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Global Banks Start Targeting a New Breed of Real Estate Risk
At some of the world’s biggest banks, loans to commercial real estate face new litmus tests that promise to shape the sector’s access to financing. At issue is the carbon emissions of buildings and the expected cost of upgrades needed to stay on the right side of new green regulations. The European Union just passed its Energy Performance of Buildings Directive (EPBD), which forms part of a growing array of net zero regulations. And too-big-to-fail banks are starting to react. BNP Paribas SA, the European Union’s largest bank, now targets cuts that could be as deep as 41% of the emissions intensity of its ... (full story)