New York State has awarded more than $23 million to 15 projects aimed at reducing building-related and industrial carbon emissions, linking climate action directly with regional economic development and job creation across the state.
The funding, announced by the New York State Energy Research and Development Authority (NYSERDA), was allocated through the 2025 Regional Economic Development Council Initiative. The selected projects target emissions reductions in commercial, residential and public infrastructure while advancing goals outlined in the state’s Climate Leadership and Community Protection Act.
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 investments address long-standing environmental and economic inequities.
More than $17 million was awarded to 13 projects through NYSERDA’s Building Cleaner Communities Competition, which focuses on new construction and deep energy retrofits at regionally significant commercial and mixed-use sites. These projects span New York City, the Hudson Valley and Western New York and combine electrification, advanced energy efficiency and on-site clean energy generation.
At Brooklyn’s 3 MetroTech Center, a 330,000-square-foot commercial building will be transformed into New York University’s campus gateway using air-source heat pumps, energy recovery ventilation, battery storage and stormwater management systems. In Kingston, a new all-electric residential development at 21 Elizabeth Street will provide 15 housing units for low- and middle-income households, featuring electric vehicle charging and shared community amenities.
In Buffalo, a Family Support Center at 317 Vulcan Street will undergo a deep energy retrofit designed to serve as a replicable model for low-carbon community facilities. Additional projects include the adaptive reuse of the historic 1876 Summit Knitting Mill in Philmont into an all-electric performing arts venue, a net-zero renovation of the ArtRage Gallery in Syracuse, and the redevelopment of a long-vacant property 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.”
State officials noted that the Building Cleaner Communities projects are also designed to support construction and operations jobs with family-sustaining wages, aligning workforce development with the clean energy transition.
An additional $5 million was awarded through the Commercial and Industrial Carbon Challenge, which targets emissions reductions at large energy users such as hospitals, manufacturers and municipal infrastructure systems.
In the Finger Lakes region, Finger Lakes Health will implement seven emissions-reduction projects across two hospitals, replacing outdated systems while improving HVAC resilience. In the Capital Region, the Saratoga County Sewer District will modify wastewater treatment processes to generate renewable fuels from biosolids, reducing long-term operating costs and environmental impacts.
Empire State Development President, CEO and Commissioner Hope Knight emphasized the broader economic strategy behind the awards. “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.”
State leaders highlighted the role of public funding in de-risking decarbonization in sectors that are traditionally difficult to electrify. Since 2018, NYSERDA’s 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 totaling 7.2 million metric tons of carbon dioxide.
New York Secretary of State Walter T. Mosley underscored the governance and planning implications of the initiative. “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 development strategies.
For investors and corporate leaders, the latest awards signal where state-backed capital is flowing—toward electrification, deep retrofits and infrastructure projects that align emissions reductions with economic resilience. As states increasingly compete to attract clean energy investment, New York’s coordinated approach illustrates how climate policy, regional development and social equity objectives can advance together through targeted funding with measurable outcomes.
Originally reported by ESG News.
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