Brussels: Europe and the Arabs
The European Commission  welcomed the interim agreement reached between the European Parliament and the Council to reduce emissions and energy use in buildings across the EU. “The Enhanced Energy Performance of Buildings Directive (EPBD) will support the EU’s efforts to decarbonize buildings across the Union,” she said in a statement issued in Brussels. “This is where the tangible impact of the European Green Deal will improve people’s quality of life, in their homes and workplaces.” This deal will also strengthen Europe's energy independence in line with the REPowerEU plan and will make a strong business case for the EU's clean buildings sector.

Better performing buildings for lower energy bills and emissions
The revised directive will set out a set of measures that will help EU governments to structurally enhance the energy performance of buildings, with a particular focus on the worst-performing buildings. Each Member State will adopt its own national path to reduce average primary energy use in residential buildings by 16% by 2030 and 20-22% by 2035, allowing sufficient flexibility to take into account national circumstances. Member States are free to choose which buildings to target and what measures to take. National measures must ensure that at least 55% of the reduction in average primary energy use is achieved through the renovation of the worst performing buildings.

For non-residential building stock, the revised rules require it to be gradually improved through minimum energy performance standards. This will result in the renovation of the worst-performing buildings by 16% by 2030 and the worst-performing buildings by 26% by 2033. Member States will have the possibility to exempt certain categories of residential and non-residential buildings from these obligations, including historic buildings or holiday homes. Enhanced Energy Performance Certificates (EPCs) will be based on a common EU model with common standards, to better inform citizens and make financing decisions across the EU easier. To combat energy poverty and reduce energy bills, financing measures will need to incentivize and accompany renovations, and particularly target vulnerable customers and the worst-performing buildings, where a higher proportion of energy-poor households live. Member States will also need to ensure that safeguards are in place. For tenants, to help address the risk of eviction for vulnerable households due to disproportionate rent increases following renewal.
Launching a wave of renewal
The revised EPBD contains measures to improve strategic planning for renewals and tools to ensure these renewals occur. Under the agreed provisions, member states will: Develop national building renovation plans to define the national strategy for decarbonizing the building stock and how to address remaining barriers, such as financing, training and attracting more skilled workers. Prepare plans for national building renovation cards to guide building owners in their phased renovations towards zero-emission buildings. Establish one-stop centers for homeowners, SMEs and all actors in the renovation value chain, to receive tailored and independent support and guidance. In addition, the deal will help the European Union to phase out, in a phased manner, fossil fuel-fired boilers. Subsidies for the installation of stand-alone fossil fuel boilers will no longer be permitted from 1 January 2025. The revised Directive provides a clear legal basis for Member States to determine requirements for heat generators based on GHG emissions and fuel type. Used, or minimum share of renewable energy used for heating. Member States will also have to put in place specific measures on the phase-out of fossil fuels in heating and cooling with the aim of completely phasing out fossil fuel-fired boilers by 2040.
Promoting sustainable mobility
The deal will also promote the adoption of sustainable mobility thanks to provisions for advance cabling and recharging points for electric vehicles and parking spaces for bicycles. Pre-cabling will become the norm for new and renovated buildings, thus facilitating access to renewable infrastructure and contributing to the EU's climate ambition. In addition, requirements on the number of recharging points in both residential and non-residential buildings will be strengthened. Member States will also need to remove barriers to the installation of recharging points, to ensure the “right to plug in” becomes a reality. In general, recharging points should enable smart charging, and bi-directional charging where applicable. Finally, the provisions will ensure there are sufficient parking spaces for bicycles, including cargo bikes.
Zero emission standard for new buildings
The revised directive will make zero-emission buildings the new standard for new buildings. Under the agreement, all new residential and non-residential buildings must have zero on-site emissions from fossil fuels, starting January 1, 2028 for publicly owned buildings, and starting January 1, 2030 for all other new buildings, with the possibility of specific exceptions.
Member states will also have to ensure that new buildings are solar-ready, meaning they must be suitable to host rooftop photovoltaic or solar thermal installations. Installing solar energy facilities will become the norm for new buildings. For existing public and non-residential buildings, solar energy should be installed gradually, starting in 2027,

This is technically, economically and functionally possible. These provisions will come into force at different time periods depending on the type and size of the building.

The provisional agreement reached today requires formal adoption by the European Parliament and the European Council. Once this process is completed, the new legislation will be published in the Official Gazette of the Federation and enter into force.

Buildings are responsible for approximately 40% of EU energy consumption, more than half of EU gas consumption (mainly through heating, cooling and domestic hot water), and 36% of energy-related greenhouse gas emissions. Nowadays, about 35% of buildings in the European Union are more than 50 years old, and about 75% of buildings are energy inefficient. Meanwhile, the average annual energy renewal rate is only about 1%.

In 2020, the Commission presented its Renewal Wave Strategy, as part of the European Green Deal, with the review of the Buildings Energy Performance Directive being a key initiative. As set out in the Renewal Wave Strategy, the Commission aims to at least double renovation rates by 2030 and ensure that renovations lead to increased energy efficiency and more renewables in buildings. The Commission's proposal to revise the EPBD was supplemented in December 2021 with additional elements on the deployment of solar energy in buildings as part of the REPowerEU plan in May 2022.