Eneff: EU’s new energy requirements are changing the real estate industry

Not long ago, incandescent light bulbs were the standard. They became so hot that you couldn’t touch them – most of the energy was turned into heat instead of light. Today, that type of energy-wasting product has largely disappeared from the market. One important reason is the EU’s Ecodesign Regulation, which has gradually phased out inefficient products and driven the development of more energy-efficient solutions. According to the Swedish Energy Agency, ecodesign rules combined with energy labelling save around 528 TWh of energy annually within the EU.

This demonstrates what clear regulations can achieve. When minimum requirements are raised, the market changes – technological development accelerates, investments are redirected, and energy efficiency becomes an obvious competitive factor.

Energy efficiency is about more than the climate

At the same time, we are only at the beginning of the transition. Technological development, digitalisation, and rising energy costs mean that the potential for energy efficiency continues to grow. In addition, the value of efficient energy use is becoming increasingly important. It is no longer solely about climate and energy savings, but also about competitiveness, resilience, and energy security. Today, the EU imports more than 50% of the energy it needs, making energy a tool of power. Through energy efficiency, we could change that – less import dependency, lower vulnerability.

At the same time, a society that uses energy more intelligently is not only less vulnerable to energy shortages, high prices, or disruptions in the energy system – it also contributes to better indoor environments, modernised buildings, and lower operating costs, while reducing emissions. These are investments that strengthen both property values and society’s resilience, while bringing us closer to climate goals.

Against this background, the EU is now driving development through several major initiatives. Two of the most important are the Energy Efficiency Directive (EED) and the Energy Performance of Buildings Directive (EPBD). Sweden is currently in the middle of implementing these directives – a process that will affect the entire construction, property, and installation sectors for a long time to come.

New directives are driving the transition

Among other things, the directives entail stricter requirements for member states’ energy efficiency efforts, new requirements for buildings, and increased focus on monitoring and renovation. But directives alone are not enough. Good products, systems, and ambitious companies are also needed to make implementation possible. Much is already in place, while at the same time some property owners feel it is difficult to prioritise measures, set the right requirements, and secure investment decisions. For this transition to succeed, clearer governance and better conditions are needed to reduce the perceived risks of implementation – just imagine what something like a government guarantee could achieve.

Perhaps in the future we will look at today’s energy waste in the same way we now view the incandescent light bulb – as something obviously inefficient that belongs to the past. But to get there, Sweden must take the EU directives seriously and create the conditions needed to harness the enormous potential that exists – and ensure that energy efficiency truly becomes the natural first choice.

Lotta Bångens, Secretary General, Eneff

About the article series on the EU’s new energy directives

This article is part of a series on the EU’s new regulations for energy efficiency and sustainable buildings, produced at the initiative of Clima Energy Nordic and Eneff.

The series highlights the Energy Efficiency Directive (EED) and the Energy Performance of Buildings Directive (EPBD) from several different perspectives, focusing on how the regulations affect property owners, installers, municipalities, and other stakeholders in the energy and property sectors.

The purpose of the article series is to increase knowledge about how the EU’s new requirements can be implemented in practice and contribute to sustainable, resilient, and energy-efficient buildings and communities.