Should I Invest in Net Zero Carbon Buildings?

June 15, 2023

Net zero carbon graphic

Reporting says the total investment in global buildings should increase from almost $5 trillion in 2017 to about $5.5 trillion in 2050 to keep the global warming levels below 2°C. The United States, European Union, China, and India will receive about 60% of the investments and this means there will be a surge in new net zero-carbon buildings across the world. 

Let us understand what is a net zero carbon building and whether you should invest in one. 

What is a Net Zero Carbon Building?

However, there lies a difference between a net zero carbon building and a Zero Carbon building. Net Zero will require 100% of its energy to be produced on-site. Now let’s understand what a zero-carbon building is. 

A net zero carbon building is a building that has zero net carbon emissions during its construction as well as in its operation. In the process of construction, emissions are reduced and anything that is left over will be balanced by renewable energy. A truly net zero building will achieve net zero in its entire life and not just during construction. It means that in the operation and even in the disposal, the carbon emissions will be zero. 

What is a Zero Carbon Building?

There is a difference between a Zero carbon building and a net zero-carbon building. A zero-carbon building is a building that is highly energy efficient and is powered by onsite or off-site renewable energy sources. This is the main difference between a net zero commercial building and a zero carbon building. You can differentiate between the two based on their source of energy. 

Advantages of Net Zero Carbon Commercial Real Estate

There is increasing discussion about energy saving and consumption and the focus on a sustainable future is necessary. This is why we will see a lot of net zero-carbon commercial real estate property coming up in the next few years. Let us consider the advantages of the same. 

Attractive to ESG type of Investors

If you are passionate about making the world a better place and are looking for Environmental, social, and governance (ESG) investments, net zero-carbon buildings can be an ideal choice. 

Attractive to Green Oriented Tenants

Many tenants want to live in properties that do not harm the environment and such tenants are also willing to pay a higher rent if they get to reside in net zero carbon buildings. If you want to invest and let out the property, you will attract green-oriented tenants in no time.

Subsidies and Tax Breaks

The Department of Energy has laid out several tax deductions that help improve the energy efficiency of commercial buildings. Governments across the world offer various tax benefits and subsidies to investors in net zero-carbon commercial real estate. 

Lower operational costs

The cost of operating a net zero building will be much lower than other buildings because it utilizes minimal energy and has minimal emissions. This will bring down the overall cost of operation and maintenance of the property. 

The future is renewable energy and we will see a lot of net zero-carbon commercial real estate coming up across the world. If you are keen on investing in commercial real estate property, now is a great time to consider net zero-carbon buildings. 

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