Thirteen real estate parties set new standard: firm cap on CO₂ from construction materials

Today, institutional real estate asset managers and housing associations have signed a joint commitment to structurally reduce CO₂ emissions in the construction sector. For the first time, Dutch real estate organisations have agreed to work with both target values and strict ceiling values for the CO₂ emissions associated with construction materials. This measure accelerates the transition to smarter, circular, and bio-based construction, setting a new benchmark for the sector.

Providing Clarity

In the commitment signed by the thirteen parties  collectively managing over € 60 billion in invested assets and responsible for tens of thousands of new homes in the coming years  they agree to apply both a target and a ceiling value for the material-related CO₂ emissions of their new-build projects. These emissions stem from the production, transport, processing, and application of construction materials. Construction materials account for 13% of global CO₂ emissions, and the sector is responsible for approximately 50% of raw material consumption.

The signatories have established a reduction pathway through to 2050, which will be evaluated annually and recalibrated where necessary. In doing so, they provide clarity to the market: projects that exceed the ceiling value will, in principle, not be eligible for acquisition.

‘This is a breakthrough,’ says Norbert Schotte (Building Balance). ‘These major real estate players collectively exert significant influence on the direction of the construction sector. They are demonstrating that they take this responsibility seriously. And the market knows where it stands: construction projects that fail to meet sustainability standards will no longer be developed or acquired. In this way, they are jointly steering the sector towards sustainable construction practices.’

Three pathways to sustainability

The commitment outlines three pathways to reduce material-related emissions:

• Smarter construction, through more efficient use of materials and the greening of concrete and steel;
• Circular construction, through reuse and designs that enable disassembly;
• Bio-based construction, using renewable materials such as timber, flax, hemp, and straw.

This approach contributes to the climate goals of the Paris Agreement: a 55% reduction in emissions by 2030 and a fully climate-neutral sector by 2050. It also encourages reduced depletion of primary raw materials and fosters innovation across the construction value chain.

Who is involved

The commitment was signed today by Achmea Real Estate, Altera, Amvest, a.s.r. real estate, Bouwinvest, CBRE Investment Management, de Alliantie, Eigen Haard, NLV, Rochdale, Vesteda, Woonstad Rotterdam and Ymere.

The initiative is supported by the Association of Institutional Property Investors in the Netherlands (IVBN). NEPROM also recognises the urgency of more sustainable construction methods and will soon publish practical guidance to help realise the lower CO₂ emission values set out in the reduction pathway.

Putting it into practice

With the signing of this commitment, a shared standard has been established. In the coming months, the parties will further develop how this will be implemented in their procurement and development policies, how monitoring will be conducted, and how practical experiences will be shared. A first evaluation will take place in spring 2026, during which the values may be further refined, and the approach may be extended to include renovation projects.

Through this joint initiative, institutional investors and housing associations are setting a new standard for a climate-neutral, circular, and future-proof built environment.