Tallinn pushes Climate Ministry to update building energy rating methodology
The City of Tallinn is urging the Ministry of Climate to update building energy rules, saying the current methodology hikes costs for both developers and homebuyers.
City officials in the Estonian capital say the weighting factors used to convert energy consumption into primary energy don't reflect actual energy use or costs.
"Under the current regulation, the fact is that if you built the exact same building, it would earn an A energy rating in neighboring countries, but a lower rating here," said Deputy Mayor Kristjan Järvan (Isamaa).
Thanks to banks' regulatory rules and risk policies, he continued, Estonian homebuyers end up paying higher interest for the same property.
Järvan stressed that these factors aren't just technical but rather political decisions through which a state can influence the use of various heating solutions.
"There's no uniform mandatory EU methodology for calculating these weighting factors; member states set their own based on their [respective] climate and economic policy choices," the deputy mayor said, adding that it's really a question of priorities.
"Do we keep our methodology stricter than our neighbors' or update it to better support investment, increase housing supply and ease families' debt burdens?" he asked.
The city noted that Estonia's current methodology is based on a 2018 framework, despite major advances in construction and energy since then.
A preliminary analysis by the city and figures from the Tallinn University of Technology (TalTech) energy performance certificate (EPC) calculator suggest developers face €24–48 million in extra costs each year to achieve A energy ratings.
The exact amount depends on project size, heating systems, energy needs and the technical measures used to meet the standard.
The impact passes on to buyers. Banks are increasingly linking loans to energy class, offering lower interest rates for A-rated properties. If the methodology makes A-class homes too costly, however, annual borrower costs could go up €25–82 million, depending on loan volumes, interest rates and how banks apply the ratings to their terms.
Järvan said revising the way buildings' energy efficiency is calculated could boost housing supply, encourage investment and reduce long-term debt burdens.
"It's important that building energy efficiency calculations support economic growth and housing investment, rather than creating additional barriers through regulation," he said.
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Editor: Aili Vahtla
