The world leaders have agreed that to keep the 1.50C limit in the Paris Agreement alive the new normal in the construction sector has to be “resilient buildings with near zero emissions”. ‘Building Breakthrough’ is the global sustainable construction initiative launched in COP28. The initiative is co-led by France and the Kingdom of Morocco, coordinated under the umbrella of UNEP, and hosted by the Global Alliance for Buildings and Construction. This initiative aims to strengthen international collaboration to decarbonize the building sector and make clean technologies and sustainable solutions the most affordable, accessible and attractive option in all regions by the year 2030. It comprises 28 members covering over 70 percent of the global Gross Domestic Product (GDP) and more than half of the world’s population. The participating world leaders agree to review progress annually and explore priority international actions for a Building Breakthrough. According to the World Green Building Council, approximately 40 percent of worldwide carbon emissions are attributed to the construction of buildings and the energy needed to run them. In developed countries, the construction sector contributes approximately 23 percent to air pollution, 50 percent to climate change, 40 percent to drinking water pollution and 50 percent to landfill waste. Furthermore, construction sites have been reported to be responsible for 14.5 percent of PM2.5 and 8 percent of PM10 emissions in several countries. In China, it has been reported that construction dust contributes to 27 percent of the causes of diseases caused by pollution. According to the UNEP, during the year 2022, buildings were responsible for 34 percent of global energy demand and 37 percent of energy and process-related CO2 emissions. The situation was further intensified due to the unsustainable growth in the allied industrial sector, like the production of materials used in the construction process for cement, steel, and aluminium added a further 2.5 GtCO2, with brick and glass production contributing around 1.2 GtCO2. The urgent challenges of urbanization can be effectively tackled by adopting frameworks like the circular economy and the Just Green Transition. The above data paints a bleak picture, but these statistics cannot undermine the global and local importance of the construction sector. In Pakistan, the construction sector contributes approximately 14 percent-15 percent to the country’s GDP. This sector is directly or indirectly related to almost 40 allied industries thus making it an integral part of the country’s economic equation. The solution to the construction sector’s unsustainable business practices and growth pattern can be found in the ‘Building Breakthrough’ ideology which envisions an era of climate-resilient, net-zero building through the creation of an environmentally and socially sustainable construction sector. Incorporating sustainable building standards is essential in creating sustainable and efficient building structures, as they significantly impact design, construction, maintenance, and renovation processes. Sustainable building principles involve a variety of strategies throughout the lifecycle of a building project. Green building materials, such as wood, straw, hemp concrete, recycled plastic, mycelium, straw bales, bamboo, rammed earth, wood concrete, and grass concrete, play a crucial role in building design. They help in creating energy-efficient structures that blend well with the surroundings and support ecological equilibrium. These materials boost sustainability and come from renewable waste sources, making them highly energy efficient. Using eco-friendly building materials helps address environmental issues like air pollution, resource depletion, species extinction, and climate change. Considering these benefits, green building materials serve as a significant alternative to traditional construction materials. Energy efficiency is a key focus in the design of green buildings. As energy costs rise, the benefits of green buildings are becoming more apparent, as they can lead to significant reductions in operational expenses. Data shows that green buildings have a 9 percent greater asset value in addition to reducing CO2 emissions by up to 35 percent and water consumption by 20 percent to 30 percent. The average operating cost savings in the first year for new green buildings is 10.5 percent. The most popular green building/office certifications are “World Wide Fund for Nature (WWF)”, “Leadership in Energy and Environmental Design (LEED)”, “Energy Star, and Building Research Establishment Environmental Assessment Methodology (BREEAM)” and “Excellence in Design for Greater Efficiencies (EDGE)”. Currently, Pakistan has only a handful of certified green buildings. However, green buildings are a US$ 5.5 billion investment opportunity in Pakistan. The banking industry can play an important role in the green transition of the construction industry through Green Banking. The provision of green financing to the construction sector for constructing new green buildings and green retrofitting of old buildings can significantly reduce the hazardous environmental and social impacts. Furthermore, the provision of green financing to the allied industries can also contribute to the development of a sustainable and green value chain in the construction sector. Through the inculcation of ESG and Green Banking, the banking sector can launch green financing schemes for various building breakthrough initiatives such as bricks manufactured from zig-zag technology, green cement, green logistics, renewable energy generation, green consultants, green developers and construction companies, green architectural firms, and other eco-friendly construction related products and services. The urgent challenges of urbanization can be effectively tackled by adopting frameworks like the circular economy and the Just Green Transition. These frameworks not only promote environmental sustainability but also ensure social inclusivity. Moreover, by expanding their reach and considering local value chains, significant economic benefits can be realized. Nevertheless, the key aspect that should not be overlooked is the active involvement of the urban poor in the planning process, along with creating opportunities for a genuinely Just Green Transition. Dr Syed Asim Ali Bukhari is working as SVP/Unit Head – ESG and Muhammad Waqas Mahmood works as EVP/Divisional Head – ESG, Policy & RA in The Bank of Punjab.