NORTHAMPTON, MA / ACCESSWIRE / May 3, 2024 / CBRE Group, Inc.
CBRE
Overview
The European Union (EU) has set a strategic agenda to tackle climate change. To improve the energy performance of buildings, the EU has established a legislative framework that includes the Energy Performance of Buildings Directive and the Energy Efficiency Directive. These aim to help achieve an energy efficient and decarbonised building stock by 2050, supported by the gradual introduction of Minimum Energy Performance Standards (MEPS).
CBRE has conducted an analysis to understand how energy efficiency upgrades in multifamily housing (MFH) can impact the market value of an asset.
Key findings
- Although asset-stranding is not a new phenomenon in the real estate industry, the scale of stranding emanating from MEPS-related transition risk could be quite substantial.
- In the case of buildings used as collateral, the transition risk related to MEPS could have serious implications for the financial industry. With financial institutions implementing strategy to reduce their financed portfolio’s carbon footprint, they will become increasingly selective when agreeing refinancing for assets that need upgrading.
- Compression of cap rates for the best performing stock will increasingly become visible across the region. This is already recognised in several European countries, including The Netherlands and Germany.
- The ability to demonstrate that energy efficiency is capitalised into rents is the first important step for property owners and investors to have a financial incentive for upgrading their assets.
- The results of our analysis confirmed that energy efficiency features, as measured by the EPC rating, have an impact on MFH rental levels. However, the rental price differences and associated benefits need to be compared with the costs of energy retrofits, as the premium needs to be high enough to compensate for the retrofit.
- Our analysis in the Danish market has shown that it is difficult to build a business case around moving a MFH asset’s energy profile from EPC B to EPC A. On the other hand, moving a building from EPC C to EPC B results in 9% asset value uplift.
- 56% Of European residential stock has an EPC rating lower than D
- 9% Asset value increase when upgrading a building from EPC rating of C to B
Get in touch with our team for the complete report and discover how you can enhance the value of your assets with energy efficiency initiatives.
Courtesy CBRE
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Contact Info:
Spokesperson: CBRE Group, Inc.
Website: https://www.3blmedia.com/profiles/cbre-group-inc
Email: [email protected]
SOURCE: CBRE Group, Inc.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | Target 7.3: By 2030, double the global rate of improvement in energy efficiency | No specific indicators mentioned in the article |
| SDG 11: Sustainable Cities and Communities | Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management | No specific indicators mentioned in the article |
| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources | No specific indicators mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
The issues highlighted in the article are connected to these SDGs as they discuss the European Union’s strategic agenda to tackle climate change, improve energy performance in buildings, and achieve an energy-efficient and decarbonized building stock.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 7.3: By 2030, double the global rate of improvement in energy efficiency
- Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
- Target 13.2: Integrate climate change measures into national policies, strategies, and planning
- Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources
The article indirectly addresses these targets by discussing the EU’s legislative framework and the need for energy efficiency upgrades in buildings to reduce carbon emissions and improve environmental impact.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets. The article provides general information about the need for energy efficiency upgrades and the potential impact on asset value, but it does not provide specific data or metrics to measure progress.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | Target 7.3: By 2030, double the global rate of improvement in energy efficiency | No specific indicators mentioned in the article |
| SDG 11: Sustainable Cities and Communities | Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management | No specific indicators mentioned in the article |
| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources | No specific indicators mentioned in the article |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: accesswire.com
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