Brief background
The European Union (EU) has stepped up its efforts to promote sustainability and environmental protection. An important milestone on this path is the recent European Directive 2024/01275, which establishes new guidelines for the sustainable management of buildings.
Last April 2024, the European Parliament reached a significant milestone by finalizing the adoption of the Directive on the energy performance of buildings. This Directive, part of the EU Green Deal [1], has the main objective of reducing greenhouse gas emissions and increasing the energy efficiency of buildings in the EU.
The new Directive underlines the need to establish minimum energy performance standards, encourage the energy renovation of existing buildings and promote the use of solar energy technologies. It also highlights the importance of phasing out the use of fossil fuels for heating and cooling buildings, with the aim of achieving zero-emission buildings by 2050.
The Energy Performance of Buildings Directive (EPBD) has significant implications and opportunities for Member States, companies and society in general.
What are the key points of this Directive?
The EPBD sets ambitious targets for improving the energy efficiency of existing buildings and new constructions. This includes promoting technologies and practices that reduce energy consumption and carbon emissions, such as:
Solar Energy Technologies: promotes the implementation of solar technologies in buildings, such as solar photovoltaic panels and solar thermal energy systems.
Electrification of Buildings: encourages the use of heat pumps and other electrification technologies, which are more efficient and have lower carbon emissions compared to traditional heating systems based on fossil fuels.
Energy Storage: underlines the importance of integrating energy storage systems, such as batteries, to maximize the use of locally generated renewable energy.
To achieve zero-emission buildings by 2050, the Directive encourages the deep energy renovation of existing buildings. This involves:
Renovation Passports: tools that provide a long-term vision for the energy renovation of buildings, allowing renovations to be planned and carried out in stages.
Long-term Renewal Contracts: contracts that guarantee financing and technical support for deep energy renewals, facilitating the execution of large-scale projects.
Financial and administrative support: highlights the need for financial and administrative support to encourage and facilitate energy renovations, especially for residential buildings.
The EPBD emphasizes the crucial role of electric vehicles in decarbonization and promotes the installation of charging systems in buildings. Measures include:
Pre-wiring and conduits: the installation of pre-wiring and conduits in new and renovated buildings to facilitate the rapid deployment of charging points for electric vehicles.
Smart Charging: the integration of intelligent, two-way charging technologies that allow buildings to interact with the electricity grid, optimizing energy consumption and reducing costs.
The digitalization of the construction sector is key to improving the energy efficiency of buildings. The Directive promotes this:
Smart Technologies: application of energy management systems and digital replicas (of a physical asset, process or system) that help monitor and optimize the energy performance of buildings in real time.
Indicators of Readiness for Smart Technologies: tools to assess the readiness of buildings for the implementation of smart technologies, encouraging the adoption of innovative solutions.
EPBD has the potential to reduce energy poverty by making buildings more accessible and affordable to maintain for their occupants, through the following measures:
Renovation of Vulnerable Buildings: prioritizing the renovation of buildings that house vulnerable households, providing better living conditions and reducing energy costs.
Assistance and Advice: Offering technical assistance and transparent advice to help citizens make informed decisions about the energy renovation of their buildings.
Each Member State is responsible for developing its own plan - the National Building Renovation Plan (PNRE). This initiative is part of the EPBD and aims to promote energy efficiency and the renovation of buildings in order to improve the energy efficiency and comfort of buildings, reduce greenhouse gas emissions and promote job creation in the construction sector.
Firstly, the plan requires a comprehensive analysis of the existing housing stock, considering its composition, age, energy efficiency and renovation needs. This involves identifying obstacles in the market, construction sector capacities, energy efficiency and renewable energies, as well as assessing the vulnerability of households.
The plan then sets clear and measurable targets and progress indicators to monitor the progress of the transformation of existing buildings into emission-neutral structures, including the reduction of energy poverty.
In addition, it should detail the specific policies and measures that will be implemented, and when, to support the implementation of the targets set. This could include financial incentives, energy performance regulations and technical support programs to encourage building owners to carry out energy renovation work.
Another important aspect is identifying the investment needs and sources of funding available for renovation activities. This may involve public resources, private funding and European Union support instruments.
The plan also sets minimum energy performance standards for non-residential buildings and defines a path for the renovation of the residential building stock, with intermediate targets for reducing energy consumption.
In addition, the PNRE promotes the training and qualification of professionals in the construction sector, namely architects, engineers and technicians specializing in energy efficiency. This measure aims to guarantee the availability of qualified labor to carry out renovation work. It also raises public awareness of the importance of energy efficiency in buildings, with the aim of encouraging building owners to adopt more sustainable practices.
Public consultations are held to ensure the participation of relevant stakeholders, such as local authorities, civil society organizations and vulnerable groups.
The European Commission assesses the plans submitted, checking that the targets are ambitious enough, that the policies and measures proposed are appropriate and that the resources allocated are sufficient. On the basis of this assessment, specific recommendations can be formulated for each member state to ensure alignment with the general objectives of reducing emissions and improving energy efficiency.
The NRP Model, mentioned in Article 3 of the Directive, defines mandatory and optional indicators, as well as policies and measures, targets and trajectories for the renovation of the building stock. Here is a simplified version:
You can find more information in the official EU document.
The Common General Framework for the Methodology for Calculating the Energy Performance of Buildings, referred to in Article 4 of the Directive, sets out the guidelines for determining the energy performance of buildings. This is based on calculated or measured energy consumption and should reflect typical consumption for heating, cooling, hot water, ventilation, lighting and other technical systems.
Member States should ensure that typical energy consumption is representative of actual conditions and user behavior. The methodology must make it possible to identify the influence of occupant behavior and the local climate. Energy performance shall be expressed by a numerical indicator of primary energy per reference area per year.
The methodology is described on the basis of relevant European standards and must be transparent and open to innovation. Member States shall recognize and account for the benefits of providing district heating or cooling networks in the methodology.
Energy needs are calculated at monthly intervals to take into account the variability of conditions. Primary energy factors are regularly updated and based on expected energy matrices.
Energy performance is expressed by additional indicators, including renewable energy, non-renewable energy and greenhouse gas emissions. The methodology considers a variety of aspects, including thermal characteristics, technical installations and climatic conditions.
Buildings are classified into various categories to facilitate the calculation of energy performance.
The EPBD brings several opportunities for different sectors and actors involved in the real estate market and the energy transition. Some of them are:
Technological Innovation: drives technological innovation in the construction sector, stimulating the development of new technologies and solutions for more energy-efficient buildings.
Renewable Energy Market: promotes the use of renewable energies in buildings, creating opportunities for companies that supply solar, wind and geothermal energy technologies, among others.
Energy Efficiency: companies specializing in energy efficiency can thrive with the growing demand for energy assessment services, consultancy and implementation of efficiency measures.
Sustainable Construction: encourages more sustainable building practices, opening up opportunities for companies that provide sustainable building materials and green building solutions.
Green Jobs: the transition to more efficient and sustainable buildings creates green job opportunities throughout the construction value chain, from design and construction to maintenance and renovation.
Consultancy and Training: the demand for consultancy and training in energy efficiency and sustainability increases with the implementation of the EPBD, offering opportunities for companies and professionals specializing in this area.
Real Estate Market: values buildings with higher energy certification, creating a more attractive market for them.
Smart Technologies: The integration of smart technologies in buildings, as promoted by the EPBD, opens up opportunities for companies developing automation, energy management and building performance monitoring solutions
The approval of the Energy Performance of Buildings Directive (EPBD) plays a crucial role in decarbonization for several reasons:
Reducing Carbon Emissions: the construction sector is responsible for a significant portion of greenhouse gas emissions. By promoting more energy-efficient buildings, the EPBD contributes to reducing the carbon emissions associated with the construction and operation of buildings.
Encouraging the Adoption of Renewable Energy: encourages the installation of renewable energy systems in buildings, such as solar panels and geothermal energy systems. This not only reduces carbon emissions, but also promotes the transition to a cleaner and more sustainable energy matrix.
Improved Energy Efficiency: more energy-efficient buildings consume less energy for heating, cooling, lighting and other needs, which reduces the demand for fossil fuels and, consequently, the associated carbon emissions.
Alignment with EU Climate Goals: The EPBD is aligned with the EU's climate goals, including those set out in the Paris Agreement and the European Green Deal. By meeting the energy efficiency and decarbonization targets of the construction sector, the EU is making progress towards a low-carbon and climate-resilient economy.
Find out about Nextbitt's solutions that can help you implement the main measures of the EPBD.
[1] The European Green Deal outlines a set of measures to tackle climate challenges and make Europe the first carbon-neutral continent by 2050, by reducing greenhouse gas emissions and promoting the transition to clean and renewable energies.