How does the Energy Performance of Buildings Directive fit into the Green Deal?

The European Union established a strategic agenda to tackle climate change and transform the European economy into a climate-neutral, green, and fair society. The European Climate Law (2021) legally commits the EU to cut its greenhouse gas (GHG) emissions by at least 55% by 2030 and reach carbon neutrality by 2050.

European buildings account for 40% of the energy consumed and 36% of energy-related direct and indirect GHG emissions. At the same time, the energy crisis has shown the importance of initiating a massive renovation wave of Europe’s buildings to reduce consumers’ energy bills and alleviate energy poverty. To achieve the targets, the EU had to revise the main building law, the Energy Performance of Buildings Directive (EPBD), and other areas, to align them with the new ambitions.

Following two years of discussions, the EU institutions (European Parliament, Commission and Council) reached a compromise on the Directive in December 2023, and officially approved by the European Parliament and the Council of Environment Ministers in March and April 2024 and published in the EU Official Journal on 08 May 2024. Now the EU Member States will have to apply the Directive by end of May 2026 (except if other specific deadlines for provisions are indicated). 

What is the plan with fossil fuels?

Stop on subsidies and phase-out

Subsidies for stand-alone fossil fuel boilers will be prohibited as of 2025.

EU Member States must outline how they will decarbonise heating systems, with a view to phasing out fossil fuels in heating and cooling by 2040. This establishes a clear legal basis at EU level for Member States to set requirements for heat generators, the type of fuel used, or the minimum share of renewable energy required for heating. 

All buildings zero-emission by 2050

The target is to get Europe’s full building stock to zero-emission by 2050, so called Zero-Emission Buildings (ZEB), with interim targets:

•        From 2028 onwards: All new buildings owned by public entities should be ZEB.
•             From 2030 onwards: All new buildings – both privately and publicly owned – should be ZEB.
•             2040: Member States will lay down further intermediate target for existing buildings at national basis in their national building renovation plans.

How will renovation be encouraged?

Minimum energy performance standards

Each Member State will have to adopt their own national trajectories to reduce their building stock’s average primary energy use in residential buildings:

1.        16% by 2030 (compared to 2020 levels);
2.          20-22% by 2035 (compared to 2020 levels). 

    To ensure that the EU’s worst-performing buildings are gradually refurbished, the EPBD specifies that at least 55% of the decrease in average primary energy use should stem from the renovation of the 43% worst-performing buildings in each country. Financial incentives for renovations shall target (as a priority) vulnerable households, people affected by energy poverty and people living in social housing.

For non-residential buildings, the gradual improvement should lead to the renovation of at least 16% of the worst-performing buildings by 2030 and 26% of those by 2033. Exemptions for certain categories of buildings are in place to adapt to the national building stock. 

Heat pumps as the solution?

Role for heat pumps

The majority of household energy use in the EU (80%) comes from heating, cooling, and domestic hot water. Therefore, to make Europe more resilient, EU buildings need to be renovated and heat pumps are expected to become a widespread solution for both new and existing buildings.

Heat pumps are different from conventional heating systems such as gas boilers and furnaces, because they don’t burn fossil fuels for heating and only need electricity to operate the system. Heat pumps are more energy efficient than boilers, lowering energy bills, and significantly cut CO2 emissions. Furthermore, heat pumps have advantages such as installation versatility, compactness, and a more environmentally friendly option, making them an attractive choice to replace boilers for both home and commercial use. 

Panasonic ready to contribute to a more sustainable building stock

The highly efficient and sustainable heating and cooling solutions provided by Panasonic are an essential, and even necessary, component in this transition. Not just towards 2050, but also to achieve the intermediate targets by 2030 and 2040 already.

These important policy signals confirm Panasonic’s commitment to investments in comfortable and sustainable solutions for both residential and non-residential buildings, which continue to expand. This is illustrated by the recent introduction of the new highly innovative air-to-water heat pump Aquarea T-CAP M Series. One of the largest barriers in Europe’s residential building stock today are the multi-family buildings.  The T-CAP M Series has 20 / 25 / 30 kW capacities and can be scaled up to 300 kW. It is compatible with existing radiators which makes it suitable for the upgrade of both multi-family buildings and light commercial. It can produce 75°C heating water even when the outdoor temperature is -15°C.

The equipment provided by Panasonic also plays a vital role in the decarbonisation of non-residential, especially in commercial buildings. The newly launched ECOi-W AQUA G-BLUE, a reversible air-to-water heat pump, takes our commercial portfolio to the next step.

Smart solutions

Another key trend is the advancement of building automation systems, monitoring and control devices that enable building owners, managers, residents and consumers to have more insight and involvement in operating their heating, cooling, ventilation and domestic hot water systems, taking a more proactive role and improving comfort for end-users. Panasonic is working hard to continuously offer a variety of connected solutions and recently announced its partnership with tado°, a German provider of energy control solutions, to further strengthen this.

Panasonic provides a variety of heating and cooling appliances for residential and non-residential buildings that are essential to enable the energy transition in buildings and meet the Green Deal goals to eliminate carbon emissions from Europe’s building stock by 2050. Panasonic’s constant investments in innovation and portfolio growth, show the company’s dedication and confidence in reaching this goal.