Energy efficiency
The EU’s energy efficiency measures aim to reduce greenhouse gas emissions, lower energy bills and improve energy security while reducing dependence on imported fossil fuels. The Energy Efficiency Directive requires EU countries to cut their energy use by 11.7% by 2030 compared to 2020 projections. The directive sets annual energy savings targets that increase over time, requires public buildings to reduce energy consumption and undergo renovations, and introduces measures to tackle energy poverty. Separate rules aim to significantly reduce greenhouse gas emissions and energy consumption in the building sector.
Legal basis
Article 194 of the Treaty on the Functioning of the European Union.
Achievements
A. The Energy Efficiency Directive
1. The Energy Efficiency Directive: towards 2030
The Energy Efficiency Directive establishes the EU’s energy efficiency targets, which aim to reduce primary and final energy consumption at EU level by 11.7% by 2030, compared to the forecasts made in 2020. Primary energy consumption measures the total energy demand of a country, while final energy consumption refers to total energy consumed by the end users (households, industry, etc.). In absolute terms, the EU’s primary and final energy consumption by 2030 will be no more than 992.5 and 763 million tonnes of oil equivalent (Mtoe), respectively.
While the final energy consumption target is collectively binding for EU countries, the primary energy consumption target is only indicative. The directive requires EU countries to set indicative national energy efficiency targets based on final energy consumption contributions to meet the Union’s target. It defines new annual energy savings obligations for EU countries, with a phased increase in targets: a minimum of 0.8% of final energy consumption until 2023, rising to 1.3% from 2024, 1.5% from 2026, and ultimately 1.9% from 2028. In accordance with the directive, the Commission evaluates current energy efficiency partnerships and suggests new ones for specific sectors at EU level if necessary.
The directive introduces the obligation for the public sector to play an exemplary role: the EU’s public bodies must reduce their combined total final energy consumption by at least 1.9% each year compared with 2021 and renovate at least 3% of the total floor area of their heated and/or cooled buildings annually. It revises the definition of efficient district heating systems and sets new requirements aimed at fully decarbonising the supply for these systems by 2050.
Finally, the directive establishes reporting obligations for data centres, dedicated one-stop shops for small and medium-sized enterprises, households and public bodies, and obligations for heating and cooling planning in municipalities with a population of more than 45 000. It includes consumer protection provisions, defines energy poverty at EU level and introduces measures for its reduction.
The revision of the Energy Efficiency Directive was the result of four different phases:
- In 2018, the ‘Clean energy for all Europeans’ package decreased the EU’s primary and final energy consumption by 32.5% by 2030, compared to projections made in 2007.
- In 2021, the ‘Fit for 55’ package proposed to increase the EU energy efficiency target to at least 9% by 2030, compared to projections for 2030 made in 2020. The revision introduced the energy efficiency first principle as a pillar of the Energy Union.
- In 2022, following the Russian aggression against Ukraine, the REPowerEU plan proposed to further increase the binding energy efficiency target to 13% by 2030 and introduced demand reduction targets in the internal energy market (fact sheet 2.1.9).
- In 2023, Parliament and the Council agreed to an energy efficiency target of 11.7% by 2030.
Under the Regulation on the Governance of the Energy Union and Climate Action, EU countries must establish 10-year national energy and climate plans (NECPs) for the 2021-2030 period and submit progress reports every two years. The Commission monitors and assesses progress reports, and can take measures at EU level to ensure their consistency with the overall EU targets.
2. Future Steps
As part of the Clean Industrial Deal, the Affordable Energy Action Plan aims to enhance energy efficiency and reduce energy costs for industries and consumers. The plan includes the creation of a European energy efficiency market to guide businesses toward cost-effective solutions and the updating of EU energy labelling and ecodesign regulations to promote more efficient, longer-lasting products. These measures are expected to deliver significant savings, with estimated reductions of up to EUR 162 billion in energy bills by 2030.
B. General framework
1. Energy performance of buildings
a. The Energy Performance of Buildings Directive
The Energy Performance of Buildings Directive aims to reduce greenhouse gas (GHG) emissions and energy consumption in the EU building sector, making it climate neutral by 2050, renovate the worst performing buildings and improve information sharing on energy performance. It entered into force on 28 May 2024 and will need to be transposed into national laws by 29 May 2026.
The new directive sets emission reduction targets for buildings at both EU and national levels:
- All new buildings in the EU will have to be zero-emission as of 2030; in the case of new public buildings (owned or occupied), as of 2028.
- For residential buildings, EU countries must work towards the progressive renovation of their entire building stock, decreasing its average primary energy use of at least 16% by 2030 and in a range between 20-22% by 2035 compared to 2020.
- For non-residential buildings, EU countries are to define minimum energy performance standards so as to renovate 16% of the worst-performing building stock by 2030 and 26% by 2033.
The directive defines the concepts of ‘zero-emission building’, ‘nearly-zero energy building’ and ‘deep renovation’ and replaces long-term renovation strategies with national building renovation plans, which are easier to implement and subject to better monitoring. It asks EU countries to deploy solar installations progressively in public and non-residential buildings, depending on their size, and in all new residential buildings by 2030, if technically and economically suitable. The directive stops subsidising stand-alone fossil fuel boilers as of 2025, requires EU countries to set up technical assistance facilities, defines exceptions for agricultural and heritage buildings, and exception options for buildings of special architectural or historical merit, temporary buildings, churches and places of worship.
b. The Renovation Wave Strategy
In October 2020, the Commission published the Renovation Wave Strategy to boost renovation, aiming to at least double renovation rates over the next 10 years and make sure that renovations lead to greater energy and resource efficiency.
2. Cogeneration of heat and power
Cogeneration is the simultaneous production of electricity and useful heat. In line with the Energy Efficiency Directive, the Commission may require EU countries to carry out a comprehensive assessment of the potential for efficient heating and cooling, including the assessment of the potential for cogeneration.
3. Energy efficiency of products
The EU introduced several measures concerning the energy efficiency of products, including the Ecodesign Directive for energy-related products and the Ecodesign Regulation, together with a framework for labelling the energy efficiency of products which eliminates A+, A++ or A+++ ratings and returns to a simpler A-G scale.
Role of the European Parliament
Parliament has continuously called for ambitious energy efficiency targets and stricter regulations.
On 17 January 2018, Parliament adopted first reading amendments calling for a minimum 35% target on energy efficiency in the EU by 2030, higher than the 30% proposed by the Commission.
On 15 January 2020, Parliament adopted a resolution on the European Green Deal calling for the Energy Efficiency Directive and Energy Efficiency of Buildings Directive to be revised in line with the EU’s increased climate ambition. On 17 September 2020, it adopted a resolution in favour of maximising the energy efficiency potential of the EU’s building stock, calling on the Commission to develop consistent measures to stimulate faster and deeper renovation of buildings.
On 14 September 2022, Parliament adopted an amendment raising the EU energy efficiency target proposed by the Commission as part of its REPowerEU plan to at least 14.5% of final energy consumption by 2030, compared to 2020 projections. This is equivalent to final and primary energy consumption limits of 740 Mtoe and 960 Mtoe respectively.
On 14 March 2023, Parliament defined its first reading position on the need for residential buildings to achieve minimum energy performance standards at EU level (class E by 2030, and D by 2033) and on support measures against energy poverty. Non-residential and public buildings would have to achieve the same classes by 2027 and 2030 respectively. A limited set of exemptions would apply for special buildings (monuments, technical buildings, temporary use of buildings or churches, places of worship, etc.) and for public social housing, where renovations would lead to rent increases that cannot be compensated by saving on energy bills. Targeted grants and subsidies should be made available to vulnerable households.
In the resolution of 3 April 2025 on Energy-Intensive Industries (EIIs), Parliament called on the Commission to support EIIs in adopting clean, net-zero technologies and energy-efficient production methods, and to propose urgent measures to address high energy costs for EIIs.
For more information on this topic, please see the website of the Committee on Industry, Research and Energy.
Kristin BECKER / Matteo Ciucci