NAI Romania: All investments require assessments according to the D.N.S.H. principle. "Do not significantly harm"

All real estate investment projects (residential, commercial and industrial) will need a “Do No Significant Harm” (DNSH) assessment, so the market for such assessments is expected to grow significantly from this year, estimates Appraisal & Valuation SA, the company holding the NAI Romania & Moldova brand and issuer listed on the Bucharest Stock Exchange (symbol: APP).

According to European Union legislation, such assessments become mandatory for investment projects, whether they need bank financing, one granted through one of the eight Regional Development Agencies, through the National Recovery and Resilience Plan (PNRR) or through other European funds.

The criteria that such a DNSH assessment must take into account for an investment project:

1. Mitigation of climate change;

2. Adaptation to climate change;

3. Sustainable use and protection of water and marine resources;

4. Circular economy, including waste prevention and recycling;

5. Prevention and control of air, water and soil pollution;

6. Protection and restoration of biodiversity and ecosystems.

If one of these criteria is applicable to an investment, a thorough assessment of the measures taken to reduce the environmental impact will be carried out.

The DNSH analysis is carried out before the start of all the usual steps regarding the start of an investment, because all the provisions/measures/requirements resulting from the analysis must be included in the design solutions and which will subsequently be implemented by the builders.

Implicitly, if the answer of the analysis is not adequate, there is a risk that the investment will not be able to receive financing (from a bank or from European funds).

“Both the legislation of the European Union, fully applicable in Romania, as well as the requirements of financiers and other stakeholders, for example those who would buy or rent a property, require that all investments – and especially real estate ones – comply with a series of criteria relating to environmental protection and climate change mitigation. Nobody starts investments that do not take environmental standards into account anymore, and the DNSH analysis only certifies that an investment will be made responsibly, right from the design phase.

Among the environmental requirements that must be considered for a DNSH analysis are technical aspects such as the prohibition of the use of some asbestos materials, the limitation of the amount of volatile organic compounds (Volatile Organic Compounds – VOCs) below 0.001 mg/cubic meter or, with limitations on the quantities dust, noise level, etc. For example, meeting the requirements for Green Home certification ensures a NO answer to the DNSH criteria.

The NAI Romania & Moldova team has the necessary expertise to carry out such evaluations, expertise, building certifications and we can guide our clients in designing investment plans, so that they can secure access to financing through the banking system or European funds,” stated Andrei Botiș, CEO of Appraisal & Valuation SA (NAI Romania & Moldova) and President of the Romania Green Building Council (RoGBC).