EU Energy & Climate Policy Update
Belgium, (Brussels Morning Newspaper) In the bloc’s effort to achieve climate neutrality and fulfill its international climate commitments, the building sector in the EU has a systemic role to play. The EPBD is the main policy instrument regulating buildings across the European Union.
Since its first adoption in 2002, the legislation has been key to improving the energy performance of the European building stock, by fostering energy efficiency and aiming at long-term decarbonization. But given the need to take decisive action in this decade to tackle the climate emergency, the time has come for a comprehensive revision, to fill gaps and raise ambition.
Profound transformations are urgently needed to decarbonize buildings, ensuring that the sector contributes to the efforts to limit temperature rise to 1.5C. Indeed, the homes and offices which surround us today are among the main culprits of the climate crisis, accounting for around 40 percent of all energy consumed and 36 percent of energy-related greenhouse-gas emissions in the EU.
More than seven out of ten buildings are still extremely wasteful—mainly due to poor thermal insulation and inefficient, fossil fuel-based heating systems—having been built before most energy-performance regulations emerged in the 1990s. It is estimated that up to 90 percent of existing buildings will still be in use in 2050 when the EU aims to be climate-neutral.
MEPs back plans to decarbonize buildings across the EU
In light of this process, the industry committee in the European Parliament will cast an important vote setting out how the bloc can decarbonize its building stock by 2050.
This includes greener forms of heating for the approximately 130 million buildings within the member states, 90 percent of which are residential housing.
Heating is the single most important driver of energy consumption in Europe, responsible for 35 percent of greenhouse gas emissions. This makes the so-called Energy Performance of Buildings Directive (EPBD) a crucial measure of the success of the bloc’s sustainability policies.
Seán Kelly MEP has welcomed an important vote in favor of plans to vastly improve the energy efficiency of buildings across the EU. The European Parliament’s Energy Committee gave its endorsement to the report on the Energy Performance of Buildings Directive (EPBD) with 49 votes in favor, 18 against, and 6 abstentions. In leading negotiations on the new legislation for the EPP Group, MEP Kelly sought a balance between environmental goals and supporting citizens who are already grappling with the increasing cost of living.
With buildings responsible for approximately 40 percent of the EU’s energy consumption and 36pc of energy-related greenhouse gas emissions, there is a clear need to address the built environment.
“Without tackling this area, we will not achieve climate targets as defined by law. However, this is not just about cost, but also opportunity. It will make households and companies more resilient to energy price surges by lowering the energy consumption of buildings.”
“Even after the crisis is over, we are looking at the ‘new normal’ of higher gas prices. We need to help households as those in worst performing buildings could be hit ten times harder than people in an efficient building”, Kelly continued.
“There is a delicate balance between improving the energy performance of the built environment while taking full account of the challenges for ordinary people and businesses to renovate. We need realistic policies and targets in place. That is what I tried to inject into negotiations and will continue to do throughout this entire legislative process.
“It is a massive undertaking, but there are many benefits to renovation. Not just from an energy and climate perspective, but also for health with renovations improving indoor air quality and comfort. There is also a return on investment, with cheaper energy costs as well as increasing the value of a property.
“Building renovations can seem daunting to many people, but this is why the EPP fought hard in negotiations to send a strong signal to citizens by deleting a reference to penalties in the legislation. I believe that the real enforcement mechanism will be the market itself. In my view, the EPBD is as much about assets and investment protection as it is about climate.
“The big barrier for most people is access to finance. We cannot impose obligations without providing the means to achieve them. The EPBD helps this significantly by creating much stronger links between the financial and the renovation sectors. Grants and subsidy schemes will play a big part in this at the national and EU levels, but public funds will only stretch so far, private money needs to be made available in a way that makes sense for citizens. Nobody should be left behind here.
“In addition, Europe has thousands of beautiful buildings that hold historical and architectural importance. These buildings are part of our history and culture, it is very important that their character is protected along with efforts to decarbonize. This was a key point for my group in negotiations”, he underlined.
“There is also the positive effect on jobs. The construction sector employs 10pc of the EU workforce, with 95pc of companies being SMEs. However, this important sector has experienced its sharpest decline since 2013. The EPBD will have a positive impact on the building value chain and create many thousands of well-paid and stable jobs.
“For me, it’s clear that smart investment in the building sector will produce many positive outcomes for citizens, businesses, society, and the economy” MEP Kelly added.
A European Parliament plenary vote is now expected in March.
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