Energy Performance of Buildings Directive (EPBD)

Following the Energy Performance of Buildings Directive (“EPBD”) III, a new amendment to the EPBD was approved by the European Parliament: the proposal to amend Directive 2010/31/EU on the energy performance of buildings dated 15 December 2021, also known as the “EPBD IV”. The final wording of EPBD IV is currently being negotiated by the EU member states. The EPBD IV is expected to enter into force in 2025. Unlike the previous directives and regulations covered in this white paper, the EPBD IV contains less (corporate) reporting requirements, but rather physical requirements for buildings. It is therefore highly relevant to real estate investors and developers, as well as to a tenant or user of real estate.

The reason for this third amendment to the EPBD is the observation that there are still many poorly or moderately insulated buildings in the EU that depend on fossil fuels for heating and cooling. The vast majority of these buildings is expected to still be in this condition in 2050. The European Commission therefore believes it is urgent to increase renovation and achieve low-energy and zero-emission buildings.

Requirements under EPBD IV

The directive focuses primarily on EU member states. Further requirements will be laid down in national legislation (for the Netherlands in the Buildings Decree 2012). This means, it is not entirely clear yet which requirements building owners and users should take into account. The main requirements of the EPBD IV are:

• Each member state must prepare a building renovation plan with the goal that the entire existing building stock is energy efficient and carbon free by 2050.
• New buildings must be “emission-free” as of 2030. An emission-free building, according to the newly introduced definition, is a building with a very high energy performance, for which the very low amount of energy still needed is fully covered by energy from renewable sources generated on site or by energy from a renewable energy community or from a district heating and cooling system. New government buildings, both owned and leased, have an exemplary role and must be emission-free as of 2027.
• Minimum energy performance standards will be introduced for existing buildings, especially for the worst-performing buildings. For utility and public institution buildings, the proposal includes a requirement of at least energy label F in 2027 and at least label E in 2030. For houses, this will be label F in 2030 and label E in 2033.
• A (semi) dynamic model for energy labels is introduced, with energy label A corresponding to the emissionfree level for new buildings and energy label G corresponding to the 15% worst-performing buildings in a EU member state’s building stock.
• Finally, the EPBD IV contains provisions for a transparent system regarding the necessary renovation steps of a building (renovation passport), for exchange of (energy) data between tenant and landlord and for a public database in which the data of buildings (such as energy labels) is recorded.

As mentioned before, the final version of the EPBD IV has not been determined yet and therefore target years, percentages and other assumptions may still change. Moreover, the requirements still have to be set in concrete terms in national regulations, such as the Buildings Decree 2012.