Green building has long been a driving force in sustainable development, shaping how construction designs, builds and operates to minimize environmental impact. However, these initiatives face an uncertain future with the shift in U.S. leadership.
Overview of Green Building Initiatives Under Previous Administration
Under the Biden-Harris administration, the United States witnessed a significant advancement in green building initiatives. These efforts rose due to comprehensive policies and substantial investments promoting sustainability and energy efficiency.
A cornerstone of this approach was the Inflation Reduction Act (IRA). Enacted in August 2022, the IRA allocated around $400 billion to climate-related projects. This landmark legislation provided tax incentives to renewable electricity producers and manufacturers of batteries and components for wind and solar power, accelerating clean energy integration into the nation’s power grid.
Complementing the IRA is the Infrastructure Investment and Jobs Act (IIJA), which dedicated over $50 billion to overhaul the nation’s electricity policies. This included modernizing the grid to accommodate renewable energy resources and bolstering domestic nuclear power. The IIJA also invested in carbon capture and storage, battery material reprocessing, and green hydrogen hub development.
The Federal Sustainability Plan also set ambitious targets for federal agencies, aiming for net-zero greenhouse gas emissions by 2050. This directive prioritized the transition to electric vehicles, the adoption of clean construction materials and 100% clean electricity generation in buildings. By June 2024, federal operations were on track to achieve a 38% to 56% reduction in greenhouse gas (GHG) emissions compared to 2005 levels.
Collectively, these initiatives advanced green building standards while placing the U.S. as a leader in global sustainability efforts.
The New Administration’s Stance on Green Building
The new U.S. administration has initiated major changes in environmental and energy policies, directly impacting green building initiatives nationwide. On his first day in office, President Trump signed executive orders reversing previous climate policies, including withdrawing from the Paris Climate Agreement and disbanding the Interagency Working Group on the Social Cost of Greenhouse Gases.
Trump also plans to reallocate climate funds from policies such as the IRA. The first step the White House has taken is pausing funding for the IRA and IIJA and suspending the disbursement of grants and loans to clean energy projects.
The administration’s central focus is promoting fossil fuel development. The “Unleashing American Energy” executive order declared an “energy emergency,” expediting permits for oil and gas projects and suspending environmental regulations that were “obstacles” to production.
Expected Impacts on Green Building in the U.S.
The changes in environmental and energy policies influence the trajectory of green building initiatives nationwide. Some of them present challenges and opportunities for the sustainable construction sector.
Regulatory Changes
One of the administration’s initial actions was issuing Executive Order 14148, which rescinded numerous environmental regulations. This order dissolved key climate-focused offices and councils, reducing federal ruling over climate change mitigation.
Additionally, the expansion of fossil fuel and lifted restrictions on oil and gas development accelerate traditional power projects. While this could deprioritize renewable electricity initiatives and weaken environmental oversight, it could also lead to less stringent building codes and standards for energy efficiency.
Industry Response
In light of these policy shifts, the construction industry faces complexities. While deregulation may reduce compliance costs and expedite project timelines for conventional builds, it poses challenges for firms specializing in green construction. The diminished federal support for sustainability initiatives may slow the adoption of efficient technologies and practices.
However, this environment also allows leaders to advocate for sustainable building. By highlighting the cost savings and growing demand for green construction, companies can make a compelling case to clients and investors.
Additionally, construction may still encourage sustainability by focusing on proper maintenance practices. For instance, neglected drain filters result in 90% of premature motor failures on certain machinery. By prioritizing diligent upkeep, firms can extend equipment life span and enhance project sustainability.
Financial Implications
The halt on funding for green energy projects affects billions of dollars allocated for sustainable infrastructure and clean electricity developments. This suspension creates uncertainty for ongoing and future green building projects.
Moreover, canceling programs like the Green Proving Ground eliminates a source of support and validation for new green construction methods. Discontinuing such programs may deter investment in sustainability, as developers and investors typically use federal endorsements to mitigate risks.
Global Repercussions of U.S. Green Building Policy Shifts
The modifications in U.S. green building initiatives can have negative consequences worldwide, especially since the construction sector substantially contributes to GHG emissions. The building sector contributes 37% of total carbon pollution globally, involving multiple harder-to-abate sectors.
The U.S. has historically played a pivotal role in promoting sustainable construction practices. Changes in its policies may influence international efforts to reduce emissions in the building sector.
A potential deprioritization of green building standards could also lead to increased emissions. Experts already predict a 40% chance of the global temperature rising 1.5 degrees Celsius above pre-industrial levels in 2025, increasing the frequency and severity of climate events.
Additionally, the construction sector consumes 40% of raw materials and directs 145 million tons of waste to landfills. Policy changes that reduce the importance of sustainable practices may exacerbate these issues, leading to increased resource ecological degradation.
Strategies to Maintain Sustainable Construction Despite Policy Changes
While federal policy changes may slow down green building initiatives, the construction sector can still drive sustainability forward. Developers, businesses, and local governments have the power to implement eco-friendly practices and ensure green building remains a priority. Below are key strategies that can help maintain sustainable construction.
1. Continue Investing in Green Building Without Federal Incentives
Many brands and developers recognize energy efficiency’s long-term financial and environmental benefits. Therefore, they continue to invest in sustainable solutions, even without federal support.
Investing in renewable solutions is one way to maintain momentum in green building. For example, geothermal systems offer economic and environmental advantages. They can reduce heating costs by 70% by lowering power consumption more than traditional HVAC systems. By prioritizing this sustainable infrastructure, companies can appeal to a growing market of eco-conscious consumers and investors.
2. Stay Updated on State and Local Government Initiatives
Many state and local governments may continue pursuing sustainability initiatives that encourage green building. In some cases, these local efforts are even more ambitious than national policies, offering incentives, grants and tax breaks.
For example, states like California, New York and Massachusetts have implemented stringent building codes that require new construction projects to meet higher energy efficiency standards. California’s Title 24 continues to mandate reduced carbon emissions and encourage the integration of sustainable materials and technologies.
Staying informed about these initiatives allows business owners to utilize funding opportunities and tax credits. Plus, cities are increasingly adopting green building certification requirements. Keeping up with these local policies is key to prioritizing sustainability.
3. Build Partnerships With International Organizations
Collaboration with international organizations can fill gaps in funding, research and best practices for sustainable construction. Many global initiatives continue to drive progress in green building.
For example, the World Green Building Council works with companies and governments worldwide to promote sustainable building practices. The Global Alliance for Buildings and Construction is also key in advancing energy efficiency and reducing emissions.
These organizations benefit enterprises by providing frameworks, technical assistance and funding opportunities. They also make green construction projects more accessible, ensuring they remain top of mind when federal incentives decline.
4. Invest in New Technologies
Advancements in technology continue to drive innovation in sustainable construction, making it easier to implement green building practices. By adopting cutting-edge solutions, firms can improve electricity efficiency, reduce waste and optimize building performance for long-term sustainability.
One emerging technology transforming construction is extended reality (XR), which includes virtual, augmented and mixed reality. XR applications allow architects and engineers to visualize, design and optimize building layouts in digital environments. This reduces material waste and improves efficiency, leading to more eco-friendly construction practices.
Researchers project the XR market to grow by 25% between 2023 and 2032, reaching $38.8 million. This growth indicates an increased adoption of XR technology across various industries. Companies that integrate it into their workflows can simulate energy-efficient designs and streamline operations, ultimately reducing costs and environmental impact.
5. Engage With Local Communities to Understand Needs
Sustainable construction also ensures buildings and infrastructure serve the people using them. Therefore, innovators should develop a further understanding of the issues that locals experience.
One major challenge in many communities is affordability. About 34% of homeowners reduce unnecessary spending once a year to afford their utilities, while 23% struggle to fully cover their energy costs. Efficient building designs can be a solution since they lower long-term expenses.
Rising power costs, housing affordability and climate resilience are real concerns among U.S. residents. Developers who work closely with local stakeholders can ensure their projects address these concerns while aligning with sustainability goals.
Sustaining Green Building Efforts in a Shifting Policy Landscape
The new U.S. administration has brought notable changes in federal priorities concerning green building initiatives. While these changes could slow progress on sustainability at the national level, they don’t mark the end of green construction efforts.
Instead, they highlight the need for sector leaders and local governments to step up and drive sustainable innovation. By adapting strategies and implementing innovation, the construction industry can continue to lead the change toward a greener future.