Dawn of the Green Technology Decade
By Mike Tobin
Welcome to 2010 and the dawning of the clean/green technology decade – or so we are led to believe! The current administration has ushered in the new decade with some very exciting steps towards embracing a more sustainable and environmentally focused strategy which has the potential to dramatically affect our real estate market. From the notable steps taken by the Supreme Court in the 2007 ruling that the EPA must regulate CO2 and other greenhouse gases to the recent December 7, 2009 announcement in which the EPA has formally determined that greenhouse gases threaten public health and welfare, it is inevitable that business as usual will no longer exist as it relates to greenhouse gas emissions. Congress will need to pass comprehensive greenhouse gas regulation soon otherwise the EPA will be required to regulate these emissions under rules that most experts consider inefficient. It was therefore more of a formality and favorable political opportunity for President Obama to finally, and confidently, put the United States in the middle of the discussions on global warming and limiting greenhouse gas emissions at the Climate Conference in Copenhagen this past month.
Regardless of politics, the winds of change are blowing harder than ever in relation to how businesses address greenhouse gas emissions and other sustainability issues. Leading companies have already put in place a strategic sustainability plan and begun to measure their carbon footprint, analyze their exposure to “dirty” fuels, and assess their capabilities to harness renewable energy sources (among other objectives). All companies could substantially benefit from developing a similar plan to position themselves for the cleaner/greener future.
Within this sustainability plan, the impact on real estate will be profound as companies struggle to adjust to the new regulations and stakeholder expectations, as well as the necessary efforts to take advantage of the myriad of incentives and initiatives surrounding them. This era of change brings with it opportunities for success but it also brings the potential for pitfalls. In order to capitalize on the future, leading companies are diligently working now at the forefront of change to identify both the opportunities and pitfalls.
For example, we all know the key in real estate is “location, location, location”. The new changes on the horizon will affect the playing field for finding the best sites. Site location criteria will begin to focus more on the mix of local fuel sources with an eye toward avoiding areas with “dirtier” fuels and areas with local utilities that have a higher cost to meet compliance. “Dirtier” fuels and higher conformance costs will translate into higher costs to consumers. Also, understanding the feasibility of local renewable energy sources will become more important as this will affect the prioritization of sites that allow a company to tap into the most efficient renewable energy systems that will provide clean, consistent power at relatively stable prices into the future.
As we begin 2010, how are you helping your company or your client prepare for – and capitalize on – the clean tech decade?
Disclaimer: The opinions expressed in CresaPartners’ Blog represent those of our bloggers, and not necessarily those of the firm.
Tags: green, renewable energy, sustainable
This entry was posted on Wednesday, January 20th, 2010 at 9:00 am and is filed under Sustainability. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
What a great resource!