EPBD amendment 2025: The EU Buildings Directive - impact on property owners & investors

New EU directives increase the speed and depth of refurbishments

The updated directive addresses key levers of climate policy: the systematic energy-efficient refurbishment of existing buildings, the mandatory expansion of renewable energies - particularly through solar technology - and the end of fossil heating systems. For owners, project developers and investors, this results in new requirements, but also strategic opportunities.

Energy-efficient refurbishment: minimum standards with impact

Focus on the most inefficient buildings

The Minimum Energy Performance Standards (MEPS) are a central instrument of the EPBD reform. They oblige the member states to develop clear renovation roadmaps for the buildings with the poorest energy performance. They can be implemented either centrally via national criteria or decentrally via municipal specifications. The aim is to achieve a rapid reduction in energy consumption, particularly in non-renovated buildings.

Time frame and objectives

The EU requires these renovation plans to be available as a draft by the end of 2025 - accompanied by public consultation. This makes the dialog between the administration, owners and ESG experts much more relevant.

The end of oil and gas heating systems: The planned phase-out by 2040

Ban on financial support for fossil fuel heating systems

Another milestone is the binding phase-out plan for fossil fuel heating systems by 2040 at the latest. Member States are already no longer allowed to provide public funding for individual oil or gas heating systems (Art. 17(15) EPBD-Recast).

At the same time, the directive obliges countries to integrate this path into their National Building Renovation Plans (NBRPs) and to anchor specific measures in them (source: https://energy-cities.eu/whats-eup-new-guidelines-for-the-epbd/).

Definition: What is considered a fossil heating system

The decisive factor is the energy source balance in 2040 - not the technology itself. A heat pump that is operated with green electricity does not count as fossil. Space heaters, water heaters and combined systems are equally affected.

Solar obligation for new buildings and public buildings

New standards for building planning

From December 31, 2026, new public and commercial buildings with an area of more than 250 m² must be equipped with solar technology. This does not only apply to roof surfaces - facades and adjacent areas must also be taken into account.

Simplified approval process

A clear advantage for project developers: The EPBD harmonizes the approval processes for solar installations with the simplified procedures of the Renewable Energy Directive (RED). For systems up to 100 kW, approval must be granted within one month; a maximum of three months applies for integrated solutions. Smaller systems up to 10.8 kW only require one application - without an active veto from the grid operator, connection is automatic (source: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023L1791).

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Zero-emission buildings (ZEB): New buildings with a stricter carbon footprint

Emission-free new buildings from 2028/2030

The EPBD requires all new public buildings and new buildings larger than 1,000 square meters to comply with the ZEB standard from 2028 and all new buildings from 2030. This means: no fossil energy in the building, the highest efficiency standards and full consideration of life cycle emissions - from building materials and transportation to maintenance and dismantling.

Holistic CO₂ approach

The new Whole Life Carbon principle is intended to strengthen the circular economy. Sufficiency and reuse of materials are explicitly supported as strategic options (Further information: https://www.bpie.eu/publication/relevanz-und-kosten-einer-lebenszyklusperspektive-auf-gebaude/ ).

One-stop stores & refurbishment passports: New tools for owners

Renovation passports: mandatory from 2026

By 2026, all member states must introduce digital renovation passports that map out individual renovation strategies for buildings. These include a timetable, a package of measures and an economic assessment - tailored to CO₂ costs, eligibility for funding and value development.

One-stop stores: On-site support

The EPBD calls for one central advice center per 80,000 inhabitants to assist owners and investors with refurbishment issues - including financial advice, project bundling and ESG integration. Whether physical or digital: the new one-stop stores (OSS) are to become a low-threshold gateway to the renovation wave (source: https://www.ifeu.de/fileadmin/uploads/Publikationen/Energie/20240610_Praesentation_EPBD_V3.pdf).

New requirements for mobility and digitalization

Charging infrastructure and bicycle parking spaces

Climate protection in buildings does not end at the front door: The EPBD requires the integration of charging points for e-mobility and bicycle parking spaces - for new buildings as well as for extensive renovations.

Smart readiness: buildings are going digital

In future, non-residential buildings with an output of more than 290 kW must be equipped with a Smart Readiness Indicator (SRI). This measures the ability to interact with energy supply and user behavior. The introduction is planned from 2026.

Conclusion: New momentum for energy-efficient refurbishment in the real estate sector

The revised EPBD is a wake-up call for the real estate industry: refurbishment, decarbonization and digital building intelligence are no longer an optional extra, but a regulatory obligation. Those who rely on data-based strategies, funding advice and professional ESG tools at an early stage can not only avoid risks - but also actively create value.

Act now - instead of expensive retrofitting later.

Get advice from ESG experts

Whether renovation strategy, funding analysis or ZEB preparation - Purpose Green supports owners with sound ESG advice, customized tools and a digital renovation roadmap.