Banks aim to cut carbon emissions in real estate portfolios, in line with EU guidelines 

As part of a growing array of Net-Zero regulations, the European Union passed its Energy Performance of Buildings Directive (EPBD). EPBD aims to achieve a fully decarbonized building stock by 2050. Major banks are starting to respond to these regulations. 

For instance, several banks are now applying new criteria to loans for commercial real estate, which will influence the sector’s access to financing. These criteria focus on buildings’ carbon emissions and the anticipated costs of necessary upgrades to comply with new environmental regulations.