News from the EU #5 – Key regulatory updates for the green transition

February, 3rd 2026

Here’s what’s been happening in Brussels and why it matters for the real estate & construction sector.

InvestEU & ESRS: simplifying finance and reporting for a low-carbon future

The Council of the EU has adopted on December 11th new measures to simplify the InvestEU programme and the ESRS sustainability standards — two key steps toward easier financing and clearer reporting.

InvestEU now offers:

  • €2.9 billion added to the EU guarantee (total: €29.1 billion)
  • Easier combination with other EU funds (such as the European Fund for Strategic Investments).
  • Lighter reporting (annual instead of biannual)

> For LCBI, this is an opportunity. These measures could accelerate access to financing for low-carbon building renovation projects. We encourage both public and private stakeholders to leverage these tools to decarbonise the building stock and innovate in sustainable solutions.

ESRS becomes simpler with:

  • 61 % fewer mandatory datapoints
  • Removal of voluntary ones
  • Stronger alignment with IFRS standards

> For LCBI, this is a key enabler. Simplified reporting makes sustainability disclosure more accessible while maintaining transparency on climate commitments. Real estate stakeholders can now better showcase their contributions to the low-carbon transition, without unnecessary administrative complexity.

Take-home message

Transparency remains essential for measuring progress toward carbon neutrality. These streamlined standards should encourage more businesses to commit to low-carbon initiatives. The simplifications reflect the EU’s commitment to balancing environmental ambition with operational pragmatism. They pave the way for a smoother approach to sustainability reporting, while reinforcing the obligation for economic actors to account for their environmental, social, and governance (ESG) impacts.

  • InvestEU > More accessible funding for tangible low-carbon renovation projects.
  • ESRS > Simplified reporting to better communicate climate action.

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