Energy Efficiency Building More Than 114,000 Jobs
Created by the White House’s Better Buildings Initiative
The White House’s Better Buildings Initiative is most definitely proving that energy efficiency can be a major driver of economic growth. A joint analysis from the Real Estate Roundtable, U.S. Green Building Council, and Natural Resources Defense Council estimates that the program has created over 114,000 jobs nationwide. The majority of these positions are in construction—an industry that suffered deeply during the recession.
Yet this isn’t just a jobs story. It’s also about lowering energy bills, cutting carbon emissions, and boosting America’s competitive edge in high-performance building design and retrofits.
Understanding the Better Buildings Initiative
Launched under the Obama administration, the Better Buildings Initiative aimed to improve energy efficiency in commercial and industrial buildings by 20% by 2020. The plan included:
- Incentives for building owners to invest in energy upgrades.
- Public-private partnerships to share best practices and financing models.
- Training programs for workers in energy-efficient construction.
The initiative’s cornerstone is a revamped tax deduction program, which rewards energy-efficient improvements. According to the analysis, this single measure generated more than 77,000 jobs. Essentially by encouraging upgrades in lighting, HVAC systems, insulation, and building controls.

A Lifeline for the Construction Industry
The timing couldn’t have been better. In the years after the Great Recession, the construction sector’s unemployment rate hovered around 16%, far higher than the national average.
Jeffrey D. DeBoer, President and CEO of the Real Estate Roundtable, underscored the significance:
“This initiative works for our economy in two important ways: it helps create tens of thousands of well-paying jobs while enhancing our energy efficiency.”
By targeting both urban and suburban projects, the program funneled private investment into communities where construction activity had stalled. It helped bring electricians, carpenters, engineers, and energy auditors back to work—while also modernizing America’s building stock.
Economic Benefits That Go Beyond Jobs
The Better Buildings Initiative wasn’t just about short-term job creation. It laid the foundation for long-term economic and environmental gains.
Roger Platt, Senior Vice President for Global Policy & Law at the U.S. Green Building Council, pointed out:
“The Better Buildings Initiative will yield multiple benefits—its primary impact is job creation, but it also reduces energy use, cuts reliance on foreign oil, and strengthens America’s global position in high-performance building design, retrofitting, and operation.”
By lowering energy consumption, building owners save money year after year. Those savings often get reinvested in additional upgrades, further fueling job creation. Plus, less energy demand means fewer greenhouse gas emissions—helping the U.S. meet its climate goals.
Attracting Private Capital to Energy Efficiency Building for Retrofits
One of the biggest barriers to large-scale energy retrofits has always been access to capital. Many property owners know they could save money by upgrading their buildings, but they lack upfront funding.
Ashok Gupta, Senior Energy Economist at the NRDC, emphasized the program’s role in overcoming this hurdle:
“This initiative addresses our need for targeted programs with clear job-creation goals. It will also attract lenders to the retrofit market; especially for commercial building efficiency projects. In addition, lowering energy-related pollution, lowering consumer bills, and enhancing business competitiveness.”
By creating stable, long-term incentives, the program gives banks and investors confidence that retrofits are worth financing.

Why Energy Efficiency Is a Jobs Powerhouse
Energy efficiency projects tend to be labor-intensive. Unlike fossil fuel extraction, which relies heavily on equipment, building retrofits require skilled workers on site. Electricians, plumbers, HVAC technicians, insulation crews, and also engineers all play a role.
For every million dollars spent on energy efficiency, studies have shown that more jobs are created compared to equivalent spending on traditional energy generation. That’s because most of the money stays in the local economy—paying wages, buying materials from local suppliers, and supporting related businesses.
Better Buildings Initiative: Sector Breakdown of Job Creation
According to the joint analysis, the 114,000 jobs generated by the Better Buildings Initiative can be roughly divided into:
- 77,000 jobs from tax deduction-driven energy efficiency upgrades.
- 23,000 jobs from public-private partnership projects.
- 14,000 jobs from workforce training and technical assistance programs.
Real-World Examples of Better Buildings in Action
The initiative funded thousands of retrofits across the country. Examples include:
- Office buildings replacing outdated fluorescent lighting with LED systems.
- Manufacturing facilities also installing high-efficiency boilers and process controls.
- Hotels and apartment complexes upgrading insulation and windows to reduce heating and cooling loads.
- Schools and universities modernizing HVAC systems to improve comfort and cut utility costs.
These projects not only save money and reduce emissions but also improve occupant comfort and productivity.
Energy Efficiency Buildings for Environmental Justice and Community Impact
Energy efficiency isn’t just an environmental or economic win—it’s also a social equity issue. Many older, inefficient buildings are located in low-income neighborhoods, where residents face higher energy bills and poorer indoor air quality.
By prioritizing projects in disadvantaged communities, the Energy Efficiency Better Buildings Initiative helps:
- Lower utility costs for residents and small businesses.
- Improve public health through better indoor air quality.
- Create local jobs that stay in the neighborhood.
Long-Term Policy Implications for Energy Efficiency in Corporate Buildings
The success of the Better Buildings Initiative shows that policy-driven incentives work. They also encourage investment, create jobs, and deliver measurable environmental benefits.
Future energy policy could build on this model by:
- Expanding incentives for retrofits in existing buildings.
- Setting higher efficiency standards for new construction.
- Providing technical assistance for small business owners and landlords.
- Ensuring targeted investment in underserved communities.
A Vision for the Future
The program’s legacy extends beyond the jobs it created. In addition, it has also helped normalize the idea that energy efficiency is a mainstream investment strategy. Because it’s not a niche environmental cause.
In a time when climate action is urgent, the Better Buildings Initiative offers a blueprint. Especially for how federal policy, private capital, and local communities can work together. Essentially to cut emissions, save money, and put people to work.
Key Takeaways
- The initiative created 114,000+ jobs, most in the construction sector.
- 77,000 jobs came from tax deduction-driven upgrades alone.
- Energy efficiency projects deliver lasting economic and environmental benefits.
- Stable incentives attract private capital to the retrofit market.
- Targeted investment can address environmental justice and as well social equity.



