TAXONOMY-ALIGNED CONSTRUCTIONS VS LOCAL ENERGY EFFICIENCY STANDARDS IN SUSTAINABLE FINANCING

This paper presents the changes in the behaviour of banks related to sustainable financing in the real estate sector. The new market rules will trigger financial and administrative impact on the actors in the real estate market. Yet, they will also assist the decarbonization of the European building stock which corresponds to European Union aim to be climate-neutral by 2050. The analysis provides answers to the question why the actors in the real estate sector shall have an in-depth understanding of the (EU) Taxonomy legislation (the Sustainable Finance Framework) and be prepared to provide reliable data related to their real estate investment by reporting on Environmental, Social, and corporate Governance (ESG). The article offers an insight into the EU Taxonomy test in the real estate sector and practical guidelines on the relevant applicable legislation.