On March 1, USGBC partner the Business Council for Sustainable Energy (BCSE) published its 2023 Sustainable Energy in America Factbook. The annual report provides key year-over-year data and insights on energy transformation in the U.S. and the progress of the energy efficiency, natural gas and renewable energy sectors.

The report shows the progress that the U.S. has made in its efforts to decarbonize, but it also highlights the long road ahead for achieving its goals. While there is some good news about the increased use of renewable energy sources and investments from the federal government, the increase in carbon emissions is a setback for climate goals.

Renewables helped meet higher energy demand.

According to the report, total demand for energy rose across all major segments of the U.S. economy, returning to pre-pandemic levels. In 2022, total energy consumption rose 2.95% year-on-year as the U.S. economy continued to rebound from the worst effects of the COVID-19 pandemic. This included an increase in energy used for power, transportation and industry, as well as energy consumed in homes and businesses.

Renewable energy sources also played a significant role in meeting the country’s energy demands. Renewables comprised 13% of total U.S. energy demand and 23% of electricity demand, a new record. Furthermore, electricity demand met by natural gas and renewable energy increased to 62% in 2022, up from 43%.

Emissions are up, but remain below pre-pandemic levels.

Last year was the third most costly climate disaster year on record, underscoring the need to reduce carbon emissions across the board. While CO2 emissions rose 1% in 2022, they still remained 3% below pre-pandemic levels. This suggests that some emissions reductions made in 2020 have persisted, particularly for transportation, the top-emitting sector, and for the power sector. For the building sector, emissions matched 2019 levels, signaling a need to accelerate our decarbonization efforts.

While the downtick in emissions in 2020 offered a sliver of hope that the U.S. could honor its original Paris pledge, the sharp rebound in 2021, followed by 2022’s incremental year-on-year increase, has delayed the nation in hitting its goals.

The Inflation Reduction Act will have a significant impact in years to come.

The report also highlights how historic federal legislation is expected to boost the energy transition. With the passage of the Inflation Reduction Act (IRA) last year, the federal government enacted the most consequential sustainable energy law in U.S. history. The IRA offers at least $369 billion in support for clean energy deployment, climate action and supporting the sector across the board. The law primarily uses tax credits to achieve its goals, estimated at least $271 billion over 10 years. It extends or expands credits for virtually every energy transition sector.

Additionally, Congress also voted to pass the annual spending bills that fund the federal government with significant victories for green schools, federal buildings, affordable housing standards and other USGBC priorities. The bill specifically encourages green building certification programs like LEED, to ensure continued focus on excellence in performance operations.

Both the IRA and the annual federal spending bill put the U.S. far closer to the Biden administration’s goal of halving economywide CO2 emissions by 2030, but achieving these goals will also require the building sector to reduce its carbon emissions. To support this effort, USGBC is developing the next version of LEED that will help address some of the biggest challenges we face by mitigating greenhouse gases and ensuring buildings and communities are resilient to the impacts of climate change.

Overall, there are positive signs that we are headed in the right direction and, more important, that the green energy transition is now hardwired into the U.S. economy.

To read the full report, visit the BCSE website.

Download the Factbook

2023 BCSE Factbook highlights progress in the clean energy transition