Green banking and real estate

: examining of banking strategies promoting environmental responsibility in real estate (GB)

Abstract

This thesis investigates the pivotal role of banks and regulatory frameworks in promoting environmental responsibility within the real estate sector. The real estate industry, a major contributor to global greenhouse gas emissions, is at the forefront of achieving substantial environmental sustainability through Green Buildings (GB). This study explores how green banking strategies and regulatory frameworks, particularly the EU Taxonomy, influence sustainable real estate development. Utilizing a mixed-method approach, the research combines quantitative surveys with qualitative expert interviews to analyze current banking practices, market trends, and regulatory impacts. Findings reveal that regulations massively shape banking practices, which in turn have a profound influence on the real estate financing industry. By tying conditions to access capital, regulations create a powerful lever driving economic change. Banks play a crucial role by financing the transition to sustainable real estate through green finance initiatives like green loans and bonds. However, challenges persist, including high costs, regulatory complexities, and the risk of greenwashing. These obstacles highlight the need for enhanced financial incentives and streamlined regulatory processes to encourage broader adoption of GB practices. This research underscores the symbiotic relationship between financial institutions and regulatory bodies in fostering a sustainable real estate sector. Banks and regulators are critical in bridging the investment gap and driving the transition towards greener building practices. The study offers valuable insights for financial institutions and real estate companies aiming to meet global sustainability targets, emphasizing the transformative potential of green finance and regulatory support.

Date of Award	3 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor) & Christophe Moussu (Supervisor)