Changes from report parliamentary committee draft to plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a directive of the European Parliament and of the Council on the energy performance of buildings (recast)

(COM(2021)0802 – C90469/2021 – 2021/0426(COD))

Changed(Ordinary legislative procedure:procedure first– reading)recast)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2021)0802),

Changed– having regard to Article 294(2) and Article 194(2) of the CommissionTreaty proposalon the Functioning of the European Union, pursuant to Parliamentwhich andthe Commission submitted the Councilproposal (COM(2022)0222),to Parliament (C90469/2021),

Removed– having regard to Article 294(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90469/2021),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

Changed– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Finnish Parliament asserting that the draft legislative act does not comply with the principle of subsidiarity,

– having regard to the opinion of the European Economic and Social Committee of 23 March 2022,

Changed– having regard to the opinion of the Committee of the Regions of ...,30.6.2022,

Removed– having regard to Rules 59 of its Rules of Procedure,

Added– having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts,

Removed– having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Transport and Tourism,

Added– having regard to the letter of 8 November 2022 sent by the Committee on Legal Affairs to the Committee on Industry, Research and Energy in accordance with Rule 110(3) of its Rules of Procedure,

Changed– having regard to the report ofRules the110 Committeeand on59 Industry,of Researchits andRules Energyof (A90000/2022),Procedure,

Change 1

Removed1. Adopts its position at first reading hereinafter set out;

Added– having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Legal Affairs,

Added– having regard to the report of the Committee on Industry, Research and Energy (A9-0033/2023),

AddedA. whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

Added1. Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 2

RemovedRecital 2: (2) Under the Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC), its Parties have agreed to hold the increase in the global average temperature well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. The Parties to the Glasgow Climate Pact in November 2021 reaffirmed that keeping the increase in the global average temperature to 1,5°C above pre-industrial levels would significantly reduce the risks and impacts of climate change, and undertook to strengthen their 2030 targets by the end of 2022 in order to accelerate climate action in this critical decade and to close the ambition gap with the 1,5°C target. Reaching the objectives of the Paris Agreement is at the core of the Commission Communication on “The European Green Deal” of 11 December 201929 . The Union committed itself to reduce the Union’s economy-wide net greenhouse gas emissions by at least 55 % by 2030 below 1990 levels in the updated nationally determined contribution submitted to the UNFCCC Secretariat on 17 December 2020.

AddedAMENDMENTS BY THE EUROPEAN PARLIAMENT*

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. The revision of the Energy Performance of Buildings Directive is necessary as it is key to delivering the Renovation Wave. It will also contribute to delivering on the New European Bauhaus initiative and the European mission on climate-neutral and smart cities. The New European Bauhaus initiative can offer a new approach to the issues of sustainability and accessibility in buildings. By giving architects, artists, students, engineers and designers under the principles of sustainability, aesthetics, and inclusion, the New European Bauhaus can empower local authorities to develop innovative and cultural solutions in creating a more sustainable built environment. Member States should support New European Bauhaus projects that enrich the cultural and built landscape of regions across Europe and help neighbourhoods and communities achieve the Union’s climate goals.

Addedto the Commission proposal

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 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.

Added---------------------------------------------------------

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. In addition, the communication of the Commission of 18 May 2022 entitled “REPowerEU plan” reviewed key provisions of the Fit for 55” package in light of the updated geopolitical context, requiring a revised political framework, with new legislative proposals and targeted recommendations to update the objectives, in particular by increasing ambition with regard to energy efficiency and savings and enhanced energy sovereignty, while moving away from fossil fuels. That communication also encouraged Member States to consider taxation measures so as to incentivise energy savings and reduce fossil fuels consumption, including tax deductions linked to energy savings.

Added2021/0426(COD)

RemovedRecital 6: (6) Buildings account for 40 % of final energy consumption in the Union and 36% of its energy-related greenhouse gas emissions. Natural gas plays the largest role in heating of buildings, accounting for around 42% of energy used for space heating in the residential sectors. Oil is the second most important fossil fuel for heating, accounting for 14% and coal accounts for around 3%. Therefore, reduction of energy consumption , in line with the energy efficiency first principle as laid down in Article 3 [revised EED] and defined in Article 2(18) of Regulation (EU) 2018/1999 of the European Parliament and of the Council32 and the use of energy from renewable sources in the buildings sector constitute important measures needed to reduce the Union’s greenhouse gas emissions. Reduced energy consumption and an increased use of energy from renewable sources, especially solar energy, also have a key role to play in reducing the Union’s energy dependency on fossil fuel overall and on imports especially, promoting security of energy supply, in particular according to the objectives set out in the REPowerEU plan, and technological developments and in creating opportunities for employment and regional development, in particular in islands and rural areas.

AddedProposal for a

RemovedThe introduced amendment is inextricably linked to other provisions, notably Article 2 (50), Article 3, Article 16 and Annex I-III, as heating and cooling systems are an essential parameter, when establishing the energy performance and operational GHG emissions of buildings.

AddedDIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

RemovedRecital 6 a (new): (6a) The improvement of energy efficiency and energy performance of buildings through deep renovation has enormous social, economic and environmental benefits. Moreover, energy efficiency is the safest and most cost-efficient method by which to decrease the Union’s dependence on energy imports and to mitigate the negative impact of high energy prices. Furthermore, the reduction of energy consumption would significantly reduce the revenues of third countries that supply energy to the Union, which use the revenues from that supply to fund military adventurism. Investments in energy efficiency should therefore be regarded as a high priority at both private and public level.

Addedon the energy performance of buildings (recast)

RemovedThis amendment is necessary for pressing reasons relating to the internal logic of the text.

Added(Text with EEA relevance)

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

AddedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

RemovedThis Directive introduces provisions in relation to worst performing buildings in Articles 9, 15 and 16. This amendment is hence necessary for pressing reasons relating to the internal logic of the text.

AddedHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 194(2) thereof,

RemovedRecital 6 c (new): (6c) The introduction of minimum energy performance standards, accompanied by social safeguards and financial guarantees, are intended to improve the quality of life of the most vulnerable and poorest citizens.

AddedHaving regard to the proposal from the European Commission,

RemovedThis Directive contains specific provisions in Articles 9, 15 and 26, to provide an adequate framework for the introduction of minimum energy performance standards. This article is hence inextricably linked to other admissible amendments.

AddedAfter transmission of the draft legislative act to the national parliaments,

RemovedRecital 7: (7) Buildings are responsible for greenhouse gas emissions before, during and after their operational lifetime. The whole life-cycle emissions of buildings should therefore progressively be taken into account in line with a Union methodology to be established by the Commission, starting with new, then renovated buildings, for which Member States should establish whole life-cycle greenhouse gas emission reduction targets in accordance with that Union 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.

AddedHaving regard to the opinion of the European Economic and Social Committee,

RemovedRecital 7 a (new): (7a) The introduction of requirements on whole life-cycle emissions will encourage industrial innovation and local value creation, such as through an increase in the use of local, traditional natural materials, including stone and wood.

AddedHaving regard to the opinion of the Committee of the Regions,

RemovedThis Directive introduces the framework for calculating lifecycle GWP in Article 7(2) and Annex III. Therefore, the amendment is necessary for pressing reasons relating to the internal logic of the text.

AddedActing in accordance with the ordinary legislative procedure,

RemovedRecital 8: (8) Minimizing the whole life-cycle greenhouse gas emissions of buildings requires resource efficiency, sufficiency, circularity, and turning parts of the building stock into a carbon sink.

AddedWhereas:

RemovedRecital 8 a (new): (8a) Sufficiency policies are measures and daily practices that avoid the demand for energy, materials, land, water, and other natural resources over the lifecycle of buildings and goods while delivering wellbeing for all within planetary boundaries. Circularity principles avoid the linear use of materials and goods by applying some of the sufficiency principles at the level of product and construction materials. Measures to reduce the built floor area per capita, to increase co-working and co-living, to prioritise the use of empty buildings over the construction of new ones, and to use and extend the lifetime of secondary materials, are essential to ensure that the Union building sector contributes its fair share to the achievement of the climate neutrality objective. This Directive introduces requirements on Member States to set, in their national building renovation plans, five-year targets to reduce the overall energy, carbon, and environmental footprint of buildings, including through a higher rate of circularity and higher sufficiency, and renovations designed for the easy dismantling and reversibility of buildings. Those targets should lead to at least the doubling of the current rate of use of secondary materials for each material class by 2030, enabling the valorisation of locally sourced materials.

Added(1) Directive 2010/31/EU of the European Parliament and of the Council has been substantially amended several times. Since further amendments are to be made, that Directive should be recast in the interests of clarity.

RemovedThe amendment is inextricably linked to other admissible amendments.

Added(2) Under the Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC), its Parties have agreed to hold the increase in the global average temperature well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels. The parties to the Glasgow Climate Pact in November 2021 reaffirmed that keeping the increase in the global average temperature to 1,5°C above pre-industrial levels would significantly reduce the risks and impacts of climate change, and undertook to strengthen their 2030 targets by the end of 2022. Reaching the objectives of the Paris Agreement is at the core of the Commission communication on “The European Green Deal” of 11 December 2019. The Union committed itself to reduce the Union’s economy-wide net greenhouse gas emissions by at least 55 % by 2030 below 1990 levels in the updated nationally determined contribution submitted to the UNFCCC Secretariat on 17 December 2020.