According to a new Savills report, as part of its Impacts publication, the inconsistency in Energy Performance Certificate (EPC) standards in the European Union creates significant discrepancies in the classification of commercial buildings. A property that achieves the highest rating in one country may, in another, be classified up to four levels lower.
The lack of harmonisation in energy certification criteria occurs not only between countries, but also within national borders. In Belgium, for example, a building with equal energy performance (measured in kWh/m²/year) would receive a “C” rating in Flanders, but “D” or even “F” in Brussels, due to stricter limits imposed in the Brussels-Capital Region. The disparity extends to the European level: offices with an “A” certification show very different levels of primary energy consumption, which means that a building rated “A” in one country could receive only “D” or “E” in another.
Nuno Fideles, Head of Sustainability at Savills, states: “With the expected introduction of EPBD IV, between 2028 and 2030, a harmonisation of ratings should occur. However, as the study highlights, it will be crucial to analyse the actual energy consumption of buildings measured in kWh/m²/year. It is this metric that will make the difference for users and investors. Through CRREM analysis, we will be able to understand the true efficiency of the property and verify whether it meets the EU’s annual targets up to 2050, as well as the sustainability goals already set by tenants and investors.”
Chris Cummings, Founding Director, Savills Earth, comments: “The lack of standardisation of energy ratings in the EU and in the UK, which also uses the EPC as the main performance indicator, highlights a global challenge for international investors and occupiers: if disparities exist within the bloc itself, how can we compare even more distinct realities, such as Asia-Pacific or the US? Ideally, one should look beyond the EPC rating and assess actual energy consumption. Otherwise, there is a risk of dismissing buildings with lower ratings in stricter markets, but which are more energy efficient, in favour of assets with higher ratings in other countries, which may, however, perform worse.”
Sarah Brooks, Associate Director, Savills World Research, states: “Differences in sustainability standards between cities can create both challenges and opportunities. Investment strategies should consider local policies, market expectations and available incentives. Often, gaining competitive advantage means going beyond national requirements, aligning with city goals and long-term sustainability plans. Here, detailed due diligence is decisive.”