Is there the potential for green assets to receive reduced cost of funds in debt/equity markets?
The Standards make no assertion that there will be or should be a reduced cost of funds – this is for the market to ultimately determine. Given the Standards enable capital market investors to transparently identify numerous risk factors that tangibly impact finance-based decisions, it is apparent that added transparency will greatly aid the capital markets and allow market participants to more efficiently sort their preferences using the price mechanism with the result being a greater capital preference for those assets that transparently demonstrate a lower overall risk profile. Do these Standards address any negative risks regarding product-specific maintainability, durability and reliability as well as IAQ issues regarding building penetrations and other issues. Not directly. These issues either primarily pertain to the construction process or to items that are addressed in the Property Condition Assessment (“PCA”) report.
