Buildings are the single largest energy consumer in Europe. The building sector is therefore crucial to achieving the EU's energy and climate goals.
Key facts on energy and EU buildings
85% of EU buildings were built before 2000 and amongst those, 75% have a poor energy performance. Acting on the energy efficiency of buildings is therefore key to saving energy and achieving a zero-emission and fully decarbonised building stock by 2050. These facts and those below come from Eurostat energy balances and EEA Greenhouse Gas Inventory, 2023.
To boost the energy performance of buildings, the EU has established a legislative framework that includes the Energy Performance of Buildings Directive EU/2024/1275 and the Energy Efficiency Directive EU/2023/1791, both revised in 2023.
Together, the directives promote policies that will help
- achieve a highly energy efficient and decarbonised building stock by 2050
- create a stable environment for investment decisions
- enable consumers and businesses to make more informed choices to save energy and money
Revised Energy Performance of Buildings Directive
The revised Energy Performance of Buildings Directive (EU/2024/1275) will increase the rate of renovation, particularly for the worst-performing buildings in each country. It will also support better air quality, the digitalisation of energy systems for buildings and the roll-out of infrastructure for sustainable mobility.
Recognising the differences across EU countries in factors such as the existing building stock, geography and climate - the directive allows governments to decide on the renovation measures best-suited to their specific national context.
Countries can also exempt various categories of buildings from the rules including historical buildings and holiday homes.
Crucially, the revised directive will facilitate more targeted financing to investments in the building sector, complementing other EU instruments and fighting energy poverty by supporting vulnerable consumers. EU countries will also have to ensure that there are safeguards for tenants, such as through rent support or caps on rent increases.
To ensure that buildings are fit for the EU's enhanced climate ambition under the European Green Deal, the revised directive will contribute to the objective of reaching emission reductions of at least 60% in the building sector by 2030 compared to 2015 and achieving climate neutrality by 2050.
It will work hand in hand with other policies of the Green Deal package, in particular with the emissions trading system for fuels used in buildings, the revised Energy Efficiency Directive (EU/2023/1791), the revised Renewable Energy Directive (EU/2023/2413), as well as the Alternative Fuels Infrastructure Regulation.
Other measures in the revised EPBD include
- the gradual introduction of minimum energy performance standards for non-residential buildings to support the renovation of buildings with the lowest energy performance
- national trajectories to reduce the average primary energy use of residential buildings
- an enhanced standard for new buildings, including a more ambitious vision for buildings to be zero-emission
- enhanced long-term renovation strategies, to be renamed national Building Renovation Plans
- increased reliability, quality and digitalisation of Energy Performance Certificates with energy performance classes to be based on common criteria
- a definition of deep renovation and the introduction of building renovation passports
- ensuring new buildings are solar-ready (fit to host solar installations) where technically and economically feasible
- a gradual phase-out of stand-alone boilers powered by fossil fuels, starting with the end of subsidies to such boilers from 1 January 2025
- one-stop-shops for the energy renovations of buildings for home-owners, small and medium-sized enterprises and other stakeholders
- the modernisation of buildings and their systems and better energy system integration (for heating, cooling, ventilation, charging of electric vehicles and renewable energy)
Legislative timeline
The initial Energy Performance of Buildings Directive (EU/2010/31) was amended in 2018, as part of the Clean energy for all Europeans package. The amending directive introduced new elements and sent a strong political signal on the EU’s commitment to improving and modernising the buildings sector.
In October 2020, the Commission presented its Renovation Wave strategy, as part of the European Green Deal. It contains an action plan with concrete regulatory, financing and enabling measures to boost building renovations. The strategy aims to at least double the annual energy renovation rate of buildings by 2030 and foster deep renovation - another revision and strengthening of the EPBD is one of its key building blocks.
The Delivering the European Green Deal (or ‘Fit for 55’) package, presented in July 2021, further emphasised the importance of building renovation and also suggested a Social Climate Fund to support vulnerable citizens and small businesses in the green transition, including through the renovation of buildings, clean heating and cooling and the integration of more renewable energy.
The Commission published its proposal for a revision of the EPBD in December 2021. It sought to upgrade the existing regulatory framework to reflect higher ambition and a more pressing need for climate and social action.
The REPowerEU plan, adopted in May 2022, further highlighted the need to address the EU's building stock to reduce Europe’s dependence on foreign energy sources.
On 7 December 2023, the co-legislators reached a provisional agreement on the revision, formally adopted on 12 April 2024.
Timeline
- April 2024
- December 2023
Provisional agreement between the co-legislators on the EPBD revision
- October 2022
- May 2022
REPowerEU Plan, including the EU ‘Save Energy’ Communication
- December 2021
- July 2021
Delivering the European Green Deal (“Fit for 55” package)
- October 2020
- May 2018
Advantages of EU building renovation
Improving the energy performance of buildings not only saves energy and reduces energy bills, thereby reducing energy poverty and making Europe more energy independent, it also benefits the health and wellbeing of citizens by bringing living standards up to the 21st century for everyone.
Furthermore, investments in energy efficiency help stimulate the economy and create more green jobs. The EU’s construction industry contributes around 9.6% of the EU’s value added and employs almost 25 million people in 5.3 million firms. Small and medium-sized enterprises (SMEs) in particular benefit from a boosted renovations market, as they make up 99% of EU construction companies and 90% of the employment in the sector.
Source: European Commission reports 2020 -2021.
Current rules to improve the EU's building stock
The directive in force (2018/844/EC) covers a broad range of policies and support measures helping EU countries to boost the energy performance of their buildings.
EU countries must establish long-term renovation strategies, aimed at decarbonising their national building stock by 2050.
The directive also requires that EU countries set cost-optimal minimum energy performance requirements for new buildings, for existing buildings undergoing major renovation and for the replacement or retrofit of building elements like heating and cooling systems, roofs and walls.
Since 2021, all new buildings must be nearly zero-energy buildings (NZEB).
When a building is sold or rented, energy performance certificates must be issued and inspection schemes for heating and air conditioning systems must be established.
The directive introduces requirements on the installation of building automation and control systems and on devices that regulate temperature at room level.
The directive addresses the health and wellbeing of building users, through its air quality and ventilation considerations, for example.
EU countries are also required to draw up lists of national financial measures to improve the energy efficiency of buildings.
The Commission published 2 recommendations in 2019, including guidelines for EU countries related to these rules.
- Commission recommendation on building renovation (EU) 2019/786
- Commission recommendation on building modernisation (EU) 2019/1019
Energy performance of buildings standards
The Commission has established a set of standards and accompanying technical reports to support the directive called the energy performance of buildings standards (EPB standards). These are managed by the European Committee for Standardisation (CEN).
Documents
- EU countries' cost-optimal reports (2013 - 2018 - 2023)
- Factsheet: Buildings fit for a greener future (December 2021)
Related links
Energy Performance of Buildings Directive adopted to bring down energy bills and reduce emissions (12/04/2024)
- New rules to boost energy performance of buildings (7/12/2023)
- Renovation and decarbonisation of buildings (15/12/2021)
- Article: Energy efficiency in buildings (EN | FR | DE | IT | ES | PL, February 2020
- Energy Performance of Buildings Directive (EU/2024/1275)
- Promotion of e-mobility through buildings policy (COM/2023/76)
- Proposal for a recast Directive on the energy performance of buildings (COM/2021/802 final)
- Implementing regulation on optional scheme for rating smart readiness of buildings C(2020) 6929 | Annex
- Delegated regulation on optional scheme for rating smart readiness of buildings C(2020) 6930 | Annex
- Recommendation on building renovation (EU/2019/786)
- Recommendation on building modernisation (EU/2019/1019)
- Amending Energy Performance of Buildings Directive (2018/844/EU)
- Energy Performance of Buildings Directive (2010/31/EU)
- Consolidated version of the Energy Performance of Buildings Directive
- Technical study on the possible introduction of optional building renovation passports (May 2020)
- Renovation wave communication COM 2020 662 final | Staff working document SWD(2020) 550 final
- Technical study on the possible introduction of optional building renovation passports (May 2020)
- Build up - The European portal for energy efficiency in buildings
- Concerted Action EPBD forum