EU Rules

Green houses, directive in final vote What changes for boilers, renovations and solar energy

Last step for the Epbd Directive, about to be approved by the European Parliament

BRUSSELS, BELGIUM - JUL 30, 2014: Row of EU Flags in front of the European Union Commission building in Brussels.

3' min read

3' min read

The European Green Houses directive closes its path. In the Strasbourg plenary on Tuesday, 12 March, the vote that will launch the controversial measure towards entry into force is scheduled. After two years of negotiations and exactly one year after the first green light from the European Parliament, the Energy performance of buildings directive (Epbd) will only have to make one last step, having passed the hurdle of this vote: all that is missing at this point is the formal adoption by the Council, which represents the member states. Let us see, then, what are the main contents of the directive, in its final version (barring any resounding surprises).

Restructuring

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The course of the most relevant passage of the directive, Article 9, has completely changed. If until a few weeks ago the assumption had been to indicate stringent requirements for individual buildings, leaving no room for member states, this passage has been revised, thanks also to the work of the measure's rapporteur, Irishman Ciaran Cuffe (Greens), in the name of greater flexibility.

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Member countries will have to draw up plans to reduce the consumption of their residential building stock. 2020 is considered the year zero and 2050 the year in which a zero-emission building stock will have to be completed. In between, states will have to ensure a gradual improvement of the situation, but thinking on consumption averages and no longer on the efficiency class of individual buildings.

The reduction targets

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Intermediate reduction targets for the Member States' building stock will be 16% by 2030 and 20-22% by 2035. It will be up to the Member States to determine, with their plans, how these targets will be achieved. Above all, the directive sets a constraint: the majority of renovations will have to concern the lowest performing 43% of the building stock. In this way, the targets cannot be achieved by new buildings alone.

Stop fossil fuels by 2040

The other big issue is the abandonment of fossil fuels, starting with natural gas boilers, in homes. The date by which to achieve a complete ban has been moved forward to 2040; the previous deadline was 2035. Not only that. While tax incentives for these appliances will be cancelled as of 2025, it has been explicitly stated that it will be possible to give incentives to hybrid heating systems, such as those combining boilers and heat pumps.

New Building Standards

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The directive will make zero-emission buildings the new standard for new buildings. According to the agreement, all new residential and non-residential buildings will have to have zero 'on-site' emissions of fossil fuels, starting from 1 January 2028 for publicly owned buildings and from 1 January 2030 for all other new buildings, with the possibility of specific exemptions.

The Solar

Member States will also have to ensure that new buildings are 'solar-ready', i.e. suitable for photovoltaic or solar thermal rooftop installations. The installation of solar energy systems will become the norm for new buildings. For existing public and non-residential buildings, solar panels will have to be installed gradually, starting in 2027, where technically, economically and functionally feasible. These provisions will come into force at different times depending on the type and size of the building.

Financing

Article 15 of the draft directive deals with the funding available for the maxi plan for the renovation of European buildings that Brussels aims to initiate through the directive.

The first trend to be emphasised is that it will be the member states that will have to provide the financing, support measures and other tools necessary to support building renovation plans. It is above all their obligations, in fact, that the Epbd speaks of: they will have to make use of national funds and European funds already allocated, starting with the NRP, the Social Climate Fund, and the Cohesion Funds. All these funding lines will have to be distributed steadily in order to reach the goal of zero emissions by 2050.

The Commission's commitments

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The European Commission, for its part, does not allocate any new resources under the directive. It will be a subsequent delegated act, to be approved within twelve months of the entry into force of the Epbd, that will address the issue of financing. With contents that are, however, still to be defined: for now, the text speaks of increasing loans available to those who want to restructure and of activating protections for the most vulnerable families. The details of the numbers will be defined later.

The transposition

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Once the directive has completed its formal adoption, including by the Council, it will be published in the Official Journal of the European Union. It will enter into force after twenty days. At that point, member states will have two years to transpose and comply with the new rules. The Commission will then review the directive by 2028 at the latest.

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