Market feedback from testing the proposed EU Taxonomy Technical Screening Criteria for Buildings
In July 2020, a consortium of EU-based Green Building Councils (Green Building Council España (GBCe), the German Sustainable Building Council (DGNB), the Danish Green Building Council (DK-GBC), and the Austrian Green Building Council (ÖGNI)) initiated a study on the "Evaluation of the market-readiness of the proposed EU Taxonomy technical screening criteria for Buildings".
The consortium was joined by a group of 24 financial market participants from Spain, Germany, Austria and Denmark, representing different stakeholder groups directly impacted by the EU Taxonomy regulation: mortgage lenders, financial service institutions, real estate developers, insurance companies, investment funds, pension funds, institutional investors and valuation firms.
These are, among others: ACCIONA INMOBILIARIA S.L.U, Allianz Real Estate GmbH, AP Pension, ATP Ejendomme A/S, Berlin Hyp AG, CORESTATE CAPITAL ADVISORS GMBH SUCURSAL EN ESPAÑA, Danica Pension, DEAS A/S, Deka Immobilien Investment GmbH, Dreyer Logar & Partner, ECE Projektmanagement GmbH & Co. KG, H.A.U.S. Healthy Buildings S.L., ING N.V., LaSalle Investment Management Kapitalverwaltungsgesellschaft mbH, Naussauische Heimstätte, NEINOR HOMES S.A., NREP, PensionDanmark A/S, PKA A/S, Strabag Real Estate GmbH, Teichmann & Compagnons Property Networks GmbH, UBM Development GmbH, value Development GmbH.
The study tested 53 projects, covering the following three Taxonomy activities:
The study initiators and its participants welcome the initiative of the European Commission to create a common language for what constitutes a sustainable investment through a reliable framework of reference that makes their efforts comparable, plannable and scalable to minimise economic risks associated with the impending climate crisis.
While unwaveringly supportive of the Taxonomy principles, this diverse project group is concerned that the recently published technical screening criteria might not find the desired uptake by the market if released in their current form, thereby lessening the real-world impact of the Taxonomy regulation in Europe and beyond.
The need for ambition and changes to the scope and depth of the criteria are fully acknowledged, however, the draft Delegated Act document for consultation, released at the end of November created a situation of uncertainty among the market participants. Therefore, any changes in ambition need to be proportional in relation to the overall objectives of the Taxonomy and need to be actively managed to ensure market buy-in.
Recommendations regarding New Construction and Renovation:
Recommendations regarding Individual Measures:
Recommendations regarding Acquisition and Ownership:
Recommendations regarding DNSH: