Spanish bank BBVA and US-based real estate technology-focused venture capital firm Fifth Wall announced today a new partnership aimed at investing in decarbonization solutions for the construction and real estate industries.
The new partnership targets opportunities for one of the key emerging focus areas for climate action. Buildings and real estate are among the most significant contributors to the global climate challenge, accounting for approximately 40% of carbon emissions, according to the International Energy Agency and UN Environment Programme. They are also among the hardest sources of emissions to replace, given their long-term nature.
Brendan Wallace, Co-Founder & Managing Partner, Fifth Wall, said:
“As the real estate industry’s contributions to climate change come to light, it’s critical that stakeholders from across the globe come together in order to achieve a more sustainable future. We are thrilled that BBVA has taken a leadership position in climate through its commitment to Fifth Wall’s Climate Fund and we look forward to introducing the company to critical decarbonization technologies that can advance its sustainability priorities.”
Under the new partnership, BBVA will invest in companies seeking decarbonization solutions that address the entire lifecycle of buildings – from materials and operation to demolition and recycling – through Fifth Wall’s Climate Fund. The fund prioritizes investments that support the industry’s net zero transition, particularly in areas including raw materials, logistics and supply chain, construction, energy efficiency, heating and cooling, waste management, as well as innovations to support transparency and effective corporate governance.
By leading the financing of the development of these technologies, BBVA said that it aims to gain exposure to disruptive climate technologies, knowledge about business opportunities and risks in the area and the ability to offer unique advice to its clients.
Javier Rodríguez Soler, BBVA’s Global Head of Sustainability, said:
“Fifth Wall Climate Fund invests in companies and startups that develop innovative technologies and solutions to reduce carbon emissions from construction and real estate. This goal is fully aligned with BBVA’s sustainability strategy: to support the transformation and transition of the most emission-intensive industries.”