The European Parliament adopts the Energy Performance of Buildings Directive

On Tuesday, 12 March 2024, the European Parliament adopted the text for the Energy Performance of Buildings Directive (EPBD).

Amongst other things, the revised EPBD contains measures to improve both the strategic planning of renovations and the tools to ensure such renovations happen, such as national building renovation plans that set out the national strategy to decarbonise the building stock and ways to address remaining barriers, including those related to financing.

The adopted text also includes concrete measures which contribute to the goals envisaged in the European Green Deal. We’ve highlighted some of them below.

Minimum Energy Performance Standards (MEPS) and Trajectories for Progressive Renovation

By 24 months from the date of entry into force of the EPBD, each Member State shall establish a national trajectory for the progressive renovation of the residential building stock in line with the national roadmap and the 2030, 2040 and 2050 targets contained in the Member State’s national building renovation plan and with the aim of transforming the national building stock into a zero-emission building stock by 2050.

The targets of the average primary energy use in kWh/(m2 .y) of the entire residential building stock are as follows:

  • By 2030: decrease by at least 16% compared to 2020;
  • By 2035: decrease by at least 20-22% compared to 2020;
  • By 2040: average primary energy use equivalent to, or lower than the nationally determined value derived from a progressive decrease in the average primary energy use from 2030 to 2050, in line with the transformation of the residential building stock into a zero-emission building stock.

Financial Incentives, Skills and Market Barriers

Member States shall provide appropriate financing, support measures and other instruments able to address market barriers in order to deliver the necessary investments identified in their national building renovation plan to transform their building stock into zero-emission buildings by 2050.

Green mortgages and green loans can significantly contribute to transforming the economy and reducing carbon emissions.

The ENGAGE Templates for Home Renovations

Building block I of the ENGAGE Templates includes the data requirements allowing financial institutions to check the alignment of their home renovation loans with the EU Taxonomy.

According to the Climate Delegated Act, renovation activities can contribute substantially to Climate Change Mitigation if they achieve a certain level of energy savings or emission reductions.

In line with the objectives of the EPBD, the ENGAGE for ESG initiative aims to increase the lending volumes of European financial institutions for home renovations through the ENGAGE Templates and Portal, by facilitating the adequate assessment and management of financial institutions’ climate-related risks.

The ENGAGE Consortium will conduct a series of webinars from March to June 2024, which will explore the nuances of the ENGAGE Templates and how they will help lending institutions identify the relevant climate-related data to align their mortgages and home renovation loans with the EU Taxonomy.

Please click on one of the links below to register or hit the button below to register for the entire series at once.