Changes from report parliamentary committee draft to plenary report

RemovedThis Directive introduce provisions in relation to worst performing buildings in Article 9, 15 and 16, requiring its definition. It also deletes the provisions on worst performing segments of Article 2a d) as part of the recast. Therefore, this amendment is inextricably linked to other admissible amendments.

Added(35) Member States should support energy performance upgrades of existing buildings that contribute to achieving ▌ healthy indoor environmental quality, including healthy and affordable living space, the removal of asbestos and other harmful substances, preventing the illegal removal of harmful substances, and facilitating compliance with existing legislative acts such as Directives 2009/148/EU and (EU) 2016/2284 of the European Parliament and of the Council.

RemovedArticle 2 – paragraph 1 – point 3 b (new): 3b. 'energy plus building' means a building that is placed in energy performance class A+ because it meets all of the following conditions: / (a) high efficiency standards with energy needs for heating, cooling, ventilation and hot water no higher than 15 kWh/m2/year; / (b) the production of more kWh renewable energy on-site than is necessary for any residual energy needs; and / (c) carbon positivity regarding the building’s lifecycle GWP including building materials and energy installations during manufacturing, installation, use, maintenance, and demolition.

Added(35a) Integrated district or neighbourhood approaches allow for overall renovation concepts for buildings that are spatially related such as housing blocks. Such approaches to renovations offer multiple solutions at a larger scale. Integrated renovation plans can adopt a more holistic approach, which addresses the broader community ecosystem, such as transport needs and appropriate sustainable energy sources, including on-site and nearby renewables or district heating and cooling. Such plans allow for increased cost effectiveness of the works required, enhance connections between modes of transport and take account of existing infrastructure for the purpose of system optimisation as well as the preservation of cultural heritage. Therefore, this Directive should promote the wider use of integrated, participative and district-related approaches, which allow for synergies and potential energy savings that would remain untapped if the focus were exclusively on individual buildings. Integrated renovation plans can also lead to benefits such as improved air quality, a reduction in district emissions, and a large-scale alleviation of energy poverty. Districts should be established by local authorities, in accordance with local needs.

RemovedThis Directive introduces zero emission buildings in Article 7 and Annex III, allowing for residual energy needs. However, buildings with more ambitious standards exist, such as passive houses for example. They should be represented in the energy performance scale and defined. The amendment is hence inextricably linked to other admissible amendments.

Added(35b) In order to support the multiplication and replicability of successful building renovation projects, in line with the New European Bauhaus initiative, in particular with its sustainability goal, Member States should put in place national industrial policies for the large-scale production of locally adaptable prefabricated building elements for building renovation that provide different functions, including aesthetics, insulation and energy generation and insulation and green infrastructures. They should also promote biodiversity, water management, accessibility and mobility.

RemovedArticle 2 – paragraph 1 – point 4: 4. ‘minimum energy performance standards’ means rules that require existing buildings to meet an energy performance requirement as part of a wide renovation plan for a building stock or at a trigger point on the market (sale or rent), in a period of time or by a specific date, and in line with the energy efficiency first principle, thereby triggering renovation of existing buildings;

Added(35c) Member States should develop national electrical inspections regimes in light of the fact that a high percentage of the domestic and accidental domestic fires have an electrical source and in order to ensure that electrical installations are safe and ready for new uses aiming to achieve zero-emissions buildings.

RemovedArticle 2 – paragraph 1 – point 4 a (new): 4a. 'energy efficiency first' means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999;

Added(35d) Consideration of the water-energy nexus is particularly important to address the interdependent energy and water use and the increasing pressure on both resources. The effective management and reuse of water can make a significant contribution to energy savings, yielding climate, but also economic and social, benefits.

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

Added(36) Electric vehicles are expected to play a crucial role in the decarbonisation and efficiency of the electricity system, namely through the provision of flexibility, balancing and storage services, especially through the development of smart charging and aggregation. This potential of electric vehicles to integrate with the electricity system and contribute to system efficiency and further absorption of renewable electricity should be fully exploited including through the installation of a public charging infrastructure in parking spaces. Charging in relation to buildings is particularly important, since this is where electric vehicles park regularly and for long periods of time. Slow smart and bidirectional charging is economical and the installation of recharging points in private spaces can provide energy storage to the related building. Combined with data provided by smart meters and data produced by the vehicle, charging infrastructure for electric vehicles could also provide flexibility solutions and integration of smart and bidirectional charging services and system integration services in general. Electric vehicles capable of bidirectional charging add to the capacity of buildings and the electricity system to balance power supply and demand, especially during peak hours and at lower cost, and empower users to actively providing such services against adequate remuneration.

RemovedArticle 2 – paragraph 1 – point 13: 13. ‘energy from renewable sources’ means energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) , and geothermal energy , ambient energy, and, within the limits of sustainable availability, also tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas;

Added(37) Combined with an increased share of renewable electricity production, electric vehicles produce fewer greenhouse gas emissions. Electric vehicles constitute an important component of a clean energy transition based on energy efficiency measures, alternative fuels, renewable energy and innovative solutions for the management of energy flexibility. Building codes can be effectively used to introduce targeted requirements to support the deployment of recharging infrastructure in car parks of residential and non-residential buildings. Member States should remove barriers such as grid connection and capacity bottlenecks, split incentives and administrative complications which individual owners encounter when trying to install a recharging point on their parking space.

RemovedArticle 2 – paragraph 1 – point 18: 18. ‘renovation passport’ means a document that provides a tailored roadmap for the deep renovation of a specific building in several steps aligned with a staged deep renovation that will transform the building into a zero emission building with significantly improved energy performance and reduced whole life-cycle greenhouse gas emissions;

Added(38) Pre-cabling provides the right conditions for the rapid deployment of recharging points if and where they are needed. Readily available infrastructure will decrease the costs of installation of recharging points for individual owners and ensure that electric vehicle users have access to recharging points. Establishing requirements for electromobility at Union level concerning the pre-equipping of parking spaces and the installation of recharging points is an effective way to promote electric vehicles in the near future while enabling further development at a reduced cost in the medium to long term. ▌ Member States should ensure the accessibility of recharging points for persons with disabilities.

RemovedArticle 2 – paragraph 1 – point 19 – introductory part: 19. ‘deep renovation’ means a renovation in line with the energy efficiency first principle and efforts to reduce whole life-cycle greenhouse gas emissions, which transforms a building or building unit

Added(39) Smart charging and bidirectional charging enable the energy system integration of buildings. Recharging points where electric vehicles typically park for extended periods of time, such as where people park for reasons of residence or employment, are highly relevant to energy system integration, therefore smart charging functionalities need to be ensured. As bidirectional charging assists the further penetration of renewable electricity by electric vehicle fleets in transport and the electricity system in general and is instrumental to peak shaving, thus lowering the need for power supply at peak hours and hence overall system costs, such functionality should also be made available, not least as it empowers owners of electric vehicles to make such functions available to play and active part in the energy system against adequate remuneration, in line with their right to generate, share, store or sell self-produced energy.

RemovedArticle 2 – paragraph 1 – point 19 – point a: (a) before 1 January 2025, into a nearly zero-energy building;

Added(40) Promoting green mobility is a key part of the European Green Deal and buildings can play an important role in providing the necessary infrastructure, not only for recharging of electric vehicles but also for bicycles. A shift to active mobility such as cycling can significantly reduce greenhouse gas emissions from transport. With the increase in the sale of electrically power-assisted bicycles and other L-category vehicle types and in order to facilitate the installation of recharging points at a later stage, pre-cabling for those vehicles should be required in new residential buildings and, where technically and economically feasible, pre-cabling or ducting should be required in residential buildings undergoing major renovation. As set out in the 2030 Climate Target Plan, increasing the modal shares of clean and efficient private and public transport, such as cycling, will drastically lower pollution from transport and bring major benefits to individual citizens and communities. The lack of bike parking spaces is a major barrier to the uptake of cycling, both in residential and non-residential buildings. Union requirements and nationalbuilding codes can effectively support the transition to cleaner mobility by establishing requirements for a minimum number of bicycle parking spaces, and building bicycle parking spaces and related infrastructure in areas where bicycles are less used can lead to an increase in their use. The requirement to provide bicycle parking spaces should not be dependent on, or necessarily be linked to, the availability and supply of car parking spaces, which may be unavailable in certain circumstances. Minimum car parking requirements in building codes should be replaced with maximum car parking requirements, particularly in those areas that are already well served by public transport and active mobility options. Member States should support local authorities in developing and implementing sustainable urban mobility plans with a particular focus on the integration of housing policies with sustainable mobility and urban planning, thereby ensuring and prioritising accessibility of all new major urban developments by active mobility and public transport.

RemovedArticle 2 – paragraph 1 – point 19 – point b: (b) from 1 January 2025, into a zero-emission building;

Added(40a) Technical support will also be needed to build the capacity of local authorities through trainings and workshops, for instance on designing procurements considering whole life-cycle data and to carry out the whole-life carbon monitoring.

RemovedArticle 2 – paragraph 1 – point 22 a (new): 22a. ‘embodied greenhouse gas emissions’ means the greenhouse gas emissions associated with the extraction of the raw materials that are used in the construction of buildings, the material production and processing (pre-construction), the production and construction processes, including the wasted material, the maintenance and repair, the replacement of building elements, the renovation, the deconstruction of the building and reuse, recycling, other recovery and disposal of its materials;

Added(40b) When implementing the electromobility requirements in this Directive, Member States should particularly consider the economic situation of vulnerable households and vulnerable microenterprises and small enterprises and should be able to adjust the installation of the relevant infrastructure accordingly.

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

Added(41) The agendas of the Digital Single Market and the Energy Union should be aligned and should serve common goals. The digitalisation of the energy system is quickly changing the energy landscape, from the integration of renewables to smart grids and smart-ready buildings. In order to digitalise the building sector, the Union’s connectivity targets and ambitions for the deployment of high-capacity communication networks are important for smart homes and well-connected communities. Targeted incentives should be provided to promote smart-ready systems and digital solutions in the built environment. This would offer new opportunities for energy savings, by providing consumers with more accurate information about their consumption patterns, and by enabling the system operator to manage the grid more effectively.

RemovedArticle 2 – paragraph 1 – point 23: 23. ‘whole life-cycle greenhouse gas emissions’ means the sum of the operational and embodied greenhouse gas emissions associated with the building at all stages of its life-cycle, from the ‘cradle’ to the ‘grave’;

Added(42) In order to facilitate a competitive and innovative market for smart building services that contributes to efficient energy use and integration of renewable energy in buildings and support investments in renovation, Member States should ensure direct access to building systems’ data by interested parties. To avoid excessive administrative costs for third parties, Member States shall facilitate the full interoperability of services and of the data exchange within the Union.

RemovedArticle 2 – paragraph 1 – point 26: 26. ‘energy poverty’ means energy poverty as defined in Article 2(2) of Regulation (EU) …/… [Social Climate Fund as proposed by COM(2021)0568];

Added(43) The smart readiness indicator should be used to measure the capacity of buildings to use information and communication technologies and electronic systems to adapt the operation of buildings to the needs of the occupants and the grid and to improve the energy efficiency and overall performance of buildings. The smart readiness indicator should raise awareness amongst building owners and occupants of the value behind building automation and electronic monitoring of technical building systems and should give confidence to occupants about the actual savings of those new enhanced-functionalities. The smart readiness indicator is particularly beneficial for large buildings with high energy demand. For other buildings, the scheme for rating the smart readiness of buildings should be optional for Member States.

RemovedArticle 2 – paragraph 1 – point 27: 27. ‘vulnerable households’ means households in or at risk of energy poverty or households, including lower middle-income ones, that are particularly exposed to high energy costs and lack the means to renovate the building they occupy;

Added(44) Access to sufficient grants and funding is crucial to meet the 2030 and 2050 energy efficiency targets as well as to reduce the number of people living in energy poverty. Union financial instruments and other measures have been put into place or adapted with the aim of supporting the energy performance of buildings and eliminating energy poverty. The most recent initiatives to increase the availability of financing at Union level include, inter alia, the ‘Renovate’ flagship component of the Recovery and Resilience Facility ▌ and the Social Climate Fund and the REPowerEU plan. Several other key EU programmes can support energy renovation under the 2021-2027 Multiannual Financial Framework, including the cohesion policy funds and the InvestEU Fund established by Regulation (EU) 2021/523 of the European Parliament and of the Council. Through Framework Programmes for research and innovation, the Union invests in grants or loans to push the best technology and improve the energy performance of buildings, including through partnerships with industry and Member States such as the Clean Energy Transition and Built4People European Partnerships. In accordance with Regulation (EU) 2021/1119, the Commission should establish sector-specific energy transition partnerships within the building sector by bringing together key stakeholders.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – introductory part: 31. [‘cost-optimal level’ means the energy performance level which leads to the lowest cost during the estimated economic lifecycle, where:]

Added(45) Union financial instruments should be used to give practical effect to the objectives of this Directive, without however substituting national measures. In particular, due to the scale of the renovation effort needed, they should be used for providing appropriate and innovative means of financing to catalyse investment in energy performance of buildings. They could play an important role in the development of national, regional and local energy efficiency funds, instruments, or mechanisms, which deliver such financing possibilities to private property owners, to small and medium-sized enterprises and to energy efficiency service companies.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(46) Financial mechanisms, Union grants and subsidies, incentives and the mobilisation of financial institutions for energy renovations in buildings, tailored to the needs of different building owners and tenants, should play a central role in national building renovation plans and be actively promoted by Member States. Such measures should promote energy efficient mortgages with social safeguards for certified energy efficient building renovations, foster investments for public authorities in an energy efficient building stock, for example by public-private partnerships or energy performance contracts or reducing the perceived risk of the investments. Financial schemes should provide an important premium for deep renovations, especially of the worst performing buildings, in order to make them financially attractive and be designed to allow accessibility for groups having difficulties to obtain regular financing.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – introductory part: (a) [the lowest cost is determined taking into account:]

Added(46a) Member States should provide guarantees to financial institutions in order to promote targeted financial products, grants and subsidies, to enhance the energy performance of buildings housing vulnerable households, as well as to owners in worst-performing multi-dwelling buildings and buildings in rural areas, and other groups having difficulty to access finances or get traditional mortgages. Member States should ensure that those groups benefit from cost neutral renovation schemes, for instance through fully subsidised renovation schemes, or blends between grants and energy performance contracting and on-bill schemes. It is necessary to provide for a special renovation instrument, the "EU Renovation Loan", at Union level, to provide homeowners with access to Union, long-term borrowing costs for deep renovation.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(46b) Financing plays a key role in achieving the Union 2030 energy and climate targets. To reduce the investment gap as well as to improve financing and to increase energy efficiency and the roll-out of renewable energy sources in buildings, a more cost-effective use of existing financing options is needed, as well as developing and introducing innovative financing mechanisms to support investments in building renovations and to assist homeowners as part of national initiatives. Financial mechanisms, incentives and the mobilisation of private investments from financial institutions for energy efficiency renovations in buildings should have a central role in national building renovation plans. Financial institutions should increase dissemination of information on their financial products to informbuildings owners, tenants and users about financial servicesto enhance energy performance. Financial institutions, including credit institutions and other financial market participants that invest in real estate-backed products, as well regulatory authorities should have access to information concerning the energy performance of buildings. Such institutions should be subject to the mortgage portfolio standards.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – point i: i) [the category and use of building concerned:]

Added(46c) Green mortgage loans and green retail loans can significantly contribute to transforming the economy and reducing carbon emissions. Member States should adjust the applicable legislation and develop supporting measures to facilitate the uptake of green mortgage loans and green retail loans as well as systematic data collection.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(46d) Member States should prioritise the allocation of part of the European Social Fund to the technical training of workers in energy efficiency for the construction and renovation sectors. Member States should establish registries of their construction value-chain professionals, detailing the availability of skills and skilled professionals on the market. Those registries should be be publicly accessible and updated regularly.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – point ii: ii) [energy-related investment costs based on official forecasts ;]

Added(46e) The benefits of the ‘pay-as-you-save financial scheme’ in the medium-term, following the repayment of the loan, imply a net benefit for the household owners in terms of annual energy cost savings and an increased value of the property.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(47) Financing alone will not deliver on the renovation needs. ▌Setting up accessible and transparent advisory tools and assistance instruments such as independent one-stop shops that provide free integrated energy renovation services or facilitators and advice, as well as implementing other measures and initiatives such as those referred to in the Commission’s Smart Finance for Smart Buildings Initiative, is indispensable to provide the right enabling framework and break barriers to renovation. The central importance of local actors, such as municipal authorities, energy agencies and renewable and citizen energy communities, to delivering national renovation needs should be recognised. Other collaborative measures such as public-private partnerships play an important role and should be actively promoted and supported by Member States. In addition to financing and technical support, Member States should take up neighbourhood and district approaches to building renovation and renewable heating and cooling in their national building renovation plans and actively promoted them. Local initiatives, such as citizen-led renovation programmes at neighbourhood or municipal level, should also be provided with financial and technical support, as such initiatives enhance citizens’ engagement in the energy transition, preserve local social patterns, have an economy of scale effect and provide solutions fitting with the local context and needs.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – point iii: iii) [maintenance and operating costs, including energy costs taking into account the cost of greenhouse gas allowances;]

Added(47a) Access to trusted advice and information increases confidence and eases the process of improving energy efficiency in existing buildings, especially for private citizens. In that regard, one-stop shops could play an important role in connecting potential projects with market actors, including citizens, public authorities and project developers, in particular smaller-scale projects as well as guidance on permit procedures, promoting access to funding for building renovation, and helping to disseminate information on terms and conditions. Locally operated one-stop-shops could also help ensure coordination of supply and demand. They can help building owners and managers with the renovation projects and help integrate individual projects into the broader strategy of the cities. They can also help prioritise worst performance buildings by establishing timelines and providing targeted support to different portions of the building stock based on construction years. One-stop shops are also important to encourage citizens to start renovation projects by providing advice and research options, facilitating the search for contractors, helping to navigate through tenders and quotations, and providing support during the renovations. Increased technical assistance is necessary to set up and develop one-stop shops and mobilise the right expertise.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(48) Inefficient buildings are often linked to energy poverty and social problems. Vulnerable households are particularly exposed to increasing energy prices as they spend a larger proportion of their budget on energy products. By reducing excessive energy bills, building renovation can lift people out of energy poverty and also prevent it. At the same time, building renovation does not come for free, and it is essential to ensure that the social impact of the costs for building renovation, in particular on vulnerable households, is limited. The Renovation Wave should leave no one behind and be seized as an opportunity to improve the situation of vulnerable households and people living in social housing, and a fair transition towards climate neutrality should be ensured. Therefore, financial incentives and other policy measures should as a priority target vulnerable households ▌and people living in social housing, and Member States should outline in their national building renovation plans measures to be taken to prevent evictions because of renovation, such as rental price breaks and rent caps measures. The Commission proposal for a Council Recommendation on ensuring a fair transition towards climate neutrality provides a common framework and shared understanding of comprehensive policies and investments needed for ensuring that the transition is fair.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – point iv: iv) [environmental and health externalities of energy use;]

Added(48a) Energy poverty affects women disproportionately throughout the Union and therefore Member States should dedicate the necessary support to alleviate energy poverty among women. Member States should make more effort to compile gender-disaggregated data into theirnational building renovation plans in order to better target policies and measures.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(49) In order to ensure that the energy performance of buildings can be taken into account by prospective buyers or tenants early in the process, buildings or building units which are offered for sale or rent should have an energy performance certificate, and the energy performance class and indicator should be stated in all advertisements. The prospective buyer or tenant of a building or building unit should, in the energy performance certificate, be given correct information about the energy performance of the building and practical advice on improving such performance. The energy performance certificate should also provide information on its primary energy and final consumption, on its energy needs, on its renewable energy production on its greenhouse gas emissions, on its indoor environmental quality, as well as recommendations for the improvement of the energy performance and the life-cycle GWP.

RemovedArticle 2 – paragraph 1 – point 31 – subparagraph 1 – point a – point v: v) [earnings from energy produced on-site , where applicable;]

Added(49a) When considering support policies for minimum energy performance standards, special attention should be given to vulnerable households, particularly to those whose security of tenure might be put at risk or those exposed to high energy costs that lack the means to renovate the building they occupy. Member States should provide safeguards at national level, such as social support mechanisms.

RemovedThe concept of “cost optimality” is insufficiently framed in this Directive and the empowerment should also be subject to review. The co-legislators should consider anchoring in the legislative act other general principles framing this concept.

Added(49b) The energy transition represents an opportunity to improve access to better quality housing, provided that renovation costs are balanced as much as possible with energy savings and security of tenure is ensured. It can also help lift households out of energy and transport poverty if subsidies and public funding are made available to those with reduced access to market-price loans. Also, for public housing and rented buildings, participative models are essential for tenants to work together with the housing companies, landlords and owners associations on the scope and cost of renovations. It can help balancing costs and reinforce security of tenure. Capacity-building opportunities for local housing providers should be created for better uptake of participative models and a more coordinated approach across sectors at national, regional and local level.