Changes from plenary report to adopted text

RemovedSHORT JUSTIFICATION

RemovedBuildings are responsible for 40% of total energy consumption and respective share of overall household spending and 36% of energy-related Greenhouse Gas emissions in the EU. Therefore, the building stock is of vital importance to deliver on net neutrality in 2050. Besides achieving our international commitments, a more energy-efficient building stock leads to improved energy security and reduced imports of energy to the EU, lower energy bills for consumers, healthier living conditions as well as increased growth, avant-garde technologies and jobs made in Europe.

RemovedSeveral aspects are currently hindering the full energy savings potential from being untapped:

RemovedThe complex interplay between EU legislation, national building codes, behavioural practices, economic and financial barriers and the diverging ownership structure of the building stock in the Member States (split-incentives) leave the deep renovation - which reduces energy consumption by at least 60% - at a rate of 0.2% of the building stock per year.

RemovedAffordability - Pay-as-you-Save

RemovedRenovation is key for reducing the energy consumption of buildings, for bringing down emissions and for reducing rising energy bills. According to the Renovation Wave Communication 275 billion Euros per year of additional investments are needed to meet the building renovation contribution to the 2030 emission reduction target of 55% Greenhouse Gas Emissions in comparison to 1990. These costs might be borne by every day European citizens: renters - young and elderly alike - or single-family households. The Rapporteur is convinced that the transformation of the EU building stock will only succeed with a large support of EU citizens. To make renovations more attractive he proposes a novel financial support instruments - the so-called “Pay-as-you-Save”, guaranteeing that the repayment bills on the loan never exceed energy savings. The implementation by Member States is a prerequisite for the renovation obligation of existing one-family buildings. He adds economical safeguards in regards to the requirements for deep renovation to zero emission buildings as of 2030: These renovations should transform a building to a zero-emission building or the best results that a renovation costing up to 50% of the value of the respective building could provide for. For the rapporteur it is clear that vulnerable households and low-income owners should be given the clear priority when it comes to financial support and technical assistance. As these groups tend to live in worst-performing buildings, the Rapporteur changes the definition of class G (worst performing buildings) - from “the last 15%” to "minimum last 15%".

RemovedHolistic tailor-made local approach

RemovedClimatic difference, local conditions and diverging building stocks necessitate for a holistic tailor-made approach - at local level instead of one-size-fits-all approach -. The Rapporteur thus introduces the consideration of such factors as well as the possibility for a different approach in regards to historic buildings and the prioritizing of renovations of public buildings such as schools and hospital. He strengthens the role of the one-stop-shops to support renovations of multi-apartment buildings and privately rented homes. Lastly, he takes due account of Member Sates’ different renewable mix in order to promote all renewables - including the ones from the grid. . While emphasizing a local implementation, the rapporteur sees the necessity for the Member States to provide an adequate framework to incentivize renovations: For him, it is vital to extent the national renovation strategies to include corrections measures in case of underachievement and sufficient financial support.

RemovedIndoor Air Quality

RemovedToday, people spend a considerable time indoors. The pandemic has intensified the concept of working-and-living under the same roof. According to estimates, tens of millions of Europeans suffer from bad indoor air quality. This can have several reasons such as mould or dampness. Construction and maintenance of buildings can thus have huge effects on public health and the well-being of the whole population. The rapporteur thus proposes a holistic definition of indoor air quality.

RemovedAMENDMENTS

RemovedThe Committee on the Environment, Public Health and Food Safety calls on the Committee on the Industry, Research and Energy, as the committee responsible, to take into account the following amendments:

RemovedRecital 2 a (new): (2a) Climate change is a challenge that transcends borders and requires immediate and ambitious action. The transition to a climate-neutral economy by 2050 represents a great opportunity as well as a challenge for the Union, its Member States, citizens and business from every sector. To this aim, cohesion policy is a crucial tool in delivering a fair transition to a climate-neutral economy by leaving no one behind.

RemovedRecital 3: (3) As announced in the Green Deal, the Commission presented its Renovation Wave strategy on 14 October 202030 . The strategy contains an action plan with concrete regulatory, financing and enabling measures, with the objective to at least double the annual energy renovation rate of buildings by 2030 and to foster deep renovations by more than 35 million building and the creation up to 160 000 jobs in the construction sector, making renovation affordable for all households, including those with a limited ability to cover upfront costs. The revision of the Energy Performance of Buildings Directive is necessary as one of the vehicles to deliver on the Renovation Wave. It will also contribute to delivering on the European mission on climate-neutral, green and smart cities, and should follow the pathway drawn by the New European Bauhaus as a previous phase of the Building Renovation Wave. With the New European Bauhaus, three core pillars should be respected as a holistic approach for achieving a better energy performance of buildings and a decarbonised building stock by 2050 at the latest: a) sustainability, i.e. climate goals, circular economy, zero pollution, greening and biodiversity; b) aesthetics, i.e. quality of experience and style beyond functionality; c) inclusion, i.e. valuing diversity and social progress, secure accessibility and affordability for all; the New European Bauhaus movement will set the basis for new ways of thinking that are clear and inclusive, generatin…

RemovedRecital 4: (4) Regulation (EU) 2021/1119 of the European Parliament and of the Council31 , the ‘European Climate Law’, enshrines the target of economy-wide climate neutrality by 2050 at the latest and of achieving negative emissions thereafter in legislation and establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % below 1990 levels by 2030.

RemovedRecital 5: (5) The “Fit for 55” legislative package announced in the European Commission 2021 Work Programme aims to implement those objectives. It covers a range of policy areas including energy efficiency, renewable energy, land use, land change and forestry, energy taxation, effort sharing, emissions trading and alternative fuels infrastructure. The revision of Directive 2010/31/EU is an integral part of that package. As the energy efficiency first principle is at the core of a more circular economy system, the Commission should pay greater attention to the building sector which accounts for more than 40 % of final energy consumption in the Union, not to mention that 75 % of Union buildings are still energy-inefficient. By better integrating circularity in the building sector, the infrastructures and technical capabilities of a building in an overall holistic approach would secure longer life spans as well as lower energy consumption, while setting concrete decarbonisation and depollution pathways for this sector. The revision of Directive 2003/87/EC (EU-ETS) to expand carbon emissions trading to road transport and buildings, with the view of aiming for a carbon price signal for the whole economy, has the potential to replace costly and ineffective regulatory requirements for energy efficiency in buildings in the long term.

RemovedRecital 5 a (new): (5a) The dilemma between affordable housing and climate protection requires technological neutrality and the innovative power of business and science. The price signal of carbon emission trading unleashes competition and guides action so that emission reduction takes place where it is most cost-effective, thus reducing the overall cost of the climate transition for the Union and its citizens. Under the European Green Deal, the Commission therefore proposed revising Directive 2003/87/EC (EU-ETS) to expand carbon emissions trading to road transport and buildings, with the view of aiming for a carbon price signal for the whole economy. This inclusion of buildings in emissions trading has the potential to replace costly and ineffective regulatory requirements for energy efficiency in buildings in the long term.

RemovedThe EU Emission Trading System is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively.

RemovedRecital 5 b (new): (5b) The REPower EU Plan, launched by the Commission on 18 May 2022 to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition, has energy efficiency of buildings as well as building-integrated renewable energy, at its core. In its communication of 18 May 2022 entitled “REPowerEU Plan”, the Commission invited the European Parliament and Council to enable additional savings and energy efficiency gains in buildings through the Energy Performance of Buildings Directive.

RemovedNecessary to reflect latest developments.

RemovedRecital 6: (6) Buildings account for 40 % of final energy consumption in the Union and respective share of overall household spending and 36% of its energy-related greenhouse gas emissions. Therefore, reduction of energy consumption and household energy spending, including the use of energy from renewable sources in the buildings sector, constitute important measures needed to reduce the Union’s greenhouse gas emissions and the extent of energy poverty. Reduced energy consumption coupled with an increased use of energy from renewable sources also have an important part to play in reducing the Union’s energy dependency, promoting security of energy supplies, in particular the ambitions set out in REPowerEU, cost efficiency of heating and cooling of buildings and technological developments and in creating opportunities for employment and regional development, in particular in islands and rural areas.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text. The "energy efficiency first" principle should not be an end in itself. The reduction of energy consumption can be a possible instrument to achieve the EU climate targets. However, it is not necessarily the most cost-effective and can lead to considerable inefficiencies. With the Emission Trading System, the EU already has a cost-effective instrument to decarbonise.

RemovedEnergy poverty and the high costs of renovations especially for vulnerable groups are important issue that should be consistently addresses throughout this Directive.

RemovedRecital 6 a (new): (6a) The European housing stock is very diverse in terms of age, size, use, insulation level, heating sources, demand and access to energy. Several factors, such as the broad variety of technical issues, the high costs entailed and the number of stakeholders involved contribute to making the decarbonisation of buildings a complex and sensitive topic. A one-size-fits-all approach to decarbonising buildings would fail to meet consumers' needs and to address decarbonisation concerns. A more tailored strategy that takes into account both local and system-level factors is needed.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text. The flexibility in the array of measures proposed in this recast should be reflected in the recital accordingly.

RemovedRecital 6 b (new): (6b) Energy efficiency of the building stock and renovation of buildings play an enormous social, economic and environmental role and has a significant positive impact on national and Union-level efforts to reduce energy dependency and thus promote national security. Investment in energy efficiency should therefore be regarded as high priority at both private and public level.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text.

RemovedRecital 6 c (new): (6c) In order to ensure that all citizens benefit from improved energy performance of buildings, and associated living quality, environmental, economic and health benefits, a proper regulatory and financial framework should be put in place to support renovations for low and medium-income households and households suffering from energy poverty, who often live in the worst-performing buildings in both urban and rural areas.

RemovedNecessary for the internal logic of the text.

RemovedRecital 6 d (new): (6d) It should be taken into account, however, that the social and economic effect of building renovation and increasing of energy performance standards depend on the incentives and investment capabilities of low-income households, who suffer from energy poverty and in general live in the least-performing buildings in both urban and rural areas. Furthermore, the number of buildings with poor energy performance is much higher than the number of those with better standards, thus contributing far more for increased energy consumption and additional greenhouse gas emissions.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text.

RemovedRecital 6 e (new): (6e) The introduction of minimum energy performance standards, accompanied with social and financial safeguards, will improve the quality of life of the most vulnerable and poorest citizens.

RemovedNecessary for the internal logic of the text.

RemovedRecital 6 f (new): (6f) It is essential, therefore, that the public effort is directed towards the increase of the energy efficiency and energy performance of least-performing buildings, in which the lower two deciles of the population of each Member States lives.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text.

RemovedRecital 7: (7) Buildings are responsible for greenhouse gas emissions before, during and after their operational lifetime. The 2050 vision for a decarbonised building stock goes beyond the current focus on operational greenhouse gas emissions. The whole life-cycle emissions of buildings should therefore progressively be reduced, with targets to be set by the Commission on the basis of a common and harmonised methodology. Buildings are a significant material bank, being repositories for resources over many decades, and the design options largely influence the whole life-cycle emissions both for new buildings and renovations. The whole life-cycle performance of buildings should be taken into account not only in new construction, but also in renovations through the inclusion of policies and reduction targets of whole life-cycle greenhouse gas emissions in Member States’ building renovation plans.

RemovedRecital 7 a (new): (7a) Member States should take into account the impact and the whole life-cycle (WLC) of its buildings material-bank within the calculations and indicators of the incidence of energy efficiency in buildings in order to aim for more reuse and recycling as outlined in the principles of the circular economy. In this regard, a link should be made with the leading role of the New European Bauhaus that wants to promote greater circularity in the built environment, by promoting renovation and adaptive re-use over demolition and new built, as appropriate.

RemovedRecital 7 b (new): (7b) The introduction of whole life-cycle requirements will encourage industrial innovation, local value creation and circularity, for instance through the increase in the use of local, traditional natural materials, such as stones and wood as well as secondary raw materials.

RemovedNecessary for the internal logic of the text.

RemovedRecital 7 c (new): (7c) It is crucial to promote and include the use of more sustainable construction materials, in particular bio-and geo-sourced materials, as well as simple passive low-tech and locally tested building techniques to support and promote the use of and research into material technologies that contribute to the ideal insulation and structural support of buildings, thus achieving a reduction in energy consumption that translates into energy efficiency and more resilient buildings. In view of the climate crisis and the increased probability of summer heat waves, special consideration should be given to heat protection for buildings.

RemovedRecital 7 d (new): (7d) A holistic approach of addressing the energy performance of buildings includes environmental, social and economic benefits and impacts. Renovations in the building sector should be a holistic reform of the whole building structure such as building envelopes (roof and facade), shading and ventilation control. It would lead to lower energy demand, especially in buildings constructed since World War II, thus taking into account in a more efficient way the population at risk of exclusion, avoiding a possible imposition of more expensive housing prices and the consequent greenhouse gas emission impact by increasing the use of private transport.

RemovedRecital 7 e (new): (7e) High-quality built environment is the result of the work of skilled professionals in the construction sector and creative and cultural industries that can only be the outcome of quality processes, in particular public procurement procedures.

RemovedRecital 8: (8) Minimizing the whole life-cycle greenhouse gas emissions of buildings requires resource efficiency, sufficiency, and circularity. This can also be combined with turning parts of the building stock into a temporary carbon sink by adding recycled and nature-based solution elements such as wood materials, greens roofs and facades and solutions that are inspired and supported by nature, which are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more diversity, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systemic interventions by respecting as well biodiversity.

RemovedRecital 9: (9) The global warming potential over the whole life-cycle indicates the building’s overall contribution to emissions that lead to climate change. It brings together greenhouse gas emissions embodied in construction products with direct and indirect emissions from the use and deconstruction stage. A requirement to calculate the life-cycle global warming potential of new buildings therefore constitutes a first step towards increased consideration of the whole life-cycle performance of buildings and a circular economy. Deconstruction stage recycling capability of materials should therefore be also accounted for.

RemovedRecital 10: (10) Buildings are responsible for about half of primary fine particulate matter (PM2.5) emissions in the EU that cause premature death and illness. Improving energy performance and the use of adequate nature-based and healthier constructions materials of buildings can and should reduce pollutant emissions at the same time, in line with Directive (EU) 2016/2284 of the European Parliament and the Council33.

RemovedRecital 10 a (new): (10a) Management of energy demand is an important tool enabling the Union to influence the global energy market and hence the security of energy supply in the medium and long term.

RemovedReintroduction of recital removed by the Commission

RemovedRecital 10 b (new): (10b) The promotion of deep and efficient research in new material technologies may help with this purpose.

RemovedRecital 11: (11) Measures to improve further the energy performance of buildings should take into account climatic conditions, including adaptation to climate change, and local conditions, as well as indoor climate, indoor environmental quality, sufficiency and circularity and cost-effectiveness. Those measures should go hand in hand with other requirements concerning buildings such as accessibility, fire, heating and electrical installation safety and seismic safety and the intended use of the building. Moreover, they should ensure that the situation of vulnerable and low-income households, people affected by energy poverty and people living in social housing is improved.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text.

RemovedRecital 12: (12) The energy performance of buildings should be calculated on the basis of a methodology, which may be differentiated at national and regional level. That includes, in addition to thermal characteristics, other factors that play an increasingly important role such as heating and air-conditioning installations, application of energy from renewable sources, building automation and control systems, smart solutions, heat recovery from wastewater, ventilation and cooling passive heating and cooling elements, shading, indoor air-quality, adequate natural light and design of the building. The methodology for calculating energy performance should be based not only on the season in which heating or air-conditioning is required, but should cover the annual energy performance of a building. That methodology should take into account existing European standards. The methodology should ensure the representation of actual operating conditions and enable the use of metered energy to verify correctness and for comparability, and the methodology should be based on hourly or sub-hourly time-steps. In order to encourage the use of renewable energy on-site including roof solar panels in line with the European Solar Rooftops Initiative, and in addition to the common general framework, Member States should take the necessary measures so that the benefits of maximising the use of renewable energy on-site, including for other-uses (such as electric vehicle charging points), are recognised and acco…

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text.

RemovedRecital 14: (14) Two-thirds of the energy used for heating and cooling of buildings still comes from fossil fuels, which are further more characterized by price volatility and insecurity of supply. This is especially valid for buildings with poor energy performance, in which low-incomes households live, thus increasing social inequalities and the risk of social exclusion, especially in times of high energy prices and increasing cost of living. In order to decarbonise the building sector, it is of particular importance to phase out fossil fuel in heating and cooling, to set clear and effective strategies for this phasing-out process, to define the best techniques for it. Therefore, Member States should indicate their national policies and measures to phase out fossil fuels in heating and cooling in their building renovation plans, and no financial incentives should be given for the installation of fossil fuel boilers as of 2024, with the exception of those selected for investment, before 2024, under the European Regional Development Fund and on the Cohesion Fund and of those that are able to run on renewable energy sources. A clear legal basis for the ban of heat generators based on their greenhouse gas emissions or the type of fuel used should support national phase-out policies and measures.

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text. The rapid decarbonisation of heating and cooling requires a technological neutral approach. Boilers that are able to run on renewable energy sources constitute a cost-efficient way to decarbonise and should, thus, remain eligible for financial incentives.

RemovedRecital 14 a (new): (14a) Efficient use of waste heat from domestic hot water systems represents significant energy saving opportunity. Hot water preparation is the main source of energy consumption for new buildings and normally this heat is wasted and not reused. Knowing that most of the hot water consumed comes from showers, harvesting heat from shower drains in buildings could be a simple and cost-effective way to save final energy consumption and related CO2 and methane emissions of domestic hot water production.

RemovedRecital 17: (17) The Commission should lay down a comparative methodology framework for calculating cost-optimal levels of minimum energy performance requirements. A review of this framework should enable the calculation of both energy and emission performance and should take into account environmental, safety and health externalities, as well as the possibility of the ETS extension and carbon prices, if applicable. The New European Bauhaus has the potential to reshape the way policies are conceived to define the environment of the future by meeting the need for spaces adapted to new ways of life. Member States should use that framework to compare the results with the minimum energy performance requirements which they have adopted. Should significant discrepancies, i.e. exceeding 15 %, exist between the calculated cost-optimal levels of minimum energy performance requirements and the minimum energy performance requirements in force, Member States should justify the difference or plan appropriate steps to reduce the discrepancy. The estimated economic lifecycle of a building or building element should be determined by Member States, taking into account current practices and experience in defining typical economic lifecycles. The results of that comparison and the data used to reach those results should be regularly reported to the Commission. Those reports should enable the Commission to assess and report on the progress of Member States in reaching cost-optimal levels of minimum energy p…

RemovedAmendment necessary for pressing reasons relating to the internal logic of the text. NEB should be taken into account when defining regulatory frameworks which affect to building sector, as it can provide information in areas that are outside the scope of purely energy regulation.

RemovedRecital 19: (19) The enhanced climate and energy ambition of the Union requires a new vision for buildings: the zero-emission building, the very low energy demand of which is fully covered by energy from renewable sources where technically feasible. All new buildings, prioritizing schools, kindergartens and hospitals should be zero-emission buildings, and all existing buildings should be transformed into zero-emission buildings by 2050.

RemovedRecital 19 a (new): (19a) As up to 90 % of the 2050 built environment already exists, more ambitious efforts are needed to accelerate the rate of renovating and decarbonising the existing building stock. The incentives and standards set today will ultimately define whether the Union will reach its long-term climate and energy goals.

RemovedRecital 19 b (new): (19b) Affordability and social fairness is key to achieve a green and just transition for a decarbonised building stock by 2050 at the latest. Creditworthiness of consumers needs to be assessed in line with current Union legislation. It is crucial that the scope of financial instruments fits the needs of the potential beneficiaries: lowest income and most vulnerable households should benefit from 100 % subsidised retrofit works.