New EU directive with clear signal Climate neutrality by 2050 becomes a reality in the real estate industry
22.05.2024 • 6 Reading Time
With a new milestone in the fight against climate change, the European Union is putting the spotlight on an initiative that will have a profound impact on the real estate industry. The focus is on: the EU Building Efficiency Directive (BED), ratified by the European Parliament on 12 March 2024 and adopted by the Council of the European Union on 12 April 2024.
What’s the news?
The revised EPBD directive is ambitious and comprehensive. It sets clear targets:
- Zero-emission buildings by 2030
All new buildings must meet zero emission standards by 2030. An even stricter time limit applies to buildings owned by public entities. These must meet the requirements as early as 2028. - Climate-neutral building stock by 2050
A visionary goal pursued by the EU is the transformation of the entire building stock to climate neutrality. - Reduction of primary energy consumption
A concrete target is to reduce primary energy consumption in residential buildings by at least 16% by 2030 and by 20-22% by 2035, compared to 2020. Specific minimum energy standards are set for non-residential buildings, with the aim of achieving a renovation of 16% by 2030 and 26% of the most energy-inefficient buildings by 2033. - Solar and renewable energy
The directive stipulates that when planning new buildings, the possibility of installing solar systems at a later date must already be taken into account without the need for extensive conversions. In addition, the mandatory installation of solar systems in public buildings as well as non-residential buildings and new residential buildings is required by 2030 - provided this is technically and economically feasible. - Energy certificates and categories
Introduction of a new category “A0” for zero-emission buildings and optionally “A+” for buildings that feed additional energy into the grid. In addition, from 2028, life cycle emissions for new buildings over 1,000 m2 and from 2030 for all new buildings are to be calculated and disclosed in the energy performance certificates. - Ban on fossil heating systems
The subsidisation of fossil fuels must cease from 2025. In addition, EU countries are to develop a roadmap that takes into account a phase-out of fossil heating systems by 2040. - Promotion and financing of renovations
A wide range of funding sources, provided at national level, is intended to drive renovation projects. - National building renovation plans
Member States are encouraged to develop comprehensive renovation plans. These plans are intended to provide a clear roadmap for how the building stock can be made climate neutral by 2050. - Promoting mobility
The directive specifies requirements for the provision of charging infrastructure for electric vehicles within buildings to support electromobility. In addition, bicycle mobility is encouraged by regulations on the establishment of bicycle parking spaces.
With the adoption of the EPBD EU Building Directive, the Council of the European Commission has set a clear signal and defined a very ambitious implementation period. As of 2030, all new buildings must comply with the “zero-emission building” standard. All of this confirms our focus on reducing the environmental impact of our portfolios in the long term and thereby creating substantial added value for CR and, above all, our environment.
Looking ahead: Sustainability as an imperative
From challenge to opportunity: The implementation of the EPBD directive offers the real estate industry an exceptional opportunity for sustainable transformation. The promotion of renewable energies and the reduction of energy consumption make an active contribution to climate change mitigation and also improve the ecological balance and attractiveness of the properties. This not only increases competitiveness, but also delays the time when real estate could no longer be considered future-proof.
Member States, including the Federal Government, are now required to enact these requirements in national law. In Germany, some of the directives have already been integrated into the Building Energy Act. However, due to the revised EPBD, the recently adopted Building Energy Act, which was only passed by the Bundestag on 1 January 2024, needs to be amended. Following the approval of the Council, which took place on 12 April 2024, the Federal Ministry of Housing, Urban Development and Construction has two years to implement the requirements into national law.
Member States, including the Federal Government, are now required to enact these requirements in national law. In Germany, some of the directives have already been integrated into the Building Energy Act. However, due to the revised EPBD, the recently adopted Building Energy Act, which was only passed by the Bundestag on 1 January 2024, needs to be amended. Following the approval of the Council, which took place on 12 April 2024, the Federal Ministry of Housing, Urban Development and Construction has two years to implement the requirements into national law.