The real estate sector has recently been receiving significant attention with respect to climate change and sustainability efforts. Green bonds are one of these measures. These are a kind of fixed-income instrument that is particularly designated to raise funds for projects pertaining to climate and environment. Most of the developers around the world have started to consider green bonds that are linked to the sustainability of projects as they come with tax incentives to entice investors. Green bonds finance projects such as energy efficiency, pollution control & prevention, sustainable agriculture, renewable energy, clean transportation, and, not to mention, green buildings. Some of the notable green bonds issued by realty companies include Vasakronan and Unibail-Rodamco in Europe; Regency Centers and Vornado in the United States; and Stockland in Australia.
Constructions constitute a lion’s share as far as greenhouse emissions are concerned (estimated to be around 40%). So, it is imperative that we keep in mind how buildings draw their energy requirements in the challenge against changes in the climate. The transformation in the market to a more efficient, better sustainable real estate division will need a huge amount of capital, and green bonds have come to light as a potential and capable financial source. Thus, real estate finance is going green. The real estate precinct has been receiving significant attention pertaining to climate change and sustainability endeavours. Real estate is one of the sectors that have tremendous potential opportunities to challenge such environmental issues. Furthermore, it creates economic opportunities for investors and property owners.
