Boston Building Owners and Managers:
What’s BERDO and Why does it Matter?
Based on the latest public BERDO reporting data, over 50% of existing multifamily buildings will fail even the earliest (2025) limits unless their carbon emissions are reduced.
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A variety of compliance mechanisms to meet emissions requirements, tips for planning and funding, and solutions that meet the unique needs of multifamily properties.
Boston has emerged as a leader in the fight against climate change and has put laws with stringent regulations in place to force building owners and managers to reduce greenhouse gas emissions gradually to net zero by 2050.
What’s BERDO?
As part of Boston’s ambitious climate action plan, the City enacted the Building Emissions Reduction and Disclosure Ordinance (BERDO), which aims to reduce greenhouse gas emissions (GHG), improve energy efficiency, and promote sustainability across the city’s building stock, which is responsible for over 70% of the greenhouse gas emissions.
Why does it matter?
Starting in 2025, Boston multifamily owners will need to ensure buildings comply with strict emissions limits or be subject to large fines. Based on the latest public BERDO reporting data, over 50% of existing buildings will fail even the earliest (2025) limits unless their carbon emissions are reduced.
Multifamily building owners have been required to report energy usage and carbon emissions annually since 2013, and starting in 2025 buildings over 35,000 sq ft or with more than 35 units who haven’t achieved the identified emissions reduction targets will be subject to fines. Buildings with 15-34 units and 20,000-34,000 sq ft must be in compliance in 2030. All buildings covered by BERDO are required to achieve net-zero emissions by 2050.
Fines starting next year
Multifamily owners not in compliance for reporting can face daily fines of $150-$300 per day depending upon the size of the property, and failure to comply with the emission standards can result in daily fines of $300-$1000.
Building owners and operators may make alternative compliance payments for exceeding the emissions standards of $234 per metric ton of CO2 equivalent. Generally, this is the less expensive path than paying the fines, but still represents a challenging financial burden. For instance a 100,000 sq ft unit multifamily building with a BERDO score of 5.0 emits 500 metric tons CO2e/year. That’s 90 tCO2e above the BERDO threshold for 2025, resulting in an alternative compliance payment of $21,060.
Emissions Targets for Highest-Emitting Building Types (kgCO2e/SF/yr)
| 2025 | 2030 | 2035 | 2040 | 2045 | 2050 | |
|---|---|---|---|---|---|---|
| Office | 5.3 | 3.2 | 2.4 | 1.6 | 0.8 | 0 |
| Multifamily Housing | 4.1 | 2.4 | 1.8 | 1.1 | 0.6 | 0 |
| Healthcare | 15.4 | 10 | 7.4 | 4.9 | 2.4 | 0 |
| Education | 3.9 | 2.4 | 1.8 | 1.2 | 0.6 | 0 |
Tips for Building Owners
- Understand BERDO limits for 2025 and 2030 and the magnitude of any fines. You’ll need to act promptly to avoid near term fines even while developing a long term strategy for net zero by 2050
- Ensure reporting for your properties is accurate. Double check to ensure the utility data reported maps to the correct building
- Confirm BERDO rules as they apply to your property to understand whether emissions can be averaged across multiple buildings or properties
- Consider engaging with an advisory firm to understand long term options and strategies. Many energy efficiency companies now provide decarbonization consulting.
The Path to Compliance
Complying with BERDO not only helps avoid potential fines and penalties but also brings significant benefits for owners, managers and residents, including lower utility costs, easier property management, enhanced property values, and a healthier living environment.
Building owners can choose to enact a variety of actions to meet emissions requirements, including:
Direct emissions reductions. A building’s overall energy use and emissions can be reduced through building retrofits and/or improvements including high efficiency electric appliances and improved heating, cooling, water heating, cooking systems and energy efficient lighting systems, and by measures such as improving insulation and tightening window seals.
Local renewable generation and renewable energy purchases. Emissions can be reduced through local renewable energy generation or mitigated through purchasing eligible renewable energy in the market. Plans include local renewable generation, Boston Community Choice Electricity (CCEE), Renewable energy certificates, and Power Purchase Agreements (PPA) to purchase renewable energy.
Building owners need to be proactive to ensure properties will comply with BERDO limits. By taking action now, owners will avoid fines, enjoy better performing buildings and set buildings on the path to net-zero by 2050.
How can Embue help multifamily owners?
Embue will reduce energy usage and carbon emissions by 25% or more to help your building get in compliance with BERDO or limit fines. Learn how Embue can help your buildings comply with BERDO by downloading our BERDO Compliance Playbook or by scheduling a demo with the Embue team.
Learn how our smart building solution for multifamily can help make your building more efficient.