Does your building qualify for green loans?

Green loans are one of the strongest incentives for building owners looking to reduce their environmental footprint, secure lower-cost financing, and maintain rental income.

We had a chat with Erlend Bolle, CEO at Netto – a Norwegian fintech company that helps banks convert "brown" loans to "green" - about the changing financial conditions and their impact on the real estate sector. 

Green loans for commercial buildings

Green loans are designed to make sustainable and environmentally friendly investments more financially attractive. They are reserved for buildings that already meet sustainability standards or projects that aim to reduce a building’s environmental impact.

Since energy consumption is a major factor in a building’s carbon footprint, banks typically assess energy labelling and certifications when determining eligibility.

The exact criteria vary from bank to bank, and requirements are generally stricter for new buildings than for older properties.

For now, the interest rates for green loans and traditional loans are fairly similar, but this is expected to change. Non-green loans are likely to become more expensive, making green investments the smarter financial choice.

A surge in green loans is coming

Only about 3–4% of loans are classified as green today, but this number is set to rise significantly. Why?

Because the EU Taxonomy is introducing stricter energy efficiency requirements, turning “brown” buildings into high-risk investments. Tenants and large investors are already willing to pay a premium for green buildings – and we’re still only at the beginning of this shift.

Erlend Bolle urges building owners to take action now:

"The best time to start is now – otherwise, you might be in for a big surprise in a few years. Take it step by step, but don’t bury your head in the sand. The requirements will only get stricter from here on."

Banks face a double risk

Banks themselves have strong incentives to increase the share of green loans in their portfolios. Bolle explains:

"The EU Taxonomy and new regulations are putting pressure on banks, which affects their access to capital – and ultimately, their ability to offer competitive loans."

But there’s another layer to this:

"Banks also own large portions of commercial real estate, making them doubly exposed. They risk both a decline in property values and stricter financing conditions. This means we’ll start seeing tougher requirements during refinancing negotiations."

Your data could be the deciding factor

With so much at stake, banks and building owners have a shared interest in working together. Bolle points out that when both sides have a clear, data-driven foundation, they quickly realize their goals are aligned. By discussing investment strategies with your bank upfront, you increase your chances of securing green loans.

But if you’re applying for green loans based on your existing operations, you’ll need strong documentation. One of the most valuable assets in this process is accurate energy data.

If your building performs better than its energy label suggests, solid energy monitoring can prove it – potentially improving your financing terms.

🔎 Read more: CSRD and Scope 2 emissions.

"For banks, real data means better control. Right now, most financing is based on estimates—but in many cases, actual energy consumption is much lower than these estimates suggest. Technology has advanced significantly since the 1990s, and many opportunities are still being overlooked", Bolle concludes.

Why this matters now

The financial landscape is changing fast. Green loans will soon become the norm, while non-green properties will face higher costs and lower demand.

The good news? The right data, strategy, and financing can turn sustainability into a competitive advantage.