• All 27 EU member states face infringement proceedings for failing to fully transpose the revised Energy Performance of Buildings Directive.
• The law requires zero-emission new buildings by 2030 and targets the complete phase-out of fossil fuel boilers by 2040.
• Governments now have two months to respond before the Commission may escalate cases and seek financial penalties.

The European Commission has opened infringement procedures against every EU member state over delays in implementing the bloc’s strengthened buildings law.

The Commission sent formal notice letters to all 27 governments after they failed to fully transpose the revised Energy Performance of Buildings Directive into national legislation.

Member states had until May 29, 2026, to notify the Commission that the rules had been implemented. None completed the process by the deadline.

The enforcement action places Europe’s building decarbonisation strategy under renewed scrutiny. Buildings remain the region’s largest energy-consuming sector and a major source of emissions.

Governments now have two months to respond, complete their legislation and notify the Commission. If their responses are inadequate, Brussels may issue reasoned opinions and later refer cases to the EU Court of Justice.

Zero-emission buildings face implementation test

EU lawmakers adopted the revised directive in 2024 as a central part of the bloc’s plan for a zero-emission building stock by 2050.

The law requires all new residential and commercial buildings to produce no on-site fossil fuel emissions by 2030. New publicly owned buildings must meet the requirement from 2028.

Member states must also develop policies to phase out fossil fuels in heating and cooling. The legislation sets 2040 as the target for eliminating fossil fuel boilers.

An earlier deadline applied to financial support for new fossil fuel boilers. Governments were required to prohibit those incentives from January 1, 2025.

The Commission said: “Buildings are the single largest energy consumer in Europe. Transposition and implementation of the EPBD is key to boosting the EU’s current very low annual energy renovation rate (1%), reducing bills for citizens and businesses and the EU’s dependence on imported fossil fuels, and achieving a zero-emission and fully decarbonised building stock by 2050.”

Renovation targets raise financing pressure

The directive extends beyond new construction. It requires national governments to reduce energy use across existing residential and commercial property.

Residential buildings must follow national trajectories that cut average primary energy use by 16% by 2030. The required reduction rises to between 20% and 22% by 2035.

At least 55% of those savings must come from renovating the poorest-performing homes.

For non-residential properties, governments must introduce minimum energy performance standards. These should lead to upgrades for the worst-performing 16% of buildings by 2030. The threshold expands to 26% by 2033.

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Delivering those targets will require substantial public and private capital. Owners will need access to affordable finance, technical advice, qualified contractors and reliable information about expected energy savings.

The directive therefore requires national building renovation plans. These must address financing gaps, worker shortages, training requirements and other barriers to investment.

Governments must also create one-stop advisory services and building renovation passport schemes. The passports will provide owners with staged pathways toward zero-emission performance.

Delays create risk for investors and businesses

For property investors, utilities and construction companies, the transposition delays create uncertainty over timelines and compliance requirements.

National legislation will determine how performance standards, renovation obligations and financing mechanisms operate in practice. Delays could disrupt capital planning for commercial property owners and slow demand for efficiency technologies.

Banks and asset managers also face exposure. Older, inefficient buildings may require higher capital expenditure or lose value as national standards tighten.

However, the directive could create a large investment pipeline. Demand is expected to grow for insulation, heat pumps, solar systems, digital energy controls and low-carbon construction materials.

Implementation will also influence Europe’s energy security. Faster renovation could reduce fossil fuel imports while protecting households and companies from volatile energy prices.

The infringement cases now test whether the EU can convert its climate legislation into consistent national action. Without faster implementation, the bloc risks missing renovation, energy security and 2050 decarbonisation goals across one of its most carbon-intensive sectors.