Sustainable finance tools such as green loans and green bonds are being increasingly used by companies to get the money they need to help with the transition to cleaner energy. Such tools could help scale and speed up the adoption of low-carbon technology in buildings, which the International Energy Agency says account for 30 per cent of global energy use and 26 per cent of emissions. But when it comes to the real estate sector, a lack of knowledge about how to access such tools is slowing progress and opportunities are being missed, says a recent report on the issue. The variety of classifications and certifications for what makes a “green building” around the world has been another barrier to accessing sustainable financing.
A report from the Green Building Council of Australia (GBCA), the U.K.-based Building Research Establishment (BRE), the U.S. Green Building Council (USGBC), the Singapore Green Building Council (SGBC) and Alliance HQE-GBC France aims to solve this problem.
Written as a guideline, the report outlines a framework for aligning building certification systems to help institutional investors and financial institutions understand how they fit with sustainable finance goals.
Investing in green buildings can provide significant benefits. Economically, they can reduce operational costs through energy savings, often lowering utility bills and increasing property values. Socially, green buildings can enhance occupant health and employee productivity, improve air quality, and foster community resilience.
“Financing Transformation:
Investors and financial institutions are crucial in providing the needed capital. Green bonds and loans have already funded numerous projects worldwide but it’s not nearly enough to decarbonise the built environment. Policymakers must create supportive regulations and incentives, while developers, architects, and engineers integrate sustainability into their projects. Communities and occupants play a vital
role in supporting these initiatives.
We need all stakeholders. We need them now. We need all buildings to
become green to protect our communities and our planet.
A Guide to Green Building for
Green Bonds and Green Loans,” Alliance HQE-GBC France, Building Research Establishment, Green Building Council of Australia, Singapore Green Building Council & U.S. Green Building Council, July 3, 2024.
Download the full report originally published July 3, 2024.
