The green transition in buildings is not only solved by buying clean energy

Finnish real estate and construction experts have been following the pending legislation on energy efficiency in buildings with great concern. There may be fundamental changes in the way the E rating of a building’s energy performance is determined. The changes proposed in the summer consultation would shift the focus of the assessment from the energy performance of a building to the origin of the energy it uses. As a result, the assessment would treat Finns in different regions unequally and slow down investments to improve the energy efficiency of buildings.

The E-factor is a calculated measure of the energy efficiency of a building. This determines the energy class of the building as stated in the energy performance certificate. For example, home buyers and property owners use it to assess the energy efficiency of a building and to compare buildings of the same type. The link between the E-A rating and the actual energy consumption of a building is not always straightforward. However, it plays an important role in the comparability of the energy performance of buildings, as a criterion for green financing and in describing the magnitude of the energy bill.

The national implementation of the Energy Performance of Buildings Directive is currently under preparation. With the changes proposed in the consultation, even a high energy-consuming building could achieve a good E rating, for example by purchasing renewable energy or by being located in an area where local district heating is low-emission. The E-factor of a completely identical building could be different depending on where the building is located and the type of energy supply contract the building owner has.

Getting a good E rating just by buying green energy distorts the comparison of energy performance of buildings and undermines investments in energy efficiency improvements. The larger energy bill will ultimately be paid by building owners and tenants.

Energy companies have done a good job in cutting emissions from Finnish energy production. But the green transition cannot be left to energy companies alone. The building stock plays an important role now and in the future.

Energy efficiency in buildings supports the whole energy market: energy-efficient buildings consume little energy even when renewable energy is scarce. For consumers, good energy efficiency is the best way to prepare for energy price spikes.

We hope that there will continue to be effective incentives for the design, construction and ownership of energy-efficient buildings – buildings that are of high quality and retain their value. That is why the E-permit should continue to give a clear indication of the energy efficiency of the building, rather than the green credentials of the local energy company.

Signatories

Konsta Tuokko, Energy & Sustainability Business Director, Sustera Oy

Jouni Ylhäinen, Director, Buildings and Real Estate Division, Sweco

Timo Räikkönen, House Business Director, Sitowise

Annina Peisa, Real Estate & Construction Business Area Manager, Ramboll

Tytti Bruce-Hyrkäs, Director of Sustainability Business Development, Granlund Oy

Mikko Keinänen, Director of Sustainability, Leo Maaskola Engineering Office

Sasu Karkiainen, Director, Industrial and Building Services Engineering, A-Insinöörit

Jonni Ahonen, Managing Director, LeaseGreen Group Oy

Tanja Parkko, Acting Head of Unit, Public and Commercial Spaces, AFRY