New energy certificates directive shifts from recommendations to sanctions

Green Forum
Only 14% of office buildings across the Prague market have achieved an Energy Performance Certificate in class A or B, with older properties having a higher probability of being classified in lower energy performance classes. An internal Savills survey, covering dozens of properties, has revealed that a significant proportion of Prague's office stock is facing the need for modernisation. 

The vast majority of office buildings are rated C or below or lack available EPC data altogether. While the absence of data may sometimes be coincidental, newer and better-equipped buildings are far more likely to share their energy credentials and have all their paperwork in order.

"The situation is further complicated by the fact that energy performance certificates often have limited informative value. For older buildings, the EPCs are either overestimated – due to outdated methodology – or underestimated if post-certificate improvements haven't been reflected," says Jan Jurčíček, Head of Building & Project Consultancy at Savills. One of the main issues is that EPCs are based on model operational parameters that often do not apply in practice – for example, indoor temperatures of 20–22°C or standard building operating hours. In reality, energy demands are commonly higher. "Our data from technical due diligence and operational audits show that actual energy consumption of office buildings can exceed EPC figures by tens of per cent," adds Jurčíček.

"Energy Performance Certificates are often mistakenly considered as a guarantee of sustainability or a low carbon footprint. In reality, however, they only assess the building's energy performance against legislative requirements and do not always reflect the overall carbon footprint or operational efficiency. Moreover, EPCs available on the market are based on different versions of decrees, which are not mutually comparable, as no official conversion methodology exists," says Barbora Jansová, ESG Consultant & Project Manager at Savills. 

From an administrative perspective, however, EPCs remain important – especially for banks when assessing real estate portfolios. "For financing institutions, an EPC is certainly a valuable and measurable input within their ESG strategy, but it is by no means the only factor," adds Barbora Jansová.

The methodology for calculating EPCs is continuously evolving. “It is quite common for a building to undergo renovation but, due to a new regulation, remain classified in the same energy performance category as before,” adds Barbora Jansová. The situation is even more complex in the case of historical buildings, where the obligation to obtain an EPC often does not apply, and meaningful energy-efficiency upgrades are frequently restricted.

“The new EPBD directive introduces clear boundaries – such as the renovation of the worst-performing buildings by 2030 and the obligation for new constructions to achieve near-zero emissions from 2028. This marks a fundamental shift from recommendations to enforceable sanctions,” explains Marek Koyš, Lead Sustainability Consultant at Savills. “For property owners, it therefore pays to think strategically – to supplement EPCs with carbon footprint assessments, CRREM Risk Assessments, or EU Taxonomy alignment, all of which support the management of environmental risks and long-term investment planning.”

The mentioned European Directive EPBD IV, which must be transposed into Czech legislation by the end of May 2026, represents a fundamental shift in approach. Voluntary recommendations are becoming binding and time-bound obligations: minimum energy performance standards (MEPS) will require the renovation of 16% of the least energy-efficient buildings by 2030, and a further 10% (a total of 26%) by 2033. 

Newly constructed buildings from 2028 onward will have to be effectively zero-emission. In addition, the updated EPC will be accompanied by a so-called Building Renovation Passport (BRP), which defines a plan for gradual improvements aimed at achieving the target of a zero-emission building stock by 2050.

RECOMMENDED
7R Group releases 2025 Sustainability Report
Real estate

7R Group releases 2025 Sustainability Report

7R Group has published its 2025 Sustainability Report, prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD), the simplified European Sustainability Reporting Standards (ESRS) and the EU Taxonomy. The report is the company's third, published voluntarily despite the absence of a formal reporting obligation in 2025. 7R is a commercial real estate developer active in Poland, the Czech Republic and Germany, with a delivered portfolio exceeding 2 million sqm and a further 3.9 million sqm at various stages of preparation.

GTC reaches 99% certified commercial portfolio across CEE
Real estate

GTC reaches 99% certified commercial portfolio across CEE

GTC Group has published its 2025 ESG Report, covering sustainability performance across seven Central and Eastern European markets. The report, prepared in accordance with GRI standards, spans a commercial portfolio of 38 office buildings and 6 shopping centres in Poland, Hungary, Serbia, Romania, Bulgaria and Croatia, alongside a residential portfolio. The company reports that 99% of its commercial buildings are now certified under LEED, BREEAM or DGNB standards, or are undergoing recertification.

How can cities fight water scarcity and drought?
Real estate

How can cities fight water scarcity and drought?

Water scarcity is no longer limited to historically dry regions of Southern Europe. According to the European Drought Observatory, drought conditions intensified across France, Germany, Austria, Hungary, Romania and the United Kingdom in June 2026. Low water levels in German rivers are affecting shipping and industry, while England's 2025 drought led to water restrictions for millions of people and historically low reservoir levels.

Crestyl secures €185 million loan for Prague office park from pbb & Helaba
Real estate

Crestyl secures €185 million loan for Prague office park from pbb & Helaba

Crestyl Group has secured a €185 million medium-term refinancing package for its Dock In Office Park in Prague, jointly underwritten by Deutsche Pfandbriefbank (pbb) and Helaba. The transaction capitalises on the lenders' long-term involvement with the Prague 8 commercial development. Prior to this agreement, both pbb and Helaba successfully provided the financing for all five individual phases of the waterfront office park.

Three Prague office buildings earn Breeam sustainability ratings
Real estate

Three Prague office buildings earn Breeam sustainability ratings

Office buildings Anděl 17, Panorama Business Center and Victoria Vyšehrad from Českomoravská Nemovitostní's managed portfolio have obtained Breeam International In-Use certification, confirming high levels of sustainability and energy efficiency.

RECOMMENDED FROM THE HOME PAGE
Energy

Solar module makers show first financial stability in over a year

The newly published Edition 2 2026 of the PV Module Manufacturer Ranking Report shows the first signs of stabilisation in the solar manufacturing sector's balance sheets after more than a year of steady deterioration. The table tracks the Altman Z-Score, a widely used measure of bankruptcy risk, for 64 publicly listed photovoltaic module manufacturers, and has now been refreshed with first-quarter 2026 data.

Energy

Romanian floating solar pioneer partners with university

The Faculty of Hydrotechnics from the Technical University of Civil Engineering Bucharest and Waldevar Floating PV have signed a strategic partnership to accelerate innovation in renewable energy and prepare the next generation of specialists in floating photovoltaic technologies.

Energy

Rezolv Energy launches Bulgaria's St. George solar park

Rezolv Energy has commissioned the St. George solar park in Silistra, Bulgaria, marking the company's first project to become operational. The 225 MW facility reached full operational status in under three years from acquisition of development rights.