EU Standardizes Energy Performance Certificates

The European Union is moving to unify energy performance certificates across all member states. The regulation aims to increase the value of homes and apartments rated A+ to H by incentivizing lower CO2 emissions. The new energy scale will help standardize how energy efficiency is communicated throughout the EU. New regulations will allow energy scales ranging from A+ to H to more heavily influence real estate financing conditions and property value development. While there is currently no mandatory renovation requirement, individuals can seek individual renovation plans created by energy consultants. Research indicates that nearly 60 percent of all buildings in Germany are in urgent need of renovation. The certificates are expected to retain their ten-year validity period. New EU-wide regulations will require houses and apartments to receive a new type of energy certificate starting at the end of May. Properties with lower CO2 emissions are expected to see an increase in value under the new rules. The implementation follows recent updates to consumer benefits including fuel discounts and electric vehicle subsidies. The existing energy scale of A+ to H will be shortened by two levels to a scale of A to G. Certificates must be issued digitally and are required during property sales or new rentals.