Building net-zero futures: Asian lessons for MENA’s construction sector

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Arian Gholami
June 03, 2025

Three big economies in Asia are achieving carbon neutrality in construction. This column draws lessons from Japan, Taiwan and Thailand – and explains why, given the vast solar potential and growing focus on environmental, social and governance matters in the Middle East and North Africa, governments in the region must adopt similarly ambitious policies and partnerships.

In a nutshell

Without firm national targets, cross-sector collaboration and robust reporting on environmental, social and governance indicators, MENA risks falling behind in its efforts to develop a carbon-neutral construction sector.

With national visions in MENA that emphasise diversification, there is an unprecedented window to leapfrog into a green building era; Japan sets an example with its adoption of net-zero operational targets for all new buildings by 2030 and full industry neutrality by 2050.

The transition will demand stronger policies, transparent reporting and shared innovation platforms; but the prize – a resilient built environment, healthier cities and continued access to global capital – is well worth the effort.

I have watched with keen interest the rise of carbon-neutral building initiatives across Asia. Today, as debates swirl in Abu Dhabi, Cairo and Riyadh over balancing oil revenues with green growth, the challenge is clear: how can the construction sector in the Middle East and North Africa (MENA) move from pilot projects to industry-wide net-zero practices?

Drawing on my recent comparative study of Japan, Taiwan and Thailand, I argue that without firm national targets, cross-sector collaboration and robust reporting on environmental, social and governance (ESG) indicators, MENA risks falling behind.

The current policy debate in MENA

Leaders in major energy-exporting countries of MENA are wrestling with Vision 2030 and its equivalents, which set ambitious – but often vague – sustainability goals. Recent fora have questioned whether solar-powered ‘green cities’ are a niche luxury or a scalable future for mass housing.

This debate mirrors early discussions in Japan and Thailand in the late 2010s: lofty aspirations hampered by weak regulatory frameworks and limited private-sector incentives (Phong and Arun, 2021; Tanaka, 2021).

Why construction matters

Globally, the construction industry emits roughly 40% of carbon – through embodied materials, on-site energy use and logistics (UNEP, 2023). In Asia, buildings account for nearly 38% of emissions of greenhouse gases (Ahmed et al, 2022). Yet, by adopting net-zero operational targets for all new buildings by 2030 and full industry neutrality by 2050, Japan and the World Green Building Council have laid a clear path (WGBC, 2021).

Comparative findings

National targets drive action
Japan set a 2050 net-zero goal before most OECD peers, embedding emissions cuts in its Construction Licence Law and providing incentives to develop low-carbon technologies (Tanaka, 2021). Taiwan followed with a formal 2050 roadmap focusing on energy, industry and lifestyle transitions (Chen and Wang, 2023). Thailand aims for 2065, but has already piloted 100% solar roof coverage on new residential blocks, accelerating private adoption (Phong and Arun, 2021).

ESG reporting builds accountability

Japanese builders routinely publish ESG and Sustainable Development Goals-aligned sustainability reports, disclosing Scope 1-3 emissions and mitigation strategies (Deloitte, 2022). Taiwanese and Thai firms are less consistent: many lack standardised disclosure, hindering cross-company benchmarking (Singh et al, 2022).

Technology uptake and scale

In Osaka and Tokyo, modular construction, waste-heat recovery and building-integrated photovoltaics have reached commercial scale, cutting operational energy by 30-50% (Shirinbakhsh and Harvey, 2021). In contrast, Taiwanese green projects remain boutique-style, and Thailand’s solar photovoltaics adoption is often confined to luxury resorts rather than mass housing (Chen and Wang, 2023; Phong and Arun, 2021).

Multi-stakeholder partnerships

Japan’s industry collaborates with non-governmental organisations, academia and local governments under platforms like the Japan Sustainable Construction Alliance to pilot new materials and share best practices (Fořt and Černý, 2022). MENA needs similar councils to unite public and private organisations around common technical standards.

Lessons for MENA

Set clear, binding targets

A formal net-zero deadline for the construction sector – ideally by 2050 – would create regulatory certainty and mobilise finance.

Mandate ESG disclosures

Requiring Scope 1-3 emissions reporting will drive companies to optimise designs, choose low-carbon materials and benchmark performance.

Scale proven technologies

Take advantage of the region’s unparalleled solar irradiance by integrating photovoltaics into building envelopes, combined with smart grids to manage peak loads.

Forge cross-sector councils

Establish public-private alliances – mirroring Japan’s model – to pilot green materials, share data and develop local supply chains for low-carbon cement and steel.

Charting the path forward

I believe that MENA’s construction industry stands at a crossroads. With national visions that emphasise diversification, there is an unprecedented window to leapfrog into a green building era.

The transition will demand stronger policies, transparent reporting and shared innovation platforms. But the prize – a resilient built environment, healthier cities and continued access to global capital – is well worth the effort.

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