Investors to demand CO₂ data: Sustainability enters building codes

Austria is embracing a more sustainable approach to construction with the upcoming OIB Guideline 7, which will form the basis for state building regulations. This significant shift is driven by an updated EU directive on the energy performance of buildings, requiring a life cycle assessment (LCA) for every new construction project. The LCA will evaluate the total environmental impact, specifically CO₂ emissions, throughout a building's entire lifespan – from the manufacturing of materials and construction to its operation and eventual demolition.

Robert Stadler, who leads the development of the new guideline at the Austrian Institute for Building Technology (OIB), anticipates that these changes will make construction more sustainable. Christian Aplienz, an expert at real estate consultancy CBRE, believes this regulation will structurally reshape the property market. "A good CO₂ balance will be a central value driver in the future, particularly through better access to financing, increasing investor demand, and a lower stranded asset risk," Aplienz stated. He advises project developers to consider CO₂ optimization in their planning now, as investors will increasingly expect life cycle data and may discount assets with poor CO₂ performance.

The new requirements will take effect on January 1, 2028, for buildings with a usable area exceeding 1,000 square meters, and one year later for all new constructions. Stadler explained that the LCA is just the first step; limits for life cycle greenhouse gas potential are also planned, though a specific date for their implementation has not yet been set. Research is underway, supported by the FFG and led by TU Graz and the University of Innsbruck, to establish these future limits. The OIB is also consulting with the building materials and construction industries to understand what is feasible.

Stadler emphasized that the new OIB Guideline aims to leverage ecological potential rather than prohibit specific construction methods or materials. The roadmap for introducing these future limits, which will significantly influence building practices in Austria, is expected by the end of this year. Daniela Trauninger, head of sustainability management at Strabag, a major construction group, highlighted the importance of the ambition level of these future limits, noting that countries like Denmark already have stringent values that encourage the use of CO₂-reduced and renewable materials, as well as constructive measures.