As the US retracts clean-energy investments, experts warn that the global green transition could stall, particularly in the building and construction sector. Europe, however, is pushing ahead with record levels of funding.
At the beginning of October, the US Department of Energy (DOE) cancelled more than $7.5 billion in clean-energy awards, terminating 223 projects and launching a review of nearly $100 billion in loans and conditional commitments approved late in the previous administration. The move has sent ripples through the clean-tech community, raising concerns over the future of sustainability-driven innovation, particularly in the digital construction and built environment sectors.
A pause in US funding, a push in Europe
The DOE’s decision means that projects focused on building operations, clean power generation, and emissions reduction may now face delays or even cancellation. The timing is particularly problematic as global demand for energy-efficient construction technologies and AI-driven building management systems continues to grow.
While the US takes a pause, Europe is heading in the opposite direction. The European Union currently has more than €250 billion available for green measures under the NextGenerationEU framework. According to the European Commission, EU member states have already reaped €66 billion in direct benefits from investments in clean transportation, sustainable building renovations, and renewable energy infrastructure.
This divergence in policy direction is stark. For Europe’s construction and energy sectors, the funding surge represents an opportunity to accelerate decarbonisation and digital transformation. In contrast, the US faces an uncertain future where clean technology companies must navigate inconsistent support and shifting priorities.
Buildings run every day, regardless of policy timelines
According to Donatas Karčiauskas, CEO of Exergio, a company specialising in AI-based optimisation of building operations, the US decision is a major setback for sustainability efforts.
“If clean-tech solutions continue to be de-funded, this will become a major issue for corporate budgets. At the moment, the EU offers far more predictable frameworks, while the US seems to be entering a pause-and-review cycle. For industries such as the building sector, it shows that policies are not prioritising sustainable solutions. Buildings, however, run every day and consume energy regardless of funding timelines,” said Karčiauskas.
The buildings industry is one of the most sensitive sectors to policy changes, and also one of the most critical to global emissions targets. According to the International Energy Agency (IEA), commercial and public buildings consume around 32% of global energy and produce 34% of energy-related CO₂ emissions. In the US alone, commercial buildings emit around 830 million tonnes of CO₂ annually, roughly equivalent to Germany’s total emissions.
Karčiauskas warns that without stable funding, the momentum toward cleaner, more efficient building operations could be lost.
“If the grants in the US had gone through, many firms would have moved forward with innovative technologies to boost energy efficiency. Without that push, companies will remain running on outdated systems, wasting even more energy,” he explained.
Operational optimisation: a cost-effective alternative
In the absence of new large-scale funding, building owners may need to look toward operational efficiency rather than expensive hardware upgrades. Karčiauskas argues that software-based energy optimisation can deliver immediate savings, making it an ideal solution in uncertain financial climates.
“The realistic step now is software on top of existing controls. We’ve already seen such solutions deliver even better results than some deep renovations or major upgrades,” he said. “Existing AI tools can read site data, identify waste, and apply micro-adjustments. The result is steadier temperatures, fewer fault hours, smoother operations, and, most importantly, energy savings of up to 30%.”
“It’s possible to reduce energy waste now, but scaling these solutions across industries requires consistent investment,” Karčiauskas added.
Cities are moving faster than federal policy
While federal clean-energy programmes in the US remain uncertain, city and state-level climate regulations are continuing to advance. New York now limits building emissions and mandates regular reporting from firms. Washington, DC has implemented strict compliance cycles, while California will soon require large companies to disclose their emissions data on a fixed schedule.
These developments indicate that, despite fluctuating federal support, regulatory momentum toward sustainable building operations is growing. For construction firms and building operators, the message is clear: sustainability is no longer optional, it’s a compliance requirement.
The road ahead: collaboration over competition
Karčiauskas believes that the conversation around clean technology should move beyond competition between regions.
“When we’re talking about clean tech and energy waste, we should talk about global policies and solutions. It doesn’t matter who’s doing better, but how to be better. The fact that the EU is in a leading position now doesn’t mean it can’t get complicated with the upcoming budgets too,” he said. “If governments around the world can’t agree, businesses have to take action, and it will benefit them as well as the planet.”
The cost of delay
The cancellation of clean-energy funding in the US highlights a growing divide in the global approach to sustainability. As Europe accelerates its green investment strategy, the construction and building sectors must continue to innovate, driven by necessity as much as by policy.
With tools such as AI-based building optimisation, digital construction technologies, and data-driven energy management, the industry has the means to act now. But without consistent funding and long-term policy stability, achieving net-zero in the built environment could remain an elusive goal.
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