Climate Smart Buildings Initiative: Biden-Harris Administration Leads USD 8 Billion Investment for Emissions Reduction

Vantage Market Research

Mar 06, 2024

The Climate Smart Building Initiative has been launched, attracting significant attention and investment, with a view to combating climate change and improving energy efficiency. By 2030, this initiative is anticipated to attract over USD 8 billion in private sector investments, primarily aimed at modernizing buildings through energy-saving performance contracts. This substantial influx of funds is projected to generate approximately 80,000 high-quality jobs across the United States while concurrently reducing greenhouse gas emissions by up to 2.8 million metric tons annually – an achievement equivalent to removing 600,000 gas-powered cars from the roads.

 A key moment in the effort to reduce emissions from the built environment is the commitment of the Federal Programme to connect smart buildings with smart policies.  Initiatives such as these are essential to mitigate the effects of climate change, as buildings consume 40% of the country's energy and contribute 35% of its annual carbon emissions. The Climate Smart Buildings Initiative, an integral component of the President’s Federal Sustainability Plan, aims to slash emissions from Federal buildings by 50% by 2032 and achieve net-zero emissions by 2045.

Moreover, the U.S. Department of Energy (DOE) has allocated USD 61 million for 10 pilot projects designed to revolutionize homes and workplaces into energy-efficient structures. These Connected Communities leverage advanced technology to optimize energy consumption, thus significantly reducing carbon emissions and energy costs. Such initiatives align with the Biden Administration's overarching goal of transitioning to a net-zero carbon economy.

The Smart Building market continues to show promising growth prospects, with a projected compound annual growth rate of 11.73%. Expected to soar from USD 85.1 billion in 2023 to USD 230.9 billion by 2032, this expansion is fueled by innovative solutions and supportive government policies. Notably, the United States remains a dominant force in the global Smart Building market, spearheading numerous IoT projects related to smart and connected buildings, cities, and energy.

As we navigate towards a sustainable future, the convergence of technology and policy underscores the transformative potential of the smart building market. Through collaborative efforts and visionary leadership, we pave the way for a greener, more resilient built environment, driving economic prosperity and environmental stewardship hand in hand.

Smart Building Market Size, Share & Trends Analysis Report by Solutions (Safety and security management, Energy management, Building infrastructure management, Network management, IWMS) by Services (Consulting, Implementation, Support and maintenance) by Building Type (Commercial, Residential, Industrial) by Region (North America, Europe, Asia Pacific, Latin America, The Middle-East and Africa) - Global Industry Assessment (2018 - 2023) & Forecast (2024 - 2032)