The “Energy Performance of Building Directive”: Transitioning to renewables and cutting emissions

Our society is facing two crucial challenges: the fight against climate change and the energy crisis, both of which are tied to the extreme use of fossil sources such as oil, natural gas, and methane. On the one hand, the huge amount of CO2 emitted daily into the atmosphere from the combustion of these energy sources represents the main responsible for climate change. On the other hand, the difficulties encountered in energy supply, resulting in increased costs, are particularly related to restrictions on the purchase of Russian gas and oil, imposed to avoid financing the invasion of Ukraine. The solution to both problems is to reduce our energy needs and generate the necessary energy through renewable energy sources (RES).

The domestic sector is a major contributor to environmental pollution because of the huge amount of waste generated, water wastage, and most importantly, CO2 production and emission. In this context, after a year of negotiations, the European Parliament approved with 370 favorable votes the Energy Performance of Building Directive (EPBD), namely a renovation plan for residential buildings, starting with the least energy-efficient ones. The plan calls for a halt to incentives for natural gas boilers, by giving greater emphasis to hybrid systems and electrification, imposing stricter rules for new buildings, and promoting the installation of photovoltaic systems, both in the private and public sectors. 

The text of the EPBD, which was created to upgrade the EU’s building stock and improve its energy efficiency, may undergo changes from those recorded before becoming final. During the negotiations, the directive has been subject to several amendments, with an increasing focus on national adaptation of indicators for its implementation, rather than harmonization at the EU level. In any case, in the end, it remained a crucial element of the Green Deal strategy for reducing emissions and improving energy efficiency.

The directive’s objectives

Zero emissions by 2050

First of all, the directive stipulates that all newly constructed private buildings must be zero-emission as of 2030, while new buildings occupied or owned by public authorities must meet this target as of 2028.

As for already existing residential buildings, Member States will have to apply measures to ensure a reduction in the use of average primary energy of at least 16 percent by 2030 compared to 2020, and at least 20-22 percent by 2035. Member States are also required to renovate 16 percent of the worst-performing nonresidential buildings by 2030, and 26 percent by 2033 to meet the national minimum energy performance requirements set for the sector.

By 2050, the residential stock must be zero-emission. Countries have full decision-making power over the selection of buildings to focus on, but they must ensure that at least 55 percent of the reduction in average primary energy consumption is achieved through the renovation of the worst-performing buildings.

Installation of solar panels on public buildings

Another goal of the EPBD is to be able to fully and efficiently exploit the potential of photovoltaic and solar thermal systems. The directive, in fact, devotes a specific article to the installation of solar energy in both newly constructed buildings and existing ones that are undergoing renovation.

Member States will have to ensure that new buildings are “solar-ready“. This means that they must be suitable for rooftop photovoltaic or solar thermal installations as solar energy systems will become a standard. Specifically, for existing public and nonresidential buildings, solar energy will have to be installed gradually, starting in 2027, when technically, economically, and functionally feasible.

The end of fossil fuels: The new hybrids era

On the use of fossil-fueled boilers, the directive also proposes a phased approach by calling on Member States to formulate specific measures to facilitate this transition in the heating and cooling sector. Member States must draw up detailed plans for phasing out the use of fossil fuels in the heating and cooling sector, with the ultimate goal of eliminating boilers powered by such fuels by 2040. 

This is the reason behind the ban on subsidies for the installation of stand-alone boilers that run on fossil fuels starting from 2025. Yet, the directive excludes systems and boilers certified to run on renewable fuels such as hydrogen and biomethane from the ban: this could represent an opportunity for eligible buildings that may obtain a subsidy for the installation of such systems.  

Indeed, hybrid appliances will be central to the new rebate system, as will the electrification of heaters and the use of heat pumps, which are key to enabling the use of renewable energy in new zero-emission buildings.

Exceptions

According to the directive, there are some exceptions. The new rules will not apply to agricultural buildings and historic ones. In addition, Member States may exclude from renovations other buildings that are protected due to their special architectural or historical value, buildings that are considered temporary, places of worship, stand-alone properties of less than 50 square meters, and residential buildings used for less than four months per year, or consuming less than 25% of the projected annual one.

Despite the method by which these buildings will be identified is not entirely clear yet, what is clear is that the aim is to focus on buildings with high energy consumption and most frequent use.

Member States’ implementation of the directive 

At the operational level, Member States have full discretional power in defining not only the possible exemptions from the rule but also all the measures and incentives necessary to achieve the targets. Member States will be able to adjust the targets according to the actual availability of skilled labor and the technical and economic feasibility of the renovation work. Each country will have to draw up a national renovation plan, which must be realistic and include measures to facilitate access to financing, a system of incentives for those who undertake significant renovations, subsidies for vulnerable households, and even the establishment of free information points on building energy efficiency.

The directive currently does not foresee any particular sanction for those who do not adapt their buildings to the new standards within the set timeframe, and there are no restrictions on the sale or rental of buildings for those who do not have the EU’s ‘green sticker’. It is therefore left to the discretion of national governments to decide what sanctions to apply, in addition to the automatic loss of value of non-compliant properties.

A focus on the Czech Republic

The Czech Republic uses the following energy sources: 35.5% coal, 25% oil, 17% gas, 16% nuclear energy, 6% renewables. Therefore, approximately 78% of the country’s energy comes from fossil fuels. These initial indexes are important because they make evident how far this country still has to go to reach the goal of making the European Union the first continent with zero greenhouse gas emissions by 2050. The Czech Republic generates 3.5 % of EU-wide GHG emissions and has reduced emissions at a slower rate than the average of other EU countries since 2005. In fact, although GHG emissions in the Czech Republic have been decreasing since 1990, the country still ranks third in the EU in per capita emissions. 

Although over the past 30 years, following the dismantling of the Soviet planned economy, the Czech Republic has undergone a major economic transformation by reducing greenhouse gas emissions, these have subsequently decreased more slowly. In fact, the environmental momentum of the 1990s in the Czech-Slovak area has waned in today’s Czech Republic, so much so that it is one of the most carbon-intensive countries within the European Union. Here, buildings account for 10 % of the country’s total greenhouse gas emissions. The government has initiated various measures to encourage the insulation of buildings, reduce heating, and replace outdated polluting technologies with newer low-emission ones.

The most efficient way to reduce emissions from heating houses is to reduce energy demand by insulating house walls, installing intelligent heat control systems, and changing bad habits. To reach the goal of zero greenhouse gas emissions by 2050 described in the Green Deal and reap its full benefits, the Czech Republic should accelerate and improve all the measures implemented.

Regarding the reduction of GHG emissions, the Czech Republic aims to reduce them by 30% by 2030. The main measures taken to achieve these goals include the promotion of electric mobility and sustainable transport, and the provision of incentives to renovate buildings. In addition, the NECP already includes measures to replace coal-fired boilers. It also already undertakes awareness-raising campaigns on energy efficiency in houses and new household technologies to reduce pollution and energy waste. To conclude, the decarbonization process also includes increased use of renewable resources.

Sources: https://www.ilsole24ore.com/, https://www.idealista.it/, https://ediltecnico.it/, https://www.rinnovabili.it/, https://www.greeneuropeanjournal.eu/