1.  The EU policy framework for energy efficiency and RES in buildings
Brussels, COCOF meeting 23 March 2011
Michaela Holl
European Commission
Directorate-General for Energy
About ACE:
The Architects' Council of Europe (ACE) is the European organisation representing the architectural profession at European level.  
Its growing membership consists of Member Organisations, which are the nationally representative regulatory and professional bodies of all European Union (EU) Member States, Accession States, Switzerland and Norway. Through them, it represents the interests of about 480,000 architects. The principal function of the ACE is to monitor developments at EU level, seeking to influence those areas of EU Policy and legislation that have an impact on architectural practice and on the overall quality and sustainability of the built environment.
ACE has been very active in promoting energy efficiency.
They are now trying to lobby for a renovation rate target for the existing buildings. This could be difficult to measure as fro many countries there are no national statistics on how many buildings are renovated per year.
Contact: Gergana Miladinova (94197) 1

2. Broader EU policy framework for sustainable energy

3. The new European Energy Efficiency Plan
Adopted on 8 March 2011, (COM 2011 (109) final), will now be discussed by Council and EP!
Provides strategic framework for EE policy in Europe up to 2020 and beyond
To be followed up by legislative proposals e.g. recast of Energy Services Directive in June 2011
Messages include:
Conditionality on the spending of public funds
Innovative financial instruments
Energy service companies
Increased role of energy companies

4. The new European Energy Efficiency Plan and the building sector
In going beyond the requirements of the EPBD recast it underlines:
Need for more stringent EE criteria in public spending in buildings
Suggests 3 % (of floor area) annual refurbishment target for public authorities buildings = doubling of current rate in EU!
Announces new legislative initiative on energy performance contracting (including contracting in buildings sector) for 2011
Highlights need for training of the workforce

5. The 2050 roadmap for low-carbon economy
Adopted also on 8 March 2011 (2011 (112) final)
20 % reduction in EE = 25 % reduction in CO2 by 2020
Additional investment: € 270 billion annually , or 1.5% of GDP on top of current 19%
Crucial role of building sector: Emissions here could be reduced by 90 % by 2050

6. The 2050 roadmap for low-carbon economy

7. An extensive EU legal framework
Overarching
Energy end-use efficiency and energy services Directive
Effort Sharing Decision
Energy performance of buildings Directive (recast and original) 2002/91/EC and 2010/31/EU
RES Directive
Construction products regulation
Buildings
Products
Various legal acts already target different aspects of energy efficiency of buildings.
These range from rather general to very specific ones, imposing various obligations on Member States or manufacturers.
The recent recast of the EPBD has been a major success. Now all new and existing buildings are covered with various requirements.
I know that there are some critiques that the minimum performance level, especially for the existing buildings, were not fixed at EU level. But you know, better than me, how impossible is this because of the diverse building stock and local conditions. Also the recast was not the right place for stronger requirements of financing.
The Commission is committed to monitor the levels set by Member States and actively to promote ambitious but realistic values. Important instrument in this respect would be the cost-optimal calculation methodology that is now being prepared in my Directorate and would be adopted as a delegated act by the Commission next year (possibly mid-July).
Ecodesign Directive (recast and original)
Energy Labelling Directive (recast and original)
Regulation of Energy Star labelling for office equipment 7

8. The Energy Performance in Buildings Directive (EPBD)

9. EPBD makes energy efficiency visible!
EPBD makes energy efficiency visible!
Concrete example of the EPBD implementation: energy performance certificates from various Member States

10. 
EPBD recast
Published in OJ: June 2010, Transposition July 2012; Application by Jan/July 2013
EPBD recast will also be transposed in EFTA and Energy Community countries!
Continuity with 2002 Directive: Main principles are kept, but made more effective (certificates, inspections)
Elimination of the 1000 m2 threshold for existing buildings
Obligatory use of the performance indicator given in the certificate in all advertisements for sale or rent

11. 
EPBD recast
Introduces for the first time cost effectiveness into the development of building codes in the EU – as of 2013 all MS have to assess investment and life time running costs (including energy) when setting minimum requirements
→ Commission will present a regulation on a framework methodology for cost optimal requirements by June 2011
Initiates transformation of the building sector towards „nearly zero energy buildings“ (which includes RES)

12. EPBD recast 2010/31/EU and nearly zero energy policy
EPBD recast 2010/31/EU and nearly zero energy policy
All new buildings in the EU by 31 December 2020 will have to be nearly zero energy buildings (before that: cost optimal requirements)
Public authorities have to be nearly zero by 31 December 2018
MS have to establish a national definition based on Directive “Art 2(2): “a building that has a very high energy performance (…) nearly zero or very low amount of energy required should be covered to a significant extent by RES, including onsite and nearby”
Intermediate targets to be set by 2015, MS to adopt policy plans for nearly zero energy
For existing buildings: MS shall take measures towards nearly zero energy buildings, can also include targets

13. Buildings policy in the RES Directive
Buildings policy in the RES Directive
Member States shall recommend the use of renewable energy sources and district heating (Art. 13.3)
Minimum RES levels by 2014 in new buildings and major renovations
Exemplary role of public buildings by 2012
RENEWABLE ENERGY DIRECTIVE | 13 13

14. 
Recast EPBD and NZEB
EE first, then RES (Recital 15: “alternative supply systems should be considered for new buildings (…) first ensuring that energy needs for heating and cooling are reduced” )
At national level (example DK): building requirements at the moment include only EE options, standards for 2015 phase in solar thermal, long term objectives for 2020 add PV. Note: Might be slightly different for a southern climate!

15.  NZEB – what is needed? Danish building codes show:
Current building code 45 kwh/m2/a gross energy used for heating and hot water cooling and ventilation; = 25 % reduction compared to 2008 can be fully met with only EE. No RES appliance yet needed.
For the 2015 standard (30 kwh/m2/a = 50 % reduction to 2008) technologies needed are: 40 cm insulation, triple glazed windows tight building envelope and ventilation with heat recovery and some solar heating. This is expected to be cost optimal by 2015.
Beyond 2015, you have reached the boundaries of the building only and have to go beyond (=RES off-site) (offshore wind etc).
Buildings standard 2020 (planned)( 20 kwh/m²/a = 75 % reduction to 2008) needs PV installation and/or similar RES. Is not expected to be fully cost effective by 2020.

16. Current low energy buildings in EU MS
Current low energy buildings in EU MS
AT LEB = annual heating energy consumption below KWh/m² gross area 30 % above standard performance)
Passivehaus = Feist passive house standard (15 kWh/m² heating demand, 120 kwh/m² all energy uses)
BE (Fl) Low Energy Class 1 for houses: 40 % lower than standard levels, 30 % lower for office and school buildings
Very low Energy class: 60 % reduction for houses, 45 % for schools and office buildings
CZ Low energy class: 51 – 97 kWh/m2 p.a.
Very low energy class: below 51 kWh/m² p.a., also passive house standard of 15 kWh/m2
DE LEB = kfW60 (60kWh/(m²·a) or KfW40 (40 kWh/(m²·a)) maximum energy consumption
Passive House see AT
Source:
Thomsen/Wittchen, European national strategies to move towards very low energy buildings, SBI (Danish Building Research Institute) 2008

17. 
Ct’d
DK Low Energy Class 1 = performance is 50% lower than requirement for new buildings
Low Energy Class 2 = performance is 25% lower than requirement for new buildings (i.e /A kWh/m² per year where A is the heated gross floor area)
FI LEB: 40 % better than standard buildings
FR New dwellings: average consumption for HWCVL less than 50 kWh/m² (in primary energy). This ranges from 40 kWh/m² to 65 kWh/m² depending on climatic area and altitude.
Other buildings: the average annual requirement for HWCVL 50% lower than requirements for new buildings
For renovation: 80 kWh/m² as of 2009
UK New: Stepwise approach: 2010 level 3 (25% better than current regulations), 2013 level 4 (44% almost similar to PassivHaus), level 5 (zero carbon for heating and lighting), 2016 level 6 (zero carbon for all uses and appliances)
Source:
Thomsen/Wittchen, European national strategies to move towards very low energy buildings, SBI (Danish Building Research Institute) 2008

18. DG ENER opinion on co-funding criteria
DG ENER opinion on co-funding criteria
Now: refurbishments to at least national minimum requirements ideally beyond (EE Plan: “Each refurbishment should bring the building up to the level of the best 10% of the national building stock”).
Ideally setting of rules such: need to improve existing building stock by at least two energy label classes (e g from D to B) or similar in countries that do not use A-G labels
and as of 9 July 2013 to at least cost optimal levels ideally beyond
Public authorities shall endeavour to implement the recommendations given on the energy performance certificate – and lead by example!
For new buildings the NZEB should be the aim!
public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT); Concerning buildings the Fund should aim for renovations to at least cost optimal levels as determined by Art 5 and Annex III of Dir 2010/31/EU and soon to be set out in a Commission decision. Cost optimality means a range of energy performance requirements that presents the lowest global costs combining both running costs and upfront investment costs. It could well be that there are even cost effective solutions beyond the cost optimal range which means that even more ambitous requirements for energy effiicency can still be paid back over the lifetime and in these cases it should be endeveaoured that projects supported by the Fund should aim for that higher ambition level. In the case of new buildings, nearly zero energy building (as defined in Dir 2010/31/EU and soon to be supplemented by additional guidance at national level) shall be the reference point. Until both the national definition of nearly zero energy building as well as the national cost optimal methodology are available and applicable in all MS, the existing energy classes on the energy performance certificates shall be used as a reference with e.g. only the three best performing categories being eligible for support of retrofits and only the best category eligible for support for new built. The energy efficiency renovations shall be carried out while preserving any noteworthy architectural character and without detriment to indoor air quality. The projects should include the integration of appropriate renewable energy supply technologies in the building or from its immediate vicinity in line with the minimum energy performance requirements under Directive 2002/91/EC but above all respecting the spirit of Dir 2010/31/EU, which establishes priority for all cost-optimal energy demand reductions and passive energy efficiency measures first and only once these have been reaped investment in RES technologies.

19. DG ENER opinion on co-funding criteria ct’d
DG ENER opinion on co-funding criteria ct’d
EE Plan: When public bodies rent or buy existing buildings, these should always be in the best available energy performance class.
Priority to first reduce energy demand for heating and cooling, then only RES (very often RES benefit from a support scheme anyway and EE can reduce energy bills for poor people….)
Obligation to have the national energy performance certificate (not private labels only)
In the near future: EU’s upcoming voluntary EU wide certification scheme and the future Eco-label for office buildings can be used
Soon available: Commission technical guidance to help national managing authorities when using ERDF for EE in buildings, to be released Spring 2011
public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT); Concerning buildings the Fund should aim for renovations to at least cost optimal levels as determined by Art 5 and Annex III of Dir 2010/31/EU and soon to be set out in a Commission decision. Cost optimality means a range of energy performance requirements that presents the lowest global costs combining both running costs and upfront investment costs. It could well be that there are even cost effective solutions beyond the cost optimal range which means that even more ambitous requirements for energy effiicency can still be paid back over the lifetime and in these cases it should be endeveaoured that projects supported by the Fund should aim for that higher ambition level. In the case of new buildings, nearly zero energy building (as defined in Dir 2010/31/EU and soon to be supplemented by additional guidance at national level) shall be the reference point. Until both the national definition of nearly zero energy building as well as the national cost optimal methodology are available and applicable in all MS, the existing energy classes on the energy performance certificates shall be used as a reference with e.g. only the three best performing categories being eligible for support of retrofits and only the best category eligible for support for new built. The energy efficiency renovations shall be carried out while preserving any noteworthy architectural character and without detriment to indoor air quality. The projects should include the integration of appropriate renewable energy supply technologies in the building or from its immediate vicinity in line with the minimum energy performance requirements under Directive 2002/91/EC but above all respecting the spirit of Dir 2010/31/EU, which establishes priority for all cost-optimal energy demand reductions and passive energy efficiency measures first and only once these have been reaped investment in RES technologies.

20. 
Where is energy used in buildings? (example: residential, central European climate)
public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT); Concerning buildings the Fund should aim for renovations to at least cost optimal levels as determined by Art 5 and Annex III of Dir 2010/31/EU and soon to be set out in a Commission decision. Cost optimality means a range of energy performance requirements that presents the lowest global costs combining both running costs and upfront investment costs. It could well be that there are even cost effective solutions beyond the cost optimal range which means that even more ambitous requirements for energy effiicency can still be paid back over the lifetime and in these cases it should be endeveaoured that projects supported by the Fund should aim for that higher ambition level. In the case of new buildings, nearly zero energy building (as defined in Dir 2010/31/EU and soon to be supplemented by additional guidance at national level) shall be the reference point. Until both the national definition of nearly zero energy building as well as the national cost optimal methodology are available and applicable in all MS, the existing energy classes on the energy performance certificates shall be used as a reference with e.g. only the three best performing categories being eligible for support of retrofits and only the best category eligible for support for new built. The energy efficiency renovations shall be carried out while preserving any noteworthy architectural character and without detriment to indoor air quality. The projects should include the integration of appropriate renewable energy supply technologies in the building or from its immediate vicinity in line with the minimum energy performance requirements under Directive 2002/91/EC but above all respecting the spirit of Dir 2010/31/EU, which establishes priority for all cost-optimal energy demand reductions and passive energy efficiency measures first and only once these have been reaped investment in RES technologies.

21. Before and after – Factor 10 reduction in energy consumption down to Passivhouse levels, Tevesstrasse Frankfurt, Germany
230 kwh/m²/a for heating
17,5 kwh/m² a for heating

22. Costs of energy efficiency
Costs of energy efficiency
New built: Additional upfront investment costs of %, but payback time of a few years due to substantial savings
Existing buildings :
On average euros additional EE costs/m² for an extensive renovation i.e. circa Euros per house if an average existing building is brought down to 50 kwh/m²/a overall energy use.
refurbishments can be cost effective over years for up to circa 60 % savings in existing buildings, only beyond this the marginal costs increase steaply for the last kwh/m²/a savings.
Payback time increases significantly (ca 50 years and beyond) if the energy efficiency improvements are not coupled to an anyhow renovation!
Example from DENA (German energy agency):
Basic energy efficiency refurbishment package applied to non refrubsihed 70ies building comprising cellar slab, loft insulation, insulation of waterpipes, energy monitoring appliances and regular inspection: cost 3000 Euro, energy savings per year of 710 Euros →payback period of less than five years!
230 kwh/m²/a for heating
17,5 kwh/m² a for heating

23. Support from the EU’s Intelligent Energy Europe Programme
Support from the EU’s Intelligent Energy Europe Programme
POWERHOUSE EUROPE – project to support social housing refurbishment through exchange of best practice
Clearinghouse Facilitation - Paving Way for Better Energy Building Performance in EU Less Developed Regions (CLEARSUPPORT)
Factsheet and outcomes:
Promoting the use of Structural Funds and Cohesion Funds for energy investments in New Member States and Candidate Countries (PROMOSCENE)
Factsheet and outcomes:
E4C Sustainable Energy Actions for Europe's Cohesion (Energy 4 Cohesion (E4C)) Factsheet and outcomes:
SF-ENERGY INVEST Collbaborative Actions for Triggering Investments in Sustainable Energy Actions using Regional and Structural Funds (SF-ENERGY INVEST)
Factsheet and outcomes:
public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT); Concerning buildings the Fund should aim for renovations to at least cost optimal levels as determined by Art 5 and Annex III of Dir 2010/31/EU and soon to be set out in a Commission decision. Cost optimality means a range of energy performance requirements that presents the lowest global costs combining both running costs and upfront investment costs. It could well be that there are even cost effective solutions beyond the cost optimal range which means that even more ambitous requirements for energy effiicency can still be paid back over the lifetime and in these cases it should be endeveaoured that projects supported by the Fund should aim for that higher ambition level. In the case of new buildings, nearly zero energy building (as defined in Dir 2010/31/EU and soon to be supplemented by additional guidance at national level) shall be the reference point. Until both the national definition of nearly zero energy building as well as the national cost optimal methodology are available and applicable in all MS, the existing energy classes on the energy performance certificates shall be used as a reference with e.g. only the three best performing categories being eligible for support of retrofits and only the best category eligible for support for new built. The energy efficiency renovations shall be carried out while preserving any noteworthy architectural character and without detriment to indoor air quality. The projects should include the integration of appropriate renewable energy supply technologies in the building or from its immediate vicinity in line with the minimum energy performance requirements under Directive 2002/91/EC but above all respecting the spirit of Dir 2010/31/EU, which establishes priority for all cost-optimal energy demand reductions and passive energy efficiency measures first and only once these have been reaped investment in RES technologies.

24.  Thank you for your attention!!!

25. Support measures and networks
Support measures and networks
Committees
Concerted
action EPBD
CEN EPBD standards
EPBD
implementation
support
Cohesion policy funds
ELENA
EEE-F
Possibilities for
State Aid
VAT reduced rates
IEE programme
Research FP
EU CONCERTO initiative
Financial & fiscal instruments
Legislation is important, however, not the only instrument with which we promote energy efficiency.
I will not go into details but just wanted to illustrated some of the other instruments. These, for example, include concrete measures to support Member States and various actors in the implementation of the Directives (EPBD given as an example).
We also are developing financial instruments and also provide possibility to Member States to apply their own fiscal and financial measures.
Finally, we are supporting the development of various networks to engage broad spectrum of stakeholders. The Covenant of Mayors has been example of such very successful voluntary initiative that currently covers about 2100 cities that commit to reduce their CO2 emissions by more that 20% in 2020 and to implement concrete measures to this end.
Sustainable
Energy Europe
Campaign
ManagEnergy
network
Networks