Ahead of Climate Week NYC and the United Nations SDG Summit, both taking place this September in New York City, the GI Hub is publishing interviews with public and private sector leaders working at the municipal, state, national, and global levels – bringing you their thoughts on the importance of infrastructure in the climate transition.
Today we are joined by John O’Leary, Deputy Secretary for Energy and the Environment in the Office of Governor Kathy Hochul, and Nivardo Lopez, Deputy Secretary for Transportation in the Office of Governor Kathy Hochul.
In this Q&A, John and Nivardo share how the FY2024 New York State Budget is accelerating investment in infrastructure toward climate targets and social equity.
Q: You recently released New York State’s FY2024 budget, which includes some major climate initiatives. Can you tell us more about the budget’s infrastructure-related initiatives, and how they are aimed at addressing climate change and social inequality?
John O’Leary: New York State’s FY2024 budget represents one of the most ambitious packages the State has ever advanced to fight climate change. We became the first state in the nation to commit to constructing zero-emission new homes and buildings that will protect our families and create a clean, healthier future. Recognising that New York families are struggling with rising costs, Governor Hochul championed record investments in energy affordability, including USD400 million to provide relief for those experiencing high energy bills and to lower energy burdens through electrifications and retrofits.
The Governor also advanced an affordable Cap-and-Invest program to accelerate climate action, which includes a Consumer Climate Action Account to deliver one-third of future proceeds back to New Yorkers. The program will support clean energy programs and emission reduction measures, with a focus on delivering tangible benefits to disadvantaged communities that have historically been burdened by pollution.
We understand the climate crisis requires an all-hands-on-deck approach, which is why the budget also enabled the New York Power Authority to expand its renewable portfolio and work with developers to build renewables to support New York’s clean energy goals.
Q: What role can the private sector play in accelerating these climate initiatives?
John O’Leary: To decarbonise our economy and meet the Climate Act’s targets, we must collectively mobilise hundreds of billions of dollars of investment in clean power generation, electric vehicles, decarbonised buildings, and many other areas. The public sector cannot do this alone – nor should it. Rather, we will succeed by mobilising capital and catalysing the development of clean energy at scale.
Progress is well underway and we’re seeing the results across the State, with innovative clean energy businesses investing in New York and creating the high-quality clean energy careers of the future. As our clean energy sector grows, we also need to ensure these investments are delivering benefits to disadvantaged communities that have historically borne a disproportionate share of environmental burden.
New York is open for businesses and looking to collaborate on climate solutions. We know that private-public collaboration is essential for reaching our ambitious and nation-leading climate goals. These partnerships bring the private sector capital investment needed to expand our clean energy economy, overcome barriers to deploying and using clean energy at a large scale, and enable all New Yorkers to benefit from the clean energy transition.
Q: New York is the first US state to ban natural gas and other fossil fuels in most new buildings. What impact do you see this having, and what other measures are you planning related to infrastructure?
John O’Leary: Buildings account for more than 30% of New York’s greenhouse gas emissions, so addressing this major source of pollution in New York State and seizing the opportunity to modernise our building stock is essential to meeting our climate goals. The FY2024 Budget included a ground-breaking step toward decarbonisation and makes New York the first state to commit to zero-emission new homes and buildings. The legislation requires zero-emission for new buildings seven stories or lower, except for large commercial and industrial buildings, by 31 December 2025, and all other new buildings by 31 December 2028.
Additionally, the State is leading by example by directing the New York Power Authority to complete decarbonisation action plans for 15 of the highest emitting state facilities. The action plans will accelerate our progress toward a cleaner building sector, lead to the creation of high-quality jobs at future decarbonisation projects, including thermal energy networks, and move the State closer to reaching our climate goals.
Q: Can you tell us more about the Congestion Pricing Plan? This ambitious plan was first proposed 17 years ago and only recently passed through the final federal environmental reviews. What level of climate impact is expected, and what measures are you putting in place to ensure that people living on low incomes are not disadvantaged?
Nivardo Lopez: Congestion pricing is an essential tool to reduce traffic, fight climate change, and make critical infrastructure investments in the nation’s largest mass transit system – the Metropolitan Transportation Authority (MTA). Taking cars off the road and improving mass transit will have direct impact on regional air quality and carbon emissions, while continuing to make our mass transit system safer, more accessible, and more reliable for the millions of riders who depend on it every day. Throughout the public consultation process, MTA and its partners responded to thousands of comments, including those from environmental justice communities, and have committed to mitigations that directly address their concerns, particularly in the Bronx.
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