Documents considered by the Committee on 21 January 2009 - European Scrutiny Committee Contents


6 Energy performance of buildings

(30196)

15929/08

+ ADDs 1-2

COM(08) 780

Draft Directive on the energy performance of buildings (recast)

Legal baseArticle 175(1)EC; co-decision; QMV
Document originated13 November 2008
Deposited in Parliament24 November 2008
DepartmentCommunities and Local Government
Basis of considerationEM of 9 January 2009
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

6.1 Directive 2002/91/EC aims to promote the cost-effective improvement of the energy performance of new and existing residential and non-residential buildings, covering energy needs for space and hot water heating, cooling, ventilation and lighting. Most of its provisions apply to all buildings, but some apply only to specific building types, and the Directive combines different regulatory and information-based instruments. Thus, it requires Member States to set minimum energy performance requirements, and to ensure that these are met by new buildings, and by existing buildings with a floor area above 1000m2 when these undergo major renovation, and it also requires them to establish arrangements for the issue and display of energy performance certificates, and for the inspection of boilers and air conditioning systems of a specified output. It does not, however fix Community-wide standards, allowing factors such as outdoor climate and individual building traditions to be taken into account by Member States.

6.2 The Commission notes that the comprehensive climate and energy package it put forward in January 2007, including a 20-20-20 reduction in energy consumption, greenhouse gas emissions and increased share of renewables by 2020, was endorsed by the European Council in March 2007, and it points out that the buildings sector — which it says is the largest user of energy and carbon dioxide emitter in the Community, responsible for 40% of consumption and emissions — has a significant untapped potential for cost-effective savings. It suggests that, if realised, these would result in the Community consuming 11% less final energy by 2020, leading to reduced energy bills and import dependency, and a positive impact on climate.

The current proposal

6.3 The current proposal, which has been put forward as part of the Second Strategic Energy Review,[39] is a re-cast of Directive 2002/91/EC. As such, it would retain many of the existing provisions, but it would also extend the scope of the Directive, and clarify and strengthen a number of its provisions. Thus, it would:

  • extend to all new buildings, irrespective of floor area, the requirement that the feasibility of alternative systems (such as cogeneration and district heating) should be considered before construction starts;
  • likewise, extend to all existing buildings, irrespective of floor area, the need to meet specified minimum energy performance requirements when they undergo a major renovation;
  • introduce minimum energy performance requirements for systems, such as boilers, water heaters and air conditioning installed in buildings;
  • require Member States to draw up national plans for increasing the number of new and refurbished buildings for which carbon dioxide emissions and primary energy consumption are low or equal to zero, setting targets for the minimum percentage (in terms of the number of buildings and floor area) to be achieved by 2020, with separate targets for residential, non-residential and public buildings, and intermediate targets for 2015;
  • introduce more specific requirements relating to the content of energy performance certificates, coupled with new requirements governing their issue when buildings are constructed, sold or rented, and where over 250m2 is occupied by a public authority;
  • reduce from 1000m2 to 250m2 the area above which such a certificate has to be prominently displayed if a building is occupied by a public authority, and introduce a similar requirement for any building above 250m2 which is frequently visited by the public;
  • extend the requirement on Member States to establish regular inspections of the boiler heating systems (which currently applies to those with an output between 20kW and 100kW and fired by non-renewable liquid or solid fuel) to include all boilers with an output greater than 20kW;
  • require reports to be provided regularly to owners or tenants of buildings on inspections of boilers and air conditioning systems, and oblige Member States to ensure that these are carried out independently by accredited experts, and subject to verification;
  • require Member States to establish penalties for infringements.

These changes would have to come into force by the end of 2010 for buildings occupied by public authorities, and by the end of January 2012 for all others.

6.4 The main change, however, would relate to the setting of minimum energy performance requirements by Member States. At present, these vary considerably, and the Commission says they are in many cases set at "far from cost-optimal levels",[40] resulting in a reduced opportunity for improving energy performance in an economic way. It has therefore proposed that the minimum requirements set by Member States should be gradually aligned with cost-optimal levels calculated in accordance with a methodology to be developed by the Commission by the end of 2010. This will include the variables shown in the footnote below, but Member States would be free to fix these. Initially, the aim would be to move actual requirements towards these cost-optimal levels, but Member States would be required to achieve those levels by 30 June 2017, and, as from 30 June 2014, they would no longer be able to provide incentives for the construction or renovation of buildings which did not meet them.

The Government's view

6.5 In his Explanatory Memorandum of 9 January 2009, the Parliamentary Under-Secretary of State at the Department for Communities and Local Government (Iain Wright) says that the majority of the proposals are in line with, or replicate, the measures which the UK has already adopted.[41] However, he points out that some — notably the establishment of a comparative methodology for calculating cost-optimal minimum energy performance, and the more extensive requirements for the display of energy performance certificates — would go much further, and he describes as "extremely challenging" the need for measures applying to buildings occupied by the public to be in place by the end of 2010. He also says that some of the definitions[42] in the proposal need to be clarified; that the financial implications, though not yet quantified, are likely to be significant, not least the need to provide an independent control system for energy performance certificates and inspections of heating and air conditioning systems; and that the Government will be able to produce an Impact Assessment once the proposals have been agreed.

Conclusion

6.6 The Minister has provided a extensive description of the provisions in the proposal, as well as of the ways in which the UK has implemented Directive 2002/91/EC, and we have noted that many of the additional, or amended, provisions now proposed are in line with what is already in place. Having said that, we also note that there are a number of uncertainties, partly in terms of specific definitions, but more particularly as regards the introduction of cost-optimal energy performance levels, and the provision of control systems for energy performance certificates and inspections of heating and air conditioning systems. We recognise that these uncertainties make it difficult at present to quantify the financial implications or to produce an Impact Assessment, but we are nevertheless concerned at the suggestion that such an Assessment should only be provided after the measure is adopted. In our view, a proper assessment is required before any such agreement is reached, and it is certainly something we should wish to see before we can consider clearing the proposal. In addition, we think it sensible to defer any such consideration until we have received more information on the progress of negotiations in Brussels.

6.7 Consequently, whilst we are drawing the proposal to the attention of the House, we intend to hold it under scrutiny, pending receipt of this further information.


39   (30198) 15944/08: see HC 19-iii (2008-09), chapter 2 (14 January 2009). Back

40   Described as the lowest level of costs during the life-cycle of the building, taking into account investment costs, maintenance and operating costs (including energy) and disposal costs. Back

41   Such as the Carbon Emissions Reduction Target and the Community Energy Savings Programme, announced by the Prime Minister in September 2008 as part of the Home Energy Savings Programme. Back

42   Such as what constitutes "a building", "energy performance", "life cycle" and "frequently visited". Back


 
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