Construction & Real Estate

Construction and real estate is one of the most scrutinised sectors in the EU Taxonomy. Buildings account for approximately 40% of EU energy consumption and 36% of energy-related CO2 emissions, making this sector critical for achieving climate neutrality targets.

The seven activities cover the full building lifecycle: construction of new buildings with near-zero energy demand, renovation of existing buildings achieving significant energy performance improvements, installation of energy efficiency equipment, EV charging infrastructure, energy measurement and control devices, on-site renewable energy technologies, and acquisition and ownership of compliant properties.

Climate change adaptation requirements are especially rigorous for buildings. The Taxonomy mandates a full Climate Risk and Vulnerability Assessment (CRVA) covering physical climate hazards -- including heat stress, flooding, wind, and precipitation changes. For new construction, this means designing for future climate conditions using IPCC-aligned scenarios. For existing buildings, adaptation plans must identify material physical risks and implement proportionate solutions. This is where high-resolution microclimate analysis, including computational fluid dynamics (CFD), becomes essential for demonstrating compliance at the building level.