SuperHumanRace and CREDAI Maharashtra have signed an MOU to jointly create and implement regional emissions inventories for the real estate market in the state.
SuperHumanRace is a technology company that specializes in data platforms at the nexus of finance and climate, and CREDAI is an association of real estate developers.
Mr. Pramod Khairnar, President, CREDAI Maharashtra, said, “The real estate sector in Maharashtra is at the forefront of India’s urban transformation. The regional emissions inventories initiative is timely and essential for environmental and economic sustainability.
By 2030, 40% of India’s population will live in cities, which will also account for 70% of the country’s GDP and more than 30% of its emissions. Building low-carbon, climate-resilient infrastructure will be essential for the safety and well-being of Indian citizens as well as to attract international investors, as India adds floor space at a rapid pace.
The lack of sectoral, regional, or national baselines or benchmarks for real estate hinders the need to create low-carbon built environments to meet the country’s nationally determined contributions (NDCs) under the Paris Agreement, the partners said in a press release.
However, there is a climate cost associated with this massive and quick urbanization.
The suppliers’ ability to compete internationally is also impacted by these carbon costs. For instance, in carbon-regulated markets, Maharashtra’s exports of building supplies like cement and aluminum may be subject to additional tariffs, highlighting the critical need for accurate emissions data to inform strategic choices.
Mr. Ayashkanta Rout, Sustainability Lead, Oberoi Realty, said, “Carbon costs embedded in construction materials could raise project costs significantly, impacting profitability.”
Mr. Aalok A. Deshmukh, Managing Director, SuperHumanRace, and a building physicist in India, said, “The initiative to develop regional emissions inventories for the real estate value chain is a crucial step towards reliably quantifying and effectively addressing carbon risks associated with India’s burgeoning urban aspirations.”
Regional Emissions Inventories will
- Enhance the global competitiveness of Indian real estate developers and construction material manufacturers by providing granular emissions data at the product, site, city, and state levels.
- Enable real estate developers to identify hotspots in their supply chains and adopt sustainable procurement practices.
- Prepare the sector for impending carbon taxes and regulatory measures as India transitions to a low-carbon economy.
- Foster investment in low-carbon technologies and green certifications, attracting climate-conscious investors.
“This partnership is a game changer for sustainable urban development in India,” Mr. Deshmukh said, underscoring the importance of technology. We are enabling the real estate industry to proactively manage carbon risks and promote global competitiveness by developing transparent, linked, and actionable emissions inventories.
Backdrop:
The World Bank estimates that India will require $50 billion in private funding annually until 2036 to meet its urban infrastructure needs, despite 2024 being a historic year for Indian real estate, with institutional investor investments hitting an all-time high of $8.9 billion. India’s goal to become the world’s third-largest economy by 2027 and achieve a GDP of $7 trillion by 2030 is centered on its urban aspirations.
