The regulation of embodied and operational carbon emissions from homes and buildings in the U.S. is about to explode as states and municipalities implement policies to meet 2030 climate goals.
Examples of cities that have set aggressive zero carbon targets by 2030 include:
Other cities with strong emissions reduction goals include:
As these municipalities inch closer to 2030 and their stated climate goals, they’re exploring a variety of codes, regulations, and policies that will translate into a new level of scrutiny for builders and developers.
Always on the leading edge, California recently implemented one of the most ambitious embodied carbon regulations in the U.S., mandating the disclosure and reduction of embodied carbon for all commercial buildings over 100,000 square feet.
This regulation affects around 45% of California’s commercial real estate market and is projected to cut carbon emissions by approximately 6 million metric tons annually by 2030. While these regulations are focused on commercial buildings for now, they’re inevitably going to make their way into the residential sector.
Furthermore, California will enforce carbon data disclosure in 2025 for businesses with over $1 billion in annual revenue, including Scope 3 emissions by 2026. These Scope 3 emissions, which include embodied carbon from building materials, represent an often-overlooked yet significant portion of the carbon footprint for real estate portfolios—accounting for up to 50% of total emissions for some companies.
Other states, like Massachusetts, Colorado, New York, and New Jersey are considering similar mandates to address carbon emissions.
Because of these emerging regulations, new risks will materialize for stakeholders throughout the building industry, such as non-compliance fines, permitting delays, and reputational damage.
Yet, many builders and developers still lack the tools to measure, let alone mitigate, embodied carbon, underscoring the need for enhanced carbon accounting tools that evolve alongside new mandates that can provide real-time insights.
Fortunately, such tools are being developed, such as a new ANSI standard, 1550, titled "Standard for the Calculation and Labeling of the Embodied Environmental Impacts of Dwelling Units Using the Environmental Performance Index.”
This standard will define the scope for calculating embodied carbon and provide a methodology for conducting calculations for residential projects. The standard is currently under development and is expected to be released sometime in 2025.
If you’re interested in learning more about the quickly evolving landscape of embodied and operational carbon, associated risks, and emerging codes and regulations, Green Builder Media has you covered!
We have many blogs and webinars on our website about constructing net zero carbon homes, measuring carbon, specifying low carbon products, emerging carbon requirements, and abating emissions through the purchase of high quality carbon offsets.
We also invite you to join us for two upcoming webinars:
For anyone interested in learning more about zero carbon building, I encourage you to enroll in Green Builder Media’s COGNITION Academy, which has robust courses on net zero carbon building, green building fundamentals, green product essentials and green building program like ENERGY STAR, Zero Energy Ready Homes, Indoor airPLUS, WaterSense, and HERS ratings.
And, be sure to check out the COGNITION Carbon Offsets Marketplace if you’re interested in purchasing carbon offsets to mitigate emissions from your products, projects or lifestyle.