FAQ: MS are to prepare long-term renovation strategies

Article 4 of the EED requires MSs to define long-term strategies for stimulating renovations in their building sector.

What are MS to do with the long-term renovation strategies once they are completed?

The Coalition for Energy Savings believes that the aim of the comprehensive national renovation roadmaps should be to provide a well-planned, realistic yet ambitious approach, to increase with immediate effect the historically low renovation rates, and ultimately reduce significantly the energy consumption of the building stock by 2050.

The Coalition goes further: “The development of the long-term renovation roadmaps set out in Article 4 is to be viewed in coordination with the public buildings renovation requirements established in Article 5, which should be aimed at kick-starting the market and providing best practice cases through the public sector. The long-term perspective provides the predictability to all stakeholders needed to unlock investments and support institution and capacity building and training. It is important to note that the renovation roadmaps are dynamic tools that will need to be adapted to future developments.”

It should be noted that MS must draft their national renovation strategies by 30 April 2014 and update them every three years as part of their National Energy Efficiency Action Plans (NEEAPs).

What is the timeline for the long-term strategy? Is it 2050?

Article 4 gives no specific timeline.  Recital 16 gives some indication and states: “Member States should establish a long-term strategy beyond 2020 for mobilising investment in the renovation of residential and commercial buildings with a view to improving the energy performance of the building stock. That strategy should address cost-effective deep renovations which lead to a refurbishment that reduces both the delivered and the final energy consumption of a building by a significant percentage compared with the pre-renovation levels leading to a very high energy performance. Such deep renovations could also be carried out in stages.”

Understandably, the timeline should be consistent with the Energy Roadmap 2050 published by the Commission. [1] As the Commission website states: “On 15 December 2011, the European Commission adopted the Communication "Energy Roadmap 2050". The EU is committed to reducing greenhouse gas emissions to 80-95% below 1990 levels by 2050 in the context of necessary reductions by developed countries as a group. In the Energy Roadmap 2050 the Commission explores the challenges posed by delivering the EU's decarbonisation objective while at the same time ensuring security of energy supply and competitiveness. The Energy Roadmap 2050 is the basis for developing a long-term European framework together with all stakeholders.”

Are they obliged to implement them?

There is no specific obligation to implement the long-term renovation strategy that is developed and sent to the Commission. Recital 17 of the Directive states that the rate of renovation needs to increase and it goes on to mention that there is an obligation to renovate central government buildings. Understandably, MS need measures to meet their 2020 targets and it is hoped that the renovation strategy will provide sufficient evidence for MS to take stronger, more ambitious measures.

In its guidance document for implementation, the Commission simply states: “Moreover, the Directive requires Member States to establish and publish by 30 April 2014 their long term strategies for building renovation, a crucial obligation given that nearly 40% of final energy consumption is in houses, public and private offices, shops and other buildings.”

Who will monitor the implementation?

Implementation of any renovation strategy is a national responsibility; however, the long-term strategy that must be sent to the Commission will be reviewed by the Commission.

Who will determine whether they are ambitious enough?

The strategy needs to fit within the MS approach to meeting its 2020 targets.  Article 4 states:

This strategy shall encompass:

(a) an overview of the national building stock based, as appropriate, on statistical sampling;

(b) identification of cost-effective approaches to renovations relevant to the building type and climatic zone;

(c) policies and measures to stimulate cost-effective deep renovations of buildings, including staged deep renovations;

(d) a forward-looking perspective to guide investment decisions of individuals, the construction industry and financial institutions;

(e) an evidence-based estimate of expected energy savings and wider benefits.

Will the cost-optimality calculation from the EPBD be used in determining the level of ambition?

It is not stated.  As stated in the previous question, the Directive mentions cost-effective approaches and does not refer to cost optimality.

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[1] Communication from the Commission, Implementing the Energy Efficiency Directive – Commission Guidance, COM(2013) 762 final.