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Impact of climate policy on the housing sector in Europe

Question écrite de M. Kosma ZŁOTOWSKI - Commission européenne

Question de M. Kosma ZŁOTOWSKI,

Diffusée le 9 octobre 2023

Subject: Impact of climate policy on the housing sector in Europe

Europe as a whole is battling with the problem of insufficient housing and ever-growing construction costs. This is the result of rising prices of building materials and green policies that impose strict environmental standards on construction. Following calls from the German construction industry, arguing that it was not cost-effective to build housing under strict environmental and energy-related requirements, Chancellor Olaf Scholz has announced that the federal government is abandoning the tightening of energy standards for new buildings and planning to temporarily withdraw from the EH40 standard. In addition, Germany has said it opposes the proposed EU legislation on the modernisation of buildings1. The UK, too, has scaled back its climate ambitions, including in construction, so as to relieve the pressure on its citizens.

1. Does the Commission see a trend among European countries which, as a result of the negative effects of hastily implemented climate policies, are relaxing their legislation, and does it therefore also intend to revise the Energy Performance of Buildings Directive2, in order to strike a balance between tackling the housing crisis in the EU and the climate protection targets, which today are too ambitious and place a huge burden on European citizens?

2. Does the Commission not think that strict and costly requirements in construction are contrary to Article 31 of the European Social Charter3, which requires the price of housing to be made accessible to those without adequate resources?

Submitted: 10.10.2023

1 https://www.reuters.com/markets/europe/germany-unveils-relief-measures-prop-up-construction-industry-

2023-09-25/?fbclid=IwAR3ukfHIWtVN7Xxbriwz_09CfPTT6uKlPOidwb17ib7gV_Ca5DEN2s_fXps 2 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52021PC0802 3 https://rm.coe.int/168007cf93

Réponse - Commission européenne

Diffusée le 4 décembre 2023

Answer given by Ms Simson on behalf of the European Commission

(5 December 2023)

The Commission does not comment on political discussions in Member States.

A revision of the Energy Performance of Buildings Directive (EPBD) (4) is currently under negotiation by co-legislators. The Commission is very aware of the need to strike a balance between housing requirements, tackling the climate crisis and reducing the EU’s dependency on Russian gas.

Requirements in construction are evaluated every five years by Member States through the Cost-optimal methodology framework (5). Member States have to ensure that the energy requirements in new and renovated buildings are at least cost- optimal.

Member States can adjust their ambition, based on political decisions at national level, provided that the requirements are at least cost-optimal.

The current EPBD requirements are in line with Article 31 of European Social Charter, also highlighting the need to promote access to housing of an adequate standard.

In addition, the Commission has significantly stepped up the funding available for renovations, namely through the Social Climate Fund (6), the Recovery and Resilience Facility and programmes (7) available under the current Multiannual Financial Framework.

1 ∙ ⸱ https://www.reuters.com/markets/europe/germany-unveils-relief-measures-prop-up-construction-industry-2023-09-25/?

fbclid=IwAR3ukfHIWtVN7Xxbriwz_09CfPTT6uKlPOidwb17ib7gV_Ca5DEN2s_fXps 2 ∙ ⸱ https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52021PC0802 3 ∙ ⸱ https://rm.coe.int/168007cf93 4 ∙ ⸱

Directive 2010/31/EU on the Energy Performance of Buildings (recast), OJ L 153, 18.6.2010, p. 13-35. 5 ∙ ⸱ Article 5 of Directive 2010/31/EU on the Energy Performance of Buildings (recast). The cost-optimal framework considers the costs of installation, maintenance, de-installation as well as energy savings over the lifetime of the building or building systems. The framework also considers financial costs, inflation, and energy costs, including possible changes overtime. Member States must use national data on costs for buildings and building elements. 6 ∙ ⸱ The Fund should provide funding to Member States to support measures and investments in increased energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration of energy from renewable sources to principally benefit vulnerable households and micro- enterprises. 7 ∙ ⸱

In the 2021-2027 Multiannual Financial Framework, it is estimated that around EUR 110 billion from the EU budget (including Modernisation Fund and European Investment Bank financing) will be dedicated to building renovation.













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