A high-level presentation on how the real estate sector may (or may not) get to "zero" carbon by 2050.

1. THE (LONG) ROAD TO NET ZERO
THE ROLE
OF REAL ESTATE
NILS KOK
PROFESSOR
MAASTRICHT UNIVERSITY
CHIEF ECONOMIST
GEOPHY

2. 2
THE BIG PICTURE: ELECTRICITY
ELECTRICITY
CONSUMPTION
U.S. REAL ESTATE
SECTOR
SHARE OF TOTAL
U.S. ELECTRICITY
CONSUMPTION
3,000 100%
50%
0%
2,000
1,000
0
SOURCE: EIA, 2021

3. 3
THE BIG PICTURE: CARBON
CARBON EMISSIONS
U.S. REAL ESTATE
SECTOR
SHARE OF TOTAL
U.S. CARBON EMISSION
2,500 100%
50%
0%
2,000
1,000
500
1,500
0
SOURCE: EIA, 2021

4. 4
THE PATH TO ZERO
RETROFIT
CARBON LIABILITY
DECARBONIZATION
PATHWAY
CLIMATE EFFECTS
(NEED FOR COOLING)
GRID
DECARBONIZATION
Source: CRREM, 2021

5. 5
REGULATION-LED APPROACH
BREEAM Outstanding
LEED Platinum
Green Star Six Star
Passive buildings
EPC A+++
REGULATION MARKET
EPC < E
BANNED IN UK
EPC < C
BANNED IN NL

6. 6
CAPITAL-LED APPROACH
BUILDING
PORTFOLIO
COMPANY
CAPITAL
MARKET
INVESTMENT COMMUNITY
COMMITMENT
CAPITAL
FUND
MANAGER
PORTFOLIO
MANAGER
ASSET
MANAGER
PROPERTY
MANAGER
FACILITY
MANAGER

7. 7
EQUITY MARKET: GRESB
COMMITMENT
CAPITAL

8. 8
DEBT MARKET
COMMITMENT
CAPITAL
Source: NAREIT, 2021

9. 9
TENANT-LED
APPROACH

10. 10
THE MARKET MECHANISM
ENERGY EFFICIENCY
CAPITALIZED INTO RENTS,
PRICES
+3%
rent
+7%
cash flow
+13%
price
Research by
Kok, Eichholtz, Quigley:
2010 Doing Well by Doing Good:
Green Office Buildings (AER)
2013 The Economics of Green
Building (REStat)
Holtermans
& Kok:
Similar findings
in 2018

11. 11
THE MARKET RESPONSE

12. 12
BEYOND NET ZERO: CLIMATE RISK

13. 13
WHAT WE ARE
REALIZING:
HEALTH = BUILDINGS
(90% OF TIME IS
SPENT INDOORS)
... AND HEALTH

14. Nils Kok
n.kok@maastrichtuniversity.nl
maastrichtrealestate.com
CONTACT
DETAILS
THE (LONG) ROAD TO NET ZERO
THE ROLE
OF REAL ESTATE