A key sector for climate action, buildings and construction is not on track. Driving down emissions will entail: aggressively reducing energy demand in the built environment, while decarbonizing the power sector and implementing materials strategies that reduce lifecycle carbon emissions. Retrofits and efficiency measures in new builds could help create jobs, while making buildings Paris-compliant, improving livability and reducing operating costs. Including the sector into COVID-19 recovery measures means building back better, literally. Due to value chain fragmentation, high informality and dependence on sub-national actors for policy implementation; co-creation of policies, public-private partnerships and innovative finance are critical for a zero-carbon pathway.