What the EU’s revised Energy Performance of Buildings Directive means for the UK

European neighbours including Denmark, France and the Netherlands have forged ahead with requiring limits on embodied, as well as operational, carbon emissions from new buildings. In building regulations, the UK government is yet to limit whole-life carbon emissions, covering both embodied and in-use carbon.

The revised EPBD will set a timeline for all member states to follow the European leader countries and by 2030, all new buildings in the EU will have to meet regulatory limits for whole-life carbon, which is to be reported on the Energy Performance Certificate (EPC). Large new buildings will have to disclose whole-life emissions from 2028. In the UK, action is underway to develop similar proposals and there is no reason why the next UK government cannot match, or surpass, the EU timetable if it chooses to tackle it.

Under the new EU regulations, member countries will now have to identify and improve their least energy-efficient non-domestic buildings, tackling the worst 16% by 2030 and a further 10% by 2033. With around one third of buildings’ energy use in the EU coming from business or public buildings, this phasing out of the least efficient buildings will be structured around tightening minimum energy standards.

Meanwhile, in England and Wales, the mandatory requirement for existing business buildings’ energy performance is a minimum EPC E standard for rented premises – where required improvement measures are cost-effective.

The EU isn’t alone in setting forward-looking, regulated energy standards for its non-domestic building stock, rented and owner-occupied. US cities and states, such as New York City, have set long-term performance trajectories for larger business properties. An important question for the next UK government will be whether and how it follows this global trend.

To ensure homeowners are moving to low-carbon heat sources, new public funding for stand-alone fossil fuel heating, such as gas or oil boilers, will be prohibited in the EU from 2025.

At the same time, the European Commission will develop a new portfolio framework to be used by banks for mortgage lending for retrofit to ensure private investment can flow towards the low-carbon transition.

“To ensure homeowners are moving to low carbon heat sources, new public funding for stand-alone fossil fuel heating, such as gas or oil boilers, will be prohibited in the EU from 2025”

While the UK has financing and information policies in place for retrofit, some of the government-mandated funding provided through the Energy Company Obligation does still pay for new gas boilers.

The challenge for the incoming UK government will be to bring its home retrofit policies within a long-term strategic framework. That means setting clear medium and long-term targets that join up information, financing and regulatory policies within a single low-carbon roadmap for all homes.

Perhaps most importantly, the EU requires member states to have national plans for their building stock to reach zero emissions. While the UK will inevitably set its own trajectory to achieve our national net zero target, the need for a roadmap for transforming our buildings is clearer than ever.

To ensure the UK is not outpaced, a white paper on delivering world-leading standards for buildings should be an urgent step for the next government if we are to stick to the commitments we signed into law during the last parliament – and ensure the UK’s built environment can decarbonise by 2050.