PRI in Person 2015 kicks off Tuesday 8 September with over 1000 delegates from around the world.
Buildings account for approximately a third of the world’s energy consumption and global greenhouse gas (GHG) emissions. They are considered a high-impact sector for urgent mitigation action on climate change. Energy efficiency investments play a key role in this context. Today, energy efficiency investment clearly is the most cost-effective and economically beneficial solution to reduce the reliance and expenditure on energy, while also decarbonizing the energy system, especially in Europe. In fact, according to recent estimates from the International Energy Agency, 49% of the measures required to keep global temperatures below 2 degree Celsius, will need to be energy efficiency related. Energy efficiency also meets the EU’s climate and energy strategy and, importantly, provides attractive financial opportunities for real estate investors. Presently, however, there is largely insufficient public and private investment in energy efficiency in buildings, industry and SMEs. Overall, investment levels are eight times below the level what would be required to meet global emission reduction targets. Clearly, tackling this investment gap requires urgency and attention from all stakeholders.
Therefore, an Energy Efficiency Financial Institution Group (EEFIG), jointly convened by the European Commission and UNEP FI, was established in late 2013 to determine how to overcome the challenges to obtaining long-term financing for energy efficiency. The EEFIG report provides an insightful analysis of the most imminent challenges to energy efficiency in buildings and develops recommendations for policy makers and market participants, on a sector-by-sector level, on how to overcome these. The report can be downloaded here.
More recently, the G20 Energy Efficiency Finance Task Group which aims to promote energy efficiency finance ahead of the G20 Leaders’ Summit in November 2015 has come together to draw up a “G20 Energy Efficiency Investor Statement” which has been co-signed and endorsed by the UNEP FI and the PRI. PRI signatories can find this statement on the PRI Clearinghouse platform and are encouraged to lend their support. This statement aims to demonstrate to G20 leaders that the investment community is supportive of energy efficiency activities and its financing and, eventually, to encourage countries to increase their political engagement and support on this important topic. In parallel, the group also issued energy efficiency investment principles dedicated to countries as voluntary recommendations to help support the removal of barriers and create the momentum for enhanced policy support.
These two examples of collaboration between the policy and industry on tackling climate change and overcoming common barriers to energy efficiency investment and green building initiatives show how the policy side is increasingly working with (real estate) investors as key actors to collaboratively develop win-win solutions to these important challenges.
Therefore, an Energy Efficiency Financial Institution Group (EEFIG), jointly convened by the European Commission and UNEP FI, was established in late 2013 to determine how to overcome the challenges to obtaining long-term financing for energy efficiency. The EEFIG report provides an insightful analysis of the most imminent challenges to energy efficiency in buildings and develops recommendations for policy makers and market participants, on a sector-by-sector level, on how to overcome these. The report can be downloaded here.
More recently, the G20 Energy Efficiency Finance Task Group which aims to promote energy efficiency finance ahead of the G20 Leaders’ Summit in November 2015 has come together to draw up a “G20 Energy Efficiency Investor Statement” which has been co-signed and endorsed by the UNEP FI and the PRI. PRI signatories can find this statement on the PRI Clearinghouse platform and are encouraged to lend their support. This statement aims to demonstrate to G20 leaders that the investment community is supportive of energy efficiency activities and its financing and, eventually, to encourage countries to increase their political engagement and support on this important topic. In parallel, the group also issued energy efficiency investment principles dedicated to countries as voluntary recommendations to help support the removal of barriers and create the momentum for enhanced policy support.
These two examples of collaboration between the policy and industry on tackling climate change and overcoming common barriers to energy efficiency investment and green building initiatives show how the policy side is increasingly working with (real estate) investors as key actors to collaboratively develop win-win solutions to these important challenges.