The European Energy Performance of Buildings Directive

“The EPBD is a critical piece of EU legislation in the combat against climate change and for RICS Europe its revision is an opportunity not to be missed. RICS encourages the EU to ensure that new buildings and refurbishments will be needed to be both energy and carbon efficient in the revised EPBD, as well as contributing to the uptake of the circular economy in the construction sector.”

-Tina Paillet, Senior Vice President of RICS

The proposal for the recast of the Energy Performance of Buildings Directive (EPBD) was presented by the European Commission, with the primary objective of decarbonising Europe's building stock by 2050. This initiative is of utmost importance to effectively achieve the climate and energy goals set by the European Union for 2030 and 2050.

The decarbonisation of the buildings sector is vital to deliver on the EU’s 2030 and 2050 climate and energy goals. In alignment with the Climate Target Plan 2030, the European Commission has put forward a proposal to reduce net greenhouse gas emissions in the EU by at least 55% by 2030 compared to the levels recorded in 1990. Meeting this ambitious target necessitates significant actions and measures in the buildings sector, hence the importance of the EPBD recast proposal.

Why is the EPBD being reviewed?

Buildings, in Europe, are responsible for approximately 40% of EU energy consumption and 36% of energy-related greenhouse gas emissions.

The building sector is crucial for achieving the EU's energy and environmental goals. At the same time, better and more energy-efficient buildings will improve the quality of citizens' life and alleviate energy poverty while bringing added benefits, such as health and better indoor comfort levels, and green jobs, to the economy and society.

In October 2020, the Commission presented its Renovation wave strategy, as part of the European Green Deal. It contains an action plan with concrete regulatory, financing and enabling measures to boost building renovation. Its objective is to at least double the annual energy renovation rate of buildings by 2030 and to foster deep renovation.

To boost the energy performance of buildings, the EU has established a legislative framework that includes the Energy Performance of Buildings Directive 2010/31/EU and the Energy Efficiency Directive 2012/27/EU. The two directives will promote policies to:

• achieve a highly energy-efficient and decarbonised building stock by 2050.
• create a stable environment for investment decisions.
• enable consumers and businesses to make more informed choices to save energy.

Our engagement

RICS recognises, the role of the EPBD in the pursuit of the ambitious goals set by the European Green Deal, as recognized by the Royal Institution of Chartered Surveyors (RICS). In order to effectively decarbonize the built environment, it is essential to tackle both embodied and operational carbon emissions, while simultaneously addressing resource efficiency, waste management, and circularity. RICS emphasizes the importance of prioritizing the following key aspects in the revision of the EPBD:

1. Minimum Energy Performance Standards (MEPS)
2. Energy Performance Certificates (EPC)
3. Development of a Renovation Passport
4. Whole Life Cycle Carbon Reporting for new and existing buildings

Our engagement

In April 2022, RICS responded to the European Commission's consultation, articulating our perspective on the matter. You can access our detailed feedback on this consultation by visiting the following link: Feedback from: RICS (europa.eu)

Throughout the period from June to September 2022, RICS continued to contribute to the legislative process with the proposal of two amendments. We provided the Commission and the European Parliament with the expertise of our members and insights on the International Property Measurement Standard (IPMS).

IPMS was developed by the International Property Measurement Standards Coalition, a group of 90 professional and not-for-profit organizations, of which RICS is part. To deliver on the ambitions of the EPBD and broader buildings decarbonisation agenda across the EU, what is needed is consistency on metrics within and between markets, and throughout the entire lifecycle of assets. Using IPMS will ensure that a building’s floor space is measured consistently, creating a more transparent marketplace and enabling consistent measurement of energy performance.

Our view is that the inclusion of internationally recognised standards within the scope of the legislation will help supply practical tools to the sector. This approach will empower the industry to effectively address decarbonization and energy performance objectives as set forth by the EU institution. Moreover, it will foster a harmonized approach to implementation across the European Union, ensuring consistency and transparency.

What is next?

In March 2024, the European Parliament voted on its position, putting forth an even more ambitious stance in preparation for negotiations with EU member states. This vote marked an important milestone in the ongoing discussions surrounding the proposed revision of the Energy Performance of Buildings Directive (EPBD).

Currently, the Council and the European Parliament are deliberating on the proposed revision, and these discussions are expected to continue for some time. It is possible that the negotiations will extend until the end of the year, given that certain key measures, such as Minimum Energy Performance Standards (MEPS), Energy Performance Certificates (EPC), and Zero Energy Buildings (ZEB), remain at the centre of debate between the European Parliament and the Member States.

Undoubtedly, the implementation of the new EPBD requirements will pose significant challenges for the construction and real estate sectors throughout Europe. However, these challenges represent a crucial step towards achieving the decarbonization of the building stock, a goal that aligns with the broader sustainability objectives of the European Union.

RICS has proactively initiated collaboration with another stakeholder based in Brussels to gather relevant information and insights to benefit our members in Europe, ensuring that they are well-equipped to navigate the evolving landscape shaped by the EPBD revision.

For more information, please contact vsepe@rics.org.