- Do EPCs need to be provided on sales and lettings and if so, are there any statutory minimum requirements?
- Is there any legislation requiring new or existing buildings to satisfy ESG requirements?
- How widespread are green lease provisions? Are they regulated or market driven? What areas do green leases commonly cover? Do they apply to both residential and commercial leases?
- What do institutional investors and banks/other financing institutions require in terms of the green lease drafting? Is there any market standard approach to green lease drafting? Do you report on the lack of any green lease provisions in your due diligence reports on an acquisition or refinancing?
- How are green lease provisions enforced?
- How widespread is the certification of buildings (e.g. LEED, BREEAM, NABERS, WELL etc.)? Are they regulated or market driven? How is this documented between the Landlord and Tenant?
- Are there any additional regulatory requirements that need to be met or contractual provisions that need to be considered regarding the installation of alternative energy supply systems (e.g. rooftop photovoltaic systems)?
- Are there any regulations relating to soil artificialisation or other biodiversity concerns which impact on new builds and/or refurbishments? How are they enforced?
jurisdiction
1. Do EPCs need to be provided on sales and lettings and if so, are there any statutory minimum requirements?
Yes. Whilst on a sale and purchase deal the non-provision of the EPC will prevent the execution of the same, the non-provision of EPCs on letting may only trigger administrative offence liability for the owner. In any case, there is no statutory minimum requirements for EPCs.
2. Is there any legislation requiring new or existing buildings to satisfy ESG requirements?
Currently there are no legal provisions requiring new or existing buildings to satisfy ESG requirements.
3. How widespread are green lease provisions? Are they regulated or market driven? What areas do green leases commonly cover? Do they apply to both residential and commercial leases?
Green lease provisions are mostly required by institutional clients and are on the rise in Portugal. They are not regulated. Green leases commonly cover waste separation, sustainability on refurbishment and maintenance; use of environmental friendly cleaning products; and implementation of self-consumption measures . Green leases apply to both residential and commercial leases in Portugal, but are more looked for in commercial leases.
4. What do institutional investors and banks/other financing institutions require in terms of the green lease drafting? Is there any market standard approach to green lease drafting? Do you report on the lack of any green lease provisions in your due diligence reports on an acquisition or refinancing?
No requirements are yet being applicable, being this matter market driven in Portugal.
5. How are green lease provisions enforced?
Green lease provisions are enforced by the parties of the contract in accordance with the general laws in Portugal for non-performance of contracts.
6. How widespread is the certification of buildings (e.g. LEED, BREEAM, NABERS, WELL etc.)? Are they regulated or market driven? How is this documented between the Landlord and Tenant?
Certification of buildings is becoming more common in Portugal, especially LEED and BREAM certificates, but there is still a long path ahead. Moreover, certification of buildings is market driven.
7. Are there any additional regulatory requirements that need to be met or contractual provisions that need to be considered regarding the installation of alternative energy supply systems (e.g. rooftop photovoltaic systems)?
The installation of alternative energy supply systems (by which we understand equipment to supply electricity produced from renewable energy sources to be installed in buildings) must comply with a set of energy requirements - licensing with the Directorate General for Energy and Geology - environmental requirements - licensing with the Portuguese Environment Agency, if applicable - and urban planning requirements. With regard to this last point, it should be noted that the installation of renewable energy power plants currently benefits from a transitional simplification regime (in force until 2025) under which it depends only on prior notification with a deadline ("comunicação prévia com prazo"), which means that, if the request submitted to the mayor is not expressly rejected, the developer can proceed with the respective works.
8. Are there any regulations relating to soil artificialisation or other biodiversity concerns which impact on new builds and/or refurbishments? How are they enforced?
There is no specific national legislation in Portugal that regulates the artificialization of soil or imposes obligations to respect biodiversity with regard to new constructions or refurbishments of buildings. The environmental impacts that a given project or construction may have been analysed within the scope of environmental procedures, such as environmental impact assessment, in which, after ascertaining these impacts - including, of course, on soil and biodiversity, an environmental impact declaration is (or is not) issued. On the other hand, there are some areas considered to be environmentally sensitive under special protection regimes, such as the National Ecological Reserve and the National Agricultural Reserve - in which land conversion and operations must comply with more demanding requirements. Finally, the artificialization of land is an operation that is generally provided for and regulated in municipal master plans and other land management instruments.
