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Revised Energy Performance of Buildings Directive 2024

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What is the Revised Energy Performance of Buildings Directive?

In April of this year, the EU revised and republished its Energy Performance of Buildings Directive1, bringing with it new measures to reach its ambitious energy goals and tackle the ongoing climate crisis. This includes the aim to achieve a fully decarbonised building stock by 2050. Why? Roughly 40% of energy consumed across the whole of the EU is used in buildings, including heating, cooling, and lighting. 85% of buildings in the EU were built before the year 2000, roughly 75% of which report a poor energy performance2. The real estate sector therefore plays a crucial role in achieving the EU’s decarbonisation objectives.

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In order to boost the energy performance of its buildings, the EU has outlined a legal framework that will help to increase the rate of renovation, with an emphasis on the worst-performing buildings. The key point of the revised directive is that it facilitates more targeted financing for investments in the building sector, and contributes to the creation of a stable environment for investment decisions. Other objectives include improved air quality, increased digitalisation of energy systems for buildings and the roll-out of more infrastructure for sustainable mobility.

While this is a pan-EU directive, there are still allowances for the different circumstances of different countries. Taking into account factors such as the existing building stock, geography, and climate, the directive gives governments the opportunity to decide which renovation measures best suit their specific national context.

What will this mean for investors?

Many buildings, even those built after 2000, will require upgrades and improvements to ensure they meet the standards set out in these new regulations. In Germany, for example, the government had already announced in October 2022 that it intended to revise the GEIG to mandate the construction of at least one charging point for non-residential buildings with more than 20 parking spaces by 1 January 2025. The new directive significantly extends this requirement, with a potential transitional period until 2029.​

While the deadlines set out are not necessarily immediate, these changes will necessitate strategic planning and significant investment in sustainable infrastructure to ensure compliance and capitalize on the benefits of enhanced property value and market competitiveness.​

 

1 Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings (recast) (Text with EEA relevance)​

2 Eurostat energy balances and EEA Greenhouse Gas Inventory, 2023.

3 Zane Lee Yrlh88vabwc Unsplash

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