For years, the conversation around embodied carbon has emphasized the urgency of cutting emissions to address climate change. But often, solutions to reduce embodied carbon are assumed to come with a cost premium. As reducing embodied carbon in buildings continues to grow as a top priority for building developers and policymakers, project teams are navigating how to reduce emissions without increasing project costs.

RMI has developed new resources that address the economics of low embodied carbon buildings in North America, pairing the latest state-of-play insights with real-world case studies from Skanska, one of the world’s largest construction and project development companies. Together, these case studies and market insights tell a compelling story: reducing embodied carbon is not just environmentally necessary, but it can be economically feasible, and even advantageous, compared to business-as-usual construction. 

For years, building decarbonization efforts have focused primarily on energy efficiency. But that misses a major source of emissions: embodied carbon[1], or the emissions associated with building materials throughout a building’s lifecycle. As shown in our 2021 report, buildings account for at least 39% of energy-related global carbon emissions annually, about one-quarter of which result from embodied carbon.

Because most embodied carbon emissions occur before a building is occupied, they are key to fully decarbonizing the built environment. Promisingly, there has been a significant improvement in embodied carbon literacy, data availability, and action in North America over the past decade.

Improvements in Embodied Carbon Data

Confidence in embodied carbon measurements is improving steadily through higher-quality data, greater industry participation, and more robust measurement tools. Notable outcomes toward this effort include:

More building product environmental product declarations (EPDs)

EPDs are essential specification documents that report a product's embodied carbon footprint. Since 2019, the number of verified EPDs in a leading EPD database, The Embodied Carbon in Construction Calculator (EC3) Tool, has increased by nearly 150,000.[2] Notably, various state-level grant programs are funding EPD development, including Minnesota for asphalt producers, Massachusetts for concrete producers, and New York for concrete producers.[3] In parallel, several initiatives are actively focused on ensuring the quality and reliability of EPD data for improved industry uptake, including ERG’s EPD quality labeling initiative and ACLCA’s PCR Open Standard.[4]

More building-level Life Cycle Assessments (LCAs)

Over 1,000 project LCAs have been submitted to the SE 2050 database by various signatory structural engineering firms since the initiative’s[5] launch in 2020. Similarly, 292 projects submitted were analyzed as part of the Carbon Leadership Forum (CLF)’s Benchmark Study V2, an open-access embodied carbon data tool that builds on the first version of its Benchmark Study from 2017. Detailed embodied carbon reduction strategies and LCA data can be found in CLF’s case study collection of built projects, which covers a wide range of building types, [6] office buildings to single-family homes.[7]

Increasing robustness of material-level baselines

In 2019, CLF analyzed available EPDs to estimate industry-average GHG emissions for construction materials manufactured in North America. Since then, they have repeated the study every two years, expanding the datasets to include the growing number of EPDs. The published material baselines are continually built on more comprehensive datasets and represent robust and reliable values for the industry and policymakers.[8]

Emerging tools for improved standardization

The practice of measuring and reporting embodied carbon has become more structured and credible over time. Several guidance documents have been published to orient practitioners toward embodied carbon measurement and reporting best practices, including ASHRAE/ICC’s 240P Standard for all buildings, RESNET’s 1550 Standard for residential buildings, and ASCE’s Prestandard for structural systems.[9] These emerging standards provide the industry with a verifiable means of measuring and reporting embodied carbon consistently with comparable results.[10]

Through the ECHO Project, subject matter experts collaborate with industry partners to harmonize embodied carbon data collection and reporting.[11] Since publishing a reporting schema and framework, several organizations, including the US Green Building Council, are working to align their reporting with it.[12]

First-ever national climate-aligned embodied carbon targets

To date, the industry has taken a scattered approach to reducing embodied carbon. Now, CLF’s new report released in 2025 in collaboration with RMI and the University of Washington (UW) Life Cycle Lab, Embodied Carbon Pathways to 2050 for the United States, provides first-of-their-kind climate-aligned embodied targets and recommends pathways to align the US construction sector with a 1.5°C global warming limit.[13] The study identifies the most impactful strategies (e.g., addressing concrete, structural design optimization) and key policies (e.g., building-level standards, carbon pricing, incentives). It concludes that the industry is not on track and that more ambitious action is urgently needed across all sectors, using a wide range of strategies.

Policies Driving Embodied Carbon Reductions

Embodied carbon is a core decarbonization strategy for a growing number of jurisdictions across various levels of governance.

National	In 2023, the General Services Administration (GSA) piloted the green public procurement of low-carbon construction materials through “Buy Clean” initiatives.[14] Through this effort, initial embodied carbon benchmarks were established for the highest-emitting building materials, such as concrete, steel, asphalt, and flat glass. Although the program was rescinded in January 2025, these benchmarks have continued to be referenced in the development of several state-level Buy Clean policies and building code requirements. Also in 2023, the Federal-State Buy Clean Partnership was launched, through which states committed to prioritize low embodied carbon materials in publicly funded projects.[15]
State	While the Federal Government withdrew from the Federal-State Buy Clean Partnership in January 2025, the initiative (now the State Buy Clean Partnership) remains active. It includes 13 states that collectively procure almost 50% of cement and 20% of steel used in the US.[16] Several participating states have enacted mandatory “Buy Clean” requirements that set maximum GWP limits for select building materials for state projects in: California Colorado Maryland Minnesota Massachusetts New Jersey New York Oregon Washington.[17] To drive deeper reductions, California implemented embodied carbon reduction requirements in the mandatory state building code, CALGreen.[18] Other state-led initiatives include New York’s Executive Order 22, which requires embodied carbon reporting; California Assembly Bill 2446, which requires the development of a framework for measuring and reducing embodied carbon; and Colorado SB22-051, which introduces sales and use tax exemptions for eligible low embodied carbon materials.[19]
City	Cities are committing to embodied carbon reduction goals through climate action plans and executing policies and programs that support low embodied carbon buildings. New zoning requirements in Boston, Newton, and Cambridge, MA require large projects (excluding residential in Cambridge) to report on embodied carbon.[20] Seattle’s Priority Green Expedited Program offers expedited permitting for projects that meet embodied carbon standards.[21] Cities have adopted low-carbon concrete ordinances (Brookline, MA, Santa Monica, CA) and innovative concrete pilots (Portland, OR).[22] US cities are proven leaders in material circularity and reuse, pioneering deconstruction ordinances and incentive programs (Portland, OR, Palo Alto, CA, Milwaukee, WI), material reuse warehouses in Houston, and waste diversion mandates (Chicago, IL, Aspen, CO).[23]

Market Initiatives Driving Embodied Carbon Reductions

The market is also responding positively to embodied carbon reduction efforts, as reflected in the various certifications, incentive programs, and financing mechanisms that include requirements for embodied carbon.

Building Certifications	The latest version of the LEED building certification (LEED v5) doubles down on addressing embodied carbon, making embodied carbon quantification mandatory.[24] LEED also added optional credits for more ambitious measures to reduce embodied carbon, including adaptive reuse. The Science Based Targets Initiative (SBTi) also has mandatory embodied carbon provisions, which require the building sector to set upfront embodied carbon targets.[25]
Voluntary Initiatives	Voluntary initiatives like Massachusetts’s Embodied Carbon Reduction Challenge help advance embodied carbon literacy by training design teams to measure embodied carbon and advising clients on strategies for embodied carbon reductions.[26] Commitment programs like SE 2050 for structural engineers, MEP 2040 for mechanical engineers, and INFRA 2050 for infrastructure have been pivotal in convening subject matter experts to tackle embodied carbon reductions within their respective spheres of influence in construction projects.[27] Through participation in these programs, design practitioners upskill on embodied carbon reduction strategies, such as performing carbon comparisons between different structural system designs.
Financial Instruments	Increasingly, embodied carbon is being incorporated into building decarbonization financing programs and products. In 2025, Colorado passed SB 182, which adds embodied carbon as a financeable measure to that state’s Commercial Property Assessed Clean Energy (C-PACE) financing program. Also in 2025, PACE Equity, a C-PACE lender, added embodied carbon to its CIRRUS Low Carbon and CIRRUS Zero Carbon commercial real estate financing products.[28] These inclusions treat qualifying low-embodied carbon materials and design measures as eligible project costs that can be repaid through a long-term property tax assessment that spreads any upfront premium over 20–30 years.

While embodied carbon is often assumed to increase project budgets, evidence increasingly shows that significant reductions are achievable at little to no additional cost. In a 2021 report, RMI and Skanska found that upfront embodied carbon reductions of 19–46% can be achieved with a cost premium of less than 1% using proven solutions. The remaining challenge is translating this potential into day-to-day design, procurement, and budgeting decisions.

RMI and Skanska developed three new case studies to showcase intuitive, readily available methods that can help project teams prioritize economical reductions in embodied carbon emissions.

Over the past decade, the embodied carbon landscape in North America has matured significantly. What was once a niche decarbonization topic is now supported by robust data, improved tools, clearer benchmarks, and growing policy and market signals.

At the same time, construction costs and climate pressures are rising. Project teams must navigate financial viability with climate impact, and the most effective approach is to treat cost and carbon as complementary priorities.

These case studies illustrate how low-cost, low-carbon construction is achievable. From material procurement to adaptive reuse, there are many prime opportunities to deliver substantial emissions reductions at little to no additional cost. By exploring alternatives and evaluating both cost and carbon, teams can deliver projects that meet today’s demands while setting a higher standard for the built environment.

[1] Rempher, Audrey, and Rebecca Esau. “Embodied Carbon 101: Building Materials.” RMI, March 27, 2023. https://rmi.org/embodied-carbon-101/.

[2] Buildingtransparency.org. “Data Evolution | Building Transparency Documentation,” October 9, 2025. https://docs.buildingtransparency.org/ec3/faq/data-evolution.

[3] Asphaltisbest.com. “Minnesota Environmental Product Declaration Grant Program - Minnesota Asphalt Pavement Association,” 2023. https://www.asphaltisbest.com/page/MNEPD; and Massachusetts Concrete and Aggregate Producers Association (MaCAPA). “Environmental Program Declarations (EPD) Grant Program,” June 28, 2023. https://www.macapa.org/epd-grant-program/; and NYSenate.gov. “NY State Assembly Bill 2025-A6566A,” 2025. https://www.nysenate.gov/legislation/bills/2025/A6566/amendment/A.

[4] ERG (Eastern Research Group Inc.). “ERG to Launch Environmental Product Declaration Ecosystem Quality Labeling Initiative in the U.S. Construction Sector,” July 7, 2025. https://www.erg.com/news/erg-launch-environmental-product-declaration-ecosystem-quality-labeling-initiative-us; and Aclca.org. “Initiatives,” 2025. https://www.aclca.org/initiatives#PCR-Open-Standard.

[5] Fang, Demi L., Mel Chafart, Martín Torres, and Jonathan M. Broyles. “SE 2050 Commitment Program,” March 6, 2025. doi: https://doi.org/10.1061/9780784485927.

[7] Zeenah Ziino. “2025 Embodied Carbon Reductions Built Project Case Study Collection.” Carbon Leadership Forum, April 8, 2025. https://carbonleadershipforum.org/2025-embodied-carbon-reductions-built-project-case-study-collection/.

[8] Waldman, B., R. Habchi, and J. Palmeri. “2025 CLF North American Material Baselines Report.” Carbon Leadership Forum, 2025. https://carbonleadershipforum.org/2025-clf-north-american-material-baselines/; and Benke, B., A. Jensen, M. Chafart, K. Simonen, and M. Lewis. “The Embodied Carbon Benchmark Report: Embodied Carbon Budgets and Analysis of 292 Buildings in the US and Canada.” Carbon Leadership Forum, 2025. https://carbonleadershipforum.org/the-embodied-carbon-benchmark-report/

[9] Carbon Leadership Forum. “Life Cycle Assessment of Buildings (LCA): A Practice Guide,” August 6, 2020. https://carbonleadershipforum.org/lca-practice-guide/; and City of Vancouver. “Guidelines Embodied Carbon Guidelines,” 2022. https://vancouver.ca/files/cov/embodied-carbon-guidelines.pdf; and National Research Council Canada. “National Whole-Building Life Cycle Assessment Practitioner’s Guide” Accessed August 22, 2025. https://nrc-publications.canada.ca/eng/view/ft/?id=533906ca-65eb-4118-865d-855030d91ef2.

[10] ICC. “International Code Council and ASHRAE Announce Second Public Review Period for Proposed Emissions Quantification Standard - ICC,” 2025. https://www.iccsafe.org/building-safety-journal/bsj-hits/international-code-council-and-ashrae-announce-second-public-review-period-for-proposed-emissions-quantification-standard/; and RESNET. “Draft PDS-01 RESNET 1550, Embodied Carbon (Comment Opens November 22, 2024) - RESNET,” February 6, 2025. https://www.resnet.us/about/standards/minhers/draft-pds-01-resnet-1550-embodied-carbon/; and Arehart, Jay. Prestandard for Assessing the Embodied Carbon of Structural Systems for Buildings, 2025. https://doi.org/10.1061/9780784486399.

[11] Project, ECHO. “Embodied Carbon Harmonization and Optimization (ECHO) Project.” Embodied Carbon Harmonization and Optimization (ECHO) Project, 2019. https://www.echo-project.info/.

[12] Project, ECHO). “Embodied Carbon Harmonization and Optimization (ECHO) Project.” Embodied Carbon Harmonization and Optimization (ECHO) Project, 2019. https://www.echo-project.info/publications.

[13] Ashtiani, M., Jungclaus, M., Habchi, R., Jensen, A., Rempher, A., Esau, R., and Lewis, M. “Embodied Carbon Pathways to 2050 for the United States.” Carbon Leadership Forum, 2025. https://carbonleadershipforum.org/embodied-carbon-pathways-to-2050-for-the-united-states/.

[14] U.S. General Services Administration. “GSA Pilots Buy Clean Inflation Reduction Act Requirements for Low Embodied Carbon Construction Materials,” May 16, 2023. https://www.gsa.gov/about-us/newsroom/news-releases/gsa-pilots-buy-clean-inflation-requirements-for-low-embodied-carbon-construction-materials-05162023.

[15] U.S. Climate Alliance. “Federal-State Buy Clean Partnership | Initiatives | U.S. Climate Alliance,” May 22, 2025. https://usclimatealliance.org/member-support/federal-state-buy-clean-partnership/.

[16] U.S. Climate Alliance. “Federal-State Buy Clean Partnership | Initiatives | U.S. Climate Alliance,” May 22, 2025. https://usclimatealliance.org/member-support/federal-state-buy-clean-partnership/

[17] Gallucci, Maria. “States Are Moving Forward with Buy Clean Policies despite Trump Reversal.” Canary Media. canarymedia, February 20, 2025. https://www.canarymedia.com/articles/clean-industry/states-are-moving-forward-with-buy-clean-policies-despite-trump-reversal.

[18] AIA California. “CALGreen Mandatory Measures for Embodied Carbon Reduction - AIA California.” AIA California, September 5, 2023. https://aiacalifornia.org/news/calgreen-mandatory-measures-for-embodied-carbon-reduction/.

[19] Office of General Services. “Executive Order 22: Embodied Carbon Guidance,” 2025. https://ogs.ny.gov/executive-order-22-embodied-carbon-guidance; and Ca.gov. “2022 - Assembly Bill 2446 (Holden, Chris), Embodied Carbon Emissions: Construction Materials (Chaptered) | California Air Resources Board,” 2022. https://ww2.arb.ca.gov/2022-assembly-bill-2446-holden-chris-embodied-carbon-emissions-construction-materials-chaptered; and Buy. “COLORADO EMBODIED CARBON COLLABORATIVE.” COLORADO EMBODIED CARBON COLLABORATIVE, 2019. https://www.cecchub.org/bccotaxincentives.

[20] City of Boston Planning Department. “Article 37 Green Building Guidelines | Bostonplans.org.” Boston Planning Department, 2024, https://www.bostonplans.org/planning-zoning/planning-initiatives/article-37-green-building-guidelines; and Cambridge, City of. “Article 22 Green Building Requirements - CDD - City of Cambridge, Massachusetts.” Cambridgema.gov, 2024. https://www.cambridgema.gov/CDD/zoninganddevelopment/sustainabledevelopment/article22greenbldgrequirements.

[21] SDCI Community Engagement. “New Director’s Rule Published for the Green Building Standard - Building Connections.” Building Connections. April 2025. https://buildingconnections.seattle.gov/2025/04/01/new-directors-rule-published-for-the-green-building-standard/.

[22] City of Santa Monica. “Low-Carbon Concrete Requirements.” April, 2024. https://www.santamonica.gov/low-carbon-concrete-requirements; City of Brookline MA. “Resolution.” 2021. https://www.brooklinema.gov/DocumentCenter/View/25678/WA-18-IK2?bidId=; and Portland.gov. “Current Sustainable Procurement Initiatives.” https://www.brooklinema.gov/DocumentCenter/View/25678/WA-18-IK2?bidId=.

[23] City of Palo Alto. “Deconstruction Ordinance.” 2026. https://www.paloalto.gov/Departments/Public-Works/Zero-Waste/Zero-Waste-Requirements-Guidelines/Deconstruction-Ordinance#section-3; Portland.gov. “Commercial Deconstruction Pilot Grants.” 2026. https://www.portland.gov/bps/garbage-recycling/decon/commercial-deconstruction-pilot; Department of Neighborhood Services. “Deconstruction Ordinance.” City of Milwaukee. 2026. https://city.milwaukee.gov/DNS/Inspections_Sections/Decon; Solid Waste Management Department. “Reuse Warehouse.” Houstontx.gov. 2026. https://www.houstontx.gov/solidwaste/reuse.html; Cook County Government. “Demolition Permitting.” 2026. https://www.cookcountyil.gov/service/demolition-permitting; and City of Aspen. “Construction & Demolition Debris Program.” 2026. https://aspen.gov/1765/Construction-Demolition-Debris-Program

[24] Associates, Steven Winter. “LEED v5 & Embodied Carbon: About the New Requirements | SWA.” Steven Winter Associates, Inc., May 8, 2025. https://www.swinter.com/leed-v5-embodied-carbon-requirements/.

[25] “SBTi BUILDINGS CRITERIA FAQs,” 2025. https://files.sciencebasedtargets.org/production/files/FAQs-SBTi-Buildings-Criteria.pdf.

[26] Masscec.com. “Embodied Carbon Reduction Challenge | MassCEC,” 2023. https://www.masscec.com/program/embodied-carbon-reduction-challenge.

[27] Se2050.org. “SE2050,” 2024. https://se2050.org/; and MEP 2040 “MEP 2040.” MEP 2040, 2021. https://www.mep2040.org/; and Infra 2050. “Infra 2050,” 2024. https://www.infra-2050.com/.

[28] PACEEquity.com. “CIRRUS C-PACE Financing,” 2025. https://www.pace-equity.com/oldlowcarbon/.