Will Climate Change Initiatives Help or Hurt Real Estate Values?
The United Nations Climate Change Summit (COP26) just concluded, and there was a lot of discussion about cities' roles in the impact of climate change. Given that cities consume more than two-thirds of the world's energy and generate an approximately equal amount of global carbon dioxide emissions, cities are an obvious place to focus decarbonization efforts.
Climate change initiatives are being rolled out across the board -- from major Fortune 500 companies and city planners to real estate operators, real estate investment trusts (REITs), and even Federal policies. While surely positive for the environment, these initiatives could have some negative outcomes in not only the cost of developing and operating real estate moving forward but also in its value. Here's why.
Cities house half the world's population and a good majority of its investment opportunities. Any major changes to regulations and incentives within these urban domains can profoundly impact the cost of doing business. Depending on the location and scope of business, initiatives could range from new building codes to insurance premiums rising.
Source Fool.com
