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Energy Efficiency Directive

The Energy Efficiency Directive is a key driver of Europe’s energy transition.

Energy efficiency reduces overall energy consumption and is therefore central to achieving the EU’s climate ambition, while enhancing present and future energy security and affordability. 

To help shape EU energy efficiency rules for the decade ahead, the Commission is developing a post-2030 energy efficiency framework, scheduled for publication in the last quarter of 2026. EU citizens and stakeholders were invited to provide feedback on the initiative through a call for evidence and a public consultation that was open from 20 March to 12 June 2026.

The revised directive

To support the EU’s 2030 target of reducing greenhouse gas emissions by at least 55% -compared to 1990-, the Commission revised the Energy Efficiency Directive (EU/2023/1791) in 2023.

  • It significantly raises the EU’s ambition on energy efficiency and sets a target of reducing the final energy consumption by at least 11.7% compared to the 2020 projections for energy use in 2030. Full implementation of the directive will also be key for the EU to comply with the commitment of the Global Pledge to double the global rate of energy efficiency improvements from about 2% to over 4% by 2030.

  • It establishes ‘energy efficiency first’ as a fundamental principle of EU energy policy, giving it legal-standing. It means that energy efficiency must be considered by EU countries in all relevant policy and major investment decisions taken, in both the energy and non-energy sectors.

  • The revision followed a Commission proposal for a recast directive in 2021, as part of the European Green Deal. This proposal was further enhanced in the REPowerEU plan of May 2022, aiming to decrease the EU’s dependence on Russian fossil fuel.

Recommendations and guidance notes

On 10 March 2026, the Commission published practical guidance on the establishment of one-stop shops for the energy renovation of buildings, as part of a comprehensive support package for energy efficiency financing.

In 2024, the Commission published 9 guidance documents related to the revised directive, to help EU countries when transposing its different elements into national law. The deadline for transposition was 11 October 2025.

Recommendations and guidance notes

Article 3: energy efficiency first principle

Article 4: energy efficiency targets and national contributions

Articles 5, 6 and 7: energy consumption in the public sector, renovation of public buildings and public procurement

Articles 8, 9 and 10: energy saving obligations

Article 11: energy management systems and energy audits

Article 26: heating and cooling aspects

Articles 21, 22 and 24: consumer related provisions

Article 29: energy services

Article 30: national energy efficiency funds, financing and technical support

Examples of good practices illustrating how the new and revised provisions could be implemented were compiled in the contractors’ report on good practices, published in April 2024. 

Annual energy savings obligation

The revised directive more than doubles the annual energy savings obligation (Article 8) by 2028. This is one of the key policy instruments of the directive to meet the headline energy efficiency target and to drive energy savings in end-use sectors, such as buildings, industry and transport.

1.3% 2024-2025
1.5% 2026-2027
1.9% 2028-2030

EU countries are required to achieve cumulative end-use energy savings for the entire obligation period (running from 2021 to 2030), equivalent to new annual savings of at least 0.8% of final energy consumption in 2021-2023, at least 1.3% in 2024-2025, 1.5% in 2026-2027 and 1.9% in 2028-2030.

Energy poverty and consumers

The revised directive puts a stronger focus on alleviating energy poverty, including through stronger requirements for EU countries to raise awareness and provide information on energy efficiency to consumers. 

It emphasises the creation of one-stop shops, technical and financial advice and consumer protection via out-of-court mechanisms for the settlement of disputes. Furthermore, it includes improved regulations to identify and remove barriers related to split incentives for energy efficiency renovations between tenants and owners or among multiple owners.

The changes introduced require EU countries to prioritise energy efficiency improvements for vulnerable customers, individuals affected by energy poverty and those living in social housing. To address any potential negative impacts, the revenue generated from the extension of the EU Emissions Trading System (ETS) to buildings and transport will be used through the Social Climate Fund. 

Under the energy savings obligation, each EU country is responsible for achieving a share of its energy savings among vulnerable customers and those affected by energy poverty. The criteria for determining these targets will be defined at national level, allowing flexibility for tailored solutions based on country-specific circumstances.

EU measures on energy poverty

Energy performance of data centres

Our need for data centres is growing rapidly. Their rising energy consumption and the rate at which it is increasing is a challenge for the energy system and our transition towards a climate-neutral EU. It is therefore in Europe’s interest to ensure data centres are as energy efficient and sustainable as possible.

Learn more about the reporting of EU data centres’ energy consumption and about the upcoming data centre energy efficiency package, planned for the second quarter of 2026.

More about data centres

Heating and cooling supply

The definition of efficient district heating and cooling was modified in the revised directive to ensure it is fully decarbonised by 2050. Minimum requirements will be gradually changed to allow for a progressive integration of renewable energy and waste heat and cold in the system.

Support for new high-efficiency cogeneration units using natural gas and connected to district heating in efficient district heating and cooling systems will only be possible until 2030, whereas any other fossil fuel use will be banned for new heat generation capacities in such systems.

The revised directive also requires EU countries to promote local heating and cooling plans in large municipalities having populations more than 45 000.

More about Heating and Cooling 

©AdobeStock/amedeoemaja

Audit obligations, requirements and reporting

To optimise energy savings in the industrial sector, the directive extends the obligation to carry out energy audits to all companies that consume energy above a certain threshold, regardless of their size. This includes small and medium-sized enterprises (SMEs), where there is significant energy saving potential. Meanwhile, the directive makes energy management systems a mandatory requirement for large industrial energy consumers to monitor and optimise their energy efficiency.

Additionally, EU countries are required to ensure an appropriate level of competence for energy efficiency related professionals, aligning them with market needs and enforcing clearer and stricter requirements for the necessary competencies. This includes energy service providers, energy auditors, energy managers and installers.

The directive requires EU countries to report on energy efficiency investments, including energy performance contracts, as part of the Governance Regulation, ensuring transparency and accountability. It also establishes project development assistance mechanisms at national, regional, and local levels to support energy efficiency investments. 

Previous versions of the directive

The Energy Efficiency Directive (2012/27/EU) required all EU countries to show how they intended to meet their 2020 energy efficiency targets. This planning was done every 3 years, as of 2014, and countries had to report on the progress achieved towards their national energy efficiency targets on an annual basis. 

All the National Energy Efficiency Action Plans and Annual Progress Reports from 2007 to 2020 are published in dedicated folders, organised per country. EU countries reported on their achievement of the 2020 targets in 2022. 

Since 2020, planning and reporting is covered by the National Energy and Climate Plans (NECPs) and the related bi-annual reports. 

The 2018 amending directive

In 2018, the 'Clean energy for all Europeans package' introduced the amending Directive on Energy Efficiency (EU/2018/2002) to update the policy framework to 2030 and beyond. It established a binding energy efficiency target for a reduction in final energy consumption of at least 32.5% by 2030 (relative to the 2007 reference scenario), following on from the existing 20% target for 2020.

The amending directive also included an extension of the energy savings obligation in end use, introduced in the 2012 directive. Under the amending directive, EU countries were set a target of achieving new final energy consumption savings of 0.8% each year for the 2021-2030 period, except Cyprus and Malta, whose annual target was 0.24% instead.

Under the Governance Regulation 2018/1999, EU countries are required to draw up integrated 10-year national energy and climate plans (NECPs), outlining how they intend to meet energy efficiency and other targets for 2030.

Examples of other elements introduced in the amended directive 

  • stronger rules on metering and billing of thermal energy by giving consumers, especially those in multi-apartment buildings with collective heating systems, clearer rights to receive more frequent and more useful information on their energy consumption, also enabling them to better understand and control their heating bills
  • requiring EU countries to have in place transparent, publicly available national rules on the allocation of the cost of heating, cooling and hot water consumption in multi-apartment and multi-purpose buildings with collective systems for such services
  • monitoring efficiency levels in new energy generation capacities
  • updated primary energy factor (PEF) for electricity generation of 2.1 (down from the current 2.5)
  • a general review of the Energy Efficiency Directive (required by 2024)

Updated measures relating to national long-term renovation strategies are now covered under the amended Energy Performance of Buildings Directive (EU)2018/844.

The 2012 energy efficiency directive

Directive 2012/27/EU established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. This meant that the overall EU energy consumption should be no more than 1312 million tonnes of oil equivalent (Mtoe) of primary energy or 959 Mtoe of final energy (following the UK's withdrawal). Under the directive, all EU countries were required to use energy more efficiently at all stages of the energy chain, including energy generation, transmission, distribution and end-use consumption. Both targets were overachieved in 2020, with final energy consumption reaching 907 Mtoe and primary energy consumption 1236 Mtoe. This was highly influenced by the Covid-19 pandemic.

Examples of measures to improve energy efficiency 

In the context of the directive, a number of important measures were adopted throughout the EU to improve energy efficiency in Europe

  • policy measures to achieve energy savings equivalent to an annual reduction of 1.5% in national energy sales
  • EU countries making energy efficient renovations to at least 3% per year of buildings owned and occupied by central governments
  • national long-term renovation strategies for the building stock in each EU country
  • mandatory energy efficiency certificates accompanying the sale and rental of buildings
  • the preparation of national energy efficiency action plans (NEEAPs) every three years
  • minimum energy efficiency standards and labelling for a variety of products such as boilers, household appliances, lighting and televisions (energy label and ecodesign)
  • the planned rollout of close to 200 million smart meters for electricity and 45 million for gas by 2020
  • obligation schemes for energy companies to achieve yearly energy savings of 1.5% of annual sales to final consumers
  • large companies conducting energy audits at least every four years
  • protecting the rights of consumers to receive easy and free access to data on real-time and historical energy consumption
Recommendations and good practise guidance

The European Commission published guidance notes to help EU countries fully transpose the different elements of the 2018 amending directive into national law.

Guidance notes were also published to help EU countries fully transpose the different elements of the 2012 directive into national law.

More specific good practice guidance for EU countries on the implementation of aspects of Articles 9-11 relating to collectively provided thermal energy in multi-apartment buildings has also been developed at the request of the Commission and is available at CIRCABC.

Commission recommendations

Guidance notes

Implementing the Energy Efficiency Directive 2012/27/EU – Commission Guidance (COM(2013) 762)

Press material