Regulations And Retrofits

‍Fifth Wall Newsletter: https://mailchi.mp/fifthwall/it-matters-how-buildings-get-to-net-zero 

In September, New York City's Department of Buildings issued a change in Local Law 97: Building owners who can show a good faith effort toward reducing emissions will get a two-year grace period on carbon fines.

• The move came after many condo and co-op associations complained that they could not line up financing in time for the January 2024 deadline to make the necessary retrofits, the Commercial Observer reported.

The good news: There's progress. The city expected that 80% of buildings required to be compliant would meet the standards for LL97. And so far 89% of properties met the city's energy goals this year, the DOB stated. 

• But, that still leaves about 1,500 buildings (some of which are the city's largest skyscrapers) with a ton of work to do in order to avoid LL97 fines, the Commercial Observer reported.
  

The big picture: Delaying action means there will be steeper emissions cuts required down the line to meet long-term goals. The earlier, the better. One of our favorite Substack newsletters, Sustainability by the Numbers written by Hannah Ritchie doubles down on this idea.

• Yes, the upfront costs for technology needed to reduce emissions might be cheaper further down the road. However, "over the medium- to long-term, it's a different story. These investments pay back through reduced fuel costs and efficiency gains such that acting early saves money," writes Ritchie. 

The bottom line: "My advice to building owners and operators: don't delay, because adopting the proper technology to increase the operational efficiency of your assets takes time," writes Brendan Wallace, co-founder and managing partner of Fifth Wall. "There's existing technology you can implement now that saves you money by both avoiding fines and reducing energy bills."