Portfolio Allocation

An Infrastructure Perspective to Achieving Decarbonization in Real Estate Webcast Replay

October 30, 2024 45 Minute Watch

Overhead of solar panels

This perspective is part of our Anchoring Your Portfolio with Real Assets series.

This webcast discusses the critical role of infrastructure in decarbonizing the real estate sector, which is responsible for nearly 40% of global emissions. Hosted by Mattias Lejeune, the panel includes experts from CBRE, who explore the regulatory frameworks, technologies and financial models driving decarbonization efforts.

In this webcast:

Mattias Lejeune introduces the urgency of reducing carbon footprints, noting that governments worldwide are enacting legislation to increase energy efficiency in buildings. The panel emphasizes the importance of collaboration between real estate and private infrastructure to identify and implement decarbonization solutions, such as renewable energy technologies, energy-efficient upgrades and carbon audits.

Robbie Epsom discusses the volume of greenhouse gas emissions linked to buildings, making this sector a key focus for decarbonization efforts. He discusses the regulatory landscape, identifying key frameworks such as the Sustainable Finance Disclosure Regulation (SFDR) and the EU taxonomy, which are shaping how real estate operates. These regulations not only push for more sustainable practices but also present investment opportunities through the creation of financial products that incorporate sustainability metrics.

Steffen Walvius explains the advisory role of CBRE in helping clients identify and prioritize decarbonization measures. The process begins with portfolio screening to identify high-risk assets, followed by detailed audits. These audits help determine the necessary capital expenditures to meet sustainability criteria. Common low-hanging fruits include upgrading building management systems and optimizing energy usage, which can significantly reduce emissions.

Noi Spyratos shares insights from his work with companies focused on installing solar panels for commercial and industrial clients. He emphasizes the importance of predictable revenue through long-term power purchase agreements (PPAs) that mitigate risks associated with energy pricing, as well as scalability that aligns with the rising demand for renewable energy solutions.

Kerron Lezama discusses investments in geothermal energy through a recent acquisition in the Nordics, highlighting the emerging potential of ground source heat pumps as a sustainable heating solution. He stresses the convergence of regulatory pressures and market demand for innovative energy solutions in the built environment.

Overall, the webcast illustrates the multifaceted approach required for decarbonizing real estate, emphasizing collaboration across sectors, regulatory support and innovative technologies as key drivers for change. The discussion reinforces the idea that integrated strategies will be essential in achieving long-term sustainability goals within the real estate and infrastructure sectors.