We’ve Only Scratched the Surface on GHG Reduction Potential in Buildings

Last year saw significant attention from federal agencies on the role buildings can play in national decarbonization efforts. The EPA’s recent report, Electricity Sector Emissions Impacts of the Inflation Reduction Act, acknowledges that, thanks in large part to IRA incentives, buildings are poised to lead all end-use sectors in GHG emissions reductions by 2035 – even when compared to transportation. 

We’re also seeing significant momentum on a local level. Look at Local Law 97 (LL97) in New York City, which went into effect this year. Buildings in NYC account for two-thirds of the city’s GHG emissions and, under LL97, most buildings over 25,000 square feet must now meet aggressive new energy performance standards and emissions limits by 2024 – with stricter limits by 2030. NYC’s goal is to reduce emissions from its largest buildings by 40% by 2030 and 80% by 2050. When it passed, LL97 was attacked by local building owners and developers as they claimed it disproportionately targeted buildings in densely populated areas and with longer hours of operation demanding higher energy consumption; they even filed lawsuits to prevent it. But it turns out, owners and developers are complying faster than even expected. Just spend an hour walking around NYC and you will be surprised to see some of the oldest looking buildings with a grade A sign of their energy efficiency. Upgrading existing buildings for sustainability and efficiency is not only possible, but effective.   

This confirms what we at the Global Network for Zero have been saying for some time – buildings are a key tool to reach net zero. Earlier this year, our CEO Mahesh Ramanujam had the opportunity to chat with Commercial Property Executive about the encouraging progress we’re seeing for green buildings. This includes both newly constructed buildings and the 100 million buildings already standing in the US alone. 

In coming years, more forward-focused legislation and policy is to be expected from the local to federal levels, pushing for retrofits to existing buildings and lower embodied carbon in new structures. Building owners and developers should start preparing for this growing trend now, gathering data on their emissions and efficiency, and putting together an incremental plan to retrofit for the future. And they should also be sure to focus on a critical outlier for the CRE industry: Scope 3 emissions.

Only about 0.023% of all the buildings in the world are currently net zero – and most of these are “net zero energy” accounting for Scope 1 and 2 emissions, and ignoring Scope 3. CRE leaders and organizations who are looking to differentiate and set themselves apart should focus on achieving net zero for their Scope 1, 2 and 3 emissions. 

While navigating Scope 3 emissions reduction has previously been referred to as “the Wild West” – the good news is that this is a misconception and there are strategies, technologies and accounting mechanisms that can help organizations tackle this Scope category head on. For those looking for resources on where to start, GNFZ has a guide on energy efficiency strategies that buildings can leverage to achieve net zero available on our platform. It covers a wide range of topics including building envelope, HVAC systems, lighting, water efficiency, landscape design, pumps and motors, plug loads, waste management and renewable energy supplementation, as well as holistic strategies for optimizing an entire building’s energy performance.

Our net zero certification is also the perfect starting point for building owners (and other business executives, for that matter), to assess their emissions and develop a net zero plan from the ground up (no pun intended) that also accounts for Scope 3. Our certification leverages an incremental approach as well as end-to-end implementation support to provide CRE leaders with an affordable, accessible and accelerated way to achieve true net zero. 

This simplification is so important, because owners, builders and developers have little time to waste to adjust to the emerging net zero status quo. I’d encourage builders and developers to look into our certification program to get ahead of any inevitable government regulations on building emissions. We proudly provide one of the only programs to account for Scope 1, 2, and 3 emissions, raising the bar of what’s possible in decarbonizing the built world. If you are interested in learning more about how we can help your business or building, reach out here.

I look forward to more momentum to decarbonize the built environment from both the public and private sectors, and the role GNFZ will play in helping buildings achieve necessary standards.