CBRE Investment Management (CBRE IM) has released a new report examining the role of credit in upgrading European commercial real estate to meet future ESG standards.
In the United Kingdom, as of 2023, it will be illegal to let a building with an Environmental Performance Certificate (EPC) rating below E; from 2030, it is proposed that this also will be the case for buildings rated below B, with an interim target of C by 2027. In Europe, EPC regimes vary, but corporate occupiers are driving demand for assets that perform to high EPC standards. CBRE IM’s paper looks at how the green transition will be financed noting that:
60 percent to 75 percent of nonresidential real estate stock across Europe is in need of refurbishment to comply with an EPC B standard.
The stock of debt this represents is an estimated €720 billion to €900 billion ($759 billion to $948 billion), of which approximately half (€360 billion to €450 billion/$379 billion to $474 b
