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Science-based decarbonising of the EU commercial real estate sector

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The document starts with a brief section listing the key outcomes of the Carbon Risk Real Estate Monitor (H2020 CRREM project).

 

Sections A provides an introduction to the CRREM project and background information on ‘stranding risk’. Section B describes global and EU policies on climate change mitigation as well as international standards on the assessment of greenhouse gases.

 

Section C explains how property specific targets according to necessary greenhouse gas reductions can be derived from global climate targets and international commitments.

 

Finally, Section D focusses on greenhouse gases in the built environment, their assessment and strategies to manage and reduce resulting risks on a property and corporate level.

 

In detail:

 

-SECTION A “REDUCING CARBON RISK IN THE REAL ESTATE SECTOR”, defines the concept of ‘stranding risk’ as well as CRREM’s main output: a toolkit to assess the risk of assets becoming ‘stranded’. The toolkit will be able to model the future evolution of the carbon and economic performance of portfolios following global warming scenarios. It will also help users to assess their assets, plan the improvement actions required to mitigate their impact towards climate change and adapt them to future climatic conditions.

 

-SECTION B “GLOBAL AND EU POLICY. CARBON REPORTING” is been conceived as a reference section, the content of this section ensures that all readers are familiar with current carbon policies and accounting protocols. Detailed descriptions of past and current policies on climate change is included, focusing on EU policy and its implications for the Real Estate sector. Section B also incorporates a detailed description of the Greenhouse Gas Protocol, used by CRREM to account carbon emissions.

 

-SECTION C “DOWNSCALING CARBON BUDGETS AND SETTING SCIENCE-BASED DECARBONISATION TARGETS” calculates the carbon budget that the real estate sector can emit up to 2050 to comply with EU’s international commitments. Details on the downscaling process – distribution of carbon reduction responsibilities – per county and sector are also provided, including decarbonisation pathways and carbon reduction targets.

 

-SECTION D “CORPORATE MANAGEMENT OF STRANDING RISK” identifies all carbon emission sources within the non-domestic building stock and describes the available methods to classify them depending on different reporting perspectives. It also defines the current baseline of the real estate sector, both on corporate awareness of stranding risk and the characteristics of the EU non-domestic building stock, and the available measures to reduce carbon emissions and risk.