Climate Bonds Standard for London Low Carbon Buildings is Launched

The Climate Bond Standard allows for investors and governments to verify a property’s sustainability value. It therefore provides those investing with assurance of green investment.

It applies to commercial and residential buildings as well as upgrade projects. The bonds standard requires them to meet the existing green building standards and for commercial buildings, this extends to the ongoing performance too. In regards to carbon emissions, they need to be in the top 15% and/or will need to commit to cutting their emissions by at least 30%.

Joining the likes of Washington D.C., Sydney and the first city to have it – Perth, London’s launch of this certification will overcome the ambiguity surrounding what qualifies as green investment, which can lead to missed opportunities from both issuers and investors. A strong reputational advantage, flexible options for existing green portfolios/greening portfolios and allowing access to new investors, the announcement suggests a win-win for all stakeholders, including of course, the environment.

Green-Building

Chè Wall, Director at Flux and leading expert said buildings were the biggest opportunity for reducing city carbon impacts. “Greenhouse gas impacts of cities are enormous and 70 per cent of a typical large city has impact locked up in buildings. If we are to stand any credible chance of greenhouse gas abatement, we need to look to those buildings as probably our biggest opportunity.” Allowing for the property market to enable investment for greener buildings has it’s commercial and environmental gain.

The Low Impact Buildings Research Centre at Coventry University focuses on delivering solutions to close the design versus as-built performance gap found in the built environment. Low carbon buildings being a focus for them, their research looks into construction and operation to reflect the whole life implications of the dynamic nature of building performance, the effects of occupant responses and perceptions and the impact of future uncertainties.

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Ryan Walker