The report provides policy-oriented recommendations and guidelines tailored to different stages of the process for adopting efficient grid-interactive solutions in buildings. These recommendations can support ASEAN policy makers in their policy development to create an energy-efficient and grid-interactive built environment, contributing to a cleaner and more sustainable energy future.
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Over just a handful of years, electrification has emerged as a cornerstone of effective building decarbonization policy. Momentum has been driven by increasingly favorable economics (especially for new construction), improved carbon savings from grid and technological advancements, and the growing climate emergency. With billion-dollar federal investments and commitments from over 100 cities and states, the movement is gaining traction.
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To overcome financial barriers and gaps, the report recommends the adoption of tariffed on-bill (TOB) pilot programs. These programs offer financing and project delivery for both multifamily owners and tenants, enabling whole-building deep efficiency and electrification retrofits. By simplifying the process, reducing administrative burdens, and addressing split incentives between tenants and owners, California can achieve energy savings, reduce emissions, and lower utility bills.
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To meet ambitious emissions-reduction goals, a small but growing number of states are promoting electrification of space and water heating as an important building decarbonization tool. However, one barrier states face is the need to ensure that fuel-switching and electrification efforts are beneficial; i.e., they must reduce emissions and energy costs while harmonizing with existing energy efficiency policies aimed at reducing demand.
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New York State is poised to become a national leader in climate action in the buildings sector, with an ambitious vision in the state’s draft climate plan for phasing out fossil fuel use in buildings through a mix of efficiency and electrification upgrades. As the state moves to finalize this plan, alternate proposals are emerging focused on “low carbon fuels” — namely hydrogen, biomethane, and synthetic methane — as options for building heating.
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The Healthy Homes and Clean Buildings Act seeks to cut building emissions in line with the state’s climate goals by winding down the gas system and transitioning to clean, electric alternatives. It is also the most comprehensive legislation to date in the United States aimed at getting fossil fuels out of buildings and has significantly raised the level of ambition on what might be possible for other states.
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