Buildings

2010

Climate policy has traditionally focused on this sector and long-term experiences with policies exist. A few countries have long-standing policies. The maximum rating is a ‘C’, however most countries are well below halfway to achieving the goal, with an average rating of ‘E’.

Germany and Denmark have stable support systems for electricity generation from renewable energy. Both have operated feed-in tariffs for over a decade. Policies to support combined heat and power are relatively advanced in Ireland, Germany and Spain. Performance in overarching issues for electricity supply is generally low due to the un-ambitious cap of the electricity sector in the emission trading system; no emission performance standards for new power plants leading to newly built coal fired power plants and widespread subsidies, in addition to tax exemptions for fossil fuels.

2011

Reduced support for renewable electricity, mainly for solar photovoltaic (PV), partly justified
Some countries reduced support for renewable electricity, mainly the support levels for solar photovoltaic (Slovak Republic, Czech Republic, Italy, France, Spain, UK, Estonia, Germany and Belgium). The reduction of support levels for solar PV is justifiable given the decrease in production cost and very strong market growth. Still, the support reductions were often implemented as a step change and have reduced future investment certainty. This is especially the case in Spain and the Czech Republic, where the support for solar PV was cut retroactively, either by cutting the tariff or by introducing a tax for existing installations.

Country	Details per country
AUSTRIA	Renewable Energy A grant scheme to support renewable technologies at the national level, targets commercially-active investors and supports district heating, biomass plants, solar-thermal and heat pumps. Within the “Climate and energy fund” (Klima- und Energiefonds), in 2011, special programmes for private households are available: €3m for wood heating, and two programmes for photovoltaics (PV) up to 5kWp (regular PV and facade integrated PV in prefabricated houses). In addition, support for individual households is administered at the regional level. It also includes investment grants for the similar types of activities, although level and conditions vary widely. Since March 2011, a special bonus for environmentally-friendly heating is available within the framework of the thermal renovation programme (see efficiency in buildings).  Information campaigns and training carried out at the regional and national levels support the deployment of renewable technologies. However, no measures have been taken to make investment in such technologies more attractive for rented space by improving tenants’ ability to reduce their green investment costs. This area needs significant improvement. In 2002, the regional building law introduced an obligation to use renewable energy sources as a legal requirement for all public buildings.
BELGIUM	Renewable Energy At the federal level, in addition to incentives provided by regional authorities, tax reductions and green loansare given for investments in renewable energy. Solar thermal and PV are rewarded with a higher tax reduction than other technologies.
BULGARIA	Renewable Energy The government is working on legislation to stimulate renewable energy in buildings. The new renewable energy act sets minimum requirements for renewable energy in all new and refurbished buildings at 15% for energy used for heating and cooling. It is unclear how this will be implemented, monitored and controlled.
CZECH REPUBLIC	Renewable Energy The support for renewables in heating and cooling is rather successful: from 1990 to 2005, the share of renewables used for thermal applications increased by 18%. The support comes from a Green Investment Scheme. Enterprises, public buildings and households are all targeted by special financial support programmes. The landlord-tenant conflict regarding the inclusion of retrofitting costs in rents is not addressed in the Czech Republic. A high share of the current building stock is owned by municipalities and the respective tenancy agreements do not reflect the issue. Gradually, a higher share of flats is expected to be offered on the private market. The chance of addressing the landlord-tenant problem at an early stage should be used.
DENMARK	Renewable Energy More than 50% of buildings use district heating with a high share of it coming from renewables. Renewable heat is exempt from some taxes. Biomass, being CO2 neutral, is exempt from the CO2 tax. Solar heating plants are exempt from both energy and CO2 taxes. Municipalities are obliged to set up heat plans based on feasibility studies (as determined by the Act on Heat Supply).
ESTONIA	Renewable Energy No national and regional legislation concerning increased share of energy from renewable sources and no minimum requirements for the use of renewable energy in the building sector in Estonia have been established. There is also no accurate statistical data about the share of renewable energy in the building sector. The share of biomass for heating has increased substantially since 1990.  This is mainly due to greater domestic wood use for room heating and warm water, replacing electric boilers from the Soviet era when electricity prices rose.
FINLAND	Renewable Energy The government intends to reduce the use of oil as fuel for heating in existing buildings. However, few specific policy instruments on the use of renewable energy in the building sector exist. There are energy grants for residential buildings that cover up to 60% of the labour cost of installing heat pumps. Based on the law supporting renewable electricity production, heat produced using wood fuel and biogas combined heat and power is supported by an additional premium: €20/MW for wood fuel combined heat and power and €50/MW for biogas combined heat and power. The new feed-in tariff scheme does not take into account micro-scale renewable energy production in buildings, for example, small-scale solar and wind energy.
FRANCE	Renewable Energy Renewables in the building sector are supported through tax deductions, zero interest loans and lower VAT for material and installation costs. Schools and other public buildings can also benefit from a regional feed-in premium for public services. A tax credit has been rather successful. The overall share of renewable energy in thermal applications has started to increase since 2007.
GERMANY	Renewable Energy The law on heat use in buildings aims at an average of 14% share of renewable energy for heating by 2020. New buildings must have a share of renewable energy of between 15% and 50%, depending on the type of building and the type of renewable energy source used. Standards for existing buildings can be set by the states, but few have made use of this option. The law was revised in May 2011 to introduce an obligation for public buildings to procure a minimum of 15% of their heating and cooling demand from renewable sources. Alternatively, the municipality can build solar thermal installations on public buildings to provide for the heating and cooling demand for third buildings. The government is providing support of up to €115m per year for renewable energy use for heating during the period 2009-2012. Support conditions for different renewable energy technologies were improved as of March 2011. Support for solar collectors, boiler exchange and heat pumps were increased or prolonged. The subsidies, however, will only be granted for existing buildings and for the “most innovative technologies”, which excludes, for example, efficient heat pumps and small combined heat and power systems. The overall budget has been cut by 15% compared to the 2010 budget. The landlord-tenant problem has been partly addressed in the way that owners can increase the rent by up to 11% of the investment cost of renewable energy installations annually. The system is very inflexible and does not reflect the size of investment and its energy saving potential.
GREECE	Renewable Energy Renewable heating in buildings has been supported through investment grants, subsidies and tax deductions since 1995. Budget restrictions meant that lower support was introduced in 2006 and is still in place. The removal of the cap for residential PV was a positive development for the further deployment of the technology.
HUNGARY	Renewable Energy The installation of renewable energy production units, is not obligatory but is supposed to be considered in building design.
IRELAND	Renewable Energy In 2006, the Greener Homes Scheme was launched, providing grant assistance to home owners who want to buy renewable energy heating systems. By 2010 the emission savings were 37,000 tonnes. Funding is to be doubled for home energy efficiency and renewable energy programmes (e.g. Better Energy Homes Scheme, Warmer Homes Scheme) until the end of 2013, after which time these schemes will be ended.
ITALY	Renewable Energy The Italian Government has introduced different incentives. For example, tax deductions at the national and municipal level for the use of renewable sources in buildings. As has happened in the past for other important regulations, the law is published but the implementing measures are still pending and sanctions are not sufficiently enforced. A 55% tax reduction for efficiency measures in building renovation which is available to businesses as well as residential users has achieved good results. This tax reduction has been renewed for 2011. This tax deduction incentive may yet be influenced by the government’s primary focus on achieving budget break-even. In 2006, buildings larger than 1,000m2 were obliged to install a PV system and solar thermal system covering >50% of hot water and heating demand if a heating system is being newly installed or replaced. This obligation has now been integrated into the Renewable Decree, 28 /2011, which, as from 1 June 2012, will also require 20% of heating and cooling energy and 50% of energy for sanitary water to come from renewable energy for any new building (some exemptions are made for historical and city centres). Similar regulation applies to electricity use.
LATVIA	Renewable Energy There are no building obligations that require the use of renewable sources for heat or electricity production. During 2010-2011, the building sector can receive support for the purchase, installation and connection of specified renewable energy equipments under the following measures: Renewable energy for household sector, Complex solutions to reduce GHG in municipal buildings and Complex solutions to reduce GHG in State and local government vocational education building.
LITHUANIA	Renewable Energy There are no building laws that require the use of renewables in buildings, nor incentives to use renewable technologies. However, in 2011 funds from the Special Programme for Climate Change are foreseen for the improvement of energy efficiency and renewable energy utilisation in private, multi-apartment and public buildings.
LUXEMBOURG	Renewable Energy There are grants available for the installation of renewable energy sources in households. Various renewable energy sources are subsidised, such as solar thermal and solar photovoltaic systems (30%-50% of the cost up to a specific maximum amount), geothermal heat (40%-50%), and biomass heaters (25%-30%).
MALTA	Renewable Energy A support scheme for domestic solar hot water heaters covers up to 66% of costs up to a maximum of €460 per family/installation. The scheme can be modified or terminated at any time, which makes long-term planning difficult. Support for geothermal energy is being planned but not yet implemented. To stimulate renewable energy in the built environment, the government offers soft loans for hotels and restaurants to encourage investment in cleaner technologies.
NETHERLANDS	Renewable Energy Subsidies for renewable heat in households are no longer available: as of February 2011 the existing subsidy scheme was cancelled prematurely. Of the €66m budget reserved for 2008-2011, €40m was spent before the scheme ended.
POLAND	Renewable Energy Renewables in buildings for heating and cooling purposes were supported through the Thermomodernisation Fund which also targeted efficiency measures. Grants of 25% of the total investment were provided, however, the amount of available finance for 2010 was zero. Incentives for solar thermal collectors are given through a dedicated credit line. From 1990-2005, the use of renewables in buildings increased by 10%, without taking electricity into account.
PORTUGAL	Renewable Energy Energy certification for buildings in Portugal includes an obligation to install solar panels in new buildings where conditions are appropriate. Solar Thermal Programmes have led to the installation of 400,000 m2 of panels in the last three years. The installed capacity of solar panels in Portugal of 750,000 m2, is 44% over the intermediate result planned in the PNAEE. Micro production of electricity (up to 5,78kW) is supported by a specific programme, which has been recently (2011) improved. Although no policy on importing biomass yet exists, there has been a draft proposal from the Association of Renewable Energy Producers to incorporate sustainability criteria for biomass into the Portuguese legislation.
ROMANIA	Renewable Energy The use of renewables in buildings (firewood) has increased since 1990, but not due to energy policy. Although EU policies are transposed in national legislation, implementation is still lagging behind due to administrative barriers.
SLOVAKIA	Renewable Energy Builders of new large buildings need to perform a technical, economical and environmental evaluation of alternative energy systems. A grant scheme for support of biomass boilers and solar panels is in place.
SLOVENIA	Renewable Energy Obligatory installation of renewable energy devices in new buildings and those undergoing major renovation. A minimum of 25% of the total power demand must be covered by the installation of renewable energy systems such as solar hot water, photovoltaics (PV) and ice storage for cooling. Low interest loans from the ECO-Fund are available for the installation of renewable energy in buildings.
SPAIN	Renewable Energy Spain was the first country in Europe to introduce an obligation to use renewable energy in buildings. Depending on the climatic zone and type of building, between 30% and 70% of hot water demand has to be covered by solar-thermal in new and renovated buildings. Also, solar PV has to be used for a certain share of the power demand. The landlord-tenant problem has not been addressed yet in Spain. It is not possible to include the costs of retrofitting into the rent.
SWEDEN	Renewable Energy Some incentives for retrofit (e.g. wood pellet stoves) exist, but some are out of funding.
UNITED KINGDOM	Renewable Energy Renewable heat utilisation is currently very low in the UK. A Renewable Heat Incentive (RHI) was introduced in April 2011: the goal is 12% renewable heat by 2020. It is open to non-domestic buildings, who receive long-term tariff support through the scheme. The second phase will see households offered the same support, from October 2012 in line with the introduction of the Green Deal. The RHI is funded by a levy on suppliers of fossil fuels for heat and will cover a wide range of technologies. Some local authorities require a minimum percentage of onsite renewables before planning permission is granted for new buildings, but currently investment in new buildings is limited.

Country	Details per country
AUSTRIA	Energy Efficiency The new Energy Strategy adopted by the Council of the Ministers at the start of 2010 includes a 3% target for the annual retrofit rate by the year 2020, with a linear trajectory starting from current retrofit rates (1% per annum). However, since instruments to support this are under the responsibility of the regions, are not ambitious enough and are not well coordinated (although a new agreement according to Art. 15a of the constitution sets common minimum standards), additional measures need to be taken to achieve the target laid out in the national Energy Strategy. The 2011 budget foresees €100m for the thermal renovation of buildings; €70m for private households and €30m for businesses. Until April 2011, over 2,800 households were granted support of up to €5,500. It is planned to provide €100m for thermal renovation, annually.  Public procurement guidelines are detailed in an agreement (in relation to Art. 15a B-VG) and include ambitious standards for new buildings, retrofit and for technical appliances. This is a good example that could easily be followed by other countries.
BELGIUM	Energy Efficiency Tax incentives and rebates on improving efficiency are also applicable for tenants. There are also some low interest loans available. Energy Efficiency Certificates for non-residential buildings will not be implemented before the end of 2011. The majority of public buildings are obliged to make energy efficiency information publicly available. For residential buildings the Energy Efficiency Certificate is mandatory since 2009. It is used to give potential buyers or tenants information on the energy performance and costs of the house. Wallonia and Brussels were warned by the European Commission in June 2011 for lagging behind in the implementation of the EPBD.  In the context of the exemplary role of government, an important instrument consists of promoting third-party financing opportunities: FEDESCO is established and financed by the federal government and invests as a third-party financer in projects to increase energy efficiency in public buildings via energy performance contracts, energy monitoring systems and PV panels in the 1,800 buildings used by the Federal government, for example.  The Flemish Secretary of Energy announced in September 2011 that annually 3,000 rental houses will be isolated. This way the Secretary hopes that in 2020 all Flemish houses are energy efficient.
BULGARIA	Energy Efficiency The new EPBD 2010/31/EU and new Ecodesign directive 2009/125/EU were transposed and adopted in April 2011.
CZECH REPUBLIC	Energy Efficiency New buildings in the Czech Republic are subject to efficiency standards set at a low-energy level from 2012 onwards and at a passive house level from 2020 on. There is no trajectory set towards zero energy buildings. However, the eligibility standards for the support programmes for renewable energies and energy efficiency in buildings are stricter than the general building codes. While in the past, building standards were poorly enforced, this has improved significantly in recent years. Public support programmes are linked to compliance with standards, or at even more ambitious levels. Financial support has to be reimbursed if the required standards are not fulfilled. For existing buildings, minor support exists for retrofitting. The current programme is not sufficient to promote high retrofit rates. The Ecodesign Directive has been transposed into Czech legislation in 2000. There are no plans to promote efficiency beyond the EU requirements. Some public procurement guidelines regarding energy efficient and environmentally-friendly appliances exist, but their implementation depends on the specific institution (e.g. ministries, municipalities) and their internal rules of procedure.
DENMARK	Energy Efficiency Building codes include standards for retrofit activities. For new buildings, the 2006 standards have been adjusted to require at least an additional 25% reduction in energy consumption in 2010 and a further 25% additional reduction by 2015 and again by 2020. This means that from 2020, new buildings must be below the level of passive houses.
ESTONIA	Energy Efficiency The building stock is characterised by poor insulation, high energy consumption and a need for renovation. However, energy consumption for space heating and hot water has decreased since 1990. A clear policy for saving energy in buildings is missing and there is no effective energy conservation plan. However, several important measures have been initiated, which target the renovation of apartment buildings and raising general awareness of energy conservation. In 2010, a separate priority was taken to increase energy saving in public sector buildings. Thus, a minimum of 700 million kroons (about € 45 m; 0.3% of the GDP) will be invested in public sector energy saving between 2010-2012. Under a Green Investment Scheme there will be investment in energy efficiency improvements to local government buildings (66 pieces of real estate), which will lead to reduced energy consumption and consequently reduced CO2 emissions.
FINLAND	Energy Efficiency There is a lack of initiatives regarding energy efficiency in the building sector, but building norms are already satisfactory because of local climate conditions. There are energy grants for residential buildings that cover 20-25% of the cost of heating system improvement, external energy audits, external repair work and ventilation. To improve the energy efficiency of buildings, regulations regarding energy consumption in new buildings will be tightened. From the beginning of 2012 energy consumption in new buildings should be around 20% lower than existing regulated levels. Energy efficiency standards follow EU legislation. Support for energy efficiency measures in renovation is not yet sufficient.
FRANCE	Energy Efficiency New buildings in the tertiary sector and new public buildings may not use more than 50 kWh/m² after mid-2011. For privately-owned new homes, this limit will become effective by the end of 2012. From 2020 onwards, new buildings may not use more primary energy than they generate themselves from renewable energies, i.e. only zero energy new buildings will be allowed. With regards to retrofitting of buildings, the state wants to set a good example and renovate public buildings and social housing and has allocated a budget with specific targets and a timeframe for this. For private households, financial incentives like zero interest loans and tax refunds have been set. This will, however, not lead to a sufficiently high retrofit rate. The white certificate scheme is an interesting measure, which has already led to good results, even though the target has not been very stringent. A new target, which is yet to be set, should be much more stringent. France is a front runner regarding the landlord-tenant problem; certain conditions apply regarding the kind and amount of retrofitting measures and resulting energy consumption, but considering these, the costs can be put (partly) onto the tenant, who in return benefits from lower energy costs. In January 2011, the second phase of France’s white certificate scheme started, lasting until the end of 2013 as part of the Grenelle II law. The building sector is the sector where white certificates are easiest to obtain, and since the beginning of the scheme, most action has been seen in residential buildings (over 80% of energy savings within the scheme); the sector is also encouraged to reach certain goals for low-income households.  In March 2011, the ministry published 16 recommendations to help reach the target for the building sector of reducing energy demand by 38% by 2020 and realising the thermal renovation of 400,000 flats per year from 2013 onwards. How these measures will be achieved cannot be judged yet.
GERMANY	Energy Efficiency Existing regulation of energy efficiency in new buildings is moderately ambitious. With potential amendments under discussion a near passive house standard could be within reach by 2015. There are several financial support mechanisms for both retrofitting measures and efforts to substantially surpass standards for new buildings. The budget supporting energy efficient buildings by the Kreditanstalt für Wiederaufbau (KfW) was lowered in 2011 (partially due to frontloading of the available budget in 2009), however, it will be increased to €1.5bn per year for the period 2012-2014. The effect will not be sufficient to reach the necessary renovation rates, due to the insufficient scale of support and remaining administrative barriers. The Energy Concept goal is to double refurbishment rates. It has been argued that new instruments are needed to meet the targets. Enforcement mechanisms for new buildings regarding standards and the obligation to use renewable heat are rather strict, albeit with room for improvement regarding on-site inspection and enforcement of modernisation measures. The Law on Energy Using Products promotes and regulates energy efficiency of appliances, implementing the EU directive. Initiatives to provide information on energy efficient products exist, but are not yet sufficient to trigger the needed change. Since August 2011, amendments to the regulation on public procurement mean that government purchase contracts are also based on efficiency criteria.
GREECE	Energy Efficiency An obligation for new low-carbon buildings was introduced by the law for the promotion of renewable energy (Law 3851/2010). However, no trajectory to zero energy buildings can be seen. The requirements of the Ecodesign Directive have been introduced in Greek legislation. There is labelling for white appliances and in 2009 a successful programme on energy efficient air conditioners was introduced. A very ambitious programme called ‘Building the Future’ for energy saving in houses was introduced in November 2010. The programme wants to realise 3.1 million energy efficiency measures in buildings in the period until 2020. Due to the economic crisis the general response is relatively low and realisation of this target is questionable. The PPC singed a memorandum of collaboration with the Centre for renewable energy to provide energy services in the residential sector (ESCO). In this pilot programme 1,000 buildings will receive an energy performance upgrade. No initial investment is required by the owners, but the refunding of the renovation cost is generated through the subsequent reductions in the energy bills. EU regulation on building certificates has been implemented, with considerable delay of four years. The enforcement of this legislation is not very strong and problems regarding the certification of energy inspectors exist.
HUNGARY	Energy Efficiency Energy efficiency must be taken into consideration when designing new buildings. However, this weak implementation of the EU requirements is not likely to lead towards zero carbon buildings in the near future. The elaboration of the National Buildings Energy Retrofit Programme is expected before the end of 2011. The current uncertainty about state subsidies for retrofitting hinders large-scale investment.
IRELAND	Energy Efficiency Ireland’s building regulations of 2008 require a 40% reduction in energy demand and CO2 emissions associated with heating, domestic hot water and lighting compared to the 2005 regulations. There are plans to increase this to 60% reduction and eventually to increase this reduction to 70% in a further iteration of building regulations in 2013. To this end, a pilot scheme, Low-carbon Homes, has been put in place to demonstrate the best technologies. New energy efficiency standards are in place for domestic oil and gas-fired boilers. The Better Energy Homes Scheme (formerly the Home Energy Savings Scheme) and the Warmer Homes Scheme aim to improve the energy efficiency of existing homes by subsidising the upgrade of insulation and other space and water heating technologies. The December 2010 budget also introduced tax relief of up to €10,000 for individuals looking to make their homes more energy efficient. Relief will be given at the standard rate of income tax in the tax year following the renovation.
ITALY	Energy Efficiency Developments are moving in the right direction, but much is left to voluntary initiatives. A stronger political statement is needed to increase progress towards a zero carbon built environment. Policies for new building standards exist but there is no evidence of substantial penalties for non-compliance being enforced and nor is there evidence of the expected outcomes of existing tax incentives for renovation. The budget for 2011 extended the 55% tax deduction for 2011, for the interventions such as installation of solar panels for hot water production; substitution of heating systems; and building energy re-qualification. A €11m per year fund for energy efficiency was established. It is also used to finance tax incentives for energy saving lighting systems in non-residential buildings. These incentives have been extended to 2011. For extraordinary building repair and renovation, a 36% tax deduction has been extended until 2012. Sustainability rating systems such as LEED or ITACA are starting to be integrated into the requirements for new important private and public building projects.
LATVIA	Energy Efficiency The building stock in Latvia is characterised by poor insulation, high energy consumption and a need for renovation. Energy use per capita has increased significantly due to higher standards of living. The EPBD is implemented, but with low standards that are far from the objective of zero carbon buildings. A programme running from 2009 to 2013 supports energy efficient renovation contributing a maximum of 50% of eligible costs. The target groups for this programme are multi-dwelling houses and social housing. There are some small incentives to increase the efficiency of appliances such as information campaigns and labelling. Based on Regulations No. 1185 of 28 December 2010, the building sector can receive support under the measure Low energy buildings. There are procurement guidelines for efficiency improvements in the public sector that cover energy efficient electrical equipment, energy audits and the construction of new public administration buildings. Additionally, there is a financial support scheme for municipalities and some small information campaigns. No systematic change can be expected from these measures.
LITHUANIA	Energy Efficiency The building stock is characterised by poor insulation, high energy consumption and need for renovation. Performance standards for buildings are not very ambitious. A programme was initiated to modernise at least 70% of all multi-apartment buildings by 2020 and reduce the relative consumption of thermal energy per dwelling area by up to 30%, compared to the year 2004. However, a 30% reduction is far below what is technically and economically possible and the ambition level should be increased. There are discussions in the government about how to stimulate the building renovation process. Currently only 15% of renovation costs are subsidised by the state budget, although the subsidy is doubled if the renovated multi-apartment building reaches energy efficiency class D and reduces energy costs by not less than 40%. Increasing subsidies to 50% of the renovation cost for the 2011-2012 period is under consideration. There are some small incentives to increase the efficiency of appliances, including for example design and labelling requirements.
LUXEMBOURG	Energy Efficiency Energy consumption for space heating and hot water increased substantially in the 1990-2005 period, influenced by an increase in population of around 20% between 1990 and 2005. Although there are some support schemes for energy-related retrofitting, the standards set are only moderately ambitious. While there are subsidies for energy efficient cooling appliances (refrigerators and freezers) and an information campaign oekotopten is financed by the Ministry for Sustainable Development, these measures are not broad enough to deliver substantial results. In 2011, Luxembourg made some small further steps with the implementation of EU’s energy performance in buildings directive (EPBD) requirement on gas boiler inspection.
MALTA	Energy Efficiency The EU directives (Energy Performance of Buildings, Ecodesign) have been transposed and an ad hoc office within the Ministry of Resources and Rural Affairs has been created. However, implementation and enforcement of the directives by public authorities appears to be weak. While there is a funding scheme for roof insulation in lace, additional measures to support retrofitting and ambitious performance standards are needed.
NETHERLANDS	Energy Efficiency The status of the previous government’s target for new buildings to be climate neutral by 2020 is currently unclear. Ambitious targets for retrofitting houses exist, but the policies (mainly financial incentives) are not sufficient to meet the targets. Building standards are only checked when granting permits prior to construction. Enforcement after construction is considered weak.
POLAND	Energy Efficiency No strong building standards are in place for new buildings and there is no aim to reach zero energy buildings in the near future. The Energy Performance of Buildings Directive (EPBD) has been transposed into Polish law but with serious delays. While certification exists for buildings there are no penalties for owners who do not possess these certificates. The legislation is rather weak and ineffective. The EPBD-recast will also be implemented in Poland.
PORTUGAL	Energy Efficiency The National Plan for Energy Efficiency (PNAEE), includes measures for the transport, building, industry, services and public administration sectors. In 2010, the energy certification system resulted in some 400,000 energy certificates for buildings, making the system a best practice example in a report by the International Energy Agency (IEA). Portugal is implementing the Eco-design Directive with bonuses for highly efficient appliances. Progress has been made on new building standards (trajectory to ‘near zero carbon’ buildings in 2018) and energy certification of buildings is mandatory for all new buildings (residential and services) and for building transactions since 2008. Other ‘efficient home’ programmes are in place, e.g. promoting anti-standby systems, efficient lighting, efficient appliances and so on.
ROMANIA	Energy Efficiency Zero emission buildings for demonstration are supported. The EU Eco-design Directive 2005/32/CE is transposed into Romanian law, but no real enforcement has been added; some incentive programmes were initiated, but they are in a preliminary phase. Early 2011, the Romanian Government issued a decision on minimum requirements for ecological design of high energy demand products; this governmental decision transposes the new EU Eco-design Directive 2009/125/CE.  Administrative barriers are hindering the improvement of energy efficiency in buildings. In January 2011, Romania introduced the energy certificates system for buildings. Any building which is subject to a transaction (either selling or renting) has to have an energy certificate which states its energy performance. The Romanian legislation still lacks penalties for not producing this certificate. This situation is expected to be solved by the Ministry of Development which is preparing a change to the law.
SLOVAKIA	Energy Efficiency The temperature-corrected energy consumption for space heating and hot water per m² decreased by 31% between 1990 and 2005, whereas the average electricity use per capita increased by 49%. The Energy Performance of Buildings Directive (EPBD) is implemented, but the standards for buildings are not ambitious. Subsidies for housing renovation are available as loans (and financed through the sale of surplus emission allowances under the Kyoto Protocol). However, the impact is limited as efficiency improvement requirements are missing and consumers are credit-averse. The Eko Fund supports non-profit activities, e.g. the improvement of energy efficiency in buildings.
SLOVENIA	Energy Efficiency Overall, there is a balanced mix of measures including information campaigns and financial incentives, e.g. investment in energy efficient government buildings. The Energy Performance of Buildings Directive (EPBD) is implemented. Slovenia has started improving its certification process. The calculation of the energy performance of buildings was updated in July 2010. There are some incentives (regulation, support and information) for the use of efficient appliances. Low interest loans of the ECO-Fund are available for energy efficiency in buildings.
SPAIN	Energy Efficiency Although there are mandatory energy performance standards for buildings, there is no trajectory towards zero energy buildings. Rather, the current technical building code aims to reduce primary energy use by between 30% and 40%. A new building code is to be implemented after 2012. Whether zero energy buildings will be targeted is not yet clear. Energy use certification for buildings is in place and includes a penalty mechanism. However, certification has yet to be properly implemented. Existing buildings are not fully integrated in the scheme. The Plan to Increase Energy Savings introduces some short-term measures to reduce energy consumption, mainly in the transport and building sectors, resulting in approx. a 3.5% reduction in final energy consumption in both sectors. However, as the measures are temporary, its impact will be rather low. The Sustainable Economy Law introduces a tax deduction of 10% for refurbishments which lead to energy efficiency improvement.
SWEDEN	Energy Efficiency Relatively strict energy standards are in place, which apply to new and also existing buildings. However, no zero-energy standard is defined. Standards are differentiated according to region, but there is discouragement from national level that inhibits regions from being more progressive than the national standards. National standards are also seen by industry actors as being too weak, which should lead to stricter standards. Several small programmes support energy-efficient renovation, but some are short of funding.
UNITED KINGDOM	Energy Efficiency There is a target for all new houses to be zero carbon by 2016 and all new non-domestic buildings to be zero carbon by 2019. But the target has been diluted by a third during 2011 by excluding energy consumed by domestic appliances. The landlord-tenant dilemma has not been solved. A creative policy is the obligation on suppliers to produce savings from domestic buildings. The suppliers finance the efficiency measures of house owners and can put the costs on general energy prices. Separately and in addition, the CRC, basically a carbon tax on large non-domestic buildings and small industry, will provide an incentive for energy efficiency in buildings (including retrofit and appliances). CRC allowances are currently set at £12 per tonne of carbon. The Warm Front Scheme, which offered a means-tested grant for energy efficiency measures such as home insulation, was abolished. The December 2010 Energy Bill introduced a Green Deal, whose aim is to dramatically increase the energy efficiency of UK properties. The Deal will allow private firms to supply energy efficiency measures to homes and businesses at no upfront cost, and to recoup payments through a charge in instalments as part of the building’s energy bill. The government is currently undertaking a cost-benefit analysis of energy efficiency measures and expects to role out the framework in 2012.

Country	Details per country

Country	Details per country
AUSTRIA	Overarching Only a moderate energy tax for households of around 13.5% for natural gas and 17.7% for oil exists
BELGIUM	Overarching There is no carbon tax in place.
BULGARIA	Overarching In Bulgaria, a certification system for energy efficient buildings has been implemented. The system is used mainly for new buildings and for ones that are modernised or reconstructed. For public buildings, certification is mandatory. Tax relief is awarded to all refurbished buildings that have been successfully audited in line with the national energy efficiency requirements.
CZECH REPUBLIC	Overarching The level of taxes for energy (electricity and natural gas) used in buildings is very low. There are discussions about a carbon tax and such a tax is planned to align with the implementation of future EU-directives. However, these instruments are still under discussion. The Green Savings Programme (Zelena Usporam), focusing on support for heating installations using renewable energy sources and on investment in energy savings in buildings, is on-going, and the Minister for the Environment decided to speed-up the process for the more than 40,000 households waiting to modernise their homes via this programme. Around 19,000 households have benefited from the initiative since 2009.
DENMARK	Overarching The law was changed in 2009 to address the landlord-tenant problem but results remain to be seen. Electricity use per capita in homes has been steadily decreasing since 1990, mainly due to substitution of electric heating and more efficient products. Specific energy and CO2 taxes have some influence on consumer behaviour.
ESTONIA	Overarching No relevant policies could be found. There are plans to develop national building legislation and rules to establish the minimum level of energy use from renewable energy sources in buildings until 2012.
FINLAND	Overarching No overarching instruments could be found.
FRANCE	Overarching The tax level in the building sector is rather low.
GERMANY	Overarching Energy tax is rather low in comparison to energy prices.
GREECE	Overarching The tax levels for energy used in buildings, is in general quite low. Natural gas is promoted by the government in order to reduce diesel use in households. There is no energy tax for natural gas if it is used for heating buildings, which may hinder use of renewables. The consumption of energy is decreasing because of the high rates of unemployment and the huge increase of direct and indirect taxes on household income and property. The lack of funding schemes is lowering the possibilities for the promotion of energy efficiency measures in the building stock.
HUNGARY	Overarching In compliance with the EU regulation, energy labelling is only obligatory for new buildings and governmental buildings above 1,000m2. Gradually labelling will be extended to other buildings. However, there are no sanctions in cases where the energy audit is not performed.
IRELAND	Overarching Ireland has been compliant with the EPBD since 2006 by making energy ratings in buildings mandatory. Due to Ireland’s economic boom over the last two decades, electricity consumption per capita has increased substantially. In the public sector there is a 33% energy savings target and a requirement to meet at least part of demand from renewable sources. Under the Better Energy Homes Scheme launched in May 2011 although tariffs for most individual measures decreased, the amount of overall funding increased. Funding is to be doubled for home energy efficiency and renewable energy programmes until the end of 2013, after which time these schemes will be ended.
ITALY	Overarching Taxes on natural gas and electricity are moderate, respectively accounting for 38% and 14% of the energy price. This is way too low to change behaviour or trigger investment in renewables and energy efficiency.
LATVIA	Overarching There are procurement guidelines for efficiency improvements in the public sector that cover energy efficient electrical equipment, energy audits and the construction of new public administration buildings. Additionally, there is a financial support scheme for municipalities and some small information campaigns. No systematic change can be expected from these measures.
LITHUANIA	Overarching A financial support scheme to improve energy performance in public buildings exists. However, it is unclear whether this is part of an overall sustainable procurement strategy. At least two information centres (national/ regional) which address smart uses of energy are operating.
LUXEMBOURG	Overarching No information on CO2 or specific energy taxes or on investment in energy-efficient government buildings could be found.
MALTA	Overarching There are some good public sector initiatives such as exemplary energy efficiency measures in public buildings or social housing and an information campaign. However, there is no CO2 tax and energy taxes could be more stringent.
NETHERLANDS	Overarching There is a relatively high energy tax on energy use in households. Taxes represent about half of the end-user price.
POLAND	Overarching The level of taxes on energy for the building sector is quite low.
PORTUGAL	Overarching Taxes for energy consumption in buildings are relatively low.
ROMANIA	Overarching Energy taxes are at the level of the energy price. They are not significant enough to be effective.
SLOVAKIA	Overarching No overarching policies found.
SLOVENIA	Overarching There are additional incentives, e.g. information campaigns.
SPAIN	Overarching The level of energy taxes is among the lowest in Europe.
SWEDEN	Overarching A CO2 tax of 1.05 SEK/kgCO2 (around €100/tCO2) applies. Low electricity prices from nuclear and hydro lead to high rate of heating with electricity.
UNITED KINGDOM	Overarching The Energy Saving Trust is similar to the Carbon Trust for business but its remit is the domestic and transport sectors. It was announced that the Energy Saving Trust will no longer receive government funding from April 2012.