Colorado Bill to Encourage Cleaner Construction Enters First Committee Hearing
Denver, CO — Today, a bipartisan bill to incentivize carbon emissions reductions for construction materials enters its first committee hearing. SB25-182 targets reductions in the embodied carbon emissions released during the sourcing and manufacturing of project materials.
“Colorado consistently ranks as one of the top 10 states for population growth and new commercial real estate development, which is why we must take construction-related greenhouse gas emissions seriously,” said Senator Ball, District 31, and prime sponsor of the bill. “We already lead the nation with innovative policies to cut emissions from buildings, and this legislation builds on that success by making it easier for private developers to use low-carbon materials. By expanding financing tools and incentives, we can ensure that Colorado’s dynamic construction sector drives progress toward our climate goals while creating demand for the highest quality, climate-positive materials—many of which are being developed and pioneered right here in the state.”
Embodied carbon refers to the greenhouse gas emissions that occur when building materials are manufactured, transported, installed, maintained, and disposed of. It's a key factor in a building's carbon footprint and a significant driver of global warming contributing to 11 percent of global buildings’ greenhouse gas emissions. While state policies have made strides toward reducing public projects’ embodied carbon emissions, the embodied carbon emissions associated with private sector buildings remain significant and largely unregulated.
"As a representative of rural Colorado, I know how important it is to build a future where our towns can thrive,” said Senator Simpson, District 6 and prime cosponsor of the bill. “SB25-182 supports innovation in manufacturing which can help drive economic growth, ensuring our industries stay competitive. By leveraging existing financing tools, this bill supports job creation in Colorado’s industrial sector while aligning with smart, forward-looking economic policy."
To incentivize reductions, SB25-182 would allow Colorado’s Commercial Property Assessed Clean Energy (C-PACE) financing to support developers with the costs of using lower-emissions construction materials. The bill would also expand the Industrial Clean Energy Tax Credit to include the costs of construction materials with lower embodied carbon emissions, encouraging major private-sector projects to significantly reduce their embodied carbon impact.
"Colorado has a responsibility to lead the way in tackling climate change, and that means addressing emissions in every sector—including construction,” said Representative Brown, District 12, a prime sponsor of the bill. “SB25-182 is a practical, market-driven approach that accelerates the transition to sustainable building materials while mitigating any increase in building costs. By making it easier for developers to choose low-carbon options, we can reduce emissions, support businesses, and ensure that our housing and development goals align with our state’s ambitious climate commitments."
By helping developers overcome cost barriers, SB25-182 would help align private construction practices with the state’s building decarbonization goals and economy-wide goal to reduce greenhouse gas emissions by 100 percent by 2050. Its passage would position Colorado as a national leader in embodied carbon emissions reductions.
“This legislation offers an opportunity to empower the private sector to invest in materials manufacturing practices and materials that prioritize the health of our communities and stability of our climate,” said Alana Miller, senior policy advocate in Colorado at NRDC (Natural Resources Defense Council). “If we intend to meet our state’s decarbonization goals, we’re going to need an all-hands-on-deck approach and creativity. This bill is an important next step when it comes to reducing the impact of construction materials.”
As SB25-182 amends eligibility criteria associated with already funded programs, it will not impact the state’s General Fund nor require additional state appropriations.
“SB 182 will enable property owners with projects using low carbon materials access to low-cost financing,” said Kevin Morse, managing director at Imperial Ridge Real Estate Captial, a leading national C-PACE capital provider. “This will help increase the value of their property and provide funding for climate friendly upgrades that include not just clean energy—but materials that reduce the carbon footprint of their building. By allowing embodied carbon to be included in C-PACE, Colorado would become the first state in the United States to make low-cost financing available for low carbon materials.”
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).