Summary

President Trump’s executive order on “Unleashing American Energy” and priorities announced by U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin and Department of Energy (DOE) Secretary Chris Wright emphasize the same principles: cutting energy costs, pursuing an “all of the above” strategy for American energy abundance, strengthening the nation’s electric grid, streamlining federal permitting processes, and fostering innovation in artificial intelligence (AI).

The House Bipartisan Task Force on AI released a December 2024 report underscoring that America's economic and national security depend heavily on a robust and modernized power grid. Our nation needs enough energy to meet growing electricity demands driven by AI, advanced manufacturing, electric vehicle adoption—and to power our buildings. US-DOE projects that data centers will consume up to 12 percent of U.S. electricity by 2028, primarily to meet AI and cloud computing needs.

The U.S. commercial real estate industry has a central role to play in achieving the country’s energy and economic goals. With energy demand surging, real estate is a critical partner to support energy investments, increase energy efficiency, and deliver energy savings across the economy.

Key Takeaways

Avoided energy use—or “nega-watts”—represents the most cost-efficient strategy for strengthening U.S. energy security. Building upgrades that reduce power demand save consumers money, support grid reliability, and free up energy use for more energy-intensive facilities like AI data centers and manufacturing.

Grid reliability is essential. With surging electricity demand from AI and other key sectors, it is crucial to expand grid capacity and invest in long-distance transmission. Federal permitting reform is critical to speed up energy infrastructure projects.

RER supports a national “all of the above” energy strategy that invests in building efficiency, grid modernization, faster permitting, and innovation across all energy sources.

See the full fact sheet.

Summary

Regulations in the U.S. and abroad seek to require companies to publicly disclose climate-related risks on their finances, operations, and assets. Some of these rules are proving more durable than others. While the Trump administration has rescinded Biden-era federal climate disclosure rules from the Securities and Exchange Commission (SEC), state governments and international regulators are advancing reporting regimes that could have major implications for U.S. real estate companies.

Key Takeaways

Scope 3 emissions—such as tenant energy use or embodied carbon in building materials—are not under the direct control of real estate owners and should remain voluntary.

The SEC’s climate disclosure rule is on hold and not expected to advance during the current administration.

California’s climate disclosure laws (S.B. 253 and S.B. 261) will begin taking effect in 2026, requiring large companies doing business in California to report emissions and climate-related financial risks.

The European Union has postponed compliance dates for its Corporate Sustainability Reporting Directive (CSRD) and has narrowed its scope substantially. In February 2025, the European Commission adopted a package to apply the CSRD only to the largest companies (more than 1000 employees), and to lessen Scope 3 reporting requirements on emissions from smaller companies in a reporting company’s value chain. Large U.S. companies with EU operations may still face disclosure requirements when the CSRD goes into full effect.

See the full fact sheet.

Summary

The Trump administration and congressional Republicans are committed to major tax code reform. Elimination and phase-down of Biden-era clean energy tax credits, signed into law in the Inflation Reduction Act of 2022 (IRA), will likely be achieved by the Republican majority.

For a description of the Biden-era IRA energy tax incentives important to commercial real estate, see RER’s fact sheet here. For a description of the changes to IRA clean energy incentives proposed in the House Republican bill marked up by the Ways & Means Committee on May 14, 2025, see RER’s fact sheet here. The situation is very much in flux. It is unclear which, if any, IRA tax incentives survive current tax reform discussions taking place in the spring-summer of 2025.

As long-term investment decisions are being made and real estate projects are already underway, uncertainty around the future of these tax incentives poses significant risks. RER encourages that any potential phase-down of IRA energy incentives take place over a number of years. Existing projects that have begun construction and are relying on these credits must be permitted to continue using them until the projects are completed.

Key Takeaways

Tax incentives that are most used and best promote an “all of the above” energy strategy should be preserved. Several IRA provisions directly benefit commercial and multifamily buildings—including incentives for retrofits, solar and battery systems, and residential construction.

Reports show that repealing the IRA could result in nearly 790,000 job losses, decrease GDP by more than $160 billion in 2030, and increase consumer energy costs by $6 billion annually by 2030.

Many of the most impactful clean energy investments are occurring in Republican-held districts—79 percent of current clean power capacity and 77 percent of new additions are located in GOP districts.

See the full fact sheet.

Summary

The federal ENERGY STAR program must be preserved as a voluntary, non-regulatory public-private partnership. Proposed budget cuts and agency staff reorganizations from the Trump administration indicate that it may eliminate the program. Commercial, residential, and manufacturing stakeholders all rely on the program heavily and are united in advocating for its preservation.

Meanwhile, a number of progressive cities and states (map) have enacted building performance standards (BPS) mandates—with widely varying rules on emissions, electrification, and compliance timelines. The regulatory specifics vary from jurisdiction to jurisdiction—making compliance exceedingly complex and expensive. To help bring consistency to the nationwide “patchwork” of BPS regulations, RER has developed a peer-reviewed policy guide outlining 20 key considerations for any jurisdiction adopting a BPS law.

In addition, non-governmental organizations (NGOs) have developed their own BPS-type standards and climate accounting frameworks—chief among them the Science Based Targets Initiative (SBTi) and the World Resources Institute’s Greenhouse Gas (GHG) Protocol. These NGO standards increasingly influence both regulatory policy and private capital markets. Many real estate lenders and equity investors have adopted SBTi and GHG Protocol frameworks to align with their ESG investment principles.

Key Takeaways

• Voluntary, non-regulatory federal guidelines like ENERGY STAR recognizing “high performance” real estate remain critical. These programs help quantify energy savings, attract capital, place less strain on the grid, and promote innovation in U.S. buildings.
• More than 330,000 buildings—representing nearly 25 percent of U.S. commercial building floor space—utilized EPA’s Portfolio Manager software last year.
• ENERGY STAR-certified buildings achieve an average of 35 percent less energy usage compared to similar non-certified buildings. The program has saved businesses and families nearly $200 billion in utility bills since 1992, including $14 billion in 2024 alone
• States and cities are adopting BPS mandates that often impose rigid electrification or net zero emissions targets. These laws vary significantly and frequently penalize buildings already recognized as high-performance assets under federal programs.
  
  

See the full fact sheet.

The U.S. Environmental Protection Agency’s ENERGY STAR for Certification for Buildings program is a proven platform for building owners and managers to “label” their assets as top energy efficiency performers in the marketplace.

Investors, tenants, and employees seek buildings and workplaces with ENERGY STAR ratings because they signal well-managed, profitable assets with reduced carbon footprints.