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Commercial, multifamily, and industrial buildings — both new and existing — can start building value today through energy efficiency and strategic electrification to make progress toward a decarbonized future. In developing their decarbonization strategy, buildings should account for their own systems and operations to inform a phased and tailored approach.
Commercial, multifamily, and industrial buildings — both new and existing — face barriers to decarbonization amid competing demands and growing pressure from legislation and consumers. But there are opportunities to build value today, namely energy efficiency and strategic electrification, while making progress toward a decarbonized future.
New York’s emissions reduction targets are guided by the Climate Act, with building energy efficiency and electrification serving as a cornerstone for the State’s climate goals.
Decarbonization of new buildings was codified in 2023. Starting in 2026, the installation of fossil fuel equipment is prohibited in new buildings up to seven stories before applying to all new construction in 2029 (barring exceptions for certain commercial and emergency uses). New York City’s Local Law 154 and other municipal legislation set even earlier timelines for all-electric new construction.
The New York State Energy Research and Development Authority (NYSERDA) can connect commercial and industrial leaders with technical experts and resources to take the guesswork out of decarbonization.
Other policies, including Local Law 97 and New York’s forthcoming Cap-and-Invest program, aim to accelerate decarbonization in existing buildings and industry. Thus, now is the opportune time for property owners to begin planning their decarbonization strategy — both to futureproof against regulation and the increasing risks climate change poses to their assets.
Taking A Phased And Tailored Approach
Retrofitting existing buildings and converting to all-electric equipment requires considerable planning and investment. However, it is not an all-or-nothing proposition, and the reality is that many buildings will take a phased approach.
While full electrification is the end goal of decarbonization for most building types, reducing energy use with efficiency improvements and partial electrification can be a cost-effective bridge solution to begin transitioning away from fossil fuels. It’s important to factor in the design and remaining useful life of building systems when determining the most appropriate approach to partial or full electrification…
