Energy efficiency: Cutting emissions and unlocking financial gains
Energy efficiency: Cutting emissions and unlocking financial gains
Decarbonization doesn’t mean spending more. With the right approach, it improves returns over time. Energy use, present in every organization, is a common denominator that can be reduced to cut emissions and lower operating costs.
The real estate sector illustrates this well. Time and again, the sector has shown that energy efficiency measures not only reduce CO₂ emissions but also deliver attractive paybacks, especially when applied across entire portfolios. Improving energy performance helps maintain asset value, makes financing easier to secure, and ensures compliance with tightening regulations. For existing buildings, operational emissions often represent the largest share of total emissions and energy efficiency is sometimes the only practical way to address them.
This article explores why tackling emissions associated with buildings is essential, highlights common energy efficiency measures, and explains the short- and long-term financial benefits for the real estate sector.
In the Netherlands, for example, office buildings larger than 100 m² must have at least energy label C since January 2023, with stricter requirements moving toward label A by 2030. The rationale is that buildings with better labels consume less energy and therefore produce fewer CO₂ emissions. Non-compliance can result in the building being prohibited from office use and may lead to fines or other enforcement measures.
Beyond regulation, market forces are accelerating change. The recent CBRE “European Lender Intentions Survey 2025” found that 70% of lenders will not lend against assets without sustainability credentials or a business plan for improvements. Many also offer better loan terms for borrowers whose assets meet sustainability criteria. Energy efficiency is no longer optional, it is central to compliance, asset valuation, and access to capital. Funds that fail to adapt face higher costs and declining demand.
Which upgrades to prioritize depends on factors like existing systems, budget, and desired impact. Common measures include:
In the long term, energy-efficient assets deliver even greater value. Lower emissions mean compliance with tightening climate regulations, avoiding penalties and costly retrofits. Reduced energy demand shields portfolios from rising energy prices and carbon taxes, while sustainability credentials unlock better financing terms and maintain asset valuations.
At BDO, we help you turn these opportunities into results. Our decarbonization services focus on strategic carbon reduction, integrating energy efficiency into your broader climate roadmap. We advise and provide you with the measures to make your buildings energy efficient as part of a comprehensive decarbonization strategy. The business case is clear: lower emissions, lower costs and stronger returns.
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The real estate sector illustrates this well. Time and again, the sector has shown that energy efficiency measures not only reduce CO₂ emissions but also deliver attractive paybacks, especially when applied across entire portfolios. Improving energy performance helps maintain asset value, makes financing easier to secure, and ensures compliance with tightening regulations. For existing buildings, operational emissions often represent the largest share of total emissions and energy efficiency is sometimes the only practical way to address them.
This article explores why tackling emissions associated with buildings is essential, highlights common energy efficiency measures, and explains the short- and long-term financial benefits for the real estate sector.
Regulatory and market drivers
From real estate funds to companies managing commercial buildings and developers of new projects, organizations across Europe are prioritizing energy efficiency because regulations have turned it into both a legal requirement and a financial imperative. The EU’s Energy Performance of Buildings Directive (EPBD) and the revised Energy Efficiency Directive set binding targets: all new buildings must be zero-emission by 2030, and the entire building stock must reach climate neutrality by 2050. As a result, member states introduced rules to ensure these goals are met.In the Netherlands, for example, office buildings larger than 100 m² must have at least energy label C since January 2023, with stricter requirements moving toward label A by 2030. The rationale is that buildings with better labels consume less energy and therefore produce fewer CO₂ emissions. Non-compliance can result in the building being prohibited from office use and may lead to fines or other enforcement measures.
Beyond regulation, market forces are accelerating change. The recent CBRE “European Lender Intentions Survey 2025” found that 70% of lenders will not lend against assets without sustainability credentials or a business plan for improvements. Many also offer better loan terms for borrowers whose assets meet sustainability criteria. Energy efficiency is no longer optional, it is central to compliance, asset valuation, and access to capital. Funds that fail to adapt face higher costs and declining demand.
Where to start?
Research across the EU consistently shows that reducing heating and electrical usage through improved insulation and airtightness, HVAC optimization , and smart controls such as energy management systems delivers the largest near-term emissions cuts per euro invested and a clear reduction in energy costs.Which upgrades to prioritize depends on factors like existing systems, budget, and desired impact. Common measures include:
- LED lighting systems – typically cut electricity use associated with lighting by 50–70%.
- High-efficiency HVAC with smart controls – reduce energy usage associated with heating and cooling by 15–30%.
- Insulation and airtightness improvements – lower heating demand by 20–40%.
- Energy Management Systems (EMS) – deliver 5–15% savings by optimizing energy use in real time.
Take action now
Energy efficiency is not just about meeting regulations, it’s the fastest way to cut emissions and reduce costs. Every kilowatt-hour saved translates into fewer CO₂ emissions and lower energy bills. In the short term, measures such as optimized HVAC systems, LED lighting, and smart controls can reduce energy consumption by 15–30%, cutting operating expenses by 10–20%. These savings improve Net Operating Income (NOI) and make properties more attractive to tenants and investors.In the long term, energy-efficient assets deliver even greater value. Lower emissions mean compliance with tightening climate regulations, avoiding penalties and costly retrofits. Reduced energy demand shields portfolios from rising energy prices and carbon taxes, while sustainability credentials unlock better financing terms and maintain asset valuations.
At BDO, we help you turn these opportunities into results. Our decarbonization services focus on strategic carbon reduction, integrating energy efficiency into your broader climate roadmap. We advise and provide you with the measures to make your buildings energy efficient as part of a comprehensive decarbonization strategy. The business case is clear: lower emissions, lower costs and stronger returns.
Contact Us
