The pace of building renovation will increase significantly
Final agreement reached on the EU Building Directive EPBD. There are many assumptions to be implemented, which in practice means that we are facing a revolution in construction.
The Energy Performance of Buildings Directive (EPBD) supports efforts to decarbonize buildings across the European Union. This is because buildings account for around 40% of EU energy consumption, over half of EU gas consumption (mainly for heating, cooling and domestic hot water) and 36% of energy-related greenhouse gas emissions. Currently, around 35% of buildings in the EU are over 50 years old and almost 75% of the building stock is energy inefficient. At the same time, the average annual energy renovation rate is only about 1%.
16% of the worst buildings for thermal modernization in 7 years
The revised directive sets out a series of measures to help EU governments structurally improve the energy performance of buildings, with particular emphasis on the worst-performing buildings.
- Each Member State will adopt its own national plan to reduce average primary energy consumption in residential buildings by 16% by 2030 and 20-22% by 2035, providing sufficient flexibility to take into account national circumstances. Member States are free to choose which buildings will be targeted by the campaign and what measures will be taken
- National measures will have to ensure that at least a 55% reduction in average primary energy consumption is achieved by renovating the worst performing buildings
- In the case of non-residential building stock, the amended regulations require their gradual improvement by introducing minimum energy performance standards. This will lead to the renovation of 16% of the worst performing buildings by 2030 and 26% of the worst performing buildings by 2033
- Member States will have the possibility to exempt certain categories of residential and non-residential buildings from these obligations, including historic buildings or holiday homes
- The improved energy performance certificates (EPCs) will be based on a common EU template with common criteria to better inform citizens and facilitate financial decision-making across the EU
- To combat fuel poverty and reduce energy bills, funding will need to encourage and accompany renovation and target in particular vulnerable customers and the worst-performing buildings where a higher proportion of energy-poor households live.
- Member States will also need to provide guarantees to tenants to help address the risk of eviction of vulnerable households caused by disproportionate rent increases following renovations.
A wave of renovations is coming
The revised EPBD includes measures to improve both the strategic planning of renovations and tools to ensure that such renovations are carried out. Under the agreed rules, Member States must establish:
- national building renovation plans to define a national strategy for decarbonising the building stock and how to remove remaining barriers, such as financing, training and attracting more skilled workers
- national building renovation passport programs to help building owners undertake phased renovations towards zero emission buildings
- One Stopa Shop for homeowners, SMEs and all players in the renovation value chain to receive dedicated and independent support and guidance
In addition, the agreement will help the EU to phase out fossil fuel boilers. From January 1, 2025, subsidies for the installation of free-standing boilers powered by fossil fuels will not be possible. The revised directive introduces a clear legal basis allowing Member States to set requirements for heat generators based on greenhouse gas emissions, type of fuel, energy used or the minimum share of renewable energy used for heating. Member States will also have to set out specific measures to phase out fossil fuels in heating and cooling, with a view to phasing out fossil fuel boilers completely by 2040.
Zero-emission buildings – this will be the new building standard
The revised directive will make zero-emission buildings the new standard for new buildings. Under the agreement, all new residential and non-residential buildings must have zero on-site fossil fuel emissions from January 1, 2028 for public buildings and from January 1, 2030 for all other new buildings, with special exemptions possible.
Member states will also have to ensure that new buildings are solar-ready, which means they must be suitable for hosting photovoltaic or thermal installations on their roofs. Installing photovoltaic installations will become the norm in new buildings. Existing public and non-residential buildings will need to gradually install solar energy from 2027, provided it is technically, economically and functionally feasible. These regulations will come into force at different times, depending on the type and size of the building.