BELGIUM Trends and Developments Contributed by: Pieter Puelinckx, Yves Moreau, Melissa Verplancke and Lothar Van Driessche, Linklaters
Energy efficiency and energy performance On 10 March 2023, the European Parliament and the Council reached political agreement on a substantial amendment (recast) of the Energy Efficiency Directive (EED). On 7 December 2023, an amendment (recast) of the Energy Perfor - mance of Buildings Directive (EPBD) followed suit. These key pieces of “Fit for 55” legislation represent a significant push to decarbonise the EU’s building stock and facilitate renovation. The (binding and non-binding) targets for ener - gy efficiency and energy performance will trickle down into the real estate sector through national implementing legislation, including in Belgium. The recast EED sets a headline target of at least a 11.7% reduction in final energy consumption in the EU by 2030, compared with 2020 fore - casts. This headline target will be binding for the EU collectively but will translate into indica - tive targets per member state, to be reflected in their national energy and climate plans (NECPs). These national targets will be set using formulae based on – among other things – energy inten - sity, GDP per capita, and the potential for renew - ables and energy savings. Counting towards these targets, EU member states will be able to take into account savings realised through policy measures under the (current and revised) EPBD and the ETS II. Governments will need to integrate an “energy efficiency first” principle in their policy, plan - ning and investment decisions (including public procurement) and lead by example by – among other things – achieving a (mandatory) renova - tion target of 3% annually of the total floor area owned by public bodies (not just central govern - ments), which will need to be transformed into nearly net-zero buildings.
tiatives are worth looking into, both at EU and Belgian (federal and regional) levels. Emissions Trading System for buildings On 18 and 25 April 2023, the European Parlia - ment and the Council respectively adopted key legislation to reform the European Emissions Trading System (ETS). As part of this reform, a new separate ETS II will be rolled out, covering emissions from fuel supplied to road transport, buildings and parts of the manufacturing indus - try (not already covered by the existing ETS). ETS II will put a price on these emissions as from 2027 – although this could yet be postponed to 2028 to protect consumers if energy prices are exceptionally high at that time. It is clear that the additional cost of suppliers in complying with their ETS II obligations will be passed on to building owners and tenants, who will need to decide how to account for this. Investments in energy efficiency/energy neutral - ity and distributed generation to make buildings self-sufficient will become (even) more impor - tant. The new Social Climate Fund (to be funded in part by revenue from the auction of allowanc - es under the new ETS II) will be used to ease the burden on (vulnerable) consumers, among other things, through temporary direct income support measures. In the context of emissions reduction, it will also be important to look at “embodied carbon”. This refers to CO2 emitted in the construction and demolition of a building, as opposed to its oper - ation. Studies show that the embodied emis - sions of a building range between 67–76% of a building’s total carbon emissions over a lifetime. This emphasises the need to take a whole-life- cycle approach to calculating a building’s car - bon footprint.
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