Explanatory Memorandum to COM(2001)226 - Energy performance of buildings

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dossier COM(2001)226 - Energy performance of buildings.
source COM(2001)226 EN
date 11-05-2001
1. Introduction

In its Green Paper 'Towards a European Strategy for Energy Supply' i the Commission highlighted three main points:

- The European Union will become increasingly dependent on external energy sources; enlargement will reinforce this trend. Based on current forecasts, if measures are not taken, import dependence will reach 70% in 2030, compared to 50% today.

- At present, greenhouse gas emissions in the European Union are on the rise, making it difficult to respond to the challenge of climate change and to meet its commitments under the Kyoto Protocol. Moreover, the commitments made in the Kyoto Protocol must be regarded as a first step; climate change is a long-term battle involving the entire international community.

- The European Union has very limited scope to influence energy supply conditions. It is essentially on the demand side that the EU can intervene, mainly by promoting energy savings in buildings and in the transport sector.

These observations provide strong reasons to economise the use of energy wherever possible. The residential and tertiary i sectors have been shown to be the largest overall end users, mainly for heating, lighting, appliances and equipment. Numerous studies and practical experience show that there is a large potential for energy savings here, probably larger than in any other sector i. Member State and Community efforts to realise this potential need, therefore, to be intensified.

The Green Paper concludes in this regard that, in general, the Community programmes for the support and promotion of new technologies have not succeeded to bring about the application of new standards on energy efficiency in buildings in many Member States. Therefore, more emphasis should now be placed on concrete measures such as the establishment of a clear legislative framework to reduce growth in demand.

The scope for energy saving in the buildings sector and possible measures to realise the large potential here have also been important topics in the European Climate Change Programme i.

Community action also makes the issue of energy demand management and energy savings a commitment in Candidate countries where, in general, a very large potential for energy savings exists in the residential and tertiary sectors.

1.

2. Objective and Scope of Proposed Directive


The basic objective underlying this draft Directive is to promote the improvement of the energy performance of buildings within the EU, ensuring in so far as possible that only such measures as are the most cost-effective are undertaken.

Given the low turn-over rate of buildings (lifetime of 50 to more than 100 years) it is clear that the largest potential for improving energy performance in the short and medium term is in the existing stock of buildings. The proposed Directive lays down a framework that will lead to increased co-ordination between Member States of legislation in this field. The practical application of the framework, however, will remain primarily the responsibility of the individual Member States.

The proposal covers four main elements:

A) Establishment of a general framework of a common methodology for calculating the integrated energy performance of buildings.

B) Application of minimum standards on the energy performance to new buildings and to certain existing buildings when they are renovated.

C) Certification schemes for new and existing buildings on the basis of the above standards and public display of energy performance certificates and recommended indoor temperatures and other relevant climatic factors in public buildings and buildings frequented by the public.

D) Specific inspection and assessment of boilers and heating/cooling installations.

2.

A common methodology for integrated energy performance standards


There is a strong tendency towards an integrated approach in building standards and codes that are being developed in and outside the EU (e.g. in the U.S., Australia, Canada and New Zealand). Such an approach can integrate, in addition to the quality of insulation of the building, heating installations, cooling installations, energy for ventilation, lighting installations, position and orientation of the building, heat recovery, active solar gains and other renewable energy sources. With today's highly insulated new buildings and the trend towards low energy houses, these additional factors play an increasingly large role and should therefore be included in regulatory provisions. Such an integrated approach will give more flexibility to designers to meet energy reduction standards in the most cost-effective way. An integrated approach for the energy performance of buildings has to varying degrees already been applied in D, F, UK, I and NL and some other Member States intend to do the same. In some cases it is mandatory. A common approach on this basis would contribute to a more level playing field as regards the efforts made by Member States to achieve energy savings in the buildings sector. It would also facilitate the comparison of buildings throughout the EU for prospective users and make it easier for designers and constructors to apply standards in other Member States.

A common methodology could then form the basis for integrated minimum energy performance standards for different building categories to be adopted by the Member States, reflecting local circumstances, particularly climatic differences.

3.

Application of these standards to new buildings and to certain existing buildings when they are being renovated


New residential buildings and dwellings as well as new buildings in the tertiary sector should meet the minimum energy performance standards based on an integrated methodology. Furthermore these standards should also be applied to larger (i.e., greater than 1000 m2) existing buildings, when the buildings undergo larger renovations. It should be noted that the indoor climate conditions should be given due consideration when these standards are applied.

4.

Certification schemes for new and existing buildings on the basis of the above methodology


One of the main reasons for market imperfections as regards investment in energy efficiency on the rental market is the fact that the owner and renter of a building, dwelling or office have different interests. As the renter normally pays the energy bill, the incentive for the owner to invest in energy efficiency is weak. The best way to make these investments more attractive is to provide clear and reliable information to prospective renters. Clear information will influence the rent that can be asked and therefore will be an incentive for owners to make investments in the energy efficiency of buildings and houses. Therefore, to facilitate the transfer of this information on the energy performance of buildings and apartments, energy certificates for new and existing buildings and dwellings should be available when these are constructed, sold or rented out. This certification, which should not be more than 5 years old, should be based on the same integrated approach as used for the minimum standards for new buildings and should include accompanying advice on how to improve the energy performance of the building.

In the case of public authority buildings and certain privately owned or occupied buildings frequented by the public, energy certificates not more than 5 years old must be prominently and permanently displayed for the public. Public authority buildings and buildings frequented by the general public are able to demonstrate efficient technology and to set examples by incorporating energy efficiency measures into the renovation of such buildings. Appropriate measures can make the public aware of the energy performance of these buildings and also provide recommendations to improve them. This is best done by means of a certification procedure.

In addition, for public authority buildings and buildings frequented by the general public, in order to inform the public and to promote the proper use of heating, air-conditioning and ventilation systems, certain information should be clearly displayed.

The displayed information should include the range of indoor temperatures and, when local climatic conditions require it, other relevant climatic factors such as relative humidity, that are recommended by the authorities for that specific type of building. This will help to avoid unnecessary use of energy and to safeguard comfortable indoor climatic conditions (thermal comfort) in relation to the outside temperature.

The current inside temperature and, when appropriate other relevant climatic factors, should also be displayed and indicated by means of a reliable device or devices.

Certification for new buildings is at present mandatory in DK, D and UK. For existing buildings, only Denmark has a mandatory scheme but several Member States have voluntary programs.

In Denmark, a calculation on the basis of the database of 3.5 years of certification of 160,000 houses showed a total cost of the certification of ca 25 MEUR and identified potential savings measures of ca 125 MEUR. These measures reduced the costs for energy for the consumers by 20MEUR each year. In this particular case, certification, together with the implementation of identified measures, provided a more than 13 % return on investments.

5.

Specific inspection and assessment of heating/cooling installations


Heating installations are recognized to be a key issue as regards energy efficiency. Boilers with an effective output of more than 10 kW, the power necessary for smaller households with accumulation capacity, up to boilers for blocks of flats, offices, etc. should be regularly inspected to improve their operating conditions. Such an inspection is compulsory in 10 Member States whilst the others apply voluntary schemes and information programs.

In the case of boilers more than 15 years old, the entire heating installation should be inspected and advice should be given to the users on alternative solutions which could reduce energy consumption.

Similar measures need to be taken as regards cooling systems, in particular in larger buildings.

6.

3. Energy consumption in the buildings sector


The total final energy consumption in the EU in 1997 was about 930 Mtoe. A simplified breakdown of this demand shows the importance of buildings in this context: 40.7 % of total energy demand is used in the residential and tertiary sectors, most of it for building-related energy services (see Table 1). It should also be pointed out that approximately 10 % of the consumed energy in buildings comes from renewable energy sources (RES).

Space heating is by far the largest energy end-use of households in Member States (57%), followed by water heating (25 %). Electrical appliances and lighting make up 11% of the sector's total energy consumption (see Figure 1). For the tertiary sector (see Figure 2 ) the importance of space heating is somewhat lower (52 % of total consumption of the sector), while energy consumption for lighting and office equipment and 'other' (which is mainly office equipment) are 14% and 16%, respectively.

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Figure 1: Energy consumption in the residential sector i

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Figure 2: Energy consumption in the tertiary sector i.

>TABLE POSITION>

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4. Potential savings through energy efficiency measures in the building sector


8.

4.1 Scope of the initiative


Aspects of energy in buildings used for heating, hot water, cooling and lighting purposes will be addressed in the present initiative. It should be noted that this document covers the building envelope, including windows, and installed equipment such as heating, air-conditioning and ventilation. It does not cover measures for non-installed equipment such as domestic appliances (including cooking ), which together are responsible for 18% of the total energy consumption in the residential sector. In the tertiary sector, lighting, which accounts for 14% of the sector's energy consumption, is for the most part installed equipment and therefore included. Non-installed equipment is estimated to account for around 20% of the tertiary sector's consumption, due partially to the large share of office equipment. For non-installed equipment, specific policies such as labelling, mandatory minimum efficiency requirements, voluntary agreements, etc. have been implemented or are envisaged in the Action Plan for Energy Efficiency i.

9.

4.2 Global savings potential


As regards energy in buildings that is used for heating, hot water, air-conditioning or lighting purposes, a savings potential i of around 22% of present consumption is estimated to exist and can be realised by the year 2010 i. As stated in the European Climate Change Progress Report, this figure has been based on the assumption of a normal rate of retrofitting and rehabilitation for existing buildings, a net increase in the building stock of around 1.5%/year, and a successively increasing share in the use of best available technologies in buildings i.

In its Green Paper 'Towards a European Strategy for Energy Supply' i the Commission re-states the indicative target from the Council Resolution of 7 December 1998 i: to improve energy intensity of final consumption by a further 1 percentage point per year over that which would have been otherwise attained. For the building sector, meeting this indicative target would result in avoided energy consumption of over 55 Mtoe, equivalent to avoided CO2 emissions of around 100 Mt/year or around 20 % of the EU Kyoto commitment. Meeting this target would also realise two-thirds of the available savings potential in the sector, while making allowance for price fluctuations and possible 'rebound effects' i. However, for this to be achieved effective action is required.

10.

4.3 Savings potential through improvements of the building envelope


In 1995 there were approximately 150 million residential dwellings in the 15 EU Member States. About 32 % of the current stock was built prior to 1945, about 40 % between 1945 and 1973-75, and about 28 % since 1973-75 i. On average 56 % of the residential buildings are owner-occupied, ranging from almost 40% in Germany to almost 80% in Spain. 66% of the dwellings in the EU-15 are in single family houses, with 80 % and more in Germany, Ireland, Luxembourg and the United Kingdom.

The most recent available EUROSTAT survey on residential energy consumption (published in 1999) shows significant differences in terms of insulation measures carried out among Member States, connected partially but not wholly to the varying climatic conditions between countries. Measures implemented are shown in table 2. The figures indicate the percentage of those participating in the questionnaire who had implemented measures i.

11.

Table 2: Thermal insulation and glazing in some EU Member States


>TABLE POSITION>

While there has been some improvement compared with the results of earlier surveys, large differences remain between Member States.

The current average heat loss in the EU for new buildings is presently about half of what it is for the pre-1945 housing stock i. The total energy used in new dwellings is 60 % of that used in old dwellings. An upgrade of thermal insulation regulations and improved efficiency for installed equipment for existing dwellings, bringing them close to current buildings codes, would help to realise this important savings potential, making it a very desirable and in most cases a cost-effective option.

A comparison of thermal building regulations in the European Union has been carried out. The comparison below shows that rather extreme differences exist in building regulations even after these have been made comparable by correcting for climatic differences using so-called 'degree days'.The comparison is made by using the model building regulation of Denmark and applying it to each Member State after climatic correction. Consumption as measured by the application of this model building code is, in many cases, dramatically lower than with existing national thermal insulation codes (see Figure 3).

Figure 3: Energy consumption in Member States according to their existing national building regulations compared to the Danish model regulation adjusted for climatic differences i i.

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Figure 3 illustrates that a European initiative intended to improve the energy performance of buildings by promoting improved Member State thermal insulation regulations to a level already attained by some Member States could result in substantial energy savings for the EU as a whole.

It should also be pointed out that the above calculations are based on the assumption that the theoretical standards are effectively applied in practice.

12.

4.4 Savings potential of boilers


Directive 92/42/EEC has introduced minimum efficiency requirements for residential hot water boilers, thus ensuring that all new boilers have a reasonable efficiency. However, SAVE studies have indicated that there are, in the EU, more than 10 million boilers more than 20 years old. The savings potential which could be realised by the replacement of these old boilers is calculated by itself to result in reduced consumption by over over 10 Mtoe or around 5% of the energy used for heating in the residential sector.

The annual overall efficiency of boilers is improved by the correct matching of the boiler to the heating installation (radiator system), by reducing stand-by losses, by the use of control devices and by the correct sizing of the boiler for the building and climate. Old boilers have much lower nominal and part-load efficiencies and most of them are oversized for various reasons, including the economic incentive for the installer to promote larger and more expensive boilers. The combination of oversizing, high stand-by losses and low efficiency results in an overall efficiency which is 35% below that of new boilers, which are properly dimensioned and installed, and which comply with existing EU minimum efficiency standards.

It should be pointed out that the benefit of a new, modern boiler, assessed only on the basis of its nominal efficiency, is often not sufficient to justify the cost of replacement of a boiler which is still running. An integrated calculation should therefore be made which includes the above-mentioned factors in the life-cycle cost of the new boiler and in the alternative cost (and risk) of retaining the existing boiler.

13.

4.5 Savings potential of other installed equipment


Lighting consumes about 9 Mtoe, or around 4% of total energy in the residential sector, where the majority of lighting fixtures are not permanently installed in the building. In the tertiary sector, where the large majority of lighting is provided by fluorescent lighting which is installed in the building, lighting consumes around 18 Mtoe, or 14% of the sector's energy, as has been pointed out. A large potential savings exists in lighting, especially in the tertiary sector. Savings in the order of between 30% and 50% could be achieved with the use of the most efficient components, the use of control systems and the integration of daylighting and related technologies. These savings, of between 6 Mtoe and 9 Mtoe, represent a significant share of the available potential in the building sector. The recently launched EU GreenLight Programme demonstrates that most of the energy savings in lighting are highly cost-effective.

Air-conditioning is a rapidly growing consumption activity in the residential and tertiary sectors. The total consumption of energy for air-conditioning, which is about 3 Mtoe, or 0,7% of total final energy consumption in the two sectors combined, will double by 2020 if current trends persist. The cost-effective savings potential is about 25%. Much could be achieved by 2010 if the right policy measures are in place at an early stage, including minimum efficiency requirements for air-conditioning equipment.

14.

4.6 Potential for environmentally-friendly energy generation installations


In many buildings, there is a promising potential for reducing CO2 emissions and saving energy by means of an integrated approach, whereby traditional energy savings on the building envelope are combined with environmentally-friendly energy generation. While this sort of energy generation could in many cases be decentralised and on-site, connection to existing district heating/cooling networks can also be an important means to improve a building's overall energy performance.

Environmentally-friendly energy generation installations relevant to the buildings sector can broadly be divided into three main groups:

* Renewable energy sources

* Combined heat and power (CHP) and district heating/cooling

* Heat pumps (only in specific cases and under certain conditions)

15.

Renewable energy sources (RES)


On 10 May 2000 the Commission adopted a proposal for a Directive on the promotion of electricity from renewable energy sources i, which was taken as a matter of priority by The European Parliament and the French and Swedish Presidencies. It is expected that in 2001 this proposal will result in a regulatory framework for electricity from renewable energy sources, including indicative targets for the Member States.

The present proposal addresses the specific potential benefits of integrating RES installations into buildings, covering not only electricity but, equally important, heat generation.

The Green Paper 'Towards a European Strategy for the Security of Energy Supply' i underscores the importance of developing new and renewable energy sources. It cites the White Paper on RES i, which estimates that a total installed capacity of 100 million m2 of solar collectors can be achieved by 2010 (the installed capacity was 9,0 million m2 in 1998 i). In a follow-up report on the White Paper i, which contains more detailed break-downs of the different sectors and technologies, it has been estimated that a large proportion of these solar collectors could be for domestic hot water production (50%), space heating (11 %) and large collective solar heating systems (19%), all relevant to the buildings sector. Photovoltaics is expected in the White Paper to contribute with a total installed capacity of 3000 MWp by 2010 (from today's level of around 200 MWp ) of which most is expected to come from grid connected installations integrated into the structure of the buildings (roofs or facades). To reach this potential, however, there is a need for more effective measures and incentives i.

With regard to biomass, solid biofuels such as logwood, woodchips and pellets are already used, in particular in the residential sector, for heating and hot water. The applications can be both for individual single-family heating and central heating units in large buildings and apartment blocks and, according to the above-mentioned follow-up report on the White Paper, they can provide substantial capacity by 2010 .

16.

Combined heat and power (CHP) and district heating/cooling


Combined heat and power (CHP), suitable for individual buildings and groups of buildings, is another generation technology, which can make a positive contribution to the overall energy performance of a building. Due to the efficient use of the fuel used i both for electricity and heat production, CHP is an energy-efficient solution that saves fuel and thereby also contributes to reducing CO2 emissions.

Increased use of CHP in the buildings sector could make a major contribution to meeting the indicative Community target of doubling the total share for CHP electricity production to 18% by 2010 i. CHP is applicable mostly in larger buildings such as apartment blocks, hospitals, hotels, leisure centres, airports, shopping centres, and other large office buildings. In the medium to long-term, micro cogeneration units for installation in the residential sector may also offer an additional potential. Connection to existing district heating or cooling networks will often offer an energy efficient option to meet the heating or cooling demand of a building. Where such systems are in operation, connecting more buildings to the network must be a priority. District heating/cooling is also a supply option to consider when planning and developing new residential areas.

17.

Heat pumps


Heat pumps are yet another supply option, which, under certain circumstances, could contribute positively to saving energy in buildings. Heat pumps can have high efficiencies and are applicable in some cases both for single and multi-family dwellings for space heating. Apart from Sweden, the market penetration for heat pumps in most EU countries is modest. The high investment costs compared with other technologies are seen as a major barrier but costs are falling and efficiencies improving.

Promotion of decentralised energy generation in buildings should for all three of the above categories be carried out in a way whereby both demand and supply measures are analysed in an integrated manner. For example, use of energy-efficient or CO2-free supply forms in buildings with very poor insulation should generally not be encouraged.

18.

4.7 Savings potential in terms of building design and orientation: The bioclimatic dimension


It is estimated that taking full account of existing bioclimatic or ecological dimensions when designing and locating buildings can reduce energy requirements significantly over the lifetime of a building. In certain cases, buildings which already meet high thermal insulation standards can reduce energy demand by up to 60 % by using proper passive solar design, optimised active solar systems for domestic hot water and space heating, improved daylighting and natural cooling and solar/glare control. New buildings can be constructed in this manner with one-fourth of present space heating requirements i. Even with existing buildings, where the design and location are already fixed, this savings potential can be significant if favourable conditions exist and are properly exploited .

The concept of bioclimatic design and construction includes strategies for enhancing all physical parameters and improving heating, cooling, ventilation and lighting.

A strategy for heating and cooling implies that measures are taken which, for example, maximise the use and accumulation of passive solar heat during the heating season or minimise it during the cooling season, depending on the relative lengths of the two. It includes such factors as positioning the house in such a way as to design and expose the maximum external surface area possible to the sun (or, for cooling, to protect it from the sun). It also includes taking into account prevailing wind conditions, potential and existing shading from trees, and heating and cooling accumulation potentials of surrounding terrain and bodies of water, for heat/cooling pumps and similar uses.

A strategy for lighting includes optimising the use of natural daylight to complement and reduce the need for artificial lighting. This is done by allowing for the use of daylighting techniques, including the geometry of windows, light diffusion, prism technology and similar measures.

19.

4.8 Concluding remarks


Energy savings in the buildings sector involves many different economic and technical aspects as described above. In several Member States these aspects have been integrated into a single system to describe the energy performance of a building. With such an integrated approach the different aspects that should be incorporated into the standards for new buildings can be expressed in simple energy performance indicators. Moreover, such an approach allows added flexibility regarding details, giving designers greater choice in meeting minimum standards. In order to achieve a certain degree of harmonisation of assessment of buildings for designers and users throughout the EU, a common methodology based on such an integrated approach should be pursued.

While all Member States apply minimum standards, especially for new buildings, considerable differences exist in the level of energy performance required in these standards. These differences indicate a large potential for improvement and the need for measures to be taken to realise this potential in the most cost-effective way.

Nevertheless it should be recognised that the largest potential for energy saving is in the renovation of existing buildings. In order to address this issue, the most appropriate measure seems to be to introduce certification of buildings in order to raise awareness, and at the same time remedy the major market imperfection that owners have no incentives to invest in buildings they rent out. Special attention should be given to the effective replacement of heating installations. Moreover, buildings should meet higher standards as regards energy performance when they are renovated. As educational information to the general public, the certification of public authority buildings or certain other buildings with high energy consumption which are frequented by the public should be displayed in the buildings, along with recommended and current indoor temperatures and relevant climatic factors.

20.

5. Justification for action at Community level


21.

5.1 Current political context


Art.2 of the EC Treaty calls for a sustainable development of the economy of the Community. Art.6 of the EC Treaty reinforced these objectives of sustainable development by integrating environment policy into other Community policies. The Cardiff European Council in 1998 reaffirmed the need for integration of environment into energy policy. Art. 175 sets the framework for adopting measures with environmental objectives.

The UN Framework Convention on Climate Change requires the parties to adopt policies and to take measures to reduce and limit greenhouse gas emissions in order to stabilise their emissions by 2000 at the 1990 level. This non-binding commitment has been supplemented by the Community 8% reduction commitment as laid down in the Kyoto Protocol of 1997. Whereas the building sector can already provide a substantial contribution to the Community efforts to meet the Kyoto target in the relatively few years left before 2012, it should play an even more important role in the period beyond 2012, where the Commission's proposal for a Sixth Environmental Action Programme foresees a 20-40 % reduction by the year 2020. On 8 March 2000, the Commission adopted the Communication on 'EU policies and measures to reduce greenhouse gas emissions: Towards a European Climate Change Programme (ECCP)' i. The ECCP is based on the May 1999 Communication 'Preparing for implementation of the Kyoto Protocol' i and follows up suggestions originally given by the Environment Council in June 1998 and in October 1999. The latter urged the Commission to put forward a list of priority actions for common and co-ordinated policies and measures as early as possible in 2000 and to prepare appropriate policy proposals.

In view of the expected increase in emissions in the absence of further measures and the challenge that the majority of Member States may face in meeting their commitments under the EU burden sharing agreement, a reinforcement of policies and measures at EU level becomes an important supplement to national climate strategies.

In its 'Green Paper on the security of energy supply' i the Commission outlines the prospective energy situation in the EU for 2010 and beyond. One of the essential observations in this Communication is that the EU will in the short and medium term have a decreasing possibility to influence the supply side of energy. However as the EU is one of the main consumer areas it should do its utmost, notably on the demand side, to reduce the strong dependence on external suppliers.

The informal ECOFIN Council in its meeting on 9 September 2000 stressed the need for acceleration of the implementation of EU action plans in the field of energy savings measures and diversification in order to reduce the oil dependency of our economies.

In response to the Commission's Action Plan on Energy Efficiency, the Energy Council has adopted two Conclusions during the year 2000. One was adopted on 30 May 2000 and the other on 5 December 2000 i i. In both the Commission is invited to undertake initiatives, notably in the residential and tertiary sectors, including building certification, improved thermal insulation and improved installed equipment and other installations.

22.

5.2 Additional impact of action at Community level


Under paragraph 4.3 above, the substantial differences which exist between the performance of Member States in the field of energy savings in the building sector have been displayed, along with the most promising measures.

Therefore, the proposal for a new legally binding instrument must be seen in the light of the objective of increasing energy performances of buildings in all Member States in the European Union. Reduction of Co2 emissions and security of energy supply are issues of common responsibility for the Member States and therefore a legal initiative at Community level is justified. In some Member States the current building standards date from the late seventies whilst others have recently made substantial improvements in this important sector. It should, therefore, be emphasised that as a first step one of the purposes of this proposal is to achieve a convergence of building standards, including thermal insulation standards towards those of Member States which already have relatively ambitious levels.

The target of improved energy efficiency in buildings has already been set out in earlier existing legal instruments. Among the main existing Community legislation for the building sector are the 'Boilers Directive' (92/42/EEC), the 'Construction Products Directive' (89/106/EEC) and the 'buildings' articles in the 'SAVE' Directive 93/76/EEC.

The latter Directive requires Member States to draw up and implement programmes in six specific fields in order to improve energy efficiency. These programmes can be in the form of laws, regulations, economic and administrative instruments, information, education and voluntary agreements.

However, it should be pointed out that this 93/76 Directive was agreed in another political context, before the conclusion of the Kyoto Protocol and before the recent new doubts about the growing dependence of the EU on supply from other global actors. Although this Directive has made a contribution, it has not proven to be completely adequate in reaching the important objective of improving the energy performance of buildings to the degree which is judged to be economically and technically feasible.

The above developments underline the Community dimension of energy efficiency and justify the establishment of more concrete action at Community level that can complement or reinforce existing national measures in this field. It also should be pointed out that a Community approach will create an economy of scale in the internal market for products, components and installations that will improve energy performance of buildings. Moreover, where market imperfections make it necessary to intervene with legal measures such as mandatory certification for the promotion of energy efficiency, a Community approach will give a better guarantee for a level playing field for consumers and industry that e.g. occupy, rent, construct or sell those buildings in the internal market.

23.

5.3 Relevance of the initiative for the Accession Countries


In its 1999 survey of household energy consumption, EUROSTAT included many Central and Eastern European Countries i. In most of these CEE countries, more than two-thirds of the population live in urban areas. The share of owner-occupied dwellings is on average higher than in EU-15. It is often between 80 and 90 %, and only in Poland, the Czech Republic and Latvia is it lower than 55 %.

In most CEE countries the percentage of energy consumption used for space heating is more than 70 % of total household energy consumption. In most of these countries, central heating systems (either individual for each dwelling, collective for multi-family houses or district heating for blocks of buildings) are clearly the most common way of heating.

Especially buildings in large-panel construction, which were mostly constructed from the late 60's up to the 90's, are characterised by a very high heat demand, which is 2 to 3 times higher per square meter than that of the EU, mostly due to poor insulation standards.

The transformation of the economies of the CEECs has already led to a considerable increase in energy prices for households, especially for district heating. The realisation of the energy savings potentials in the building sector in these countries, in addition to environmental and security of supply benefits, is also important in reducíng the negative economic impact on household economies of price increases.

24.

6. Contents of the proposal


Article 1 defines the purpose and scope of the proposal.

Article 2 defines the terms and concepts used in the proposal.

Article 3 lays down the requirements for Member States to establish a methodology for an integrated calculation of the energy performance of buildings . A framework for such a methodology has been outlined in the annex to the proposed Directive.

Article 4 obliges Member States to set minimum standards for the energy performance of new buildings and to update them regularly; and to assess the feasibility of installing alternative energy supply systems for large new buildings.

Article 5 obliges Member States to apply the appropriate standards for energy performance to large existing buildings when these buildings undergo major renovations, provided certain cost and cost-effectiveness criteria are met.

Article 6 provides for an energy certificate not older than 5 years to be made available for buyers and renters of new and existing buildings at the point of construction, sale or rental. For public authority buildings and buildings frequented by the public such a certification should take place at least every 5 years and the energy certificate must be placed in a prominent place and made clearly visible to the general public In addition, for such public buildings, recommended indoor temperatures and, when appropriate other climatic conditions, should be clearly displayed along with indications of the actual current indoor temperature and climatic conditions.

Article 7 lays down specific requirements for a regular inspection of boilers connected to a one-off inspection and assessment of the total heating installation when these boilers have been installed more than 15 years.

Article 8 requires that central air-conditioning systems shall be regularly inspected.

Article 9 requires Member States to put in place a system that ensures that certification and inspection are carried out by qualified and independent personnel.

Articles 10 & 11 concern the comitology procedure for adapting the annex of the proposed Directive to technical progress or incorporating future agreed standards.

Articles 12& 13 concern the administrative provisions of the proposal.

The Annex to the proposal contains the main aspects to be taken into account when calculating the energy performance of buildings and requirements for inspection of boilers and central air conditioning systems.