Why We Must Follow Through on DoE Decarbonisation Blueprint
The built environment makes up roughly 40 per cent of global greenhouse gas emissions
Mahesh Ramanujam of the Global Network for Zero urges the public and private sectors to work together to accelerate decarbonisation of the built environment.
Earlier this month, the Biden-Harris Administration released Decarbonising the U.S. Economy By 2050: A National Blueprint for the Buildings Sector, a first-of-its-kind plan for a 65 per cent reduction in building emissions by 2035 and ultimately a 90 per cent cut by mid-century.
While I applaud the Department of Energy (DoE) for recognising the role of America’s building sector in climate change, we have to be clear about the stakes ahead. We are running dangerously close to the edge when it comes to stopping irreversible damage.
Scope 3 emissions
The built environment makes up roughly 40 per cent of global greenhouse gas emissions (GHG), yet only 0.023 per cent of all the buildings in the world are net zero. And even so, most of those are “net zero energy,” accounting for only Scope 1 and 2 emissions – ignoring Scope 3 emissions altogether. Without meaningful enforcement mechanisms, well-intentioned plans will fall short and we will be unable to actualise blueprints like this. Despite these realities, the four strategic objectives outlined in the DoE’s blueprint provide an opportunity for governments and the private sector to step up to the challenge.
The first strategic goal of increasing building efficiency and reducing onsite energy usage is within reach, and we are seeing encouraging progress on this front in cities around the world. As part of its strategy to get buildings in New York City to net zero emissions by 2050, the government is taking a bold approach with LL97, which now imposes strict energy and emissions limits on building owners.
Without meaningful enforcement mechanisms, well-intentioned plans will fall short and we will be unable to actualise blueprints
Through Building Performance Standards (BPS), states and cities can also require existing buildings to meet operational energy or emissions targets. But while the number of jurisdictions adopting building performance standards is trending upward, research has found that more must be done before 2030. Plans like these must be replicated and scaled to reach every corner of the United States.
Accelerating onsite building emissions reductions is another key objective of the blueprint. After all, energy-efficient practices in building operations are essential for reducing costs, improving occupant comfort and health, and mitigating the environmental impact of buildings.
From building envelopes that allow for a greater level of control over indoor air quality, temperature, and humidity, to taking a close look at building lighting by complying with ASHRAE 90.1-2004 energy standards for light power savings, the technology is available and there are practical and actionable steps building owners and operators must embrace and replicate today.
Energy-efficient buildings
As the blueprint underscores in its third key objective, energy-efficient buildings have the potential to drastically accelerate our energy transition – a potential we can tap into as long as we focus on managing end-use electricity demand at the grid edge, commonly referred to as the “last mile” of distribution networks and the closest to the utility’s end customer.
With federal incentives for adopting grid-interactive, distributed energy resources (DERs) – paired with state-level regulatory frameworks enabling electric utilities and third-party operators to stand-up virtual power plants (VPPs) – power providers and their commerical and industrial &C&I) customers can deliver a more flexible power system. For utilities and grid operators, VPPs enable more efficient and affordable grid management. And for commerical real estate (CRE) businesses with behind-the-meter (BTM) devices in a VPP, they can even expect compensation for their grid services and operational emissions mitigation.
For the United States to meet its Paris Agreement targets, emissions must fall three times as fast as they are falling now
Finally, I would argue the strategic objective of eliminating embodied lifecycle emissions is the most important. Known as Scope 3, this category of emissions is often difficult to track because it covers all carbon emissions released during the entire lifecycle of a building. Although this category frequently sparks the most challenges and confusion among entities pursuing net zero, it also presents the greatest opportunity for scaling decarbonising efforts across entire value chains. But first, we must consider the current inconsistencies.
For the United States to meet its Paris Agreement targets, emissions must fall three times as fast as they are falling now. Yet the Securities and Exchange Commission’s (SEC) recent elimination of Scope 3 emissions reporting requirements from its climate disclosure rules is a direct contradiction to what must happen if the goals in the DoE’s blueprint have a chance of being met.
To put it simply, the federal government must mandate Scope 3 emissions reporting to ensure the integrity, transparency, and acceleration of the decarbonisation process. Perhaps California’s example will enlighten and inspire.
At the Global Network for Zero, we continue to witness the collective power that can be unleashed when the public and private sectors work together to meet the moment. While there is cause for concern, we believe that together we can take these crucial actions and accelerate the transformative work of decarbonising the built environment in America and around the world. We are on the cusp, but we must follow through.
Mahesh Ramanujam, is President & CEO of the Global Network for Zero and former CEO of the U.S. Green Building Council.