Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
The Renaissance Tower, winner of the U.S. Green Building Council's LEED Platinum Certificate, in Istanbul, Turkey. Photo: Serhat Cagdas/Anadolu Agency/Getty Images
While countries like the U.S. and EU member states have to backpedal their heavy carbon emissions, emerging markets could still leapfrog the most carbon-intensive approaches to urbanization.
Why it matters: 60% of the world’s cities have yet to be built. Since buildings and building construction account for 36% of final global energy consumption and nearly 40% of total CO2 emissions, opting for green buildings in these new and more dense urban spaces would help meet global climate goals while sustaining economic growth.
How it works: Green buildings — from hospitals to hotels — have been shown to protect people and the environment while improving the bottom line. Increased resource efficiency means lower utility bills.
- The basic elements of green building — structural orientation, conservative use of glass, water-efficient toilets, rainwater harvesting systems — are well understood and widely available.
- Investors have been taking note of the business case: lower long-term operating and maintenance costs, decreased odds of becoming a stranded asset, and higher returns on investment due to lower sustainability risks. In emerging markets, green buildings represent a $24.7 trillion investment opportunity.
What's needed: Increasing both the supply of and demand for green buildings depends on several key factors:
- Communicating value with certification programs like LEED and IFC's Excellence in Design for Greater Efficiencies (EDGE)
- Identifying accessible and cost-effective designs with software (IFC's EDGE software is free, and there are many other digital solutions)
- Generating supportive policy frameworks (codes and incentives)
- Expanding access to financing with green bonds, mortgages, and property funds
Between the lines: Capturing data could prove vital as governments and policymakers experiment and test partnerships to fine-tune their approaches.
The bottom line: The private sector, governments and financial institutions will likely have to come together to adopt standards capable of transforming real estate, especially in the emerging markets where these improvements could have the greatest impact.
Alzbeta Klein is the director for climate business at the International Finance Corporation, a member of the World Bank Group.