Market Views, ESG | Wiersholm: Legal Update – ESG and Real Estate

Summary

• From 1 January 2026, an updated version of the Regulations on Energy Labelling will enter into force. Among other things, the changes include a simplification of the system, where the energy label will now consist of only a single letter from A to G, and the heating rating will be removed. Furthermore, the energy label shall be calculated after a new standard and the energy source be weighted with a factor. Energy sources that reduce the power system load flow, for example district heating are "rewarded", and buildings with such solutions are therefore expected to receive a better energy label than before.

• The EU has now, on 16 December 2025, reached a final agreement on Omnibus I. The final Directive means that the thresholds for which companies are covered are raised, but also that the substantive rules are much more weakened than in the original regulations. Only companies with more than 1,000 employees and a net turnover of more than Euro 450 million in the EU are subject to the sustainability reporting requirements under the CSRD.

• The EU's latest Energy Performance of Buildings Directive was finally adopted in the EU in April 2024. Earlier this autumn, it was circulated for comments here in Norway. The aim of the Directive is to improve the energy performance of buildings and to achieve a decarbonised building stock by 2050. The consultation will form the basis of the Ministry of Energy's assessment of the Directive. The deadline for comments is 5 January 2026.

Amendments to The Regulations on Energy Labelling

Background and purpose

The purpose of the Regulations on Energy Labelling is to "help secure information about the energy performance of homes, buildings and technical facilities and the possibilities of improvement through specific energy measures". The Regulations on Energy Labelling shall therefore, inter alia, encourage the choice of more energy efficient solutions when investing.

Energy performance certification of buildings provides the market, including owners, tenants, investors and home buyers with an overview of the energy efficiency of commercial buildings and homes. The energy performance certificate is also a key tool for banks and other financial institutions when considering "green loans".

The updated Regulations on Energy Labelling (adopted on 2 April 2025) will enter into force on 1 January 2026. The amendments come as a result of the Government's action plan for energy efficiency of 2023, which foreshadowed amendments to the energy labelling scheme.

The adopted amendments in the regulations are briefly summarised below:

• Simplification of the system: The energy label will now consist of only one letter from A-G, and the heating rating based on a colour scale will disappear. This will make the energy labelling easier to understand, as well as making it easier to compare energy requirements in buildings.
• Updated calculation standard (NS 3031.2025): The new standard will ensure more accurate calculations and will be more closely aligned with EU regulations.
• Weighting factors: The energy source shall be weighted with a factor. Electricity will be weighted with a factor of 1, while district heating, district cooling and biofuel, for example, will be weighted with a factor of 0.45. District heating, heat pumps, etc. that reduce the power system load flow are "rewarded", and buildings with such solutions will therefore, according to the Government, receive a better energy rating than before.

The grading system

According to the regulation and the new Section 10b, a building must have an energy consumption at least 15 percent lower than the energy requirements set out in TEK17 in order to achieve energy label A. Buildings that meet the energy requirements in TEK17 will correspond to energy label B. Furthermore, the upper threshold for energy label G will be set so that buildings estimated to be the least energy-efficient 15 per cent in each building category will receive energy label G. Energy labels between C and G shall be distributed so that the energy ratings become equally spaced.

An energy performance certificate will continue to be valid for up to 10 years from the date of issue.

Relaxation of Sustainability Reporting Requirements – CSRD etc.

Background and status

After many years of work to implement the EU's Corporate Sustainability Directive (CSRD), this year saw the first round of reporting for the largest companies (wave 1). However, early this year it became known that major amendments were in the pipeline through the proposed Omnibus package. Shortly afterwards, the entry into force was postponed by two years for companies that were originally to be covered by the reporting obligation for the financial years 2025 and 2026 (waves 2 and 3). This was also referred to as the "Stop-the-Clock" Directive.

The purpose of the Omnibus package is to reduce regulatory burdens and strengthen the competitiveness of companies in the EU.

On 16 December 2025, the EU reached a final agreement on the Omnibus I-Directive, which aims to simplify the rules for sustainability reporting (CSRD) and due diligence assessments (CSDDD). The adopted amendments are briefly summarised below:

CSRD – simplified sustainability reporting

The Omnibus I-Directive means that the thresholds for which companies are covered are raised, but also that the substantive rules are much more weakened than in the original regulations.

Only companies with more than 1,000 employees and a net turnover of more than Euro 450 million in the EU are subject to the sustainability reporting requirements under the CSRD. This is a significant increase from the original requirement of at least 250 employees and means that far fewer companies will be subject to reporting requirements.

There is also agreement that the reporting requirements themselves should be further simplified, with a stronger focus on quantitative information, while sector-specific reporting requirements become optional.

Furthermore, a digital platform with templates and guidelines for both national and EU reporting requirements will be established.

It is positive that steps are being taken to reduce the regulatory burden on European companies in terms of sustainability reporting. At the same time, it may be questioned whether it is right to exclude approximately 90 percent of the companies that were previously subject to the reporting obligation. Several players nevertheless point out that it is an advantage that there will be more predictability regarding which companies are covered, what is expected of them, and what kind of information these may request from their contracting parties.

The taxonomy

The Taxonomy Regulation sets out reporting requirements for companies covered by the CSRD. The original CSRD proposal was intended to bring more companies under the reporting obligation under the taxonomy. An amendment that raises the thresholds for being covered by the CSRD also affects the number of companies that will be subject to reporting requirements under the taxonomy. This means that a significant proportion of Norwegian companies that have been subject to taxonomy reporting requirements, will also be exempted from this reporting obligation.

Next steps in the EU and Norway

On 16 December 2025, the European Parliament voted on the Directive, which will become final EU law once it has formally been adopted by the Council and published in the EU's Official Journal (expected in 2026).

The CSRD has been implemented into Norwegian law through Chapter Two of the Accounting Act. The Stop-the-Clock Directive was implemented in Norway earlier this year, meaning that Norwegian companies have received the same postponements as EU companies. Norwegian authorities have not yet clarified when the Omnibus I amendments will be implemented into Norwegian law, but it has been clearly signaled that all EU changes will also be implemented in Norway to ensure harmonization with the EU's reporting rules. Norwegian authorities are expected to begin the process of considering and implementing the rules as soon as the amendments have been formally adopted by the EU.

It is also worth noting that the amended rules include an evaluation mechanism that allows for the expansion of the scope of both the CSRD and the CSDDD in the future.

The Energy Performance of Buildings Directive

Background and status

The EU's new Energy Performance of Buildings Directive was finally adopted in the EU in April 2024. EU member states have two years to implement the Directive into their national legislation. However, for Norway, which is a member of the EEA, this will follow a different process and this autumn the Directive was circulated for comments here in Norway. The deadline for comments is 5 January 2026.

The Directive is a so-called framework directive. This means that the member states themselves choose the method and requirement levels within specified frameworks when the directive is to be implemented into the respective countries' legislation. The requirements in the directive are minimum requirements and will not prevent the member states from maintaining or introducing stricter measures (provided such measures are compatible with EU law).

Summary of the main elements

The aim of the Directive is to improve the energy performance of buildings and to achieve a decarbonised building stock by 2050. The Directive is fairly comprehensive, and includes, among other things, requirements for:

• A gradual introduction of energy requirements for existing commercial buildings, with the 16 percent worst-performing buildings to be renovated by 2030, and the 26 percent worst-performing buildings by 2033.
• A reduction in the average energy performance of the national building stock by 16 percent by 2030, and by 20-22 percent by 2035 (compared to 2020 levels),
• A gradual introduction of requirements for solar energy installations where technically, financially and practically feasible.

The above bullets points are only a few examples of what the Directive covers.

Next steps in Norway

The consultation will form the basis of the Ministry of Energy's assessment of the Directive in the further EEA process, including the assessment of any need for Norwegian adaptations.

Historically, Norway has been relatively slow to implement EU directives relating to building energy, among other things. It is difficult, and too early, to tell whether and to what extent the Directive will affect the requirements imposed on commercial buildings in Norway. It is also unclear when the Energy Performance of Buildings Directive will come into force in Norway. However, improving the energy efficiency of buildings is considered essential to achieving the EU's goal of climate neutrality by 2050, and energy efficiency is also a focus at the national level here in Norway.

Team