A good example of this is in the Dutch commercial real estate sector. In the Netherlands, as of 2023, all office buildings will have to meet minimum energy efficiency requirements, or face closure. In 2017, it was estimated that half the offices in the Netherlands did not meet this requirement. This raises the prospect of write-offs for lenders.
Pfandbrief in comparison with European covered bond products  European covered bonds are very heterogeneous. The reasons for this are different legal systems and different market standards or traditions in certain financing segments. Though there is a trend towards separate covered bond laws in most European countries, there are significant differences in terms of scope.