About
A total of ten construction and real estate activities are defined and covered by the EU taxonomy. The taxonomy requires each of the activities to be assessed against screening criteria for contributing to at least one of the sustainability objectives under the taxonomy, and against screening criteria for not harming any of the other sustainability objectives. The following three sustainability objectives are relevant for real estate activities: (i) Make a substantial contribution to climate mitigation, (ii) make a substantial contribution to climate adaption, and (iii) make a substantial contribution to circular economy.
Activity screening criteria for all three relevant sustainability objectives were implemented in Norway on 5th January 2024.
As an example, the minimum requirements for making a substantial contribution to the objective (i) climate change mitigation when conducting the following activities are, amongst other:
- Construction of new buildings: New buildings are required to have an energy performance (measured in primary energy demand) that outperforms the applicable NZEB standard by at least 10%. According to the guide published from the Ministry of Local Government and Districts on 31 January 2023, the maximum energy requirement for an NZEB office building is 76 kWh/m2/year, measured in delivered energy.
- Renovation of existing buildings: The refurbishment of buildings must either qualify as a "major renovation" within the meaning of the EU Energy Performance of Buildings Directive or result in a 30% improvement in energy performance.
- Installation, repair and maintenance of different technical installations: The installation, repair and maintenance of a number of technical installations etc., are encompassed by the screening criteria, for example the establishment of electric vehicle charging stations, retrofitting of insulation, installation of low-energy windows and doors, fitting of solar panels, etc.
- Acquisition and ownership of buildings: The minimum requirements distinguish between buildings constructed before and after 31 December 2020:
- Buildings constructed after 31 December 2020 must comply with the requirements applicable to new buildings.
- Buildings constructed before 31 December 2020 must either be awarded energy rating A or among the 15% best – nationally or regionally – by energy performance. Maximum energy requirements to be among the 15% best energy performing buildings nationally, was published by the Norwegian Water Resources and Energy Directorate on 6 June 2025. The requirements will apply until 31 December 2029. The energy performance shall be calculated in accordance with the method implemented in the revised Building Energy Labelling Regulation that entered into force on 1 January 2026. For more on the revised energy labelling methodology and its practical implications, see our article on the Energy Labelling Scheme
In addition to the abovementioned, a number of criteria are set out regarding minimum requirements to prevent an activity from doing significant harm to the other five sustainability objectives. These are related to, inter alia:
- Water consumption
- At least 70% of construction waste being prepared for reuse/recycling in accordance with the EU Construction and Waste Demolition Protocol
- Various measures to ensure the removal of hazardous construction materials
- Activities meeting defined minimum requirements for protection of various ecosystems and biological diversity
The practical application of the screening criteria give rise to questions as to how compliance should be assessed and documented under Norwegian standards. On 1 July 2026, Norsk Eiendom, Grønn Byggallianse, Entreprenørforeningen - Bygg og Anlegg and Rådgivende Ingeniørers Forening published industry guidelines for the following two activities: (i) the construction of new buildings and (ii) the acquisition and ownership of existing buildings. The guidelines translate each screening criterion into practical methodologies and documentation requirements for the Norwegian market. They provide, inter alia, guidance on how to document compliance with the NZEB and 15% energy-efficiency thresholds, as well as relevant criteria for do no substantial harm (DNSH). A third guideline covering renovation is expected later in 2026.
As mentioned above, the EU Commission has proposed amendments to the screening criteria, which will affect the requirements set out in this section, if and when adopted. Norsk Eiendom, Grønn Byggallianse, Entreprenørforeningen - Bygg og Anlegg and Rådgivende Ingeniørers Forening have indicated that the guidelines are based on the current screening criteria and that they will publish updated guidance once, and if, the revised screening criteria are adopted.
Who does it impact?
Property owners and property developers.
At first, we assume that the screening criteria will primarily affect the demands the property industry meets from its lenders. Companies who are subject to direct reporting obligations under the Taxonomy Regulation are also incentivized to choose real estate investments that meet the taxonomy's criteria, rather than those that do not.
In practice, we expect the screening criteria for the property industry to also affect market practices in general and government requirements in the longer run. The screening criteria are therefore assumed to have an impact on the property industry in its entirety.
Status: In force
The EU Taxonomy Regulation has been enacted. The Taxonomy Regulation entered into force in Norway 1 January 2023 through a new Norwegian act (Nw.: Lov om offentliggjøring av bærekraftsinformasjon i finanssektoren og et rammeverk for bærekraftige investeringer).
Relation to other initiatives and regulations
Participants
The EU and Norway under the EEA Agreement
Thommessen's comments
The screening criteria for the real estate industry define a high standard for new buildings, as these are required to over-comply with the Nearly-Zero Energy Building (NZEB) requirements. Each country will be able to define its own NZEB level. In Norway, NZEB was first defined in the guide published by the Ministry of Local Government and Districts on 31 January 2023. One of the proposed amendments to the screening criteria by the European Commission is to replace the current NZEB standard with the new Zero-Emission Building (ZEB) standard. This was introduced in the revised [Lenke: Energy Performance of Buildings Directive] which entered into force in the EU on 24 May 2024.
For refurbishment projects and the acquisition and ownership of existing buildings, the requirements are less strict than for new buildings, and presumably it may be easier to meet the taxonomy's screening criteria. This is consistent with the EU Technical Expert Group's position that increased refurbishment and reuse of the existing building stock are key sustainability objectives for the real estate industry. To foster the financing of renovations, the European Commission has proposed a new screening criterion under which acquisition and ownership of existing buildings is considered to make a substantial contribution to climate change mitigation if the building’s primary energy demand has been reduced by 60% or more over a period of 10 years or less.
To help undertakings apply and document compliance with the screening criteria in a Norwegian context, Norsk Eiendom, Grønn Byggallianse, Entreprenørforeningen - Bygg og Anlegg and Rådgivende Ingeniørers Forening have published a guidance for the activities construction of new buildings and the acquisition and ownership of existing buildings, see link below.
Thus far, the screening criteria primarily measure the energy demand of buildings, meaning that market players are not yet rewarded for other sustainability measures. However, the criteria are intended to be dynamic. The EU Technical Expert Group has signalled a need for criteria covering additional factors, particularly the total carbon footprint of buildings, including emissions from the production of building materials.