Colorado Governor Polis Signs Bill to Encourage Cleaner Construction
DENVER — A bipartisan bill to incentivize embodied carbon emissions reductions for construction materials was signed into law by Governor Jared Polis. SB25-182 Embodied Carbon Emissions—sponsored by Senators Ball and Simpson, and Representatives Brown and Weinberg—seeks to reduce the emissions released during the sourcing and manufacturing of project materials like cement and steel.
Embodied carbon refers to the greenhouse gas emissions that occur when building materials are manufactured, transported, installed, maintained, and disposed of. It’s a key factor in a building’s carbon footprint and a significant driver of global warming, contributing to 11 percent of global buildings’ greenhouse gas emissions. While state policies have made strides toward reducing public projects’ embodied carbon emissions, the embodied carbon emissions associated with private sector buildings remain significant and largely unregulated.
Supporters of the legislation have the following comments:
“Colorado consistently ranks as one of the top 10 states for population growth and new commercial real estate development, which is why we must take construction-related greenhouse gas emissions seriously,” said Senator Ball, District 31, and prime sponsor of the bill. “We already lead the nation with innovative policies to cut emissions from buildings, and this legislation builds on that success by making it easier for private developers to use low-carbon materials. By expanding financing tools and incentives, we can ensure that Colorado’s dynamic construction sector drives progress towards our climate goals while creating demand for the highest quality, climate-positive materials—many of which are being developed and pioneered right here in the state.”
“As a representative of rural Colorado, I know how important it is to build a future where our towns can thrive,” said Senator Simpson, District 6 and prime cosponsor of the bill. “SB25-182 supports innovation in manufacturing which can help drive economic growth, ensuring our industries stay competitive. By leveraging existing financing tools, this bill supports job creation in Colorado’s industrial sector while aligning with smart, forward-looking economic policy.”
“Colorado has a responsibility to lead the way in tackling climate change, and that means addressing emissions in every sector—including construction,” said Representative Brown, District 12, and prime sponsor of the bill. “SB25-182 is a practical, market-driven approach that accelerates the transition to sustainable building materials while mitigating any increase in building costs. By making it easier for developers to choose low-carbon options, we can reduce emissions, support businesses, and ensure that our housing and development goals align with our state’s ambitious climate commitments.”
“This bill reflects a commonsense, market-based approach that encourages innovation without new mandates or overregulation,” said Representative Weinberg, House District 51. “By expanding access to voluntary financing tools, SB25-182 empowers private developers and manufacturers to lead in reducing emissions through American ingenuity—not government control. It’s a win for job creation, energy efficiency, and smart economic growth that keeps Colorado competitive.”
“This legislation is a valuable step to reduce embodied carbon emissions from building projects and supply chains,” said Colorado Energy Office Executive Director Will Toor. “By expanding eligibility for two existing funding and financing programs—Colorado’s Industrial Tax Credit Offering (CITCO) and Commercial Property Assessed Clean Energy (C-PACE) financing program—this law creates new opportunities to advance innovative emissions reduction technologies. Addressing embodied carbon emissions in the building and industrial sectors is a key strategy in our holistic, nation-leading approach to achieve net-zero emissions in Colorado by 2050.”
“This legislation offers an opportunity to empower the private sector to invest in materials manufacturing practices and materials that prioritize the health of our communities and stability of our climate,” said Alana Miller, Colorado policy director at NRDC (Natural Resources Defense Council). “This new regulation will help Colorado meet its decarbonization goals and provide innovative leadership for other states to follow. Today, we have taken an important step when it comes to reducing the impact of our built environment.”
“The Colorado Ready Mixed Concrete Association is proud to support policies that promote responsible, forward-thinking solutions, and we look forward to collaborating with policymakers, industry partners, and stakeholders to drive meaningful progress,” said Todd Ohlheiser, executive director of the Colorado Ready Mixed Concrete Association. “SB-182 provides critical funding for incentives to support lower-carbon building materials, aligning with ongoing efforts within the concrete industry to advance sustainability. While our industry has made impressive reductions in our carbon footprint, we continue to innovate, investing in new technologies, materials, and practices that lower the carbon footprint of concrete while maintaining the durability and resilience that make it essential for construction.”
"Many industrial facilities in Colorado and across the United States are making major investments to reduce their carbon emissions. Policies like SB25-182 have the two-fold benefit of positively reinforcing this investment in emissions reductions while helping to keep our high-quality, union manufacturing jobs in the state and in the country," said Elena Santarella, BlueGreen Alliance state policy manager, Colorado. "Increasing demand for lower embodied carbon products is a slam dunk policy that will benefit Colorado's industrial facilities and industrial communities.”
“SB 182 will enable property owners with projects using low carbon materials access to low-cost financing,” said Kevin Morse, managing director at Imperial Ridge Real Estate Capital, a leading national C-PACE capital provider. “This will help increase the value of their property and provide funding for climate friendly upgrades that include not just clean energy—but materials that reduce the carbon footprint of their building. By allowing embodied carbon to be included in C-PACE, Colorado would become the first state in the United States to make low-cost financing available for low carbon materials.”
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).