Top green building certifications: How they impact sustainability?

Green building

The concept of green building began to gain global recognition in the 1990s. In 1993, Rick Fedrizzi, David Gottfried, and Mike Italiano founded the United States’ first Green Building Council (US Green Building Council - USGBC), which played a key role in developing the LEED certification system. As sustainable construction principles gained worldwide attention, the World Green Building Council (WorldGBC) was established in 2002 to unite national green building councils across different countries.

Green Building Councils (GBCs) are organizations that promote sustainable construction practices. Their responsibilities include supporting green certification systems, organizing professional training, and influencing building regulations. Additionally, they conduct research, foster innovation, and help make green financing opportunities more accessible within the construction industry.

In Hungary, this role is fulfilled by the Hungarian Green Building Council (HuGBC), founded in 2009. As a non-profit organization serving the public interest, its mission is to promote sustainable construction practices and facilitate the adoption of green certification systems in the country. Several international green certification systems are available in Hungary, including BREEAM, LEED, DGNB, and WELL, which are increasingly significant in new construction and renovation projects.

What does green building certification mean?

Green building certification systems are independent evaluation frameworks that assess and certify buildings based on their environmental performance, energy efficiency, and sustainability practices. These certifications ensure that buildings comply with criteria related to resource efficiency, indoor air quality, carbon footprint, and overall environmental impact, covering the entire lifecycle from design and construction to operation.

Green building certification systems are closely aligned with the European Union’s sustainability and climate policies, particularly in improving building energy efficiency and reducing carbon emissions.

• The European Green Deal, the Energy Efficiency Directive (EED), and the Energy Performance of Buildings Directive (EPBD) mandate that all new buildings must be Zero-Emission Buildings (ZEB) by 2030, meaning they must be highly energy-efficient and free from fossil fuel use.
• The EU Taxonomy, the Circular Economy Action Plan, and the Renovation Wave Strategy promote sustainable investments, reduction of construction waste, and accelerating building renovations to support the transition to a low-carbon built environment.

Why are green building certifications important?

The growth of urbanization presents increasing challenges for cities worldwide, as rapid population expansion drives up energy consumption, CO₂ emissions, and resource usage. According to UN projections, by 2050, 68% of the global population will live in urban areas, significantly impacting the sustainability of the built environment.

Cities account for 75% of global energy consumption and 70% of CO₂ emissions, making it essential for both new and existing buildings to operate with energy-efficient and sustainable solutions. Green building certifications (such as LEED, BREEAM, and DGNB) support this transition by providing clear guidelines on reducing energy use, integrating renewable energy sources, and utilizing sustainable building materials.

Green buildings and certification systems not only enhance energy efficiency but also help mitigate the urban heat island effect through solutions like green roofs, natural ventilation, and passive cooling systems. These innovations reduce the environmental footprint of buildings while creating more livable, healthier, and sustainable urban environments in the long run.

The global green building market was valued at €482.68 billion in 2023 and is projected to reach €1,284.24 billion by 2034, with an annual growth rate of 9.3% (Precedence Research, 2024). In 2023, Europe accounted for 39% of this market, valued at €188.30 billion, and by 2033, this figure is expected to rise to €500.67 billion, reflecting an annual growth rate of 10%.

Certified buildings represent a prime investment opportunity in the sustainable real estate market, as increasing regulations and financial incentives continue to drive their adoption.

Relevant green certification systems

Green building certification systems provide structured frameworks to assess and enhance the sustainability, energy efficiency, and environmental impact of buildings. While LEED, BREEAM, DGNB, and HQE share common goals of improving building performance, each system applies distinct evaluation criteria, methodologies, and regional adaptations to address climate challenges, resource efficiency, and occupant well-being.

1. BREEAM (Building Research Establishment Environmental Assessment Method) – UK & Global

• Established in 1990 by the Building Research Establishment (BRE) in the UK, BREEAM is one of the most widely used sustainability assessment methods for master planning projects, infrastructure, and buildings.
• It evaluates buildings based on energy efficiency, water use, health & well-being, pollution, transport, materials, waste, and ecology.
• With over 540,000 certified buildings in 89 countries, BREEAM is particularly strong in European markets and is widely used in urban planning and large developments.

2. LEED (Leadership in Energy and Environmental Design) – USA & Global

• Developed by the U.S. Green Building Council (USGBC) in 1998, LEED is the most recognized green building certification system worldwide.
• It evaluates buildings based on sustainable sites, water efficiency, energy & atmosphere, materials & resources, indoor environmental quality, and innovation.
• LEED is used in over 100,000 certified projects across 180+ countries and is particularly strong in North America, the Middle East, and Asia.

3. DGNB (Deutsche Gesellschaft für Nachhaltiges Bauen) – Germany & Europe

• Launched in 2007 by the German Sustainable Building Council (DGNB), this certification focuses on life-cycle sustainability and holistic building performance.
• DGNB evaluates environmental, economic, and sociocultural factors along with technical quality, process quality, and site quality.
• With over 8,000 certified projects, mainly in Germany and Europe, DGNB is known for its rigorous life-cycle analysis and emphasis on energy efficiency.

4. HQE (Haute Qualité Environnementale) – France & Europe

• Established in 1996 by the French Association for High Environmental Quality (AFNOR), HQE emphasizes environmental performance and user well-being.
• It evaluates buildings based on energy efficiency, environmental impact, health & comfort, and sustainable management.
• HQE is widely used in France and Francophone regions, with over 200,000 certified projects.

Which certification system is best?

For projects seeking a globally recognized standard, LEED and BREEAM are the most widely used and accepted certifications. They provide comprehensive sustainability assessments applicable to various building types and regions.

If the focus is on life-cycle analysis and long-term performance, DGNB offers the most detailed and in-depth evaluation. It integrates economic, environmental, and social factors to ensure long-term sustainability and cost efficiency.

For projects in France and Francophone regions, HQE is the most relevant certification, as it aligns with local regulations and sustainability priorities. It is widely used for commercial and residential buildings in these regions.

When health, comfort, and indoor air quality are top priorities, both HQE and DGNB provide the most detailed assessments. They emphasize occupant well-being, thermal comfort, natural ventilation, and indoor environmental quality.

Each certification system has its own strengths, and the best choice depends on geographical location, project type, and sustainability goals.

Challenges

Obtaining a green certification can present challenges, such as higher initial costs, as the process involves registration fees, consultancy services, and independent audits—though these investments can pay off in the long run.

Some certification systems only assess the building's condition at the time of construction, making it important to choose a system that also monitors operational performance and energy efficiency (e.g., WELL, BREEAM In-Use).

Additionally, there is a risk of "point chasing," where projects make unnecessary investments solely to maximize their certification score, so it is essential to evaluate whether the certification truly adds value to the building.

Why should you obtain a green certification for your building?

1. Verified commitment to sustainability

Green certifications ensure that your project is not only environmentally friendly but also officially recognized as sustainable. This distinction enhances your building's market appeal and provides a competitive advantage.

2. Tax incentives and financial support

In Hungary and across the EU, financial incentives and favorable loan options are available for energy-efficient buildings. In some cases, property tax or building tax reductions may be granted. The Hungarian National Bank (MNB) Green Capital Requirement Discount Program enables financial institutions to offer preferential loans for the construction, purchase, or renovation of energy-efficient residential buildings (MNB, 2023).

3. Higher property value and faster sales

Research by the World Green Building Council shows that green buildings sell for 5–30% higher prices, and their rental income can be up to 17.3% higher. Sustainable buildings are sold or leased faster, as businesses and individuals increasingly seek energy-efficient and eco-friendly solutions.

4. Third-party verification and transparency

The certification process involves independent expert evaluations of the building’s design and construction, ensuring compliance with sustainability principles. This professional validation builds trust and credibility among buyers and tenants.

5. Objective and measurable results

During the certification process, buildings must provide precise data on energy consumption, water usage, and material sourcing, ensuring compliance with sustainability standards. These insights not only help in obtaining certification but also lead to long-term operational cost savings.

How can Equinox help you?

Equinox provides expert guidance throughout the green building certification process, ensuring that your project meets the highest sustainability standards while maximizing cost efficiency and long-term value.

1. Certification Strategy & Feasibility Assessment – We analyze your project’s goals, budget, and sustainability priorities to recommend the most suitable certification system (e.g., LEED, BREEAM, DGNB, HQE).
2. Regulatory Compliance & Financial Benefits – Our team helps navigate local and EU regulations, ensuring eligibility for tax incentives, green financing, and sustainability grants.
3. Technical Support & Documentation – We manage energy modeling, material selection, and environmental performance tracking, ensuring compliance with certification requirements.
4. Optimization & Cost Efficiency – By avoiding unnecessary costs and focusing on impactful sustainability measures, we help clients achieve high certification ratings without overspending.
5. Third-Party Coordination & Audit Assistance – We liaise with certification bodies, auditors, and sustainability consultants, streamlining the entire process.
6. Post-Certification Monitoring – For operational-focused certifications like BREEAM In-Use or WELL, we assist in ongoing performance tracking and recertification.

With Equinox, you gain a trusted partner in navigating sustainability certifications, unlocking financial benefits, and enhancing your project's market value.

Cited and additional literature

Policies

• A European Green Deal. EC (2019).
• A New Circular Economy Action Plan for a Cleaner and More Competitive Europe. EC (2020).
• A Renovation Wave for Europe – Greening Our Buildings, Creating Jobs, Improving Lives. EC (2020).
• Regulation (EU) 2020/852 on the Establishment of a Framework to Facilitate Sustainable Investment, and Amending Regulation (EU) 2019/2088. EP & Council (2020).
• Directive (EU) 2018/2002 Amending Directive 2012/27/EU on Energy Efficiency. EP & Council (2018).
• Directive (EU) 2018/844 Amending Directive 2010/31/EU on the Energy Performance of Buildings and Directive 2012/27/EU on Energy Efficiency. EP & Council (2018).

Books

• Kibert, C. J. (2016). Sustainable construction: Green building design and delivery (4th ed.). Wiley

Articles

• Carlucci, S., Pagliano, L., & Pietrobon, M. (2013). Analysis of 85 Green Buildings within the GreenBuildingplus Project: A Basis for Supporting Energy Efficient Investments. Advanced Materials Research, 689, 49 - 53
• Magyar Nemzeti Bank (MNB). (2023). Tájékoztató lakáscélú zöld tőke kedvezmény.
• Precedence Research. (2024). Green buildings market size, share, trends, growth analysis report 2024-2034.