An evaluation model for an optimal decarbonisation process in the built environment

Purpose – The goal is to deliver a decision-support framework to both public and private entities engaged in energy retrofit investments in the property market. Design/methodology/approach – The evaluation algorithm that is being offered takes an innovative approach to financial and economic analysis. Its foundation is a market-driven/cost-driven method, drawing logic from operational research and goal programming. Findings – The algorithm is tested to a real estate portfolio yielding an optimal asset retrofitting schedule. The ranking list is determined by taking into consideration a variety of parameters, including investment costs and total CO2 emissions from energy retrofit initiatives. The Carbon Risk Real Estate Monitor’s (CRREM) emission targets for 2030 are employed as a reference point in the process of creating a ranking list of the assets that compose the real estate portfolio under examination. Practical implications – The evaluation algorithm will allow to determine, in a real estate portfolio, a priority list of assets to be enhanced. This is accomplished by taking into account the client’s financial resources, the overall cost of the intervention programmes for each asset, and the effects that each asset would have on the environment and the energy once the suggested retrofit programme is put into place. Originality/value – The study proposes a methodological approach that seeks to balance the optimisation of energy performance, the reduction of environmental effect, the promotion of social well-being and economic sustainability in the context of managing the current property sector.