other policies<\/a> across U.S. state and local jurisdictions, there is mounting consensus behind the merits of decarbonizing the built environment.
There are promising indicators in other energy- and carbon-intensive sectors, too. For perspective, the International Energy Agency estimates that should all the energy-related pledges made at COP28 come to fruition then the global annual total of greenhouse gas emissions in 2030 would be at least 4 gigatons of CO2 equivalent lower than would be expected without them. More encouraging still, the U.S. Environmental Protection Agency reckons that, thanks largely to the incentives from the U.S. Inflation Reduction Act, buildings will deliver more GHG reductions by 2035 than any other end-use sector.
On average, U.S. commercial buildings are already 26 percent more energy-efficient than they were in 1990, according to a report by the U.S. Green Building Council. And to start 2024, preliminary data by Rhodium Group suggests that, in 2023, the U.S. buildings sector achieved a year-over-year emissions reduction in energy-related emissions of 4 percent, second only to the power sector.<\/p>\n\n\n\nThe sustainability battle isn’t won yet<\/h2>\n\n\n\n
It\u2019s probably tempting, then, to consider this momentum self-sustaining, particularly in the U.S. where the combination of supportive long-horizon federal and state policymaking together with changing attitudes among investors and tenants offer plenty of reasons for optimism. But building developers, owners, managers and investors\u2014and those who advocate for an acceleration of their climate actions\u2014must resist that temptation. And there are several big reasons why.
First, despite recent progress, buildings remain one of the largest sources of GHG emissions both in the U.S. and abroad. Second, the rate of building decarbonization is simply insufficient to meet Paris Agreement goals; according to JLL research, the annual rate of retrofits for existing buildings must be tripled. Third, net zero buildings, which often run entirely on purchased and on-site renewable power, have tremendous capacity to support the decarbonization of other carbon-intensive sectors. And fourth, beyond reducing society\u2019s contributions to climate change, sustainable buildings are perhaps our most effective means of adapting to a warming planet\u2019s adverse effects.
The task that lies ahead for the commercial real estate sector is simply to step up the ambition and accelerate action. But expecting would-be agents of building decarbonization to promptly march to the rhythm of that now classic drumbeat is part of what\u2019s gotten us into this predicament. Instead, we need to break this charge into incremental components.<\/p>\n\n\n\n
GNFZ’s areas of improvement<\/h2>\n\n\n\n
With that, the Global Network for Zero proposes two straightforward, near-term goals for both the U.S. CRE industry and, ideally, the federal government. They must conclusively expand the \u201cscope\u201d of their ambition for building decarbonization. And they must collaborate to equip building developers, owners and investors with more concrete and accessible information regarding the \u201chow\u201d of building decarbonization as well as with evidence of its merits\u2014especially financial.
On the scope of ambition, there are three areas for improvement. First, champions and practitioners of building decarbonization will need to look beyond the allure of achieving net zero operations in new buildings and elite, or rather, or \u201cshowcase\u201d projects. <\/p>\n\n\n\n
Second, both industry and government must agree to a definition of zero emissions operations. The definition of net zero operations must encompass both operational value chain emissions and embodied carbon, rather than simply on-site, operational energy-related emissions. The reason is that these emissions, categorized as Scope 3, comprise the majority of buildings\u2019 total emissions and therefore represent the greatest opportunity for change.
And for policymakers, third, it will be critical to commit to implementing building performance standards that not only cover a greater share of the commercial building stock within their jurisdictions but also mandate compliance with more modern energy-efficiency standards. For perspective, of the dozen state and local BPS regulations tracked by the Institute for Market Transformation, none cover commercial facilities below the 20,000-square-foot threshold. And according to data compiled by the U.S. Green Building Council and Arup, more than a dozen U.S. states have a minimum energy code rooted in standards that are at least 10 years out of date. As of October 2023, at least seven states have no minimum building energy code at all.<\/p>\n\n\n\n
Building blocks toward a more sustainable future<\/h2>\n\n\n\n
There is, to be sure, encouraging momentum in the right direction. ASHRAE, a global professional standards body whose definitions and frameworks feature prominently in government regulations and various third-party green building certifications, has released an updated standard for energy efficiency and emissions performance in existing buildings. Also recently, ASHRAE and the International Code Council have revealed their proposed methodology for evaluating and documenting buildings\u2019 operational greenhouse gas emissions\u2014inclusive of Scope 3 emissions\u2014and historical, or rather, embodied emissions. At the same time, the U.S. Department of Energy\u2019s Building Technologies Office is hard at work evaluating public input received on Part 1 of its definition for a \u201czero emissions building.\u201d
It bears repeating, though, that conclusive, universal standards and definitions are only one part of the equation. Yes, they address the discrepancies between the green building certifications designed and awarded by independent bodies. Yet they are only effective if building developers, owners and investors alike have a clearer understanding of not only the benefits associated with attaining those certifications but also a roadmap for realistically pursuing them\u2014especially for the existing building stock.
Yes, mounting pressure from stakeholders offers an invaluable incentive for the CRE sector to take action, particularly for their legacy assets where concerns over project financing, costs associated with operational disruption, and even technical feasibility are forceful impediments. Yet even with that potential, actors still need definitive and evidence-based pathways to success.
Attention is turning toward the need for the development and publication of a repository of actionable evidence for CRE leaders. This database must not only support the business case\u2014the ROI\u2014for building decarbonization but also the technological, financial and managerial pathways toward achieving financially advantageous climate change mitigation and adaptation outcomes.
With governments and independent standards bodies setting long-needed, conclusive standards for what constitutes a green building and how to determine a facility\u2019s compliance with those criteria, it\u2019s time that the industry considers this pursuit of enlightenment the immediate next goal.<\/p>\n\n\n\n
Mahesh Ramanujam is a co-founder of the Global Network for Zero<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Mahesh Ramanujam of the Global Network for Zero on where the industry and policymakers can come together to drive building sustainability. <\/p>\n","protected":false},"author":3354,"featured_media":1004675007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21684],"tags":[52102],"class_list":["post-1004704324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-viewpoint","tag-global-network-for-zero"],"acf":[],"yoast_head":"\n
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