This report is written as a thesis project on the Master, Sustainable Cities at Aalborg University in Copenhagen.

The thesis has been developed on the basis of a collaboration with Akademiker Pension, which along with the rest of the financial sector is facing a transformation by the EU Taxonomy. The Eu Taxonomy regulation sets standards and guidelines for sustainable economic activities, including the building and real estate sectors. Therefore, the thesis has explored the following research question:

In what way does the EU Taxonomy affect the socio-technical regime of the built environment in a more sustainable development in relation to renovations? And what impact does it have on real estate investments?

To answer the research question, four analyses have been conducted. The first one gives an overview of the new attention points by the EU Taxonomy, while the second one examines the impact on the built environment and the challenges and needs for more sustainable development. The third analysis is a case study of how the EU Taxonomy affects real estate investments while the fourth and last analysis discusses the impact that the EU Taxonomy has for driving the built environment towards a more sustainable development.