By 5 Towns Central Staff

NEW YORK CITY (August 17, 2026)

A climate policy Mayor Zohran Mamdani criticized during his campaign is moving forward under his administration, giving New York City landlords a new way to reduce their obligations under the city’s building emissions law — by purchasing energy credits.

Local Law 97 requires many large buildings to reduce greenhouse gas emissions, with violations potentially carrying substantial financial penalties. Buildings account for a significant share of New York City’s overall carbon emissions, making the law a centerpiece of the city’s climate strategy.

During his mayoral campaign, Mamdani pledged to eliminate loopholes that he argued allowed property owners to avoid fully complying with the law.

But a credit program created under former Mayor Eric Adams is now set to launch, allowing building owners to purchase credits that can be used toward certain emissions requirements.

Adams introduced the program in 2023 as a way to help property owners manage the potentially enormous cost of upgrading older buildings while directing private money toward clean-energy infrastructure.

The first credits are scheduled to go on sale Wednesday through the New York State Energy Research and Development Authority. The initial sale is expected to generate nearly $1.8 million for the Champlain Hudson Power Express, a major transmission project designed to bring hydroelectric power from Quebec into New York City.

Credits will cost $35.52 each, with buyers required to purchase at least 1,000 credits. There is currently no stated limit on the number of credits a building owner can purchase.

However, the credits do not provide a blanket exemption from Local Law 97. They can only be applied toward emissions associated with sources outside the building, such as electricity generation. Direct emissions from fossil-fuel equipment located inside a building, including boilers, cannot be offset through the program.

The program comes as landlords, co-op owners and property managers continue to warn that complying with Local Law 97 could require expensive upgrades, particularly in older buildings.

The emerging system puts Mamdani in an awkward position: while he campaigned on tightening enforcement of the city’s climate rules, his administration is now overseeing the implementation of a mechanism that gives property owners another financial tool for meeting their obligations.