The Energy Performance of Buildings Directive (EPBD): What the European Construction Industry Needs to Know

On April 12, 2024, the European Council adopted the Energy Performance of Buildings Directive (EPBD). Aligned with the European Union's ambitious climate objectives, particularly its aim to become the first climate-neutral region by 2050, strategic planning across various industries is underway to establish targets for achieving net-zero emissions. This means that preparing now for the beginning of the building sector’s implementations in 2028 is a must. 

Important dates coming up to abide by the Energy Performance of Buildings Directive

Key provisions in the updated Energy Performance of Buildings Directive include buildings required to have zero on-site emissions from fossil fuels by these dates:

•All new, publicly-owned buildings by 2028

•All new residential and non-residential buildings by 2030

•To phase out the use of fossil fuels in building heating systems by 2040

•All of the EU’s building stock should be transformed into zero-emission building stock by 2050

Statistics about the current state of building emissions in the EU

•40% of the energy consumed in the EU comes from buildings

•36% of energy-related GHG emissions come from buildings

•80% of household energy consumption is used for heating, cooling, and hot water

•75% of the building stock in Europe in 2024 doesn’t meet the efficiency standards set by the EPBD

How does the EPBD affect the construction industry?

In addition to new buildings requiring high energy performance ratings, the existing buildings will have to be renovated. This means building with the most modern and energy-efficient materials that are available and being able to report emissions that have been reduced. Using Net0 emissions management software effortlessly uses AI and automation to record and track emissions. 

What construction companies need to do to stay compliant with the EPBD’s Minimum Energy Performance Standards (MEPS)

A minimum energy performance standard (MEPS) is a specification in a certain country, containing a number of performance requirements for an energy-using device, that limits the maximum amount of energy that may be consumed by a product in performing a specified task. 

The Minimum Energy Performance Standards will apply to certain buildings at different times. The worst performing buildings will have to be retrofitted first. The EPBD requires each member state in the EU to set minimum energy performance standards for commercial buildings, which will gradually increase over time, so that buildings with the lowest energy performance certificates (EPC) ratings will need to be renovated first. The review of a property’s energy efficiency is dependent on the amount of energy used per m² and the level of carbon dioxide emissions tonnage in a year. 

•As a whole, the 16% worst-performing buildings must be renovated by 2030 and the 26% worst-performing buildings are required to be renovated by 2033. Each EU member state is permitted to adopt their own trajectory to complete this.

•Furthermore, each member state is in charge of planning a trajectory to reduce their average primary energy use by 16% by 2030 and 20-22% by 2035.

Individual homeowners will not be obligated to renovate. However, when buying new homes, they will need to take EPC ratings into consideration and if they don’t want to face expenses of retrofitting later on or higher energy bills, they will choose the homes that have a better EPC rating to avoid problems in the future. 

Construction companies are tasked with addressing these issues and devising proactive strategies to tackle them right from the outset. The construction industry will face significant work in adapting to these new laws throughout the decade.

How Net0 can help benchmark, set targets, and reduce emissions in buildings

Automated data collection 

With 10,000 integrations, Net0 uses AI and automation to accurately record and track GHG emissions data from the building sector, parsing out data from utility bills or via buildings’ submeters. Utilizing this real-time, granular data empowers you to spot reduction opportunities immediately, enabling more effective energy management and contributing significantly to emissions reduction.

For an even more precise view of energy consumption, Net0 offers white-labeled submeters that are priced between $100-120 each and take just 5 minutes to install. These devices provide instant and detailed electricity usage data.

Collecting and recording granular data in real time empowers teams to spot reduction opportunities immediately, enabling more effective energy management and contributing more to emissions reduction.

Carbon reduction scenario simulator

Using Net0’s AI-driven carbon reduction scenario modeling, you can explore the impact of proposed changes like switching to renewables. The proposed result is displayed in real time, displaying the percentage reduction across all scopes. The outcome is also visualized on a pie chart, providing a clear, understandable view of the potential environmental impact of your proposed changes.

This works in two steps:

1. Setting reduction targets to define the emissions percentage reduction you aim to achieve.
2. Identify limitations or constraints, such as inability to switch energy providers. 

Based on these selections, AI generates various viable scenarios to accomplish your specified targets, providing a range of options for your consideration.

Net0 Blueprint MAC curve tool

Net0 Blueprint is a marginal abatement cost curve (MACC) tool that takes your environmental data and combines it with a financial instrument using predictive AI analytics to give you insights on profitable decarbonisation strategies suitable for your building plans and projects. It offers businesses a data-driven roadmap with various decarbonisation initiatives determining what best aligns with the company’s targets and profitability goals according to shifting market trends. 

To find out more about how Net0 assists construction companies in lowering their buildings’ GHG emissions with real-time data and actionable insights, meet with one of our specialists on a call at https//:net0.com/demo.