A big initiative for Joe Biden following his win is to tackle the climate crisis and implement a national effort aimed at creating the jobs and investment needed to build a modern and sustainable infrastructure to deliver a clean energy future.
Some of Biden’s key initiatives to promote sustainability include;
But what does all this mean for the Real Estate Sector?
Firstly, access to capital will be much easier, Biden has set aside $2 trillion accelerated investment to deploy resources over his first term to put the US back on track towards cleaner cities. It’s no secret that buildings produce a vast amount of carbon emissions – as much as 40% globally according to the International Agency.
Incentives for a re-vamp on infrastructure that combine appliances electrification, efficiency, and on-site clean power generation will target upgrades on 4 million commercial buildings across the US and weatherizing more than 2 million residential buildings.
Secondly, VC firms will be turning their heads to focus on startups that will be catalyzing the green revolution in America. Jon Hale, Head of sustainability research for the Americas at Morningstar predicted that ‘Once a transition to a low-carbon economy is embraced, early-stage investments through venture capital and private equity will likely see increased interest’. And that prediction is already martializing; last year Fifth Wall launched their $200 million Carbon Impact Fund, which will help Real Estate companies reduce carbon emissions and keep up with upcoming regulations.
The US becoming zero-carbon emission in the US is not going to happen overnight. But, as Brad Dockser, CEO and CO-founder of Green Generation said, ‘Clearly, these challenges will not disappear when President-elect Joe Biden takes the oath of office, but the Biden administration's arrival brings ample, profitable opportunity for sustainability-minded commercial real estate owners, executives, and investors’.
At LMRE, the number of clients focused on sustainable initiatives has increased by 120% over the last 9 months. We predict that the search for talent in this sector will become increasingly competitive and salaries will almost certainly increase.
It is a long-term plan but Biden's ideas and ambitious plans will create a big focus for Sustainable cities – those Real Estate Owners, Developers and Investors who follow suit are likely to benefit immensely from this shift towards a greener future.
By Hattie Armstrong - PropTech Recruitment Consultant, US