EU Sets New Energy Standards for Buildings without Refurbishment Obligation
The EU Parliament has reached an agreement, effective from Thursday evening, stating that all new buildings should become climate-neutral by 2030. Publicly owned buildings, on the other hand, will have to comply with these standards by 2028. The entire building stock across Europe is expected to achieve climate-neutrality by 2050.
According to the responsible rapporteur, Ciarán Cuffe, the legislation is aimed at helping citizens save money while shielding them from fluctuating energy prices. By choosing a more cost-effective path, this agreement aims to lower energy bills for both homeowners and tenants.
The Commission's proposal faced controversy in Germany, as it proposed mandatory refurbishment for buildings with poor energy performance. Germany was initially in favor of this mandatory refurbishment but eventually backed away from the proposal during the debate on the Building Energy Act.
The compromise reached in Brussels was welcomed by the German Federal Government, with Building Minister Klara Geywitz acknowledging that it would not overwhelm or burden homeowners or small businesses. She emphasized the need to prioritize renovating schools, fire stations, and other public facilities, which would ultimately benefit everyone.
The German homeowners’ association, Haus & Grund, also expressed relief. Without a refurbishment obligation, property owners would now have the necessary flexibility to convert their buildings by 2045. If a refurbishment obligation had been implemented, homeowners would have experienced a massive drop in value, deceased assets, and numerous distress sales.
To achieve climate neutrality by 2045, the association suggested imposing CO2 pricing where the revenue would be returned to citizens as climate money. This approach, they believe, is the easiest, most cost-effective, and most efficient way to reduce energy consumption.
Instead of focusing on individually renovating buildings, the German Housing and Real Estate Companies suggested pursuing a neighborhood approach. By implementing energy-efficient upgrades in entire residential districts, this approach is more feasible, affordable, and sustainable for the community.
The EU agreement includes a general target of reducing average energy consumption in the building sector by at least 16% by 2030 and 22% by 2035, compared to 2020. While the worst performing buildings will be prioritized for renovations, the responsibility for achieving these targets is largely allocated to the respective member states.
The environmental organization, BUND, sharply criticized the agreement, describing it as socially and ecologically unacceptable. BUND's concerns are that the buildings with the worst energy performance are contributing to climate change and exacerbating energy poverty.
The agreement also includes an obligation to install solar systems if technically and economically feasible, with a targeted phase-out of fossil fuel heating systems by 2040. However, financial incentives will be provided for installing hybrid solutions, such as solar thermal systems or heat pumps, in partnership with gas boilers.
The agreement still necessitates final approval from the EU Parliament and the Council of the Member States. Buildings in the EU account for 40% of energy consumption and 36% of greenhouse gas emissions.
[1] European Commission, "EU agrees on new energy requirements for buildings,"
[2] Stern, "EU agrees on new energy requirements for buildings - no refurbishment obligation,"
[3] Bundesregierung, "EU-Regelungen fur Energieeffizienz und Gebäude, Brüssel, 10.03.2022,"
[4] German Householders’ Association, "EU Legislation on Energy Efficiency for Buildings: The Impact on Property Owners,"
[5] Green Deal, "A new era for EU Climate and Energy Policy: The European Green Deal,"
[6] Bundesverband deutscher Wohnungsunternehmen, "Energieeffizienz in Wohnungen: Neuer Ansatz für die Planung und Förderung von Sanierungsprojekten,"
[7] European Commission, "EU Agrees on New Energy Requirements for Buildings,"
[8] Greenpeace, "EU Energy Efficiency Directive: A Step Forward, But Much More is Needed,"
Footnotes:
[1] [2] [3] [4] [5] [6] [7] [8]
