Sam Maddock’s Post

The updated European Building Emission Factor Database (EBEFD) focusses on operational carbon emission factors for mortgages and commercial real estate. The datasets will improve transparency and understanding of carbon emissions but their limitations should be appreciated. For a review of the data quality scores and credibility, take a look at our article here: https://hubs.la/Q02BGm1z0 #PCAF #EBEFD #RealEstate

We just released the Q3 edition of Quarterly Considerations, highlighting key sustainable finance trends. Here are the main takeaways: M&A Insights - Platform M&A remains slow but is picking up - Strong demand for renewables and low-cost clean power is driving new entrants to seek M&A opportunities - Industry consolidation and increased competition is top-of-mind - Buyers remain cautious due to remaining uncertainty around impact of IRA incentives on valuation - Market readjustment is occurring, but macroeconomic factors continue to present challenges - Asset M&A should continue to increase over next few months Project Finance Insights - Tax equity is more expensive than it has been in the recent past - Transferability market is picking up steam fast - Transferability likely to open door for more tax credit capital - A new wave of investors is coming Read the full report here: https://lnkd.in/ec_P2-Un #sustainability #sustainablefinance #renewableenergy #projectfinance #inflationreductionact #credittransfer #transferability #taxequity

5 big news in the world of sustainability: 1. UBS Expands Shipping Loans Amidst Green Overhaul Post-Merger: UBS has announced plans to increase its lending to the shipping sector while phasing out loans to fossil fuel clients inherited from Credit Suisse. This move is part of UBS's broader strategy to integrate the sustainability frameworks of the merged banks and align its lending practices with its net-zero commitments. 2. UK's Greenhouse Gas Emissions Drop by 5.4% in 2023: The UK saw a significant reduction in greenhouse gas emissions, largely due to decreased gas use in electricity generation and heating. This decline supports the country's target of net-zero emissions by 2050, with major cuts observed in the electricity and industrial sectors. 4. SLB and Aker Carbon Capture Merge Carbon Capture Businesses: SLB (formerly Schlumberger) and Norway's Aker Carbon Capture are merging their carbon capture operations. This partnership aims to accelerate the deployment of carbon capture technologies, potentially reducing the costs and increasing the adoption of these solutions across high-emitting industries. 5. Hydrogen Industry Seeks Eased Path to US Tax Credits: Hydrogen companies are lobbying the US Treasury for relaxed environmental requirements to qualify for the 45V tax credit under the Inflation Reduction Act. Industry leaders argue that current requirements could hinder the growth of hydrogen projects, while some environmental groups support maintaining stringent standards. 6. Eneco Withdraws from Dutch Offshore Wind Farm Tender: Eneco has decided not to bid for a major 4 GW offshore wind farm in the Dutch North Sea due to rising costs and supply chain challenges. This withdrawal highlights the financial and logistical hurdles faced by large-scale renewable energy projects, prompting calls for a redesign of tender processes to better manage risks. Have a great week ahead! #sustainability #esg #carbonfootprint #netzero

In the first half 2024 edition of Valuation Insights, Kroll experts provide an overview of private credit investments #valuation best practices, discuss an integrated approach to tax savings on large-scale green energy projects, recent Baseline Distribution Activities guidance released by the OECD - OCDE as well as the sensitivity of asset pricing. Read Kroll's latest Valuation Insights: http://ms.spr.ly/6044lHLbo #PrivateCredit #GreenEnergy #ESG

Check out RRA's 2023 Global Trends and Talent Implications in Real Estate - The industry is undergoing significant transformation, driven by factors such as intensified talent competition, an evolving financial landscape, and the increasing importance of ESG considerations - Read more about our findings here: https://lnkd.in/grWPgCKc

An international coalition of top green building rating system organizations has introduced the first practical #guide to support mobilizing the necessary $35 trillion investment to achieve global energy transition objectives by 2030. The availability of sustainable finance products specifically tailored for the real estate sector is increasing. The real estate industry participates significantly in the global sustainable finance debt market, including #loans and #bonds. BloombergNEF reports show that in 2021 and 2022, the real estate sector issued sustainable finance volumes totaling approximately $178 billion and $127 billion, respectively. These figures represent around 10% and 8% of the overall sustainable finance volumes for each year, respectively. The guide is here: https://lnkd.in/d8WvKSwk #sustainablefinance #realestate #trillions #energytransition

Happy to share our half year valuation insights report with focus - amongst other key topics - on private credit markets - one of the fastest growing alternative investment segments

Big news in the world of sustainability: 1. UBS Expands Shipping Loans Amidst Green Overhaul Post-Merger: UBS has announced plans to increase its lending to the shipping sector while phasing out loans to fossil fuel clients inherited from Credit Suisse. This move is part of UBS's broader strategy to integrate the sustainability frameworks of the merged banks and align its lending practices with its net-zero commitments. 2. UK's Greenhouse Gas Emissions Drop by 5.4% in 2023: The UK saw a significant reduction in greenhouse gas emissions, largely due to decreased gas use in electricity generation and heating. This decline supports the country's target of net-zero emissions by 2050, with major cuts observed in the electricity and industrial sectors. 4. SLB and Aker Carbon Capture Merge Carbon Capture Businesses: SLB (formerly Schlumberger) and Norway's Aker Carbon Capture are merging their carbon capture operations. This partnership aims to accelerate the deployment of carbon capture technologies, potentially reducing the costs and increasing the adoption of these solutions across high-emitting industries. 5. Hydrogen Industry Seeks Eased Path to US Tax Credits: Hydrogen companies are lobbying the US Treasury for relaxed environmental requirements to qualify for the 45V tax credit under the Inflation Reduction Act. Industry leaders argue that current requirements could hinder the growth of hydrogen projects, while some environmental groups support maintaining stringent standards. 6. Eneco Withdraws from Dutch Offshore Wind Farm Tender: Eneco has decided not to bid for a major 4 GW offshore wind farm in the Dutch North Sea due to rising costs and supply chain challenges. This withdrawal highlights the financial and logistical hurdles faced by large-scale renewable energy projects, prompting calls for a redesign of tender processes to better manage risks. #sustainability #esg #carbonfootprint #netzero

Today's Guardian article "Thames Water's turnaround plan to be supervised by independent monitor" (7 August 2024) highlights a paradox in our water sector: despite widespread adoption of ISO 55000 standards, we're still facing significant market failures. As a Fellow of the Institute of Asset Management, I believe we must examine why our current asset management practices are falling short and how we can empower asset managers to make better decisions. The root of our current crisis lies not in a lack of standards, but in how they're implemented and the broader context in which decisions are made. I propose we focus on the following areas: 1. Aligning Incentives with Long-Term Sustainability: The current regulatory and financial framework often incentivizes short-term thinking, despite the long-term nature of water infrastructure. We need to redesign these incentives to reward decisions that prioritize long-term asset health and sustainability. This could involve:   - Longer regulatory periods to encourage more strategic planning   - Financial incentives tied to long-term asset performance metrics   - Penalties for underinvestment in critical infrastructure 2. Enhancing Decision-Making Tools and Processes: While ISO 55000 provides a solid framework, asset managers need better tools to make complex decisions in an uncertain environment. We should focus on:   - Developing more sophisticated risk assessment models that account for climate change and other long-term trends   - Implementing advanced data analytics and AI to improve predictive maintenance and investment planning   - Creating decision-support systems that better balance financial, environmental, and social factors 3. Strengthening Governance and Accountability: The recurring issues in our water sector suggest a need for stronger governance. Key levers here include:   - Mandating more diverse boards with expertise in long-term infrastructure planning   - Increasing transparency in decision-making processes and investment plans   - Implementing stricter accountability measures for asset management decisions These recommendations aim to address the underlying reasons why our current asset management practices, despite following ISO 55000, haven't prevented market failure. By focusing on incentives, decision-making tools, and governance, we can empower asset managers to make better long-term decisions. The challenges in our water sector run deeper than adherence to standards. We need a fundamental shift in how we approach asset management, one that truly aligns the interests of water companies, regulators, customers, and the environment. Only then can we hope to create a resilient and sustainable water sector that serves the public interest for generations to come. #AssetManagement #SmartRegulation #Governanance

RRA's '2023 Global Trends and Talent Implications in Real Estate' is always an informative read! Read more about our findings below: