The UN Environment Programme Finance Initiative published in partnership with five international associations, a framework for action to implement the Paris agreement of the COP 21. It is intended for owners of real estate assets, investors in these assets and the related stocks and bonds.
The survey covers 32 unlisted investment funds managing € 90 billion of assets. The majority of the panel remains focused on the issue of energy. Only a minority considers systematically ESG (Environmental, Social and Governance) policies criteria, The margins of progress are important.
Approved by four international institutions, the report shows how to change the practices of property investors to take into account sustainable development: at corporate level (11 recommendations), at portfolio level (6 recommendations), at the building level (7 recommendations). See pages 91 and following.
What could be done to stimulate more and more effective investments? According to the authors, the answers are: strengthening the regulatory framework, improving access to financing, addressing market failures, strengthening the energy services market.
Eight very different cases studies in China, Japan, India, USA, Kenya, Germany, Estonia and New Zealand were analysed. Suggested recommendations concerned four types of barriers: Finance, Institutions and Stakeholders, Measures and Buildings, and Consumers and End-Users.
The authors linked the release of the European debt crisis and green growth. There is a link between carbon price, reform of funding system and crisis exit. In this context, they said Europe should play an important role in international environmental negotiations.