The EU’s goal of achieving climate neutrality by 2050, as set out in the European Green Deal and the intermediate greenhouse gas reduction plans for 2030 and 2040, requires the transformation of all sectors of the economy and transition towards zero-emission.
According to the European Commission data, buildings across the EU are responsible for about 40% of global energy consumption and 36% of global carbon emissions, and as many as three-quarters of them are energy inefficient, with an annual renovation rate of just 1%.
In order to address these challenges and put Member States on the path to eco-transformation, the EU is implementing a number of legislative actions and environmental, social and corporate governance (ESG) policies. One of the priority actions is the decarbonisation of buildings, which is the process of reducing or eliminating greenhouse gas emissions until their anthropogenic generation stops completely.
Key legislation on the decarbonisation of buildings – Energy Performance of Buildings Directive
Buildings are responsible for greenhouse gas emissions at different stages of their life cycle: before, during and after their lifetime.
The vision of decarbonised buildings in 2050 is not only about the emissions that arise during their use, but also those that occur during the construction and post-use phases. Decarbonisation has therefore become an overarching ESG strategy for many companies and investors. The sooner it is implemented, the greater the benefits that can accrue to building owners – including financially, reputationally and in terms of the environment.
The decarbonisation process is supported by both EU and national regulations, among which the European Parliament and Council Directive on the Energy Performance of Buildings (EPBD) is particularly relevant. This directive, in force since 28 May 2024, introduces a number of measures in support of climate targets, the most important of which are:
- Zero-emission construction: from 1 January 2028, all new buildings owned by public bodies, and also from 1 January 2030 other new buildings, will have to comply with zero-emission requirements. This means that they will must operate with very high energy efficiency and zero or minimal greenhouse gas emissions. The energy used by these buildings should come from renewable sources. All other existing buildings should achieve zero-emission by 2050.
- Renovation of buildings: when buildings undergo major renovation costing more than 25 % of the value of the building (not including the value of the land) or involving at least 25 % of its external structures, its energy efficiency should be improved. Any renovation should contribute to the minimum required energy efficiency standards, in so far as technically and economically feasible.
- Renovation passports: by 29 May 2026, Member States shall introduce a voluntary scheme for renovation passports to help owners and investors plan the best timing and extent of renovation. The document, issued by a qualified expert, will set out a plan for a thorough renovation of a given building carried out in a maximum number of steps that will significantly improve its energy performance.
- Regular inspection of building systems: to ensure optimal performance from an environmental, safety and energy perspective, heating, ventilation and air-conditioning systems and their combinations should be subject to periodic inspection by qualified personnel. An independent assessment of the entire system should occur at regular intervals during its lifecycle in particular before its replacement or upgrading. In order to minimise the administrative burden on building owners and tenants, Member States should endeavour to combine inspections and certifications as far as possible.
- Energy performance certificates: by 29 May 2026, Member States are required to introduce new rules for energy performance certificates that comply with EU standards for the classification of buildings on a scale using letters from A to G. The letter A corresponds to zero-emission buildings and the letter G corresponds to the very worst-performing buildings in the national building stock at the time of the introduction of the scale.
- Solar energy in buildings: Member States are required to implement legislation to ensure that all new buildings are designed to optimise their solar energy generation potential. By 31 December 2026, all new public and non-residential buildings with useful floor area larger than 250 m2 must be equipped with solar energy installations such as photovoltaic panels. This obligation will apply to new residential buildings from 31 December 2029.
- Energy one-stop-shops: Member States, in cooperation with the competent authorities, shall ensure the establishment of technical and information assistance facilities for improving the energy efficiency of buildings, with a particular focus on households affected by energy poverty and on worst-performing buildings. These points will offer advice and assistance on possible retrofitting measures, available funding and grants for energy performance improvements.
Member States are required to implement the provisions of the directive by 29 May 2026. Poland has already started the process, and a draft amendment to the regulation on the methodology for determining the energy performance of a building or part thereof and associated energy performance certificates was published on 3 July 2024.
Decarbonisation strategies and management in commercial buildings
The EPBD has a key role in the context of building decarbonisation, due to its setting of the legal framework and targets to lead to significant reductions in greenhouse gas emissions. In order to meet these requirements, it is essential to implement effective decarbonisation management strategies that cover the entire life cycle of buildings.
A key element of such a strategy is the creation of a building decarbonisation plan to help organise actions, set targets and manage the process to achieve full zero-emission by 2050.
Managers, owners and investors can use the EU-funded Carbon Risk Real Estate Monitor (CRREM)[1] research project tools to that end.
The CRREM tools analyse a building’s operational emissions, allowing the determination of the point at which a real estate no longer meets emission performance standards. This indicator is an essential benchmark for planning retrofits and adaptation measures.
Effective decarbonisation management also includes the progressive implementation of measures to improve the energy efficiency of buildings, such as through the use of renewable energy sources or better energy management in the building.
The introduction of green leases, which promote low energy consumption and sustainable practices, is a key step in this strategy. Regular energy audits help to identify areas of high energy consumption so that necessary modifications can be made. This makes buildings more sustainable, which not only reduces operating costs but also increases their attractiveness in the eyes of investors and tenants. Certifications such as LEED or BREEAM attract investors, due to lower operating costs and higher market value.
Key role of monitoring and management in decarbonisation
Successful decarbonisation of commercial buildings depends on a constant monitoring of progress and regular reviews of targets set. Dynamic management of the process, which takes into account changing market and regulatory conditions, allows not only the reduction of a building’s carbon footprint, but also the minimisation of risks related to non-compliance with new emission standards. This all translates into long-term benefits, both for the environment and the market value of the real estate.
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[1] https://www.crrem.eu/.
