Encouraging Signs For Green Property Investment In Major US Cities

Emission performance trajectories for commercial offices in seven US cities have been released by the Climate Bonds Initiative which will enable bond issuers to gain certification against the Climate Bonds Low Carbon Buildings Criteria.

An easy-to-use CO2 Target Calculator is available on the Climate Bonds website, which enables issuers to derive the emissions performance targets that they must achieve to gain Climate Bonds Certification.

As the emissions performance trajectories have an ambition of zero emissions by 2050, bond issuers have to satisfy emissions criteria (expressed in pounds (lbs) of CO2 per square foot) that become progressively stricter over time.

Property bond issuers and institutional investors seeking greener property investments now have a straightforward, transparent approach to assess the ongoing environmental performance of office buildings and new developments in some the US’s biggest commercial property markets.

Emissions performance trajectories have been set by examining the emissions performance of the top 15 per cent of office buildings in Boston, Chicago, Minneapolis, New York City, Philadelphia, San Francisco and Washington D.C. and then determining the trajectory required to achieve zero emissions by 2050.

The announcement of new emissions performance trajectories was made by Climate Bonds Initiative CEO Sean Kidney at the Sustainable Investment Forum held in New York as part of Climate Week.

These emissions performance trajectories form part of the basis for determining whether commercial property bonds are eligible for certification against the Climate Bonds Low Carbon Buildings (LCB) Criteria.

These new emissions performance trajectories mean property bond issuers have a simplified, straightforward means to assess the performance of buildings and portfolios

 

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Sean Kidney, CEO, Climate Bonds Initiative:

“These new emissions performance trajectories mean property bond issuers have a simplified, straightforward means to assess the performance of buildings and portfolios against current and future expectations.”

“Asset managers and institutional investors will now have an evidence-based screening tool and green assurance mechanism to help guide property investment decisions. Release of these emissions performance trajectories should spur green property development in the commercial heart of major US cities.”

John Dulac, Buildings Sector Lead – Energy Technology and Policy, International Energy Agency (IEA):

“The global buildings sector accounts for more than a third of final energy consumption and ultimately, one-third of global energy-related CO2 emissions.”

“A concerted global effort towards energy efficiency in buildings is critical. Straightforward building energy and emissions performance targets are an important step toward limiting average global temperature rise to 2°C or below.”