Lawmakers in the European Parliament and Council announced today that they have reached a provisional agreement to strengthen the EU’s Energy Performance of Buildings Directive (EPBD), aimed at reducing energy use and emissions in buildings, with revisions including a phase out of fossil fuel boilers, as well as a target for all new buildings to be zero emission by 2030.

Buildings are a key source of global greenhouse gas (GHG) emissions, and also one of the hardest to replace, given their long-term nature. According to the European Commission, buildings account for 40% of the energy consumed in the EU, and for 36% of energy-related GHG emissions. 80% of household energy consumption is used for heating, cooling, and hot water.

The agreement follows a proposed recast of the EPBD directive by the European Commission in December 2021, forming part of the Commission’s ‘Fit for 55’ roadmap – the EU’s proposed strategy to cut greenhouse gas (GHG) emissions by 55% by 2030, compared to 1990 levels.

Following the announced agreement, Wopke Hoekstra, EU Commissioner for Climate Action, said:

“In a climate-neutral Europe, we need to be able to heat and cool our homes and buildings with minimum emissions. We have the technologies to do this, but we need to create a stronger business case to boost energy-efficient renovations. The new Energy Performance of Buildings Directive will help mobilise additional finance and boost construction value chains.”

Key provisions in the updated directive include a requirement for all new residential and non-residential buildings to have zero on-site emissions from fossil fuels by 2030, with publicly-owned buildings required to reach this milestone by 2028. The agreed rules also requires member states to set out measures for the phase out of fossil fuels in heating and cooling of buildings, with a view to completely phase-out of boilers powered by fossil fuels by 2040.

For residential buildings, the revised rules require member states to adopt a national trajectory for the reduction of primary energy use of 16% by 2030 and 20-22% by 2035, with at least 55% of the decrease to be achieved through the renovation of the worst-performing buildings.

Non-residential buildings will be required to meet minimum energy performance standards under the proposed rules, leading to renovating the 16% worst-performing buildings by 2030 and the 26% worst-performing buildings by 2033.

All new buildings will also be required to be solar-ready under the revised directive, including being capable of hosting rooftop photovoltaic or solar thermal installations.

The new agreed directive also includes measures aimed at supporting a renovation wave for buildings, including a requirement for member states to establish national Building Renovation Plans to decarbonize their building stock and address barriers such as financing, training and attracting more skilled workers, and to set up national “building renovation passport schemes” to guide building owners in their staged renovations towards zero-emission buildings.

With the provisional agreement reached, the new directive will need to be formally adopted by the EU Parliament and Council before entering into force.

Ciarán Cuffe, Parliament’s Rapporteur for the Energy Performance of Buildings Directive, said:

“We have achieved something remarkable this evening. We created a blueprint for the transition towards a zero-emission building stock. With this plan, we add an essential pillar to the EU’s decarbonisation plans and begin the long journey towards reducing 36% of Europe’s CO2 emissions.”