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10 April 2024

The effects of the new directive on energy efficiency in buildings

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In March, the European Parliament adopted the text of the new Energy Performance of Buildings Directive (EPBD), which supports the decarbonisation of the building sector with a particular focus on the existing housing stock. Let's take a look at its effects on the air conditioning and refrigeration sector.

In March, the European Parliament adopted the text of the new Energy Performance of Buildings Directive (EPBD), which supports the decarbonisation of the building sector with a particular focus on the existing housing stock. This directive affects all EU member states and obliges them to transpose its measures into national law by March 2026. The overall objectives of the directive are the decarbonisation of the building sector (heating and cooling); doubling the upgrading rate of existing buildings; improving information on the performance of buildings; and increasing the replacement of the boiler stock.

The text does not consider the prohibition of gas boilers in any case, nor does it establish the obligation to replace them with heat pumps or other electrified alternatives, as explained by the sector. It proposes to phase out independent fossil fuel-fired boilers and, as a first step, from 2025 onwards no financial incentives should be granted for the installation of fossil fuel-fired boilers, except for those selected for investment before 2025 under the Recovery and Resilience Mechanism.

Furthermore, hybrid systems will not be considered as fossil heating systems. It should continue to be possible to provide financial incentives for the installation of hybrid heating systems with a significant share of renewable energy, such as those resulting from combining a boiler with solar thermal or a heat pump. The target of eliminating the use of fossil fuels by 2040 does not imply any binding ban, as the EPBD does not make the use of heating systems illegal beyond 2040.

Fossil fuels

The EU Commission is working on a non-legally binding guideline for the definition and clarification of the term "fossil fuel boiler" to enable the end of the use of fossil fuels without banning combustion technology. Thus, the renewable character of heating systems should not be determined by the technology used, but by the nature of the fuel used.

For residential buildings there is no "obligation to upgrade". Instead, member states should take measures to reduce primary energy consumption by at least 16% by 2030 and 20-22% by 2035. 55% of the energy savings should be achieved through overhauling the least efficient buildings.