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Tipping point for low-carbon buildings demand in sight, report says

(Reuters, 19 Mar 2024) Demand for environmentally friendly buildings is set to increase strongly over the next two years as companies with emissions reduction commitments see their leases come up for renewal and seek a greener alternative, real estate company JLL said.

Why is this important?

As more companies commit to reach net-zero emissions by 2050, most will be looking to cut those tied to their offices and factories, yet demand for low carbon buildings is set to outstrip supply.

Key quotes

"Time is of the essence for the real estate industry," Guy Grainger, JLL's Global Head of Sustainability Services and ESG, said. "We are in a new world where inaction over decarbonisation will see investments fall into economic obsolescence in the coming years. While for real estate tenants, this growing need to show progress against carbon commitments will lead to price friction and a race for low carbon buildings."

Context 

The number of companies committing to reach net-zero emissions across their business by 2050 has surged in recent years, with 7,600 companies worldwide signed up to the Science Based Targets Initiative.

External link

Reuters, 19 Mar 2024: Tipping point for low-carbon buildings demand in sight, report says