Building Equity: Housing as a Key to a Low-Carbon Society

BLOXHUB, The Shift & others

BLOXHUB

2024

This comprehensive report titled "Building Equity: Housing as a Key to a Low-Carbon Society" was published in November 2024 by BLOXHUB, a platform focused on creating sustainable urban environments, with contributions from The Shift and funding from the Laudes Foundation. 🏘️ Context and Challenges The report addresses pressing challenges in Europe, where 10.6% of urban residents struggle with housing costs, and the EU's carbon budget for the built environment is projected to be exhausted within the next ten years at current emission levels. To align with the Paris Agreement, new buildings are required to achieve a remarkable 94% reduction in carbon emissions by 2050. 🌍 Interconnected Issues The findings highlight the interrelation between the housing crisis and climate emergency. Ensuring housing affordability and implementing decarbonization initiatives are dual challenges that necessitate integrated solutions. Energy-efficient homes have been identified as a pathway to enhance long-term affordability by lowering utility costs. However, the industry must also consider the immediate financial implications involved in achieving these decarbonization goals without compromising housing affordability. 🤝 Collaborative Solutions The report underscores that no single sector—public, private, or third—can tackle these challenges in isolation. Effective public-private partnerships are essential for securing the long-term financing required to address these issues. Moreover, robust government support, consistent mechanisms, and decisive political leadership are crucial for driving progress. 💡 Innovative Approaches Key areas for innovation identified in the report include new building practices such as regenerative design and flexible living spaces, as well as innovative business models that involve infrastructure investment and profit-sharing with tenants. Financial innovation is also emphasized, particularly through impact investment frameworks and blended finance models. Policy innovations such as fast-tracking permits and protecting against renovictions, along with community initiatives like land trusts and retrofit hubs, are recommended. 📋 Recommendations The report concludes with several recommendations: recognizing housing as a fundamental human right, exploring new investment structures, unlocking industry innovation, fostering collaboration between sectors, increasing agency among developers, and enhancing transparency and knowledge. 🔍 Methodology The report's insights were derived from a thorough literature review, expert interviews, and engagement workshops across Europe, as well as consultations with global practitioners. This effort aims to identify barriers and opportunities within the industry, providing a foundational step towards generating social value in real estate and promoting sustainable, affordable housing solutions across Europe.

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