Edition 2020 Ninth edition

EVIP 1 The Impact of the Energy
Performance of Buildings
Directive on Property Valuation
1. Introduction
2. Scope
3. Definitions
4. Commentary

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IV. - EVIP 1: The Impact of the Energy Performance of Buildings Directive on Property Valuation
European Valuation Standards 2020
1. Introduction
EVS 6 — Valuation and Energy Efficiency advises valuers to integrate the cost of 
energy efficiency valuation in their determination of Market Value when the obli-
gation to energy renovate is imposed by law by a fixed date or at a certain inflec-
tion point (e.g. rental, sale). This Information Paper, on the other hand, concerns 
the still currently more common situation in which the owner retains control over 
when to renovate. When that decision is freely taken, a certain number of energy 
efficiency renovation obligations originating in EU law ensue. This Information 
Paper provides guidance on those obligations and their impact on value.
2. Scope
This Information Paper applies to consideration of energy efficiency issues in the 
valuation of property in the context of the measures to be taken by EU member 
states under Directive 2010/31/EU as amended by Directive 2018/844 (the Energy 
Performance of Buildings Directive). The Commentary here is based on that Direc-
tive. Valuers should be aware that while member states are bound to implement 
the Directive, they are free to set higher standards.
3. Definitions
3.1. 
The definitions cited here are, unless otherwise stated, drawn from the Energy 
Performance of Buildings Directive 2010/31/EU as amended by Directive 2018/844 
(referred to here as "the Directive").
3.2. 
"'Building' means a roofed construction having walls, for which energy is used to con-
dition the indoor climate."
 
(Article 2(1))
Note — This definition excludes from the energy performance standards and Energy Perfor-
mance Certificate (EPC) regimes a number of structures that might normally be referred to 
as buildings, particularly those where no effort is made to heat or cool them.
3.3. 
"'Energy performance certificate' means a certificate recognised by a Member 
State or by a legal person designated by it, which indicates the energy performance 

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European Valuation Standards 2020
IV. - EVIP 1: The Impact of the Energy Performance of Buildings Directive on Property Valuation
227
of a building or building unit calculated according to a methodology adopted in ac-
cordance with Article 3." 
(Article 2(12))
3.4. 
"'Energy performance of a building' means the calculated or measured amount of 
energy needed to meet the energy demand associated with a typical use of the build-
ing, which includes, inter alia, energy used for heating, cooling, ventilation, hot water 
and lighting." 
(Article 2(4))
3.5. 
"'Nearly zero-energy building' means a building that has very high energy per-
formance as determined in accordance with Annex 1. The nearly zero or very low 
amount of energy required should be covered to a very significant extent by energy 
from renewable sources, including energy from renewable sources produced on site 
or nearby." 
(Article 2(2))
3.6. 
"'Technical building system' means technical equipment for space heating, space 
cooling, ventilation, domestic hot water, built-in lighting, building automation and 
control, on-site electricity generation, or for a combination thereof, including those 
systems using energy from renewable sources, of a building or building unit."`
(Article 2(3))