Homes and buildings must thus be made climate-neutral at an accelerated pace. For new homes, this applies from 2030 onward; new government buildings must comply as early as 2028. All new constructions must – if technically and economically feasible – also be equipped with solar panels, though there will be no obligation for private owners.
The least efficient public and commercial buildings must also reduce their energy consumption. By 2030, 16 percent of these buildings must be renovated, increasing to a quarter by 2033. How EU countries will achieve this and which buildings are prioritized may be decided independently by each country. Historic buildings or churches may receive exemptions.
Boilers running on fossil fuels will be phased out gradually. From 2025, no subsidies will be granted for gas boilers. The goal is for national governments to take measures to completely phase out gas boilers and oil-fired boilers by 2040. This is five years later than in the original proposal.
Buildings account for approximately forty percent of energy consumption and more than half of the gas consumption within the EU. This consumption comes mainly from heating, cooling, and hot water for household use. Currently, over a third of buildings are older than 50 years and nearly three quarters are considered energy inefficient. Barely one percent per year is renovated at present.
Another important measure includes the implementation of new technologies and innovations to improve energy efficiency. This involves, among other things, advanced insulation materials, smart energy systems, and sustainable energy sources.
The agreement results from intensive negotiations between the European Parliament and the EU Council and forms a key part of the broader 'Fit for 55' package led by former Commissioner Frans Timmermans. This agreement, which paves the way towards climate neutrality, is crucial for the EU to meet its Paris Agreement commitments.