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(1) Directive 2010/31/EU of the European Parliament and of the Council has been substantially amended several times . Since further amendments are to be made, that Directive should be recast in the interests of clarity.

(2) Under the Paris Agreement , adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) (the ‘Paris Agreement’), its Parties have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. Reaching the objectives of the Paris Agreement is at the core of the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (the ‘European Green Deal’). The Union committed itself to reducing the Union’s economy-wide net greenhouse gas emissions by at least 55 % by 2030 below 1990 levels in the updated nationally determined contribution submitted to the UNFCCC Secretariat on 17 December 2020.

(3) As announced in the European Green Deal, the Commission presented its Renovation Wave strategy in its communication of 14 October 2020 entitled ‘A Renovation Wave for Europe — greening our buildings, creating jobs, improving lives’. The Renovation Wave strategy contains an action plan with concrete regulatory, financing and enabling measures, with the objective to at least double the annual energy renovation rate of buildings by 2030 and to foster deep renovations, resulting in 35 million building units renovated by 2030 and the creation of jobs in the construction sector. The revision of Directive 2010/31/EU is necessary as one of the vehicles by which to deliver on the Renovation Wave. It will also contribute to delivering on the New European Bauhaus initiative, presented in the Commission communication of 15 September 2021 entitled ‘New European Bauhaus — Beautiful, Sustainable, Together’ and the European mission on climate-neutral and smart cities. The New European Bauhaus initiative is intended to foster a more inclusive society that promotes the wellbeing of all in keeping with the historical Bauhaus, which contributed to social inclusion and the well-being of citizens, in particular worker communities. By facilitating training, networks and providing guidelines to architects, students, engineers and designers under the principles of sustainability, aesthetics and inclusion, the New European Bauhaus initiative can empower local authorities to develop innovative and cultural solutions in creating a more sustainable built environment.

(4) Regulation (EU) 2021/1119 of the European Parliament and of the Council enshrines in Union law the target of economy-wide climate neutrality by 2050 at the latest and establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after the deduction of removals) of at least 55 % below 1990 levels by 2030.

(5) The ‘Fit for 55’ legislative package, announced by means of the Commission communication of 19 October 2020 entitled ‘Commission Work Programme 2021 — A Union of vitality in a world of fragility’, aims to implement those objectives. That package covers a range of policy areas including energy efficiency, renewable energy, land use, land change and forestry, energy taxation, effort sharing, emissions trading and alternative fuels infrastructure. The revision of Directive 2010/31/EU is an integral part of that package. Building on the ‘Fit for 55’ legislative package, the REPowerEU plan contained in the Commission communication of 18 May 2022 entitled ‘REPowerEU Plan’ put forward an additional set of actions to save energy, diversify supplies, quickly substitute fossil fuels by accelerating Europe’s clean energy transition and smartly combine investments and reforms. It contained new legislative proposals and targeted recommendations by which to increase ambition with regard to energy efficiency and savings. The communication also referred to taxation measures as means to provide incentives for energy savings and reduce fossil fuel consumption.

(6) Buildings account for 40 % of final energy consumption in the Union and 36 % of its energy-related greenhouse gas emissions while 75 % of Union buildings are still energy-inefficient. Natural gas plays the largest role in the heating of buildings, accounting for around 39 % of energy consumption used for space heating in the residential sector. Oil is the second most important fossil fuel for heating, accounting for 11 % and coal accounts for around 3 %. Therefore, reduction of energy consumption, in line with the ‘energy efficiency first’ principle as laid down in Article 3 of Directive (EU) 2023/1791 of the European Parliament and of the Council and defined in Article 2, point (18), of Regulation (EU) 2018/1999 of the European Parliament and of the Council and the use of energy from renewable sources in the buildings sector constitute important measures needed to reduce greenhouse gas emissions and energy poverty in the Union. Reduced energy consumption and an increased use of energy from renewable sources, especially solar energy, also have a key role to play in reducing the Union’s energy dependency on fossil fuels overall and on imports especially, promoting security of energy supply in line with the objectives set out in the REPowerEU plan, fostering technological developments and in creating opportunities for employment and regional development, in particular in islands, rural areas and off-grid communities.

(7) Buildings are responsible for greenhouse gas emissions before, during and after their operational lifetime. The 2050 vision for a decarbonised building stock goes beyond the current focus on operational greenhouse gas emissions. The whole-life-cycle emissions of buildings should therefore progressively be taken into account, starting with new buildings. Buildings are a significant material bank, being repositories for resources over many decades, and the design options and choices of materials largely influence the whole-life-cycle emissions both for new buildings and renovations. The whole-life-cycle performance of buildings should be taken into account not only in new construction, but also in renovations through the inclusion of policies for the reduction of whole-life-cycle greenhouse gas emissions in Member States’ national building renovation plans.

(8) Minimising the whole-life-cycle greenhouse gas emissions of buildings requires resource efficiency and circularity. This can also be combined with turning parts of the building stock into a temporary carbon sink.

(9) The global warming potential (GWP) over a building’s whole life cycle indicates the building’s overall contribution to emissions that lead to climate change. It brings together greenhouse gas emissions embodied in construction products with direct and indirect emissions from the use stage. A requirement to calculate the life-cycle GWP of new buildings therefore constitutes a first step towards increased consideration of the whole-life-cycle performance of buildings and a circular economy.

(10) Buildings are responsible for about half of primary fine particulate matter (PM 2,5 ) emissions in the Union that cause premature death and illness. Improving the energy performance of buildings can and should reduce pollutant emissions at the same time, in accordance with Directive (EU) 2016/2284 of the European Parliament and of the Council .

(11) Measures to improve further the energy performance of buildings should take into account climatic conditions, including adaptation to climate change, local conditions as well as the indoor climate and cost-effectiveness. Those measures should not affect other requirements concerning buildings such as accessibility, fire safety and seismic safety and the intended use of the building.

(12) The energy performance of buildings should be calculated on the basis of a methodology, which may be differentiated at national and regional level. That methodology should include, in addition to thermal characteristics, other factors that play an increasingly important role such as urban heat island effect, heating and air-conditioning installations, the use of energy from renewable sources, building automation and control systems, heat recovery from exhaust air or waste water, system balancing, smart solutions, passive heating and cooling elements, shading, indoor environmental quality, adequate natural light and design of the building. The methodology for calculating the energy performance of buildings should be based not only on the season in which heating or air-conditioning is required, but should cover the annual energy performance of a building. It should take into account existing European standards. The methodology should ensure the representation of actual operating conditions and enable the use of metered energy to verify correctness and for comparability, and should be based on monthly, hourly or sub-hourly calculation intervals. In order to encourage the use of on-site renewable energy, and in addition to the common general framework, Member States should take the necessary measures to the effect that the benefits of maximising the use of on-site renewable energy, including for other uses, such as electric vehicle recharging points, are recognised and accounted for in the calculation methodology.

(13) Member States should set minimum energy performance requirements for buildings and building elements with a view to achieving the cost-optimal balance between the investments involved and the energy costs saved throughout the life cycle of the building, without prejudice to the right of Member States to set minimum energy performance requirements which are more energy-efficient than cost-optimal energy efficiency levels. Provision should be made for the possibility for Member States to review regularly their minimum energy performance requirements for buildings in light of technical progress.