By Matt Ellis, CEO, Measurabl
Matt Ellis, CEO, Measurabl
The proposed elimination of ENERGY STAR (ESTAR) under the U.S. administration’s FY2026 budget has pushed the real estate industry beyond contingency planning to contemplate its energy and sustainability future like never before.
While perhaps best known for appliance labels, ESTAR’s often overlooked component, a software product called ENERGY STAR Portfolio Manager (ESPM), acts as the backbone of energy and sustainability data management and benchmarking for North American commercial real estate.
ESPM has supported 330K+ buildings across 35B sq. ft.–allowing users to upload building data and receive a “1-100” benchmark, along with other value propositions. It powers green loan programs from HUD to Fannie Mae, supports compliance with 60+ state and local building energy performance standards, and facilitates reporting across the ecosystem. It also underpins the ESTAR certification program, helping qualified owners distinguish their buildings through energy efficiency.
Offered at no cost to users (taxpayers cover the cost), ESPM has delivered significant returns–$350 in energy savings for every $1 invested, according to EPA estimates. A phenomenal ROI by any measure.
But as the government signals its intention to pull the plug, the real estate industry must consider an unprecedented question: If a new way forward is needed, what should that look like?
Measured sustainability performance drives tangible business outcomes. Energy and carbon management are now key drivers of risk and reward, directly linking sustainability efforts to efficiency, cost savings, and asset value. Here are the key questions the industry should be asking to build a better business case:
1. Funding: Should the industry rely on taxpayers to fund its critical data infrastructure?
2. Benchmarking: Should our benchmark be set by CBECS, a once-every-several-year survey that covers a small set of buildings?
3. Politics: Should business-critical data rest with the government, which is in the business of politics?
4. Globalization: Should our tools be designed for North America only when our business is global?
5. Pace & Breadth of Innovation: Is government best placed to deliver the innovation needed for complex operations and constantly evolving regulations?
When we ask our customers–including many of the world’s largest real estate firms–their answers are consistent:
First, the investment in R&D must match the scale of the sector and the urgency of its climate impact. Second, benchmarks should be dynamic and continuously updated using modern tools like data science and AI–not based on infrequent surveys like CBECS. Third, real estate’s global nature demands a global solution–tools that reduce translation barriers between owners, investors, and regulators. Last, business data must remain apolitical–it should not be exposed to the whims of any administration.
Taking stock of this input helps define a way forward–with or without ESTAR.
We’ve distilled it to five core pillars:
1. For Industry, By Industry: Real estate must shape its own data destiny. The new standard should be governed by its users–owners, operators, and investors–while engaging public-private partnerships to scale adoption.
2. Market-Driven Innovation: The industry’s digital infrastructure must keep pace with evolving needs and technologies.
3. Globally Referenceable: Real estate is global. Standards should be consistent, interoperable, and applicable across geographies and policies.
4. Agnostic: To advance a market this large, alignment is key. Any organization that contributes or adds value to data should be able to participate.
5. Sustainable Business Model: Core functionality like data acquisition, quality assurance, and reporting should be free. But to drive the innovation and ROI necessary, the platform must include transparent revenue streams that ensure its long-term viability for everyone.
Measurabl takes any potential discontinuation of ESPM seriously. As a six-time ENERGY STAR Partner of the Year and the world’s most widely adopted sustainability data management platform after ESPM, our first responsibility is to communicate what’s at stake. But communication isn’t enough–the industry must act.
We’ve shared contingency steps, including the ability to create a free Measurabl account and automatically sync it with ESPM to backup data.
We’re offering powerful tools at no cost to ensure continuity. We’ll stay flexible and vigilant, and ready to support the industry no matter what transpires.
This is a pivotal moment. It’s not just about ESTAR–it’s about considering what we want from it or any new system.
Collectively, we have to ask a new, critical question–not just about what comes next–but what change do we want? Asking that question is essential if ENERGY STAR goes away, but even more important if it stays.
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