Celebrating One Year of Europe’s Green Buildings Law
The Energy Performance of Buildings Directive (EPBD) is a key pillar in reducing Europe’s energy dependency and cutting emissions, ensuring a highly efficient and decarbonised building stock by 2050.
A path to decarbonised buildings
According to Eurostat and the EEA Greenhouse Gas Inventory report, buildings are the largest energy consumers, and among the biggest contributors to climate change in Europe, accounting for around 40% of total energy use and over one-third of the EU’s energy-related greenhouse gas (GHG) emissions. Heating, cooling, and hot water alone make up approximately 80% of household energy consumption. Given this, the EPBD is vital in reducing energy demand, cutting emissions, and promoting energy efficiency in the building sector. In practice, the EPBD aims to influence the choice of materials and heating systems in buildings, the type of energy used to power them, and the evaluation of their energy efficiency and greenhouse gas emissions.
Improving the energy performance of buildings brings multiple benefits such as lower energy bills and reduced energy poverty. Additionally, energy efficiency measures enhance citizens’ health and well-being, stimulate economic growth, strengthen EU industries, and generate green jobs.
Key milestones of the EPBD timeline:
2010: EPBD was introduced.
2018: Amendment of the EPBD, reinforcing the EU’s commitment to modernizing buildings.
2020: The Commission launched its Renovation Strategy, outlining an action plan to accelerate renovations.
2021: The Fit for 55 package highlighted the importance of renovation and proposed a Social Climate Fund to support vulnerable groups in the green transition.
December 2021: The Commission proposed a major EPBD revision, aligning regulations with climate and social objectives.
May 2022: The REPowerEU Plan emphasised improving buildings’ energy performance to reduce reliance on fossil fuel imports.
December 2023: The EU reached a provisional agreement on the EPBD revision.
May 2024: The revised directive was published in the Official Journal and entered into force 20 days later.
Why was the EPBD revised?
The revision aimed to increase renovation rates, particularly for poorly performing buildings, and support air quality improvements, digitalisation of energy systems, and sustainable mobility infrastructure.
Recognising the diverse climate conditions and building stocks across EU countries, the revision aims to allow each government to tailor renovation measures to their national context. However, the principle of subsidiarity has been a key point of contention throughout the EPBD revision process. This principle dictates that in certain policy areas, the EU refrains from taking action, as national, regional, or local authorities are better equipped to handle them. As a result, differing national regulations governing the housing market and construction sector, combined with competing interests within the renovation ecosystem, have made negotiations a complex balancing act. Additionally, the EPBD seeks to harmonize the building decarbonization process across EU Member States – a challenge further complicated by the diverse housing stock and regional variations.
EPBD’s contribution to climate goals
The directive complements the European Green Deal, contributing to a 60% reduction in building-related emissions by 2030 (compared to 2015) and achieving a zero-emission building stock by 2050. However, according to a study from 2024, most EU Member States have yet to fully implement all mandatory Energy Performance Certificate (EPC) indicators required by the revised directive. EPC stands out as a crucial tool for data exchange between property owners, investors, and policymakers, promoting energy awareness in real estate. While in some Member States with well-established EPC schemes, positive market impacts are evident, only a few financial institutions use EPCs as a standard benchmark for building conditions. The study highlights inconsistent compliance across Member States, due to differences in regulations, technical expertise, and assessor training. It suggests standardising methodologies and improving training programs as key steps to achieving uniform EPC implementation across Europe.
Despite the weakening of the directive, the EPBD marks a significant milestone, ushering in a new era for buildings across the EU, provided that all Member States ensure building regulations are inclusive and leave no one behind.