Financing for efficient buildings: Learning from G20 and GlobalABC

High-Level Roundtable at EE Global, Copenhagen, Denmark
EE Global Intensive Learning Session
UN City, Copenhagen, 21st May 2018, 14:30 to 16:00

The global real estate sector holds around 50% of stored wealth, uses around 40% of global energy and holds much of the untapped energy efficiency potential. Therefore, the efficiency and resilience of the global building stock is key to the realization of the clean energy transition, and to stimulate global sustainable growth. A large share of the global building stock is financed through the loan books of banks, and financial institutions play a key role in providing the capital to refurbish the existing building stock as well as supporting the large amount of new construction in emerging economies to become as efficient as global objectives under the Paris Agreement require. According to the Sustainable Finance report from the European High Level Expert Group, 75% of the energy efficiency investment gap to meet these goals can be found in the real estate sector.

Zero emissions, efficient and resilient buildings save energy, reduce emission and bring multiple benefits to building occupiers and the economy at large. However, financial institutions can only provide the capital and tailored financial products necessary to utilize this significant potential if policy-makers provide the appropriate political framework that will drive the recognition of energy efficiency in terms of returns (driven by rent, value and yield) and risk (in terms of improved credit taker quality, improved repayment capacity of mortgage takers, and better loan to value ratios).

The current evolution from real estate as a financial asset to real estate as a service provides the basis for enhanced recognition of the multiple benefits of energy efficiency by real estate markets. At this event, participants will discuss ways in which all actors can cooperate to bring the global real estate sector to zero emissions and make it efficient as well as resilient. To achieve this objective, a structured dialogue between financial institutions and policy-makers is required.

This meeting will contribute to this structured dialogue by bringing together financial institutions and policy-makers to discuss how zero emission, efficient and resilient buildings can be practically and financially soundly implemented. The political ambition of zero emissions buildings builds on the momentum generated by the Dec 2017 conference organised in Paris jointly by the European Commission, the Government of France, UNEP FI, the GABC, the IEA and IPEEC on “Energy Efficiency in Buildings: How to accelerate investments?” within the One Planet Summit. The meeting is jointly organised by UNEP FI, the Global Alliance for Buildings and Construction and the International Partnership for Energy Efficiency Cooperation.

To attend, please contact Martin Schoenberg, UNEP FI Energy Efficiency Project Coordinator, at martin.schoenberg (at) un.org