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LL97 compels buildings over 25,000 square feet to drastically reduce carbon emissions, with penalties for noncompliance starting in 2024, and stricter targets by 2030. For many building owners, this has triggered a scramble to assess, retrofit, and prepare.
But New York is not alone with these new regulations. At the federal level, two significant measures underscore the national shift toward sustainable construction. The federal government currently owns over 360 million square feet of space in the US. The DOE Final Rule on Federal Buildings, announced in 2024, mandates fuel usage in new federal construction and major renovations by 2030. Meanwhile, the DOE’ s Blueprint for Building Decarbonization outlines a path toward zero-carbon buildings, advocating for energy-efficient design, electrification, and emissions benchmarking across public and private sectors. These federal measures are poised to play a defining role in setting new expectations for sustainability and the regenerative process, influencing how materials are sourced, projects are planned, and buildings are delivered across the industry.
These aren’ t fringe ideas. They are increasingly the framework by which buildings will be evaluated, permitted, and financed. Current political policies may temporarily deter certain programs, but the need and demand are real and will overcome special interests.
At CNY, where our purpose centers around how business can be a force for good, our strategy is about more than reacting to policy. Sustainability and regenerative practices are embedded in our business because it’ s right for all stakeholders, and it positions us to enhance our clients’ success.
What this means for builders
This regulatory evolution and impact on investment strategies and financing signals a deeper industry transformation. Sustainability is no longer the sole domain of architects or owners; it’ s now a planning mandate. Builders, developers, and manufacturers are being asked to deliver projects that meet environmental standards and performance metrics, incorporate sustainable materials, and operate within decarbonization timelines.
We need to consider regenerative processes and design that take into account carbon reduction, compliance management, and innovation. Builders that can integrate emissions modeling, optimize energy performance and conservation measures, and deliver resilient buildings will find themselves at a competitive advantage not only with regulators, but with owners, investors, and all stakeholders. Sustainability is not a constraint, but a strategy to build smarter and more responsibly.
A new model for construction firms
CNY is demonstrating what that approach can look like in practice. Complex urban developments and adaptive reuse projects, particularly in densely populated Manhattan, bring a confluence of environmental and logistical challenges.
Recognizing the need for deeper accountability, CNY pursued B Corp certification, a rigorous designation awarded to for-profit companies that meet high standards of verified social and environmental performance, legal commitment, and transparency of business practices. To achieve and maintain this status, an inhouse sustainability team is tasked with standardizing regenerative practices across projects and continuously refining sustainability and ESG commitments.
CNY approaches regulations like LL97 as opportunities to improve how we build rather than checklists. Through internal standards, coordination, and a focus on long-term impact to all stakeholders, the firm is working to integrate environmental considerations
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