After two years of negotiation, the Energy Performance of Buildings Directive has been approved by the European Parliament. The proposed revision aims to progressively reduce greenhouse gas emissions and energy consumption in the EU building sector and make it climate-neutral by 2050.

The newly adopted version of the directive sets targets for reducing energy use in residential and non-residential buildings, with a focus on renovating the worst-performing structures.

Ciarán Cuffe, Greens/EFA MEP and European Parliament Rapporteur on the directive, comments:

“This is the first step towards a carbon-neutral building stock by 2050. It is needed now more than ever, as the recent findings of the European Environment Agency show that urgent and decisive action is essential if we want to avoid the worst consequences of climate change.

This law has come under sustained attacks from the conservatives. Much like with the Nature Restoration Law, they would rather continue with the status quo. But this law is not only good for the planet, it is also good for people. It will lower energy bills for everyone, prioritise renovation funding for vulnerable groups and enhance renter protections. It focuses on improving the ability of buildings to harness local renewables, which, combined with social safeguards and financial support, will improve housing quality, cut import dependency, and fight energy poverty. It is also set to create hundreds of thousands of jobs in the efficiency and renewable industries. This is the Just Transition in action: we have set a pathway to achieve a climate-neutral building stock, and we have paved that pathway with measures to ensure that the people who can least afford to renovate are protected and prioritised along the way.”

Emissions-reduction targets

  • All new buildings should be zero-emission as of 2030, while new buildings occupied or owned by public authorities should be zero-emission as of 2028. When calculating the emissions, Member States will take into account the life-cycle global warming potential of a building.
  • For residential buildings, Member States will have to put in place measures to ensure a reduction in the average primary energy use of at least 16% by 2030 and at least 20 to 22% by 2035.
  • Member States will have to renovate the 16% worst-performing non-residential buildings by 2030 and, by 2033, the worst-performing 26% through minimum energy performance requirements.
  • If technically and economically suitable, Member States would have to deploy solar installations progressively in public and non-residential buildings, depending on their size, and in all new residential buildings by 2030.


Phasing out fossil fuel boilers

  • Member States have to outline how they will adopt measures to decarbonise heating systems, to phase out fossil fuels in heating and cooling by 2040. Subsidising stand-alone fossil fuel boilers will be prohibited as of 2025.
  • Financial incentives will still be possible for hybrid heating systems that use a considerable share of renewable energy, such as those combining a boiler with a solar thermal installation or a heat pump.


Exemptions

  • Agricultural buildings and heritage buildings can be excluded from the new rules, while EU countries may decide to also exclude buildings protected for their special architectural or historical merit, temporary buildings, and churches and places of worship.


Next steps

The directive was adopted with 370 votes to 199, with 46 abstentions. It will now have to be formally endorsed by the Council to become law.