A recent report by the U.S. Green Building Council (USGBC) highlights a significant gap in the decarbonization efforts within the built environment, drawing attention to the challenges faced by the majority of buildings that are not green-certified. The report, titled "Building Transition: Financing Market Transformation", underscores the necessity for scalable and incremental solutions for the "other 75 percent" of buildings that are currently underserved due to various financial and operational constraints.
The findings indicate that while high-ranking green-certified buildings have demonstrated remarkable sustainability potential, the overwhelming majority, which constitutes the bulk of global building stock, requires attention to progress towards net-zero emissions. Transition financing has been identified as pivotal in bridging this gap, calling for a shift in focus from merely achieving certifications to implementing practical, step-by-step improvements.
Donatas Karciauskas, CEO of Exergio, a firm that develops AI-based energy performance tools for commercial buildings, commented, “The ‘other 75 percent’ is the most pressing issue in our path to net-zero. Many buildings lack the resources for deep retrofits or top-tier certifications. Existing AI tools can democratize energy efficiency, bringing high-level optimization to buildings that would otherwise be left behind. Of course, they work for new buildings too.”
The report advocates for incremental improvements such as real-time energy optimisation and targeted upgrades, suggesting that these can facilitate significant reductions in emissions without necessitating extensive renovations. An example of effective implementation is Exergio's AI-based energy efficiency solution, which has demonstrated immediate cost savings through the integration of energy performance tools into existing systems. Karciauskas elaborated, “Incremental progress is the only scalable way to tackle this challenge. In some of our cases, the results are not just related to reduced energy waste. Such tools provide up to 10x faster payback period and require less investments."
Case studies presented in the report substantiate these claims, showcasing a project where AI-led adjustments to HVAC and lighting systems in large commercial office spaces led to a 20 percent reduction in energy waste within just nine months.
Another significant challenge highlighted in the USGBC report is the disparity between existing taxonomies and green certification systems, such as the EU Taxonomy and various national frameworks. This fragmentation complicates the processes for building owners and investors alike, limiting access to essential financing.
Karciauskas stated, “The lack of harmonized standards makes it harder for building owners to secure funding and prove compliance. Not all existing taxonomies consider less than 30 percent of energy savings ‘enough’, and many only have one, static definition for green assets. We should value the transition towards becoming a green asset too.”
For older structures, the road to decarbonization is portrayed as a gradual process involving several stages, including energy efficiency, electrification, and the transition to renewable energy. The report notes that these stages can be evaluated from an energy waste perspective, contributing to emissions reduction. However, it points out that some taxonomies do not recognise established building certifications, which further complicates matters.
In response to these challenges, the USGBC advocates for increased collaboration with industry experts and the utilization of existing tools to simplify compliance and reduce costs. Closing the gap for the "other 75 percent" is deemed essential for meeting net-zero targets.
“This report sends a clear message,” concludes Karciauskas. “If we’re serious about decarbonizing the built environment, we need solutions that work for every commercial building, not just the top-tier assets. AI tools are a critical enabler of this transformation, and a feasible way to turn our ambitions into measurable results for the buildings that need it most.”
The insights presented in the USGBC's report underline the urgent need for actionable strategies that address the sustainability challenges faced by the majority of commercial buildings, thereby fostering an inclusive approach to achieving broader environmental goals.
Source: Noah Wire Services