Estonia plans six-year renovation deadline for old non-residential buildings

Estonia's Climate Ministry plans to require owners of non-residential buildings in the poorest energy classes to renovate them within six years. The amendments to the Building Code would transpose a European Union directive, while the real estate sector warns the requirement will cause difficulties, particularly in rural areas. The draft legislation is soon to reach the Riigikogu, Estonia's parliament.

What the rules require

The directive covers non-residential buildings in poor condition, including commercial and public buildings, warehouses and office buildings. Buildings in energy classes G and H must reach at least class F by 2030 and at least class E by 2033.

Class G and H buildings are generally old and uninsulated. For example, a 1970s brick apartment building in Tallinn's Lasnamäe district might be rated F, while 1990s buildings with individual improvements such as new windows might reach class E.

According to the draft legislation, renovation will cost nearly €290 million in total, with an average payback period of about six years. Renovated buildings have lower heating costs and rise in value.

Industry objections

Ingvar Allekand, chairman of the EKFL, Estonia's national real estate association, told ERR the change would create a major problem for property owners and the wider economy. He said it would impose unreasonable costs and that businesses, especially in rural areas, would struggle to cope. He pointed to agricultural and regional businesses already closing and jobs being lost. Allekand argued that member states have considerable freedom in implementation and that a more lenient form of transposition would be the solution.

Ministry response

Lauri Suu, head of the construction department at the Ministry of Climate, said these requirements are part of a broader amendment covering all buildings in which people carry out activities, with requirements differing by building type. He said Estonia has implemented the absolute minimum the directive requires. Amendments can be proposed once the draft reaches the Riigikogu.