Building Performance Standards aim to reduce carbon emissions across the U.S.
Nov 3, 2022, 09:45 AM
Earlier this year CBRE Econometric Advisors (CBRE EA) published a Viewpoint that focused on transition-related climate risk and its impact on commercial real estate from a global perspective. In this viewpoint, we will focus on how the United States is tackling greenhouse gas (GHG) emissions from the built environment, especially focusing on mandatory regulations at the state and local government level.
Building Performance Standards (BPS), which are outcome-based state and local benchmarking laws, have been introduced to reduce GHG emissions in the real estate industry.
To date, 31 cities, one county and two states enacted the BPS prior to 2022, eight are on a pathway to do the same by the end of 2023, and New York City’s Local Law 97 will go into effect in 2024.
The federal Bipartisan Infrastructure Law provides more than $1.8 billion to support building sector policies, while the federal Inflation Reduction Act of 2022 (IRA) provides additional funding of $115 million.