What criteria apply in the real estate sector?
The EU taxonomy comprises several environmentally relevant objectives. Primarily relevant for real estate are (1) climate protection and (2) adaptation to climate change .
In order for an economic activity(new construction, renovation of existing properties, individual renovation measures, acquisition and ownership of properties) to be classified as taxonomy-compliant, either environmental objective 1: Climate protection or environmental objective 2: Adaptation to climate change must be fulfilled.
In addition, the "Do No Significant Harm" (DNSH) principle must be adhered to. This means that the economic activity must not have a significant negative impact on other environmental objectives, such as
- Protection of water and marine resources
- Circular economy
- Prevention of environmental pollution
- Protection of biodiversity
This means, for example, that extensive building renovations to improve energy efficiency must not lead to increased water pollution or improper waste disposal.
Goal 1: Climate protection
The criteria for climate protection in the real estate sector aim to reduce greenhouse gas emissions and improve energy efficiency. The primary energy requirement is an important benchmark here. It comprises the energy consumption of the building and the total amount of energy required to operate the building, including heating, cooling, ventilation and hot water.
- Significance for new buildings: Must meet or fall below the national requirements for nearly zero-energy buildings (NZEBs). They are characterized by high energy efficiency and a very low primary energy requirement, which is predominantly covered by renewable energies. The exact requirements for primary energy demand can vary from region to region, but are typically at least 10-20% below the requirements of the Building Energy Act (GEG).
- Significance for renovations of existing properties: The renovation must meet the requirements of a "comprehensive renovation" in accordance with the EU Buildings Directive or lead to a reduction in primary energy demand of at least 30%. The renovated building must present an energy performance certificate that demonstrates a significant improvement in energy efficiency.
- Significance for individual renovation measures: Every measure must demonstrably contribute to energy savings and/or reduce greenhouse gas emissions.
- Significance for the acquisition and ownership of real estate: To be considered taxonomy-compliant under the "climate protection" objective, the building's energy consumption must be among the top 15% of the national or regional building stock. The property must have a current energy performance certificate that demonstrates a high energy efficiency class (usually class A or B).
Goal 2: Adaptation to climate change
The criteria for adapting to climate change in the real estate sector aim to increase the resilience of buildings to climate-related risks. These include:
- Risk assessment and management: Climate-related risks such as floods, heatwaves and storms must be identified and assessed. A plan to mitigate these risks must then be drawn up and implemented.
- Adaptation measures for resilience: Measures must be integrated and materials and techniques used to increase the resilience of the building (e.g. use of heat-resistant materials; flood protection).
- Reporting: Reporting includes the identification and assessment of risks arising from climate change. The climate change adaptation plan and the adaptation measures and their impact must be documented and presented transparently, for example in annual reports for companies subject to the NFRD. This also includes explaining how the DNSH principle is implemented.
