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ESG9 min readJanuary 25, 2023

Local Law 97: NYC Carbon Emissions Requirements

Understanding NYC's landmark building emissions law and its impact on real estate investment.

Local Law 97 requires most NYC buildings over 25,000 SF to meet carbon emissions limits starting in 2024, with increasing stringency through 2050. Non-compliance triggers significant penalties.

Key Requirements

  • 2024 limits: Based on building use type
  • 2030 limits: Significantly more stringent
  • Penalties: $268 per metric ton of CO2 over limit
  • Reporting requirements and compliance pathways

Investment Implications

Due diligence now requires analysis of emissions compliance costs. Buildings requiring significant capital investment to comply may see valuation impacts.

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