The Rise of Eco-Friendly Structures: Embracing Sustainability in the Age of DOGE

The Department of Government Efficiency (DOGE) is on a mission to eliminate waste, reduce bureaucracy, and empower American families, workers, taxpayers, and the government system as a whole. Led by Elon Musk, the agency is driving three major reforms: regulatory rescissions, administrative reductions, and cost savings. While its primary objective is to root out inefficiencies across federal agencies, many of its actions have taken on a political dimension. Among its most controversial targets have been subsidies for environmental sustainability.

Under DOGE’s oversight, energy efficiency standards and renewable energy initiatives have faced significant rollbacks. One of its most notable moves has been the cancellation of $67.4 million in unspent funds from the Inflation Reduction Act (IRA) that were originally designated for environmental programs. This decision is expected to have a considerable impact on sustainability efforts, particularly those related to building energy efficiency. As Congress prepares to finalize the federal budget this month, further reductions or outright eliminations of programs that incentivize sustainable construction and upgrades are widely anticipated.

Despite this federal pullback, the real estate industry remains committed to sustainable practices. Many organizations continue to prioritize energy efficiency and carbon reduction, not just as an environmental initiative but as a sound business strategy. Tyler Haak, Vice President of Sustainability and Services for the Digital Buildings division at Schneider Electric, explains that large corporate tenants are integrating sustainability into their long-term business strategies, regardless of government policies.

Beyond environmental concerns, the financial benefits of sustainable building technology continue to drive investment. Many real estate owners and operators view energy efficiency improvements as a hedge against rising and volatile energy costs. They are happy to invest in solutions that provide more resilience against fluctuations in energy prices.

These investments take a variety of forms. Integrating existing systems and deploying smart building software can significantly improve energy efficiency in commercial buildings. Advances in artificial intelligence have further enhanced these platforms, allowing property management teams to identify energy-saving opportunities and optimize operations through automation.

For more extensive upgrades, the lack of government incentives may slow adoption, but rapid technological advancements could help bridge the gap. The cost of installing renewable energy sources like solar panels continues to decline, making them a more attractive option for building owners and managers. Microgrid technology is also becoming more accessible, allowing more properties to explore on-site power generation and storage.

One of the biggest challenges historically associated with microgrids has been battery storage. However, technological advancements are gradually overcoming these hurdles. Improvements in battery efficiency, safety, and longevity are making energy storage systems more viable for commercial buildings, offering backup power solutions and peak-load management strategies that can further reduce costs.

The role of energy storage in buildings is likely to expand even further as electric vehicles (EVs) become more widespread. Some industrial facilities are already experimenting with using fleet vehicles as energy storage devices, drawing power from them during peak demand hours and recharging them when energy costs are lower. Many automakers are actively developing bi-directional charging capabilities that will allow EVs to supply electricity back to buildings or the grid, creating new opportunities for energy resilience.

Although the rollback of IRA incentives and other federal sustainability programs presents a challenge, the momentum behind sustainable building practices remains strong. The market demand for energy efficiency, combined with support from investors, corporations, and consumers, is likely to keep pushing the industry toward greener solutions.

Ultimately, while DOGE’s actions may reshape the landscape of government sustainability initiatives, they also highlight the growing importance of private-sector leadership in environmental progress. In some ways, the agency’s budget cuts and regulatory rollbacks may accelerate innovation in the real estate sector, forcing companies to find new ways to achieve energy efficiency without relying on government incentives. Those with the foresight to invest in sustainable building technologies now may find themselves ahead of the curve, benefiting from long-term cost savings and improved property values.

While the federal government takes a step back from subsidizing sustainability, the business case for energy efficiency remains as compelling as ever. Buildings account for a significant share of energy consumption in the U.S., and as energy prices fluctuate, owners and operators will continue seeking ways to cut costs. Whether through smart building software, microgrids, battery storage, or innovative uses of EV technology, the shift toward a more resilient and efficient built environment is unlikely to slow down anytime soon.

DOGE may have changed the federal approach to sustainability, but it has also underscored a broader reality: the transition to greener, more efficient buildings is no longer just a policy-driven initiative—it’s a fundamental economic shift. As building owners and managers adapt to this new landscape, those that prioritize energy efficiency and sustainability will likely find themselves better positioned for the future, regardless of the political climate.