Advancing Climate Goals in Europe: Key Developments in the EPBD Recast

The European Union's commitment to achieving climate neutrality by 2030, with a target of a 55% reduction in greenhouse gas emissions, is propelled by legislative initiatives such as the European Climate Law. A significant stride in this direction is the revision of the Energy Performance of Buildings Directive (EPBD), encapsulated within the "Fit for 55" package. This article delves into the latest developments in the legislative process of the EPBD recast, outlining its main requirements, and anticipated positive impacts.

The EPBD, a pivotal component of the Climate Law policy, aspires to transform the European building stock into zero-emission structures by 2050. The revised directive intensifies the focus on zero-emission buildings (ZEB), necessitating the renovation of approximately 75% of the existing inefficient building stock within the next 25 years.

The Commission's proposal for the EPBD revision was published in December 2021. The REPowerEU plan in May 2022 further emphasised the urgency of addressing the EU's building stock to reduce dependence on foreign energy sources.

On December 7th, 2023, a provisional political agreement was reached between the Council and the Parliament on the EPBD recast. Following formal adoption by both entities, the legislation is expected to be published in the Official Journal of the Union and come into force in Q2 2024.

Main Requirements of the Recast EPBD:

1. Whole Life Cycle Declaration for New Buildings (from 2028): the EPBD mandates the assessment and reporting of embodied carbon in new buildings, utilising established standards such as EN 15978 and Level(s). National methods and tools may be employed, provided they meet the minimum criteria of Level(s).
2. National Roadmaps and Decarbonization Targets: the EPBD requires Member States to develop national roadmaps for carbon limits in buildings by 2027. Imposes a roadmap for the decarbonization of the entire building stock by 2030.
3. National Building Renovation Plan: the EPBD mandates each Member State to establish a comprehensive national building renovation plan. The plan aims to achieve a highly energy-efficient and decarbonized building stock by 2050, transforming existing buildings into zero-emission structures.
4. Minimum Energy Performance (MEP) Standards: the EPBD requires Member States to set minimum energy performance requirements for buildings or building units with a focus on achieving cost-optimal levels and, where applicable, stricter reference values, such as nearly zero-energy and zero-emission building requirements.
5. Zero-Emission Buildings: Member States are obligated to ensure that new buildings achieve zero-emission status:
   
   a) As of January 1, 2028, for new buildings owned by public bodies
   b) As of January 1, 2030, for all new buildings.

Throughout the trialogues, there was an anticipation that the Minimum Energy Performance Standards (MEPS) would pose the most significant challenge in the compromised agreement, leading to an expected dilution. RICS is of the view that the softened MEPS provisions may impede the realisation of the directive's goals. Nonetheless, a compromised EPBD still holds value compared to the absence of any legislation. Despite concerns about MEPS, we express our endorsement for the incorporation of ambitious measures concerning Whole Life Carbon.

RICS will monitor political developments following the plenary vote and subsequently concentrate on the implementation of the EPBD.

For any questions, please contact Valeria Sepe, EU sustainability specialist at vsepe@rics.org.