英文公平建筑改造的市场

hRM

AMarketplaceforEquitable

BuildingRetrofits

HowLessonsfromMassachusettsCanHelpScaleDecarbonization

toMeetClimateGoals

iStockphotoReport/August2024

AuthorsandAcknowledgments

Authors

EllaMure

EvaRosenbloomLucasToffoli

Authorslistedalphabetically.AllauthorsarefromRMIunlessotherwisenoted.

Contacts

EvaRosenbloom,erosenbloom@EllaMure,emure@

LucasToffoli,ltoffoli@

CopyrightsandCitation

EvaRosenbloom,EllaMure,andLucasToffoli,AMarketplaceforEquitableBuildingRetrofits:HowLessonsfromMassachusettsCanHelpScaleDecarbonizationtoMeetClimateGoals,RMI,2024,

/

insight/a-marketplace-for-equitable-building-retrofits/.

RMIvaluescollaborationandaimstoacceleratetheenergytransitionthroughsharingknowledgeand

insights.Wethereforeallowinterestedpartiestoreference,share,andciteourworkthroughtheCreativeCommonsCCBY-SA4.0license.

/licenses/by-sa/4.0/

.

AllimagesarefromRMIunlessotherwisenoted.

Acknowledgments

Theauthorswouldliketothankallofourvaluablepartnersandthefollowingindividualsfortheirreviewandinput:

•BeverlyCraig,MassCEC

•EmilyJones,LISC

•TimMcDonald,OnionFlatsArchitecture

ThisreportisbasedonRMI’songoingeffortsengagingwithMassachusettshousingandenergystakeholderstoadvancebuildingdecarbonization.RMIwouldliketothankTheJaketFoundationandAdageCapital

Managementforgenerouslysupportingtheseeffortsandmakingthisreportpossible.

AMarketplaceforEquitableBuildingRetrofits/2

hRM

AboutRMI

RMIisanindependentnonprofit,foundedin1982asRockyMountainInstitute,thattransformsglobalenergysystemsthroughmarket-drivensolutionstoalignwitha1.5°Cfutureandsecureaclean,

prosperous,zero-carbonfutureforall.Weworkintheworld’smostcriticalgeographiesandengage

businesses,policymakers,communities,andNGOstoidentifyandscaleenergysysteminterventionsthatwillcutclimatepollutionatleast50percentby2030.RMIhasofficesinBasaltandBoulder,Colorado;NewYorkCity;Oakland,California;Washington,D.C.;Abuja,Nigeria;andBeijing.

AMarketplaceforEquitableBuildingRetrofits/3

TableofContents

ExecutiveSummary............................

AMarketplaceforBuildingDecarbonization.............

Introduction.............................................

AcceleratingBuildingDecarbonizationRetrofits.......................

RealizingthePotentialinMassachusetts........................

NotableObservationsoftheCurrentMarket.........................

Partnerships,Partnerships,Partnerships.......................

APlatformforKnowledgeSharing............................

ChallengesFacedatEachPhaseofProjectDelivery.................

WhatDoesItTaketoShifttheMarket?................

KeyParadigmShiftsforDecarbonizationAlignment....................

Whole-BuildingThinking:Envelope-FirstandIntegratedProjectDelivery....

StandardizetheScope:BuildingsCan’tBeSnowflakes...............

LookBeyondIncrementalCosts.............................

FoundationalandStrategicActions..............................

BuildMarketCapacity:SupportInnovation......................

CreateaFavorableLandscape..............................

StreamlinetheProcess:ASystematizedApproach..................

Conclusion:ChartingthePathForward................

Appendix...................................

Endnotes....................................

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AMarketplaceforEquitableBuildingRetrofits/4

ExecutiveSummary

Decarbonizingexistingbuildingsischallenging.Weneedtomakeitsimpler,moreaffordable,andcommonplacetoachieveclimategoals.

ThemajorityofUSbuildingsthatwillexistin2050arealreadystanding.Thismeansthatdecarbonizing

inefficientexistingbuildingsthatrunonfossilfuelsisfundamentaltomeetinglocalandglobalclimategoals.Yetthetypicalretrofittingprocessdependsheavilyonownersandisfraughtwithuncertainty.Conflicting

guidance,highcosts,fragmentedfinancing,andadministrativeburdensareallsignificanthurdlesthatbothownersandserviceprovidersface.Thesechallengesposedbycurrentpractices,processes,andmethodsimpedethewidespreadadoptionofretrofittingstrategiesaimedatenhancingbuildingperformanceandreducingcarbonpollution.

Athrivingmarketforbuilding

decarbonization

canfacilitateeasierandmoreaffordable

pathwaysforstakeholders.

Inrecentyears,RMIhasundertakenstrategiceffortstoacceleratedeepenergyretrofitsfortheaffordablehousingmarketsegmentacrossMassachusettsinordertoeliminateon-sitefossilfuels,maximizeenergyefficiencies,

significantlyreducecarbonemissions,andenhancethermalcomfortandindoorairqualityforlow-andmiddle-incomeresidents.Theongoinginitiativeisdesignedtocatalyzethegrowthofaviableregionalmarketfor

buildingdecarbonization,pavingthewayforotherstofollowandtoscaletheeffortnationally.Bydeveloping,refining,andsharingindustrybestpractices,processes,andstrategies,wehopetoenableotherregionstoapplyandadaptthemtothosegeographiesaswellasotherbuildingtypologiesandmarketsegments.

Thisreportoutlinesourprogresstodateandsynthesizesexperiencesfromvariousbuildingdecarbonization“lighthouseprojects.”Theseprojectsserveasexemplarymodels,demonstratinginnovativestrategies

andtechnologiesthatsignificantlyreducecarbonemissions.Thefirstpartofthisreportdetailsnotable

observationsthatenableorinhibitdecarbonizationprojects.Keyenablingcomponentssuchasenergy

efficiencyimprovements,extensivestakeholderengagement,andadvancedbuildingmaterialsaredescribed,andcommonchallengesareidentified,includingdifficultieswithdecarbonizationassessments,financial

barriers,andadministrativeburdens.

Thesecondpartdistillslessonslearnedintosuggestedcrucialparadigmshiftstosupportabroadand

durablechangeinthemarket,suchasadoptingholisticbuildingdesignapproachesandintegrating

standardizedframeworks.Asaresultofdirectprojectengagements,RMIhasdevisedfoundationaland

strategicactionstocreatealandscapeconducivetobuildingretrofitsthatbenefitlow-incomehouseholds.

AMarketplaceforEquitableBuildingRetrofits/5

KeyTakeaways

Theseinsightsaredesignedtoaddressdecarbonizationchallengesacrossdiversegeographiesandmarketsegments,promotingindustrygrowth,anequitableprocess,andrapidadoptionatascalethatalignswithclimatetargets.

NotableObservationsoftheCurrentMarket

•Extensivealignmentacrossstakeholdersinvestedinachievingclimategoalsfostersmoremomentumindevelopingandsupportingapipelineofprojects.

•Transparentknowledgesharingandexchangeofprojectdatacanbetterinformincentiveprogramdesignandraisethelevelofregionaltechnicalproficiency.

•Complexprocesses,administrativeburdens,technicalchallenges,insufficientmarketcapacity,economicbarriers,anddelayedidentificationofdecarbonizationworkleadstoinefficienciesand

missedopportunitiesthathindertherapidscaleofdecarbonizationinitiatives.

ParadigmShiftsProposed

•Stakeholderscouldshiftfromviewingbuildingsasacollectionofisolatedcomponentstoevaluatingbuildingsascomprehensivesystemsinordertoleverageefficiencieswithenvelope-firstand

integratedprojectdeliveryapproaches.

•Stakeholderscouldshiftfromconductingassessmentsonabuilding-by-buildingbasistodevelopingstandardizedassessmentsandcalculationtoolsthatenableexpediteddecarbonizationfeasibilityanalysisandencouragescalablesolutions.

•Stakeholderscouldshiftfromfocusingontheincrementalcostdifferencebetweena

decarbonizationretrofitandabusiness-as-usualrenovationtocapturingthefullvalueoftheretrofitthatcomprisesallexpecteddirectandindirectbenefitsoverthelifeofthebuilding.

FoundationalandStrategicActionsSuggested

•BuildmarketcapacitywithinnovationandR&Dtobolstermoreefficient,cost-effectivesolutionsandmethods.Fostercollaborationwithintheindustrytodrivetechnologicaladvancementsandbestpracticesinbuildingdecarbonization.

•Cultivateanecosystemofcollaboratingstakeholderstoalignsupportivebuildingdecarbonization

policyandfinancing.Integratedecarbonizationintoexistingrolesandagenciestosupportamore

favorablelandscapewithlowereconomicbarriersandbetteraccesstogrants,subsidies,andfinancing.

•Streamlinethedecarbonizationretrofitprocesstoengagepropertyownersandkeystakeholders

earlyintheprocess,enhanceadoptionacrossvariousprojecttypes,anddistributebenefitsequitably.

Thisresearchunderscoresthecriticalneedforaviablemarketandastreamlinedprocesstomake

buildingdecarbonizationmoreaccessibleandcost-effective.Byintegratingkeycomponents,addressingtheidentifiedchallenges,encouragingnecessaryparadigmshifts,andimplementingstrategicactions,stakeholderscanstimulateathrivingmarketforbuildingdecarbonizationanddrivesignificantprogresstowardalow-carbonfuture.

AMarketplaceforEquitableBuildingRetrofits/6

AMarketplaceforBuilding

Decarbonization

Introduction

Existingbuildingsareasignificantcontributortoglobalgreenhousegas(GHG)emissions.iAscarbon

emissionsaccumulateintheatmosphere,theirimpactonglobalwarmingintensifies.Thismeansthat

emissionsreleasedtodaywillhaveatleastthreetimesgreaterimpactthanfutureemissionsincausingtheplanettooverheatby2050.1Reducingcurrentcarbonemissionspromptlyisthereforeimperative,giventheirheavierweightcomparedwithfuturepollutingemissions.

Thereisanurgencytodeveloparobustmarketforbuildingdecarbonization

inordertomeetclimatetargets.

Dramaticallyreducingthisclimatepollutionrequiresretrofittingexistingbuildingstoimproveenergy

efficiencyandintegratezero-emissionsandrenewableenergysources.Arecentlypublishedreport

indicatesthatapproximately92%ofthenationalresidentialbuildingstockwouldrequirearetrofitin

ordertoalignwithclimatetargets.2ThisresourceprovidesmarketguidanceonscalingdecarbonizationretrofitsofexistingresidentialbuildingsintheUnitedStatesandinteractive,data-drivendashboards

andtools.Thiswillnotonlyrequirefullelectrificationofallsystemsandappliancesbutmayalsoincludevaryinglevelsofimprovementstothebuildingenvelope.(SeeWhatisadecarbonizationretrofit?)

Decarbonizingthenation’scurrentresidentialbuildingstockwillnecessitateadramaticincreaseinthe

currentstandardefficiencyretrofitrate.3Present-dayindustrypracticesmaynotreflectthetechnical

expertiseneeded,andlocalmarketsmaynotyethavethecapacitytodeliveronthisendeavor.Infact,

researchhasfoundthatthecurrentmarketdeliverycapacityisdecliningandisnotabletosustainasteadystateforbaselinebuildingneeds,especiallyinthefaceofanydeferredmaintenance.4Thiswarrantsaclearshiftinstakeholderbehaviorandindustrypractices.Effortstoinduceandsupportthisshiftshouldbe

focusedonscalablesolutions,favorablepolicies,andprogrammaticsystems.

iNationally,buildingoperationscontributeto23%ofannualUSGHGemissions(see

/insight/financing

-

building-decarbonization-leveraging-a-sector-wide-carbon-model-to-prioritize-capital-flows/),withurbanareas

representingalargeportionduetodenserdevelopment.IncitiessuchasBoston,Massachusetts,buildingsaloneaccountfor

68%ofemissions(see

/departments/environment/bostons-carbon-emissions

),comparedwith35%ofstatewideemissions(see

/info-details/massachusetts-clean-energy-and-climate-metrics

).

AMarketplaceforEquitableBuildingRetrofits/7

Developingaviablemarketforbuildingdecarbonizationcanreducecostsandacceleratethepaceof

energyretrofits,thusincreasingthevalueofthenationalresidentialbuildingstockwhiledrivingdown

emissions.Athrivingmarketencouragesinnovation,competition,andefficiency,whilealsosignaling

demandandspurringfurtherR&D.Asthemarketmaturesandindustryproficiencygrows,implementation

costswilldecrease,makingretrofitsmoreaccessibleandcommonplace.Tofosterasupportive

environmentforbuildingdecarbonization,keystakeholdersmustcollaborateastheyenhanceprograms,policies,andtechnicalandfinancingsolutions.Additionally,acompellingbusinessandsocialcasefor

decarbonizationthatemphasizesthevalueofnon-energybenefitscanbehelpfulinincreasingadoptiontomakeretrofitsmoremainstream.5Establishingsystemsandframeworksthateffectivelyshiftthemarketisespeciallycriticalnow,asthewindowtohitclimatetargetsgetssmaller,andincentivesandfunding

opportunitiesbecomeavailable.

Whatisrequiredtofosterathrivingmarketandwhataretangiblestepsthatkeystakeholderscantaketosupportit?Avitalfirststepistoreimaginehowbuildingsareconstructed,renovated,operated,

managed,andfinancedtoprioritizeenergyefficiencyanddecarbonization.Subsequently,thesystemsandtheprocessesinplacewithintheecosystemmustbestreamlinedandmadeequitabletoaccomplishthisprogression.Andfinally,innovativetechnologiesandprocessescanthenbridgethegapinprojectdeliverywithadvancedandreplicableapproachestoretrofitbuildingsbetter,faster,andatalower

cost.Exhibit1illustrateshowadvancesinsolutionsandpractice,suchasshowcasingthefeasibilityofinnovativeconstructionmethods,materialsupplychains,andsupportiveworkforcedevelopmentcouldaddresscapacityconstraintsinthebuildingssector.

Thisreportoffersstrategiesforpropellingmarket-driveninitiativesandaligningstakeholdersonbuilding

decarbonizationgoals.ThefollowingsectionsprovideanoverviewofRMI’sinsightsgainedfromcultivatingaviablemarketforbuildingdecarbonizationinMassachusetts.ItbeginswithanoverviewofRMI’sexperienceinfosteringamarketplaceforbuildingdecarbonizationofaffordablemultifamilyhousing(AMFH).Throughclosecollaborationwithkeystakeholdersandtacticaleffortstoshepherddeepenergyretrofitprojects

Exhibit1Innovativetechnologiesandmethodscanhelpachievenecessarygrowthinmarketcapacity

Marketdeliverycapacity

Productoftechnicalsolutions,workforce,productivity,businessmodels,regulatory/financingconditions,etc.

p

a

c

et

k

r

a

M

ity

ac

required

Weneedtorampupquicklytomeetdecarbonization

retrofitneeds

Basemaintenancedemand

Datedsolutions,anaging-out

workforce,decliningproductivity,

Currenttrendsfallshortofmeetingthesteadystateanddeferredbuildingmaintenanceneeds

andinstitutionalbarrierscontribute

toadecliningcapacitytrend

Today2030

RMIGraphic

AMarketplaceforEquitableBuildingRetrofits

Innovativetechnologiesandmethodscanhelp

expandcapacitytomeetourneeds

Forillustrativepurposesonly

/8

throughfeasibilityandconstruction,RMIhasidentifiedprevailingchallengesandthekeyshiftsnecessary

forintegratingdecarbonizationintoindustrybestpractices.Theseoutlookscanalsobegintoformulate

decarbonizationprogramming.Thereportconcludesbyspotlightingstrategicactionsvitalforachievingandfurthersupportingthedevelopmentofarobustmarkettoscalebuildingdecarbonization.

Cultivatinganecosystemofstakeholders,processes,

programs,andpoliciestoadvancefromconventionalpracticesiscentraltoasustainedmarketshift.

TheidentificationofthesechallengesandstrategiesemergedfromspecificexperiencessupportingdeepenergyretrofitsintheMassachusettsmarket.However,similarinsightsfromaseriesof

decarbonizingaffordablehousingconveningshostedbyRMIacrossvariousgeographiessuggesta

broaderrelevance.6EngagementsliketheseintheAMFHsectorhavebeenusefulinvalidatingthe

similarityofcommonchallengesaddressedinthisreport.Technicalsolutionsmaydifferacross

buildingtypologiesandclimatezones,yettheobservations,lessonslearned,andactionablestepsareveryapplicabletoothermarketsectorsandregions.Cultivatingadecarbonizationmarketplacecan

benefitvariousbuildingtypesandownershipstructuresbystreamliningprocesses,equitablyprovidingaccessibleresources,andenhancingcost-effectiveretrofitapproaches.

Whatisadecarbonizationretrofit?

ThisreportreferstobuildingretrofiteffortsthatachieveoperatingperformancelevelsthatalignwithUSclimatetargets—decarbonizingUSbuildingstockbefore2050.Inthiscontext,adecarbonizationretrofiteliminateson-sitefossilfueluse,operateswithlowpowerandthermalloads,obtainsallenergyfromacarbon-neutralgridorlocalcarbon-neutralresources(currentlyorbefore2050underaplannedscenario),andreducesimpactonthegridthroughdemandreductionandgridinteractivity.ii

Somebuildingscanreachthisgoalmainlywithelectrificationofallbuildingequipmentandappliances;

however,manymorewillrequirevaryinglevelsofenergyefficiencymeasuresandimprovementstothe

buildingenvelopetoreduceenergyloadsandimpactsonlocalgridinfrastructure.Deepenergyretrofits(DERs)representthemostcomprehensivelevelofdecarbonizationretrofitscapableofreducingenergy

use,associatedoperatingemissions,andutilityburdens.DERsaremorethanstandardweatherization;

theyprioritizeenhancingthethermalcapacityandairtightnessofthebuildingenvelopeastheinitial

approachtodecarbonization,precedingsystemelectrification.Dependingonexistingconditions,envelopeimprovementsmayincludeaddedexteriorinsulation,cladding,roofing,ornewwindows.Combinedwithhigh-performanceall-electricmechanicalsystemsandappliances,theseprojectssignificantlyreduce

buildingsiteenergyuseintensity(EUI)iiiandremoveallon-siteandin-unitcombustion.Thiscanprovideothernon-energybenefitssuchaslong-termresilience,passivesurvivability,andbetterindoorairquality.

iiThepreviouslyreferencedmarketguidancereportonretrofitsusestheterm“zero-carbonaligned”todescribethisconcept.

/market-guidance-report/

.

iiiEUIisacommonmetricofbuildingenergyperformance.Itrepresentstheannualenergyusageofthebuildingdividedbythefloorarea(commonlyexpressedinannualkBtupersquarefoot)(see

/buildings/benchmark/

understand-metrics/what-eui).

AMarketplaceforEquitableBuildingRetrofits/9

AcceleratingBuildingDecarbonizationRetrofits

Inspiredbyinnovativewhole-buildingretrofitprojectsinEurope,9RMIlaunchedamarketfacilitation

initiativetostreamlinedecarbonizationretrofitsinUSmultifamilybuildingstosupportanequitableenergytransitionawayfromfossilfuels(seeinsetbox).ivThisinitiativehadanobjectivetobuildmarketcapacityforbuildingdecarbonizationbydemonstratingthetechnicalaspectsofthestreamlinedretrofitprocess

whilesimultaneouslyaggregatingdemandfrommultifamilybuildingownerswithsimilartypologies.

RMIanditspartnersidentifiedcommonbuildingtypesandpotentialscalableprefabricatedenvelopeandmechanicalsystemsthatcouldbedemonstratedovermultipleproperties.RMIhypothesizedthatthis

demandaggregationcouldlowercostsandsignaltokeyindustrystakeholders—suchaslocalandstateagencies,manufacturers,andretrofitproviders—theneedforeasilydeployableretrofitsolutionsand

correspondingfinancialsupport.Keyperformanceindicatorsforthesuccessfulimplementationofthis

initiativeincludedreducingcarbonemissionsfromexistingbuildings,aggregatingsufficientdemandforaviableprojectpipeline,andachievingmaterialandlaborcostreductions.Theseeffortswoulddirectlybenefitaffordablemultifamilyhouseholdsandlocaleconomieswiththecreationofthedemandfortheseprojectsandexpansionoftheworkforce.

Initialassessmentsandongoingeffortsquicklyrevealedthatprefabricationandbulkprocurementalonedidnotfullyaddressthechallengeofrapidlyscalingbuildingretrofits.Energymodelingandpreliminarycostestimatingdidshowthatprefabricatedpanelizedsolutionssignificantlyreducedenergyloadsandtenantdisruptionatalowerinstalledcostthantraditionalsite-builtmethods.However,duringthis

discoverystage,severalimportantconsiderationsemergedthatwereequallycriticaltointegrateintothestrategyinordertoestablishaviablemarketfordecarbonization.

AnEquitableEnergyTransition

Equitabledecarbonizationnecessitatesthatrelevantresourcesandsolutionsbeaccessibleto

affordablehousingproperties.Thisensuresthatthebenefitsoftheseretrofitsandofthetransitiontocleanenergy,suchasimprovedindoorairquality,thermalcomfort,andenergyresilience,reachcommunitiesthathavehistoricallybeenmarginalizedbyhousingpoliciesanddevelopments.7

ThesecommunitiesoftenbearthebruntofadverseeffectsofGHGemissions,experiencinghighertemperatures,moreextremeweatherevents,greaterflooding,andpoorerindoorandoutdoorairquality.Additionally,affordablehousingresidentsfrequentlyliveinhousingwithunaddressed

healthandsafetyconcernsandinadequateheating,cooling,andventilationsystems.Tomaximizebenefits,solutionstoeasetheretrofitprocessshouldensureaccesstoavailablesupportand

financing,minimizeresidentdisruption,andpreventlong-termtenantdisplacementandundueenergyburdens.8

ivREALIZEisamarketfacilitationplatformthatseekstoestablishhigh-volumenet-zerocarbonretrofitdeliveryprograms

acrosstheUnitedStates.Focusedontworegionalareas,CaliforniaandMassachusetts,marketfacilitationactivitiesinclude

aggregatingretrofitdemandwhilecoordinatingthesupplychaintodeployhigh-qualityprefabricatedretrofitpackagesthatareeasytoinstallandarefinancedinpartthroughutilitycostsavings(see

/our-work/buildings/realize/

).

AMarketplaceforEquitableBuildingRetrofits/10

First,duetothediverseconditionsofUSresidentialpropertiesandthedifferingcircumstancesamong

AMFHowners,achievingconsistent,widespreadaggregateddemandacrossvariousproperties,budgets,

andscheduleshasbeendifficulttoaccomplish.Compoundingthechallengeofdemandaggregationwas

thepredicamentofcircularcausality,whichremainsanongoingissue.Manufacturersarehesitanttoreducepricingwithoutacontractualguaranteeofapredictedvolumeofproduct,andsimilarly,ownershavebeenreluctantorunabletocommitatanearlystage.Second,itwasclearthatmoreflexible,yetstillreplicable

andscalable,technicalsolutionstoaccommodatevaryingbuildingtypesandsiteconstraintswereneededtoenhanceretrofitadoption,especiallyinregionswithagingbuildingstock.Finally,theretrofitproject

deliveryprocess—fromprojectscopingtofinancingandconstruction—wasandstillisverycomplexandneededtobemadeeasierandmoreequitable.

Fromthesediscoveries,itbecameclearthatsuccessfulimplementationdependedonaddressingcommonchallengesnotonlywithviabletechnicalsolutions,butalsosupportingstreamlinedprogrammaticdesignandestablishingasystemforequitablefundsdistribution.Theseinitiallessonslaidthefoundation

forRMI’songoingefforts,describedinthefollowingsections,overthepastfewyearstocultivateamarketplacefortheequitabledecarbonizationofexistingbuildings.

RealizingthePotentialinMassachusetts

In2021,RMIpartneredwithLocalInitiativesSupportCorporation(LISC)tocreateadecarbonizationmarketcatalyzationprogramcalledthe1000ApartmentChallenge(1000AC).10The1000ACoriginatedwithobjectivestofacilitatearetrofitpipeline,supportownersthroughtheretrofittingprocess,andshowcaseinnovative

decarbonizationsolutionsforcommonbuildingtypologiesthatdrasticallyimprovebuildingperformance

anddemonstrateaviablelocalmarketforbuildingdecarbonization.Thisprovidedaplatformtoapplytheseinitiallessons,advanceequitablebuildingdecarbonization,andalignAMFHwiththeMassachusettsclimategoalsandpolicies.Massachusettsisanideallocationtocultivateamarketplaceforretrofitsthankstoits

favorablestatehousingandclimatepolicies,adiversebut