Buildings :- The Biden-Harris administration recently allocated $400 million from the long-awaited Inflation Reduction Act funds to propel the adoption of energy-efficient codes for new buildings. However, recognizing the significant role existing buildings play in contributing to U.S. energy-related emissions, the administration shifted focus to address the real culprit: our current building infrastructure, responsible for 29 percent of annual emissions.
Buildings – Owners:-
In September, the White House unveiled a national framework for climate resilience in buildings, setting objectives to transition to “zero emissions” buildings.
While not legally binding, this framework echoes efforts at both federal and state levels, with states like Colorado, California, Maryland, Oregon, and Washington leading the charge in adopting climate-focused rules for new and existing buildings.
The U.S. Climate Alliance, a coalition of 25 state governors, has committed to building energy efficiency standards, showcasing a bipartisan momentum towards sustainable practices. However, this shift poses challenges for commercial property stakeholders who face financial stress marked by high vacancy rates, loan delinquencies, and tightening credit.
Despite these challenges, building owners can turn the tide by viewing the new building performance standards as a financial opportunity rather than a burden.
Technologically advanced buildings equipped to minimize emissions, enhance occupant health, and withstand climate risks have proven capable of paying for themselves. They offer lower operational costs, and higher rental yields, and bolster the Environmental, Social, and Governance (ESG) performance of their owners and investors.
For property owners to seize this potential, a strategic incremental approach is essential. Starting with compliance with energy performance standards, owners and managers can choose optimal paths for achievement. This journey, though complex, can be navigated with three key principles.
Firstly, a robust data foundation is crucial. Implementing advanced energy metering systems enables owners to map energy consumption zone-by-zone, providing insights for corrective actions. Following a preliminary operational energy audit, addressing the largest sources of emissions becomes a priority.
The second principle involves prioritizing dual interventions for climate mitigation and adaptation with the fastest financial return on investment.
Electrifying building systems and implementing distributed energy resources (DERs) emerge as low-hanging fruit. With U.S. Inflation Reduction Act subsidies, installing efficient, monitorable, and controllable electrified equipment becomes an enabler for compliance and beyond.
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