“The aim of the Low Carbon Building Initiative is to encourage real estate players to accelerate the decarbonisation of the sector.”

Why was LCBI created? What needs does it meet?

Cécile Dap: To talk about LCBI, I’d first like to introduce BBCA, a French association that has been working for over 10 years on the challenges of decarbonising the real estate sector in France. LCBI, which stands for Low Carbon Building Initiative, is a programme set up by BBCA to encourage European real estate players to speed up the decarbonisation of the sector.

Given that the real estate sector in Europe accounts for almost 40% of CO₂  emissions, a number of players – real estate companies, investors, developers, etc., and in particular members of the BBCA association – have expressed two main needs:

• First, they need a harmonised methodology for measuring carbon over the entire life cycle of a building. In a context where European countries each have different approaches of measuring their carbon footprint, real estate players wanted to rely on a common methodology that would enable them to measure and set thresholds aligned with Paris agreements, thereby limit the carbon footprint of their European assets. This method also enables the comparison of assets based on shared criteria and reliable data, which is especially valuable for investors.

• The second need concerns certification schemes. The most commonly used schemes n real estate are multi-criteria and do not sufficiently reward efforts to reduce carbon emissions throughout a building’s life cycle. Because they do not propose a performance threshold, these labels may encourage measurement of the carbon footprint but not necessarily its reduction. The label we wanted to create needed to prove decarbonisation in line with the 1.5° trajectories and, of course, always at European level.

How does the LCBI method work?

Cécile Dap: The methodology deployed by LCBI proposes to measure the carbon footprint, over the entire life cycle, of new buildings – offices, residential or hotels – using 3 criteria:

• Measuring embodied carbon, linked to construction and materials
• Measuring operational carbon, linked to the day-to-day management of the building
• Measuring biogenic carbon, linked to carbon storage in various bio-based materials

With the Technical Committee established for this project, we have developed a matrix that allows us to measure carbon performance, i.e. CO_2, emissions, on the one hand, and completeness of the carbon measurement, i.e. the degree of accuracy of the measurement, on the other. Valuing the accuracy of the measurement is also what will encourage players to go further in their efforts.

The combination of these metrics enables us to establish 3 levels of certification: Standard, Performance and Excellent. A “Standard” building corresponds to around the top 50% of buildings in terms of carbon footprint, while an “Excellent” building is in the top 25%, with a carbon footprint in line with 1.5°.

LCBI is the guarantor of the method and its dissemination to the various players in real estate. The certification process is carried out by a certifying body, currently Bureau Veritas. That third-party verification is essential to give carbon measurements their value.

How did you manage to develop a common method at European level?

Cécile Dap : It took us 2 years to develop this methodology.
After a phase of comparing regulations in different countries, we brought together various stakeholders – investors, developers, real estate companies, etc. – to express their needs and discuss them with the Technical Committee, responsible for defining the methodology.

Teams working on the day-to-day construction of buildings were able to test the method and provide feedback on what worked and what didn’t, in 8 different European countries. In particular, Covivio teams tested the method on 3 assets in France, Italy and Germany.

This phase was the most complex aspect of developing the methodology: gathering all the feedback and successfully synthesizing it in a way that meets everyone’s needs. However this is what really sets us apart, because the method has been tested and revised based on inputs from the players on the ground.

When we thought about this method and this European label, we aimed something aligned with existing regulations, to help players respond to these directives, while going further. LCBI is therefore compatible with the European Level(s) standard, which itself forms the basis of the European taxonomy.

So what is the difference between LCBI and the European taxonomy?

Cécile Dap: With the European taxonomy, players are required to measure the carbon footprint over the life cycle of the building – so that the activity can be considered “sustainable”.  But there has been no obligation to meet any performance thresholds until now. However, the taxonomy is not the only European regulation impacting the real estate sector.

The EPBD (Energy Performance of Buildings Directive), which came into effect this summer, aims to achieve an entirely carbon-neutral building stock by 2050. How will this be achieved? By making it compulsory to measure the carbon footprint of all new buildings from 2028. From 2027, Member States will also have to publish a roadmap on limit values introduction for carbon footprint of buildings.

These regulations will therefore accelerate the decarbonisation of real estate.

In this context, the role of a label like LCBI is twofold: first, to educate those involved in real estate about carbon accounting throughout the life cycle, and prepare them before the regulations are implemented. Second, the role of such a label is to consistently go beyond regulatory requirements: for example, while the EPBD requires carbon measurement for all new buildings, LCBI will go further by also addressing renovations in the future, as well as other asset classes.

2 years after the launch of LCBI, what is your initial assessment?

Cécile Dap: It’s very positive, primarily because we succeeded in creating this method and this label! And because our work has been recognised by our European peers, experts in carbon measurement, as well as by industry players, public and financial institutions. For example, a recent report commissioned by a group of major financial players, including BlackRock, identified LCBI as the only European standard that meets the need to decarbonise assets and aligns with the Paris Agreements.[1]

The label has been available since February 2024, and we already have dozens of applications in progress for building certifications in various countries, including Italy, Luxembourg, Belgium and France. The first buildings to be awarded the label will be presented at the next SIBCA, on 7 October in Paris.

What will be happening at LCBI in the coming months and years?

Cécile Dap: To date, our label is aimed at new buildings in the office, residential and hotel categories. Our ambition is to broaden the range of asset classes we address.

In a context where new buildings are becoming rarer, and where decarbonisation cannot be achieved without renovation, we will of course be working on a “Retrofit” label.

Finally, as our label is currently only available in 8 European countries, our goal is to extend it to other countries in the future.

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The Low Carbon Building Initiative in brief

Launched at MIPIM in 2022, the Low Carbon Building Initiative (LCBI) brings together major players in the European real estate to promote low-carbon buildings and halve the sector’s CO₂ emissions, based on Life Cycle Assessment. After a year of collaborative work and comparative data analysis between experts and building owners, LCBI launched the method on 25 January 2024, as well as the associated label, in 8 countries – Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom. This method is compatible with the main existing tools and standards (Taxonomy, Level(s), CRREM, RICS). Available publicly on the LCBI website, this European method simplifies the comparison of carbon footprints across Europe. It is aimed primarily at new buildings in the office, residential and hotel categories. Its aim is to eventually encompass all new, renovated and existing buildings.

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[1] Seeing is Believing: Unlocking the Low-Carbon Real Estate Market, LOTUF