EUROPEAN COMMISSION Brussels, 15.11.2022 COM(2022) 641 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 2022 report on the achievement of the 2020 energy efficiency targets



2022 report on the achievement of the 2020 energy efficiency targets 1.Introduction and overview The Energy Efficiency Directive 2012/27/EU (EED) and the Energy Performance of Buildings Directive 2010/31/EU (EPBD), both respectively amended by Directive (EU) 2018/2002 and Directive (EU) 2018/844, form a key part of the European Union (EU) climate and energy legislation, setting the EU’s energy efficiency targets and laying the foundation for measures to realise the full energy efficiency potential of the EU economy. The EED requires all EU Member States to implement policy measures to improve energy efficiency throughout the different stages of the energy chain, from production to final consumption. These efforts are key to achieve the EU’s energy efficiency targets and an essential contribution to the decarbonisation of the EU economy by 2050. The EU’s energy efficiency target for 2020 (Article 3 of the EED) corresponds to a 20% reduction in the EU’s primary and final energy consumption by 2020 compared to the energy consumption projected in the 2007 PRIMES scenario for 2020. In terms of primary energy consumption (PEC) this target results in a consumption level of 1312 Mtoe and for final energy consumption (FEC) it amounts to 959 Mtoe. The EPBD contains a broad range of policies and supportive measures aiming to increase the currently low renovation rates of the existing building stock. In particular, Article 2a of the EPBD requires Member States to establish comprehensive long-term renovation strategies to mobilise investment for the decarbonisation of national building stocks by 2050 (with indicative milestones for 2030, 2040 and 2050); and to support the transformation towards a highly efficient and decarbonised building stock by 2050. Article 5 requires the Member States to set cost-optimal minimum energy performance requirements for new buildings and for existing buildings undergoing major renovation. Article 9 states that all new buildings must be nearly zero-energy buildings (NZEBs) by 31 December 2020 (and after 31 December 2018 for all new public buildings). Article 27 of Regulation 2018/1999 on the Governance of the Energy Union and Climate Action (Governance Regulation), requires Member States to report to the Commission, by the 30 April 2022, the information set out in Part 2 of Annex IX of this Regulation. As regards the EED, this includes the progress towards Article 3 on the energy efficiency targets, Article 5 on the exemplary role of public bodies’ buildings, Article 7 on energy savings obligation and Article 8 on energy audits. Additionally, as regards the EPBD reporting is required under Article 9 on new and renovated nearly zero-energy buildings. In addition, Article 21 of Regulation 2018/1999 requires that the integrated national energy and climate plans (NECPs) progress reports include the indicative milestones of the long-term renovation strategy and specify how they contribute to achieving the EU's energy efficiency targets, as well as the relevant policies and measures presented in the long-term renovation strategies. Information is required on cost-optimal levels of minimum energy performance standards resulting from national calculations, in accordance with Annex I, Section B of Regulation 2018/1999 and the number and floor area of new and renovated NZEBs, in accordance with Annex IX of Regulation 2018/1999. This report analyses the information provided by the Member States in their reports and complements it with Eurostat data. Additionally, it analyses the assessment of the national long-term renovation strategies and the cost-optimal reports submitted by Member States to the Commission. For the 2022 reporting obligation, all 27 Member States submitted their reports. However, the report from Hungary does not contain any information on energy efficiency and the reports from Romania and Croatia are considered very incomplete. 2.Progress towards the 2020 energy efficiency targets – Article 3 of the EED In the period from 2005 to 2020, the EU energy consumption has followed a general downward trend, as shown in Figure 1. This decrease in energy consumption was accompanied by an overall drop in energy intensity and energy consumption per capita. In 2020, the EU targets for PEC and FEC were overachieved, amounting to 1 236 Mtoe and 907 Mtoe respectively. It should be noted that the 2020 PEC and FEC values were significantly influenced by the COVID-19 crisis and the lockdown measures imposed by national authorities, which significantly restricted overall activity and consequently reduced the energy demand. Nevertheless, the 2019 values (i.e. before the impact of COVID-19 pandemic in the EU) already indicated a decreasing trend in energy consumption despite the fact that 2019 PEC and FEC values were above the 2020 target, 1 354 Mtoe and 986 Mtoe respectively. Figure 1: Final and primary energy consumption trends of the EU27 (the line represents the trajectory between 2005 consumption and the 2020 consumption and the dots represent the 2020 PEC and FEC targets) Source: Joint Research Centre (JRC) based on Eurostat data, Dataset of April 2022. Figure 2 identifies the drivers that allowed compliance with the 2020 PEC target through an additive decomposition of the 2014-2020 changes in the EU27. After a period of slight rebound in energy consumption in 2014-2017, primary energy intensity started to compensate economic growth in 2018. However, consumption only decreased below 2013 figures in 2020 – due to the combined effect of the economy drop (6%) caused by the pandemic crisis and the continuous improvement in primary energy intensity (3%), which reflects the impacts of EU energy and climate policies and legislation. Figure 2: Contribution of different effects to the variation in PEC in the EU27 in 2014-2020 Source: JRC based on Eurostat data, Dataset of April 2022. The pandemic crisis provoked a decrease in PEC and FEC in every Member State in 2020. Drops in PEC ranged from 15% (Malta) to 1% (Lithuania). Figure 3 shows the contribution of different effects to the variation in PEC in the EU27 and Member States from 2019 to 2020. In this period, the exceptional drop of the economy was a determinant factor for energy consumption reduction, in all but two Member States, Ireland and Lithuania. Improvements in final energy intensity also contributed to reduce PEC by approximately 2% in the EU27 collectively and in most Member States. In Ireland and Malta, improvements in final energy intensity contributed to a decrease in energy consumption of 15%. However, there were exceptions in Bulgaria, Czechia, Croatia, Romania, Hungary and Sweden, where it increased by up to 3%. A warmer winter in 2020 than in 2019 also slightly reduced demand.

Figure 3: Contribution of different effects to the variation of PEC in the EU27 and individual Member States in 2019-2020 Source: JRC based on Eurostat data, Dataset of April 2022. As regards FEC, variations in trends are appreciated by sector. Overall FEC fell by 8.0% between 2019 and 2020, after a consistent increase in 2014-2018. In 2020 all the Member States had a decrease in FEC in the transport sector and a stable (change within the range of ±1%) or downward FEC in the service sector. As depicted in Table 1, the FEC pattern for industry and households varied between the Member States. Table 1: Trends in consumption in key sectors at national level in 2019-2020 MS Final Energy Total Industry Transport Households Services BE ↘ ↘ ↘ → ↘ BG ↘ ↘ ↘ ↗ ↘ CZ ↘ → ↘ ↗ ↘ DK ↘ ↗ ↘ ↘ ↘ DE ↘ ↘ ↘ → ↘ EE ↘ ↘ ↘ → → IE ↘ ↘ ↘ ↗ → EL ↘ ↘ ↘ → ↘ ES ↘ ↘ ↘ → ↘ FR ↘ ↘ ↘ ↘ ↘ HR ↘ → ↘ ↗ ↘ IT ↘ ↘ ↘ ↘ ↘ CY ↘ ↗ ↘ → ↘ LV ↘ ↗ ↘ ↘ ↘ LT ↘ ↘ ↘ → ↘ LU ↘ ↘ ↘ ↗ ↘ HU ↘ → ↘ ↗ ↘ MT ↘ ↗ ↘ ↗ ↘ NL ↘ → ↘ ↘ ↘ AT ↘ ↘ ↘ → ↘ PL ↘ ↘ ↘ → ↘ PT ↘ ↘ ↘ ↗ ↘ RO ↘ → ↘ ↗ ↘ SI ↘ ↘ ↘ ↗ ↘ SK ↘ ↘ ↘ ↗ ↘ FI ↘ ↘ ↘ ↘ ↘ SE ↘ ↗ ↘ ↘ → EU ↘ ↘ ↘ → ↘ Source: JRC based on Eurostat data, Dataset of April 2022. For the residential sector, the exceptional situation of the pandemic crisis led to a slight increase in the FEC, due to lockdowns and teleworking. Figure 4 shows that the combined impact of weather and wealth effects offset both the overall positive population and intensity effects at EU level in the residential sector. Warmer winter conditions in 2020 (compared to 2019) limited consumption in all Member States except in Bulgaria, Czechia, Ireland, Croatia, Hungary, Slovenia, Slovakia, Poland, Greece, Austria and Romania. The wealth effects linked to growth of per capita floor area and disposable income exerted an opposite force in half of the Member States, driving consumption up in Belgium, Czechia, France, Ireland, Lithuania, Latvia, Luxembourg, The Netherlands, Austria, Poland, Slovenia, Slovakia, Finland, and Sweden. Intensity gains drove up consumption in all Member States except Czechia, Latvia, Austria, Poland and Slovakia. Figure 4: Contribution of different effects to the variation of residential FEC in 2019-2020 Source: Eurostat, JRC and Odyssee-Mure, 2022. The increase in FEC in the residential sector was significantly offset by a decrease in FEC in the transport sector. For the transport sector, the decrease in FEC was driven by the activity effect, mainly as a result of transport restrictions due to the pandemic, which significantly reduced passenger transport volumes.

As depicted in Figure 5, for the industry and service sectors, the employment effect and the number of hours worked drove the decrease of FEC for the EU in 2020. With the employment effect being the most important driver behind the decrease in the Member States’ energy consumption. By contrast, the intensity factor contributed to an increase in FEC in the productive sectors. These results can be explained by the exceptional circumstances of COVID-19 pandemic crisis. Even if the Member States handled the COVID-19 crisis in relatively different ways, it remains possible that lockdowns led to a drastic reduction in working hours as well as an increase in unemployment, even if only temporarily. The structural effect results highlight a shift from sub-sectors of higher energy intensity towards sub-sectors of lower intensity in eight Member States, Bulgaria, Czechia, Estonia, France, Italy, Cyprus, Luxembourg and Slovakia. Finally, the intensity effect inhibited FEC for nine Member States, Belgium, Denmark, Estonia, Greece, Luxembourg, the Netherlands, Poland, Romania and Finland. By contrast, the other Member States experienced an increase in FEC per value added in monetary terms. Figure 5: Contribution of different effects to the variation of the productive sectors FEC in 2019-2020 Source: Eurostat, JRC, Dataset of April 2022. 3.Progress towards the 2030 energy efficiency targets When analysing the progress towards the 2030 targets, the EU FEC and PEC in 2020 were 7.2% and 9.6% above the 2030 target levels, respectively. The 2030 target level represents a reduction of 32.5% compared to the 2007 Reference Scenario. In 2020, the pace of decline towards the 2030 targets appeared to be sufficient for both PEC and FEC, mainly due to the contingent situation caused by the COVID-19 pandemic. Far more efforts are needed in order to achieve a structural reduction in energy consumption and to avoid rebound effects following the phasing out of the COVID-19 pandemic’s effects on national economies. As Figure 6 shows, the Commission proposed an EU target for 2030 of 9% reduction compared to the 2020 reference scenario as part of its July 2021 proposal for a recast of the EED. This is equivalent to a reduction of 36% for FEC and 39% for PEC compared to the 2007 reference scenario, and this in turn equates to 1 023 Mtoe for PEC and 787 Mtoe for FEC. This target was further increased to 13% by the REPowerEU package, adopted in May 2022, which would correspond to a maximum energy consumption in the EU of 980 Mtoe for PEC and 750 Mtoe for FEC. Figure 6: Reduction of PEC and FEC compared to REF2007 scenario projections

9% compared to REF 2020 13% compared to REF 2020 Source: European Commission, Directorate-General for Energy, 2022. 4.Achievement of the 2020 energy efficiency targets per Member State Table 2 provides an overview of PEC and FEC targets. 24 out of the 27 Member States achieved their 2020 PEC target, while 21 achieved their 2020 FEC target. The magnitude of the underachievement was in general low. Only Bulgaria and Belgium missed their PEC or FEC targets. Excluding Lithuania, which underachieved FEC by 19%, the underachievement is on average 0.9% for missed PEC target and 6.7% for FEC. Table 2: Achievement of FEC and PEC targets per Member State MS PEC PEC Target % Achieved PEC FEC FEC Target % Achieved FEC BE 43.9 43.7 99.6% 33.3 32.5 97.6% BG 17.2 16.9 98.1% 9.5 8.6 90.6% CZ 37.5 44.3 118.2% 24.5 25.3 103.4% DK 15.3 17.5 114.3% 13.1 15.2 115.4% DE 262.3 276.6 105.4% 201.7 194.3 96.4% EE 4.3 5.5 127.5% 2.8 2.9 105.4% IE 13.4 13.9 103.5% 11.2 11.7 104.7% EL 19.2 24.7 128.4% 14.5 18.4 127.3% ES 105.0 123.4 117.5% 73.8 86.3 117.0% FR 208.4 226.40 108.6% 130.1 137.9 106.0% HR 7.8 10.7 137.9% 6.5 7.0 107.6% IT 132.3 158.0 119.4% 102.7 124.0 120.7% CY 2.2 2.2 101.6% 1.6 1.9 121.8% LV 4.3 5.4 126.0% 3.9 4.5 115.9% LT 6.2 6.5 104.4% 5.3 4.3 81.0% LU 3.9 4.5 113.9% 3.8 4.2 111.2% HU 23.9 26.6 111.4% 18.0 18.2 101.1% MT 0.7 0.8 111.1% 0.5 0.6 116.4% NL 58.4 60.7 103.9% 45.5 52.2 114.7% AT 29.7 31.5 106.1% 26.1 25.1 96.2% PL 96.9 96.4 99.5% 71.1 71.6 100.6% PT 19.5 22.5 115.1% 15.0 17.4 115.8% RO 30.9 43.0 139.1% 23.5 30.3 128.9% SI 6.1 7.1 115.8% 4.4 5.1 116.6% SK 15.2 16.4 108,0% 10.4 10.4 100.2% FI 29.9 35.9 120,0% 23.3 26.7 114.5% SE 41,7 43,4 104,1% 30.9 30.3 97.8% Source: JRC based on Member States’ reporting, Eurostat, Dataset April 2022. 5.Exemplary role of public bodies’ buildings – Article 5 of the EED Article 5(1) of the EED requires Member States to ensure yearly renovations, as from 1 January 2014, of 3% of the total floor area of heated and/or cooled buildings owned and occupied by their central government and not in compliance with minimum energy requirements. The aim is for Member States to at least meet the minimum energy performance (MEPS) set by Article 4 of the EPBD. Alternatively, Member States may opt for an alternative approach (under Article 5(6) of the EED) and by 2020 achieve energy savings that are equivalent to or greater than those that Article 5(1) requires for the same building stock. Tables 3 and 4 provide a summary of the latest progress made by the Member States in connection with Article 5(1), for the default and the alternative approach, respectively. Table 3: Implementation status of Article 5 of the EED by Member States which chose the default approach Member State Central government buildings with floor area > 250 m2 in 1 January 2021 Article 5. annual requirement Article 5 progress in 2020 All [m2] Non-compliant with MEPS

[m2] Floor area renovation obligation [m2] Renovated floor area

[m2] Annual obligation achieved in 2020 in terms of floor area [%] Sum of savings in 2014-2020 Total renovated floor area over the period 2014-2020 Total obligation achieved in 2014-2020 in terms of floor area [%] BG 2 571 112 1 761 062 54 903 91 796 167.2% n.a. 480 595 59.3% EE 1 386 400 853 951 26 600 9 471 35.6% n.a. 209 041 105.4% EL 212 725 200 725 6 030 0 0.0% 0,25 12 000 27.7% ES 11 273 677 9 198 323 279 902 304 763 108.9% n.a. 1 930 977 95.7% HU n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. IT 16 485 850 13 401 778 404 023 89 180 22.1% n.a. 3 107 612 99.6% LT n.a. 1 996 799 62 541 2 720 4.3% n.a. 504 249 113.8% LU 126 253 61 050 1 832 0 0.0% n.a. 23 013 148.9% LV 1 862 320 1 862 320 53 550 98 102 183.2% n.a. 409 659 91.9% PT 4 478 805 849 415 24 967 3 107 12.4% n.a. 28 034 27.2% RO n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. SI 957 014 890 992 24 822 2 528 10.2% 0.33 59 717 n.a. Source: JRC based on Member States’ reporting, Eurostat, Dataset April 2022. Table 4: Implementation status of Article 5 of the EED by Member States which chose the alternative approach Member State Central government buildings with floor area > 250 m2 in 1 January 2021 Article 5. annual requirement Article 5 progress in 2020 All

[m2] Non-compliant with MEPS

[m2] Annual energy savings obligation

[ktoe] Savings achieved

[ktoe] Annual obligation achieved in 2020 in terms of energy savings [%] Sum of savings in 2014-2020 Total renovated floor area over the period 2014-2020 Total obligation achieved in 2014-2020 in terms of floor area [%] AT n.a. 750 000 0.15 0.89 593.3% 4.90 n.a. 478.9% BE n.a. n.a. 0.11 1.13 1054.8% 8.42 n.a. 1119.2% CY n.a. n.a. 0.11 0.17 153.3% 1.78 n.a. 97.8% CZ 2 405 077 1 599 209 0.49 0.60 121.4% 7.60 n.a. 219.6% DE 2 900 000 (2019) n.a. 0.61 (2019) 5.58 (2019) 909% (2019) 83.996 (2014-2019) n.a. 2128% (2014-2019) DK n.a. 988 782 0.38 0.80 210.5% 4.20 n.a. 157.9% FI n.a. 2 195 943 0.09 0.14 156.4% 1.55 n.a. 206.1% FR n.a. 22 200 000 35.55 98.02 275.7% 764.40 n.a. 307.2% HR n.a. n.a. 0.12 0.00 0.0% 4.07 n.a. 497.9% IE n.a. 335 954 0.16 0.77 478.8% 4.24 n.a. 378.2% MT 167 166 49 715 n.a. 0.02 n.a. 0.04 n.a. n.a. NL n.a. n.a. 4.18 1.87 44.7% 185.90 n.a. 635.4% PL n.a. n.a. 0.37 0.58 155.3% 3.22 n.a. 123.2% SE n.a. 86 871 0.24 -3.71 0.0% 1.57 n.a. 83.7% SK n.a. 1 339 616.22 4.49 10.63 236.9% 43.22 n.a. 160.6% Source: JRC based on the reports by Member States, 2022

6.Energy savings obligation – Article 7 of the EED Article 7 of the EED refers to Member States’ obligation to, inter alia, provide the cumulative amount of energy savings achieved in 2019 and 2020 in order to assess whether their energy savings obligation for the 2014-2020 period have been fulfilled. As Table 5 shows, the cumulative energy savings in 2014-2020 in 24 Member States amounted to 197.4 Mtoe – i.e. 103% of the sum of the cumulative end-use energy savings obligations for 2014-2020 (191.7 Mtoe) for those 24 Member States. This is equivalent to 97.5% of the sum of the cumulative end-use energy savings obligations for the 2014-2020 period (202.5 Mtoe) for the 27 Member States. Depending on the final figures for the remaining three Member States, the total cumulative savings target for the 27 Member States as a whole could have been met . Out of the 24 Member States that submitted data regarding their final achievement, 14 Member States met their energy savings obligation. Seven Member States – Austria, Cyprus, Denmark, Estonia, Finland, Ireland, and the Netherlands – overachieved their energy savings obligation by more than 20%, with Austria, Denmark and Finland overachieving it by more than 50%. Six Member States – France, Latvia, Lithuania, Malta, Slovakia and Sweden – overachieved their energy savings obligation by 5 to 18%. Belgium met its energy savings obligation with a margin of about 1%. Ten Member States have not met their energy savings obligation, with four, Bulgaria, Italy, Slovenia and Spain, missing their energy savings obligation by less than 10%. Germany missed its energy savings obligation by about 12%. Four Member States – Czech Republic, Greece, Poland and Portugal – missed their energy savings obligation by 25 to 30%. Luxembourg missed its energy savings obligation by about 48%. Table 5: Cumulative energy savings over 2014-2020 reported by the Member States – compared to the amount of cumulative energy savings required in 2014-2020 under Article 7 of the EED (in ktoe) REPORTED cumulative energy savings over 2014-2020 REQUIRED cumulative energy savings over 2014-2020 % of achievement Austria 10 309 5 200 198% Belgium 6 815 6 759 101% Bulgaria 1 785 1 942 92% Croatia 1 296 Cyprus 325 242 134% Czech Republic 3 459 4 882 71% Denmark 5 821 3 841 151% Estonia 790 610 130% Finland 7 831 4 213 186% France 35 757 31 384 114% Germany 36 812 41 989 88% Greece 2 450 3 333 73% Hungary 4 001 Ireland 2 627 2 164 121% Italy 23 239 25 502 91% Latvia 898 851 106% Lithuania 1 115 1 004 111% Luxembourg 267 515 52% Malta 78 67 116% Netherlands 16 043 11 512 139% Poland 10 473 14 818 71% Portugal 1 885 2 532 74% Romania 5 511 Slovakia 2 550 2 284 112% Slovenia 913 945 97% Spain 15 207 15 979 95% Sweden 9 940 9 114 109% TOTAL 197 389 * 202 489 97.5% * * Total for 24 Member States Source: information reported by Member States and supplemented by the Commission’s calculations and estimates where necessary. It is important to underline that energy efficiency obligation systems (EEOS) contribute around 33% of the energy savings achieved by each type of implemented policy measure, whereas financing schemes contribute around 14%. Taxes on energy and CO2 account for 17% of total achieved energy savings (see Figure 7 below). Figure 7: Share of reported cumulative energy savings by type of policy measure (left) and distribution of the number of policy measures per type of policy measure (right) at EU level Source: European Commission (Directorate-General for Energy) calculations based on the data submitted by the Member States in 2022 on the policy measures reported under Article 7(1) EED for 2014-2020 and the cumulative energy savings reported for 2014-2020 (data available for 24 Member States).

On the sectors targeted by the implemented policy measures under Article 7 of the EED, the largest share of energy savings reported by Member States results from cross-cutting measures, which cannot be attributed to a single sector, as observed in Figure 9. Most policy measures, by count of policy measures reported under Article 7(1) of the EED, target services and industry (which cover most companies, except for transport companies) and the public sector (except for the housing owned by public bodies, which is included in the private households sector). Figure 8: Share of reported cumulative energy savings by sector at EU level (data for 24 Member States) Source: European Commission (Directorate-General for Energy) calculations based on the data submitted by the Member States in 2022 on the cumulative energy savings reported for 2014-2020 (data available for 24 Member States). Table 6, provides the list of the top 3 measures per Member State, showing which policy measures brought the largest shares of cumulative energy savings for each Member State. In their reporting, Member States submitted updated lists of the policy measures they reported under Article 7(1) of the EED for the 2014-2020 period. In total, 498 measures were reported , of which 40 were reported for the first time. It is worth nothing that new EEOS were not reported, although some are planned for the 2021-2030 period. Table 6: Overview of the top three measures per Member State (based on the cumulative energy savings in 2014-2020 reported for each policy measure) Member State* Top 3 policy measures per Member State (per decreasing order of cumulative savings) Cumulative energy savings 2014-2020 % of the Member State’s cumulative savings Austria Energy taxation 3809 37% Energy efficiency obligation scheme for energy suppliers 3068 30% Provincial support for housing construction, energy support and environmental support, and private sector renovation vouchers 1440 14% Belgium Flanders: Energy policy agreements with companies 2950 43% Flanders: Public service obligations for rational energy use imposed on network operators (REG) 1184 17% Wallonia: Branch agreements 2 (AdB) 1116 16% Bulgaria Energy Efficiency Obligation Schemes from Derogation on article 7 (8) of the EED - previous scheme for obligations in the period 2011-2013 780 44% Energy Efficiency Obligation Schemes 451 25% National Program for energy efficiency in multifamily residential buildings (2016-2020) 271 15% Cyprus Transport fuel taxes 278 85% Minimum energy performance requirements in buildings prior to the transposition of Directive 2010/31/EU. 19 6% Grant Scheme «Saving Energy – Upgrading of Households». 13 4% Czech Republic Sustainable Development Strategic Framework – Improvement of technological processes 1371 40% New Green Savings Programme 2014-2020 (MoE) 320 9% Operational Programme for Entrepreneurship and Innovation 2007-2013 (MIT) 298 9% Denmark Energy efficiency obligation scheme 5821 100% Estonia Excise and value added tax of diesel fuel and light fuel oil 169 21% Renewable energy fee 94 12% Excise and value added tax of gasoline 86 11% Finland Energy Efficiency Agreements 2868 37% Transport fuel taxation/car traffic 1761 22% Heat pumps for detached and terraced houses 923 12% France White certificates scheme (CEE) 35757 100% Germany Energy and electricity tax 12205 33% Energy Savings Ordinance (existing buildings) 7543 20% KfW support programmes for energy-efficient construction and renovation 4140 11% Greece Energy Efficiency Obligation Schemes 578 24% Oil products specific consumption tax 536 22% Replacing old private passenger vehicles 463 19% Ireland EEOS 1185 45% 2005 / 2008 Building Regulations - Buildings other than dwellings 402 15% VRT/Motor tax aligned with emissions 240 9% Italy Tax reductions 10394 45% White Certificates 8392 36% Enterprise 4.0 Plan 1830 8% Latvia Energy taxes 359 40% Implementation of measures identified as a result of energy audits of large companies and major electricity consumers 168 19% Climate change financial instrument project competitions 116 13% Lithuania Transport fuel taxation 473 42% Programme for the renovation (modernisation) of multi-apartment buildings 251 22% Agreements with energy companies 162 15% Luxembourg Energy Efficiency Obligation Scheme 267 100% Malta Financing schemes and instruments and fiscal incentives 45 58% Regulations and Voluntary Agreements 25 32% Progressiveness of the domestic residential household tariff system and the eco-reduction mechanism. 4 5% Netherlands Policies targeted at households 6794 42% Energy Investment Allowance (EIA) 5238 33% Long Term Agreement big industry (MEE), excl. Refineries 2892 18% Poland White certificates scheme 9159 87% Thermomodernisation Fund 662 6% Fuel tax 355 3% Portugal NEEAP measures not reported separately 864 46% SGCIE - Management System of Intensive Energy Consumption 362 19% Programme to support the use of public transport. 210 11% Slovakia Voluntary Energy Saving Agreement, Contractual relationship with the Ministry of Economy of the Slovak Republic, Own resources 653 25% Improvement of the thermal and technical properties of buildings (EHB), Apartment buildings, Own resources 524 20% Application of legislative measures, Mandatory energy audits in industrial enterprises, including management 164 6% Slovenia EEO scheme: the obligation on energy suppliers to provide proof of energy-saving operations 512 56% Energy efficiency measures financed from the supplement to energy price payed by all final energy users (financed through the Slovenian ECO Fund - Eko sklad) 401 44% Spain Law 15/2012 on taxation measures for energy sustainability 2947 19% Programmes implemented by the Autonomous Communities (MENAE) 2534 17% Programme to promote industrial competitiveness 1613 11% Sweden Energy and CO2 tax 9940 100% * Croatia, Hungary and Romania are not included in this table because they have not reported the cumulative savings they made in 2014-2020. Source: information reported by Member States and supplemented by Commission’s calculations and estimates where necessary. 7.Energy audits and energy management systems – Article 8 of the EED Article 8 of the EED requires companies that are not small or medium enterprises to carry out an energy audit or to implement an energy management system at least once every four years. In their 2022 reporting, Member States were required to state the total estimated number of large companies in their territory to which Article 8(4) of the EED is applicable and the number of energy audits carried out in those enterprises. Figure 9 provides an overview of the 2020 notifications submitted by 23 Member States. Figure 9: Energy audits carried out in large companies in 2020 Source: information reported by Member States. The reported number of large companies differs from the number of energy audits on large companies, because such energy audits are not required every year, but only once every four years as a minimum. In addition, given the circumstances of the COVID-19 pandemic, several companies postponed their energy audits. 8.Long-Term Renovation Strategies (LTRS)

Article 2a of the EPBD requires Member States to submit their LTRS by March 2020. The Commission has analysed the national strategies with a view to sharing best practices between the Member States. The national strategies and the Commission’s assessment were a key contribution to the national Recovery and Resilience Plans in which energy-efficient buildings renovation features prominently. The great majority of 2020 strategies include a good overview of policies targeting public buildings and provide a long-term roadmap towards the 2050 goal of decarbonising the building stock. Most of these roadmaps include specific intermediate milestones for 2030 and 2050, and to a lesser extent for 2040. As the Renovation Wave Communication indicates, policies and measures tackling energy poverty and worst performing buildings deserve specific attention. A majority of Member States have recognised the importance of the issue and in general presented several actions and measures to tackle energy poverty. Different approaches have been chosen to identify worst performing buildings to be targeted (e.g. energy class, age and energy consumption). All 2020 LTRS contain a specific section presenting expected energy savings, wider benefits related to health and indoor air quality and positive economic impacts. However, half of the Member States did not quantify these potential benefits. The strategies generally comply with the requirements of the EPBD, but the Commission’s analysis highlights the fact that not every LTRS is sufficiently ambitious towards the 2050 decarbonisation goals. The Commission’s analysis of the 2020 LTRS recognises that since the first round of LTRS (first submission in 2014 followed by updates in 2017), the quality of the strategies has improved, but underlines the need for a more uniform approach, supported by guidelines and harmonised templates. The differences in Member States' approaches when setting national milestones make it difficult to assess the ambition at EU level. Most Member States provided absolute values for CO2 emissions in buildings in 2030, 2040 and 2050, including a reference emissions value used to estimate the relative reduction. However, inconsistencies between the Member States suggest that a direct comparison of their greenhouse gas reduction ambitions may be misleading. Table 7 summarises the indicative renovation milestones for the buildings stock for 2030, 2040 and 2050 as reported by the Member States in the 2020 LTRSs Table 7: Renovation rates reported in national long-term renovation strategies Member State Completed renovation Planned renovation 2020 2030 2040 2050 Austria 1.5% p.a. 1.5% p.a. 1.5% p.a. 1.5% p.a. Belgium – Brussels less than 1% p.a. 100% public buildings energy neutral 80% cumulative residential Belgium – Flanders 3.5% p.a. residential 105 000 dwellings 3% p.a. residential 32% cumulative 973 500 dwellings 3% p.a. residential 64% cumulative 1 923 500 dwellings 3% p.a. residential 96.5% cumulative 2 873 500 dwellings Belgium – Wallonia 12% cumulative residential (194 571 buildings) 63 400 000 m2 cumulative non-residential 51% cumulative residential (830 158 buildings) 114 000 000 m2 cumulative non-residential 99% cumulative residential (1 605 485 buildings) (25% deep renovated 399 103) 114 000 000 m2 cumulative non-residential Bulgaria 8% (22 203 509 m2) cumulative floor area 26% (71 774 177 m2) cumulative floor area 46% (127 597 192 m2) cumulative floor area Cyprus 1% cumulative buildings 1% p.a. 10% cumulative (43 000) 1% p.a. 1% p.a. Czechia 45% cumulative buildings with more than 25% shallow renovation 1.4% p.a. SFH, 0.79% p.a. MFH; 2% p.a. public buildings 55% cumulative 1.4% p.a. SFH, 0.79% p.a. MFH; 2% p.a. public buildings 60% cumulative 1.4% p.a. SFH, 0.79% p.a. MFH; 2% p.a. public buildings 70% cumulative Germany 1.3% to 2% p.a. SFH and 1.5% to 2% p.a. MFH for the period 2020-2030 Denmark 80% renovated (55-60% light, 20-25% medium, 5% deep) Estonia 500 000 m2 cumulative floor area 22% cumulative (11 880 000 m2) 64% cumulative (34 560 000 m2) 100% cumulative (54 000 000 m2/ 141 000 buildings) Greece 23% residential 9% non-residential 36-42% residential; 14-16% non-residential 45-49% residential; 19-20% non-residential; Spain 56 017 cumulative dwellings 1 256 017 cumulative dwellings (300 000 dwellings/year) 4 756 017 cumulative dwellings 7 156 017 cumulative dwellings Finland 29% cumulative buildings 54% cumulative 98% cumulative 100% cumulative France 1.5% to 3% p.a. over 2020-2050 Croatia 0.7% p.a. 5% cumulative buildings 3% p.a. 3.5% p.a. (4% p.a. buildings with cultural value) 60% cumulative NZEBs 4% p.a. 100% cumulative NZEBs Hungary 1% p.a. 3% p.a. residential; 5% p.a. public buildings 20% cumulative NZEBs 3% p.a. residential; 5% p.a. public buildings 60% cumulative NZEBs 3% p.a. residential; 5% p.a. public buildings 90% cumulative NZEBs Ireland 500 000 dwellings cumulative 100% public buildings 33% commercial buildings 1 000 000 dwellings cumulative 66% commercial buildings 1 500 000 dwellings cumulative 100% commercial buildings Italy 0.86% p.a. 1.9% p.a. residential; 2.8% p.a. non-residential 2.7% p.a. residential; 2.6% p.a. non-residential 2.7% p.a. residential; 2.6% p.a. non-residential Lithuania 8% cumulative buildings 17% cumulative (99 281 units) 43% cumulative (225 421 units) 74% cumulative (436 008 units) Luxembourg 10-14% cumulative residential buildings 3% p.a. residential (4 500 dwellings/year) 3% p.a. residential (4 500 dwellings/year) 3% p.a. residential (4 500 dwellings/year) Latvia 3% (678 460 m2) cumulative public buildings 8 100 units MFH (30%) and 7 500 units SFH 500 000 m2 public buildings 16 200 units MFH (60%) cumulative 3% per year public building All NZEBs Malta 0.5% p.a. (0.7% p.a. 2025) 5-6% p.a. residential (0.6% deep renovation) from 2025 5-6% p.a. residential (0.6% deep renovation) 5-6% p.a. residential (0.6% deep renovation) Netherlands 1 500 000 dwellings Poland 3.6% p.a. 236 000 cumulative buildings 4.1% p.a. 507 000 cumulative buildings 3.7% p.a. 751 000 cumulative buildings Portugal 69% cumulative buildings (363 680 501 m2) 99% cumulative buildings (635 637 685 m2) 100% cumulative buildings (747 953 071 m2) Romania 0.5% p.a. 6% cumulative floor area (32 352 000 m2) from 0.5% to 3.39% p.a. in 2030 19% cumulative floor area 3.79% p.a. 57% cumulative floor area 4.33% p.a. 100% cumulative floor area Sweden 2.5%- 5% p.a. 2016-2019 10% p.a. after 2019 Slovenia 1 795 000 m2 cumulative public buildings 29 733 000 m2 cumulative 28 850 600 m2 cumulative SFH 12 778 700 m2 cumulative MFH 32 549 000 m2 cumulative SFH (74%) 13 924 700 m2 cumulative MFH (91%) Slovakia 100% cumulative MFH 100% cumulative SFH Source: JRC 2022 based on information reported by Member States. As Table 7 shows, renovation target indicators are not standardised across the EU. 14 Member States provided absolute values for the number of planned renovations of buildings/dwellings or for renovated floor area (in square metres). By contrast, 13 Member States expressed the renovation targets in terms of annual renovation rate. Three Member States provided only the cumulative share of renovated buildings. 19 Member States covered both the residential and the non-residential sector, but some Member States focused on the residential sector or on specific segments within the non-residential sector (e.g. commercial buildings or public buildings). The annual renovation rate planned for the next decades varies from as low as 1% to 6%. Some Member States (Estonia, Croatia, Latvia, Portugal, Romania and Finland) aim to renovate their entire building stock by 2050, while other Member States (Bulgaria, Greece, Cyprus and Austria) plan to renovate less than half of their building stock by 2050. It is also important to recall that the impact of energy renovations is heavily dependent on the depth of the renovation and this is often not comparable or is not specified in the national strategies. Nonetheless, the available information is sufficient to conclude that most Member States are aiming to increase their annual building stock renovation rate by an average of 1.5% to 3%. The Commission’s analysis reveals that not every LTRS is sufficiently ambitious towards the 2050 decarbonisation goals and that more efforts, resources and sustainable solutions will be necessary in order to prepare for climate change and contribute to climate neutrality in line with the European Green Deal . 9.Nearly Zero-Energy Buildings In accordance with Article 9 of the EPBD, NZEBs became the new building standard in the Member States by 31 December 2020 (and after 31 December 2018 for all new public buildings) NZEB performance requirements have progressively increased over the last decade and make an important contribution to the decarbonisation of the EU’s building stock The Member States have established national NZEB definitions and provided numerical indicators for primary energy use expressed in kWh/(m2y) that appear on average less ambitious than the benchmarks presented in the Commission’s 2016 Recommendation, noting that a direct comparison of national definitions is not always possible because the Member States’ approaches vary due to differences in their specific climate, market, energy mix, construction traditions and other local conditions. The average renewable share is estimated at between 20% and 50% of overall building energy needs and is projected to increase due to the need to accelerate the phasing out of fossil fuels in accordance with the Renovation Wave and the REPowerEU. More than half of the Member States have an energy performance class corresponding to the NZEB level. Some Member States draw a distinction in the energy performance level between residential and non-residential NZEBs, but others distinguish between new and existing NZEBs. Table 8: Number and floor area of new and renovated NZEBs