May 18, 2022   SOURCE: BusinessWire

KBRA UK Releases Research - European Energy-Efficiency Initiatives for CRE: An Introduction

KBRA UK (KBRA) releases a research report on energy performance certificates (EPCs) in the European Union (EU) and United Kingdom (UK), as well as the current regulatory landscape. The EU member states and the UK have published a series of legislation and proposals in their commitment to achieving carbon neutrality by 2050. This report highlights the key proposals that will impact commercial real estate in these jurisdictions.

Key Takeaways

  • Energy performance certificates are used to measure energy efficiency in buildings and are currently the standard energy certificate used across the UK and EU.
  • The EU and UK have published a series of regulatory proposals and legislation targeted at modernising energy performance across new and existing building stock.
  • Minimum EPC ratings are being introduced at the national level under the EU’s minimum energy performance standards and UK’s minimum energy efficiency standards.
  • Renovation costs are expected to be funded by the private and public sector through a series of support initiatives overseen by governments. It is largely expected that expenses related to energy improvements will be cost-effective in the long term, as a higher quality building is likely to attract higher demand and reduce operational costs.
  • Building energy efficiency is expected to remain in the spotlight over the coming years, as more dedicated legislation and further EPC reforms are announced.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.