Frequent flooding and record heat have made climate change and decarbonization policy top of mind for Marylanders in recent years. The state has emerged as a leader in climate action with one of the most ambitious greenhouse gas (GHG) reduction mandates in the United States. Under state law, Maryland must reduce GHG emissions by 60% below 2006 levels by 2031 and achieve net-zero emissions by 2045. At the close of 2023, Maryland released a Climate Pollution Reduction Plan outlining comprehensive strategies across multiple sectors, including buildings, to meet these targets. This plan catalyzed policy development throughout 2024, driven by a coalition of advocates and state agencies.
Highlights include:
- A targeted 20% reduction in GHG emissions from buildings by 2030.
- Electrification of state government buildings.
- Reforming energy efficiency programs to prioritize electrification.
- Establishing zero-emission heating equipment standards and a clean heat standard.
Market and Statewide Momentum
Maryland’s existing market conditions are conducive to building electrification. The state already has one of the highest heat pump adoption rates in the Mid-Atlantic and Northeast regions, where heat pumps outsell furnaces 2-to-1 (pictured below in Figure 1.0). Recent analyses indicate that Maryland homeowners can save approximately $1,000 annually on utility bills by switching from gas or electric resistance to heat pumps to satisfy their space and water heating/cooling needs.
The challenges of affordability and equity in the energy transition are real and ongoing. The state is working to maximize funding from the Inflation Reduction Act and reform energy efficiency programs to ensure these initiatives are accessible to all residents. Workforce development is also a priority, with efforts underway to prepare the labor market for the demands, and opportunities, of building electrification.
Figure 1.0
Governor’s Executive Order
In June 2024, Governor Wes Moore issued a groundbreaking executive order on climate change. Supported and celebrated by many in the decarbonization community, this directive instructed Maryland agencies to implement key building sector policies and defines a governmental approach to addressing climate change in the state including:
- Requiring all state agencies to submit a Climate Implementation Plan by November 1, 2024.
- Requiring Maryland Department of the Environment (MDE) to propose a new zero emissions heating equipment standard and a clean heat standard to reduce emissions from heating and cooling buildings in the state.
- Establishing the Governor’s Subcabinet on Climate.
The MDE has since collaborated with advocacy groups and others, including the Northeast States for Coordinated Air Use Management (NESCAUM), to develop regulatory frameworks. You can learn more about this from our recent BDC Presents webinar featuring Zach Berzolla of the Maryland Department of the Environment.
Momentum for 2025
Maryland’s progress reflects a comprehensive approach to decarbonizing its building sector. By addressing affordability, equity, and workforce development, the state aims to set a replicable example for other states. Advocates are optimistic that Maryland’s efforts will maintain their current trajectory despite potential political and legal challenges.
2024 was a pivotal year for Maryland’s building decarbonization policy, laying a robust foundation for future regulations and solidifying the state’s role as a leader in climate action.
2025 is sure to bring even more progress. A zero-emission heating equipment standard is expected to be proposed by the summer of 2025, with Maryland poised to become a national leader in this area of decarbonization policy. And Maryland’s Public Service Commission (PSC) has been petitioned to open a “future of gas” proceeding to address the gradual phase-out of the natural gas system.