfort and reducing energy waste. Biophilic design elements like indoor plants and green walls improve air quality and reduce stress, thus boosting mental well-being and productivity.
AI-driven HVAC systems use IoT sensors to monitor air quality and regulate real-time temperature, humidity, and ventilation based on occupancy and external conditions. These systems result in healthier indoor environments and improve comfort while reducing energy consumption and enhancing air circulation.
Passive design strategies, like natural ventilation and high-performance insulation, regulate indoor temperatures and reduce reliance on mechanical cooling, lowering energy costs and improving comfort.
How are technologies transforming building design to create more sustainable and comfortable spaces?
Design and technology are changing as we think about buildings, making them more sustainable and better suited to the needs of the people inside them. By blending design with innovative tech, we reduce carbon footprints and create buildings that offer long-term value and resilience.
Take BIM, for example. It helps architects and engineers collaborate more effectively, optimising energy use and material efficiency. Then, AI analyses data to predict energy consumption and optimise designs for sustainability and comfort. IoT adds another layer by creating Smart environments that adjust in real time. Generative design, powered by AI, lets us explore various design options that meet sustainability goals while also looking great. We also use more sustainable materials like low-VOC paints and recycled elements, improving indoor air quality. Lastly, digital twins — virtual versions of buildings — help us monitor performance continuously, uncovering opportunities to make improvements. All these technologies are coming together to create smarter, greener, and more comfortable spaces.
What key opportunities do you foresee in 2025 for advancing sustainable building practices?
In 2025, there are significant opportunities to make major advancements to a net zero world. This is especially true with the global building stock. Many buildings certified under green programs are now closing the gap to reach net zero certification. Green certifications will become more mainstream, especially in emerging markets like India, and retrofitting existing buildings for sustainability and future-proofing of assets will be a focus. We will also see – at a global level – a continued increase in ESG targets and government-led compliance.
There will also be greater emphasis on sustainable construction practices like material reuse and adaptive designs, with governments continuing to support the sector through tax rebates and green bonds. The residential market will see growing demand for energy-efficient homes.
As more organisations adopt net zero strategies, they will mitigate risks, tap into new opportunities, and position themselves as leaders. Green building rating systems will evolve toward net zero goals, with technology supporting this shift, including tracking embodied carbon. 2025 will be a crucial year in accelerating emissions reduction and driving impactful progress.