COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the document Proposal for a Directive of the European Parliament and of the Council on the energy performance of buildings (recast)
Date: 2021-12-15
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, building, building services, energy consumption, energy efficiency, energy saving, environmental standard, improvement of housing, reduction of gas emissions, technological change

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   EUROPEAN COMMISSION  Brussels, 15.12.2021  SWD(2021) 454 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the document Proposal for a Directive of the European Parliament and of the Council on the energy performance of buildings (recast) {COM(2021) 802 final} - {SEC(2021) 430 final} - {SWD(2021) 453 final}  
 
 
Executive Summary Sheet  

Impact assessment on a proposal for the revision of the Energy Performance of Buildings Directive (2010/31/EU) 

A. Need for action 

What is the problem and why is it a problem at EU level?  

As  buildings  are  responsible  for  40%  of  total  energy  consumption  and  36%  of  energy-related  greenhouse  gas 
(GHG) emissions in the EU, the decarbonisation of the buildings sector is vital to deliver on the EU’s 2030 and 2050 
climate and energy objectives established in the European Climate Law and in the “Delivering the European Green 
Deal” proposals. The Climate Target Plan identifies the need for GHG emissions in buildings to decrease by around 
60%  in  order  to  reach  the  overall  55%  emission  reduction  target  by  2030.  This  requires  at  least  a  doubling  of 
renovation rates. 

What should be achieved? 

The revision of the EPBD has two main objectives: (1) contribute to reducing GHG emissions of buildings and final 
energy  consumption  by  2030;  (2)  ensure  that  buildings  make  an  adequate  contribution  to  achieving  climate 
neutrality by 2050. The specific objectives are: to increase the rate and depth of building renovations (policy area 
A);  to  improve  information  on  energy  performance  and  sustainability  of  buildings  with  the  use  of  digital  tools 
(across all policy areas); to ensure that new buildings are in line with the 2050 climate neutrality objective (policy 
area B); and to integrate buildings into decarbonised and digitalised energy systems (policy area C). 

What is the value added of action at the EU level (subsidiarity)?  

Strengthening  the  common  framework  will  ensure  that  the  buildings  sector  across  the  EU  reduces  its  GHG 
emissions at the necessary scale. If one or several Member States were not to act, this would imply overall higher 
GHG  abatement  costs  for  the  EU  as  a  whole.  Action  at  EU  level  also  offers  a  leverage  in  mobilising  the  sector 
around  a  common  ambition  and  leads  to  higher  expected  market  outcomes.  It  will  drive  investment  into 
renovation,  create  jobs,  stimulate  innovation  and  increase  the  benefits  of  the  internal  market  for  construction 
products and appliances.  

B. Solutions 

What are the various options to achieve the objectives? Is there a preferred option or not? If not, why? 

The  main  measure  under  policy  area  A  is  to  introduce  minimum  energy  performance  standards  (MEPS), 
complemented by stronger energy performance certificates, the introduction of building renovation passports and 
a definition of deep renovation. The main measure under policy area B is the introduction of a standard for ‘zero-
emission  buildings’  (ZEBs).  The  main  measure  under  policy  Area  C  is  strengthened  requirements  for  recharging 
infrastructure for electric vehicles in buildings. The measures identified for each policy area are packaged in four 
options, representing an increased level of ambition: low, moderate and high ambition (with two variants, I - II). 
Option 3 ‘High ambition I’ is the preferred option in the Impact assessment. This option is a mix of strengthening 
existing measures and introducing new ones with focus both on new buildings and on existing buildings. It results 
notably in proposing MEPSs that would entail a combination of binding standards for worst performing buildings 
set  at  EU  level,  complemented  by  standards  set  at  the  national  level.  Following  the  negative  opinions  of  the 
Commission  Regulatory  Scrutiny  Board  on  the  Impact  assessment,  raising  concerns  that  it  does  not  provide 
sufficiently solid evidence supporting the preferred set of policy measures, notably as regards proportionality and 
the degree of EU harmonisation, the legislative proposal has been aligned with option 2 on moderate ambition for 
several aspects, including the renovation of existing buildings, whilst keeping option 3 - high ambition I approach - 

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for new buildings and their modernisation. 

What are different stakeholders' views? Who supports which option?  

Stakeholders expressed widespread support on strengthening the EPBD framework and introducing the new policy 
measures proposed. Different views have, however, been expressed on their precise design. MEPS are supported 
by 75% of the respondents to the public consultation (PC), 84% of respondents are in favour of defining ZEBs in the 
EPBD.  There  is  strong  support  (89%)  to  strengthen  the  monitoring  of objectives  identified  by MSs  in  their  long-
term  renovation  strategies.  More  than  two  thirds  (68%  of  respondents  favour  including  measures  to  report  on 
whole life-cycle carbon emissions. 68% also believe it would it be beneficial to provide a legal definition of “deep 
renovation”. More than three quarters (76%) back the harmonisation of energy performance certificates (EPC).  

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise of main ones)?                                     

Policy measures under option 3 (‘high ambition I’) will bring maximum benefits in comparison to current building 
renovation  trends.  Compared  to  the  baseline,  renovation  rates  are  projected  to  be  on  average  1.35  %  points 
higher in 2030 and energy consumption for heating, cooling and domestic hot water 11.7% lower by 2030 and 34% 
lower by 2050. GHG emissions are projected to be 23% and 53.5% lower in 2030 and 2050, respectively, and air 
pollution and water use will also be reduced. Compared to the baseline, energy costs for consumers are projected 
to  be  8%  lower  in 2030  and  27.6%  lower  in  2050. The  measures  will also  generate  jobs  and  value  added  in  the 
construction ecosystem. Choosing the moderate ambition in line with option 2 is estimated to lead to an average 
renovation  rate  of 0.2%  points  higher  than  in  the  baseline  scenario.  Here,  the  final  energy  consumption  will  be 
reduced by 3.6% and by 16% in 2030 and 2050, respectively, and GHG emissions for heating, cooling and domestic 
hot  water  by  4.2%  and  by  21%  in  2030  and  2050,  respectively.  Compared  to  the  baseline,  the  energy  costs  for 
consumers  in  the  moderate  ambition  option  are  projected  to  be  up  by  2%  and  12%  lower  by  2030  and  2050, 
respectively.   

What are the costs of the preferred option (if any, otherwise of main ones)?                                    

The main costs are related to investments in energy renovations triggered by MEPS and to compliance with the 
zero-emission requirements for new constructions. In comparison to the baseline, the estimated relative increase 
of investment is 80% by 2030 in the ‘high ambition I’ scenario. In contrast with the preferred option, choosing the 
moderate  ambition  for  the  renovation  of  existing  buildings  is  estimated  to  require  a  lower  relative  increase  of 
investment of 22.4% by 2030. 

What are the impacts on SMEs and competitiveness?  

More  than  90% of construction, architecture,  and civil engineering firms are  SMEs. In the  preferred option, it  is 
projected that activity will significantly increase by 2030, leading to EUR 104 billion per year of additional value-
added as compared to 2020. In the moderate option, it is projected that by 2030 about EUR 29 billion per year of 
additional value-added will be generated. 

Will there be significant impacts on national budgets and administrations?  

The  proposal  amends  an  existing  Directive  for  the  third  time  and  largely  relies  on  structures  and  rules  that  are 
already  in place. Nevertheless, public authorities  will face  costs  linked to national transposition, monitoring and 
enforcement, and certain administrative costs incurred to comply with obligations to provide information. On the 
latter,  the  digitalisation  of  Energy  Performance  Certificates  and  the  new  provisions  on  data  exchange  and 

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databases are expected to reduce compliance costs and facilitate administrative procedures linked to renovations. 

Will there be other significant impacts?  

Reduced  energy  bills  will  help  alleviate  energy  poverty.  The  estimated  relative  decrease  of  energy  poverty  will 
concern  around  3.5  million  households  for  the  preferred  option  and  2.3  million  households  for  the  moderation 
ambition by 2030. In addition, reducing energy use will bring significant environmental and health benefits, and it 
will also decrease the EU’s dependency on energy imports. 

Proportionality?   

The  measures  proposed  do  not  go  beyond  what  is  necessary  for  the  buildings  sector  to  make  its  adequate 
contribution to the EU’s climate ambition for 2030 and 2050. The concerns expressed by the Regulatory Scrutiny 
Board have been addressed by modifying the legislative proposal. 

D. Follow up 

When will the policy be reviewed?  

The Commission intends to review the EPBD by end 2027, at the latest. The impacts of the revised EPBD will be 
monitored and progress evaluated based on the provisions in the current EPBD, on the Building Renovation Plans, 
and on progress in the context of Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate 
Action.  The  Commission  will  assess  whether  measures  in  place,  including  carbon  pricing,  will  bring  sufficient 
improvements  to  deliver  a  fully  decarbonised,  zero-emission  building  stock  by 2050, or  whether  further binding 
measures at Union level such as strengthened EU-wide minimum energy performance standards will need to be 
introduced.  

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