New EU Energy Directive: what it means for commercial real estate

In April 2024, the European Parliament adopted a major update to the Energy Performance of Buildings Directive (EPBD)—and it’s now officially in force. While the direction of travel has been clear for some time, this revision puts regulatory weight behind it. For the first time, minimum performance standards for non-residential buildings are legally binding across the EU: class F by 2030, class E by 2033.

But the most significant shift isn’t just the targets. It’s the infrastructure being built around them—data registers, renovation passports, and full lifecycle visibility. The EU isn’t just asking for efficiency. It’s mandating transparency.

This is about more than compliance

The directive marks a clear move toward transparency. Alongside updated energy thresholds, it introduces renovation passports, national building registers, and more robust operational reporting. These additions point to a future where performance is no longer privately managed or loosely defined. The data will be centralised, comparable, and public.

What this means for commercial real estate is simple: if you don’t have a clear, verified understanding of how your assets perform, you’re at risk. Once performance data enters the public domain, any gap between what you report and what’s actually happening on the ground becomes a reputational and financial liability.

What about the UK?

While the UK is no longer bound by EU law, the direction of travel is similar. The UK’s Minimum Energy Efficiency Standards (MEES) already ban new leases on commercial properties rated below EPC band E, and by 2030, all leased non-domestic buildings are expected to reach band B. That’s a sharper target than the EU’s class E. And with future updates to the UK’s Energy Performance of Buildings framework under review, pressure is only building. For UK organisations with EU assets—or those eyeing investment or partnerships across Europe—alignment with EPBD-style transparency isn’t optional. It’s a signal that the UK market, too, is shifting from ad-hoc compliance to systemic accountability.

Decisions need to be rooted in real data

Energy Performance Certificates (EPCs) offer only part of the picture. Without real-time visibility, strategic decisions around retrofits, asset use, and financial planning remain reactive. The longer that visibility gap remains, the harder it becomes to respond to tightening regulation with confidence.

Those ahead of the curve aren’t waiting. They’re building internal clarity now—using operational data to validate performance, identify inefficiencies, and prioritise actions that deliver measurable impact. That clarity allows for faster, better-informed decisions that protect long-term value and resilience.

We believe action starts with clarity. You can’t improve what you can’t see—and that’s where many sustainability plans stall. We help leaders identify waste, track performance in real time, and unlock the insights that drive down risk before it shows up in your compliance report.