Carbon footprint concerns shake real estate market, investors slash exposure
![Carbon footprint concerns shake real estate market, investors slash exposure](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/02/amazing-aerial-shot-singapore-cityscape-with-lots-skyscrapers.jpg)
Real estate firms are seeing a significant drop in property values because European rules push investors and bankers to avoid buildings with high carbon emissions.
This could leave property owners with devalued assets due to climate regulations.
“The industry at the moment is very, very aware of stranded assets,” said Neil Menzies, director of sustainability at Hibernia Real Estate Group Ltd., a Dublin-based firm owned by Brookfield Asset Management.
The risk of assets being stranded is “getting greater because it’s now legislated as well.”
Commercial real estate values have fallen due to increased interest rates and reduced occupancy rates, disrupting the financial strategies of many debt-dependent businesses in the sector.
Also read: Sundaram Alternates Assets plans to raise $135 million for green real estate projects in India
The European Central Bank and Federal Reserve watch lenders closely to prevent potential losses.
Claire Stephens, research director of the Smart Buildings unit at research and advisory firm Verdantix, said, “With North America traditionally behind other regions in building decarbonization and sustainability, new climate and sustainability disclosure regulations represent a major risk for the real estate sector.”
![](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 […]