Universal Principles for Carbon Pricing in the Real Estate Sector

Urban Land Institute (2024) | Retrofitting, Information, Technology

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In order to meet global climate goals, the real estate sector must accelerate its decarbonization efforts. Internal carbon pricing can provide a strategic lever to align financial planning with climate objectives, mobilize private capital, and prepare for evolving regulation. This document defines carbon pricing as the internal assignment of a monetary value to greenhouse gas emissions, typically through shadow pricing or fee-paying models.

The approaches can evolve over time, expanding with organizational priorities. The principles outlined are designed for broad application across the real estate value chain, offering flexible, high-level guidance to support adoption while avoiding technical complexity. Reference materials are provided to deepen understanding and encourage meaningful action.

Universal internal carbon pricing principles (reproduced exactly from the document):

Principle 1: Take a whole life carbon approach - All st…