Issue link: https://resources.tangoanalytics.com/i/1509826
The key challenge lies in enhancing the sustainability performance of the existing stock (retrofitting), as more than 75% of the buildings that will exist in 2050 already exist today. Leaders across the U.S. are exploring building performance standards (BPS) as a way to reduce excessive building energy use and carbon emissions. As BPS becomes more commonplace building on the work of mandatory benchmarking ordinances, building owners, architects, consulting engineers, and facility managers — who have historically been most concerned with implementing energy code requirements as the primary energy-related regulations – will need to have a thorough understanding of the local BPS targets in addition to energy codes. These emerging requirements are taking a different and more aggressive approach from voluntary incentive programs that have reigned supreme in the past in order to encourage private businesses and buildings to achieve better building performance. And while these standards are mandatory requirements that can take some getting used to, building owners will still retain power and flexibility in how individual buildings achieve their targets. These building- related sustainability regulations are set to gain prominence in the latter half of the decade, and despite the upfront challenges of compliance, building professionals can glean benefits from this transition to greater efficiency and decarbonization movement. Astute investors are seeing that buildings that fail to live up to higher environmental standards will increasingly be seen as less valuable or outright risky to invest in. On the other hand, commercial real estate companies that champion net zero carbon reductions, promote health and well-being, and are resilient to climate change will see the benefits of doing so - namely, cost savings, increased property values, improvements to indoor air quality, and investor approval. In this guide, we explore state and local building efficiency regulations and building performance standards to give you a more in-depth understanding of the policies that are likely to impact your portfolio going forward. Sustainability & Energy Management Simplified INTRODUCTION In the U.S., buildings are the largest contributor to greenhouse gas emissions, representing 35% of total energy-related emissions. This is split almost evenly between commercial and residential buildings. Extensive efforts are required to align the operation of the global building stock with tangible decarbonization goals.