It has been almost two and a half years since the European Commission published the “Target 55” package (“Fit for 55” in English), which aimed to implement measures to reduce greenhouse gas emissions in the European Union at least 55% compared to the Values of the 90s. Since then, numerous new policies and policy revisions have been adopted that will implement this very important and necessary reduction in emissions in our society and our economy.
Negotiations on the final part of this package concluded on December 7th with the final dialogue between the Council, Parliament and the European Commission on the Energy Efficiency in Buildings Directive (EPBD). This regulation has a clear goal: to achieve an emissions-free real estate portfolio by 2050.
In order to fully reduce greenhouse gas emissions from our buildings and homes, we must renovate the vast majority of them before 2050. We need to improve the insulation of our walls and roofs, we need to replace our windows and we may need to install slats or awnings to protect ourselves as much as possible from the cold and heat from outside in order to maintain a comfortable temperature without turning on the heating or air conditioning must. This improvement in the building envelope will reduce our bills and greatly improve our living conditions, since we will be able to wake up in the morning in winter without freezing or come home in the afternoon in summer without touching the 30 ºC in the air. Inside. And all this without increasing our electricity and gas bills.
The revision of the Directive finally marks the end of fossil fuels as energy sources in our buildings, such as coal, diesel or natural gas, and sets a date for this end. From 2025, the installation of heating or air conditioning systems that use these fuels can no longer be subsidized. While the resources from the Next Generation Funds already do this, this should also be applied to the other rehabilitation aids. In addition, from 2040 we must eliminate all boilers and appliances that run on these fuels, as they cannot be repaired or purchased. This measure will undoubtedly also improve the quality of the air we breathe in our cities and eliminate the harmful gases that these devices emit. And it represents a major benefit for our planet, slowing down its apparent thermal escalation.
This regulation also addresses the greenhouse gas emissions associated with the materials and techniques we use to construct and renovate our buildings. These have hardly been taken into account so far and will need to be monitored and reduced once the directive is adopted. It will help us prioritize materials that are manufactured in nearby locations to reduce emissions associated with material transportation, natural materials that have sequestered CO₂ during their growth, or materials that can be easily reused and a have second, third and fourth lives. Using these materials will not only reduce our physical emissions, but also boost our local economy and promote the proper use of our natural resources.
Likewise, the revision of the Directive strengthens the Mortgage Portfolio Standards (MPS), which are intended to encourage mortgage lenders to improve the average energy performance of their portfolio of buildings that they finance with their mortgages by 2030 and 2050, in accordance with the European Union (EU) decarbonization targets, based on the Definition of sustainable economic activities of the EU taxonomy. It is worth mentioning that, as part of the revision of the Directive, the European Commission is tasked with adopting a delegated act to create a comprehensive framework to facilitate the voluntary use of MPS by financial institutions.
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However, those of us who have been following the directive since it was presented, two and a half years ago, are aware that the outcome of the negotiations is very watered down compared to the ambitious objectives originally proposed by the European Commission. Zero-emission buildings are less coherent, energy certifications are not harmonized between Member States and the roadmap that each building must follow when renovating has become much less clear. However, one of the aspects that is most clearly expressed in the final document is that it will be the Member States of the European Union that will have to make many decisions, since they will have to design the roadmaps that will allow us to rehabilitate our situation of the whole building stock, the development of national plans that set out which buildings have priority, the timelines for the renovation of these buildings and how to ensure that these renovations are as efficient and fair as possible. In this opening phase, we need to create a roadmap that brings us closer to a park of zero-emission buildings, without leaving anyone behind, with the importance of prioritizing buildings in the worst condition and people in vulnerable situations in which they live.
It is a challenge for Spain, but also a great opportunity to transform all or almost all of our buildings in the long term, making them healthier, more efficient and therefore more livable. For this plan to be effective and realistic, we need to be innovative and ambitious, representing all possible viewpoints and all possible funding options. This is the only way we can master the challenge of making our houses and buildings emission-free and with the greatest possible comfort in 2050.
The organizations of the Spanish group committed to the Energy Efficiency in Buildings Directive (EPBD) are ready to put our knowledge and experience at the service of public administrations to achieve this objective. Environmental quality and social justice are two goals compatible with this process. It's about our health, the health of the planet and the well-being of future generations. We don't have enough time not to do it.
Dolores Huerta She is General Director of the Green Building Council Spain (GBCe). Cecilia Foronda She is Director of Energy and People at Ecodes. Peter Sweatman is CEO of Climate Strategy & Partners. The three sign this forum as members of the Spanish EPBD support group.
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