When combined with additional policies such as tax incentives, loan guarantees or credit enhancements, the authors said, the information generated by such a reporting and rating system can help would-be investors make better-informed decisions to invest in energy efficiency projects.
The report, entitled, “A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate,” also describes the critical role that banks, insurance companies, institutional investors, utilities, energy service companies and real estate holders need to play in unlocking the potential of the retrofit market, which has been estimated at $ 400 billion (€282.3 billion) in the US alone.
“Government and corporate leaders around the world have a shared interest in enhancing energy efficiency in commercial buildings,” wrote, Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle and Chair of the World Economic Forum Retrofit Finance & Investing Project, in the report’s forward.
“For national and city governments, reducing energy means reducing carbon dioxide emissions and easing the strain on power plants. For businesses, conservation saves money in the short term and helps ensure energy security over the long term, Dyer said.
The Carbon Disclosure Project’s recent Global Report on C40 Cities noted that 43 percent of cities are already dealing with the effects of climate change and 79 percent report that climate change could hinder the ability of businesses to operate in their cities.
“Any successful approach to combating climate change must include commercial buildings, which are responsible for approximately 30 percent of greenhouse gas emissions worldwide and, in some countries, 70 percent of electrical consumption” Dyer wrote.
“Despite the confluence of public and business interest, however, retrofits are not occurring on the scale warranted by the urgency of the need. Several complex financial and logistical issues must be addressed through effective public-private collaboration and innovative thinking,” he added.
Among the six countries the report looks at in-depth, Australia was found to have the most mature retrofit market as a result of a long-standing reporting and rating system, coupled with additional government-led action, including tax deductions and a third party institution to take on demonstration projects.
Other markets examined included China, Japan, the US, the United Kingdom and Germany.
In total, the WEF said, over 100 interviews with experts, government leaders and business leaders from a cross-section of industries in these countries reinforced the findings and yielded 20 practical, action-oriented recommendations for the public and private sector to undertake immediately.
“This report offers a clear set of actions for policy-makers and industry, starting now, making the low-carbon economy a reality for all our futures,” said Chris Luebkeman, Director, Global Foresight and Innovation, Arup Group.
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