New study by CRREM (‘Carbon Risk Real Estate Monitor’) shows how the European commercial real estate industry needs to decarbonise by providing a clear roadmap of science-based greenhouse gas emissions targets aligned with the Paris Agreement to keep global warming well below 2 degrees.
CRREM defines science-based decarbonization targets and pathways specifically for the commercial real estate industry. Targets are consistent with the EU commitment to limit global warming to 1.5°C or 2°C but for the first time, broken down per country and by eight property types.
- Current national climate pledges (NDCs) are not enough to meet the Paris goals and could lead to a 2.7 – 3.0°C global warming. More ambitious climate policies are needed and likely to come into force in the future.
- CRREM emission targets and pathways for individual buildings and portfolios are derived by downscaling the remaining 1.5°/2°C consistent global carbon budget to the EU commercial real estate sector, individual countries and subsectors, for example, office or hotel.
- European commercial properties will need to reduce their carbon emissions by more than 80% until 2050.
- The EU commercial real estate sector is 14 years behind schedule: At the current rate of
emissions - The pathways and targets provide benchmarking roadmaps for individual properties, enabling investors to assess the ‘stranding risk’ of their portfolio and pro-actively address the
decarbonisation
