What can hospital systems do to combat climate change? A lot, according to a new report from the Center for Houston's Future. Photo via TMC.org

A new report underscores an “urgent need” for health care systems in the Houston area to combat climate change and avoid an environmental “code blue.”

“By adopting collaborative strategies and leveraging technological innovations, health care providers can play a pivotal role in safeguarding the health of Houston’s residents against the backdrop of an evolving climate landscape,” says the report, published by the Center for Houston’s Future.

Among the report’s recommendations are:

  • Advocate for policies that promote decarbonization.
  • Create eco-friendly spaces at hospitals and in low-income communities, among other places.
  • Recruit “champions” among health leaders and physicians to help battle climate change.
  • Establish academic programs to educate health care professionals and students about climate health and decarbonization.
  • Bolster research surrounding climate change.
  • Benchmark, track, and publish statistics about greenhouse gas emissions “to foster accountability and reduce environmental impacts of the health care sector.” The report notes that the U.S. health care sector emits 8.5 percent of the country’s greenhouse gases.

“By embracing collaborative strategies, acting with urgency and implementing sustainable practices, our region’s health care providers can play a pivotal role in creating a healthier, more resilient Houston,” says Brett Perlman, outgoing president and CEO of the Center for Houston’s Future. “If we work together, given all the collective wisdom, resources and innovation concentrated in our medical community, we can tackle the challenges that are confronting us.”

The report highlights the threat of climate-driven disasters in the Houston area, such as extreme heat, floods, and hurricanes. These events are likely to aggravate health issues like heatstroke, respiratory illnesses, cardiovascular diseases, and insect-borne diseases, says the report.

St. Luke’s Health, a nonprofit health care system with 16 hospitals in the Houston area and East Texas, provided funding for the report.

Here's what resilience and sustainability wins Houston has had the past three years. Photo courtesy of the Mayor’s Office of Resilience and Sustainability

City of Houston issues report highlighting progress of climate, sustainability plans

checking in

Houston is making strides in its commitment to combat climate change and build a more resilient future for its residents, according to a recent report.

Three years after Resilient Houston and the Climate Action Plan launched in 2020, the Mayor’s Office of Resilience and Sustainability, in collaboration with other departments, has issued a report on the progress of both plans.

"The creation of the Mayor's Office of Resilience and Sustainability (MORS) as a combined office in October 2021 is a visionary and bold step that brings a holistic perspective to the practice of resilience and sustainability in Houston," Priya Zachariah, chief resilience and sustainability officer, writes in the report.

"When Houston talks about resilience – it means building capacity in our most vulnerable communities to respond, grow, and thrive in the face of climate shocks and stressors," she continues. "When Houston talks about sustainability – it means reducing greenhouse gas (GHG) emissions, but it also means energy affordability, energy reliability, and energy access for everyday Houstonians."

The report identified some of the biggest wins within the city's plans, including highlighting that 172 out of 201 Resilient Houston sub-actions and 69 out of 96 Climate Action Plan actions have been completed or are in progress. The combined efforts have led to a series of accomplishments over the past year that are driving Houston toward becoming a more sustainable, equitable, and climate-resilient city.

“Earth Day HTX 2023 marked three years of laser-focused cooperation between all city departments and our dedicated community partners to push forth initiatives for a cleaner, greener Houston and I’m proud to say that we are exceeding expectations mapped out in these two plans,” Mayor Sylvester Turner says in a statement. “We track 30 measurable goals and are transparent with where we are on each one of them. We are on track to meet or exceed almost every goal and even though this is my last year in office, the wheels are in motion for future administrations to continue building on this success.”

One of the highlights from the report is the city's reduction of greenhouse gas emissions. The greenhouse gas emissions inventory for 2020 showed a notable 10 percent reduction from the baseline established in 2014.

The city's dedication to sustainability and transparency has also been recognized by external organizations. The Carbon Disclosure Project, or CDP, awarded Houston an A rating in 2022 for its efforts, including public disclosure of climate-related information, a community-wide emissions inventory, and the implementation of a climate risk and vulnerability assessment.

Furthermore, Houston has achieved the Gold designation as a Leadership in Energy and Environmental Design, or LEED, for cities by the U.S. Green Building Council (USGBC). This recognition highlights the city's commitment to green building practices and environmental responsibility.

In terms of green infrastructure, Houston has continued to prioritize tree planting efforts. Per the report, 214,134 trees were planted in 2022, contributing to a total of over 1.4 million trees since 2019. The goal is to plant 4.6 million trees by 2030, effectively reducing urban heat island effects, improving air and water quality, and providing numerous ecological benefits.

In addition, Houston has taken proactive measures to protect its natural habitats and enhance climate resilience. The City Council approved the Nature Preserve Ordinance in 2022, safeguarding 7,423 acres of natural habitat in city parks. These nature preserves will serve as vital spaces for native wildlife, mitigate flooding, and support carbon sequestration.

Houston's commitment to sustainable transportation is also evident. The city has expanded its bike infrastructure, adding 20 miles of high-comfort bike lanes in 2022. This brings the total bikeway miles to 406 out of a goal of 500 miles, promoting alternative and eco-friendly modes of transportation.

The city's efforts extend to municipal operations as well. Houston adopted a Municipal Building Decarbonization and Benchmarking policy in 2022, setting the stage for a more sustainable approach to building management. Additionally, the Houston Airport System has taken significant steps towards achieving carbon neutrality by engaging in the Airport Carbon Accreditation program.

Houston's commitment to renewable energy has also yielded positive results. The city has witnessed an increase in local solar generation, with annual solar generation reaching 148,030 MWh in 2021. Efforts to promote solar investments, including a group-buying campaign with Solar United Neighbors, have contributed to this upward trend.

The city's commitment to electrification is evident in its municipal fleet. Houston has expanded its electric vehicle fleet, operating 333 hybrid electric vehicles and 88 battery electric vehicles. An additional 107 battery electric vehicles and 41 hybrid electric vehicles are expected to be added within the next year. Charging infrastructure is also expanding, with 57 installed chargers and plans for an additional 144.

Mayor Turner's leadership in climate action has extended beyond the city's borders. The mayor led a delegation to Mexico City to launch the Resilient Cities Network initiative, Women in Resilience, highlighting Houston's role in international climate leadership. The city aksi hosted Queen Maxima of the Netherlands and signed a letter of intent with the city of Rotterdam to collaborate on community and energy resilience.

The full report tracking the initiatives' progress is available online.

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This article was generated in part by artificial intelligence.

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Fervo Energy officially files for initial public offering

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Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

Houston lawmaker may kill data center tax breaks due to $8B revenue loss

looking at the data

An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

“These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

Texas on track to be No. 1 data center market in U.S.

Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

Among companies benefiting from the data center boom are:

  • Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
  • Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
  • Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
  • DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

Data center industry defends tax breaks

Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

Watchdog group warns of tax breaks’ danger to state budgets

On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

“We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”