Revised EC buildings directive to reduce wasteful energy subsidies: Timmermans

Proposed revisions to the EU's energy performance in buildings directive will help end the wasteful cycle of subsidizing energy consumption, Vice-President of the European Commission Frans Timmermans said Dec. 15 at the launch of EC proposals on gas, hydrogen, methane and buildings.

Buildings account for 40% of energy consumed and 36% of energy-related direct and indirect greenhouse gas emissions in the EU. Heating, cooling and domestic hot water, meanwhile, account for 80% of the energy EU households consume.

"Change in the building sector has been too slow and yet the urgency to act on renovation is enormous," Timmermans said.

Stronger performance standards would drive renovation, reduce energy poverty "and end the cycle of subsidizing energy consumption, which throws a lot of money at a problem without actually solving it."

Millions of Europeans living in badly-insulated homes with out-dated energy systems could not afford their energy bills, with current energy prices having "a disproportionate impact on vulnerable households", he said.

European natural gas spot prices have risen over five times since the start of the year to be assessed at Eur128.33/MWh ($144.5/MWh) by S&P Global Platts Dec. 14 (Dutch TTF day-ahead).

A building in the lowest energy performance class G consumed ten times more energy than those in the most efficient class A, Timmermans said.

"Renovation passports will keep track of improvements under the revised text," he said.

Member states would have to introduce renovation passports based on a common framework to be developed by the EC by the end of 2024, according to the revised text.

Meanwhile energy performance certificates would be required for all buildings and apartments on sale, and new minimum standards would apply to all buildings in the worst performance band (EPC class G).

Around 15% of all EU buildings are in this band.

Class G buildings must be "renovated and improved to at least energy performance class F at the latest by 2027 and to at least energy performance class E at the latest by 2030, and the worst-performing residential buildings to at least class F by 2030 and to at least class E by 2033", according to the revised text.

"EU renovation pays for itself – it leads to cheaper buildings and cleaner air. This is about overcoming the initial investment hurdle. We have EU funding available and other upcoming measures, including new State Aid guidelines, will help Member States provide more support," Timmermans said.

The Recovery and Resilience Facility (RRF) was already triggering significant investments in building renovation. This would continue to 2025-2026, paving the way for improvements under the revised directive, the EC said.

Further, the proposed EU Emissions Trading System's Social Climate Fund would mobilize Eur72.2 billion for 2025-2032 to support households, notably those living in worst performing buildings, it said.