New Agreement: EU Members to Develop Stricter Building Energy Efficiency Codes By Yearend

With all the cold and snows this winter, many balked at the notion that climate change is real, but there’s one thing that no one can deny- energy efficienct homes and businesses save owners money.

Image courtesy of Tipperary Energy Agency Ltd.

This idea is part of what prompted representatives of the European Parliament and Council to recently agree to “recast,” which is another way of saying amend the Energy Performance of Buildings Directive that originally went into effect 2007.

Right now, it’s estimated that “buildings are responsible for 40 percent of energy consumption and 36 percent of European Union CO2 emissions,” said Andris Piebalgs, newly appointed European Commissioner for Development of Global Health.

“It is estimated that by strengthening the provisions of the directive on energy performance, the EU could achieve a reduction in its greenhouse gas emissions equivalent to 70 percent of the current EU Kyoto target. These improvements could save citizens around 300€ per annum per household in their energy bills, while boosting the construction and building renovation industry in Europe, ” added Piebalgs.

In the new recast, the Parliament expressed the belief that “the instruments on energy efficiency adopted at the EU level reflect the growing importance of energy as a political and economic challenge and its close interrelation to policy areas of security of energy supply, climate change, sustainability, the environment, internal markets, and economic development.”

The recast’s “main objective is to promote the cost-effective improvement of the overall energy performance of buildings. It’s provisions cover the energy needs for space and hot water heating, cooling, ventilation, and lighting for new and existing residential and non-residential buildings,” according to the directive.

Currently, 22 member states (countries) have declared that they will fully comply with the recast directive, which won’t fix EU-wide levels, but will require member states to lay down concrete requirements and relevant mechanisms. This approach will take national and regional conditions into account, such as outdoor climate and individual building traditions.

The minimum requirements under the recast directive would include:

• 60 to 80 Mtoe/year (million tons of oil equivalent per year) energy savings by 2020 - a reduction of five to six percent of the EU final energy in 2020.

• 160 to 210 Mt/year (metric tons per year) energy savings by 2020 - four to five percent of EU total CO2 emissions in 2020.

• 280,000 to 450,000 potential new jobs by 2020, mainly in the construction sector, including energy certifiers, auditors, and inspectors of heating and cooling systems.

As of June 30, 2014, member states will no longer be able provide incentives for the construction or renovation of buildings which don’t comply with the minimum energy performance requirements for achieving results of comparable calculations.

At the latest, member states will be required by December 31, 2010, to adopt and publish laws, regulations, and adminstrative provisions necessary to comply with the articles of the directive.

While a start point, this recast directive is by no means considered a full solution by experts. In a European Commission impact assessment of the directive, it was said that “despite the actions already undertaken within the buildings sector, a large cost-efficient energy savings potential is still unutilized.

“This is due to the complexity of the sector and the existence of market failures (e.g. incomplete internalization of externalities in energy prices, tenant-landlord problems, imperfect information, and low uptake of new and innovative technologies), but also limitations of the wording of the current directive and low level of ambition in its implementation.

“The solution is an integrated mix of policy instruments and thus other non-regulatory measures, although not sufficient on their own, are necessary to compliment the directive’s implementation. The efforts in providing more financial and fiscal incentives, information, training of experts, and agreeing on voluntary actions should be strengthened.”

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