This article is from the Australian Property Journal archive
A GLOBAL alliance of green building groups has launched a sustainable finance call to action to see the majority of buildings lifted to modern sustainability standards, with a new report released to unlock billions for decarbonising building at scale.
The initiative is led by the Green Building Council of Australia (GBCA), the UK’s Building Research Establishment (BRE), the Singapore Green Building Council (SGBC), the U.S. Green Building Council (USGBC) and Alliance HQE-GBC France.
With the report, Building Transition: How to Scale and Finance an Inclusive Transition for the Built Environment, targeting bringing the 75% of lower performing buildings up to the top performers in the market.
The call to action is looking to draw in capital to the untapped segment in order to see decarbonisation across the entire built environment rather than just top-end luxury developments, which already have access to green finance and resources.
“Bridging the gap between high-performing and underperforming buildings is essential to achieving our global decarbonization goals. This report underlines the importance of inclusive investment strategies that unlock capital for the majority of buildings, ensuring that no part of the built environment is left behind,” said Jane Goddard, deputy CEO of BRE.
“At BRE, we believe that scalable, context-specific solutions—backed by robust data, strong policies, and global standards—are key to transforming the built environment and meeting the urgent challenges of climate change.”
The gap in the industry is a major hurdle for emission reductions globally, with the built environment making up circa 37% of global emissions and 20% in Australia.
“Achieving deep decarbonisation across the building sector means leaving no stone unturned – from iconic CBD towers to suburban homes and everything in between,” said Davina Rooney, CEO at GBCA.
“We must ensure green finance is accessible to all, especially those properties yet to benefit from sustainable investment. This report lays out a clear path to bring sustainable finance into the hands of more building owners, empowering them to accelerate change to climate goals.”
The report made three key recommendations to address the major gap, starting with stronger policies and taxonomies that direct capital toward underperforming buildings.
This reform would include context-specific, performance-oriented criteria to fit to diverse building types.
The second recommendation would see decarbonisation transition defined to global common standards and metrics.
And finally, the alliance recommends incorporating adaption and resilience in real estate finance to accommodate both acute and chronic climate events.
“This resource illustrates methods to expedite the decarbonization of the entire building stock through more robust, customized policies, comprehensive international decarbonization standards, and sustainable financing mechanisms that are widely available to diverse building owners,” said Rachel Chermain, CEO at Alliance HQE-GBC France.
