Revision of the Energy Performance of Buildings Directive

In “A European Green Deal”

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As part of the Fit for 55 package, the Commission adopted a legislative proposal to revise the Energy Performance of Buildings Directive (EPBD) on 15 December 2021. The initial EPBD 2010 was amended in 2018, as part of the Clean energy package. The amending directive required all Member States to develop long-term building renovation strategies.

According to the Commission's proposal for EPBD 2021 recast, all new buildings in the EU must be zero-emission as of 2030, while all new public buildings must be zero-emission as of 2027. The Commission proposed to introduce minimum EU-level efficiency standards, triggering an increase in the renovation rate of the worst-performing buildings. Non-residential buildings with a class G (lowest) energy performance certificate (EPC) would need to be renovated and improved to at least EPC class F by 2027 and class E by 2030. The worst-performing residential buildings would need to reach at least class F by 2030 and class E by 2033. To ensure comparable national standards, all EPCs must be based on a harmonised scale of energy performance by 2025 and subject to future rescaling with view to reaching a zero-emission building stock by 2050. EPC Class G would cover at least 15 % of buildings in each Member State, while the validity of EPCs in the lower classes (D-G) will be reduced from 10 to 5 years.  To help building owners plan renovations, voluntary renovation passports would be introduced by 2024 and a Smart Readiness Indicator introduced by 2026.

In the European Parliament, the file was allocated to the ITRE committee, which appointed Ciarán Cuffe (Greens/EFA, Ireland) as rapporteur. The final report was adopted by the ITRE committee on 9 February 2023 and voted in the plenary session on 14 March 2023. The Committee for Transport and Tourism (TRAN) is associated to this report under Rule 57 (European Parliament Rules of Procedure).

The ITRE report would set an earlier deadline for all new buildings to be zero-emission (2028), and apply this obligation from 2026 to all new buildings occupied, operated or owned by public authorities. In line with the RepowerEU plan, all new buildings should be equipped with solar technologies by 2028 where feasible, while residential buildings undergoing major renovation would have until 2032 to comply with this requirement. Residential buildings would need to achieve at least energy performance class E by 2030, and D by 2033 (as opposed to F and E under the Commission's proposal). Non-residential and public buildings would have to achieve the same classes by 2027 and 2030 respectively. Member States would need to put in place free-of-charge information points and cost-neutral renovation schemes. Financial measures should prioritise deep renovations, especially of the worst-performing buildings, and targeted grants and subsidies made available to vulnerable households. Member States should ensure that the use of fossil fuels in heating systems for new buildings or those undergoing major renovations to the building or the heating system, are not authorised from the date of transposition of this Directive. They should be totally phased out by 2035, unless the European Commission allows their use until 2040.

In the Council of the EU, a general approach (negotiating position) was adopted during a meeting of energy ministers on 25 October 2022. This would require all new buildings from 2030 to be zero-emission buildings (from 2028 for all new buildings owned by public bodies). Existing buildings would need to meet minimum energy performance standards, but other rules would vary according to whether the existing buildings are allocated for residential or non-residential purposes. Residential buildings would need to meet a D class EPC by 2033 and higher standards by 2040 and 2050, based on national trajectories towards zero emission building stocks. Non-residential buildings would need to meet maximum energy performance thresholds, based on primary energy use and determined according to 15-25% of the worst performing energy stock in the given Member State. Existing buildings would need to be below the 15% threshold by 2030 and below the 25% threshold by 2034.  The general approach foresees that A class EPCs would apply to zero emissions buildings, while an A+ class would be created and applied to zero emissions buildings that also contribute on-site renewable energy to the energy grid.

The agreement between the Parliament and the Council was reached on 7 December. It states that all new buildings should be zero-emission as of 2030; new buildings occupied or owned by public sector should be zero-emission as of 2028. There is no longer an obligation to scale up the energy performance of buildings via minimum levels to be achieved by individual buildings. Instead, Member States will have to ensure a reduction in the average primary energy used in residential buildings of at least 16 % by 2030 and in a range between 20-22 % by 2035. On minimum energy performance requirements, the agreement envisages that Member States renovate the 16 % worst performing non-residential buildings by 2030 and the worst performing 26% by 2033. The aim is to completely discontinue the use of fossil fuel boilers by 2040 and stop subsidising stand-alone fossil fuel boilers as of 2025. In line with Parliament's proposal, Member States will have to set up one-stop-shops, i.e. technical assistance facilities on energy performance of buildings. The agreement extends the list of exemptions by adding buildings owned by armed forces or central government and serving defence purposes.

The Parliament endorsed the provisional agreement on 12 March 2024 and the Council on 12 April 2024. The final act was signed on 24 April and published in the EU Official Journal on 8 May 2024. It entered into force on 28 May 2024. 

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Author: Monika Dulian, Members' Research Service, legislative-train@europarl.europa.eu

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As of 15/12/2024.