28 Feb, 2022

DOE launches partnership to halve building, factory emissions by 2030

SNL Image

U.S. Energy Secretary Jennifer Granholm says public and private partners will confront the technical, financial and organizational challenges of cutting building and factory emissions.
Source: S&P Global Market Intelligence

The U.S. Energy Department will partner with public and private stakeholders to develop ways to slash greenhouse gas emissions from buildings, factories and homes.

The DOE officially launched the Better Climate Challenge on Feb. 28, a platform through which partners will develop market-based, voluntary goals for reducing emissions from their portfolio of buildings and plants. Participants will pledge to cut their portfolios' operational emissions by at least 50% within 10 years and improve their energy efficiency by about 20%.

The department announced the challenge in November 2021 along with 32 preliminary partners. On Feb. 28, the DOE and its partner agency, the U.S. Department of Housing and Urban Development, said more than 90 participants had signed up, spanning industry, real estate, local government, higher education and other sectors.

Energy Secretary Jennifer Granholm said the program's true potential lies in its ability to create pathways for new organizations to find emissions reductions. "If each of you pulls these reductions off, it is going to be an impressive feat on its own, but what makes this even a bigger deal is your commitment to sharing the details and the data to demonstrate how you did it," Granholm said at a Feb. 28 virtual roundtable with partners.

To achieve targets, participants will scrutinize sources of Scope 1 emissions, including on-site heating and cooling systems, ventilation and lighting as well as vehicle fleets. They will also address Scope 2 emissions associated with the partners' electric power consumption and other energy use, Granholm said.

Program partners will create emissions reduction plans and will participate in working groups to address hurdles and share best practices and solutions, the DOE said. They will report emissions data annually for the next 10 years. The DOE will provide technical assistance and implementation strategies, collect and share data and best practices, and facilitate peer-to-peer learning.

HUD Secretary Marcia Fudge said the program could further the department's goal of lowering the carbon footprint and energy costs of affordable housing. Fudge noted that seven of the participants are public housing and multi-family partners.

"This challenge is more than an opportunity to cut our carbon emissions and make good on the Biden administration's goal of cutting carbon pollution in half by 2030," Fudge said. "It also represents our commitment to the communities that all too often bear the brunt of climate change while seeing too few of the benefits from the energy transition."

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.