The EU Taxonomy has emerged as a pivotal framework in the rapidly evolving sustainability landscape, shaping how real estate and financial stakeholders define and achieve “green” standards.
This article explores the core principles and challenges of the taxonomy, emphasizing its role in transforming the real estate sector.
Why the EU Taxonomy Matters for Green Buildings
The EU Taxonomy provides a standardized framework to determine whether a building qualifies as environmentally sustainable. This is critical for accessing green financing, enhancing asset value, and demonstrating ESG leadership to investors and stakeholders.
For real estate operators, it means rethinking project design, operations, and retrofits to meet stringent performance benchmarks. For financial institutions, it involves adopting robust due diligence processes to assess the eligibility of assets and portfolios under the taxonomy’s requirements.
EU Taxonomy for Green Buildings: core elements
Technical Screening Criteria
The taxonomy establishes clear benchmarks for:
- New Construction: Compliance with nearly zero-energy building (NZEB) standards;
- Renovations: Achieving at least a 30% improvement in primary energy demand.
These criteria ensure that projects contribute to climate goals and sustainable development.
Climate Risk Assessment:
- Conducting detailed analyses to identify exposure to physical and transitional climate risks, including extreme weather events, flooding, and regulatory shifts;
- Utilizing advanced risk modeling tools to provide quantitative insights into vulnerabilities across assets and portfolios;
- Aligning assessments with international frameworks and data sets.
Climate change Mitigation:
- Designing and implementing adaptive strategies to reduce identified risks, such as enhanced flood defenses, improved building envelopes, or heat mitigation measures;
- Developing operational and structural plans to ensure long-term resilience, while meeting the EU Taxonomy’s climate adaptation requirements;
- Advising on the integration of nature-based solutions, such as green roofs or landscaping, to address climate-related challenges;
- Transitioning to a low-carbon economy. This includes strategies like: optimizing Embodied Carbon via LCA analysis and reducing/neutralizing Operational Carbon via energy consumption optimization.
Biodiversity and Ecosystem Protection
- Beyond energy performance, the taxonomy highlights the importance of preserving biodiversity, reducing ecological disruption, and integrating natural solutions into developments.
Sustainable Use and Protection of Water and Marine Resources:
- Aiming to ensure that economic activities contribute to the efficient management of water resources, preserving their quality and availability. Activities should avoid negative impacts on aquatic ecosystems and promote the sustainable use of water.
Transition to a Circular Economy:
- Encouraging the adoption of production and consumption models that emphasize reuse, repair, recycling, and waste reduction. Economic activities must contribute to resource efficiency and the minimization of waste, supporting the circularity of materials.
Pollution Prevention and Control:
- Focusing on reducing emissions of pollutants into air, water, and soil. Activities must implement measures to prevent or minimize pollution, ensuring they do not cause significant harm to human health or the environment.
How GET Supports Real Estate and Financial Operators
At GET we assist Clients in navigating the complexities of the EU Taxonomy by providing tailored solutions across key areas:
- Climate Risk Assessment and Mitigation: Conducting in-depth analyses to identify vulnerabilities and develop actionable strategies;
- Biodiversity Integration: Ensuring developments align with biodiversity and ecosystem preservation goals;
- Decarbonization Pathways: Designing energy-efficient solutions and strategies for carbon reduction;
- Technical Screening Criteria Compliance: Translating taxonomy requirements into actionable roadmaps;
- Data Collection and Reporting: Establishing efficient systems to ensure transparency and regulatory alignment;
- Strategic ESG Alignment: Enhancing stakeholder confidence by integrating taxonomy goals with broader ESG strategies.
We support real estate operations in ESG Due Diligence processes aligned with the EU Taxonomy. GET goals is to evaluate the status of owned properties, assess potential opportunities in acquisition or disposal scenarios, and identify opportunities for redevelopment through technical and economic evaluations. We assist Clients in navigating the complexities of the EU Taxonomy
by providing assessments that align this regulation with international sustainability certification protocols such as LEED and BREEAM.
