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Carbon Trading for New York City’s Building Sector

Report of the Local Law 97 Carbon Trading Study Group to the New York City Mayor’s Office of Climate & Sustainability

NYU researchers released the first study to rigorously assess the predicted impacts of Local Law 97 of 2019 (LL97), the City of New York’s signature climate law. The law caps the amount of greenhouse gases (GHGs) that large buildings can release, starting in 2024.

The study assessed the impact that adding an emissions trading program would have on environmental justice communities and proposes ways to increase investment and emissions reductions in those areas. The study offers two options for trading programs designed to improve outcomes under LL97. Both options would benefit the City as a whole, and environmental justice communities in particular. The study found that both proposals would lead to deeper GHG reductions and lower the cost of complying with LL97.