Policy Overview

The update of the Energy Performance of Buildings Directive 2010/31/EU (EPBD) aims to align the policy with the EU’s increased 2030 emissions reduction target of 55% by reducing the buildings sector’s energy-related greenhouse gas emissions by 60% compared to 2015 levels. The suite of measures in the proposal includes new EU-wide Minimum Energy Performance Standards, requirements for new buildings to meet a ‘Zero-Emission Building’ standard, and proposals to phase-out fossil fuel heating. Its review under the Green Deal was proposed in October 2020 as part of the EU Renovation Wave communication.

Policy Passed

Despite broad support for all key elements of the EPBD review, engagement from the energy and part of the utilities sectors appears to have led to the weakening of measures on fossil fuel boilers and ‘Zero Emission Building’ standards.

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Inactive: completed. The act was signed on 24 April 2024 and published in the Official Journal on 8 May 2024.

  • European Parliament: Industry, Research and Energy (ITRE) Committee
  • Rapporteur: Ciarán Cuffe (Greens/EFA, Ireland)
  • European Council: Working Party on Energy and Energy Council

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Policy Engagement Overview

The aggregated evidence of corporate and industry lobbying on the EPBD revision shows strong support for high-level ambition and energy efficiency measures from some utilities and industrial companies. However, some fossil gas-focused energy and utilities companies and the Federation of German Industries (BDI) advocated to weaken elements of the policy that would accelerate renovations of energy inefficient buildings and restrict fossil gas use.

Long-term Lobbying Trends

A range of sectors supported introducing mandatory Minimum Energy Performance Standards (MEPS) for residential and non-residential buildings and increasing the ambition of the ‘Nearly Zero Emission Buildings’ definition, including Airbus, Iberdrola, Ikea, EDF Group, Edison, Saint-Gobain, Schneider Electric, Siemens, and associations Eurelectric, CEMBUREAU and SmartEn.

Fossil gas utilities and energy actors advocated to limit the scope of MEPS and did not support increasing the ambition of the ‘Nearly Zero Emission Buildings’ definition. This included companies Engie, PGE, Snam and associations the Federation of German Industry, Eurogas.

Industrial and utilities sectors supported gradually phasing out fossil fuels in buildings including EDF, Schneider Electric, Siemens and associations Eurelectric and SmartEn. Iberdrola explicitly supported a phase-out of fossil fuels in heating by 2022 in new buildings and by 2025 in existing buildings.

Energy companies and gas utilities, alongside gas associations, promoted a continued role for fossil gas in buildings, including Fortum, Snam, Eurogas, PGE Group, EDF subsidiary Edison, Naturgy, Gas Distributors for Sustainability, and FuelsEurope.

New engagement trends since EU commission December 2021 proposal

Utilities and industrial companies advocated for higher ambition in the EU Commission’s proposed Minimum Energy Performance Standards (MEPS), including Iberdrola, Siemens, SmartEn, Saint-Gobain, Corporate Leaders Group and IKEA.

Impacts on Policy Ambition

By considering the potential scenarios in the EU Commission's original Impact Assessment Report for the Energy Performance of Buildings Directive, and comparing this to the final proposal, a gauge of the impact of industry lobbying can be measured. In this case, intense engagement from several sectors appears to have partially weakened the ambition of the EU Commission’s proposal.

EU Commission Proposal

  • Minimum Energy Performance Standards (MEPS): The EPBD proposal stated that the new MEPS do not directly correspond with any of the four options in the impact assessment. However, opposition to the MEPS from energy and utilities actors, and calls for flexibility, appear to have resulted in the new EU-level MEPS only affecting the worst performing buildings (EPC F and G buildings). Member States are required to develop roadmaps with timelines for their national building stock to achieve higher EPC classes by 2040 and 2050 in order to decarbonize residential and public buildings.

  • Fossil fuel phase-out: The EPBD proposal introduced a ban on incentives for fossil-fuel boilers from 2027, and a requirement for EU Member States to develop policies and measures to phase out fossil fuels in heating and cooling by 2040. The impact assessment did not directly set out potential timelines for a phase-out of fossil fuels in the buildings sector.

  • Zero-Emission Buildings Definition and Timeline: In line with the higher ambition options set out in the impact assessment, the EPBD proposal introduced a new definition for ‘Zero-Emission Buildings’, updating the ‘Nearly-Zero Energy Buildings” definition from the current EPBD. The new definition required energy to be fully covered by renewable sources generated on-site, or from certain alternatives. It also set a timeline for all new public buildings to be Zero-Emission Buildings from 2027, expanding to apply to all new buildings from 2030.

EU Council Position

The EU Council’s position on the EPBD weakened several elements of the Commission proposal.

  • Minimum Energy Performance Standards (MEPS): The ambition of the Council position weakened the Commission proposal. For non-residential buildings, it established a new categorization based on primary energy use, with a requirement to improve the 15% worst-performing buildings by 2030, and the worst 25% by 2034. However, exemptions were made available in the case of ‘unfavorable’ cost-benefit assessments. For residential buildings, it introduced a requirement for the average primary energy use of each member state’s building stock to reach EPC class D by 2033, and a nationally determined but unspecified target by 2040.

  • Fossil fuel phase-out: The Council position proposed a ban on incentives for fossil-fuel boilers from 2025, “with the exception of those selected for investment before 2025.”

  • Zero-Emission Buildings Definition and Timeline: The Council position significantly weakened the Commission’s definition, allowing member states flexibility on the thresholds to define ‘Zero-Emission Buildings’ with a “very low amount of operational greenhouse gas emissions.” It also delayed the requirement for new public buildings to be ‘Zero-Emission’ to 2028.

EU Parliament Position

The EU Parliament position on the EPBD increased ambition on all key elements, but significantly weakened the criteria for fossil fuel heating technologies.

  • Minimum Energy Performance Standards (MEPS): The EU Parliament position strengthened the EU Commission proposal, increasing all targets by one EPC class.

  • Fossil fuel phase-out: The EU Parliament position strengthened the EU Commission proposed timelines. Incentives for fossil fuel boilers would be banned from January 2024 and fossil fuel based heating systems phased-out from all buildings by 2035 and 2040 at the latest.

  • Fossil fuel heating criteria: The EU Parliament position proposed that hybrid heating systems, boilers certified to run on renewable fuels and other technical building systems not exclusively using fossil fuels should not be considered fossil heating systems.

  • Zero-Emission Buildings Definition and Timeline: The EU Parliament position accelerated the introduction of the Zero-Emission Buildings Definition for new buildings, and expanded the scope of eligible renewable energy sources. It proposed all new public buildings should be Zero-Emission Buildings from 2026.

Policy Passed

In April 2024, the review of the EPBD was formally adopted by the EU. The agreement allows member states to set their own national trajectories for reducing the average primary energy use of residential buildings. For non-residential buildings, a target was proposed to renovate the 16% worst-performing buildings by 2030 and 26% by 2033. Incentives for fossil fuel boilers would be banned from January 2025, with a full phase-out earmarked for 2040. However, hybrid heating systems utilizing fossil fuels, will continue to be eligible for incentives past 2025.

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Inactive: completed. The act was signed on 24 April 2024 and published in the Official Journal on 8 May 2024.

  • European Parliament: Industry, Research and Energy (ITRE) Committee
  • Rapporteur: Ciarán Cuffe (Greens/EFA, Ireland)
  • European Council: Working Party on Energy and Energy Council

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

European Commission

European Parliament

European Council

Live Lobbying Alerts

Spanish Confederation of Business Organizations publishes proposals for EU 2024-29 Strategic Agenda

08/10/2024

In April 2024 proposals for the EU’s 2024-29 Strategic Agenda, the Spanish Confederation of Business Organizations (CEOE) advocated that competitiveness and economic growth should be placed at the center of policies. The association also appeared unsupportive of the legislated phaseout of the free allocation of emissions allowances in the EU Emissions Trading System and advocated for a technology neutral approach to the decarbonization of the mobility sector, although it supported the EU Renovation Wave.

SmartEn strongly supports revised EU energy efficiency rules for buildings

21/04/2023

Ahead of negotiations to finalize the EU’s Energy Performance of Buildings Directive, SmartEn has published a position paper on 11th April, strongly supporting ambitious definitions for net-zero buildings and advocating for restricting exemptions for hybrid fossil fuel boilers.

FuelsEurope supports continued use of fossil fuel heating systems in Europe

30/03/2023

FuelsEurope in a March 2023 joint statement supported weakening the criteria for heating systems that are considered fossil fuel free under the EU’s Energy Performance of Buildings Directive, as proposed by the EU Parliament committee. This would enable the continued use of boilers running on renewable fuels and other heating systems not using exclusively fossil fuels.

SolarPower Europe and smartEn support the EU Energy Performance of Buildings Directive​

03/03/2023

​​In a joint letter to policymakers, a group of industry associations, including SolarPower Europe and smartEn, supported the Energy Performance of Buildings Directive (EPBD), including the definition of zero-emission building and solar energy requirements in buildings.​

Industry associations call to weaken definition for zero-emission buildings in the EU Energy Performance of Buildings Directive

24/02/2023

A 17th February joint statement from industry associations including Eurogas, Gas Infrastructure Europe, Gas Distributors for Sustainability, and Eurelectric appeared to advocate to weaken the definition for zero-emission buildings in the EU Energy Performance of Buildings Directive. The statement advocated against the zero-emission buildings definition being delivered through Power Purchase Agreements (PPA) and additional renewable energy capacity, instead calling for existing grid capacity to be utilized.

Hydrogen Europe supports inclusion of hydrogen heating technologies in EU Energy Performance of Buildings Directive

17/02/2023

In a 9th February press release, Hydrogen Europe supported the European Parliament’s Committee on Industry, Research and Energy (ITRE) proposal, which weakened initial ambition by enabling hydrogen heating technologies to be included in the EU Energy Performance of Buildings Directive (EPBD).

Global coalition supports an EU 100% 2030 zero-emissions purchase target for corporate fleets

17/02/2023

In a 16th February joint letter, multiple industry associations and companies, including Eurelectric, AVERE, Coca-Cola, IKEA and Uber called for a 100% 2030 zero-emissions purchase target for corporate fleets in the EU, alongside generally supporting ambitious electric vehicle charging targets in the EU Energy Performance of Buildings Directive.

Corporate Leaders Group calls on EU Parliament for ambitious energy efficiency policy

27/01/2023

In a joint letter to EU Parliament on 17th January, Corporate Leaders Group advocated for an ambitious EU Parliament position on the Energy Performance of Buildings Directive ahead of its vote on 6 February.

Gas associations call for EU Energy Performance of Buildings Directive to include thermal power technologies, including fossil gas

22/12/2022

In a 28th November joint letter, Eurogas, GasNaturally, Gas Distributors for Sustainability, and Gas Infrastructure Europe called for the EU Energy Performance of Buildings Directive to widen its scope and include thermal power technologies, including fossil gas. Alongside this, the groups advocated for greater technological flexibility, and all forms of renewable technologies to be included in the definition of net zero energy buildings.

Automotive associations call for transition to electric vehicles under EU Energy Performance of Buildings Directive

22/12/2022

In a December 6th joint letter, the European Automobile Manufacturers Association (ACEA) and the European Association for Electromobility called on the EU Parliament's Industry (ITRE) Committee to amend the Energy Performance of Buildings Directive (EPBD) by setting ambitious targets for charging solutions on private property following the EU's passing of a 100% CO2 emission reduction target for cars and vans by 2035.

SolarPower Europe advocates for more ambitious rooftop solar requirements in the EU

07/11/2022

On 26th October, SolarPower Europe published a press release calling for more ambitious rooftop solar requirements in the EU Energy Performance of Buildings Directive (EPBD).

European associations urge a more ambitious solar mandate for buildings under the EU EPBD

07/11/2022

On 19th October, a number of entities including SmartEn, the European Association for Electromobility (AVERE) and SolarPower Europe, published a joint letter to the EU energy ministers and Members of European Parliament, calling for a more ambitious solar mandate for buildings in the EU Energy Performance of Buildings Directive (EPBD).

Entities Engaged on Policy

The table below lists the entities found to be most engaged with the policy. The entities are ranked by performance band. InfluenceMap tracks over 500 companies and 250 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.

Influencemap Performance BandOrganizationPolicy PositionPolicy Engagement Intensity