IGBChats #1 – Green Finance Regulatory Change: Its Impact on the Construction Sector

Energy retrofits are among the sustainable real estate activities attracting capital lead by implementation of the EU Taxonomy for Sustainable Activities. As the EU Taxonomy seeks to achieve balanced ‘access to advantageous financing conditions’ to incentivize renovation that address energy efficiency, it sets out criteria for renovation at a level of detail, comparability and transparency that has long been sought in the real estate development sector and debt capital markets. While institutional investors show increasingly strong demand for sustainable fixed income and credit investments to achieve financial and climate objectives, the EU Green Bond Standard enables a developer, investor or bank to issue a financial instrument defined as a ‘EU Green Bond’ to meet this global demand for projects which are EU Taxonomy aligned – both within EU Member States as well as internationally outside EU Member States.