EU climate law will transform real estate. Valuation practice had better follow

Twenty years of legislation have given the European Union an obligation to energy efficiency renovate 3% of the central government building stock per annum or as alternative to obtain an Energy Performance Certificate (EPC) through inspection procedures of heating and cooling systems of state-owned buildings. Since then renovation in Europe stays at 1 to 2% per annum, locking in energy inefficiencies for decades. The European Commission calculates that this kind of progress gets us to climate neutrality in about a hundred years. During that time the EU also set GHG reduction targets and the target for 2020 was mostly met. The problem is that targets set three years ago didn?t keep pace with climate warming. That?s why the EU introduced two new additional targets: climate neutrality by 2050, and a 55% GHG emission reduction by 2030. The Commission is now pushing with proposals for include them in binding legislation.

Michael MacBrien*

SIR*IUS 3/2022