The Life Cycle Value Index (LZWi), published in May 2025, introduces a method for assessing both operational and material‑related emissions across the full life cycle of buildings. Developed by a working group coordinated by the Austrian Sustainable Building Council (ÖGNI) and partner organisations, the framework aims to support consistent evaluation of existing buildings, renovations, replacement construction and new developments.

The document highlights that current energy performance certificates focus on operational emissions and do not account for material‑related emissions generated during production. The LZWi addresses this gap by combining simplified life‑cycle modules with a depreciation‑based approach. Emissions from material production, demolition and operational energy use are allocated to the building and reduced annually over its service life, enabling long‑term comparability between different building types.

A central feature of the methodology is the treatment of existing buildings. Material‑related emissions already embedded in a structure are recognised as an 'emissions backpack,' which remains part of the building’s balance until fully depreciated. In cases of demolition, any remaining undeclared emissions and those generated during deconstruction are transferred to the replacement building. This approach reflects the environmental implications of retaining or replacing structures and links them to long‑term emission accounting.

The publication also outlines potential areas of application. The LZWi can support compliance with the revised Energy Performance of Buildings Directive (EPBD), including future requirements for life‑cycle greenhouse gas limits and the development of renovation passports under Article 12. The authors propose integrating the index into financial and regulatory systems so that emissions remain visible in accounting structures, enabling more consistent decision‑making in renovation, demolition and new construction.