The EU Parliament has approved the directive on the energy-efficient renovation of residential buildings. This marks an important step towards the EU's climate goals. The plan provides, the energy consumption up to 2030 around average 16 percent and to 2035 a 20 until 22 percent to reduce. In addition, until 2030 16 Percent of the least energy efficient buildings and up 2033 26 percent to be renovated.

What the renovation obligation means for homeowners

The initiative is based on a proposal from the EU Commission, who pointed it out, that building for around 40 percent of energy consumption and a third of greenhouse gas emissions in the EU. Better insulation and modern heating systems could reduce energy requirements and reduce environmental impact.

Implementation in Germany

The implementation of the directive in Germany will be crucial. There are no enforcement measures for individual buildings, emphasized EU chief negotiator Ciarán Cuffe and Federal Construction Minister Klara Geywitz. A one-size-fits-all solution would lead to social upheaval. The exact clarification, which buildings need to be renovated and when, is a major challenge for the federal government, said the main association of the German construction industry. A balance must be found between efficiency and feasibility. Originally, a specific obligation to renovate was planned. However, critics complain, that the compromise neutralizes the climate policy benefits of the directive. The ambitious plan could be financially overwhelming for homeowners.

Objectives of the directive

The new directive aims to do this, the energy consumption of residential buildings 2030 around average 16 percent and to 2035 a 20 until 22 percent to reduce. Renovation of non-residential buildings is also required, to reduce energy consumption. The initiative for this directive goes back to a proposal from the EU Commission, which was submitted about two years ago. According to the Commission, buildings are responsible for a significant share of energy consumption and greenhouse gas emissions in the EU. A stricter obligation to renovate was originally planned, but this was weakened. Critics complain, that this undermines the climate policy benefits of the directive. The debate remains intense.

Possible impact on the real estate market

The implementation of the directive in Germany could lead to a loss in the value of numerous properties, especially when minimum standards are introduced. The exact effects remain to be seen. There are subsidies for gas replacement- or oil heating as well as funding for further efficiency measures. The details of the funding are explained, whereby is emphasized, that the investment costs are capped.

Conclusion and outlook

The directive on the energy-efficient renovation of residential buildings represents an important measure to achieve the EU's climate goals. However, the exact implementation and its effects in Germany continue to be intensively discussed and monitored.