New research by C40 Cities shows that a shift to clean construction methods and materials would have multiple socio-economic benefits.

Making the construction sector more sustainable will not only be good for the environment, but will generate multiple socio-economic benefits, including the creation of millions of green jobs. This is the conclusion of first-of-its-kind research by C40 Cities.

C40 Cities is a network of nearly 100 mayors of the world’s leading cities who have united to confront the climate crisis. They are committed to using an inclusive, science-based and collaborative approach to cut their share of emissions in half by 2030, help limit global warming to 1.5C, and build healthy, equitable and resilient communities.

Building greener cities: green job opportunities in clean construction is the first in-depth work to present the economic case for shifting to clean construction.

The research, conducted by C40 Cities, consultancy Buro Happold and the New Economics Foundation think-tank, was supported by the Laudes Foundation and the City of Oslo, with contributions from Building and Woodworkers’ International, a trade union federation. It spans seven cities – Bogotá, London, Madrid, Mexico City, Nairobi, Oslo and Seattle – to give a global perspective on how decarbonising the built environment, which is responsible for close to 40% of global CO2 emissions, can support a stable and healthy workforce and provide opportunities for greater social equity.

Two scenarios

Researchers modelled the impact of two scenarios from 2023-2050: first, a city’s continuation of current carbon-intensive construction and, second, a shift towards clean construction (defined as decarbonised, resource-efficient, resilient and socially just built environment and construction systems). The research predicts the changes in job numbers and job roles, maps workforce diversity and quality of work, and calculates the investment needed for each.

The research shows that adopting clean construction will create more jobs than continuing with high-carbon construction. Decarbonising the built environment, when planned fairly and inclusively, will generate millions of jobs, largely in sectors such as maintenance, repairs, upgrades, and timber construction and the use of low-carbon materials.

Mexico City, Bogotá and Madrid would see the largest proportional growth in the construction workforce (193.1%, 43.5% and 41%, respectively), while Oslo, London and Seattle (where clean construction is already adopted to a significant extent) will experience net workforce growth of 16.6%, 13.4% and 2.6%, respectively.

Ensuring this takes place as part of a just transition will mean those displaced from carbon-intensive construction (such as concrete and steel production) can use their expertise and skills to access greener jobs and the benefits of clean construction.

Socio-economic benefits

The specifics of each city economy play a part in how the adoption of clean construction will manifest.

Seattle already has a significant skilled workforce in timber and retrofits, and the city has supported clean construction through multiple initiatives. “Our Green New Deal demonstrates our commitment to creating a greener and equitable economy,” said Bruce Harrell, mayor of Seattle. “Our strategy has demonstrated the potential of clean construction in creating more good, green jobs in the city.”

Madrid’s less-developed clean construction sector will require more investment, but also lead to larger growth in, and variety of, green construction jobs.

“Madrid is ready to lead in the green transformation of our construction sector,” said José Luis Martínez-Almeida Navasqüés, mayor of Madrid. “C40 research shows the immense potential for our city and our built-environment industry, but realising it fully will require strong collaboration with the private sector and multi-level government support. Together, we can build a greener future for our city.”

Oslo’s burgeoning timber economy and tech start-up culture, in a city where 90% of businesses are classed as micro-businesses, presents an opportunity for small and medium-sized enterprises to lead clean-construction work.

‘By adopting clean construction practices, cities can not only reduce carbon emissions, but generate millions of new jobs and promote a more diverse workforce.’

Mark Watts, C40 Cities

“2025 marks a shift in Oslo’s clean-construction work: from now on, all city-owned construction has zero emissions as a standard,” said Eirik Lae Solberg, governing mayor of Oslo. “That means lower emissions. But it also means a much better work environment for construction workers. This research from C40 supports us in our continued efforts to create more green jobs in the construction sector.”

Easing London’s housing crisis

In London, clean construction presents an opportunity to ease the housing crisis; developing low-carbon industrialised construction at scale is a key solution. The mayor of London has implemented the Non-Road Mobile Machinery (NRMM) Low Emission Zone (LEZ) on construction sites. The NRMM LEZ will mean all building sites in London must have only zero-emission machinery by 2040.

“I’m proud that London is leading the way in the green transition of the construction sector, with pioneering initiatives reducing both air pollution and carbon emissions from building sites in our capital,” said Sadiq Khan, mayor of London and co-chair of C40 Cities.

“The findings from C40’s research are clear: through initiatives like the Green Skills Academy and by accelerating building upgrades, we are not only cutting carbon emissions but also creating jobs, and ensuring that new opportunities created are accessible to all Londoners, as we build a greener and fairer city for everyone.”

The report also finds that clean construction generates socio-economic benefits that can improve the quality of life for city residents, such as more jobs, improved air quality, reduced carbon emissions, less noise and faster building of much-needed housing.

Savings from energy efficiency, faster project completion and reduced waste will also help to offset initial expenses. This makes a strong broad-economy case for the investment required from public and private sector participants to transition to more sustainable construction practices.

The transition to clean construction presents a unique opportunity to achieve environmental and social progress, meet climate targets and address pressing social priorities. Clean construction reduces carbon emissions, improves air quality and increases climate resilience, while helping cities to tackle the housing crisis by maximising efficiency and resources.

Decent, green jobs

Clean construction has the potential to create millions of green jobs, promoting decent work opportunities and improving local economies.

To facilitate this transition, cities can leverage public procurement to prioritise clean construction projects and establish sustainability standards; update building codes to incorporate low-carbon materials; or offer tax incentives to construction firms that follow sustainable practices.

They can expand vocational training to address skills shortages in partnership with the private sector, unions and educational institutions, and produce a long-term plan for sectoral transition in collaboration with unions, residents, the private sector and civil society.

The research also found that a transition to clean construction provides an opportunity to improve equity, diversity and inclusion and the quality of working conditions in the sector, but it will not happen automatically.

Many in the construction industry experience poor working conditions, and the workforce is predominantly male, with little representation of women and minority groups. With the right policies, programmes and approaches, cities, businesses, workers, unions and skills providers can foster better working conditions and more equity, guaranteeing that clean construction won’t just replicate the poor labour conditions often seen in high-carbon construction.

“C40 research shows that by adopting clean construction practices, cities can not only reduce carbon emissions but also generate millions of new jobs and promote a more inclusive and diverse workforce,” said Mark Watts, executive director of C40 Cities. “Some of the numbers are staggering: up to 40% more jobs in clean construction than the polluting business-as-usual. The pioneering strategies city governments are using to drive innovation that cuts emissions and creates good green jobs now needs to be also taken up by more national governments.

“The evidence is clear: the opportunity is here and the time to act is now.”