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Carbon Risk Real Estate Monitor (CRREM)

CRREM assesses real estate emissions and defines CO₂ pathways for 1.5 °C or 2 °C targets — ideal for ESG, risk management, and net-zero strategies.

CRREM

CRREM is a tool for assessing the climate compatibility of buildings. It defines country-specific CO₂ thresholds and pathways that can be used to evaluate properties based on their emissions and align them with 1.5 °C or 2 °C targets.

How it works

CRREM provides so-called Carbon Intensity Pathways — in other words, thresholds for how much CO₂ a building may emit per m² and year. If a building exceeds these pathways, it is considered a stranded asset — meaning it may be exposed to economic and regulatory risks.

CRREM takes into account both direct emissions (e.g. heating systems) and indirect emissions (e.g. electricity consumption).

The aim is to reduce emissions and direct investment toward climate-compatible buildings.

Typical applications

 • ESG reporting within the framework of the EU Taxonomy or SFDR
 • Risk assessment for transactions, refurbishments, or portfolio decisions
 • Benchmarking of existing buildings against decarbonization pathways
 • Development of net-zero strategies in the real estate sector
 • Linking CO₂ targets with energy-related refurbishment measures

Key figures & influencing factors

 • CO₂ intensity (kg/m²/a): annual emissions per m² of usable floor area
 • CRREM pathway: target value that declines year by year in line with the 1.5 °C or 2 °C target
 • Stranded year: year from which a building exceeds the thresholds
 • Decarbonization rate: percentage reduction in CO₂ emissions per year required to remain aligned
 • Energy-CO₂ alignment: link between emissions targets, refurbishment needs, and modernization planning

Summary

CRREM is a practical decision-making tool for owners, investors, and project developers who want to make their buildings climate-ready. It creates transparency around climate risks, helps meet regulatory requirements, and makes an important contribution to the strategic decarbonization of real estate portfolios.