After months of negotiations, members of the European Parliament, national governments and the European Commission have signed an agreement for the new Energy Performance in Buildings Directive (EPBD). Accordingly, EU countries agreed to phase out fossil fuel heating by 2040. By 2030, all new buildings, including new-build homes, must be ‘Zero Emission Buildings’. By 2050, all buildings in the EU will be converted to zero-emission buildings.Incentives for natural gas combi boilers are being removed
Additionally, EU institutions agreed to include a road map in the National Building Renovation Plans to phase out natural gas combi boilers by 2040. As of January 1, 2025, EU countries will not provide any financial incentives for the installation of combi boilers running on fossil fuels. The bill also sets 2040 as a target date for national governments to phase out combi boilers. Home heating accounts for 12% of the entire EU’s CO2 emissions.
“Gas has no future in our homes,” said EEB’s Davide Sabbadin. “Today’s EU decision signals governments to stop wasting billions on an outdated and polluting sector. “Countries now need to take urgent and more ambitious steps to set a national phase-out date before 2040.”
Demand for heat pumps is increasing
Clean heating alternatives are gaining popularity across the continent. European heat pump sales set a new record, increasing by 39% to nearly 3 million in 2022. Heat pumps work 3 to 5 times more efficiently than combi boilers.
Building exteriors will be renewed
Minimum energy performance standards (MEPS) for non-residential buildings were also agreed upon. According to the established framework, all non-residential structures will be required to exceed today’s performance minimum of 16% by 2030 and reach the 26% performance threshold by 2033.
Before it is finalized, national governments in the European Parliament and the EU Council must each approve the agreement reached by their negotiators. However, this step is seen as a formality.
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