Sustainability

A new report by the U.S. Green Building Council (USGBC), titled Building Transition: Financing Market Transformation, reveals a critical gap in the decarbonization of the built environment. While top-tier green-certified buildings have showcased sustainability potential, the report focuses on the "other 75 percent" — buildings that remain underserved due to financial and operational constraints. This segment represents the majority of the global building stock, highlighting the need for scalable, incremental solutions to achieve meaningful results.

The report identifies transition financing as essential for bridging the gap, urging a shift from prioritizing certifications to enabling practical, step-by-step improvements. According to Donatas Karciauskas, CEO of Exergio, a company that develops AI-based energy performance tools for commercial buildings, this is where data and AI-based technology can make a difference.

“The “other 75 percent” is the most pressing issue in our path to net-zero,” says Karciauskas. “Many buildings lack the resources for deep retrofits or top-tier certifications. Existing AI tools can democratize energy efficiency, bringing high-level optimization to buildings that would otherwise be left behind. Of course, they work for new buildings too.”

While certifications and frameworks guide top performers, the report underscores the importance of addressing the larger majority. By focusing on incremental improvements—such as real-time energy optimization and targeted upgrades — buildings can achieve reductions in emissions without the need for extensive overhauls.

One of such platforms, Exergio’s developed AI-based energy efficiency solution, have shown how integrating energy performance tools into current systems can lead to immediate savings.

“Incremental progress is the only scalable way to tackle this challenge,”  adds Karciauskas. “In some of our cases, the results are not just related to reduced energy waste. Such tools provide up to 10x faster payback period and require less investments. In one project involving large commercial office spaces, our AI-led adjustments to HVAC and lighting systems reduced energy waste by 20 percent in just nine months. These results are achievable for most commercial buildings, from shopping centers to hotels.”

Another challenge identified in the report is the misalignment between existing taxonomies and green certification systems. For example, the EU Taxonomy, ASEAN Taxonomy, and more than 15 national frameworks worldwide have varying sustainability criteria.

According to the report, this fragmentation creates confusion not only for building owners, but also for investors, and limits access to financing for many building owners.

“The lack of harmonized standards makes it harder for building owners to secure funding and prove compliance,” notes Karciauskas. “Not all existing taxonomies consider less than 30 percent of energy savings “enough”, and many only have one, static definition for green assets. We should value the transition towards becoming a green asset too.”

For old buildings, decarbonization is a gradual process. It starts with energy efficiency, followed by electrification, a switch to renewable energy, grid interactivity, and other steps. Each of these steps can be measured from an energy waste perspective and reduce emissions.

However, according to the report, some taxonomies disregard established building certifications (such as BREEAM, LEED, and others.) One of the proposed recommendations is increased collaboration with industry experts, as well as the need to leverage existing tools to simplify compliance and reduce costs.

USGBC’s findings emphasized that closing the gap for the other 75 percent is essential to achieving net-zero targets.

“This report sends a clear message,” concludes Karciauskas. “If we’re serious about decarbonizing the built environment, we need solutions that work for every commercial building, not just the top-tier assets. AI tools are a critical enabler of this transformation, and a feasible way to turn our ambitions into measurable results for the buildings that need it most.”