'Green homes', another EU maneuver to the detriment of the population
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On 12 April 2024, the Council approved the directive for 'green homes', already approved by the European Parliament on 12 March, to introduce the obligation of 'energy efficiency' of buildings to the detriment and expense of the population.
The 'merit' of Energy Performance of Building Directive (EPBD) goes to the majority of MEPs, who thus demonstrate that they favor the speculative interests of finance over the rights and freedoms of citizens. (1)
1) Energy efficiency of buildings
European Commission reports that buildings in the Union would be responsible for 40% of energy consumption and 36% of greenhouse gas emissions, while 75% of buildings would be inefficient from an energy point of view. To achieve the objective of a 'zero impact' Europe by 2050, the European Commission had therefore already announced in 2020, when presenting the Green Deal, the need to renovate European buildings.
The restructuring plan, defined as the 'new European Bauhaus', should even involve 35 million real estate units by 2030. The reduction in energy consumption and the increase in the use of renewable sources, especially solar energy, should obviously lead to the reduction of the energy dependence of the Union from fossil and imported fuels. In the illusion of solving the problem in a short time energy crisis induced by sanctions on Russia, relying on solar panels Made in China.
2) Energy performance of buildings
The definition energy performance is entrusted to the Member States, with all due respect to the general objectives of harmonization of EU rules. These performances will be calculated taking into consideration various factors including the 'urban heat island' effect, the type of heating and air conditioning system, the use of renewable sources, natural lighting, environmental quality and so on.
Member States will therefore adopt the 'minimum energy performance requirements' that buildings or real estate units must achieve within the time limits set out below:
- 1 January 2028, for public buildings
- January 1, 2030, for all other buildings
- immediately, for newly constructed buildings which must be zero-emission (new directive, article 7).
2.1) Roadmap
Energy performance of existing buildings will therefore have to be improved, until they satisfy the 'minimum energy performance requirements' established at EU level, with the measures that the Member States will adopt as 'necessary' to ensure that they are foreseen by the Member States themselves (art. 8) . As:
- 16% of non-residential buildings will have to meet the minimum energy performance threshold by 2030, 26% by 2033
- the average primary energy consumption for residential buildings will have to decrease by 16% compared to 2020 by 2030, by 20-22% compared to 2020 by 2035
- 55% of the reduction in average primary energy consumption will have to be achieved through the renovation of the 43% of the worst performing residential buildings.
A roadmap will have to be presented by the Member States for the progressive renovation of the building stock, both residential and non-residential, with specific deadlines for 2040 and 2050, the date on which all buildings must be 'zero-emission' (art. 9). The first proposal for a restructuring plan must be transmitted by the Member States to the Commission by 31 December 2025.
3) Solar panels on buildings and parking lots
The introduces precise objectives on the installation of solar panels: 'Member States shall ensure the installation of adequate solar systems, where technically appropriate and economically and functionally feasible, as follows:
a) by 31 December 2026, on all new public and non-residential buildings with a useful covered area exceeding 250 m2
b) on all public buildings with a useful covered area greater than:
i) 2.000 m2 by 31 December 2027
ii) 750 m2 by 31 December 2028
iii) 250 m2 by 31 December 2030
c) by 31 December 2027, on existing non-residential buildings with a useful covered area exceeding 500 m², if the building is undergoing a major renovation or an action requiring administrative authorization for building renovations, roof work or the installation of a technical building system
d) by 31 December 2029, on all new residential buildings, e
e) by 31 December 2029, on all new covered car parks adjacent to buildings (article 10).
4) Exemptions
The text of the directive provides for specific situations that justify the exemption from reaching the minimum efficiency thresholds for individual non-residential buildings. Member States can therefore decide to exclude buildings for which the works would be too difficult, or in case of a negative assessment of costs and benefits. And hopefully they will consider, among other things, the different sources of renewable energy (e.g. geothermal).
Further reasons to request exemption are the high historical or architectural value of the property, temporary buildings, churches and other places of worship. In order not to exempt a disproportionate number of buildings, Member States shall establish clear, precise and rigorous criteria for which exemption may be requested and allow for an ex ante assessment of the potential share of buildings that would be affected.
5) Cost simulation
Creams in collaboration with the Symbola Foundation, Assimpredil Ance and the European Climate Foundation presented the report 'The value of living. The challenge of energy requalification of the Italian building heritage', where the costs and benefits of energy efficiency of Italian real estate are presented. Which is the first in Europe with over 12 thousand residential buildings and 32 million homes.
The improvement the energy performance of properties of just two energy classes, for example, is estimated to require between 260 and 320 billion euros. The president of Assimpredil Ance, Regina De Albertis, states that 'adequate fiscal incentives' will be necessary and remodulated based on the interventions to be carried out. (2) However, neglecting the lack of influence of tax credits for the growing share of the European population which today finds itself in conditions of fiscal insufficiency, due to the mass poverty induced by the war economy desired by the European and Member State leaders. (3)
6) Good and bad news
The good news is that the improvement of energy performance allows the improvement of the quality of life of people inside public and private buildings. With a possible average reduction of 40% in family energy consumption, although their costs remain unpredictable due to various factors on top of which the shameful speculations of the energy giants who have already grinded out extra tax-free profits to the detriment of the European population, in recent two years.
The bad news is that the vast majority of MEPs, including Italian ones, with the support of the governments of the member states, have rendered yet another service to real estate finance. Being careful not to provide specific allocations (promised in vain in the Green Deal) so that the public sector, and not the population, faces the trillions of euros of investments envisaged in the 'green homes' directive. It is highlighted that the obligation to improve energy efficiency in forced stages constitutes a serious limitation to the human right to private property.
7) Adding insult to injury
Finance always wins. Since the energy crisis has forced the European industry to relocate production, and the business of incentives on electric cars has therefore decreased, the policy at the service of finance has hit brick and mortar, still the primary destination for private savings in Italy.
Citizens and/or consumers who have saved their entire lives to buy their first home will thus find themselves forced to take out new mortgages to adapt to the new rules, or in any case suffer a considerable loss in the value of their properties. Excellent news for credit, real estate and construction finance.
#Shame! #PeaceEarthDignity
Dario Dongo
On the cover «Prix de l'immobilier», Dave Graniund, www.davegranlund.com
Note
(1) The proposal for a directive on energy performance in buildings was approved by the European Parliament on 12 March 2024, with 370 votes in favour, 199 against and 46 abstentions. The last-minute negative vote by Italy and Hungary, as well as the abstention by the Czech Republic, Croatia, Poland, Slovakia and Sweden, turn out to be a pre-election sham, after the governments themselves have joined the development of the directive at the expense of European citizens https://www.europarl.europa.eu/doceo/document/TA-9-2024-0129_IT.html
(2) Symbola Foundations. The value of living. The challenge of energy requalification of the Italian building heritage. https://symbola.net/approfondimento/il-valore-dellabitare-la-sfida-della-riqualificazione-energetica-del-patrimonio-edilizio-italiano/
(3) Already at the dawn of the war in Ukraine, 22% of the European population was at risk of poverty and social exclusion, according to Eurostat. And the situation is getting worse unnecessarily. See point 3.D of political program by Dario Dongo, candidate in the European elections of 6-9 June with the Peace, Land and Dignity movement
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Graduated in Law from the University of Bologna, she attended the Master in Food Law at the same University.
