The Climate Mobilization Act constitutes a profound shift in the regulation of commercial real estate in New York City—and all stakeholders including building owners, investors, sellers and purchasers, tenants, and lenders will need to consider how to quantify and allocate the costs of compliance (or non-compliance). In “Sustainable Buildings and Development: Carbon Emissions and the Recent Climate Mobilization Act of New York City“, colleagues Caroline A. Harcourt, Sheila McCafferty Harvey, and Jacob A. Axelrod discuss the potential impact of the newly enacted Climate Mobilization Act (CMA or the Act) for developers and building owners, tenants and lenders operating or underwriting loans in New York City.
As we previously reported, the popularity of the sustainability linked loan and the green loan have snowballed in recent years. However, it’s not just the loan market that’s taking the consideration of environmental, social and governance (ESG) practices seriously. Studies show that companies are coming under pressure from all sides to adopt sustainable practices.