Real estate investors grapple with CO2 shock, turn to lawyers
![Real estate investors grapple with CO2 shock, turn to lawyers](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/13461.webp)
Real estate investors, already struggling with high interest rates, are now confronting the potential for substantial losses prompted by recent European regulations.
According to legal experts advising the industry, property owners throughout the region will be required to allocate substantial funds for renovations to ensure compliance with regulations to reduce carbon dioxide emissions and curb excessive energy consumption in buildings.
The situation “is causing huge problems,” said Rory Bennett, a managing associate at the real estate practice of Linklaters in London. Portfolios containing energy-inefficient buildings face “the task of expending a huge amount of capital to bring that up to scratch, together with refinancing or redeveloping at the highest interest rates we’ve seen in decades.”
This month, legislators in the European Union approved the Energy Performance of Buildings Directive. While implementation will occur gradually over a decade, property owners who fall significantly behind risk being burdened with assets that may become unsellable or unrentable.
The directive aims to compel property owners to undertake extensive renovations to enhance the environmental sustainability of buildings throughout Europe, thereby ensuring the bloc fulfils its commitments under the Paris Agreement.
Also read: EU Parliament passes law to make buildings energy-efficient
Presently, renovations in the region only result in a 1% reduction in annual energy consumption, as reported by the European Commission. To meet its climate objectives, the EU asserts that property owners must increase yearly spending on renovations by €275 billion ($300 billion).
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-at-4.33.30 PM-150x150.png)
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]