Regulatory Framework

NYC Local Law 97 requires most buildings over 25,000 square feet to meet new energy efficiency and greenhouse gas emissions limits starting in 2024, with stricter limits taking effect in 2030. The goal is to reduce the emissions produced by the city's largest buildings by 40% by 2030 and 80% by 2050.

Buildings that exceed their annual emissions limits will face a financial penalty of $268 per metric ton of CO2 equivalent over the limit. For large portfolios, these penalties can range from hundreds of thousands to millions of dollars annually.