The Energy Performance of Buildings Directive (EPBD) is a step in the European Union’s strategy to decarbonise its building stock. As part of the broader Fit for 55 package, this directive introduces stricter energy efficiency requirements, new renovation targets, and a framework for achieving zero-emission buildings (ZEBs). Its implementation will significantly shape the construction and insulation industries, impacting stakeholders across the value chain.
In December 2024, the Buildings Performance Institute Europe (BPIE) published a report, “Mapping Policy Needs for Effective 2024 EPBD Implementation”, which highlights key policy challenges faced by EU Member States in integrating the directive into national frameworks. This report provides crucial insights into the barriers and needs associated with implementing the EPBD’s new provisions.
Jakub Stefaniak, EU Technical Affairs Manager at EUMEPS, shares his analysis of the report’s key findings and their implications for the expanded polystyrene (EPS) industry, exploring both opportunities and challenges in light of the EPBD’s ambitious energy efficiency goals.
Key Findings from the BPIE Policy Mapping
The BPIE report outlines the main policy needs and implementation challenges associated with the EPBD 2024, focusing on critical areas such as national renovation strategies, zero-emission buildings, minimum energy performance standards, renovation passports, and energy performance certificates.
One of the primary takeaways is the importance of National Building Renovation Plans (NBRPs), which replace previous long-term renovation strategies. These plans are meant to serve as comprehensive roadmaps aligning national targets, financial mechanisms, and legislative measures. However, challenges persist in data collection, institutional capacity, and financing, making it difficult for Member States to establish effective NBRPs.
The directive also introduces Zero-Emission Buildings (ZEBs) as a mandatory standard for all new constructions, with public buildings expected to comply from 2028 and all other buildings from 2030. While this is a significant step towards decarbonisation, Member States must first define clear ZEB methodologies and financing mechanisms to facilitate widespread adoption.
For existing buildings, the Minimum Energy Performance Standards (MEPS) and national renovation trajectories are central to the directive. By 2030, the worst-performing 16% of non-residential buildings must be renovated, with a further 26% requiring upgrades by 2033. Meanwhile, Member States must establish progressive residential renovation trajectories to gradually improve the energy performance of housing stock. However, ensuring compliance remains a challenge, requiring robust enforcement mechanisms and financial incentives.
In addition to these structural changes, the directive introduces renovation passports, which provide building owners with a step-by-step renovation roadmap. This initiative aims to facilitate deep renovations, yet its success depends on well-defined national frameworks and sufficient financial support.
Despite these advancements, the BPIE report highlights key cross-cutting challenges that must be addressed to ensure successful EPBD implementation. Regulatory inconsistencies, institutional capacity constraints, and insufficient financial mechanisms remain major barriers. Additionally, a shortage of skilled workers in the construction sector threatens the timely adoption of energy-efficient building practices. Public awareness and stakeholder engagement are also critical, as the success of these measures depends on their acceptance and implementation at all levels.
Challenges and Opportunities for the EPS Industry
For the EPS industry, the EPBD 2024 presents a shifting regulatory landscape that brings both market expansion opportunities and significant adaptation challenges. The emphasis on insulation and energy efficiency reinforces the importance of EPS as a high-performance and cost-effective material. However, evolving sustainability expectations mean that the industry must also address environmental concerns and demonstrate its compatibility with circular economy principles.
One of the most immediate benefits for EPS manufacturers is the growing demand for insulation materials driven by MEPS and national renovation trajectories. As millions of buildings require energy upgrades in the coming years, EPS is well-positioned to play a key role in achieving efficiency targets. Its affordability, lightweight properties, and high thermal resistance make it an attractive choice for large-scale renovations and new zero-emission buildings.
While EPS already contributes to significant energy savings throughout a building’s lifetime, it is also 100% recyclable, and numerous initiatives within the construction sector demonstrate its effective recyclability. For example, EPSolutely in Austria showcases how EPS waste from construction and demolition can be efficiently collected, processed, and reintegrated into new insulation materials. Such projects reinforce the industry’s commitment to circular economy principles and highlight the feasibility of large-scale EPS recycling. As the EPBD 2024 encourages the use of sustainable materials, promoting these successful recycling initiatives will be crucial in ensuring that EPS continues to be recognised as a key solution for energy-efficient renovations and zero-emission buildings.
The fragmentation of regulatory approaches across the EU is another key challenge. While the EPBD sets overall objectives, each country is responsible for defining its own MEPS and renovation trajectory frameworks. As a result, the EPS industry must navigate varying national requirements, financial incentives, and compliance standards, creating potential market uncertainties. In some cases, insulation subsidies and renovation grants may favour alternative materials which could impact EPS adoption rates.
Another factor to consider is the growing competition for alternative insulation materials. Bio-based solutions and other innovative materials are gaining traction, partly due to favourable sustainability policies and public subsidies. To maintain its market position, the EPS industry must reinforce its low-carbon credentials, highlight its energy efficiency advantages, and continue improving its recycling capabilities.
Adapting to the evolving policy landscape will require a proactive approach from the EPS industry. Investing in low-carbon production methods, improving recycling infrastructure, and engaging with policymakers to secure eligibility for renovation incentives will be crucial. Manufacturers should also focus on providing technical guidance to architects, contractors, civil engineers and decision-makers to ensure EPS remains a recognised solution for meeting energy efficiency targets.
Conclusion
The EPBD 2024 represents a transformative shift for the European building sector, with far-reaching implications for the EPS industry. The directive’s emphasis on energy performance and insulation creates significant opportunities for market expansion, particularly in the context of large-scale renovations and the transition to zero-emission buildings. However, evolving sustainability expectations and regulatory complexities introduce new challenges that require strategic adaptation.
For the EPS industry to thrive in this changing environment, manufacturers must demonstrate their commitment to circular economy principles, enhance their sustainability credentials, and actively engage in policy discussions to secure favourable market conditions. Strengthening recycling capabilities, improving product transparency, and aligning with regulatory trends will be key to ensuring long-term success.
By proactively addressing these challenges, the EPS sector can position itself as an indispensable player in Europe’s energy transition, supporting the decarbonisation of the built environment while ensuring compliance with the EPBD 2024’s ambitious goals.