BELGIUM Trends and Developments Contributed by: Pieter Puelinckx, Yves Moreau, Melissa Verplancke and Lothar Van Driessche, Linklaters
tions – in much the same way as green bonds or loans on the balance of financial investors. In countries where they are common, green leases have contributed to preserving the asset value of investments (especially where build - ings were constructed to high energy and envi - ronmental performance standards imposed by local authorities or prospective tenants), lower operational costs, higher occupancy rates and higher rents. Although the need to address ESG concerns in the real estate sector was translated into an array of legislation on various occasions, Bel - gium does not have any legislation defining or imposing green clauses in leases to date (unlike its neighbouring countries). In large residential, office or commercial real estate projects, there is an increasing demand for the incorporation of clauses with a sustain - ability dimension. Such clauses relate, among other things, to waste treatment and recycling, lighting and heating policies. Even though such green clauses can be included in any lease, full- blown green leases are typically still confined to non-residential properties, which can be partly explained by the fact that the requirement for an efficiently operated property – as mentioned in the technical screening criteria under the EU Taxonomy Regulation – only applies to non-res - idential buildings. Evaluating a property’s envi - ronmental impact often involves considering its energy efficiency rating as one of the most com - mon factors. However, a property’s environmental impact encompasses more than just its energy efficien - cy rating. It also includes aspects such as waste generation, travel to and from the building, and materials used in the fit-out.
Green and sustainability-linked lending Without going into further detail, investors in real estate may increasingly rely on green and sustainability-linked loans and bonds – respec - tively linked to achieving green (ie, EU taxono - my-aligned) objectives or incorporating sustain - ability-linked key performance indicators – when taking out external financing. Urban planning and social housing Urban planning regulations in Belgium contain a variety of urban planning prescriptions. Such urban planning prescriptions are diverse. They can include the obligation to design green are - as in a development project, as well as social and public functions. Such obligations are often inserted in the building permits for development projects (eg, the obligation to have a minimum offer of social housing in the framework of a resi - dential development). In parallel, a lot of atten - tion is paid to: • the quality-oriented management of the resi - dential environment; • the efficient use of the soil and its resources; • the preservation and development of the cul - tural, natural and landscape heritage; and • the improvement of the energy performance of the buildings. Moreover, building permits for development projects often contain specific urban planning charges with some sort of ESG angle (such as the construction of community parks and green spaces and the redevelopment of public infra - structures). Electromobility Under the existing EPBD, non-residential build - ings that have more than ten parking spaces must install at least one electric vehicle (EV) charging station and install cabling for one in
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