Post on 17-Jul-2019
CRREM | Carbon Risk Real Estate Monitor
This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Carbon accounting and reporting
Embodied carbon
Investor/Tenant/Occupancy
BUILDINGS and
CLIMATE PROTECTION
Strategic options(Sell, Hold, Retrofit –
Timing)
More than saving energyCarbon pricing
Change of emissions factors, heating/cooling load, prices
Scope1,2,3
Regulated vs. unregulated emissions
Liability
GHG savings
Carbon budgetdownscaling
Profitability/Anyway-costs
Predictability/Reliability of regulation
ENERGY AND CARBON
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
DOWNSIDE RISKS OF CLIMATE CHANGE
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Project title: CRREM: Carbon Risk Real Estate Monitor - Framework for science based decarbonisation pathways, toolkit to identify stranded assets and push sustainable investments
Duration: February 2018 – January 2021
Funding: EU H2020 framework programme
General objectives:
• Downscaling & transparency: Breaking down global GHG emissions budget by sector, company and property level for more transparency and capacity building
• Strategic implication of “Stranded assets”: Defining areas for improvement and strategic options
• Framework, toolkits & methods: Making decarbonisation in the commercial real estate sector measurable
PROJECT SUMMARY
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Partnership:
IIÖ Institut für Immobilienökonomie Coordinator | Austria
University of Ulster| UK
GRESB
University of Alicante | Spain
TiasNimbas Business SchoolTilburg University | Netherlands
CRREM PROJECT CONSORTIUM
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
European Investor Committee: Industry bodies and academics
EUROPEAN INVESTOR COMMITTEE
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
European Investor Committee: Institutional investors & corporate partners
EUROPEAN INVESTOR COMMITTEE
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
Concept ‚Stranded Asset‘
Key indicator: GHG intensity of building (Emissions per floor area [kgCO2e/m²/a])
Country and sector-specific target path
Consideration of effects of changing heating and cooling loads and electric grid decarbonisation
Stranding assets do not meet decarbonisation targets and face potential write-downs
STRANDED ASSETS
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Concept ‚Stranded Asset‘
Key indicator: GHG intensity of building (Emissions per floor area [kgCO2e/m²/a])
Country and sector-specific target path
Consideration of effects of changing heating and cooling loads and electric grid decarbonisation
Stranding assets do not meet decarbonisation targets and face potential write-downs
Sour
ce: S
pino
ni e
t al.
(201
8), o
wn
calc
ulat
ion
and
pres
enta
tion.
STRANDED ASSETS
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: GHG Protocol, 2013.
Carbon Accounting and reporting
CRREM alignment to GHG Protocol:Standards for assessment, accounting and reporting of GHG emissions (World Resources Institute WRI & World Business Council for Sustainable Development WBCSD)
Accounting: Engery consumption (fuels, electricity), conversion to GHG with emissions factors. Challenge: lack of tenant data (esp. electricity consumption)Reporting: Emission scopes 1, 2, 3S1: Direct emissions from burning fuels or leakagesS2: Indirect emissions from energy consumptionS3: Indirect emissions from upstream and downstream processes
CARBON ACCOUNTING AND REPORTING
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
CRREM tool
Database: GHG reduction targets, emission factors, weather normalisation, energy prices, carbon price, HDD/CDD, abatement costs, grid decarbonisation…
User input:Property characteristics: Location, year of construction, energetic characteristics, occupancy, energy consumptionUser assumptions: Discounting, carbon price, energy prices, abatement costs, own…
Result: ‚Stranding Diagramm‘, Stranding Risk, costs of retrofits necessary to meet targets, carbon costs…
Source: CRREM
CRREM TOOL
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 1) Asset level input
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 2) Results – Carbon performance and targets on asset and portfolio level
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 2) Results - Define scenarios and evaluate their impact
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 2) Results - Compare your assets
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 2) Results - Portfolio overview
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 2) Results - Portfolio overview
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%20
1920
2020
2120
2220
2320
2420
2520
2620
2720
2820
2920
3020
3120
3220
3320
3420
3520
3620
3720
3820
3920
4020
4120
4220
4320
4420
4520
4620
4720
4820
4920
50
Share of stranded assets
Not strandedStranded
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: CRREM
CRREM TOOL
CRREM Tool: 3) Mitigation measures
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
GHG cum [kgCO2e]
Year2050Retrofit
Embodiedcarbon
No Retrofit
Ecologicalbreakeven
point
Retrofitcosts
No Retrofit
Economicbreakeven
point
Energy costscum [€]
Cum
ulat
ive
GH
G e
mis
sion
s in
kgCO
2e
Cum
ulat
ive
cost
s in
€
2018
Assessment of energetic retrofit measures
Economical: Annual energy cost savings vs. Investment costs: Assessment of net present value of energetic retrofit measure
Ecological: Annual GHG emission savings vs. embodied carbon Supplementing the economic break-even point with an ecological oneEmbodied carbon of retrofit measures is not included in corporate reporting so far
ECONOMIC BREAK-EVEN
Source: CRREM
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Source: Own calculations; IEA, 2017; Rockström et al.; 2017; UN DESA, 2017; PBL, 2018
Derivation of country and sector-specific GHG reduction targets
Global GHG budget and emissions pathway (consistent with a certain amount of global warming)
EU emission pathway (convergence of per capita emissions until 2050)
EU commercial real estate (CRE) sector
Country-specific targets (convergence of GHG intensity)
Sector-specific targets for each country: Intrinsic differences of GHG intensity in CRE subsectors (office, retail etc.)
DOWNSCALING OF GHG-TARGETS
Interim downscaling step: EU emission pathway
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Derivation of country and sector-specific GHG reduction targets
Global GHG budget and emissions pathway (consistent with a certain amount of global warming)
EU emission pathway (convergence of per capita emissions until 2050)
EU commercial real estate (CRE) sector
Country-specific targets (convergence of GHG intensity)
Sector-specific targets for each country: Intrinsic differences of GHG intensity in CRE subsectors (office, retail etc.)
Source: Own calculations; IEA, 2017; Rockström et al.; 2017; UN DESA, 2017; PBL, 2018
DOWNSCALING OF GHG-TARGETS
GH
G in
tens
ity [k
gCO
2e/m
²/a]
GH
G in
tens
ity [k
gCO
2e/m
²/a]
Interim downscaling step: Country-specific GHG intensity targets (1.5°C target)
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
Derivation of country and sector-specific GHG reduction targets
Global GHG budget and emissions pathway (consistent with a certain amount of global warming)
EU emission pathway (convergence of per capita emissions until 2050)
EU commercial real estate (CRE) sector
Country-specific targets (convergence of GHG intensity)
Sector-specific targets for each country: Intrinsic differences of GHG intensity in CRE subsectors (office, retail etc.)
Sector-specific GHG intensity targets: Germany (1.5°C target)
DOWNSCALING OF GHG-TARGETS
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© CRREM 2019
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Summary PresentationThis project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 785058
ESD – ‚Effort Sharing Desicion‘
Objective: Compliance with EU-INDCNon-ETS sectors: Agriculture, Buildings, Transport, (non-ETS)Industry, Waste
Only direct emissions (= Scope 1): Derivation of Scope 2 reduction targets from ETS-targets
EU-wide GHG reduction targets:• -10% until 2020 vs. 2005• -30% until 2030 vs. 2005
Country-specific GHG reduction targets (GDP capacity to investment in abatement measures)CRREM: GHG intensity targets on property level based on ESD-targets
EFFORT SHARING DECISION
EU and country level ESD GHG emission reduction targets
Source: European commission; own presentation
785058 — CREEM — H2020-EE-2016-2017/H2020-EE-2017-CSA-PPI
24. Sitzung des DGNB Immobilienbeirats
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Date: 10th October 2018
CRREM | CARBON RISK REAL ESTATE MONITOR
STRANDING RISKS & CARBON
Science-based decarbonising of the EU commercial real estate sector
Study:
PUBLIC REPORT
785058 — CREEM — H2020-EE-2016-2017/H2020-EE-2017-CSA-PPI
24. Sitzung des DGNB Immobilienbeirats
Page 25
Date: 10th October 2018
CRREM | CARBON RISK REAL ESTATE MONITOR
CRREM Project homepage: www.crrem.eu
PROJECT HOMEPAGE
Institut für Immobilienökonomie GmbHJosef-Steinbacher-Straße 1
A - 6300 WörglThis project has received funding from the
European Union’s Horizon 2020 research and innovation programme
under grant agreement no. 785058
Dr. Jens Hirsch
jens.hirsch@iioe.at
+43 (5332) 239 26
Institut für Immobilienökonomie
Josef-Steinbacher-Strasse 1
A-6300 WörglContact: