Taxonomy Regulations – An incentive to improve the building stock built before 2020 in Sweden

Panel: 7. Policies and programmes for better buildings

This is a peer-reviewed paper.

Authors:
Åsa Wahlström, CIT Energy Management AB, Sweden
Tommy Sundström, CIT Energy Management, Sweden

Abstract

The European Green Deal aims for the EU to reach no net emissions of greenhouse gases by 2050. The Taxonomy Regulation is one action that is planned to implement the European Green Deal. The Delegated Regulation specifies the technical screening criteria under which certain economic activities qualify as contributing substantially to climate change mitigation and climate change adaptation. For acquisitions and ownership of buildings, the delegated regulations include those within the top 15 per cent in terms of energy performance on a national or regional scale. The criteria imply that buildings built before 31 December 2020 will be included if they are within the top 15 per cent of the national or regional building stock, expressed as operational Primary Energy Demand (PED). This study aims to define the top 15 per cent of residential and non-residential buildings in Sweden by using the national database of Energy Performance Certificates. The paper explains how PED can be calculated from previous building regulations and how to analyse the data to obtain a representation of the top 15 per cent in different building categories.

The analysis shows that a calculation of PED ought to be based on the building regulations in force for primary energy efficiency with normalised consumption of hot water and the number of buildings registered in the database for energy performance certificates (EPCs). The building stock ought to be divided into multi-residential buildings, different categories of non-residential buildings, and single-family houses, while the division is not relevant for year of construction or climate zone.

It needs to be easy for banks and other investors to assess if a building is in the top 15 per cent of best buildings. Based on these criteria and established limit values for primary energy efficiency for the different building categories, a direct assessment can be made from an EPC issued after 1 September 2020.

The limit values for primary energy efficiency correspond to the energy efficiency classes in the Swedish EPC system. To be in the top 15 per cent of best buildings, multi-residential buildings need to have energy efficiency class A, B or C, while non-residential premises may include some buildings of energy efficiency class D. For single-family houses, energy efficiency class A or B applies and a few buildings of class C.

The limit values for multi-residential buildings and non-residential premises are produced based on data that include the main building stock in the analysis. The result for single-family houses is significantly less reliable as only 21 per cent of the building stock is represented in the data.

The data that are used and the analysis contain some uncertainties that need to be taken into account when determining the limit values for primary energy efficiency for the different building categories. These uncertainties can be reduced in a future analysis with a new extract from the database with EPCs.

The taxonomy aims to provide an incentive for sustainable investments, which in turn provide an incentive to improve the building stock. As buildings become more energy efficient, the limit value to be in the top 15 per cent of best buildings will gradually improve. Limit values for primary energy efficiency will thereby need to be updated annually if the taxonomy is to contribute to meeting the aim of the European Green Deal.