Revised Energy Performance of Buildings Directive

On 28 May 2024, the revised Energy Performance of Buildings Directive (Revised EPBD) entered into force in all EU Countries. This Directive is a revision of the Energy Performance of Building Directive which was first introduced in 2002 by the Council of the European Parliament and has since undergone several revisions to adapt to evolving objectives. Each Member State has until 29 May 2026 to transpose this Directive into national law. 

What does the Revised EPBD do? 

The Revised EPBD aims to (i) boost the rate of building renovations, (ii) reduce energy consumption by reducing the EU’s reliance on fossil fuels and (iii) promote the uptake of renewable energy in buildings. Each Member State has flexibility around some of the targets to be met under the Revised EPBD. 

Key Components of the Revised EPBD:

(A) Zero Emission Buildings/ Emission Reduction Targets: 

The Revised EPBD raises the energy efficiency requirement of buildings from nearly zero emissions buildings to zero emission buildings. From 1 January 2028 all new buildings (residential and non-residential) owned by public authorities must be zero emission buildings and from 1 January 2030 for all other new buildings must be zero emission buildings. 

According to the Revised EPBD a ‘zero-emission building’ means a building with a very high energy performance, requiring zero or a very low amount of energy, producing zero on-site carbon emissions from fossil fuels and producing zero or a very low amount of operational greenhouse gas emissions. 

(B) Minimum Energy Performance Standards 

Non-residential Buildings

The Directive provides that Member States will have to establish measures to support owners in renovating non-residential buildings so that the bottom 16% of building stock is renovated by 2030 and the bottom 26% of building stock is renovated by 2033. Each Member State will also need to provide a specific timeline for the renovation of the remaining non-residential stock by 2040 and 2050 which is in line with the pathway to achieve zero emission status by 2050 (known as the Pathway to 2050). 

Member States have the option of establishing and publishing criteria to exempt individual non-residential buildings from this requirement, in light of the expected future use of those buildings, in light of serious hardship or in the case of an unfavourable cost-benefit assessment but only under strict conditions. Where the overall renovation is not cost effective, those parts of the renovation which are cost effective must be implemented. 

Residential Buildings 

Each Member State must establish its own national measures with regards to residential buildings in order to meet the target of a reduction in the average primary energy use by at least 16% by 2030 and 20-22% by 2035 (when compared to 2020). At least 55% of this decrease must be achieved by renovating 43% of the worst performing buildings. Certain buildings will be exempt from these requirements such as heritage buildings, places of worship and defence installations. 

(C) BER Certificates

BER Certificates are to be based on a common template across all Member States using a common scale of A-G. The A rating corresponds to a zero emission building and the G rating corresponds to the very worst performing buildings in each Member State. Member States have the flexibility to introduce an A+ rating which corresponds to a building which has an even better energy performance than zero-emission buildings by generating more renewable energy on-site annually than the amount of energy the building consumes. 

(D) Phasing out of Fossil Fuels

Two thirds of energy used to heat and cool buildings still comes from fossil fuels. Member States will need to outline how it proposes to decarbonise heating and cooling systems with a view to phasing out fossil fuels by 2040. Subsisting stand-alone fossil fuel boilers will be prohibited from 2025. Financial incentives will still be possible for hybrid heating systems which use a considerable share of renewable energy (such as combi boilers). 

(E) Solar Technology

All new buildings must be designed to host rooftop photovoltaic or solar thermal installations enabling solar technology to be installed at a later stage without costly structural interventions. Where technically suitable and economically feasible, existing public and non-residential buildings should be equipped with solar technologies within the following timeframes:

(i) new public and new non-residential buildings with useful floor area larger than 250 m2 – by 31 December 2026;

(ii) existing public buildings with useful floor area larger than:

• 2000 m2 – by 31 December 2027;
• 750 m2 – by 31 December 2028; and
• 250 m2 – by 31 December 2030;

(iii) existing non-residential buildings with useful floor area larger than 500 m2 undergoing major renovation or need a permit for the work, work on the roof or installation of a technical building system – by 31 December 2027;

(iv) all new residential buildings – by 31 December 2029; and

(v) all new roofed car parks (more than three car parking spaces) physically adjacent to buildings – by 31 December 2029.

(F) Sustainable Mobility

The Directive includes a number of measures to be implemented by Member States with a view to increasing the amount of electric vehicle (EV) recharging points and pre-cabling installed in both residential and non-residential buildings. 

(i) Non-residential buildings with more than five car parking spaces, either newly built or undergoing renovation, these building must have:

• one recharging point for EVs for every five parking spaces, save in the case of office buildings where one recharging points for EVs for every two parking spaces is required
  
• pre-cabling for EV recharging points for at least 50% of parking spaces, to allow for future installation
  
• bike parking for at least 15% of the average number of users or 10% of the total user capacity of the building, whichever is higher, and with sufficient space for larger bikes

(ii) Existing non-residential buildings with more than 20 parking spaces. These buildings must have, by 1 January 2027:

• one recharging point for EVs for every ten parking spaces
• pre-cabling for EV recharging points for at least 50% of parking spaces
• bike parking for at least 15% of the average number of users or 10% of the total user capacity of the building, whichever is higher, and with sufficient space for larger bikes

(iii) Residential buildings with more than three car parking spaces, either newly built or undergoing renovation. These buildings must have:

• pre-cabling for EV recharging points for at least 50% of parking spaces
  
• one recharging point for EVs for new residential buildings
  
• at least two bike parking spaces for each residential unit

(iv) Buildings owned or occupied by a public body

• installation of pre-cabling for at least 50% of the car parking spaces by 1 January 2033.

(G) Renovation Passport

Building renovation passport schemes must be introduced across all Member States to provide reliable and personalised renovation roadmaps to building owners planning a staged renovation of their building.

Conclusion:

With the Energy Performance of Building Bill listed for priority drafting in the Government’s Autumn 2024 Legislation Programme it is now up to Ireland (and the other Member States) to implement the necessary domestic legislation to give effect to the Revised EPBD. In the meantime it is important for all stakeholders in the Irish Real Estate sector to consider how best to apply the principles of the Revised EPBD to their building practices now so that their assets remain marketable in the future. 

For further information on the Revised EPBD and related reporting requirements, please contact Alison O’Sullivan, Mona Costelloe, Gráinne Murphy, Caroline Matson or your usual ByrneWallace contact. 

Please note that the content of this summary does not amount to professional advice. Legal advice should be sought in respect of specific queries. This update is provided on the basis of information available as at 8 November 2024.