The European Bank for Reconstruction and Development (EBRD) has approved a new property strategy focused on green buildings and urban regeneration.
The strategy will guide the Bank’s investments and policy work for the period 2020-24 with an emphasis on:
• managing and developing green and sustainable buildings
• investing in an inclusive and competitive hospitality and tourism sector
• promoting urban regeneration initiatives for more competitive, sustainable and greener cities
• supporting the diversification of funding sources for real estate development and ownership through capital markets, thereby facilitating the sector’s resilience.
From 2020-24 the Bank will target investments in commercial, logistics and residential real estate, as well as in hospitality and hotels. To date, the EBRD has invested over €3.3 bn in around 200 projects in the property and tourism sector.
Vlaho Kojakovic, EBRD head of property and tourism, said: 'A vibrant property and tourism sector is crucial for functioning economies. We are proud that the new strategy supports economic growth and promotes social inclusion in the EBRD economies, aiming to respond to challenges such as urbanisation and climate change. Greener buildings, promoting inclusive tourism and supporting urban regeneration are at the heart of the strategy.'
Real estate stock is a major contributor to greenhouse gas emissions, accounting for around 30% of global emissions. Despite the fact that associated emissions from buildings need to be reduced by 80-90% by 2050 to stay under the 1.5 °C warming limit, the EBRD’s regions still lag behind advanced economies, in terms of adopting of sustainable development practices, implementing advanced environmental regulation and utilising climate resilient components.
In this spirit, the EBRD property and tourism strategy is in line with the UN Sustainable Development Goals and the Paris Agreement.
To know more on this subject, please also read our interview with Marc Lemaitre, director-general for regional and urban policy at the European Commission.