“These are already positive examples of certifications at the master plan level [BREEAM Communities standard] for larger-scale urban development projects – for example, Liget Budapest or Agora Budapest – where not only sustainability accreditation at building level is the focus, but the sustainable integration of the entire project in an existing urban network is analysed, and a wide range of stakeholders are also consulted”, explains Zsombor Barta, President of the Hungarian Green Building Council (HuGBC).

“But beyond that, we also see that the EU’s new taxonomy regulation, which sets new industry standards for sustainable market operations, is also being strongly taken into account by different stakeholders, including systems standards for green building assessment, which also adopt the EU taxonomy. -related requirements within their own scheme. The EU taxonomy, ESG benchmarking or BREEAM/LEED ratings are all standards focused on the real estate sector in general and establish holistic sustainability frameworks, which are not sector specific,” he adds. -he.

HuGBC chair says EU taxonomy focuses on an ambitious path to net zero EU by 2050. To achieve this ambitious goal, the real estate sector needs to shift to more energy efficient and therefore more sustainable buildings , argues Barta.

This focus on energy efficiency is currently also being introduced in the updated BREEAM certification framework to align with the new EU taxonomy regulation.

must do more

“Overall, we need to do a lot more than we have up to now. The beautiful promises of certification of green buildings are no longer enough. We must have an ambitious strategy for net zero operations, which clearly shows the way forward, and this path must be constantly monitored; concrete measures to reduce emissions must be taken and notified. It’s something new, because it wasn’t necessarily the case with third-party certifications until now,” he adds.

Barta believes that sustainability should already have a significant impact on savvy and thoughtful architects and designers.

“If that wasn’t the case so far, that’s already a huge gap. However, in the very near future, sustainable design and energy efficiency measures will play an even greater role, as the financial sector also links its products to real sustainable measures,” he points out.

“ESG benchmarking or the EU taxonomy are two frequently used frameworks that are becoming increasingly important. While adhering to these frameworks is essential to receiving a beneficial financial product, designers must act and adopt these requirements very quickly. A lot of innovative ideas and progressive thinking are needed to actively reduce the building’s emissions, while at the same time offering a high level of liveability and comfort,” he concludes.

For more information on the MIPIM event, see MIPIM 2022 sees the return of large-scale exhibition events on page 5.

ESG issues are now “inevitable factors”

Sustainability considerations and environmental, social and governance (ESG) issues are now compelling factors for real estate investors that presuppose future planning and accountability, comments Csaba Zeley, Managing Director of ConvergenCE. “ESG, as an approach, has already become paramount at the start of investing, even in Hungary, as it is also decisive at exit, determining the marketability of the given property. When ConvergenCE, in partnership with Europa Capital, recently acquired Academia (formerly known as Akadémia Business Center), we are committed to making best use of the ESG framework when renovating and managing the project and aiming for net-zero emissions,” he said.

Hexum Group will build a solar park

The Hexum group, owned by the Hungarian Hydrocarbon Storage Association (MSZKSZ), is to build a 15 billion HUF (44.25 million USD) solar park in Sümeg (170 km south-west of Budapest). With a capacity of 25 megawatts (MW), the park is expected to be completed by spring 2024, said government commissioner Tibor Navracsics. It will also have a storage capacity of 6 MW, said MSZKSZ managing director Béla Bártfai. (source: MTI)

The Solaris Hydrogen bus in test

Arrivabus Kft., the service provider of the Budapest Transport Center (BKK), has tested a hydrogen-powered Solaris bus, according to profitline.hu. The vehicle, which produces water instead of exhaust gases, traveled on the 105 bus route for three days. Passengers could try the bus for free, BKK said. He added that the Urbino 12 hydrogen bus, powered by Solaris, a “revolutionary new technology”, is 15 meters long and has 37 seats.

ESG, sustainable development in the spotlight at MIPIM

More than ever, the consensus across the MIPIM real estate show in Cannes this month was how the industry could address the risks of possible outcomes being factored into real estate decision-making, says Guy Grainger, global head of sustainability and ESG at JLL. This reflects the extent to which broader environmental concerns are integral to issues in the construction, real estate and investment sectors. Most of the debates and panel discussions at the event focused on the reciprocal impact of sustainability and ESG issues on real estate markets and society at large.

House of Music Hungary wins Expo award

The House of Music in City Park, part of the government-backed urban regeneration project Liget Budapest, won the Special Jury Prize at the annual international real estate exhibition MIPIM in Cannes. The building, designed by Japanese architect Sou Fujimoto, was noted for aspects of sustainability, aesthetics and visitor experience in the jury’s evaluation. The architect was previously presented on the Budapest-Hungary stand at MIPIM.

This article first appeared in the print issue of the Budapest Business Journal on March 25, 2022.