12 February 2025
roadmap
austria
The impact of the Energy Performance of Buildings Directive on cities and municipalities
The new EU Energy Performance of Buildings Directive (EPBD), adopted in early 2024, represents a crucial step towards sustainability and energy efficiency in Europe. This Directive is a key component of the broader climate goals of the European Union, which aims for climate neutrality by 2050. The construction sector plays a central role in this context, as it is responsible for about 36 % of CO₂ emissions and 40 % of total energy consumption in the EU.
Impact at the national level
The implementation of the new EPBD raises new challenges for cities and municipalities across the EU, with far-reaching implications for their infrastructure as well as social and economic dynamics.
Cities are required to renovate their public buildings, including schools, town halls and hospitals, to meet energy efficiency standards. This poses a significant financial challenge but could lead to long-term savings in energy costs.
The mandatory installation of charging stations for electric vehicles in public buildings will promote the expansion of electromobility and reduce CO₂ emissions in urban transport. This will require substantial investments but could also open up new business opportunities.
The requirements of the Directive will also lead to a shift in urban planning. Municipalities will need to focus more on sustainable building practices, increasing the demand for "green" projects and energy-efficient housing solutions. The integration of renewable energy into urban infrastructure will become the norm.
The Directive could also cause social tensions, particularly concerning the relationship between landlords and tenants, as several questions remain unanswered. Under current Austrian law, landlords have no legal right to implement energy-efficient renovations without the tenant's consent. Even if most tenants agree to such measures, landlords cannot simply pass the costs onto them. To truly advance the aims of the Directive, a shake-up of the existing tenancy laws – at least in Austria – is inevitable.
Despite the challenges, the Directive offers significant economic opportunities. The demand for renovations and energy-efficient new builds will create new jobs and boost the local construction industry.
Future horizons
Overall, the new EPBD presents challenges for cities and municipalities while simultaneously offering opportunities for sustainable and forward-looking development. Successful implementation will depend on the ability of cities and municipalities to mobilise the necessary financial resources, mitigate social impacts, and leverage the new standards as an opportunity for the comprehensive modernisation of urban infrastructure.
authors: Julia Hausleitner, Laura Zobernig
Julia
Hausleitner
Associate
austria vienna