Australian, US and UK green building bodies partner

The UK-based Building Research Establishment (BRE), the Green Building Council of Australia (GBCA) and the U.S. Green Building Council (USGBC) have announced an international alliance to unlock the sustainable finance needed for the built environment to play its role in meeting global climate goals.

The alliance will see the three organisations work together to ensure investors, property owners, developers and governments have the information they need to enact transformational change in the built environment.

A major part of this will be demonstrating the critical role that verification and certification schemes play in supporting environmental, social, and governance (ESG) reporting. This will involve raising awareness of the world’s top green building rating systems – BREEAM, Green Star and LEED – in the real estate and finance sectors, communities that will play a key role in driving the change required to tackle the climate emergency head-on. At present, the three rating systems collectively drive buildings and projects towards net zero and ESG goals worldwide.

“This global alliance shows that the world’s major sustainability rating systems are aligned – not just on climate science – but on how we can ensure that all buildings are able to transition to a decarbonised future,” says GBCA CEO Davina Rooney.

“As we move through a global sustainable finance revolution, together, we have the potential to unlock significant benefits for buildings, the environment and for people. Green Building Council of Australia looks forward to taking this first important step with the USGBC and BREEAM.”

This alliance comes against the backdrop of last year’s UN Global Stocktake report, which found that the
international community is not on track to reach the goals of the 2015 Paris Accord. Even if all nations achieve their current Paris targets, the UN forecasts warming of 2.5–2.9°C above pre-industrial levels by the end of the century, far beyond what scientists consider safe levels.

The first in a series of milestones in the alliance will be the publication of a practical guide at London Climate Action Week in June 2024, exploring the sustainable finance instruments currently available to the real estate market, such as green loans and green bonds.

The sustainable finance guide will build on an initial document developed by the GBCA and launched to the Australian market in 2023. The upcoming version is set to drive awareness of sustainable finance mechanisms among the real estate sector and demonstrate how rating systems like BREEAM, Green Star and LEED ensure compliance with multiple sustainable classification frameworks used globally, such as the EU and UK green taxonomies.