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The European EPBD and the Transformation of the Construction Sector

Written by J2 Innovations | 05 November 2026

This week we're pleased to feature a guest blog from Silvia Rossi, Architect and General Director of Clust-ER BUILD. At FIN Connect 2026, Silvia presented on energy performance, smart buildings and investment related to EPBD. Here are her reflections.

The recast Energy Performance of Buildings Directive, Directive (EU) 2024/1275, gives the construction sector a long-term framework for decarbonising Europe’s building stock by 2050. In my FINConnect presentation, I explored its implications for building owners and energy managers, alongside the opportunities it creates for the wider construction value chain. My central argument is that energy renovation, digitalisation and investment planning must advance together if the transition is to deliver measurable benefits for businesses and communities.

For Clust-ER BUILD, this is a practical innovation challenge. Connecting companies, research centres and training organisations can help translate European objectives into projects that improve building performance and strengthen the skills needed to deliver them. The directive brings decisions about design, technology, operation and finance into the same conversation.

Understanding the targets

The directive sets different pathways for new and existing buildings. All new buildings must meet the zero-emission standard from 2030, with an earlier deadline of 2028 for new buildings owned by public bodies. This requires very high energy performance and no on-site carbon emissions from fossil fuels, alongside zero or very low operational greenhouse gas emissions. It also encourages a broader view of environmental impact through the progressive introduction of life-cycle global warming potential disclosure for new buildings.

For existing residential buildings, the targets concern the national stock’s average primary energy use: a reduction of at least 16% by 2030 and at least 20–22% by 2035, compared with 2020. At least 55% of the required reduction must come from renovating the 43% worst-performing residential buildings. These are national trajectories, rather than an identical renovation requirement for every home. For non-residential buildings, minimum standards address thresholds corresponding to the worst-performing 16% of the national stock by 2030 and 26% by 2033, subject to the directive’s provisions and exemptions.

For owners, these milestones make early planning valuable. For policymakers, they demand implementation that reflects the diversity of the building stock and the ability of households and businesses to invest. European requirements must be read alongside national and regional rules. As highlighted in my presentation, updating existing technical requirements and implementing the full EPBD framework are distinct tasks.

Managing performance throughout operation

A central theme of my presentation was building automation and control systems, or BACS. Their value lies in continuously monitoring consumption, detecting inefficiencies and helping managers adjust technical systems. The directive requires Member States to establish BACS requirements, where technically and economically feasible, for non-residential buildings with relevant heating or cooling systems above 290 kW and extends coverage to systems above 70 kW by the end of 2029.

Automation therefore becomes part of an ongoing management process. Installing equipment must be accompanied by commissioning, maintenance and staff able to interpret the data. For energy managers, this means connecting design assumptions with actual operating conditions and correcting performance gaps over time.

Making building data useful

The digital tools discussed in my presentation can support this continuity. Energy performance certificates describe a building’s assessed performance; renovation passports can provide a sequence of improvements towards deep renovation. The directive requires national passport schemes, while their use by owners remains voluntary unless a Member State makes it mandatory. The Smart Readiness Indicator addresses another dimension: a building’s capacity to use smart technologies to respond to occupants, improve operation and interact with the energy system.

These tools become more useful when information can move between systems. National energy performance databases and links to digital building logbooks can support access to relevant records across a building’s life. BIM models, monitoring platforms and product information can complement this framework. Their effectiveness depends on reliable data, interoperability and appropriate access rights, rather than simply collecting more information.

This is also a supply-chain issue. The notes accompanying my presentation highlight fragmentation and uneven digital maturity in construction. Shared information standards and traceable product data can improve coordination between manufacturers, designers, contractors and facility managers. They can also reduce duplication and support maintenance, replacement and future reuse. These are enabling practices for the transition, rather than a universal EPBD requirement to adopt a particular digital platform.

Connecting renovation and finance

For investors and owners, energy performance increasingly needs to be considered alongside maintenance costs, asset quality and exposure to future requirements. A credible renovation strategy should establish the building’s starting condition, compare intervention packages and explain their expected benefits and costs. Where works are phased, a coherent roadmap can help avoid investments that obstruct later improvements.

Better evidence can strengthen financing decisions, although it does not automatically secure funding or increase property values. Energy savings depend on building use, energy prices, installation quality and maintenance. Connections with ESG objectives and the EU sustainable finance taxonomy deserve attention, but EPBD compliance alone does not establish taxonomy alignment. Investment decisions require assessment against the relevant criteria and the circumstances of each asset.

Affordability must remain central. Upfront costs can prevent households and small businesses from acting even where long-term benefits are plausible. Financial support, accessible technical advice and one-stop shops can help turn intentions into deliverable projects. Protecting vulnerable households requires attention to who pays for improvements and who receives the savings, particularly where owners and occupants have different interests.

The role of a regional innovation ecosystem

In Emilia-Romagna, the challenge creates opportunities across the construction value chain: building envelopes, efficient technical systems, renewable energy integration, automation and specialist services. Delivering these solutions requires collaboration and practical training. Professionals and installers need the capacity to design integrated interventions, commission systems correctly and verify results after completion.

Clust-ER BUILD can help connect these capabilities by bringing research, enterprise and training into a shared implementation process. From this perspective, the EPBD offers a framework for improving both buildings and the way the sector works. Its success will depend on turning long-term targets into feasible renovation pathways, supported by dependable information, competent delivery and finance that reaches those who need it.