Seven prominent industry associations have come together to accelerate tackling carbon emissions through carbon pricing

Seven leading industry associations have announced a new taskforce to develop a comprehensive carbon pricing strategy for the real estate sector that takes a value chain perspective and enables pricing to be incorporated into investment decision making and accelerate its adoption.

Initially developed as part of the C Change programme, which was set up by ULI (the Urban Land Institute) to mobilise the industry to accelerate the decarbonisation of the built environment across Europe, the carbon pricing taskforce is being planned with professional membership organisations including: EPRA (the European Public Real Estate Association), GREEN (Global Real Estate Engagement Network), INREV (the European Association for Investors in Non-Listed Real Estate Vehicles), IIGCC (the Institutional Investors Group on Climate Change), RICS (the Royal Institution of Chartered Surveyors), and WBCSD (the World Business Council for Sustainable Development).

Lisette van Doorn, CEO, ULI Europe, comments, “Real estate is the second-largest contributor of carbon emissions globally, and so industry wide collaboration is essential for us to jointly develop standards and find solutions we need to tackle climate change. I am so pleased that we are partnering with so many prestigious and influential membership bodies operating across real estate and investment in Europe, and I look forward to working closely with them as we develop the programme.”

“While an important tool to help build the business case for low carbon solutions, a recent ULI C Change survey demonstrated that internal carbon pricing is still a ‘minority activity’ in the built environment. Lack of knowledge and consistent data, including financial and educational, were identified as the main barriers to implementation. And that’s why education will play an evenly important role in this programme as the co-creation of a strategy.”

As part of the carbon pricing strategy programme, a series of workshops will be organised in May aimed at understanding and implementing internal carbon pricing. The programme will comprise two streams, one aimed at experts and those already implementing carbon pricing, and a workstream designed to educate and upskill practitioners including developers, owners and managers who have yet to implement an internal carbon price and are keen to learn more and collaborate.

Hassan Sabir, Finance & ESG Director, EPRA, said, “Across the industry we all need to collectively take responsibility for the impact the built environment has on our planet, and coordinate action. Collaborating with all actors across the entire value chain of the real estate industry to introduce a carbon pricing as a mechanism for lowering emissions of buildings may prove to be one of our biggest opportunities. Through which, we could collectively make a real difference in the transition towards a low carbon economy and help create the sustainable future we all urgently need.”

Vincent van Bijleveld, Director, GREEN, comment, “The built environment is lagging in integrating carbon pricing in financial decision-making, while taking this into account is simply good business risk management given the long-term nature of real estate and the likelihood of future regulatory changes. This initiative aims to ensure that carbon pricing is firmly placed as an actionable item on our industry’s collective agenda.”

Lonneke Löwik, CEO, INREV, comments, “As a collective initiative, the new taskforce is a potential game-changer for the real estate industry. It aims to create a level playing field and enable informed decision making in pursuit of both environmental and investment goals. It also reflects INREV’s commitment to broadening market participants’ knowledge and understanding of critical issues – specifically in this case, how best to implement effective carbon pricing.”

Hugh Garnett, Investor Practices Senior Programme Manager – Real Assets, IIGCC, said, “IIGCC is pleased to contribute to this important collaborative initiative looking to address a complex gap in the market and promote adoption of carbon pricing for real estate investors. The development of an industry wide approach to carbon pricing will assist investors to manage climate-related risk and drive investment into sustainable buildings to decarbonise the real estate sector.”

Justin Young, Chief Executive, RICS, said, ‘“RICS is delighted to be part of this initiative; reducing emissions across the built environment is essential if we are going to tackle climate change. RICS has a particular focus on providing practical support to the built environment sector. Creating a carbon pricing framework for the real estate industry is another vital tool to ensure investment is being driven into sustainable buildings.”

Roland Hunziker, Director, Built Environment, WBCSD, comments, “Sustainable transition in the built environment requires mobilising financial resources to close the investment gap the sector faces. We must halve emissions by 2030 and reach net-zero by 2050. Carbon pricing can be an effective tool to help achieve these goals, and this important initiative, aligned with the Market Transformation Action Agenda, will ensure a consistent and coordinated approach across the entire built environment value chain.”

The C Change Carbon Pricing workshops will begin during the week commencing 20 May and there will be an additional session organised for participants at the ULI Europe Conference in Milan (10-13 June). The aim is to then preview the findings of the workshops to members at the C Change Summit in the Autumn.

Contact [email protected] if you’re interested in supporting the development of the C Change Carbon Pricing Strategy or would like to find out more.

The C Change programme is sponsored by the following organisations: Catella, Hines, IPUT Real Estate, Longevity Partners, Patrizia, PIMCO, Redevco, Savills Investment Management, Schroders Capital, Sonae Sierra, and Urban Partners.

The C Change programme is supported by 103 Ventures.

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For further information, contact [email protected]

Notes to editors

– The Urban Land Institute: The Urban Land Institute is a non-profit education and research institute supported by its members. Its mission is to shape the future of the built environment for transformative impact in communities worldwide. Established in 1936, the institute has over 48,000 members worldwide representing all aspects of land use and development disciplines. In Europe ULI has almost 5,500 members across 15 National Council country networks.

– EPRA: The European Public Real Estate Association is the voice of the publicly traded European real estate sector. Founded in 1999, EPRA is a not-for-profit association registered in Belgium. With more than 290 members, covering the whole spectrum of the listed real estate industry (companies, investors and their stakeholders), EPRA represents over EUR 840 billion of real estate assets and 95% of the market capitalisation of the FTSE EPRA Nareit Europe Index. EPRA’s mission is to promote, develop and represent the European public real estate sector.

– GREEN: GREEN (Global Real Estate Engagement Network) is a non-profit engagement network of global institutional shareholders in the listed and non-listed real estate sector like ABP/APG, CenterSquare, Schroders, MN, Wellington, Bouwinvest, Neuberger Berman, Robeco and many more. These shareholders, both asset owners and indirect real estate managers, aim to steer real estate companies to improve their sustainability performance and reduce their exposure to financial and non-financial climate risks. GREEN currently represents assets under management of approximately € 3 trillion.

– INREV: INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for institutional investors and other participants in the growing non-listed real estate vehicles sector.
INREV members deliver €385 billion of stimulus to the real economy of Europe.

INREV has 496 members which include 129 of the largest institutional investors as well as 40 of the 50 largest real estate investment managers, plus banks and advisors across Europe and elsewhere.

The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.

– IIGCC: IIGCC brings the investment community together to work towards a net zero and climate resilient future. We create change the world needs by unlocking investor action on climate change.

Our work supports investors in generating returns for clients and beneficiaries, which in turn provides financial wellbeing for future generations. We work with our members to address climate risk and ensure they are well positioned to make the most of investment opportunities offered by climate mitigation and adaptation efforts, ensuring that their investments contribute towards a better world for us all to live in.

Our team supports investors to create practical solutions that can make a real difference in tackling climate change – providing guidance and support on investment practices, policies and corporate behaviours that have real impact and deliver change that the world needs. For more information visit www.iigcc.org and @iigccnews

– RICS: We are the Royal Institution of Chartered Surveyors (RICS), a leading professional body working in the public interest to advance knowledge, uphold standards, and inspire current and future professionals. Our members help to create and protect built and natural environments that are sustainable, resilient and inclusive for all.

– WBCSD: The World Business Council for Sustainable Development (WBCSD) is a global community of over 225 of the world’s leading businesses driving systems transformation for a better world in which 9+ billion people can live well, within planetary boundaries, by mid-century. Together, we transform the systems we work in to limit the impact of the climate crisis, restore nature and tackle inequality.

We accelerate value chain transformation across key sectors and reshape the financial system to reward sustainable leadership and action through a lower cost of capital. Through the exchange of best practices, improving performance, accessing education, forming partnerships, and shaping the policy agenda, we drive progress in businesses and sharpen the accountability of their performance.

– C Change: C Change is a ULI-led programme to mobilise the European real estate industry to decarbonise. We’re a movement empowering everyone to work together for a sustainable future. We connect the brightest minds from across the value chain. We challenge barriers, share expertise, and champion innovation to move swiftly to accelerate solutions that will transform our industry and protect our planet. C Change means real change.

C Change was formed in late 2021 by a group of leading real estate players that was united in its aim to focus on collaboration to ensure companies large and small have access to practical solutions and education on decarbonisation.