With the UN Environment Programme (UNEP) reporting back in October that there is currently “no credible pathway to 1.5C in place”, all eyes are on the proceedings of COP27 to see what promises will be made and whether it is still possible to limit global warming to 1.5C. Many scientists and activists say that 1.5C is still achievable, whereas others suggest that ship has already sailed.

UNEP has predicted that emissions need to be cut by at lease 45% in order to achieve the 1.5C "target". However, Global Carbon Project estimates that in 2022 carbon emissions have increased by 1%, with a new high of 36.6bn tonnes of CO2.

With that in mind, is the real estate sector on track? Not according to Guy Grainger, global head of sustainability services and ESG policy for JLL. As reported by Urban Land Magazine, The European Commission has estimated that 70% of existing buildings need to be retrofitted in order to meet carbon reduction goals. Grainger has said that this equates to 3% of buildings in developed cities per year, but we are currently only achieving 1%.

So who is going to pay for these retrofits? It is expected that 90% of the funds will need to come from private sources. In the residential sector, this places a huge burden on the public who are already dealing with a cost of living crisis. Research by RICS has found that the cost of these improvements is creating a barrier to homeowners installing energy saving measures and that "consumers are now concerned about paying for the cost of living above upgrading their homes". It is, therefore, hard to imagine a sufficient number of homes being upgraded without further financial incentives from the Government. In the commercial sector, there is a question mark over how the costs should be shared between landlords and tenants. It will take time for the market to fine tune this balance.