News
The energy savings imposed by the French State have entered an operational phase.
Through many successive laws, the legislator has sought to strengthen the energy performance of buildings located in France. To this end, it has created a number of regulations which however differ depending on whether the building is for residential use or is “for tertiary use”. While these regulations primarily concern the owner, they cannot be ignored by bankers, since they are likely to affect the value of the property financed or given as security.
EXECUTIVE SUMMARY
Since the Climat et Résilience (Climate and Resilience) Law of 22 August 2021, the possibility of renting a building for residential use depends, in fact, on its energy class: buildings with a poor rating on their Energy Performance Certificate will be gradually excluded from the rental market.
Similarly, the Tertiary decree of 23 July 2019 is now in force, with owners of buildings for tertiary use being required to make the declarations necessary to calculate their energy reduction target by 31 December 2022.
A lender who has financed the purchase of a building or who has received a building as security must therefore be careful, as the value of buildings now depends, partly, on their energy performance.
In this new context, contractual engineering must therefore be used to assist lenders and their interests.
DEVELOPMENTS
By many successive laws, the legislator has sought to improve the energy performance of buildings. To this end, it has created a number of regulations which however differ depending on whether the building is for residential use or is “for tertiary use”.
While these regulations primarily concern the owner, they cannot be ignored by bankers, since they are likely to affect the value of the property financed or given as security.
I - The regulations relating to residential buildings
In the case of residential buildings, the legislator has intervened on several occasions, firstly to improve the information provided to the purchaser on the energy performance of the building being considered for purchase, and then to try to encourage the owner to undertake renovation work.
For this purpose, the legislator has used the Diagnostic de Performance Énergétique (DPE) (Energy Performance Certificate).
The Energy Performance Certificate, introduced in 2006, which became “enforceable” on 1 July 2021 (ELAN Law of 23 November 2018), is now likely to limit the uses that the owner wishes to make of its building.
Indeed, the Climat et Résilience (Climate and Resilience) Law of 22 August 2021 not only amended the regulations for calculating the Energy Performance Certificate, but also strengthened its legal scope.