EU agrees on new energy standards – but without obligation to renovate

As of: December 8th, 2023 12:54 p.m

The EU has agreed on stricter energy standards in the building sector. All buildings in the EU should be climate neutral by 2050. However, there should not be an originally planned obligation for homeowners to renovate.

Negotiators from the European Parliament and the EU states have agreed on stricter requirements for the energy efficiency of buildings in the fight against climate change.

According to the EU Parliament, the reform of the so-called Buildings Directive stipulates that all new buildings should be climate neutral from 2030. For publicly owned buildings, this will apply from 2028. The entire building stock should also be climate neutral by 2050.

No Obligation to renovate for homeowners

There should therefore be no obligation for homeowners to renovate, as was originally envisaged in the EU Commission’s proposal. The buildings with the worst energy efficiency would therefore have had to be renovated.

The federal government had been in favor of this for a long time. However, in the course of the debate about the Building Energy Act, she moved away from this. The project was controversially discussed, among other things, because of possible high costs for homeowners. The owners’ association Haus & Grund, for example, had warned of a dramatic loss in value, especially in older buildings. The EU Commission, however, had emphasized that renovations pay off in the long term, for example through lower energy consumption.

Focus on the energy-worst buildings

The agreement now only provides for the general requirement to reduce average energy consumption in the building sector by at least 16 percent by 2030 and at least 22 percent by 2035. Although the focus should be on the buildings that have been worst renovated to date, achieving the target is largely the responsibility of the respective member states.

Only for non-residential buildings is the requirement that the 16 percent of the worst-renovated properties must be renovated by 2033. There is also an obligation to install solar systems if this makes technical and economic sense. Heating systems that run on fossil fuels should also be replaced by 2040.

From 2025, the installation of gas or oil heating will no longer be financially supported. However, financial incentives for installing a hybrid solution are possible if the gas boiler is operated together with a solar thermal system or a heat pump.

“Grandma’s house is safe”

The European Parliament’s rapporteur in charge, Ciarán Cuffe, said wasted energy is wasted money. “We have to help citizens save money and protect them from fluctuating energy prices,” said the Green politician.

CDU social politician Dennis Radtke said after the agreement: “This is reassuring news for millions of owners and tenants in Germany. Grandma’s little house is safe.” His party colleague Markus Pieper said that there were only a few or no European obligations left in the directive.

The owners’ association Haus & Grund was relieved after the agreement and said that the risk of a massive decline in the value of buildings was now off the table. The Federal Association of German Housing and Real Estate Companies also spoke of a “good path”.

The Central Association of German Crafts said that stricter requirements could have hit owners hard.

Environmental associations point out social consequences

Criticism came from nature conservation and environmental associations. Irmela Colaço, building expert at the German Federation for the Environment and Nature Conservation (BUND), said she would have liked stricter requirements for very poorly developed and therefore inefficient buildings, as these fuel the climate crisis and energy poverty.

Similar criticism came from the German Nature Conservation Association (NABU). “People with low incomes often live in poorly renovated buildings and are also struggling with high energy costs,” says NABU President Jörg-Andreas Krüger. Those who live in poorly renovated buildings that use more energy are also hit harder by high energy prices.

A third of the EU’s CO2 emissions come from buildings

The decision is based on a proposal from the EU Commission. She presented this almost two years ago. Buildings are responsible for around 40 percent of energy consumption and around a third of greenhouse gas emissions in the EU.

If houses are better insulated or modern heating systems are used, this can reduce energy requirements. The planned change in the law is part of the “Fit for 55” climate package, which aims to reduce net greenhouse gas emissions by at least 55 percent by 2030 compared to 1990.

Andreas Meyer-Feist, ARD Brussels, tagesschau, December 8th, 2023 8:52 a.m

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