# Anticipating real estate value in the era of climate regulations

**Source**: https://wp.unil.ch/hecoutreach/anticipating-real-estate-value-in-the-era-of-climate-regulations/
**Parent**: https://www.unil.ch/hec/en/home/menuinst/faculte/presentation/medias.html

As climate and energy regulations become stricter in Switzerland, one question arises: **what is the real value of a building today if costly renovations will be legally required tomorrow ?** [Research](https://e4s.center/resources/reports/anticipating-the-energy-discount-a-valuation-framework-for/) conducted by Eric Jondeau (HEC Lausanne) and Alexandre Pauli (E4S–EPFL), in collaboration with E4S, proposes rethinking real estate value through a financial lens applied to climate transition risks – offering practical insights for investors, property owners and policymakers navigating an evolving regulatory landscape.

The researchers have developed a financial tool capable of anticipating how future energy renovation requirements may already affect a property’s value today. Their work reframes green value not as a sustainability premium, but as a reduction in future financial risk – by integrating tomorrow’s regulatory constraints and costs into today’s valuation.

Their findings show that buildings exposed to higher future regulatory costs and uncertainty already carry a measurable discount today, highlighting how climate policy is progressively reshaping real estate valuation.

This research is available [on E4S platform](https://e4s.center/resources/reports/anticipating-the-energy-discount-a-valuation-framework-for/). [An interview](https://e4s.center/news/interview-on-the-green-value-of-real-estate/) with the researchers also provides more detail on the methodology and its practical implications.