The landscape for sustainable real estate investment in Europe has become increasingly complex. Overlapping EU and UK regulations, evolving reporting requirements, and divergent national frameworks are all creating uncertainty. Many managers and investors are therefore holding back capital and waiting for clarity.

The Sustainable Finance Disclosure Regulation (SFDR), together with the planned reforms of the EU Taxonomy, Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CS3D), and the updated Energy Performance of Buildings Directive (EPBD), form an intricate “sustainability regulatory framework”. Stop-the-clock proposals under Omnibus I illustrate the slow pace of regulatory evolution, shifting goals and the challenge of aligning timelines.

INREV has emphasised the need for interoperability across jurisdictions, advocating for fund labels, metrics and reporting requirements that are mappable between the United