ENERGY TRANSITION
modern systems can be installed. Each building presents unique challenges, preventing the economies of scale that new construction enjoys.
Regulatory fragmentation across jurisdictions creates confusion and compliance burdens. Energy performance standards vary dramatically between regions, with some cities like London and New York implementing aggressive benchmarking and disclosure requirements while others lag behind. Property companies operating across multiple markets must navigate this patchwork of regulations.
The multi-trillian dollar opportunity Savills reports that global commercial real estate represented approximately US $ 58.5tn in global asset value at the start of 2025, giving property companies enormous financial leverage to drive change. Buildings constructed today will likely operate for 50 to 100 years, making current decisions critical to long-term emission trajectories.
The momentum is building. Global green building market size is projected to exceed US $ 600bn by 2027, with property companies increasingly recognising that energy-efficient buildings command rental premiums of 5 to 10 % and higher occupancy rates. GRESB, the environmental benchmark for real estate, now assesses more than US $ 8.8tn in property assets, creating competitive pressure for improved performance.
However, the sector needs to accelerate dramatically. To achieve net zero by 2050, building emissions must fall by approximately 50 % by 2030. This requires retrofitting 3 to 5 % of existing building stock annually, a rate that far exceeds current progress.
Innovations in the built environment demonstrate what’ s possible, but systemic challenges demand coordinated action involving policy makers, financiers, technology providers and tenants. The energy transition in the built environment won’ t succeed without these companies leading the charge.
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