How climate will change the property sector
Australia finally committed to net-zero emissions by 2050 at the 2021 United Nations Climate Change Conference (COP26). This means that at the very least Australia will need to remove as much carbon dioxide as it emits by 2050. Australia’s plan to reach net-zero relies heavily on new technologies. What might all this mean for the property sector?
What’s in Australia’s plan to reach net-zero?
What we know so far is that a lot of the plan relies on new technology, some of it so new that it doesn’t exist yet. Hydrogen, carbon capture and storage, ultra-low-cost solar, and soil carbon sequestration are all on the list.
The government is hoping that industry, businesses, and households will all invest in these new technologies. The Property Council of Australia said it was happy to jump on board. Large-scale refurbishments, retrofits, and technology adoption are among the changes the council to reduce the carbon footprint of the property sector, which amounts to 37% of Australia’s emissions through electricity and construction.
What did the world agree to at COP26?
- Hot on Australia’s heels, India followed up committing to net-zero by 2070.
- Australia’s not been much of a yes-man at COP26. So far it’s refused to sign a deal to phase out coal and has also said no to meeting methane reduction targets.
- But Australia did promise to end deforestation by 2030, it’s the only developed nation on the list of the world’s deforestation hotspots.
What does all this mean for the property sector?
Homeowners are looking to do their bit to reduce their carbon impact. In Australia 2.7 million households have installed rooftop solar panels. Many have also introduced big batteries into their homes. Last year alone 31,000 people installed batteries to store solar power when they’re not using it.
People are looking to make a difference and protect the environment. Plant A Tree Co was totally inundated recently when it started a campaign committing to plant a tree for every Instagram pet pic it received. They got over 4 million hits. Talk about biting off more than you can chew.
The Real Estate Institute of Australia has also noticed the rising value of positive environmental actions, pointing out in a recent report that future homebuyers will pay more for sustainable property features.
- Charging stations in the home or even on nearby streets is going to become a selling point for future home buyers.
- Buyers are more likely to be on the hunt for sustainable property now that the government’s backed net-zero by 2050.
- Agents should highlight environmentally-friendly property features as people look to make any difference they can to help tackle climate change.
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