Green loans and leases have been introduced to encourage the development of energy-efficient buildings, complementing traditional financial options. The ‘green lease’ concept, though newer, is rapidly gaining acceptance as a way to embed sustainability in real estate transactions. These agreements are not just symbolic but enforce real commitments to sustainability from both tenants and landlords, incorporating specific environmental objectives into the lease terms.
Meelis Šokman, Managing Director of Green Formula Capital, emphasizes the significance of green leases, propelled by the EU’s ESG policies, the need for sustainable funding, and advances in technology. These leases mandate significant efforts from both parties to cut down on energy and water consumption and enhance waste management, leveraging modern technologies for better efficiency and informed decision-making.
Despite the upfront costs and efforts, the benefits of green leases are manifold, offering substantial environmental advantages like reduced CO2 emissions and lower energy use, alongside economic gains through improved efficiency. These advantages present a compelling case for the adoption of green leases, projecting a shift towards more sustainable practices in the long run.
Leading this shift, Summus Capital in Estonia, under the guidance of Green Formula Capital, has been an early adopter of green leases, allocating a significant portion of its portfolio to environmentally friendly spaces. Notable examples include SYNLAB Estonia, situated in a LEED-certified building, which highlights the practical benefits and strong partnerships fostered by green leases. This trend is not just limited to Estonia but is expanding across the Baltics and beyond, with expectations that green leases will soon become a standard practice in the industry, marking a significant move towards sustainability in business operations and real estate management.
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