Joint Letter – Ambitious Minimum Energy Performance Standards: A no regret option

The twin geopolitical and energy crises have thrown into sharp relief the high combined costs of Europe’s energy dependency and poor building energy performance. Buildings account for 40% of our energy consumption, most of which is used to keep us warm, and energy renovations are the only solution to durably shelter citizens and businesses from price hikes.

Financial incentives for renovations must be backed by effective regulations. Solely relying on voluntary schemes has not worked so far, with only 1% of EU buildings undergoing energy renovations each year, and an annual rate of deep renovations of only 0.2% in the EU.

Leading industry players, NGOs, think tanks and investors called on Members of the European Parliament to adopt ambitious Minimum Energy Performance Standards (MEPS) in the EPBD recast. MEPS are the main tool addressing the pressing issues of energy poverty, energy security and decarbonisation in the revised text and are critical for both planning purposes and for execution.

When it comes to timelines and benchmarks, MEPS should bring public and non-residential buildings in EPC class F and G to EPC class C by 2030, and residential buildings in EPC class F and G to EPC class C by 2033. This level of ambition should be linked to financial and technical support – such as social safeguards – for low-income households and guarantees on rent.

Ambitious MEPS will benefit citizens and businesses alike:

• They are good for people: adopting ambitious MEPS is the most sustainable long-term solution to permanently shelter citizens from energy price hikes, while providing co-benefits such as an improved indoor environment
• They are necessary to achieve energy security: Guidehouse estimates that going to B/C class would cut gas imports by about 45%, versus only 13% by going to E class
• They are good for the construction sector and job creation: MEPS provide much needed medium- and long-term market visibility, and 18,000 jobs are created per €1 billion invested in energy efficiency
• They are necessary to achieve our climate objectives: all buildings must become fully decarbonised by 2050 if Europe is to meet its net zero objective

Europe can’t afford to lose another decade when it comes to energy renovations. The revision of the EPBD is the only chance to set the EU on a path towards energy security and climate neutrality.