EU Parliament approved updates to the Energy Performance of Buildings Directive

The European Parliament gave today its final approval on the revised Energy Performance of Buildings directive. Today’s vote signals the closure of the first of 8 legislative proposals part of the Clean Energy for All Europeans package brought forward by the European Commission on 30 November 2016. This package is a key element of one of the Juncker Commission’s priorities, “a resilient Energy Union and a forward-looking climate change policy“.

The changes agreed today tap into the huge potential for efficiency gains in the building sector, the largest single energy consumer in Europe. They include measures that will accelerate the rate of building renovation towards more energy efficient systems and strengthen the energy performance of new buildings, making them smarter.

Vice-President responsible for the Energy Union Maroš Šefčovič said: “By renovating and making our buildings in Europe smarter, we are attaining several simultaneous objectives: lower energy bills, better health, protection of the environment and reduction of our emissions in the EU, given that over a third of these are produced by buildings. And as technology has blurred the distinction between sectors, we are also establishing a link between buildings and e-mobility infrastructure, and helping stabilize the electricity grid. Another building block of the Energy Union has been laid today, let us continue ahead.”

Commissioner for Climate Action and Energy Miguel Arias Cañete added: “This is the first final agreement on a proposal of the Clean Energy for All Europeans Package, a signal that we are on the right track and we will deliver on our pledge made at the beginning of the mandate. Our ambitious commitment to clean energy in Europe and the Paris Agreement will be made a reality by laws like the one voted today: the revised buildings directive will help create local jobs, save consumers money and improve Europeans’ quality of life. It will also help combat energy poverty by reducing the energy bills of older buildings which will be renovated. I now call on the European Parliament and the Council to show leadership and complete the rest of the proposals of the Clean Energy for All Europeans Package.”

Main achievements:

• Creates a clear path towards a low and zero-emission building stock in the EU by 2050 underpinned by national roadmaps to decarbonise buildings.
• Encourages the use of information and communication technology (ICT) and smart technologies to ensure buildings operate efficiently for example by introducing automation and control systems.
• Supports the rollout of the infrastructure for e-mobility in all buildings (although to a lesser extent than in the Commission’s proposal).
• Introduces a “smart readiness indicator” which will measure the buildings’ capacity to use new technologies and electronic systems to adapt to the needs of the consumer, optimise its operation and interact with the grid.
• Integrates and substantially strengthens long term building renovation strategies.
• Mobilises public and private financing and investment.
• Helps combatting energy poverty and reducing the household energy bill by renovating older buildings.

Next steps

Following this approval by the European Parliament of the revised directive on Energy Performance of Buildings, the Council of Ministers will now have to finalise its formal agreement in an upcoming Council meeting in the coming weeks. This endorsement will be followed shortly by the publication of the text in the Official Journal of the Union, which will enter into force 20 days after publication. Member States will then have to transpose the new elements of the Directive into national law within 20 months.

Background

The energy performance of buildings directive (EPBD) is part and parcel of the implementation of the Juncker Commission priorities to build “a resilient Energy Union with a forward-looking climate change policy”. The Commission wants the EU to lead the clean energy transition. For this reason the EU has committed to cut CO₂ emissions by at least 40% by 2030 while modernising the EU’s economy and delivering on jobs and growth for all European citizens. In doing so, the Commission is guided by three main goals: putting energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for consumers.

The building sector in the EU is the largest single energy consumer in Europe, absorbing 40% of final energy, and about 75% of buildings are energy inefficient. Likewise, and depending on the Member State, only 0.4-1.2% of the stock is renovated each year. This opens a vast potential for energy efficiency gains in Europe as well as economic opportunities: the construction industry generates about 9% of European GDP and accounts for 18 million direct jobs. Construction activities that include renovation work and energy retrofits add almost twice as much value as the construction of new buildings, and SMEs contribute more than 70% of the value added in the EU building sector.

Significant upfront investment is required for the refurbishment of buildings. The EPBD is a substantial element of the European Commission’s work to make buildings more efficient and boost renovation. This work is accompanied by enabling tools for example the revised Eurostat guidance for energy performance contracts which will help the building sector increase the necessary investments, see IP/17/3268. It works in synergy with the Smart Finance for Smart Buildings Initiative. Furthermore, with the extended European Fund for Strategic Investments (EFSI 2.0), the Commission focuses more on sustainable investments in all sectors to contribute to meeting the EU’s energy and climate targets and to help to deliver on the transition to a resource efficient, circular and low-carbon economy. At least 40% of EFSI projects under the infrastructure and innovation window should contribute to the Commission’s commitments on climate action and energy transition in line with the Paris Agreement objectives, see MEMO/17/3224.

Source: European Commission press release.