The cost of decarbonising the global real estate market is estimated to be some $18tn, according to new data from Cushman & Wakefield.
That figure is just $2tn short of the GDP of the United States and is almost nine times the GDP of the UK.
Cushman & Wakefield’s research analysed 1m assets totalling 6.6bn sq m across 143 countries and found that addressing decarbonisation would see the commercial real estate industry achieve 6.2 gigatons, or 75%, of carbon reduction annually.
“Not only is decarbonising existing real estate essential to addressing climate impact, it also offers an environmentally responsible way to reduce the cost of owning and managing commercial property,” said chief executive John Forrester. “As building regulations for energy consumption and emissions rightly become more stringent, needs to reduce or offset carbon emissions will increase.”
To help clients decarbonise, the agent has launched its own software – C&W Green Buildings – to identify custom decarbonisation, retrofitting and cost saving opportunities for real estate investors and owners.
Created with CFP Green Buildings, the tool filters 120 building characteristics to assess current carbon emissions and energy efficiency at a property. From country, climate and location to the cost of energy, materials, labour, local emission factors, carbon prices, building age and size, the tool uses the data reveal opportunities to reduce the environmental footprint of real estate portfolios.
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