CRREM – Carbon Risk Real Estate Monitor

CRREM provides science-based risk assessments and carbon reduction pathways to accelerate the decarbonization of buildings and make them more resilient to climate change.

The Carbon Risk Real Estate Monitor (CRREM) is a European Horizon 2020 research and innovation project, which aims to verify whether a specific building meets the standards set by the Paris Agreement regarding CO2 emissions into the atmosphere. The ambitious goal of this agreement is to try to limit global warming of the planet to between 2°C and 1.5°C.

Real estate is increasingly exposed to climate risk: CRREM’s goal is to accelerate the decarbonisation and climate resilience of the real estate sector by providing appropriate science-based carbon reduction pathways at the individual building, property, portfolio and company level.

The risk assessment tool developed by CRREM identifies the risk of asset stranding (i.e. exceeding the maximum allowable level of emissions) and is designed to communicate the risks in one’s real estate portfolio to asset owners and investors.

Greenwich applies the CREEM carbon risk assessment to existing buildings in the phases:

  • AS IS of the Assets: collection and analysis of the building’s energy consumption through the CRREM tool for the current stranding year calculation. Estimation of the future energy consumption of the building project through energy modelling.
  • Plan for the future: definition of improvement scenarios and proposals in terms of reducing the building’s carbon intensity. Use of energy simulation to define future energy scenarios, through energy modelling.
  • Calculation of post-intervention carbon risk: determination of new potential stranding years post upgrading and assumptions of different design scenarios.

And provides the following data:

  • Stranding year
  • Effectiveness of retrofit interventions
  • Potential for retrofitting post stranding
  • Carbon cost of excess emissions

Major investors with over EUR 450 billion AuM (assets under management) have already applied CRREM to avoid stranding, address transition risk and meet Paris-aligned requirements. The tool has already been used for more than 3,300 properties, representing more than 23 million m² of floor space globally (date: 01.07.2021).

Contact the Greenwich consultants, contact us now to request information.

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