The green future of buildings: what the new EU Green Homes Directive brings

Buildings in the European Union are responsible for 401TPTP3T of energy consumption and 36% of energy-related greenhouse gas emissions. These figures show how much existing buildings influence global energy consumption and climate change. Three quarters of buildings within the EU are not energy efficient. This is mainly because many of them are old and have not been renovated to save energy. Only about 1% of buildings are energy renovated each year. At this rate, it would take centuries to make all buildings energy efficient. And for heating, many buildings still use fossil fuels such as natural gas (39%), oil (11%) or coal (3%).

Adoption of Directive EU 2024/1275 was motivated by factors such as climate change, energy independence, energy independence, comfort and health, reducing energy poverty, stimulating the economy and creating jobs. The EU's goal is to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990. It also wants to reduce dependence on imported fossil fuels, make buildings more efficient and comfortable, and cut consumers' energy bills, all of which will have the kn knock-on effect of creating new construction jobs. All these reasons have led to a new law to fundamentally transform the way we construct, renovate and use buildings in the European Union.

Objectives of EU Directive 2024/1275

The main aim of the directive is to make the EU's building stock zero-emission by 2050. This means that, in about 25 years, buildings in the EU should be carbon-free and highly energy efficient.

To achieve this ambitious goal, the directive sets a number of short- and medium-term interim targets:

1. New zero-emission buildings:
   • From 2028 for new public buildings
   • From 2030 for all new buildings
2. Renovation of existing buildings:
   • Reduce average primary energy consumption by 16% by 2030
   • Cut by 20-22% by 2035
3. Minimum energy performance standards for non-residential buildings:
   • By 2030, the least efficient 161TPTP3T in buildings must be improved
   • By 2033, the least efficient 26% in buildings must be improved
4. Phase out fossil fuels in heating:
   • Stop financial incentives for fossil fuel boilers from 2025
   • Complete phase out fossil boilers by 2040
5. Increased use of solar energy:
   • Mandatory installation of solar panels on new and existing buildings according to a specific timetable

The implementation of this directive will increase demand for energy-efficient building materials and technologies, develop the market for energy renovations and increase the share of renewable energy in the construction sector. It will also reduce dependence on fossil fuels for heating and cooling and lower energy bills, create new jobs in construction and green technologies and improve air quality by reducing greenhouse gas emissions.

These objectives and expected impacts show the scale of the changes the directive will bring to the construction sector and to the daily lives of European citizens.

Key measures and tools introduced by the Directive

An important concept is that of zero emission buildings. The building described by the concept is one with very high energy performance, which consumes little or no energy, produces no on-site fossil fuel carbon emissions, and has zero or very low operational greenhouse gas emissions. The concept becomes mandatory from 2028 for new public buildings and from 2030 for all new buildings.

The Directive requires the establishment of minimum energy performance standards the building must achieve. For existing buildings, non-residential buildings must meet certain energy performance thresholds by 2030 and 2033, and for residential buildings, each country must set a progressive renovation trajectory. The conditions and deadlines for new buildings are as above.

Another concept introduced is renovation passport - a tool for improving existing buildings. It is a customized plan for the in-depth renovation of a building, showing the steps needed to transform a building into a zero-emission building. The Renovation Passport includes information on current energy performance, recommendations for improvement and cost and savings estimates. Member states are required to implement the scheme by 2026.

The Directive puts a strong emphasis on integrating renewable energy in buildings, in particular on the use of solar energy. The obligation to install solar panels on new and existing buildings according to a specific timetable is mentioned. Member States must set criteria for the implementation of these solar installations. Other forms of renewable energy such as heat pumps are also encouraged.

There is also a clear plan for phasing out fossil fuels in heating buildings. From 2025, Member States can no longer provide financial incentives for the installation of fossil-fuel boilers, and by 2040 these boilers must be completely phased out. The switch to renewable heating systems is encouraged.

To support these major changes, the Directive provides creating funding mechanisms for energy renovations, specific support for vulnerable households and the setting up of "one-stop-shops" to provide information and assistance in renovating buildings. Member States are encouraged to use EU and national funds to support the energy transition in the buildings sector.

These measures and tools form the backbone of the EU strategy for transforming the construction sector. They will have a significant impact on how we construct, renovate and use buildings in the coming decades.

Implications of Directive 2024/1275 for the construction industry

EU Directive 2024/1275 will have a major impact on the whole construction sector. Changes will have to be made in construction and renovation practices, new techniques and materials will have to be adopted to achieve zero emission building standards. There will be an increased focus on deep and phased renovations, not just superficial interventions, and the integration of renewable energy systems into construction projects will be mandatory.

The need for innovation and new technologies will increase. Low carbon building materials will be developed. Integrated building energy management systems will be developed. Innovations in insulation and energy efficient HVAC systems will emerge.

There will also be implications for the workforce, which will need to be trained and retrained to meet the new requirements. There will be a need to train workers in energy-efficient construction and renovation techniques, there will be an increased demand for specialists in renewable energy and building automation systems. There will also be a need for training of experts in energy performance assessment and the development of renovation passports.

Impact on the timber industry

The wood industry will play an important role in the implementation of this directive. The immediate effect will be increased demand for timber construction. Building with prefabricated timber systems will grow due to reduced site time and high energy efficiency. Wood will increasingly be seen as an alternative to other materials, both for new buildings and renovations.

There will be challenges in adapting to the new standards. The need to demonstrate and certify the energy performance of wood products will be increasingly pressing. Production processes will need to be adapted to meet the requirement to reduce the carbon footprint of products. Competition with other materials will emerge green on the market.

The potential for innovation in products and techniques will increase. New wood products with improved insulation properties will be developed. Innovations in industrialized wood will be increasingly present to meet the stringent requirements of zero emission buildings. Integrated solutions combining wood with other energy efficient technologies will be developed.

Implementation timeline

The directive sets several key deadlines for implementing the different measures:

• 2025: End financial incentives for fossil fuel boilers
• 2026: Implementation of the renewal passport system
• 2028: New public buildings must be zero-emission
• 2030: All new buildings must be zero-emission
• 2030-2033: Implement minimum energy performance standards for non-residential buildings
• 2035: Reduce by 20-22% the average primary energy consumption in residential buildings
• 2040: Complete phase-out of fossil fuel boilers
• 2050: Achieving a fully decarbonized housing stock

This timeline gives the construction and wood industries a clear framework for adaptation and innovation in the coming decades.

Conclusions and the way forward

The main aim of the EU Directive 2024/1275 is to make the European Union's housing stock zero-emission by 2050. This transformation should bring a number of important benefits:

• Significant reduction of greenhouse gas emissions from the construction sector
• Reducing the EU's energy dependence on fossil fuels
• Improving quality of life for European citizens through more efficient and comfortable buildings
• Stimulating innovation in the construction and building materials industry
• Creating new jobs in areas such as energy renovation and green technologies

It is an ambitious plan that brings with it a number of challenges. The most important is the high upfront costs for renovations and new construction to meet the new standards. It will require a large number of professionals who need to be trained as quickly as possible in the new technologies and practices. Renovation of historic or listed buildings can come with challenges that need to be overcome. And all this must not lead to growing inequality or energy poverty.

The Directive is completely changing the future of construction in the EU. It is moving towards a holistic approach to construction, taking into account the whole life cycle of the building. The importance of digital technologies in the design, construction and management of buildings is growing. New business models focusing on energy efficiency and sustainability are emerging. The construction sector is no longer seen as a stand-alone field but increasingly integrated with renewable energy.

Schematic summary of Directive (EU) 2024/1275

To provide a quick reference, here is a schematic summary of the main aspects of the Directive:

Main objectives:

1. Decarbonizing the housing stock by 2050
2. New zero emission buildings from 2030 (2028 for public buildings)
3. Reduce energy consumption in existing buildings by 16% by 2030 and 20-22% by 2035

Key measures:

1. Minimum energy performance standards for existing buildings
2. Introduction of renovation passports
3. Mandatory installation of solar panels on new and existing buildings
4. Phasing out fossil fuels in heating by 2040
5. Financing mechanisms and incentives for energy renovations

Implications for industry:

1. The need for new skills and technologies in construction
2. Opportunities for sustainable building materials and techniques
3. Rising demand for deep and phased renovations
4. Developing integrated solutions for energy efficiency and renewable energy

Key deadlines:

• 2025: End incentives for fossil fuel boilers
• 2026: Implementation of renovation passports
• 2028-2030: New zero-emission buildings
• 2040: Complete phase-out of fossil fuel boilers
• 2050: Housing stock fully decarbonized

This summary provides an overview of the Directive and can serve as a quick reference for those interested in its impact on the construction and timber sector in the EU.