The proposed elimination of Energy Star (EStar) under the U.S. administration’s Fiscal Year 2026 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 more than 330,000 buildings across 35 billion square feet — 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-plus 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?
It’s a question the industry was initially uninterested in asking. EStar seemed too big and bipartisan to challenge — or so went the consensus. Many argued it couldn’t live outside government, and that the status quo was safest.
But asking tough questions isn’t just necessary, it’s smart for business. 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:
- Funding: Should the industry rely on taxpayers to fund its critical data infrastructure?
- Benchmarking: Should our benchmark be set by the Commercial Building Energy Consumption Survey, CBECS, a once-every-several-year survey that covers a small set of buildings?
- Politics: Should business-critical data rest with the government, which is in the business of politics?
- Globalization: Should our tools be designed for North America only when our business is global?
- 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, 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 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:
- 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. - Market-Driven Innovation
The industry’s digital infrastructure must keep pace with evolving needs and technologies. - Globally Referenceable
Real estate is global. Standards should be consistent, interoperable and applicable across geographies and policies. - Agnostic
To advance a market this large, alignment is key. Any organization that contributes or adds value to data should be able to participate. - 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.
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.
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.
Matt Ellis
CEO and Co-Founder
Measurabl
302 Washington St.
San Diego, CA 92103
