Green Light for Climate-Neutral Buildings

The real estate industry is a major emitter of greenhouse gases and therefore plays a key role in Germany’s climate policy goals: Emissions are to be reduced by at least 65 % by 2030 compared to 1990. In addition, individual industries such as the building sector have permissible annual emission levels that apply until 2030. Germany aims to have a climate-neutral building inventory by 2045. The EU has set itself the Green Deal target of decreasing net greenhouse gas emissions by 55 percent by 2030 and to reduce them to zero by 2050.

The reduction is more urgent than ever: In last year’s report on 2020 greenhouse gas emissions, the German Federal Environmental Agency revealed that the building sector emitted 120 million metric tons of CO₂, exceeding the amount of emissions allowed annually by 2 million metric tons. And since the building sector accounts for more than one third of EU-wide CO₂ emissions and around 35 percent of the total final energy consumption, this sector needs to be decarbonized with an even greater urgency to achieve the goal of climate neutrality.

New constructions still consume a lot of energy and release large amounts of CO₂. But the inventory of existing buildings, which accounts for around 80 percent of construction activity in Germany, offers an even greater potential for making up ground. Despite their small share of the total building inventory, commercial properties are crucial for achieving the climate protection targets.

There is no way around the goal of climate-neutral buildings. Especially as, in addition to the German Federal Climate Change Act and the Building Energy Act, the acute pressure to meet and disclose certain ESG sustainability criteria is increasing due to the Taxonomy Regulation and disclosure regulations. Climate protection is therefore increasingly becoming a mandatory criterion in reporting and for financing.

This involves more than “just” mandatory regulations: Buildings must become climate-neutral to meet the needs of an increasingly sustainable society, to combat ongoing climate change, and to minimize the impact of serious environmental disasters.

A building is considered climate-neutral when the carbon footprint of its operation is less than or equal to zero over the period of a year. In an ideal scenario, a climate-neutral building conserves more greenhouse gases than it emits and thus even acts as a CO₂ sink. For the resulting greenhouse gas emissions, there are different footprint assessment scopes over the entire life cycle of a building:

• Operation of the building alone
• Production and construction
• Use until the end of life
• Recycling of the building

Climate-neutral buildings provide new opportunities for innovation in the real estate industry. To take advantage of them, there must be an increased investment in low-emission and climate-friendly energy sources and in sustainable technologies and materials, such as:

• Sourcing renewable energies without using fossil fuels
• Self-generation of renewable energy (photovoltaics, wind)
• Energy-efficient building envelope (roof, façade , windows, etc.)
• Energy-saving building technology (ventilation, elevators, etc.)
• Energy-efficient building systems and sustainable user behavior
• Low-emission use of materials and recyclable construction

In addition, new strategies and processes are needed to comply with the ESG criteria that are by now also well-established in the real estate industry. This is necessary because, in accordance with the EU Taxonomy Regulation or the German Federal Climate Change Act, successive proof must be provided of fulfilling the requirements or of achieving certain climate-related targets.

The first step toward reaching the ESG goal of “climate protection” is the Sustainable Finance Taxonomy, which has been applicable since January 1, 2022, and according to which only financial products – and thus properties – that meet these criteria may be called environmentally sustainable.

This poses new challenges for the real estate industry, in addition to the day-to-day business activities. To master these challenges, we provide selected services to support you on your way to taxonomy compliance:

• Collection of all required data
• Establishment of a data management system
• Detailed data analysis and reporting
• In-depth exchange with third parties and suppliers
• Review of documents for taxonomy compliance
• Support with verification and with the reporting of measures to meet taxonomy requirements
• Issuance of a Taxonomy Certificate of Conformity and award of a label

This much is sure: Climate-neutral buildings are the future. It is also sure that with our extensive experience in the real estate industry and the energy sector, we are the right partner at your side to help you achieve your goal.

Whether it is taking inventory, evaluating the carbon footprint, developing roadmaps to climate protection or climate neutrality, ESG sustainability reporting or compliance with the Taxonomy Regulation – we give the green light for your future of climate-neutral buildings.