Risk analysis of green retrofits
Risk analysis of green retrofits presented at FRAP international finance conference
The University of Cambridge team presented their preliminary findings at the 16th FRAP Finance, Risk and Accounting Perspective and 2nd SSFII - Social and Sustainable Finance and Impact Investing conferences in Cambridge from 25 to 27 September 2017. The twin conferences aim to facilitate the exchange of innovative ideas in the finance and accounting areas and are organised by the ACRN Oxford Academic Reseach Network. The RentalCal presentation by Donald Stevens focussed on the risk dimensions of energy efficiency retrofits and presented a sensitivity analysis of the main variables affecting this investment decision in the private rental market. The results underline that green retrofit investments are generally resilient to modest increases in interest rates and energy prices.
The University of Cambridge team is led by Dr Franz Fuerst in the Horizon 2020 EU project "Incentives through Transparency: European Rental Housing Framework for the Profitability Calculation of Retrofitting Investments (RentalCal)"
Read the paper here
Cambridge research team also hosted national advisory board expert seminar
The University of Cambridge project team convened the second national advisory board meeting and expert seminar in Cambridge on 29 September 2017. The board includes experts from industry (ThinkStep, Green Door Valuation), government (Department of Business, Energy and Industrial Strategy) as well as valuation associations (TEGoVA), social enterprises (Energy Savings Trust) and landlord representatives (National Landlords Association). The event gave experts a forum for providing feedback on an innovative software tool that is currently being developed as part of the RentalCal project and enables landlords to conduct a detailed and realistic viability analysis of potential energy efficiency retrofits in the private rented sector. The seminar concluded with a discussion of the major risk factors and mitigation strategies for upgrading the energy efficiency standards of buildings in a changing macroeconomic, technological and regulatory context. The experts agreed that rigorous economic analysis that informs decision-support tools such as the one being developed as part of this project are key to increasing the large-scale uptake of energy efficiency retrofits in the housing market with a view towards achieving the ambitious national and international greenhouse gas emissions targets.