New York State awarded more than $23 million to 15 projects targeting building decarbonization and industrial emissions reductions, including six located in disadvantaged communities.
The funding advances the state’s Climate Leadership and Community Protection Act goals while leveraging regional economic development and job creation.
Since 2018, related NYSERDA programs have mobilized nearly $1.3 billion in investment and enabled emissions cuts equivalent to removing more than 1 million cars from the road each year.
State officials have directed more than $23 million toward a new wave of building and industrial decarbonization projects, tying climate action directly to regional economic development priorities across New York. The funding, announced by the New York State Energy Research and Development Authority, supports 15 projects selected through the 2025 Regional Economic Development Council Initiative and focuses on cutting carbon emissions while modernizing commercial, residential, and public infrastructure.
The awards span two NYSERDA programs: the Building Cleaner Communities Competition and the Commercial and Industrial Carbon Challenge. Six of the funded projects are located in disadvantaged communities as defined by New York’s Climate Justice Working Group, reinforcing the state’s mandate that climate investment deliver tangible benefits to communities historically burdened by pollution and underinvestment.
Redesigning Buildings As Climate Infrastructure
More than $17 million was awarded to 13 projects under the Building Cleaner Communities Competition, which targets new construction and deep retrofits at regionally significant commercial and mixed use sites. The projects stretch from New York City to Western New York and combine electrification, energy efficiency, and on site clean energy generation.
At 3 MetroTech Center in Brooklyn, a 330,000 square foot commercial building will be converted into New York University’s campus gateway using air source heat pumps, energy recovery ventilation, battery storage, and stormwater management. In Kingston, a new all electric residential building at 21 Elizabeth Street will deliver 15 units for low and middle income households with EV charging and shared amenities. Buffalo’s 317 Vulcan Street project will retrofit a Family Support Center to serve as a replicable model for low carbon community facilities.
Other projects include the adaptive reuse of the 1876 Summit Knitting Mill in Philmont into an all electric performing arts venue, a net zero energy ArtRage Gallery renovation in Syracuse, and the transformation of a long abandoned site in Cornwall into a 52 room carbon neutral boutique hotel.
“These innovative projects will make a significant impact across New York State by redefining how our buildings and infrastructure are designed, operated, and powered,” said NYSERDA President and CEO Doreen M. Harris. “By upgrading existing structures with energy efficient technologies and advancing clean energy construction, New York is leading our communities toward a cleaner and healthier future.”
Beyond emissions reductions, state officials emphasize job creation and local economic impact. NYSERDA notes that Building Cleaner Communities projects support construction and operations roles with family sustaining wages, aligning workforce development with the clean energy transition.
RELATED ARTICLE: New York Pension Seek Stricter Climate Emissions Rules from Bank Portfolios
Cutting Industrial Emissions At Scale
An additional $5 million was awarded through the Commercial and Industrial Carbon Challenge, which targets large energy users such as hospitals, manufacturers, and municipal infrastructure operators.
In the Finger Lakes, Finger Lakes Health will implement seven emissions reduction projects across two hospitals, replacing aging systems and strengthening HVAC resilience. In the Capital Region, the Saratoga County Sewer District will modify wastewater treatment processes to produce renewable fuels from biosolids while reducing long term operating costs and environmental impact.
Empire State Development President, CEO and Commissioner Hope Knight framed the awards as part of a broader investment strategy. “Under Governor Hochul’s leadership, New York’s regional approach to economic development continues to create jobs and leverage private investments,” she said. “With more than hundreds of projects supported across the state through multiple programs and state agencies, we are promoting opportunities that will generate sustainable economic growth.”
Policy Alignment And Investor Takeaways
The announcement reinforces how New York is using public capital to de risk decarbonization across sectors that are often difficult to electrify at scale. Since 2018, the Building Cleaner Communities Competition has supported 70 projects and leveraged nearly $1.3 billion in public and private investment. Over the same period, the Commercial and Industrial Carbon Challenge has enabled cumulative emissions reductions of 7.2 million metric tons of carbon dioxide.
New York Secretary of State Walter T. Mosley highlighted the governance implications. “Sustainable building practices are key elements in the state’s economic, energy and environmental future,” he said, pointing to the integration of climate goals with downtown revitalization and regional planning.
For executives and investors, the awards offer a clear signal of where state backed capital is flowing: toward electrification, deep retrofits, and infrastructure projects that align climate performance with economic resilience. As states increasingly compete to attract clean energy investment, New York’s approach illustrates how climate policy, regional development, and social equity objectives can be advanced through coordinated funding mechanisms with measurable outcomes.
Follow ESG News on LinkedIn
