Importance of COP28 for the real estate industry business

COP28, the UN global climate summit is taking place in Dubai Expo City between 30 November and 12 December 2023. More than 70,000 participants from all over the world are gathering to discuss climate mitigation, adaptation and resilience in line with the Paris Agreement. Hosting the United Nations Climate change conference in the Middle East, and particularly the United Arab Emirates, is a huge step in the region towards sustainable development. In a bid to encourage fighting climate change with innovation, 2023 has been declared “Year of Sustainability” in the UAE by HH Sheikh Mohamed bin Zayed Al Nahyan, president of the UAE. Now, when all eyes are on Dubai Expo City for the upcoming COP28 Climate Summit 2023, we answer the question “What is COP28 and why is it important for the real estate industry?”

What is COP28?

COP28 is the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The purpose of the UNFCCC is to tackle climate change through innovative sustainable solutions. This year’s session is hosted by the UAE and is expected to attract not only government officials, stakeholders, companies, NGO and sustainability experts, but also members of the general public. This important step in expanding the agenda and theme of COP28 aims to raise awareness, inspire action in everyday activities and shift mindset to sustainable community models.

What can we expect from COP28?

One of the most important discussions in COP28 is the first global stocktake under the Paris Agreement. Every five years, the COP reviews the progress and takes the opportunity to adjust the course of action to limit the global temperature rise to 1.5°C. According to a preliminary technical report on the global stocktake, the expectation for this summit to be more than raising awareness on the urgency of the situation. The need for action is stronger than ever, suggesting important and unprecedented decisions being taken.

This global climate summit is also going to focus on nature and people, with different themes around various Sustainable Development Goals (SDG) being hosted throughout the event program. Widely presented as the most inclusive ever, COP28 climate summit promises to engage environment organizations, community groups, think tanks, businesses and other influential groups.

Why is COP28 important for the real estate industry?

The discussions scheduled to take place at COP28 cover various topics around climate mitigation, adaptation and resilience. Some of the most notable discussions on net-zero strategies would be focusing on sectors like energy, transport, manufacturing, construction and real estate. Here are some of the main points.

• Mitigation Efforts: As a result of the discussions around this topic, the focus on reducing the greenhouse emissions, decarbonizing the real estate sector and transition to renewable energy would likely lead to stricter building regulations. Net-zero buildings and energy conservation in real estate are already preferred by customers and an upward trend, but the real estate sector will need to adapt to the new standards to reduce the environmental impact in real estate.
  
  
• Capacity Building: This is a crucial area of interest and improvement for COP28. The emphasis on strategic capacity-building strategies suggests the rising need for implementation of sustainable practices in development and management of real estate. Considering the increased commitment of UAE-based businesses and corporations in sustainable development and their pledges to reduce carbon emissions, the role of public-private partnership is increasingly important. These collaborations are essential for sharing resources, strategies, and innovative solutions to enhance the capacity for sustainable development in the real estate sector.
  
  
• Adaptation Strategies: Climate change is inevitable, and so is our adaptation to it. With rising sea levels, more extreme weather events are expected, and the way we construct safe buildings must account for these changes. This would probably lead to new regulations and increased costs to accommodate climate-resilient materials and constructions. While this shift could lead to change in valuations, property value and even viability of certain real estate developments, it is necessary step towards ensuring long-term sustainability and safety in the real estate sector.

The climate mitigation, adaptation and resilience discussions at the COP28 Global Climate Summit underscore the inevitability of climate change and the imperative for the real estate sector to respond proactively.

At RealCube, we understand the significance of these developments and are committed to being at the forefront of sustainable practices in property management. Our software solutions for real estate management are designed to support these new standards, helping our clients navigate the evolving landscape with ease. As the world moves towards a more sustainable future, RealCube stands ready to provide the tools and expertise necessary for the real estate industry to thrive in this new era.