MEPs adopt the “green homes” directive. Zero-emission buildings from 2030. No more incentives for gas boilers from as early as 2025.
On 12 March 2024 the European Parliament definitively approved the Energy Performance of Buildings Directive (Energy performance of buildings directive – Epbd), commonly known as the "green homes" directive. The directive received the support of 370 MEPs, with a further 199 voting against and 46 abstaining. Among the Italian factions that voted no were Lega, Forza Italia and Fratelli d'Italia, while among the delegations in favour of the directive were the Partito democratico, Movimento 5 stelle, Alleanza verdi e sinistra and Italia viva.
According to the European Commission, buildings are responsible for 40 per cent of energy consumption and 36 per cent of the greenhouse gas emissions of the Union. But what does the directive provide for, and what are the new measures and deadlines introduced? Let us look at them below.
The "green homes" directive outlines an ambitious plan to reduce the energy consumption of buildings over the next 30 years. Member states are called upon to implement a series of measures in order to achieve, by 2050, a building stock with zero emissions. With this in mind, the European Union has set intermediate deadlines. By 2030, member states are required to reduce by 16 per cent, compared to 2020, the energy consumption of their building stock (and by at least 20–22 per cent by 2035). In keeping with the spirit of the directive, each member state defines the means by which it will achieve this objective.
As regards the construction of new buildings, these will have to be zero-emission from 2030. For publicly owned buildings the deadline is set at 2028. But the directive makes clear that achieving the final objective cannot depend solely on the construction of new buildings, even if they are green. It also provides, for example, for the renovation of at least 43 per cent of the least energy-efficient buildings in the existing building stock. Furthermore, under the new directive, member states will have to renovate 16 per cent of non-residential buildings with the worst performance by 2030 and 26 per cent by 2033, introducing minimum energy performance requirements.
During the approval process at European level, the directive underwent several amendments, some of them substantial, such as the one relating to renovations (Article 9), granting greater flexibility to member states. The initial version, in fact, stipulated that all buildings would have to reach energy class E by 2030 and class D by 2033. Now, instead, it will be up to member states to define their own plans for reducing the energy consumption of their residential building stock: 2020 is considered year zero and 2050 the year in which, at the conclusion of the process, a zero-emission building stock will need to have been achieved.
Furthermore, the Epbd confirms the elimination of fossil fuel use in homes, including natural gas boilers. Although the date for the ban has been moved from 2035 to 2040, from 2025 member states will no longer be able to offer tax incentives for the purchase or installation of fossil fuel heating systems. Financial incentives will still be possible for heating systems that use a significant amount of renewable energy, such as those that combine a boiler with a solar thermal system or a heat pump.
But the most important new development concerns the construction of buildings: from 1 January 2028, publicly owned properties will have to guarantee zero on-site emissions from fossil fuels. For privately owned buildings, this obligation will come into force from 1 January 2030. In addition, new buildings constructed in European member states will have to be "solar-ready", meaning they will be fitted out for the installation of photovoltaic or solar thermal systems on their roofs. For existing eligible buildings, the installation of solar panels will have to take place gradually from 2027. Where technically and economically feasible, member states will have to ensure the progressive installation of solar systems in public and non-residential buildings, depending on their size, and in all new residential buildings by 2030.
There are a number of exceptions. The new legislation does not apply to agricultural buildings or to historic ones, and member states may also decide to exclude buildings protected for their particular architectural or historical value, temporary buildings, churches and places of worship.
It is now the task of member states to transpose the directive within two years and implement it making use of available national and European resources. The European Commission estimates that by 2030 275 billion euros per year in investment will be needed for the energy overhaul of the building stock, that is, 152 billion more per year than current resources. In this regard, the European Commission does not envisage the disbursement of new funds, but it will be possible to draw on existing financing such as the Piano nazionale di ripresa e resilienza (Pnrr), the Social Climate Fund and the Cohesion Funds. There is also the possibility of introducing new measures concerning renovation loans targeted at the most vulnerable households.
Once it has cleared the final vote in the European Parliament, the "green homes" directive will complete its legislative process with adoption by the Council as well. Twenty days after its publication in the Official Journal, the text will officially enter into force. Furthermore, by 2028, the European Commission will examine it again for any necessary corrections.