COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Directive of the European Parliament and the Council on the energy performance of buildings

2001/0098 (COD)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Directive of the European Parliament and the Council on the energy performance of buildings

1- BACKGROUND

Date of transmission of the proposal to the EP and the Council (document COM(2001) 226 final - 2001/0098(COD)): // 11 May 2001

Date of the opinion of the Economic and Social Committee: // 17 October 2001

Date of the opinion of the European Parliament, first reading: // 6 February 2002

Date of transmission of the amended proposal: // 16 April 2002

Date of adoption of the common position: // 7 June 2002

2- OBJECTIVE OF THE COMMISSION PROPOSAL

The Commission's initiative is in response to the wishes set forth by the European Parliament and the Council for action in favour of improved energy efficiency in buildings, with a view to realise the large energy savings potential that exists in this sector [1]. Realising this potential was foreseen to make a major contribution to improving security of supply in the EU and to meeting the EU Kyoto commitment.

[1] A5-0054/2001 and Council Conclusions 8835/00 and 14000/00 of 2000.

The Commission accordingly presented a proposal with the basic objective of promoting the improvement of the energy performance of buildings within the EU, ensuring in so far as possible that only cost-effective, technically feasible and environmentally-friendly measures are undertaken. The practical application of the elements of this proposal should remain the responsibility of the Member States.

The proposal of the Commission is intended to provide for (1) the adoption by Member States of a methodological framework for the calculation of the energy performance of buildings; (2) the setting and updating of minimum energy performance requirements based on this methodology and their application on most new buildings and on existing buildings larger than 1000 m2 when these are subject to major renovation; (3) the energy performance certification of buildings when they are constructed, sold or rented out; and (4) the regular inspection of boilers and air-conditioning systems.

3- COMMENTS ON THE COMMON POSITION

(a) General

The political importance of this proposal has been clearly underlined in the Council Conclusions from the year 2000 and in the Resolution of the European Parliament from 2001 [2], in which the 40% share of total EU final energy consumed in buildings and the over 22% cost-effective savings potential available in the buildings sector are underscored. In many respects, this proposal is considered by the Council and European Parliament, as well as by the Commission [3], to be a key instrument for meeting the EU Kyoto commitment.

[2] Ibid.

[3] "Communication from the Commission on the Implementation of the first phase on the European Climate Change Programme (ECCP)" ; COM(2001) 580 final

The Belgian and most recently the Spanish Presidency have treated this proposal as a matter of high priority and have consequently intensified work on it during discussions in the Council. During both Presidencies a spirit of constructive co-operation and compromise has also prevailed among Member States, with a view to agree a document that can have major impact on energy performance in the buildings sector.

During the preparation of the first reading in the European Parliament in February 2002, positions in the Parliament were continuously made known to the Council, providing useful guidance to Member States in developing and negotiating the Common Position.

The Council Working Party on Energy examined the amended proposal and the amendments proposed by the European Parliament, and it reached unanimous agreement on a draft Common Position. Coreper has consequently invited the Council to adopt its Common Position, together with a statement of reasons and a Commission Statement for the Council minutes.

In general, where the Common Position departs from the Commission Proposal it is for the purpose of clarifying and defining the scope, thresholds and concepts as set out in the original text.

Transposition period

In the European Parliament's Amendments 19 (on certification) and 25 (on entry into force), a transposition period of 3 years is proposed except for certification, which would be allowed 5 years after entry into force. The Commission considers a transposition period of 7 years for Articles 7, 8 and 9, as proposed in the Common Position, to be too long because this would place transposition after the beginning of the Kyoto target deadline period, which is 2008 - 2012. The Commission prefers instead that the periods foreseen in Article 15 do not go beyond 31 December 2006. Three of these years for transposition are allowed unconditionally, while any additional period would require notifying the Commission and providing appropriate justification, together with a timetable regarding implementation.

Alternative means of calculation of thresholds and of compliance

In the Common Position, Member States have felt a need to add alternative means of calculation and compliance, in addition to those means originally put forth in the Commission Proposal. Article 6, together with Recital 13, now provides for a choice between two ways to calculate the 25% threshold that determines what a major renovation of an existing building is. For energy performance certification, Article 7 and Recital 16 now provide for the possibility of compliance by using voluntary agreements, as these, too, will be supervised and followed up by the Member States. For boiler inspection, Member States may now choose, instead of establishing a mandatory inspection scheme, to ensure that a programme of advice on boiler replacement is made available to the users and owners of the boilers. Such programmes may include on-site inspections.

The Commission position as regards the alternatives for calculating the size of renovations is positive, as it addresses in an appropriate way the technical difficulty of defining "major renovations" in Article 6. For certification and boiler inspection in Articles 7 and 8, the Commission can accept the alternative means of compliance because, with certification, Member State supervision and follow-up is required. For boiler inspection, Member States will be required to show that alternative advice schemes have an overall impact that is equivalent to mandatory on-site inspection and therefore, bearing in mind the political and social difficulties of full mandatory schemes in some Member States, the Commission supports this compromise.

Threshold for the upgrading of existing buildings in conjunction with major renovations

The European Parliament would have preferred a lower threshold than 1000 m2 for upgrading in conjunction with major renovations of existing buildings, but accepted this as the best possible compromise. The Commission also considers the threshold of 1000 m2 an acceptable compromise and in this context welcomes the provision proposed in Amendment 23 for a new Article 11, which states that the Commission shall evaluate the Directive and make proposals with respect to possible complementary measures referring to the renovations in buildings under the 1000 m2 threshold.

(b) Main objectives of amendments proposed by the Parliament to this proposal were:

* to provide equal access to improved energy performance in social housing.

* to raise the issue of the future widespread use of air conditioning in Member States in southern Europe.

* to define energy performance in terms of actual consumption.

* to distinguish clearly between new and existing buildings and to provide for Community minimum standards.

* to allow for energy performance certification for large apartment or commercial buildings to be based on the building as a whole.

* to provide for CO2 emission indicators.

Social housing

The Parliament, in Amendment 3, underscored the importance of providing public funds from Member States to guarantee equal access to improved energy performance resulting from energy performance certification for residential buildings constructed or administered as part of a social welfare policy. In the Common Position, this matter is addressed by a clear recommendation in Recital 16 for subsidy programmes to be created in the Member States to facilitate this access.

Increased use of air conditioning

In amendment 4, the European Parliament underlines that the recent rise in the number of air-conditioning systems in southern European countries has resulted in considerable problems for electricity supply at peak load times.

Amendment 4 is addressed in Recital 17 in the Common Position, with a strong emphasis on passive cooling techniques as a means of reducing peak loads. The Commission feels that this recital, together with the reference to "solar protection" in the Annex to the Common Position, deals satisfactorily with this important issue and is faithful to the spirit of the amendment.

Energy performance and actual energy consumption

The intention of measuring actual energy performance as set forth in Amendment 11 is addressed in principle in Article 7.2 of the Common Position with the introduction of the word "benchmarks". The use of benchmarks and current legal standards will allow consumers to assess the energy performance of buildings in terms of energy consumption and to compare these with other similar buildings.

Distinction between new and existing buildings and the provision of minimum efficiency standards

In Amendment 15, the European Parliament underscores the need to distinguish between new buildings and existing buildings in setting minimum performance standards. It proposes the setting of standards using the procedure established in Article 14.

Articles 4, 5 and 6 in the Common Position now make a clear distinction between new and existing buildings when setting requirements. However, only the methodology for calculating the energy performance of buildings will be set at Community level. The Committee established in Article 14 will review the methodology and update it to reflect technical progress. This should, in time, allow a closer harmonisation of Member State performance standards through the increased use of best practices resulting from shared experience and increased knowledge.

Simplified energy performance certification

In Amendment 19, a simplification of the energy performance certification procedure is called for, allowing, where possible, for certification of whole buildings instead of individual apartments or units.

In the Common Position this is addressed in Article 7.1, which allows certification to be based on a common certificate for the whole building if a common heating system is present or on the assessment of another representative apartment in the same block of apartments.

Mandatory CO2 emission indicators

Mandatory CO2 emission indicators for performance certificates for new buildings are called for in Amendment 20.

In the Common Position, CO2 emission indicators may be included in the integrated methodology for calculating a building's energy performance and may thus be included in performance certificates. However, this is not mandatory. The Commission is also of the opinion that at present many Member State building codes do not include or make allowance for such indicators due mainly to the complexity of calculating them correctly. In time it might be appropriate to require these indicators, but at present it is felt by the Commission that this measure should remain optional.

(c) Other elements of the Common Position in relation to amendments sought by the European Parliament

Validity period for energy performance certification

The Commission accepts the extension of the validity period for energy performance certificates from the 5-year period originally proposed by the Commission to the 10-year period in the Common Position. The Commission feels that the impact of the foreseen certification will still be substantial and the Commission can therefore accept the Council's position as a suitable compromise and an important first step. In this context, Recital 16 in the Common Position underscores the fact that, regardless of the validity period allowed, certificates should describe the actual energy performance situation of the building in question to the extent possible.

Thresholds and scope for boiler inspection

Raising the threshold for boiler inspection from 10 kW, as set forth in the Commission Proposal, to 20 kW in the Common Position, and the possibility to exclude from inspection gas-fired boilers in the range 20 kW to 100 kW will reduce the number of units covered by the measure. However, due to the limited amount of energy consumed by boilers in the interval 10 kW to 20kW, and the limited cost-effective savings potential in gas-fired boilers (which are usually performing well over longer periods) in a number of Member States, the Commission can accept the Council's position as a compromise.

4- CONCLUSION

The Commission considers that the Common Position adopted unanimously by the Council on 7 June 2002 is generally faithful to the spirit of the Commission's proposal of 11 May 2001, which itself was tabled in response to concerns expressed by the Council and the European Parliament regarding the need for action to be taken in the area of energy efficiency in the EU building stock.

The Commission believes that the Common Position has succeeded in retaining the spirit and intention of the Commission proposal and of a very large part of the Amendments of the European Parliament. A workable and acceptable balance has been reached in defining the types, scopes and thresholds for actions set forth in the Commission Proposal. The high degree of subsidiarity required in the buildings sector due to different climatic and technical considerations has also been adequately addressed in the Common Position in a manner in line with the intention of the Commission Proposal and with the intention of the European Parliament. The use of alternative calculation methods and alternative means of compliance, along with appropriate conditions also represents a suitable balance.

The longer validity period for energy performance certificates and the higher thresholds and somewhat reduced scope for boiler inspection are also acceptable by the Commission as these measures will still result in a significant impact and are thus in line with the overall objective of the Commission Proposal. They are also in line with the wish of the European Parliament to ensure the implementation of these measures.

As regards the issues raised by the European Parliament relating to social housing, the increased use of air conditioning, measuring energy performance, the distinction between new and existing buildings and the methodology and scope for certificates, the Commission believes that these, too, as expressed in the Common Position, are very much in line with the amendments adopted by Parliament.

The Commission therefore commends this Common Position to the European Parliament.

5- STATEMENT BY THE COMMISSION FOR THE MINUTES

The Commission has asked that the following statement be inserted when the Common Position is adopted:

"As regards the period of entry into force of the Directive and as regards the period to fully apply the provisions of Articles 7, 8 and 9, which together cover a period of 7 years, the Commission considers these delays to be far too long. The objectives of effective demand management and improvement of security of supply require the periods foreseen in Article 15 not to go beyond 31 December 2006."