A groundbreaking collaboration has been established between the Building Research Establishment (BRE), the US Green Building Council, and the Green Building Council of Australia. This alliance is set to create a series of practical guides aimed at investors, developers, property owners, and governments on how to finance sustainable buildings.
These buildings will be certified according to the world’s leading sustainability standards: BREEAM, LEED, and Green Star. With over 640,000 buildings already certified under these standards globally, and many more aiming for certification, the need for clear financial guidance is more crucial than ever.
Peter Templeton, CEO of the US Green Building Council, emphasized the transformative potential of green buildings in achieving global decarbonization goals while also promoting human health, climate resilience, and social equity. He pointed out the importance of channeling more capital into projects that deliver these benefits to broaden their impact and scale.
The trio plans to release their first guide in June, coinciding with London Climate Action Week. This guide will explore the array of sustainable finance instruments available in the real estate sector, such as green loans and bonds, and will suggest ways to expand these financial solutions.
Additionally, it will offer advice to policymakers on integrating these financial tools into sustainable finance taxonomies, with the UK expected to unveil its own taxonomy later this year after several postponements.
In a related move, the UK Green Building Council (UKGBC) has introduced new guidelines for the measurement and reporting of embodied carbon emissions in buildings. Recognizing that operational emissions contribute to 28% of the built environment sector’s overall greenhouse gas emissions, with the remaining 11% coming from embodied carbon emissions, the UKGBC is urging the sector to adopt net-zero targets that encompass both operational and embodied emissions.
The newly published guidance provides updated recommendations for various stakeholders in the construction process, aiming to standardize embodied carbon reporting and help reduce emissions throughout a building’s lifecycle.
UKGBC’s head of climate action, Yetunde Abdul, highlighted the significance of Scope 3 emissions, particularly those stemming from the construction sector, and the necessity for consistent and comprehensive reporting to bridge the gap between current practices and the pursuit of transparency and clarity in embodied carbon reporting. This initiative represents a significant step towards a more sustainable and environmentally responsible construction industry.
