Revision of the EPBD – facts and myths
Few legal proposals generate such discussion and emotions as the Energy Performance of Buildings Directive. What you need to know about it and what changes are worth paying attention to are analysed by mec. Małgorzata Banasik and mec. Bartłomiej Kielasiński of BWW law firm.
The EU’s legislative mills are grinding slowly but steadily. Almost three years after the Commission published the Fit for 55 package, the new Energy Performance of Buildings Directive (EPBD) has been enacted as part of this package, as well as the REPowerEU plan, adopted in response to Russia’s aggression against Ukraine and the energy crisis.
The new Energy Performance of Buildings Directive 2024/1275 of 24 April 2024 (EPBD – energy performance of buildings directive) was published in the EU Official Journal on 8 May this year and came into force 20 days later. It is set to replace the previous directive (2010/31/EU) as of 30 May 2026. Member States have until 29 May 2026 to fully transpose the new EPBD.
It aims to retrofit public and private buildings, residential and non-residential, to improve their energy performance and reduce greenhouse gas emissions in order to achieve a zero-carbon building stock by 2050.
What is changing?
The EPBD introduces a number of new or significantly changes existing solutions in order to achieve the ambitious goals set.
Carbon-free building requirement and minimum energy performance standards
This is certainly the most commented on element of the new directive. The assumption is that all buildings should be zero-emission buildings by 2050. What specific measures have been adopted?
– from 1 January 2028, all new buildings owned by public bodies will have to be zero-emission,
– from 1 January 2030, the zero-emission requirement will cover all new buildings.
A zero-emission building is a building with very high energy performance requiring zero or very little energy, producing no on-site carbon dioxide emissions from fossil fuels and producing zero or very small amounts of operational greenhouse gas emissions. This means that in zero-carbon buildings, all energy used should come from renewable or zero-carbon sources.
For non-residential buildings, Member States should set minimum energy performance standards and so-called maximum energy performance thresholds at two levels (referred to as the ‘16% threshold’ and the ‘26% threshold’) and ensure that all non-residential buildings do not exceed these thresholds from 2030 (16% threshold) and 2033 (26% threshold).
As for residential buildings, on the other hand, the EPBD stipulates that minimum energy performance standards will not apply to them, but Member States will be required to reduce the primary energy consumption of all residential buildings
by 2030 by at least 16% compared to 2020,
by 2035 by at least 20-22% compared to 2020,
by 2040, and every 5 years thereafter, equal to or less than the value derived from the average primary energy consumption between 2030 and 2050 (set at national level).
For residential buildings, Member States will be free to choose the tools by which they achieve the required improvements in the building stock, such as minimum energy performance standards, technical assistance and financial support measures.
In addition, for existing buildings, it is foreseen that when a major renovation of a building is carried out, its energy performance will be upgraded to reach minimum energy performance standards – as far as technically, functionally and economically feasible.
National plan for the renovation of buildings
Each Member State should establish a national building renovation plan to replace the long-term renovation strategy provided for in the previous Directive 2010/31. This plan will include, inter alia, an overview of the national building stock and strategies for its renovation with a view to decarbonisation.
A first draft of the national building renovation plan should be submitted to the EC by the end of 2025. Subsequent plans should be prepared every 5 years and submitted as part of an integrated national energy and climate plan.
Energy performance certificates and classes for buildings
Buildings will be categorised into energy classes on a scale from A (zero carbon) to G (so-called energy vampires), with an additional category A+. The class of the building will be specified in the energy performance certificate. A new requirement is that on 29 May 2026, energy performance certificates must comply with the model set out in the annex to the directive.
Heat sources
The EPBD does not make the replacement of heat sources categorically and obligatorily mandatory. It does, however, provide that from 1 January 2025, Member States shall not provide any financial incentives for the installation of individual fossil-fuelled boilers, with the exception of those selected for investment before 2025.
At the same time, Member States should aim to replace individual fossil-fuel boilers in existing buildings, in line with national plans to phase out fossil-fuel boilers. In addition, Member States may establish new incentives and funding to encourage a shift away from fossil fuel heating and cooling systems.
Solar energy in buildings
An interesting solution is the requirement that all new buildings are designed to optimise their solar energy potential, determined by the solar irradiance at the site, so that solar technologies can be installed cost-effectively at a later date. In addition, Member States should ensure that PV installations are installed on public and non-residential buildings in defined stages and on all new residential buildings by 31 December 2029.
Funding and assistance
The changes envisaged will be costly. Therefore, the EPBD provides for several sources of financing for building renovation. Firstly, Member States should develop financial support schemes for building renovation from national and EU funds. Secondly, credit products for energy efficiency, such as green mortgages and eco-credits, are to be promoted.
Housing cooperatives in particular require systemic support in this area. Therefore, the efforts of the Ministry of Development and Technology and the Funds and Regional Policy for funds for this purpose are worth appreciating. The Social Climate Fund, which is being worked on, is also a good idea.
Each EU country must set up a network of advice points (so-called One Stop Shop). Eco-advisers are to assist all interested parties free of charge and comprehensively in taking advantage of available solutions and sources of support. Their role is also to assist in writing, submitting and settling the application for a grant to replace the heat source.
Next steps
The proposed changes undoubtedly require deep reforms at national level. The government is already preparing for this. A number of pieces of legislation need to be amended, including the Energy Performance of Buildings Act, the Building Act and the implementing acts. In addition, government documents also need to be updated or prepared: the National Plan for the Renovation of Buildings, the National Plan for the Introduction of the Global Warming Factor in the Life Cycle of Buildings and the National Plan of Principles for the Design of Support Systems.
Mythical changes
After the changes that are actually being introduced, it is also important to point out those that are not provided for in the EPBD, but are being reported in the public discussion.
Firstly, the directive does not provide for sanctions for failing to carry out thermal modernisation or using heating technology based on fossil fuels. It is incumbent on Poland, as a Member State, to demonstrate the level of energy saved in the various building categories. However, negligence in this regard will translate into energy bills for end consumers.
Secondly, there will be no repossession of properties for failing to meet standards.
Thirdly, not all buildings are affected by the changes introduced by the directive and its implementation. Amongst others, historic buildings, agricultural buildings, houses up to 50 sq m in size, as well as ‘seasonal buildings’, i.e. holiday cottages occupied for less than four months a year, will be exempted. In addition, industrial buildings, workshops will be exempted from the application of the new regulations. At the same time, more lenient requirements are provided for residential buildings in general than for non-residential and public buildings.