Achieving net zero emissions is critical for mitigating climate change and meeting the Paris Agreement’s goal to limit global warming to 1.5degC. Simply reducing CO2 emissions will not suffice to achieve this goal. Net zero emissions must continue to be maintained in order to stabilize the rate of climate change and halt its intensification. Since buildings account for 39% of all energy-related carbon emissions in the world, the real estate industry has a responsibility to take action and help achieve net zero emissions.
Data management plan reduces energy usage
The LREIT has made a bet on Jurong East, Singapore, by increasing its investment in the area. It has signed a deal to purchase a 68 percent stake in the Jem retail centre, which is connected to Jurong East MRT station. The Australian developer had previously held 31.8 percent of the project.
Holistic integrated design approach
One way to achieve net zero emissions for a new building or development is through the implementation of a holistic integrated design approach. This involves incorporating sustainability, energy efficiency, and water efficiency initiatives into one comprehensive project. During the design process, all stakeholders in a project meet and develop optimum solutions. This approach focuses on the entire life cycle of a building, including its operation, construction, and occupancy. It aims to produce a building that is energy efficient throughout its entire lifespan.
By implementing a holistic integrated design approach to the development process, a real estate developer can ensure a net zero carbon building for the long-term. The approach involves utilizing smart technologies to increase the energy efficiency of existing buildings, implementing a low-carbon investment roadmap, and educating building users to adopt a more eco-conscious mindset.
Buildings powered by renewable energy sources
When it comes to sustainable design, net zero is the hottest trend. This technology helps owners address investor concerns about climate risks such as air pollution and health issues. It also lowers energy bills for tenants. As such, it is the next big branding opportunity for developers.
As the global demand for energy has reached crisis levels, building energy efficiency is critical. Buildings produce approximately 40% of the planet’s CO2 emissions. Of those emissions, 75% are generated by building systems, and 25 percent are generated by materials, construction, and fit-out. But there are ways to reduce energy consumption without cutting down on comfort and design.
For example, one Texas-based real estate developer is developing net-zero industrial buildings. It aims to achieve 100% carbon-free status by 2040 and has four-hundred buildings under its goal. In addition to green energy sources, it is using well-insulated buildings.
Moreover, building net-zero emissions can serve as a future-proofing strategy for commercial properties. This can help companies protect themselves from the upcoming shocks of climate change, scarce fossil fuels, and policy changes. Besides, net-zero buildings also save their tenants’ money by lowering their energy bills.
Among the other projects in Singapore, one notable project is the College of Design and Engineering. This building is part of the National University of Singapore and will provide more than 45,000 square meters of space. A solar array on the roof of the building is also part of the project.
For buildings to be carbon-neutral, they should be verified by an independent third party. This can be achieved through asset-level certification or energy-use audits. Moreover, they must display leadership in the field of sustainability by engaging clients and their supply chains.
The next challenge for a developer is to reduce their energy consumption to net zero. Currently, one-third of the world’s energy is consumed by buildings. This means that buildings must reduce their energy consumption by 45% by 2030. To achieve that goal, the energy consumed per square meter must be 45% lower in 2030 than it was in 2020.
Impact on property values
Helping Jurong East real estate developer achieve net zero emission status has several benefits for both the developer and the property owners. It enables the developer to improve the overall resilience of the property and mitigate risks posed by climate change, including the cost of insurance and repair. It is also an attractive selling point for potential tenants.
Getting a building certified as green can be a significant investment in the future. New green regulations are making it easier for developers to adopt green technologies and practices. As a result, the government is encouraging more developers to adopt these practices and the pressure for sustainability is increasing. Additionally, property owners who do not meet these standards will experience difficulties in financing their projects in the future, as lenders may favour greener assets.
The real estate sector is a major contributor to global carbon emissions. The world’s buildings account for 40% of total CO2 emissions, making them critical to meeting the goals of the Paris Agreement. In recent years, many major companies have pledged to achieve a net zero emissions status by 2040. CBRE Group, one of the world’s biggest real estate developers, has joined the Climate Pledge, committing to become carbon neutral by 2040.
Achieving net zero emissions is a big opportunity for real estate. Since it contributes 40% of global CO2 emissions, the real estate sector is an ideal candidate to achieve this goal. Getting to net zero emissions requires wide-reaching sector-wide changes. In addition to helping the environment, helping a developer achieve net zero emissions improves the resilience of the property and makes the development more attractive to buyers.