Energy Performance of Buildings Directive: here’s what it provides in brief

The directive comes after being approved by the European Parliament last month with 370 favorable votes. This directive, part of the Fit for 55 reform package, introduces stricter energy requirements for buildings, making them "solar-ready" and putting an end to the use of gas boilers.

What are the macro-objectives?

The objectives of the directive include incentivizing the energy retrofitting of private and public buildings across Europe to reduce energy consumption and CO2 emissions. Member states may request exemptions, and energy efficiency will no longer be assessed through energy certifications but through specific average targets for each country. By 2050, the goal is to achieve climate neutrality, with 55% of energy consumption reduction coming from the renovation of less efficient buildings.

Objectives for residential, non-residential, and public buildings

For residential buildings, an average reduction of 16% in primary energy consumption is expected by 2030 and 20-22% by 2035. For non-residential buildings, a reduction of 16% by 2030 and 26% by 2033 is targeted. The directive mandates that all new public buildings must be zero-emission by 2028, and new private residential constructions by 2030.

Phase-out of fossil fuel boilers

Furthermore, subsidies for installing fossil fuel boilers will be discontinued starting from January 1, 2025, with the goal of completely phasing out such boilers by 2040, thereby promoting a transition to more sustainable heating and cooling systems.

Solar Installation

Member countries must ensure that all new buildings are "solar-ready" to accommodate solar photovoltaic or thermal solar installations on their roofs. For these buildings, the adoption of solar energy systems will become a mandatory standard.

As for existing public and non-residential buildings, the introduction of solar energy must be implemented progressively starting from 2027, provided that it is technically, economically, and functionally feasible.

Which properties will be excluded?

The new EPBD Directive excludes certain types of properties from its obligations to install renewable energy systems, including historical or protected buildings, temporary constructions, churches, independent dwellings smaller than 50 sqm, and holiday homes used less than four months a year. It is also possible to exempt public social housing if the renovation works could lead to an excessive increase in rents compared to the energy savings achieved.

Are there penalties for properties that do not meet the new standards?

The current rules of the EPBD do not establish specific penalties for property owners who do not comply with the new environmental standards within the set deadlines. Furthermore, there are no restrictions imposed on the sale or rental exploitation of properties without the EU's "green label."

However, the responsibility for imposing any fines lies with national governments. Additionally, properties that do not adhere to the directives may experience an automatic decrease in their market value.