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The EU restructuring compromise receives praise and criticism

The EU restructuring compromise receives praise and criticism

,   and  ASMedia
2 min read
The EU restructuring compromise receives praise and criticism
The EU restructuring compromise receives praise and criticism

Title: The EU's Real Estate Restructuring Compromise: Expectations and Criticisms

The EU's recent agreement on enhancing the energy efficiency of buildings has stirred controversy. While environmentalists advocate for stricter measures, associations representing homeowners, the construction industry, and skilled trades have responded positively. They celebrate the apparent removal of a comprehensive refurbishment obligation for poorly insulated residential buildings.

Negotiators from the European Parliament and EU member states have settled on stricter energy efficiency requirements to combat climate change. Residential buildings are expected to reduce energy consumption by 16% on average by 2030 and up to 22% by 2035. In contrast, non-residential buildings must renovate 16% of their least energy-efficient structures by 2030 and 26% by 2033. The EU member states hold significant authority in determining how these targets are met.

Homeowner associations, such as Haus & Grund, discuss concerns over potential property value drops due to renovation requirements. Despite reassurances, homeowners throughout Europe are grappling with substantial challenges to meet the agreed-upon energy savings targets. On the other hand, the Federal Association of German Housing and Real Estate Companies acknowledges the necessity of reducing CO2 emissions and commends the agreement as a positive step forward.

Critics argue that targets for energy efficiency in poorly constructed buildings have been significantly downgraded, aligning with minimal expectations. Irmela Colaço, a building expert with the German Federation for the Environment and Nature Conservation, calls for stricter requirements for these structures. Construction inefficiencies fuel the climate crisis and contribute to energy poverty. Nabu, the National German Nature Conservation Union, agrees and emphasizes the hardships faced by low-income individuals living in subpar housing, disproportionately affected by high energy costs and climate impacts.

Understanding the EU's Initiatives

  1. Energy Efficiency Directive (EU 2023/1791): Part of the "Fit for 55" legislative package, this directive seeks to decrease energy consumption and promote renewable energy, setting a goal to reduce final energy consumption by 11.7% by 2030 compared to 2020 levels.
  2. European Green Deal: The EU Green Deal includes ambitious carbon neutrality goals for 2050, with intermediate targets to reduce net greenhouse gas emissions by at least 55% by 2030 and 90% by 2040 compared to 1990 levels.
  3. Energy Performance of Buildings Directive (EPBD): Revised in 2024 as part of the Fit for 55 package, the EPBD introduces new provisions, requiring Member States to publish roadmaps with life cycle Global Warming Potential (GWP) targets and limit values for new buildings.

Understand your stakeholders and grasp the policy landscape as the EU continues to implement regulations and incentives for sustainable real estate practices.

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