Denver’s commercial buildings face new mandates aimed at significantly reducing carbon emissions as part of the city’s ongoing commitment to sustainability. The Energize Denver building performance policy shows what’s possible with bold action. It needs buildings to cut their emissions 30% by 2030. In Denver, for example, just over 17,000 commercial and multi-family buildings account for almost half of the city’s greenhouse gas emissions. This shocking figure has pushed local leaders to make bold moves.
These accomplishments are most recently exemplified by the city of Denver’s bold regulations to phase down emissions. The percentage each building needs to reduce varies based on the size and type of building. The central aim is to achieve net zero emissions across the city by 2040. Climate action Colorado has set a target of 50% reduction in greenhouse gas emissions by 2030. The state aims to reach complete elimination by 2050.
Denver’s Office of Climate Action, Sustainability and Resiliency has already worked to change the original rules in a number of ways. Their intent is to help ensure compliance, not mete out punishment. After gathering feedback from approximately 2,000 building owners and businesses, the city extended interim compliance deadlines from 2025 to 2028 and final compliance deadlines from 2030 to 2032. For building owners who need more time, extensions beyond 2032 can be sought.
Adjustments to Compliance Rules
City officials appear to have listened to the complaints of building owners. In addition, their revision to the compliance rules shows an admirable responsive streak. The city halved the fines for not hitting energy usage targets. This amendment to the proposal reduces the cost to the violator of failing to comply. As a result, this decision has faced both praise and condemnation from stakeholders beyond the African-American community.
Stephen Shepard, the executive vice president of the Denver Metro Building Owners and Managers Association, has been sounding alarm bells. He is especially concerned about the default schedules and punishments established. He stated, “They’ve got to tread lightly and be careful of the cost of the achievement because it’s just going to wreck the economy.” Shepard’s overarching message was about finding equilibrium — not lowering sustainability ambitions but recognizing economic reality.
Some climate advocates maintain that the city has already fallen behind. They think it needs to pick up the pace in fighting climate change. Ean Tafoya voiced disappointment with both Denver and state officials for wanting to slow down the transition towards a sustainable future. He remarked, “I’m disappointed in both Denver and the state for wanting to slow down this transition that we desperately need.”
Economic Implications of Sustainability
The interaction between sustainability efforts and economic consequences continues to be a source of discord between advocacy groups. Most building owners want to see the industry and the world progress on environmental goals. They fear that heavy-handed regulations would negatively impact their livelihoods.
Elizabeth Babcock noted, “When you have ambition, you need flexibility.” And when you talk to many in the business community, they will say that. They’re educating on and advocating for a slower, more measured approach to carrying out these big changes.
Advocates of the Energize Denver initiative want to make sustainability a requirement. They contend that it is absolutely essential to the long-term health of the environmental and local businesses. One anonymous source stated, “We care about sustainability. It’s part of being a good business leader and a good person.” This view reflects a positive trend toward an understanding that environmental stewardship doesn’t have to be at odds with economic prosperity.
Future Outlook and Community Response
As Denver navigates its path toward achieving these ambitious carbon reduction goals, the response from business owners will be vital in shaping the effectiveness of these initiatives. The city’s decision to assist businesses in complying rather than imposing fines reflects an understanding of the challenges faced by building owners.
“Smhai brought up that many of these compliance efforts have already started among numerous buildings in the city. “It’s probably ahead of the curve for a lot of buildings in the city,” he said, noting that those committed to sustainability had begun working on energy reduction long before Energize Denver was established.”
Even with this progress, significant challenges persist as many building owners continue to flout the law. Tafoya pointed out, “A lot of people are just being non-compliant, and now we have to shift the goal posts so people aren’t fined.” This admittedly anecdotal observation nevertheless has us worried that leniency will do the same to hard-fought gains towards sustainability and environmental outcomes.