Decarbonising buildings at scale with Global Alliance

Green buildings are essential for reducing the environmental impact of buildings and improving occupant health and productivity.

This is a critical area of focus for the U.S. Green Building Council (USGBC) and the National Association of Realtors (NAR). The report highlights the benefits of green building practices, including reduced energy consumption, lower water usage, and improved indoor air quality.

The Importance of Green Building Practices

Green building practices are essential for reducing the environmental impact of buildings. The USGBC and NAR have identified a critical gap in the adoption of green building practices among lower-performing buildings. These buildings account for 75% of the total building stock, and their lack of adoption of green building practices has significant environmental and economic implications.

Benefits of Green Building Practices

Reduced energy consumption

Lower water usage

Improved indoor air quality

Increased property values

Enhanced occupant health and productivity

Reduced maintenance costs

Improved waste management

The Current State of Green Building Practices

The current state of green building practices in the United States is a mixed bag. While some buildings have adopted green building practices, many others have not. The lack of adoption of green building practices among lower-performing buildings is a significant concern.

The goal is to provide a framework for businesses to transition to a more sustainable future.

What is Building Transition? Building Transition is a collaborative initiative that brings together industry leaders, researchers, and policymakers to create a framework for businesses to transition to a more sustainable future. The initiative is led by the UK’s Building Research Establishment (BRE) and other green building councils. ### Key Objectives

Improve the sustainability of buildings and infrastructure

Enhance the performance of buildings and infrastructure

Reduce the environmental impact of buildings and infrastructure

Support the development of new technologies and innovations

Benefits of Building Transition

Increased competitiveness: By adopting sustainable practices, businesses can improve their competitiveness and reduce costs. Enhanced reputation: Companies that prioritize sustainability are more likely to attract customers and investors who value environmental responsibility. Improved public health: Sustainable buildings can reduce the risk of respiratory diseases and other health problems associated with poor indoor air quality. * Reduced environmental impact: By reducing energy consumption and waste, businesses can minimize their carbon footprint and contribute to a more sustainable future.

Green buildings are the key to reducing the building sector’s environmental impact.

The Building Sector’s Environmental Impact

The building sector is one of the largest contributors to greenhouse gas emissions, accounting for approximately 40% of global emissions. This staggering figure is largely due to the energy consumption and resource extraction associated with building and maintaining structures. The sector’s environmental impact is further exacerbated by the use of non-renewable energy sources, such as fossil fuels, and the resulting emissions of carbon dioxide, methane, and other pollutants.

The Challenges of Decarbonizing the Building Sector

Decarbonizing the building sector is a complex task that requires significant investment and policy support.

Green finance gap hinders access to capital for high-performing buildings.

The Green Finance Gap

The green finance gap refers to the disparity between the amount of green finance available and the amount needed to support the transition to a low-carbon economy. This gap is particularly pronounced in the building sector, where many high-performing buildings struggle to access the necessary capital to maintain and upgrade their green features.

The Challenge of Accessing Green Finance

High-performing buildings are often located in areas with high population density, making them attractive to investors. However, these buildings are also more likely to be located in areas with high construction costs, making it difficult for them to access green finance. Additionally, the lack of standardization in green building certifications and the complexity of green building projects can make it challenging for high-performing buildings to access green finance.

Incorporating adaptation and resilience in real estate finance to account for the impacts of both acute and chronic climate events.

The Stranded Assets Conundrum**

In the face of climate change, the built environment is facing an unprecedented challenge. The “other 75%” of buildings, those that are lower-performing and less resilient, are at risk of becoming stranded assets, unable to withstand the increasing frequency and severity of climate-related events.

This concept, developed by the European Union, aims to bridge the gap between traditional financial markets and the unique needs of the building sector. By facilitating the transition to sustainable practices, the initiative seeks to reduce the environmental impact of buildings and promote a more circular economy.

The Problem of Sustainable Finance

The building sector is one of the largest consumers of energy and resources, accounting for approximately 40% of global greenhouse gas emissions. The sector’s environmental footprint is significant, and the need for sustainable finance solutions is pressing. Traditional financial markets often fail to address the specific needs of building owners, who require financing options that balance environmental and economic considerations.

The EU’s Building Transition Concept

The European Union’s Building Transition concept is a pioneering initiative that seeks to address the sustainable finance gap in the building sector.