ᐅ Why are banks suddenly asking to see energy performance certificates?

Hello everyone,

I have recently been thinking about why banks are increasingly requesting energy performance certificates for real estate transactions. Does anyone have experience with this?
It seems that banks are now paying more attention to the energy efficiency of properties. This apparently relates to new renovation initiatives they are promoting to encourage a more sustainable real estate market.
Many people wonder which specific measures and regulations apply here and whether it is true that lacking a current energy performance certificate might even cause difficulties in selling a property or securing financing.

Has anyone had similar experiences or knows more about the background of this development?

A lot has apparently passed you by. Take a look on Wikipedia under the term Energy Performance Certificate. Since 2004, the Energy Saving Ordinance has been in effect, further developed into the Building Energy Act since 2020.

DresdenHaus schrieb:

Why do banks nowadays increasingly require energy performance certificates for property transactions? Does anyone have experience with this?

Regulatory requirements. Banks no longer receive an audit opinion for their balance sheets if they do not consider ESG matters, including energy performance certificates of the properties they finance.

DresdenHaus schrieb:

That without a current energy performance certificate, you could even face difficulties when selling property or obtaining financing.

This has been legally regulated for years, and you can be fined if you do not provide a certificate when renting or selling.

Thanks to the transformation driven by Blackrock and others toward an ESG-friendly society.
It is actually quite remarkable how quickly this initiative/narrative has spread in the Western world, especially in Europe.

As much headache as listed buildings sometimes cause, fortunately you are exempt from this when selling.

DresdenHaus schrieb:

... I have recently been thinking about why banks increasingly require energy performance certificates for real estate transactions.

When we applied for our follow-up financing last month (July 2024), we had to present the energy performance certificate to every loan broker. We were told that the energy standard affects the value of the house and is therefore relevant for loan approval.

DresdenHaus schrieb:

... that without a current energy performance certificate, one might even face difficulties selling a property or obtaining financing.

Penalties can be quite substantial if you sell a house without an energy performance certificate (except for certain exemptions). Besides that, I assume a potential buyer will find it difficult or even impossible to get financing for the desired property without this certificate. As mentioned, there are exemptions.