New taskforce set to develop real estate carbon pricing strategy

Seven industry associations have established a new taskforce to develop a comprehensive carbon pricing strategy for the real estate sector. The carbon pricing taskforce brings together the Urban Land Institute, EPRA, Global Real Estate Engagement Network, INREV, the Institutional Investors Group on Climate Change, RICS, and the World Business Council for Sustainable Development. Together they will seek to develop a strategy which takes a value chain perspective to carbon pricing, enabling it to be incorporated more easily into investment decision-making. Lisette van Doorn, chief executive of ULI Europe, said: “Real estate is the second-largest contributor of carbon emissions globally, and so industry wide collaboration is essential for us to jointly develop standards and find solutions we need to tackle climate change.  “While an important tool to help build the business case for low carbon solutions, a recent ULI C Change survey demonstrated that internal carbon pricing is still a ‘minority activity’ in the built environment. Lack of knowledge and consistent data, including financial and educational, were identified as the main barriers to implementation. And that’s why education will play an important role in this programme as the co-creation of a strategy.” As part of the carbon pricing strategy programme, a series of workshops will be organised aimed at understanding and implementing internal carbon pricing. The programme will comprise two streams, one aimed at experts and those already implementing carbon pricing, and a workstream designed to educate and upskill practitioners including developers, owners and managers who have yet to implement an internal carbon price and are keen to learn more and collaborate. Vincent van Bijleveld, director at Global Real Estate Engagement Network, said: “The built environment is lagging in integrating carbon pricing in financial decision-making, while taking this into account is simply good business risk management given the long-term nature of real estate and the likelihood of future regulatory changes. This initiative aims to ensure that carbon pricing is firmly placed as an actionable item on our industry’s collective agenda.” Roland Hunziker, director, built environment at World Business Council for Sustainable Development, added: “Sustainable transition in the built environment requires mobilising financial resources to close the investment gap the sector faces. We must halve emissions by 2030 and reach net-zero by 2050. Carbon pricing can be an effective tool to help achieve these goals, and this important initiative, aligned with the Market Transformation Action Agenda, will ensure a consistent and coordinated approach across the entire built environment value chain.” Image © Jeon Sang-O/Pixabay