The three key highlights from the discussion were:

𝟭. Sustainable finance products have been helpful to market players

The panellists shared that green finance products offer significant advantages, primarily lower interest rates. In the face of economic instability post-COVID and global uncertainties, these lower rates enable developers to retain more capital and operate more prudently. As Prof Johan summarized, leveraging green bonds help firms differentiate themselves in the sector.

𝟮. Challenges remain, nonetheless, in fulfilling the targets of green finance products

Small and medium-sized enterprises (SMEs) often struggle with the resources to track, report and fulfil the sustainability performance targets set by green finance products. Inoovative soluations were discussed, including non-linear structures for achieving targets, implementing brown premiums, and providing alternative benchmarks

𝟯. Future sustainable finance solutions must address carbon emissions

Buildings emit significant greenhouse gases through both embodied and operational carbon. As such, the panel agreed that, moving forward, sustainable finance in real estate sector should focus on supporting the supply chain of building materials and hard-to-abate sectors to reduce emissions and transition to greener technologies. Some of the panellists have already initiated working groups to develop solutions for these issues.

The session concluded with Prof Johan emphasizing the need for a common ecosystem to support all stakeholders.