The European Council has officially endorsed the updated Energy Performance of Buildings Directive (EPBD), unveiling a set of new regulations designed to curb energy consumption and emissions from buildings throughout the EU. Among the key measures are targets for all new buildings to achieve zero emissions status by 2030, along with plans to phase out the utilization of fossil fuels in building heating systems by 2040.
Buildings stand as a significant contributor to global greenhouse gas (GHG) emissions, presenting a formidable challenge to replace due to their enduring nature. According to the European Commission, buildings currently devour 40% of the energy consumed in the EU, while accounting for 36% of energy-related GHG emissions. Notably, 80% of household energy consumption is attributed to heating, cooling, and hot water.
The endorsement of the new legislation by member states marks the final stage in the adoption of the EPBD. Following this announcement, the directive will be signed and published in the Official Journal of the EU, with member states granted a two-year period to integrate the new regulations into national legislation. Originally proposed for revision in 2021, the directive aligns with the EU’s overarching goal of slashing greenhouse gas (GHG) emissions by 55% by 2030, compared to 1990 levels, as outlined in the Commission’s ‘Fit for 55‘ roadmap.
Key highlights of the updated directive include mandates for all new residential and non-residential buildings to achieve zero on-site emissions from fossil fuels by 2030, with publicly-owned buildings required to meet this benchmark by 2028. Furthermore, member states are tasked with implementing measures to phase out fossil fuels in the heating and cooling of buildings, ultimately aiming for a complete cessation of fossil fuel-powered boilers by 2040. Looking ahead to 2050, the directive envisions a complete transformation of the EU’s building stock into zero emissions structures.
Additionally, the legislation outlines objectives to eliminate or enhance the performance of the lowest-performing buildings. Member states are obligated to devise a national trajectory for residential buildings, targeting a 16% reduction in primary energy use by 2030 and 20-22% by 2035, with at least 55% of the reduction achieved through the renovation of the poorest-performing buildings. Similar standards apply to non-residential buildings, with a focus on upgrading the 16% worst-performing structures by 2030 and the 26% worst-performing by 2033.
The revised directive also introduces provisions to facilitate a renovation surge for buildings, mandating member states to develop national building renovation plans to decarbonize their building stock and address impediments such as financing and workforce training. Additionally, national building “renovation passport” schemes will be established to guide building owners through phased renovations toward achieving zero-emission status. Furthermore, all new buildings are mandated to be solar-ready, capable of accommodating rooftop photovoltaic or solar thermal installations.
