All blogposts
New EU Energy Performance of Buildings Directive (EPBD): Implications and Opportunities
All blogposts
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:
To achieve zero-emission buildings by 2050, the Directive encourages the deep energy renovation of existing buildings. This involves:
The EPBD emphasizes the crucial role of electric vehicles in decarbonization and promotes the installation of charging systems in buildings. Measures include:
The digitalization of the construction sector is key to improving the energy efficiency of buildings. The Directive promotes this:
EPBD has the potential to reduce energy poverty by making buildings more accessible and affordable to maintain for their occupants, through the following measures:
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.
In summary, some of the key measures of the National Building Renovation Plan (PNRE) under the European Energy Performance of Buildings Directive (EPBD) are:
Member states must submit their draft plans to the European Commission every five years, subject to evaluation and possible recommendations. 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:
Here we highlight the key points of the National Plan model, making it easier to understand and implement measures for the energy renovation of buildings.
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:
The approval of the Energy Performance of Buildings Directive (EPBD) plays a crucial role in decarbonization for several reasons:
In conclusion, the EPBD not only boosts the transition to more efficient and sustainable buildings, but also creates significant economic opportunities in various sectors related to construction and energy, representing a step forward in the EU's journey towards sustainability, because by boosting the energy efficiency of buildings, this legislation contributes to reducing carbon emissions and creates opportunities for economic growth and improving the quality of life of European citizens. The approval of the EPBD is fundamental to decarbonization, as it promotes energy efficiency, the use of renewable energies and the reduction of carbon emissions in the construction sector, thus contributing to global efforts to combat climate change.
Find out about Nextbitt's solutions that can help you implement the main measures of the EPBD.
[1] The European GreenDeal 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.
André Calixto
Partner & CEO, Nextbitt
