Directive (EU) 2023/1791

1. This Directive establishes a common framework of measures to promote energy efficiency within the Union in order to ensure that the Union’s targets on energy efficiency are met and enables further energy efficiency improvements. The aim of that common framework is to contribute to the implementation of Regulation (EU) 2021/1119 of the European Parliament and of the Council (1) and to the Union’s security of energy supply by reducing its dependence on energy imports, including fossil fuels.

This Directive lays down rules designed to implement energy efficiency as a priority across all sectors, remove barriers in the energy market and overcome market failures that impede efficiency in the supply, transmission, storage and use of energy. It also provides for the establishment of indicative national energy efficiency contributions for 2030.

This Directive contributes to the implementation of the energy efficiency first principle, thus also contributing to the Union being an inclusive, fair and prosperous society with a modern, resource-efficient and competitive economy.

2. The requirements laid down in this Directive are minimum requirements and shall not prevent any Member State from maintaining or introducing more stringent measures. Such measures shall comply with Union law. Where national legislation provides for more stringent measures, the Member State shall notify such legislation to the Commission.

For the purposes of this Directive, the following definitions apply:

(1) ‘energy’ means energy products as defined in Article 2, point (d), of Regulation (EC) No 1099/2008 of the European Parliament and of the Council (2);

(2) ‘energy efficiency first’ means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999;

(3) ‘energy system’ means a system primarily designed to supply energy-services to satisfy the demand of end-use sectors for energy in the forms of heat, fuels, and electricity;

(4) ‘system efficiency’ means the selection of energy-efficient solutions where they also enable a cost-effective decarbonisation pathway, additional flexibility and the efficient use of resources;

(5) ‘primary energy consumption’ or ‘PEC’ means gross available energy, excluding international maritime bunkers, final non-energy consumption and ambient energy;

(6) ‘final energy consumption’ or ‘FEC’ means all energy supplied to industry, to transport, including energy consumption in international aviation, to households, to public and private services, to agriculture, to forestry, to fishing and to other end-use sectors, excluding energy consumption in international maritime bunkers, ambient energy and deliveries to the transformation sector and to the energy sector, and losses due to transmission and distribution as defined in Annex A to Regulation (EC) No 1099/2008;

(7) ‘ambient energy’ means ambient energy as defined in Article 2, point (2), of Directive (EU) 2018/2001;

(8) ‘energy efficiency’ means the ratio of output of performance, service, goods or energy to input of energy;

(9) ‘energy savings’ means an amount of saved energy determined by measuring or estimating consumption, or both,, before and after the implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption;

(10) ‘energy efficiency improvement’ means an increase in energy efficiency as a result of any technological, behavioural or economic changes;

(11) ‘energy service’ means the physical benefit, utility or good derived from a combination of energy with energy-efficient technology or with action, which may include the operations, maintenance and control necessary to deliver the service, which is delivered on the basis of a contract and in normal circumstances has proven to result in verifiable and measurable or estimable energy efficiency improvement or primary energy savings;

(12) ‘public bodies’ means national, regional or local authorities and entities directly financed and administered by those authorities but not having an industrial or commercial character;

(13) ‘total useful floor area’ means the floor area of a building, or part of a building, where energy is used to condition the indoor climate;

(14) ‘contracting authorities’ means contracting authorities as defined in Article 6(1) of Directive 2014/23/EU, Article 2(1), point (1), of Directive 2014/24/EU and Article 3(1) of Directive 2014/25/EU;

(15) ‘contracting entities’ means contracting entities as defined in Article 7(1) of Directive 2014/23/EU and Article 4(1) of Directive 2014/25/EU;

(16) ‘energy management system’ means a set of interrelated or interacting elements of a strategy which sets an energy efficiency objective and a plan to achieve that objective, including the monitoring of actual energy consumption, actions taken to increase energy efficiency and the measurement of progress;

(17) ‘European standard’ means a standard adopted by the European Committee for Standardization, the European Committee for Electrotechnical Standardization or the European Telecommunications Standards Institute, which is made available for public use;

(18) ‘international standard’ means a standard adopted by the International Organization for Standardization, which is made available for public use;

(19) ‘obligated party’ means an energy distributor, retail energy sales company or transmission system operator, which is bound by the national energy efficiency obligation schemes referred to in Article 9;

(20) ‘entrusted party’ means a legal entity with delegated power from a government or other public body to develop, manage or operate a financing scheme on behalf of that government or other public body;

(21) ‘participating party’ means an enterprise or public body that has committed itself to reaching certain objectives under a voluntary agreement, or that is covered by a national regulatory policy instrument;

(22) ‘implementing public authority’ means a body governed by public law which is responsible for the carrying out or monitoring of energy or carbon taxation, financial schemes and instruments, fiscal incentives, standards and norms, energy labelling schemes, training or education;

(23) ‘policy measure’ means a regulatory, financial, fiscal, voluntary or information provision instrument formally established and implemented in a Member State to create a supportive framework, requirement or incentive for market actors to provide and purchase energy services and to undertake other energy efficiency improvement measures;

(24) ‘individual action’ means an action that leads to verifiable and measurable or estimable energy efficiency improvements and that is undertaken as a result of a policy measure;

(25) ‘energy distributor’ means a natural or legal person, including a distribution system operator, who is responsible for transporting energy with a view to its delivery to final customers or to distribution stations that sell energy to final customers;

(26) ‘distribution system operator’ means distribution system operator as defined in Article 2, point (29), of Directive (EU) 2019/944 as regards electricity or Article 2, point (6), of Directive 2009/73/EC as regards gas;

(27) ‘retail energy sales company’ means a natural or legal person who sells energy to final customers;

(28) ‘final customer’ means a natural or legal person who purchases energy for own end use;

(29) ‘energy service provider’ means a natural or legal person who delivers energy services or energy efficiency improvement measures in a final customer’s facility or premises;

(30) ‘small and medium-sized enterprises’ or ‘SMEs’ means enterprises as defined in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC (3);

(31) ‘microenterprise’ means an enterprise as defined in Article 2(3) of the Annex to Recommendation 2003/361/EC;

(32) ‘energy audit’ means a systematic procedure with the purpose of obtaining adequate knowledge of the energy consumption profile of a building or group of buildings, an industrial or commercial operation or installation or a private or public service, identifying and quantifying opportunities for cost-effective energy savings, identifying the potential for cost-effective use or production of renewable energy and reporting the findings;

(33) ‘energy performance contracting’ means a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract, where the works, supply or service in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or another agreed energy performance criterion, such as financial savings;

(34) ‘smart metering system’ means smart metering system as defined in Article 2, point (23), of Directive (EU) 2019/944 or intelligent metering system as referred to in Directive 2009/73/EC;

(35) ‘transmission system operator’ means transmission system operator as defined in Article 2, point (35), of Directive (EU) 2019/944 as regards electricity or Article 2, point (4), of Directive 2009/73/EC as regards gas;

(36) ‘cogeneration’ means the simultaneous generation in one process of thermal energy and electrical or mechanical energy;

(37) ‘economically justifiable demand’ means a demand that does not exceed the needs for heating or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration;

(38) ‘useful heat’ means heat produced in a cogeneration process to satisfy an economically justifiable demand for heating or cooling;

(39) ‘electricity from cogeneration’ means electricity generated in a process linked to the production of useful heat and calculated in accordance with the general principles set out in Annex II;

(40) ‘high-efficiency cogeneration’ means cogeneration meeting the criteria laid down in Annex III;

(41) ‘overall efficiency’ means the annual sum of electricity and mechanical energy production and useful heat output divided by the fuel input used for heat produced in a cogeneration process and gross electricity and mechanical energy production;

(42) ‘power-to-heat ratio’ means the ratio of electricity from cogeneration to useful heat when operating in full cogeneration mode using operational data of the specific unit;

(43) ‘cogeneration unit’ means a unit that is able to operate in cogeneration mode;

(44) ‘small-scale cogeneration unit’ means a cogeneration unit with installed capacity below 1 MWe;

(45) ‘micro-cogeneration unit’ means a cogeneration unit with a maximum capacity below 50 kWe;

(46) ‘efficient district heating and cooling’ means a district heating or cooling system meeting the criteria laid down in Article 26;

(47) ‘efficient heating and cooling’ means a heating and cooling option that, compared to a baseline scenario reflecting a business-as-usual situation, measurably reduces the input of primary energy needed to supply one unit of delivered energy within a relevant system boundary in a cost-effective way, as assessed in the cost-benefit analysis referred to in this Directive, taking into account the energy required for extraction, conversion, transport and distribution;

(48) ‘efficient individual heating and cooling’ means an individual heating and cooling supply option that, compared to efficient district heating and cooling, measurably reduces the input of non-renewable primary energy needed to supply one unit of delivered energy within a relevant system boundary or requires the same input of non-renewable primary energy but at a lower cost, taking into account the energy required for extraction, conversion, transport and distribution;

(49) ‘data centre’ means data centre as defined in Annex A, point 2.6.3.1.16, of Regulation (EC) No 1099/2008;

(50) ‘substantial refurbishment’ means a refurbishment the cost of which exceeds 50 % of the investment cost for a new comparable unit;

(51) ‘aggregator’ means independent aggregator as defined in Article 2, point (19), of Directive (EU) 2019/944;

(52) ‘energy poverty’ means a household’s lack of access to essential energy services, where such services provide basic levels and decent standards of living and health, including adequate heating, hot water, cooling, lighting, and energy to power appliances, in the relevant national context, existing national social policy and other relevant national policies, caused by a combination of factors, including at least non-affordability, insufficient disposable income, high energy expenditure and poor energy efficiency of homes;

(53) ‘final user’ means a natural or legal person purchasing heating, cooling or domestic hot water for their own end use, or a natural or legal person occupying an individual building or a unit in a multi-apartment or multi-purpose building supplied with heating, cooling or domestic hot water from a central source, where such a person has no direct or individual contract with the energy supplier;

(54) ‘split incentives’ means the lack of fair and reasonable distribution of financial obligations and rewards relating to energy efficiency investments among the actors concerned, for example the owners and tenants or the different owners of building units, or owners and tenants or different owners of multi-apartment or multi-purpose buildings.

(55) ‘engagement strategy’ means a strategy that sets objectives, develops techniques and establishes the process by which to involve all relevant stakeholders at national or local level, including civil society representatives such as consumer organisations, in the policy-making process, with the goal of increasing awareness, obtaining feedback on such policies and improving their public acceptance.

(56) ‘statistically significant proportion and representative sample of the energy efficiency improvement measures’ means such a proportion and sample which require the establishment of a subset of a statistical population of the energy savings measures in question in such a way as to reflect the entire population of all energy savings measures, and thus allow for reasonably reliable conclusions regarding confidence in the totality of the measures.

1. In accordance with the energy efficiency first principle, Member States shall ensure that energy efficiency solutions, including demand-side resources and system flexibilities, are assessed in planning, policy and major investment decisions of a value of more than EUR 100 000 000 each or EUR 175 000 000 for transport infrastructure projects, relating to the following sectors:(a) energy systems; and(b) non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency such as buildings, transport, water, information and communications technology (ICT), agriculture and financial sectors.

2. By 11 October 2027, the Commission shall carry out an assessment of the thresholds set out in paragraph 1, with the aim of downward revision, taking into account possible developments in the economy and in the energy market. The Commission shall, by 11 October 2028, submit a report to the European Parliament and to the Council, followed, where appropriate, by legislative proposals.

3. In applying this Article, Member States are encouraged to take into account Commission Recommendation (EU) 2021/1749 (4).

4. Member States shall ensure that the competent authorities monitor the application of the energy efficiency first principle, including, where appropriate, sector integration and cross-sectoral impacts, where policy, planning and investment decisions are subject to approval and monitoring requirements.

5. In applying the energy efficiency first principle, Member States shall:(a) promote and, where cost-benefit analyses are required, ensure the application of, and make publicly available, cost-benefit methodologies that allow proper assessment of the wider benefits of energy efficiency solutions where appropriate, taking into account the entire life cycle and long-term perspective, system and cost efficiency, security of supply and quantification from the societal, health, economic and climate neutrality perspectives, sustainability and circular economy principles in transition to climate neutrality;(b) address the impact on energy poverty;(c) identify an entity or entities responsible for monitoring the application of the energy efficiency first principle and the impacts of regulatory frameworks, including financial regulations, planning, policy and the major investment decisions referred to in paragraph 1 on energy consumption, energy efficiency and energy systems;(d) report to the Commission, as part of their integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999, on how the energy efficiency first principle was taken into account in the national and, where applicable, regional and local planning, policy and major investment decisions related to the national and regional energy systems including at least the following:(i) an assessment of the application and benefits of the energy efficiency first principle in energy systems, in particular in relation to energy consumption;(ii) a list of actions taken to remove any unnecessary regulatory or non-regulatory barriers to the implementation of the energy efficiency first principle and of demand-side solutions, including through the identification of national legislation and measures that are contrary to the energy efficiency first principle.

6. By 11 April 2024, the Commission shall adopt guidelines providing a common general framework including supervision, the monitoring and reporting procedure, which Member States may use to design the cost-benefit methodologies referred to in paragraph 5, point (a), for the purpose of comparability, while leaving the possibility for Member States to adapt to national and local circumstances.

1. Member States shall collectively ensure a reduction of energy consumption of at least 11,7 % in 2030 compared to the projections of the 2020 EU Reference Scenario so that the Union’s final energy consumption amounts to no more than 763 Mtoe. Member States shall make efforts to collectively contribute to the indicative Union primary energy consumption target amounting to no more than 992,5 Mtoe in 2030.

2. Each Member State shall set an indicative national energy efficiency contribution based on final energy consumption to meet, collectively, the Union’s binding final energy consumption target referred to in paragraph 1 of this Article and shall make efforts to contribute collectively to the Union’s indicative primary energy consumption target referred to in that paragraph. Member States shall notify those contributions to the Commission, together with an indicative trajectory for those contributions, as part of the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, and of their integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of that Regulation. When doing so, Member States shall also express their contributions in terms of an absolute level of primary energy consumption in 2030. When setting their indicative national energy efficiency contributions, Member States shall take into account the requirements set out in paragraph 3 of this Article and explain how, and on the basis of which data, the contributions have been calculated. To that end, they may use the formula set out in Annex I to this Directive.

Member States shall provide the shares of primary energy consumption and final energy consumption of energy end-use sectors, as defined in Regulation (EC) No 1099/2008, including industry, residential, services and transport, in their national energy efficiency contributions. Member States shall also indicate projections for energy consumption in ICT.

3. In setting their indicative national energy efficiency contributions referred to in paragraph 2, Member States shall take into account:(a) the Union’s 2030 final energy consumption target of no more than 763 Mtoe and the primary energy consumption target of no more than 992,5 Mtoe, as provided for in paragraph 1;(b) the measures provided for in this Directive;(c) other measures to promote energy efficiency within Member States and at Union level;(d) any relevant factors affecting efficiency efforts:(i) early efforts and actions in energy efficiency;(ii) the equitable distribution of efforts across the Union;(iii) the energy intensity of the economy;(iv) the remaining cost-effective energy-saving potential;(e) other national circumstances affecting energy consumption, in particular:(i) GDP and demographic evolution and forecast;(ii) changes of energy imports and exports, developments in the energy mix and the deployment of new sustainable fuels;(iii) the development of all sources of renewable energies, nuclear energy, carbon capture and storage;(iv) the decarbonisation of energy intensive industries;(v) the level of ambition in the national decarbonisation or climate neutrality plans;(vi) economic energy savings potential;(vii) current climate conditions and climate change forecast.

4. When applying the requirements set out in paragraph 3, a Member State shall ensure that its contribution in Mtoe is not more than 2,5 % above what it would have been had it resulted from the formula set out in Annex I.

5. The Commission shall assess that the collective contribution of Member States is at least equal to the Union’s binding target for final energy consumption set out in paragraph 1 of this Article. Where the Commission concludes that it is insufficient, as part of its assessment of the draft updated national energy and climate plans pursuant to Article 9(2) of Regulation (EU) 2018/1999, or at the latest by 1 March 2024, taking into consideration the updated 2020 EU Reference Scenario pursuant to this paragraph, the Commission shall submit to each Member State a corrected indicative national energy efficiency contribution for final energy consumption on the basis of:(a) the remaining collective reduction of final energy consumption needed to achieve the Union’s binding target set out in paragraph 1;(b) the relative GHG intensity per GDP unit in 2019 among the Member States concerned;(c) the GDP of those Member States in 2019.

Before applying the formula in Annex I for the mechanism established in this paragraph and at the latest by 30 November 2023, the Commission shall update the 2020 EU Reference Scenario on the basis of the latest Eurostat data reported by the Member States, in accordance with Article 4(2), point (b), and Article 14 of Regulation (EU) 2018/1999.

Notwithstanding Article 37 of this Directive, Member States that wish to update their indicative national energy efficiency contributions pursuant to paragraph 2 of this Article, using the updated 2020 EU Reference Scenario, shall notify their updated indicative national energy efficiency contribution at the latest by 1 February 2024. Where a Member State wishes to update its indicative national energy efficiency contribution, it shall ensure that its contribution in Mtoe is not more than 2,5 % above what it would have been had it resulted from the formula set out in Annex I with the use of the updated 2020 EU Reference Scenario.

Member States to which a corrected indicative national energy efficiency contribution was submitted by the Commission shall update their indicative national energy efficiency contributions pursuant to paragraph 2 of this Article, with the corrected indicative national energy efficiency contribution for final energy consumption together with an update of their indicative trajectory for those contribution and, where applicable, their additional measures, as part of the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999. The Commission shall, in accordance with that Regulation, require Member States to submit, without delay, their corrected indicative energy efficiency contribution and, where applicable, their additional measures to ensure the application of the mechanism set out in this paragraph.

Where a Member State has notified an indicative national energy efficiency contribution for final energy consumption in Mtoe equal to or below what it would have been had it resulted from the formula set out in Annex I, the Commission shall not amend that contribution.

When applying the mechanism set out in this paragraph, the Commission shall ensure that there is no difference left between the sum of the national contributions of all Member States and the Union’s binding target set out in paragraph 1.

6. Where the Commission concludes, on the basis of its assessment pursuant to Article 29(1) and (3) of Regulation (EU) 2018/1999, that insufficient progress has been made towards meeting the energy efficiency contributions, Member States that are above their indicative trajectories for final energy consumption referred to in paragraph 2 of this Article shall ensure that additional measures are implemented within one year of the date of receipt of the Commission’s assessment in order to get back on track to reach their energy efficiency contributions. Those additional measures shall include, but shall not be limited to, at least one of the following measures:(a) national measures delivering additional energy savings, including stronger project development assistance for the implementation of energy efficiency investment measures;(b) increasing the energy savings obligation set out in Article 8 of this Directive;(c) adjusting the obligation for public sector;(d) making a voluntary financial contribution to the national energy efficiency fund referred to in Article 30 of this Directive or another financing instrument dedicated to energy efficiency, where the annual financial contributions shall be equal to the investments required to reach the indicative trajectory.

Where a Member State’s final energy consumption is above its indicative trajectory for final energy consumption referred to in paragraph 2 of this Article, it shall include in its integrated national energy and climate progress report submitted pursuant to Article 17 of Regulation (EU) 2018/1999 an explanation of the measures it will take to cover the gap in order to ensure that it reaches its national energy efficiency contributions and the amount of energy savings expected to be delivered.

The Commission shall assess whether the national measures referred to in this paragraph are sufficient to achieve the Union’s energy efficiency targets. Where national measures are deemed to be insufficient, the Commission shall, as appropriate, propose measures and exercise its power at Union level in order to ensure, in particular, the achievement of the Union’s 2030 targets for energy efficiency.

7. The Commission shall assess by 31 December 2026 any methodological changes in the data reported pursuant to Regulation (EC) No 1099/2008, in the methodology for calculating energy balance, and in energy models for European energy use, and, if necessary, propose technical calculation adjustments to the Union’s 2030 targets with a view to maintaining the level of ambition set out in paragraph 1 of this Article.

1. Member States shall ensure that the total final energy consumption of all public bodies combined is reduced by at least 1,9 % each year, when compared to 2021.

Member States may choose to exclude public transport or the armed forces from the obligation laid down in the first subparagraph.

For the purposes of the first and second subparagraphs, Member States shall establish a baseline, which includes the final energy consumption of all public bodies, except in public transport or the armed forces, for 2021. Energy consumption reduction of public transport and armed forces is indicative and may still count for fulfilling the obligation under the first subparagraph even if excluded from the baseline under this Article.

2. During a transitional period ending on 11 October 2027 the target set out in paragraph 1 shall be indicative. During that transitional period, Member States may use estimated consumption data, and, by the same date, Member States shall adjust the baseline and align the estimated final energy consumption of all public bodies to the actual final energy consumption of all public bodies.

3. The obligation laid down in paragraph 1 shall not include, until 31 December 2026, the energy consumption of public bodies in local administrative units with a population of less than 50 000 and, until 31 December 2029, the energy consumption of public bodies in local administrative units with a population of less than 5 000 inhabitants.

4. A Member State may take into account climatic variations within it when calculating its public bodies’ final energy consumption.

5. Member States shall include in the updates, submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, of their national energy and climate plans, notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, the amount of energy consumption reduction to be achieved by all public bodies, disaggregated by sector, and the measures that they plan to adopt for the purpose of achieving those reductions. As part of their integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999, Member States shall report to the Commission the final energy consumption reduction achieved every year.

6. Member States shall ensure that regional and local authorities establish specific energy efficiency measures in their long-term planning tools, such as decarbonisation or sustainable energy plans, after consulting relevant stakeholders, including energy agencies where appropriate, and the public, including, in particular, vulnerable groups which are at risk of being affected by energy poverty or are more susceptible to its effects.

Member States shall also ensure that the competent authorities take actions to mitigate significant negative direct or indirect impacts of energy efficiency measures on energy poor, low-income households or vulnerable groups when designing and implementing energy efficiency measures.

7. Member States shall support public bodies. Such support may, without prejudice to the State aid rules, include financial and technical support, for the purpose of taking up energy efficiency improvement measures and encouraging public bodies to take into account the wider benefits beyond energy savings, for example the quality of the indoor environment, including at regional and local level, by providing guidelines, promoting competence building, the acquisition of skills and training opportunities, and by encouraging cooperation among public bodies.

8. Member States shall encourage public bodies to consider life cycle carbon emissions as well as the economic and social benefits of their public bodies’ investment and policy activities.

9. Member States shall encourage public bodies to improve the energy performance of buildings owned or occupied by public bodies, including by means of the replacement of old and inefficient heaters.

1. Without prejudice to Article 7 of Directive 2010/31/EU, each Member State shall ensure that at least 3 % of the total floor area of heated and/or cooled buildings that are owned by public bodies is renovated each year to be transformed into at least nearly zero-energy buildings or zero-emission buildings in accordance with Article 9 of Directive 2010/31/EU.

Member States may choose which buildings to include in the 3 % renovation requirement, giving due consideration to cost-effectiveness and technical feasibility in the choice of buildings to renovate.

Member States may exempt social housing from the obligation to renovate referred to in the first subparagraph where such renovations would not be cost neutral or would lead to rent increases for people living in social housing unless such rent increases are no higher than the economic savings on the energy bill.

Where public bodies occupy a building that they do not own, they shall negotiate with the owner, in particular when reaching a trigger point such as the renewal of rental, change of use, significant repair or maintenance work, with the aim of establishing contractual clauses for the building to become at least a nearly zero-energy building or zero-emission building.

The rate of at least 3 % shall be calculated on the total floor area of buildings which have a total useful floor area of over 250 m2, that are owned by public bodies and that, on 1 January 2024, are not nearly zero-energy buildings.

2. Member States may apply requirements that are less stringent than those laid down in paragraph 1 for the following categories of buildings:(a) buildings officially protected as part of a designated environment, or because of their special architectural or historical merit, in so far as compliance with certain minimum energy performance requirements would alter their character or appearance unacceptably;(b) buildings owned by the armed forces or central government and serving national defence purposes, apart from single living quarters or office buildings for the armed forces and other staff employed by national defence authorities;(c) buildings used as places of worship and for religious activities.

Member States may decide not to renovate any building that is not referred to in the first subparagraph of this paragraph up to the level provided for in paragraph 1 if they assess that it is not technically, economically or functionally feasible for that building to be transformed into a nearly zero-energy building. Where they so decide, Member States shall not count the renovation of that building towards the fulfilment of the requirement set out in paragraph 1.

3. In order to front load energy savings and to provide an incentive for early action, a Member State that renovates more than 3 % of the total floor area of its buildings in accordance with paragraph 1 in any year until 31 December 2026 may count the surplus towards the annual renovation rate of any of the following three years. A Member State that renovates more than 3 % of the total floor area of its buildings as of 1 January 2027 may count the surplus towards the annual renovation rate of the following two years.

4. Member States may count towards the annual renovation rate of buildings new buildings owned as replacements for specific public bodies’ buildings demolished in any of the two previous years. This shall apply only where they would be more cost effective and sustainable in terms of the energy and lifecycle CO2 emissions achieved compared to the renovations of such buildings. The general criteria, methodologies and procedures to identify such exceptional cases shall be clearly set out and published by each Member State.

5. By 11 October 2025, Member States shall, for the purposes of this Article, establish and make publicly available and accessible an inventory of heated and/or cooled buildings that are owned or occupied by public bodies and that have a total useful floor area of more than 250 m2. Member States shall update that inventory at least every two years. The inventory shall be linked to the building stock overview carried out in the framework of the national building renovation plans in accordance with Directive 2010/31/EU and the relevant databases.

Publicly available and accessible data about building stock characteristics, buildings renovation and energy performance may be aggregated by the EU Building Stock Observatory to ensure a better understanding of the energy performance of the building sector through comparable data.

The inventory shall contain at least the following data:

(a) the floor area in m2;

(b) the measured annual energy consumption of heat, cooling, electricity and hot water when those data are available;

(c) the energy performance certificate of each building issued in accordance with Directive 2010/31/EU.

6. Member States may decide to apply an alternative approach to that set out in paragraphs 1 to 4 for the purpose of achieving, every year, an amount of energy savings in the buildings of public bodies which is at least equivalent to the amount required in paragraph 1.

For the purpose of applying that alternative approach, Member States shall:

(a) ensure that, each year, a renovation passport is introduced, where applicable, for buildings representing at least 3 % of the total floor area of heated and/or cooled buildings that are owned by public bodies. For those buildings, the renovation to nearly zero-energy building shall be achieved at the latest by 2040;

(b) estimate the energy savings that paragraphs 1 to 4 would generate by using appropriate standard values for the energy consumption of reference public bodies’ buildings before and after renovation to be transformed into nearly zero-energy buildings as referred to in Directive 2010/31/EU.

Member States that decide to apply the alternative approach shall notify to the Commission, by 31 December 2023, their projected energy savings to achieve at least the equivalent of energy savings in the buildings covered by paragraph 1 by 31 December 2030.

1. Member States shall ensure that contracting authorities and contracting entities, when concluding public contracts and concessions with a value equal to or greater than the thresholds laid down in Article 8 of Directive 2014/23/EU, Article 4 of Directive 2014/24/EU and Article 15 of Directive 2014/25/EU, purchase only products, services buildings and works with high energy-efficiency performance in accordance with the requirements referred to in Annex IV to this Directive, unless it is not technically feasible.

Member States shall also ensure that in concluding the public contracts and concessions with a value equal to or greater than the thresholds referred to in the first subparagraph, contracting authorities and contracting entities apply the energy efficiency first principle in accordance with Article 3, including for those public contracts and concessions for which no specific requirements are provided for in Annex IV.

2. The obligations referred to in paragraph 1 of this Article shall not apply if they undermine public security or impede the response to public health emergencies. The obligations referred to in paragraph 1 of this Article shall apply to the contracts of the armed forces only to the extent that their application does not cause any conflict with the nature and primary aim of the activities of the armed forces. The obligations shall not apply to contracts for the supply of military equipment as defined in Directive 2009/81/EC of the European Parliament and of the Council (5).

3. Notwithstanding Article 29(4), Member States shall ensure that contracting authorities and contracting entities assess the feasibility of concluding long-term energy performance contracts that provide long-term energy savings when procuring service contracts with significant energy content.

4. Without prejudice to paragraph 1 of this Article, when purchasing a product package fully covered by a delegated act adopted under Regulation (EU) 2017/1369, Member States may require that the aggregate energy efficiency take priority over the energy efficiency of individual products within that package, by purchasing the product package that complies with the criterion of belonging to the highest available energy efficiency class.

5. Member States may require that contracting authorities and contracting entities, when concluding contracts as referred to in paragraph 1 of this Article, take into account, where appropriate, wider sustainability, social, environmental and circular economy aspects in procurement practices with a view to achieving the Union’s decarbonisation and zero pollution objectives. Where appropriate, and in accordance with Annex IV, Member States shall require contracting authorities and contracting entities to take into account Union green public procurement criteria or available equivalent national criteria.

To ensure transparency in the application of energy efficiency requirements in the procurement process, Member States shall ensure that contracting authorities and contracting entities make publicly available information on the energy efficiency impact of contracts with a value equal to or greater than the thresholds referred to in paragraph 1 by publishing that information in the respective notices on Tenders Electronic Daily (TED), in accordance with Directives 2014/23/EU, 2014/24/EU and 2014/25/EU, and Commission Implementing Regulation (EU) 2019/1780 (6). Contracting authorities may decide to require that tenderers disclose information on the life cycle global warming potential, the use of low carbon materials and the circularity of materials used for a new building and for a building to be renovated. Contracting authorities may make that information publicly available for the contracts, in particular for new buildings having a floor area larger than 2 000 m2.

Member States shall support contracting authorities and contracting entities in the uptake of energy efficiency requirements, including at regional and local level, by providing clear rules and guidelines including methodologies on the assessment of life cycle costs and environment impacts and costs, setting up competence support centres, encouraging cooperation amongst contracting authorities, including across borders, and using aggregated procurement and digital procurement where possible.

6. Where appropriate, the Commission may provide further guidance to national authorities and procurement officials in the application of energy efficiency requirements in the procurement process. Such support may strengthen existing fora for the purpose of supporting Member States, such as by means of concerted action, and may assist them in taking the green public procurement criteria into account.

7. Member States shall establish the legal and regulatory provisions, and administrative practices, regarding public purchasing and annual budgeting and accounting, necessary to ensure that individual contracting authorities are not deterred from making investments in improving energy efficiency and from using energy performance contracting and third-party financing mechanisms on a long-term contractual basis.

8. Member States shall remove any regulatory or non-regulatory barriers to energy efficiency, in particular as regards legal and regulatory provisions, and administrative practices, regarding public purchasing and annual budgeting and accounting, with a view to ensuring that individual public bodies are not deterred from making investments in improving energy efficiency and from using energy performance contracting and third-party financing mechanisms on a long-term contractual basis.

Member States shall report to the Commission on the measures taken to address the barriers to uptake of energy efficiency improvements as part of their integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999.

1. Member States shall achieve cumulative end-use energy savings at least equivalent to:(a) new savings each year from 1 January 2014 to 31 December 2020 of 1,5 % of annual energy sales to final customers by volume, averaged over the most recent three-year period preceding 1 January 2013. Sales of energy, by volume, used in transport may be excluded, in whole or in part, from that calculation;(b) new savings each year from 1 January 2021 to 31 December 2030 of:(i) 0,8 % of annual final energy consumption from 1 January 2021 to 31 December 2023, averaged over the most recent three-year period preceding 1 January 2019;(ii) 1,3 % of annual final energy consumption from 1 January 2024 to 31 December 2025, averaged over the most recent three-year period preceding 1 January 2019;(iii) 1,5 % of annual final energy consumption from 1 January 2026 to 31 December 2027, averaged over the most recent three-year period preceding 1 January 2019;(iv) 1,9 % of annual final energy consumption from 1 January 2028 to 31 December 2030, averaged over the most recent three-year period preceding 1 January 2019.

By way of derogation from point (b)(i) of the first subparagraph, Cyprus and Malta shall achieve new savings each year from 1 January 2021 to 31 December 2023, equivalent to 0,24 % of annual final energy consumption, averaged over the most recent three-year period prior to 1 January 2019.

By way of derogation from points (b)(ii), (iii) and (iv) of the first subparagraph, Cyprus and Malta shall achieve new savings each year from 1 January 2024 to 31 December 2030 equivalent to 0,45 % of annual FEC, averaged over the most recent three-year period preceding 1 January 2019.

Member States shall decide how to phase the calculated quantity of new savings over each period referred to in points (a) and (b) of the first subparagraph, provided that the required total cumulative end-use energy savings have been achieved by the end of each obligation period.

Member States shall continue to achieve new annual savings in accordance with the savings rate provided for in point (b)(iv) of the first subparagraph for ten-year periods after 2030.

2. Member States shall achieve the amount of energy savings required under paragraph 1 of this Article either by establishing an energy efficiency obligation scheme as referred to in Article 9 or by adopting alternative policy measures as referred to in Article 10. Member States may combine an energy efficiency obligation scheme with alternative policy measures. Member States shall ensure that energy savings resulting from the policy measures referred to in Articles 9 and 10 and Article 30(14) are calculated in accordance with Annex V.

3. Member States shall implement energy efficiency obligation schemes, alternative policy measures, or a combination of both, or programmes or measures financed under a national energy efficiency fund, as a priority among, but not limited to, people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. Member States shall ensure that policy measures implemented pursuant to this Article have no adverse effect on those persons. Where applicable, Member States shall make the best possible use of funding, including public funding, funding facilities established at Union level, and revenues from allowances pursuant to Article 24(3), point (b), with the aim of removing adverse effects and ensuring a just and inclusive energy transition.

For the purpose of achieving the energy savings required under paragraph 1 and without prejudice to Regulation (EU) 2019/943 and Directive (EU) 2019/944, Member States shall, for the purpose of designing such policy measures, consider and promote the role of renewable energy communities and citizen energy communities in the contribution to the implementation towards those policy measures.

Member States shall establish and achieve a share of the required amount of cumulative end-use energy savings among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. This share shall at least be equal to the proportion of households in energy poverty as assessed in their national energy and climate plans established in accordance with Article 3(3), point (d), of Regulation (EU) 2018/1999. Member States shall, in their assessment of the share of energy poverty in their national energy and climate plans, consider the following indicators:

(a) the inability to keep the home adequately warm (Eurostat, SILC [ilc_mdes01]);

(b) the arrears on utility bills (Eurostat, SILC [ilc_mdes07]);

(c) the total population living in a dwelling with a leaking roof, damp walls, floors or foundation, or rot in window frames or floor (Eurostat, SILC [ilc_mdho01]);

(d) at-risk-of-poverty rate (Eurostat, SILC and ECHP surveys [ilc_li02]) (cutoff point: 60 % of median equivalised income after social transfers).

If a Member State has not notified the share of households in energy poverty as assessed in their national energy and climate plan, the share of the required amount of cumulative end-use energy savings among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing, shall be at least equal to the arithmetic average share of the indicators referred to in the third subparagraph for the year 2019 or, if not available for 2019, for the linear extrapolation of their values for the last three years that are available.

4. Member States shall include information about the indicators applied, the arithmetic average share and the outcome of policy measures established in accordance with paragraph 3 of this Article in the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, and in the related national energy and climate progress reports submitted pursuant to Article 17 of that Regulation.

5. Member States may count energy savings that stem from policy measures, whether introduced by 31 December 2020 or after that date, provided that those measures result in new individual actions that are carried out after 31 December 2020. Energy savings achieved in any obligation period shall not count towards the amount of required energy savings for the previous obligation periods set out in paragraph 1.

6. Provided that Member States achieve at least their cumulative end-use energy savings obligation referred to in paragraph 1, first subparagraph, point (b)(i), they may calculate the required amount of energy savings referred to in that point by one or more of the following means:(a) applying an annual savings rate on energy sales to final customers or on final energy consumption, averaged over the most recent three-year period preceding 1 January 2019;(b) excluding, in whole or in part, energy used in transport from the calculation baseline;(c) making use of any of the options set out in paragraph 8.

7. Where Member States make use of any of the possibilities provided for in paragraph 6 regarding the required energy savings referred to in paragraph 1, first subparagraph, point (b)(i), they shall establish:(a) their own annual savings rate that will be applied in the calculation of their cumulative end-use energy savings, which shall ensure that the final amount of their net energy savings is no lower than those required under that point;(b) their own calculation baseline, which may exclude, in whole or in part, energy used in transport.

8. Subject to paragraph 9, each Member State may:(a) carry out the calculation required under paragraph 1, first subparagraph, point (a), using values of 1 % in 2014 and 2015, 1,25 % in 2016 and 2017, and 1,5 % in 2018, 2019 and 2020;(b) exclude from the calculation all or part of the sales of energy used, by volume, with respect to the obligation period referred to in paragraph 1, first subparagraph, point (a), or final energy consumed, with respect to the obligation period referred to in point (b)(i), of that subparagraph, by industrial activities listed in Annex I to Directive 2003/87/EC;(c) count towards the amount of required energy savings in paragraph 1, first subparagraph, points (a) and (b)(i), energy savings achieved in the energy transformation, distribution and transmission sectors, including efficient district heating and cooling infrastructure, as a result of implementing the requirements set out in in Article 25(4), point (a), of Article 26(7), and Article 27(1), (5) to (9) and (11). Member States shall inform the Commission about their intended policy measures under this point for the period from 1 January 2021 to 31 December 2030 as part of their integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12. The impact of those measures shall be calculated in accordance with Annex V and included in those plans;(d) count towards the amount of required energy savings, energy savings resulting from individual actions newly implemented since 31 December 2008 that continue to have an impact in 2020 with respect to the obligation period referred to in paragraph 1, first subparagraph, point (a), and beyond 2020 with respect to the period referred to in point (b)(i), of that subparagraph, and which can be measured and verified;(e) count towards the amount of required energy savings, energy savings that stem from policy measures, provided that it can be demonstrated that those measures result in individual actions carried out from 1 January 2018 to 31 December 2020 which deliver savings after 31 December 2020;(f) exclude from the calculation of the amount of required energy savings pursuant to paragraph 1, first subparagraph, points (a) and (b)(i), 30 % of the verifiable amount of energy generated on or in buildings for own use as a result of policy measures promoting new installation of renewable energy technologies;(g) count towards the amount of required energy savings pursuant to paragraph 1, first subparagraph, points (a) and (b)(i), energy savings that exceed the energy savings required for the obligation period from 1 January 2014 to 31 December 2020, provided that those savings result from individual actions carried out under policy measures referred to in Articles 9 and 10, notified by Member States in their national energy efficiency action plans and reported in their progress reports in accordance with Article 26.

9. Member States shall apply and calculate the effect of the options chosen under paragraph 8 for the period referred to in paragraph 1, first subparagraph, points (a) and (b)(i), separately:(a) for the calculation of the amount of energy savings required for the obligation period referred to in paragraph 1, first subparagraph, point (a), Member States may make use of the options listed in paragraph 8, points (a) to (d). All the options chosen under paragraph 8 taken together shall amount to no more than 25 % of the amount of energy savings referred to in paragraph 1, first subparagraph, point (a);(b) for the calculation of the amount of energy savings required for the obligation period referred to in paragraph 1, first subparagraph, point (b)(i), Member States may make use of the options listed in paragraph 8, points (b) to (g), provided that the individual actions referred to in paragraph 8, point (d), continue to have a verifiable and measurable impact after 31 December 2020. All the options chosen under paragraph 8 taken together shall not lead to a reduction of more than 35 % of the amount of energy savings calculated in accordance with paragraphs 6 and 7.

Regardless of whether Member States exclude, in whole or in part, energy used in transport from their calculation baseline or make use of any of the options listed in paragraph 8, they shall ensure that the calculated net amount of new savings to be achieved in final energy consumption during the obligation period referred to in paragraph 1, first subparagraph, point (b)(i), from 1 January 2021 to 31 December 2023 is not lower than the amount resulting from applying the annual savings rate referred to in that point.

10. Member States shall describe in the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, in their subsequent integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999 and in accordance with Annex III to Regulation (EU) 2018/1999, and respective progress reports the calculation of the amount of energy savings to be achieved over the period from 1 January 2021 to 31 December 2030 and shall, if relevant, explain how the annual savings rate and the calculation baseline were established, and how and to what extent the options referred to in paragraph 8 of this Article were applied.

11. Member States shall notify the Commission of the amount of the required energy savings referred to in paragraph 1, first subparagraph, point (b), and paragraph 3 of this Article, a description of the policy measures to be implemented to achieve the required total amount of the cumulative end-use energy savings and their calculation methodologies pursuant to Annex V to this Directive, as part of the updates of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, and as part of their integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999. Member States shall use the reporting template provided to the Member States by the Commission.

12. Where on the basis of the assessment of the integrated national energy and climate progress reports pursuant to Article 29 of Regulation (EU) 2018/1999, or of the draft or final update of the latest notified integrated national energy and climate plan submitted pursuant to Article 14 of Regulation (EU) 2018/1999, or of the assessment of the subsequent draft and final integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of Regulation (EU) 2018/1999, the Commission concludes that policy measures do not ensure the achievement of the required amount of cumulative end-use energy savings by the end of the obligation period, the Commission may issue recommendations in accordance with Article 34 of Regulation (EU) 2018/1999 to the Member States whose policy measures it deems to be insufficient to ensure the fulfilment of their energy savings obligations.

13. Where a Member State has not achieved the required cumulative end-use energy savings by the end of each obligation period set out in paragraph 1, it shall achieve the outstanding energy savings in addition to the cumulative end-use energy savings required by the end of the following obligation period.

Alternatively, where a Member State has achieved cumulative end-use energy savings above the required level by the end of each obligation period set out in paragraph 1, it shall be entitled to carry the eligible amount of no more than 10 % of such surplus into the following obligation period without the target commitment being increased.

14. As part of their updates of national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, their relevant national energy and climate progress reports submitted pursuant to Article 17 of that Regulation, and their subsequent integrated national energy and climate plans notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, Member States shall demonstrate including, where appropriate, with evidence and calculations:(a) that where there is an overlap in the impact of policy measures or individual actions, there is no double counting of energy savings;(b) how energy savings achieved pursuant to paragraph 1, first subparagraph, point (b), of this Article, contribute to the achievement of their national contribution pursuant to Article 4;(c) that policy measures are established for fulfilling their energy savings obligation, designed in compliance with this Article and that those policy measures are eligible and appropriate to ensure the achievement of the required amount of cumulative end-use energy savings by the end of each obligation period.

1. Where Member States decide to fulfil their obligations to achieve the amount of savings required under Article 8(1) by way of an energy efficiency obligation scheme, they shall ensure that the obligated parties referred to in paragraph 3 of this Article operating in each Member State’s territory achieve, without prejudice to Article 8(8) and (9), their cumulative end-use energy savings requirement as set out in Article 8(1).

Where applicable, Member States may decide that obligated parties fulfil those savings, in whole or in part, as a contribution to the national energy efficiency fund in accordance with Article 30(14).

2. Where Member States decide to fulfil their obligations to achieve the amount of savings required under Article 8(1) by way of an energy efficiency obligation scheme, they may appoint an implementing public authority to administer the scheme.

3. Member States shall designate, on the basis of objective and non-discriminatory criteria, obligated parties among transmission system operators, distribution system operators, energy distributors, retail energy sales companies and transport fuel distributors or transport fuel retailers operating in their territory. The amount of energy savings needed to fulfil the obligation shall be achieved by the obligated parties among final customers, designated by the Member State, independently of the calculation made pursuant to Article 8(1) or, if Member States so decide, through certified savings stemming from other parties as set out in paragraph 11, point (a), of this Article.

4. Where retail energy sales companies are designated as obligated parties under paragraph 3, Member States shall ensure that, in fulfilling their obligation, retail energy sales companies do not create any barriers that impede consumers from switching from one supplier to another.

5. Member States may require obligated parties to achieve a share of their energy savings obligation among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. Member States may also require obligated parties to achieve energy cost reduction targets, provided that they result in end use energy savings and are calculated in accordance with Annex V, and to achieve energy savings by promoting energy efficiency improvement measures, including financial support measures mitigating carbon price effects on SMEs and microenterprises.

6. Member States may require obligated parties to work with social services, regional authorities, local authorities or municipalities to promote energy efficiency improvement measures among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. This includes identifying and addressing the specific needs of particular groups at risk of energy poverty or more susceptible to its effects. To protect people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing, Member States shall encourage obligated parties to carry out actions such as renovation of buildings, including social housing, replacement of appliances, financial support and incentives for energy efficiency improvement measures in accordance with national financing and support schemes, or energy audits. Member States shall ensure the eligibility of measures for individual units located in multi-apartment buildings.

7. When applying paragraphs 5 and 6, Member States shall require obligated parties to report on an annual basis on the energy savings achieved by the obligated parties from actions promoted among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing, and shall require aggregated statistical information on their final customers, identifying changes in energy savings when compared to previously submitted information, and regarding technical and financial support provided.

8. Member States shall express the amount of energy savings required of each obligated party in terms of either primary energy consumption or final energy consumption. The method chosen to express the amount of energy savings required shall also be used to calculate the savings claimed by obligated parties. When converting the amount of energy savings, the net calorific values set out in Annex VI of Commission Implementing Regulation (EU) 2018/2066 (7) and the primary energy factor pursuant to Article 31 shall apply unless the use of other conversion factors can be justified.

9. Member States shall establish measurement, control and verification systems for carrying out documented verification on at least a statistically significant proportion and representative sample of the energy efficiency improvement measures put in place by the obligated parties. The measurement, control and verification shall be carried out independently of the obligated parties. Where an entity is an obligated party under a national energy efficiency obligation scheme under Article 9 and under the EU ETS for buildings and road transport in accordance with Directive 2003/87/EC, the monitoring and verification system shall ensure that the carbon price passed through when releasing fuel for consumption in accordance with Directive 2003/87/EC shall be taken into account in the calculation and reporting of energy savings of the entity’s energy saving measures.

10. Member States shall inform the Commission, as part of the integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999, on the measurement, control and verification systems put in place, including the methods used, the issues identified and how those issues were addressed.

11. Within the energy efficiency obligation scheme, Member States may authorise obligated parties to carry out the following:(a) count towards their obligation certified energy savings achieved by energy service providers or other third parties, including when obligated parties promote measures through other State-approved bodies or through public authorities that may involve formal partnerships and may be in combination with other sources of finance;(b) count savings obtained in a given year as if they had instead been obtained in any of the four previous or three following years as long as this is not beyond the end of the obligation periods set out in Article 8(1).

Where Member States so authorise, they shall ensure that the certification of energy savings referred to in point (a) of the first subparagraph follows an approval process that is put in place in the Member States, that is clear, transparent, and open to all market participants, and that aims to minimise the costs of certification.

Member States shall assess and, if appropriate, take measures to minimise the impact of the direct and indirect costs of energy efficiency obligation schemes on the competitiveness of energy-intensive industries exposed to international competition.

12. Member States shall, on an annual basis, publish the energy savings achieved by each obligated party, or each sub-category of obligated party, and in total under the scheme.

1. Where Member States decide to fulfil their obligations to achieve the savings required under Article 8(1) by way of alternative policy measures, they shall ensure, without prejudice to Article 8(8) and (9), that the energy savings required under Article 8(1) are achieved among final customers.

2. For all measures other than those relating to taxation, Member States shall put in place measurement, control and verification systems under which documented verification is carried out on at least a statistically significant proportion and representative sample of the energy efficiency improvement measures put in place by the participating or entrusted parties. The measurement, control and verification shall be carried out independently of the participating or entrusted parties.

3. Member States shall inform the Commission, as part of the integrated national energy and climate progress reports submitted pursuant to Article 17 of Regulation (EU) 2018/1999, on the measurement, control and verification systems put in place, including methods used, issues identified and how they were addressed.

4. When reporting a taxation measure, Member States shall demonstrate how the effectiveness of the price signal, such as tax rate and visibility over time, has been ensured in the design of the taxation measure. Where there is a decrease in the tax rate, Member States shall justify how the taxation measures still result in new energy savings.

1. Member States shall ensure that enterprises with an average annual consumption higher than 85 TJ of energy over the previous three years, taking all energy carriers together, implement an energy management system. The energy management system shall be certified by an independent body, in accordance with the relevant European or international standards.

Member States shall ensure that the enterprises referred to in the first subparagraph have an energy management system in place at the latest by 11 October 2027.

2. Member States shall ensure that enterprises with an average annual consumption higher than 10 TJ of energy over the previous three years, taking all energy carriers together, which do not implement an energy management system are subject to an energy audit.

Such energy audits shall be either:

(a) carried out in an independent and cost-effective manner by qualified or accredited experts, in accordance with Article 28; or

(b) implemented and supervised by independent authorities under national legislation.

Member States shall ensure that the enterprises referred to in the first subparagraph carry out a first energy audit by 11 October 2026 and that subsequent energy audits are carried out at least every four years. Where such enterprises already carry out energy audits in accordance with the first subparagraph, they shall continue to do so at least every four years in accordance with this Directive.

The enterprises concerned shall draw up a concrete and feasible Action Plan on the basis of the recommendations arising from those energy audits. The Action Plan shall identify measures to implement each audit recommendation, where it is technically or economically feasible. The Action Plan shall be submitted to the management of the enterprise.

Member States shall ensure that the Action Plans and the recommendation implementation rate are published in the enterprise’s annual report, and that they are made publicly available, subject to Union and national law protecting trade and business secrets and confidentiality.

3. Where, in any given year, an enterprise as referred to in paragraph 1 has an annual consumption of more than 85 TJ and where an enterprise as referred to in paragraph 2 has an annual consumption of more than 10 TJ, Member States shall ensure that that information is made available to the national authorities responsible for implementation of this Article. For that purpose, Member States may promote the use of a new or an existing platform to facilitate the collection of the required data at national level.

4. Member States may encourage the enterprises referred to in paragraphs 1 and 2 to provide information in their annual report about their annual energy consumption in kWh, their annual volume of water consumption in cubic metres and a comparison of their energy and water consumption with previous years.

5. Member States shall promote the availability to all final customers of high quality energy audits which are cost-effective and are:(a) carried out in an independent manner by qualified or accredited experts in accordance with qualification criteria; or(b) implemented and supervised by independent authorities under national legislation.

The energy audits referred to in the first subparagraph may be carried out by in-house experts or energy auditors, provided that the Member State concerned has put in place a scheme to ensure their quality, including, if appropriate, an annual random selection of at least a statistically significant percentage of all the energy audits carried out by such in-house experts or energy auditors.

For the purpose of ensuring the high quality of the energy audits and energy management systems, Member States shall establish transparent and non-discriminatory minimum criteria for energy audits in accordance with Annex VI and taking into consideration relevant European or international standards. Member States shall designate a competent authority or body to ensure that the timelines for conducting energy audits set out in paragraph 2 of this Article are complied with and the minimum criteria set out in Annex VI are correctly applied.

Energy audits shall not include clauses preventing the findings of the audit from being transferred to any qualified or accredited energy service provider, provided that the customer does not object.

6. Member States shall develop programmes with the aim of encouraging and providing technical support to SMEs that are not subject to paragraph 1 or 2 to undergo energy audits and to subsequently implement the recommendations arising from those audits.

On the basis of transparent and non-discriminatory criteria and without prejudice to Union State aid law, Member States may set up mechanisms, such as energy audit centres for SMEs and microenterprises, provided that such mechanisms do not compete with private auditors, to provide energy audits. They may also provide other support schemes for SMEs, including where such SMEs have concluded voluntary agreements, to cover the costs of energy audits and of the implementation of highly cost-effective recommendations arising from the energy audits, if the measures proposed in those recommendations are implemented.

7. Member States shall ensure that the programmes referred to in paragraph 6 include support to SMEs in quantifying the multiple benefits of energy efficiency measures within their operation, in the development of energy efficiency roadmaps and in the development of energy efficiency networks for SMEs, facilitated by independent experts.

Member States shall bring to the attention of SMEs, including through their respective representative intermediary organisations, concrete examples of how energy management systems could help their businesses. The Commission shall assist Member States by supporting the exchange of best practices in this domain.

8. Member States shall develop programmes to encourage enterprises that are not SMEs and that are not subject to paragraph 1 or 2 to undergo energy audits and to subsequently implement the recommendations arising from those audits.

9. Energy audits shall be considered to comply with paragraph 2 where they are:(a) carried out in an independent manner, on the basis of the minimum criteria set out in Annex VI;(b) implemented under voluntary agreements concluded between organisations of stakeholders and a body appointed and supervised by the Member State concerned, by another body to which the competent authorities have delegated the responsibility concerned or by the Commission.

Access of market participants offering energy services shall be based on transparent and non-discriminatory criteria.

10. Enterprises that implement an energy performance contract shall be exempt from the requirements laid down in paragraphs 1 and 2 of this Article, provided that the energy performance contract covers the necessary elements of the energy management system and that the contract complies with the requirements set out in Annex XV.

11. Enterprises that implement an environmental management system, certified by an independent body in accordance with the relevant European or international standards, shall be exempt from the requirements laid down in paragraphs 1 and 2 of this Article, provided that the environmental management system concerned includes an energy audit on the basis of the minimum criteria set out in Annex VI.

12. Energy audits may stand alone or be part of a broader environmental audit. Member States may require an assessment of the technical and economic feasibility of connection to an existing or planned district heating or cooling network to be part of the energy audit.

Without prejudice to Union State aid law, Member States may implement incentives and support schemes for the implementation of recommendations arising from energy audits and similar measures.

1. By 15 May 2024 and every year thereafter, Member States shall require owners and operators of data centres in their territory with a power demand of the installed information technology (IT) of at least 500kW, to make the information set out in Annex VII publicly available, except for information subject to Union and national law protecting trade and business secrets and confidentiality.

2. Paragraph 1 shall not apply to data centres used for, or providing their services exclusively with the final aim of, defence and civil protection.

3. The Commission shall establish a European database on data centres that includes information communicated by the obligated data centres in accordance with paragraph 1. The European database shall be publicly available on an aggregated level.

4. Member States shall encourage owners and operators of data centres in their territory with a power demand of the installed IT equal to or greater than 1 MW to take into account the best practices referred to in the most recent version of the European Code of Conduct on Data Centre Energy Efficiency.

5. By 15 May 2025, the Commission shall assess the available data on the energy efficiency of data centres submitted to it pursuant to paragraphs 1 and 3 and shall submit a report to the European Parliament and to the Council, accompanied, where appropriate, by legislative proposals containing further measures to improve energy efficiency, including establishing minimum performance standards and an assessment on the feasibility of transition towards a net-zero emission data centres sector, in close consultation with the relevant stakeholders. Such proposals may establish a timeframe within which existing data centres are to be required to meet minimum performance.

1. Member States shall ensure that, in so far as technically possible, financially reasonable, and proportionate to the potential energy savings, natural gas final customers are provided with competitively priced individual meters that accurately reflect the final customer’s actual energy consumption and that provide information on actual time of use.

Such a competitively priced individual meter shall always be provided when:

(a) an existing meter is replaced, unless this is technically impossible or not cost-effective in relation to the estimated potential savings in the long term;

(b) a new connection is made in a new building or a building undergoes major renovations within the meaning of Directive 2010/31/EU.

2. Where, and to the extent that, Member States implement smart metering systems and roll out smart meters for natural gas in accordance with Directive 2009/73/EC:(a) they shall ensure that the metering systems provide to final customers information on actual time of use and that the objectives of energy efficiency and benefits for final customers are fully taken into account when establishing the minimum functionalities of the meters and the obligations imposed on market participants;(b) they shall ensure the security of the smart meters and data communication, and the privacy of final customers, in compliance with relevant Union data protection and privacy law;(c) they shall require that appropriate advice and information be given to customers at the time of installation of smart meters, in particular about their full potential with regard to meter reading management and the monitoring of energy consumption.

1. Member States shall ensure that, for district heating, district cooling and domestic hot water, final customers are provided with competitively priced meters that accurately reflect their actual energy consumption.

2. Where heating, cooling or domestic hot water is supplied to a building from a central source that services multiple buildings or from a district heating or district cooling system, a meter shall be installed at the heat exchanger or point of delivery.

1. In multi-apartment and multi-purpose buildings with a central heating or central cooling source or supplied from a district heating or district cooling system, individual meters shall be installed to measure the consumption of heating, cooling or domestic hot water for each building unit, where technically feasible and cost effective in terms of being proportionate in relation to the potential energy savings.

Where the use of individual meters is not technically feasible or where it is not cost-efficient to measure heat consumption in each building unit, individual heat cost allocators shall be used to measure heat consumption at each radiator unless it is shown by the Member State in question that the installation of such heat cost allocators would not be cost-efficient. In those cases, alternative cost-efficient methods of heat consumption measurement may be considered. The general criteria, methodologies and procedures to determine technical non-feasibility and non-cost effectiveness shall be clearly set out and published by each Member State.

2. In new multi-apartment buildings and in residential parts of new multi-purpose buildings that are equipped with a central heating source for domestic hot water or are supplied from district heating systems, individual meters shall, notwithstanding paragraph 1, first subparagraph, be provided for domestic hot water.

3. Where multi-apartment or multi-purpose buildings are supplied from district heating or district cooling, or where own common heating or cooling systems for such buildings are prevalent, Member States shall ensure that they have in place transparent, publicly available national rules on the allocation of the cost of heating, cooling and domestic hot water consumption in such buildings to ensure transparency and accuracy of accounting for individual consumption. Where appropriate, such rules shall include guidelines on the manner in which to allocate cost for energy that is used for:(a) domestic hot water;(b) heat radiated from the building installation and for the purpose of heating the common areas, where staircases and corridors are equipped with radiators;(c) heating or cooling apartments.

1. For the purposes of Articles 14 and 15, newly installed meters and heat cost allocators shall be remotely readable devices. The conditions of technical feasibility and cost effectiveness set out in Article 15(1) shall apply.

2. Meters and heat cost allocators which are not remotely readable but which have already been installed shall be rendered remotely readable or replaced with remotely readable devices by 1 January 2027, save where the Member State in question shows that this is not cost-efficient.

1. Where meters or heat cost allocators are installed, Member States shall ensure that billing and consumption information is reliable, accurate and based on actual consumption or heat cost allocator readings, in accordance with Annex IX, points 1 and 2 for all final users.

That obligation may, where a Member State so provides, save in the case of sub-metered consumption based on heat cost allocators under Article 15, be fulfilled by a system of regular self-reading by the final customer or final user whereby they communicate readings from their meter. Only where the final customer or final user has not provided a meter reading for a given billing interval shall billing be based on estimated consumption or a flat rate.

2. Member States shall:(a) require that, if information on the energy billing and historical consumption or heat cost allocator readings of final users is available, it be made available upon request from the final user, to an energy service provider designated by the final user;(b) ensure that final customers are offered the option of electronic billing information and bills;(c) ensure that clear and comprehensible information is provided with the bill to all final users in accordance with Annex IX, point 3;(d) promote cybersecurity and ensure the privacy and data protection of final users in accordance with applicable Union law.

Member States may provide that, at the request of the final customer, the provision of billing information shall not be considered to constitute a request for payment. In such cases, Member States shall ensure that flexible arrangements for actual payment are offered.

3. Member States shall decide who is to be responsible for providing the information referred to in paragraphs 1 and 2 to final users without a direct or individual contract with an energy supplier.

1. Member States shall ensure that final users receive all their bills and billing information for energy consumption free of charge and that final users have access to their consumption data in an appropriate manner and free of charge.

2. Notwithstanding paragraph 1 of this Article, the distribution of costs of billing information for the individual consumption of heating, cooling and domestic hot water in multi-apartment and multi-purpose buildings pursuant to Article 15 shall be carried out on a non-profit basis. Costs resulting from the assignment of that task to a third party, such as a service provider or the local energy supplier, covering the measuring, allocation and accounting for actual individual consumption in such buildings, may be passed onto the final users to the extent that such costs are reasonable.

3. In order to ensure reasonable costs for sub-metering services as referred to in paragraph 2, Member States may stimulate competition in that service sector by taking appropriate measures such as recommending or otherwise promoting the use of tendering or the use of interoperable devices and systems facilitating switching between service providers.

1. Without prejudice to Union rules on consumer protection, in particular Directive 2011/83/EU of the European Parliament and of the Council (8) and Council Directive 93/13/EEC (9), Member States shall ensure that final customers and, where explicitly referred to, final users, are granted the rights provided for in paragraphs 2 to 9 of this Article.

2. Final customers shall have the right to a contract with their supplier that specifies:(a) the identity, address and contact details of the supplier;(b) the services provided and the service quality levels included;(c) the types of maintenance service included in the contract without additional charges;(d) the means by which up-to-date information on all applicable tariffs, maintenance charges and bundled products or services may be obtained;(e) the duration of the contract, the conditions for renewal and termination of the contract and services, including products or services that are bundled with those services, and whether terminating the contract without charge is permitted;(f) any compensation and the refund arrangements which apply if contracted service quality levels are not met, including inaccurate or delayed billing;(g) the method of initiating an out-of-court dispute-settlement procedure in accordance with Article 22;(h) information relating to consumer rights, including information on complaint handling and all of the information referred to in this paragraph, which is clearly communicated in the bill or on the enterprise’s website and includes the contact details or link to the website of the single points of contact referred to in Article 22(3), point (e);(i) the contact details enabling the customer to identify relevant one-stop shops as referred to in Article 22(3), point (a).

Suppliers’ conditions shall be fair and shall be provided to final customers in advance. The information referred to in this paragraph shall be provided before the conclusion or confirmation of the contract. Where contracts are concluded through intermediaries, that information shall also be provided before the conclusion of the contract.

Final customers and final users shall be provided with a summary of the key contractual conditions, including prices and tariffs, in a comprehensible manner and in concise and simple language.

Final customers shall be provided with a copy of the contract and clear information, in a transparent manner, on applicable prices and tariffs and on standard terms and conditions in respect of access to and use of heating, cooling and domestic hot water services.

Member States shall decide who is to be responsible for providing the information referred to in this paragraph to final users without a direct or individual contract with a supplier, upon request, in an appropriate manner and free of charge.

3. Final customers shall be given adequate notice of any intention to modify contractual conditions. Suppliers shall notify their final customers, in a transparent and comprehensible manner, directly of any adjustment in the supply price and of the reasons and preconditions for the adjustment and its scope, at an appropriate time no later than two weeks, or no later than one month in the case of household customers, before the adjustment comes into effect. Final customers shall inform final users of the new conditions without delay.

4. Suppliers shall offer final customers a wide choice of payment methods. Such payment methods shall not unduly discriminate between customers. Any difference in charges related to payment methods or prepayment systems shall be objective, non-discriminatory and proportionate and shall not exceed the direct costs borne by the payee for the use of a specific payment method or a prepayment system, in accordance with Article 62 of Directive (EU) 2015/2366 of the European Parliament and of the Council (10).

5. Pursuant to paragraph 4, household customers who have access to prepayment systems shall not be placed at a disadvantage by the prepayment systems.

6. Final customers and, where applicable, final users shall be offered fair and transparent general terms and conditions, which shall be provided in plain and unambiguous language and shall not include non-contractual barriers to the exercise of customers’ rights, such as excessive contractual documentation. Final users shall be provided access to those general terms and conditions upon request. Final customers and final users shall be protected against unfair or misleading selling methods. Final customers with disabilities shall be provided all relevant information on their contract with their supplier in accessible formats.

7. Final customers and final users shall have the right to a good standard of service and complaint-handling by their suppliers. Suppliers shall handle complaints in a simple, fair and prompt manner.

8. Competent authorities shall ensure that the consumer protection measures laid down in this Directive are enforced. The competent authorities shall act independently from any market interests.

9. In the case of planned disconnection, the final customers concerned shall be provided with adequate information on alternative measures sufficiently in advance, no later than one month before the planned disconnection and at no extra cost.

1. Member States, in cooperation with regional and local authorities, where applicable, shall ensure that information on available energy efficiency improvement measures, individual actions and financial and legal frameworks is transparent, accessible and widely disseminated to all relevant market actors, such as final customers, final users, consumer organisations, civil society representatives, renewable energy communities, citizen energy communities, local and regional authorities, energy agencies, social service providers, builders, architects, engineers, environmental and energy auditors, and installers of building elements as defined in Article 2, point (9), of Directive 2010/31/EU.

2. Member States shall take appropriate measures to promote and facilitate an efficient use of energy by final customers and final users. Those measures shall be part of a national strategy, such as the integrated national energy and climate plans provided for in Regulation (EU) 2018/1999, or the long-term renovation strategy established pursuant to Article 2a of Directive 2010/31/EU.

For the purposes of this Article, those measures shall include a range of instruments and policies to promote behavioural change such as:

(a) fiscal incentives;

(b) access to finance, vouchers, grants or subsidies;

(c) publicly supported energy consumption assessments and targeted advisory services and support for household consumers, in particular people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing;

(d) targeted advisory services for SMEs and microenterprises;

(e) information provision in accessible form to people with disabilities;

(f) exemplary projects;

(g) workplace activities;

(h) training activities;

(i) digital tools;

(j) engagement strategies.

3. For the purposes of this Article, the measures referred to in paragraph 2 shall include the creation of a supportive framework for market actors such as those referred to in paragraph 1, in particular for:(a) the creation of one-stop shops or similar mechanisms for the provision of technical, administrative and financial advice and assistance on energy efficiency, such as energy checks for households, energy renovations of buildings, information on the replacement of old and inefficient heating systems with modern and more efficient appliances and the take-up of renewable energy and energy storage for buildings to final customers and final users, especially household and small non-household ones, including SMEs and microenterprises;(b) cooperation with private actors that provide services such as energy audits and energy consumption assessments, financing solutions and execution of energy renovations;(c) the communication of cost-effective and easy-to-achieve changes in energy use;(d) the dissemination of information on energy efficiency measures and financing instruments;(e) the provision of single points of contact, to provide final customers and final users with all necessary information concerning their rights, the applicable law and the dispute-settlement mechanisms available to them in the event of a dispute. Such single points of contact may be part of general consumer information points.

4. For the purpose of this Article, Member States shall in cooperation with competent authorities, and, where appropriate, private stakeholders establish dedicated one-stop shops or similar mechanisms for the provision of technical, administrative and financial advice for energy efficiency. Those facilities shall:(a) advise with streamlined information on technical and financial possibilities and solutions to households, SMEs, microenterprises, public bodies;(b) provide holistic support to all households, with a particular focus on households affected by energy poverty and on worst performing buildings, as well as to accredited companies and installers providing retrofit services, adapted to different housing typologies and geographical scope, and provide support covering the different stages of the retrofit project, including to facilitate the implementation of a minimum energy performance standard where such standard is provided for in a Union legislative act;(c) advise on energy consumption behaviour.

5. Dedicated one-stop shop facilities as referred to in paragraph 4 shall, where appropriate:(a) provide information about qualified energy efficiency professionals;(b) collect typology-aggregated data from energy efficiency projects, share experiences and make them publicly available;(c) connect potential projects with market players, in particular smaller-scale, local projects.

For the purposes of the first subparagraph, point (b), the Commission shall assist Member States in order to facilitate the sharing of, and enhance cross-border cooperation with regard to, best practices.

6. The one-stop shops referred to in paragraph 4 shall offer dedicated services for people affected by energy poverty, vulnerable customers and people in low-income households.

The Commission shall provide Member States with guidelines to develop those one-stop shops with the aim of creating a harmonised approach throughout the Union. The guidelines shall encourage cooperation among public bodies, energy agencies and community-led initiatives.

7. Member States shall establish appropriate conditions for market actors to provide adequate and targeted information and advice on energy efficiency to final customers, including people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing, SMEs and microenterprises.

8. Member States shall ensure that final customers, final users, people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing have access to simple, fair, transparent, independent, effective and efficient out-of-court mechanisms for the settlement of disputes concerning rights and obligations provided for in this Directive, through an independent mechanism such as an energy ombudsperson or a consumer body, or through a regulatory authority. Where the final customer is a consumer as defined in Article 4(1), point (a), of Directive 2013/11/EU of the European Parliament and of the Council (11), such out-of-court dispute settlement mechanisms shall comply with the requirements set out therein. Out-of-court dispute settlement mechanisms already existing in Member States may be used for that purpose, provided they are equally effective.

Where necessary, Member States shall ensure that alternative dispute resolution entities cooperate to provide simple, fair, transparent, independent, effective and efficient out-of-court dispute settlement mechanisms for any dispute that arises from products or services that are tied to, or bundled with, any product or service falling under the scope of this Directive.

The participation of enterprises in out-of-court dispute settlement mechanisms for household customers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.

9. Without prejudice to the basic principles of their laws on property and tenancy, Member States shall take the necessary measures to remove regulatory and non-regulatory barriers to energy efficiency as regards split incentives between owners and tenants, or among owners of a building or building unit, with a view to ensuring that those parties are not deterred from making efficiency-improving investments that they would otherwise have made by the fact that they will not individually obtain the full benefits or by the absence of rules for dividing the costs and benefits between them.

Measures to remove such barriers may include providing incentives, repealing or amending legal or regulatory provisions, adopting guidelines and interpretative communications, simplifying administrative procedures, including national rules and measures regulating decision-making processes in multi-owner properties, and the possibility to turn to third-party financing solutions. The measures may be combined with the provision of education, training and specific information and technical assistance on energy efficiency to market actors such as those referred to in paragraph 1.

Member States shall take appropriate measures to support a multilateral dialogue among relevant partners, such as local and regional authorities, the social partners, owners’ and tenants’ organisations, consumer organisations, energy distributors or retail energy sales companies, ESCOs, renewable energy communities, citizen energy communities, public authorities and agencies, with the aim of setting out proposals on jointly accepted measures, incentives and guidelines pertinent to split incentives between owners and tenants or among owners of a building or building unit.

Each Member State shall report such barriers and the measures taken in its long-term renovation strategy established pursuant to Article 2a of Directive 2010/31/EU and to Regulation (EU) 2018/1999.

10. The Commission shall encourage the exchange and wide dissemination of information on good energy efficiency practices and methodologies and provide technical assistance to mitigate split incentives in Member States.

1. By 11 October 2024, the Commission shall assess whether energy efficiency is covered by existing partnerships. If the assessment shows that energy efficiency is not sufficiently covered by existing partnerships, the Commission shall establish sector-specific energy efficiency partnerships at Union level, with sub-partnerships per missing sector, by bringing together key stakeholders, including the social partners, in sectors such as ICT, transport, finance and building, in an inclusive and representative manner.

If a partnership is established, the Commission shall appoint, where appropriate, a chair for each Union sector-specific energy efficiency partnership.

2. The partnerships referred to in paragraph 1 shall aim to facilitate climate and energy transition dialogues between the relevant actors and encourage sectors to draw up energy efficiency roadmaps in order to map available measures and technological options to achieve energy savings, prepare for renewable energy and decarbonise the sectors.

Such roadmaps would make a valuable contribution in assisting sectors in planning the necessary investments needed to reach the objectives of this Directive and of Regulation (EU) 2021/1119 as well as facilitate cross-border cooperation between actors to strengthen the internal market.

1. Without prejudice to their national economic and social policies, and to their obligations under Union law, Member States shall take appropriate measures to empower and protect people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing.

In defining the concept of vulnerable customers pursuant to Article 3(3) of Directive 2009/73/EC and Article 28(1) of Directive (EU) 2019/944, Member States shall take into account final users.

2. Without prejudice to their national economic and social policies, and to their obligations under Union law, Member States shall implement energy efficiency improvement measures and related consumer protection or information measures, in particular those set out in Article 8(3) and Article 22 of this Directive, as a priority among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing to alleviate energy poverty. Monitoring and reporting of those measures shall be undertaken in the framework of the existing reporting requirements set out in Article 24 of Regulation (EU) 2018/1999.

3. To support people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing, Member States shall, where applicable:(a) implement energy efficiency improvement measures to mitigate distributional effects from other policies and measures, such as taxation measures implemented in accordance with Article 10 of this Directive, or the application of emissions trading in the buildings and transport sector in accordance with Directive 2003/87/EC;(b) make the best possible use of public funding available at Union and national level, including, where applicable, the financial contribution that Member States receive from the Social Climate Fund pursuant to Articles 9 and 14 of Regulation (EU) 2023/955, and revenues from allowance auctions from emissions trading pursuant to the EU ETS in accordance with Directive 2003/87/EC, for investments into energy efficiency improvement measures as priority actions;(c) carry out early, forward-looking investments in energy efficiency improvement measures before distributional impacts from other policies and measures show their effect;(d) foster technical assistance and the roll-out of enabling funding and financial tools, such as on-bill schemes, local loan-loss reserve, guarantee funds, funds targeting deep renovations and renovations with minimum energy gains;(e) foster technical assistance for social actors to promote vulnerable customer’s active engagement in the energy market, and positive changes in their energy consumption behaviour;(f) ensure access to finance, grants or subsidies bound to minimum energy gains and thus facilitate access to affordable bank loans or dedicated credit lines.

4. Member States shall establish a network of experts from various sectors such as the health, building and social sectors, or entrust an existing network, to develop strategies to support local and national decision makers in implementing energy efficiency improvement measures, technical assistance and financial tools aiming to alleviate energy poverty. Member States shall strive to ensure that the composition of the network of experts ensures gender balance and reflects the perspectives of all people.

Member States may entrust the network of experts to offer advice on:

(a) national definitions, indicators and criteria of energy poverty, energy poor and vulnerable customers, including final users;

(b) the development or improvement of relevant indicators and data sets, pertinent to the issue of energy poverty, that should be used and reported upon;

(c) methods and measures to ensure affordability of living costs, the promotion of housing cost neutrality, or ways to ensure that public funding invested in energy efficiency improvement measures benefit both owners and tenants of buildings and building units, in particular regarding people affected by energy poverty, vulnerable customers, people in low-income households, and, where applicable, people living in social housing;

(d) measures to prevent or remedy situations in which particular groups are more affected or more at risk of being affected by energy poverty or are more susceptible to the adverse impacts of energy poverty such as on the basis of their income, gender, health condition or membership of a minority group, and demographics.

1. As part of its integrated national energy and climate plan and its updates pursuant to Regulation (EU) 2018/1999, each Member State shall submit to the Commission a comprehensive heating and cooling assessment. That comprehensive assessment shall contain the information set out in Annex X to this Directive and shall be accompanied by the assessment carried out pursuant to Article 15(7) of Directive (EU) 2018/2001.

2. Member States shall ensure that stakeholders affected by the comprehensive assessment referred to in paragraph 1 are given the opportunity to participate in the preparation of heating and cooling plans, the comprehensive assessment and the policies and measures, whilst ensuring that the competent authorities do not disclose or publish trade secrets or business secrets that have been identified as such.

3. For the purpose of the comprehensive assessment referred to in paragraph 1, Member States shall carry out a cost-benefit analysis covering their territory on the basis of climate conditions, economic feasibility and technical suitability. The cost-benefit analysis shall be capable of facilitating the identification of the most resource- and cost-efficient solutions to meeting heating and cooling needs, taking into account the energy efficiency first principle. That cost-benefit analysis may be part of an environmental assessment under Directive 2001/42/EC of the European Parliament and of the Council (12).

Member States shall designate the competent authorities responsible for carrying out the cost-benefit analyses, provide the detailed methodologies and assumptions in accordance with Annex XI and establish and make public the procedures for the economic analysis.

4. Where the comprehensive assessment referred to in paragraph 1 of this Article and the analysis referred to in paragraph 3 of this Article identify a potential for the application of high-efficiency cogeneration and/or efficient district heating and cooling from waste heat, whose benefits exceed the costs, Member States shall take adequate measures for efficient district heating and cooling infrastructure to be developed, to encourage the development of installations for the utilisation of waste heat, including in the industrial sector, and/or to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraph 1 of this Article and with Article 26(7) and (9).

Where the comprehensive assessment referred to in paragraph 1 of this Article and the analysis referred to in paragraph 3 of this Article do not identify a potential whose benefits exceed the costs, including the administrative costs of carrying out the cost-benefit analysis referred to in Article 26(7), the Member State concerned, together with the local and regional authorities, where applicable, may exempt installations from the requirements laid down in paragraphs 1 and 3 of this Article.

5. Member States shall adopt policies and measures which ensure that the potential identified in the comprehensive assessments carried out pursuant to paragraph 1 of this Article is realised. Those policies and measures shall include at least the elements set out in Annex X. Each Member State shall notify those policies and measures as part of the update of its integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, its subsequent integrated national energy and climate plan notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, and the relevant national energy and climate progress reports submitted pursuant to that Regulation.

6. Member States shall ensure that regional and local authorities prepare local heating and cooling plans at least in municipalities having a total population higher than 45 000 . Those plans should at least:(a) be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency, including via low-temperature district heating readiness, high efficiency cogeneration, waste heat recovery, and renewable energy in heating and cooling in that particular area;(b) be compliant with the energy efficiency first principle;(c) include a strategy for the use of the identified potential pursuant to point (a);(d) be prepared with the involvement of all relevant regional or local stakeholders and ensure the participation of general public, including operators of local energy infrastructure;(e) take into account the relevant existing energy infrastructure;(f) consider the common needs of local communities and multiple local or regional administrative units or regions;(g) assess the role of energy communities and other consumer-led initiatives that can actively contribute to the implementation of local heating and cooling projects;(h) include an analysis of heating and cooling appliances and systems in local building stocks, taking into account the area-specific potentials for energy efficiency measures and addressing the worst performing buildings and the needs of vulnerable households;(i) assess how to finance the implementation of policies and measures and identify financial mechanisms allowing consumers to shift to renewable heating and cooling;(j) include a trajectory to achieve the goals of the plans in line with climate neutrality and the monitoring of the progress of the implementation of policies and measures identified;(k) aim to replace old and inefficient heating and cooling appliances in public bodies with highly efficient alternatives with the aim of phasing out fossil fuels;(l) assess potential synergies with the plans of neighbouring regional or local authorities to encourage joint investments and cost efficiency.

Member States shall ensure that all relevant parties, including public and relevant private stakeholders, are given the opportunity to participate in the preparation of heating and cooling plans, the comprehensive assessment referred to in paragraph 1 and the policies and measures referred to in paragraph 5.

For that purpose, Member States shall develop recommendations supporting the regional and local authorities to implement policies and measures in energy efficient and renewable energy based heating and cooling at regional and local level utilising the potential identified. Member States shall support regional and local authorities to the utmost extent possible by any means, including financial support and technical support schemes. Member States shall ensure that heating and cooling plans are aligned with other local climate, energy and environment planning requirements in order to avoid administrative burden for local and regional authorities and to encourage the effective implementation of the plans.

Local heating and cooling plans may be carried out jointly by a group of several neighbouring local authorities provided that the geographical and administrative context, as well as the heating and cooling infrastructure, is appropriate.

Local heating and cooling plans shall be assessed by a competent authority and, if necessary, followed by appropriate implementation measures.

1. In order to ensure more efficient consumption of primary energy and to increase the share of renewable energy in heating and cooling supply going into the network, an efficient district heating and cooling system shall meet the following criteria:(a) until 31 December 2027, a system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat;(b) from 1 January 2028, a system using at least 50 % renewable energy, 50 % waste heat, 50 % renewable energy and waste heat, 80 % of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5 % and the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 50 %;(c) from 1 January 2035, a system using at least 50 % renewable energy, 50 % waste heat or 50 % renewable energy and waste heat, or a system where the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 80 % and in addition the total share of renewable energy or waste heat is at least 35 %;(d) from 1 January 2040, a system using at least 75 % renewable energy, 75 % waste heat or 75 % renewable energy and waste heat, or a system using at least 95 % renewable energy, waste heat and high-efficiency cogenerated heat and in addition the total share of renewable energy or waste heat is at least 35 %;(e) from 1 January 2045, a system using at least 75 % renewable energy, 75 % waste heat or 75 % renewable energy and waste heat;(f) from 1 January 2050, a system using only renewable energy, only waste heat, or only a combination of renewable energy and waste heat.

2. Member States may also choose, as an alternative to the criteria set out in paragraph 1 of this Article, sustainability performance criteria based on the amount of GHG emissions from the district heating and cooling system per unit of heat or cold delivered to the customers, taking into consideration measures implemented to fulfil the obligation pursuant to Article 24(4) of Directive (EU) 2018/2001. When choosing those criteria, an efficient district heating and cooling system shall have the following maximum amount of GHG emissions per unit of heat or cold delivered to the customers:(a) until 31 December 2025: 200 grams/kWh;(b) from 1 January 2026: 150 grams/kWh;(c) from 1 January 2035: 100 grams/kWh;(d) from 1 January 2045: 50 grams/kWh;(e) from 1 January 2050: 0 grams/kWh.

3. Member States may choose to apply the criteria of GHG emissions per unit of heat or cold for any given period referred to in paragraph 2, points (a) to (e), of this Article. If they choose to do so, they shall notify the Commission by 11 January 2024 for the period referred to in paragraph 2, point (a), of this Article and at least six months before the beginning of the relevant periods referred to in paragraph 2, points (b) to (e), of this Article. Such a notification shall include the measures implemented to fulfil the obligation pursuant to Article 24(4) of Directive (EU) 2018/2001 if they have not already been notified in the latest update of their national energy and climate plan.

4. In order for a district heating and cooling system to qualify as efficient, Member States shall ensure that where it is built or its supply units are substantially refurbished, the district heating or cooling system meet the criteria set out in paragraph 1 or 2 applicable at the time when it starts or continues its operation after the refurbishment. In addition, Member States shall ensure that when a district heating and cooling system is built or its supply units are substantially refurbished:(a) there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment; and(b) any new heat sources in that system do not use fossil fuels, except natural gas, if built or substantially refurbished until 2030.

5. Member States shall ensure that as from 1 January 2025, and every five years thereafter, operators of all existing district heating and cooling systems with a total heat and cold output exceeding 5 MW and which do not meet the criteria set out in paragraph 1, points (b) to (e), prepare a plan to ensure more efficient consumption of primary energy, to reduce distribution losses and to increase the share of renewable energy in heating and cooling supply. The plan shall include measures to meet the criteria set out in paragraph 1, points (b) to (e), and shall require approval by the competent authority.

6. Member States shall ensure that data centres with a total rated energy input exceeding 1 MW utilise the waste heat or other waste heat recovery applications unless they can show that it is not technically or economically feasible in accordance with the assessment referred to in paragraph 7.

7. In order to assess the economic feasibility of increasing energy efficiency of heat and cooling supply, Member States shall ensure that an installation level cost-benefit analysis in accordance with Annex XI is carried out where the following installations are newly planned or substantially refurbished:(a) a thermal electricity generation installation with an average annual total energy input exceeding 10 MW, in order to assess the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation;(b) an industrial installation with an average annual total energy input exceeding 8 MW in order to assess utilisation of the waste heat on-site and off-site;(c) a service facility with an annual average total energy input exceeding 7 MW, such as wastewater treatment facilities and LNG facilities, in order to assess utilisation of waste heat on-site and off-site;(d) a data centre with a total rated energy input exceeding 1 MW level in order to assess the cost and benefit analysis, including, but not limited to, technical feasibility, cost-efficiency and the impact on energy efficiency and local heat demand, including seasonal variation, of utilising the waste heat to satisfy economically justified demand, and of the connection of that installation to a district heating network or an efficient/RES-based district cooling system or other waste heat recovery applications.

The analysis referred to in the first subparagraph, point (d), shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs.

Member States shall aim to remove barriers for the utilisation of waste heat and provide support for the uptake of waste heat where the installations are newly planned or refurbished.

The fitting of equipment to capture carbon dioxide produced by a combustion installation with a view to it being geologically stored as provided for in Directive 2009/31/EC shall not be considered as refurbishment for the purpose of points (b) and (c) of this paragraph.

Member States shall require the cost-benefit analysis to be carried out in cooperation with the companies responsible for the operation of the facility.

8. Member States may exempt from paragraph 7:(a) peak load and back-up electricity generating installations which are planned to operate under 1 500 operating hours per year as a rolling average over a period of five years, based on a verification procedure established by the Member States ensuring that this exemption criterion is met;(b) installations that need to be located close to a geological storage site approved under Directive 2009/31/EC;(c) data centres whose waste heat is or will be used in a district heating network or directly for space heating, domestic hot water preparation or other uses in the building or group of buildings or facilities where it is located.

Member States may also lay down thresholds, expressed in terms of the amount of available useful waste heat, the demand for heat or the distances between industrial installations and district heating networks, for exempting individual installations from paragraph 7, points (c) and (d).

Member States shall notify exemptions adopted under this paragraph to the Commission.

9. Member States shall adopt authorisation criteria as referred to in Article 8 of Directive (EU) 2019/944, or equivalent permit criteria, in order to:(a) take into account the outcome of the comprehensive assessment referred to in Article 25(1);(b) ensure that the requirements laid down in paragraph 7 are fulfilled;(c) take into account the outcome of the cost-benefit analysis referred to in paragraph 7.

10. Member States may exempt individual installations from being required, by the authorisation or equivalent permit criteria referred to in paragraph 9, to implement options whose benefits exceed their costs, if there are imperative reasons of law, ownership or finance for doing so. In those cases the Member State concerned shall submit a reasoned decision to the Commission within three months of the date of taking that decision. The Commission may issue an opinion on the decision within three months of its receipt.

11. Paragraphs 7, 8, 9 and 10 of this Article shall apply to installations covered by Directive 2010/75/EU without prejudice to the requirements laid down in that Directive.

12. Member States shall collect information on cost-benefit analyses carried out in accordance with paragraph 7, points (a) to (d). That information should contain at least the data on available heat supply amounts and heat parameters, number of planned operating hours every year and geographical location of the sites. Those data shall be published with due respect for their potential sensitivity.

13. On the basis of the harmonised efficiency reference values referred to in Annex III, point (d), Member States shall ensure that the origin of electricity produced from high-efficiency cogeneration can be guaranteed according to objective, transparent and non-discriminatory criteria laid down by each Member State. They shall ensure that that guarantee of origin complies with the requirements laid down in, and contains at least the information specified in, Annex XII. Member States shall mutually recognise their guarantees of origin, exclusively as proof of the information referred to in this paragraph. Any refusal to recognise a guarantee of origin as such proof, in particular for reasons relating to the prevention of fraud, shall be based on objective, transparent and non-discriminatory criteria. Member States shall notify the Commission of such refusal and set out the reasons for it. In the event of a refusal to recognise a guarantee of origin, the Commission may adopt a decision to compel the refusing party to recognise it, in particular with regard to objective, transparent and non-discriminatory criteria on which such recognition is based.

14. Member States shall ensure that any available support for cogeneration is subject to the electricity produced originating from high-efficiency cogeneration and the waste heat being effectively used to achieve primary energy savings. Public support to cogeneration and district heating generation and networks shall be subject to State aid rules, where applicable.

1. National energy regulatory authorities shall apply the energy efficiency first principle, in accordance with Article 3 of this Directive, in carrying out the regulatory tasks provided for in Directives 2009/73/EC and (EU) 2019/944 regarding their decisions on the operation of the gas and electricity infrastructure, including their decisions on network tariffs. In addition to the energy efficiency first principle, national energy regulatory authorities may take into account cost efficiency, system efficiency and security of supply, and market integration, while safeguarding the Union’s climate targets and sustainability, as set out in Article 18 of Regulation (EU) 2019/943 and in Article 13 of Regulation (EC) No 715/2009.

2. Member States shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle, in accordance with Article 3 of this Directive, in their network planning, network development and investment decisions. National regulatory authorities or other designated national authorities shall verify that methodologies used by transmission system operators and distribution system operators assess alternatives in the cost-benefit analysis and take into account the wider benefits of energy efficiency solutions, demand-side flexibility and investment into assets that contribute to climate change mitigation. National regulatory authorities and other designated authorities shall also verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving, verifying or monitoring their projects and network development plans pursuant to Article 22 of Directive 2009/73/EC and to Article 32(3) and Article 51 of Directive (EU) 2019/944. National regulatory authorities may provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis in close cooperation with the transmission system operators and distribution system operators, which can share key technical expertise.

3. Member States shall ensure that transmission and distribution system operators monitor and quantify the overall volume of network losses and, where it is technically and financially feasible, optimise networks and improve network efficiency. Transmission and distribution system operators shall report those measures and expected energy savings through the reduction of network losses to the national energy regulatory authority. Member States shall ensure that transmission and distribution system operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation, especially in terms of smart grid deployment. Member States shall encourage transmission and distribution system operators to develop innovative solutions to improve the energy efficiency of existing and future systems through incentive-based regulations in accordance with the tariff principles set out in Article 18 of Regulation (EU) 2019/943 and Article 13 of Regulation (EC) No 715/2009.

4. National energy regulatory authorities shall include a specific section on the progress achieved in energy efficiency improvements regarding the operation of the gas and electricity infrastructure in the annual report drawn up pursuant to Article 41 of Directive 2009/73/EC and pursuant to Article 59(1), point (i), of Directive (EU) 2019/944. In those reports, national energy regulatory authorities shall provide an assessment of the overall efficiency in the operation of the gas and electricity infrastructure, the measures carried out by transmission and distribution system operators and, where applicable, provide recommendations for energy efficiency improvements, including cost-efficient alternatives that reduce peak loads and overall electricity use.

5. For electricity, Member States shall ensure that network regulation and network tariffs fulfil the criteria set out in Annex XIII, taking into account network codes and guidelines developed pursuant to Regulation (EU) 2019/943 and the obligation set out in Article 59(7), point (a), of Directive (EU) 2019/944 to allow for necessary investments in the networks to be carried out in a manner ensuring the viability of the networks.

6. Member States may permit components of schemes and tariff structures with a social aim for net-bound energy transmission and distribution, provided that any disruptive effects on the transmission and distribution system are kept to the minimum necessary and are not disproportionate to the social aim.

7. National regulatory authorities shall ensure the removal of those incentives in transmission and distribution tariffs that are detrimental to the energy efficiency of the generation, transmission, distribution and supply of electricity and gas. Member States shall ensure efficiency in infrastructure design and the operation of the existing infrastructure, in accordance with Regulation (EU) 2019/943, and that tariffs allow for demand response.

8. Transmission system operators and distribution system operators shall comply with Annex XIV.

9. Where appropriate, national regulatory authorities may require transmission system operators and distribution system operators to encourage high-efficiency cogeneration to be located close to areas of heat demand by reducing the connection and use-of-system charges.

10. Member States may allow producers of electricity from high-efficiency cogeneration wishing to be connected to the grid to issue a call for tender for the connection work.

11. When reporting under Directive 2010/75/EU, and without prejudice to Article 9(2) of that Directive, Member States shall consider including information on energy efficiency levels of installations undertaking the combustion of fuels with total rated thermal input of 50 MW or more in the light of the relevant best available techniques developed in accordance with Directive 2010/75/EU.

1. Member States shall set up a network ensuring the appropriate level of competences for energy efficiency-related professions that corresponds to market needs. Member States, in close cooperation with the social partners, shall ensure that certification or equivalent qualification schemes, including, where necessary, suitable training programmes, are available for energy efficiency-related professions including providers of energy services, providers of energy audits, energy managers, independent experts, installers of building elements as referred to in Directive 2010/31/EU, and providers of integrated renovation works, and are reliable and contribute to national energy efficiency objectives and the overall Union decarbonisation objectives.

Member States shall ensure that providers of certification or equivalent qualification schemes, including, where necessary, suitable training programmes are accredited in accordance with Regulation (EC) No 765/2008 of the European Parliament and of the Council (13) or approved in line with converging national legislation or standards.

2. Member States shall promote participation in certification, training and education programmes to ensure the appropriate level of competences for energy efficiency professions that correspond to market needs.

3. By 11 October 2024, the Commission shall:(a) in cooperation with a group of experts nominated by Member States, set up a framework for or design a campaign to attract more people to energy efficiency professions while ensuring respect for the principle of non-discrimination;(b) assess the viability of setting up a single point of access platform, making use of existing initiatives where possible, to provide support to the Member States in setting up their measures to ensure the appropriate level of qualified professionals needed to keep up with the pace of progress in energy efficiency to reach the Union’s climate and energy targets. The platform would gather experts from Member States, the social partners, education institutions, academia and other relevant stakeholders to foster and promote best practices of qualification schemes and training programmes to ensure more energy efficiency professionals and to re-skill or up-skill existing professionals in order to meet market needs.

4. Member States shall ensure that national certification, or equivalent qualification schemes, including, where necessary, training programmes, take into account existing European or international standards on energy efficiency.

5. Member States shall make publicly available the certification, equivalent qualification schemes or suitable training programmes referred to in paragraph 1, and shall cooperate among themselves and with the Commission on comparisons between, and recognition of, the schemes.

Member States shall take appropriate measures to make consumers aware of the availability of the schemes in accordance with Article 29(1).

6. By 31 December 2024 and at least every four years thereafter, Member States shall assess whether the schemes ensure the necessary level of competences and equal access to all individuals in accordance with the principle of non-discrimination for energy services providers, energy auditors, energy managers, independent experts, installers of building elements as referred to in Directive 2010/31/EU, and providers of integrated renovation works. Member States shall also assess the gap between available and in demand professionals. Member States shall make the assessment and recommendations thereof publicly available and submit them through the e-platform established in accordance with Article 28 of Regulation (EU) 2018/1999.

1. Member States shall promote the energy services market and access to it for SMEs by disseminating clear and easily accessible information on:(a) available energy service contracts and clauses that should be included in such contracts to guarantee energy savings and final customers’ rights;(b) financial instruments, incentives, grants, revolving funds, guarantees, insurance schemes, and loans to support energy efficiency service projects;(c) available energy services providers, such as ESCOs, that are qualified or certified and their qualifications or certifications in accordance with Article 28;(d) available monitoring and verification methodologies and quality control schemes.

2. Member States shall encourage the development of quality labels, inter alia, by trade associations, based on European or international standards where relevant.

3. Member States shall make publicly available and regularly update a list of available energy service providers that are qualified or certified and their qualifications or certifications in accordance with Article 28, or provide an interface where energy service providers can provide that information.

4. Member States shall promote and ensure, where technically and economically feasible, the use of energy performance contracting for renovations of large buildings that are owned by public bodies. For renovations of large non-residential buildings with a total useful floor area above 750 m2, Member States shall ensure that public bodies assess the feasibility of using energy performance contracting and other performance-based energy services.

Member States may encourage public bodies to combine energy performance contracting with expanded energy services, including demand response and storage, in order to ensure energy savings and maintain the results obtained over time through continuous monitoring, effective operation and maintenance.

5. Member States shall support the public sector in taking up energy service offers, in particular for building refurbishment, by:(a) providing model contracts for energy performance contracting which include at least the items listed in Annex XV and take into account the existing European or international standards, available tendering guidelines and the Eurostat guide to the statistical treatment of energy performance contracts in government accounts;(b) providing information on best practices for energy performance contracting, including, if available, a cost-benefit analysis using a life-cycle approach;(c) promoting and making publicly available a database of implemented and ongoing energy performance contracting projects that includes the projected and achieved energy savings.

6. Member States shall support the proper functioning of the energy services market, by taking the following measures:(a) identifying and publicising one or more points of contact where final customers can obtain the information referred to in paragraph 1;(b) removing the regulatory and non-regulatory barriers that impede the uptake of energy performance contracting and other energy efficiency service models for the identification or implementation of energy saving measures, or both;(c) setting up and promoting the role of advisory bodies and independent market intermediaries including one-stop shops or similar support mechanisms to stimulate market development on the demand and supply sides, and making information about those support mechanisms publicly available and accessible to market actors.

7. For the purpose of supporting the proper functioning of the energy services market, Member States may establish an individual mechanism or designate an ombudsperson to ensure the efficient handling of complaints and out-of-court settlement of disputes arising from energy service and energy performance contracts.

8. Member States shall ensure that energy distributors, distribution system operators and retail energy sales companies refrain from any activities that may impede the demand for and delivery of energy services or energy efficiency improvement measures, or hinder the development of markets for such services or measures, including foreclosing the market for competitors or abusing dominant positions.

1. Without prejudice to Articles 107 and 108 TFEU, Member States shall facilitate the establishment of financing facilities, or the use of existing ones, for energy efficiency improvement measures to maximise the benefits of multiple streams of financing and the combination of grants, financial instruments and technical assistance.

2. The Commission shall, where appropriate, directly or via financial institutions, assist Member States in setting up financing facilities and project development assistance facilities at national, regional or local level with the aim of increasing investments in energy efficiency in different sectors and of protecting and empowering people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing, including by integrating an equality perspective so that no one is left behind.

3. Member States shall adopt measures that promote energy efficiency lending products, such as green mortgages and green loans, secured and unsecured, and ensure that they are offered widely and in a non-discriminatory manner by financial institutions and, are visible and accessible to consumers. Member States shall adopt measures to facilitate the implementation of on-bill and on-tax financing schemes, taking into account the Commission guidance provided in accordance with paragraph 10. Member States shall ensure that banks and other financial institutions receive information on opportunities to participate in the financing of energy efficiency improvement measures, including through the creation of public-private partnerships. Member States shall encourage the setting up of loan guarantee facilities for energy efficiency investment.

4. Without prejudice to Articles 107 and 108 TFEU, Member States shall promote the establishment of financial support schemes to increase the uptake of energy efficiency improvement measures for the substantial refurbishment of individual and district heating and cooling systems.

5. Member States shall promote the establishment of local expertise and technical assistance, where appropriate through existing networks and facilities, to advise on best practices with regard to achieving the decarbonisation of local district heating and cooling, such as access to dedicated financial support.

6. The Commission shall facilitate the exchange of best practices between the competent national or regional authorities or bodies, including through annual meetings of the regulatory bodies, public databases with information on the implementation of measures by Member States, and cross-country comparisons.

7. In order to mobilise private financing for energy efficiency measures and energy renovation and to contribute to the achievement the Union’s energy efficiency targets and of the national contributions pursuant to Article 4 of this Directive and of the objectives in Directive 2010/31/EU, the Commission shall conduct a dialogue with both public and private financial institutions, as well as relevant specific sectors in order to map out needs and possible actions it can take.

8. The actions referred to in paragraph 7 shall include the following elements:(a) mobilising capital investment into energy efficiency by considering the wider impacts of energy savings;(b) facilitating the implementation of dedicated energy efficiency financial instruments and financing schemes at scale to be set up by financial institutions;(c) ensuring better energy and finance performance data by:(i) examining further how energy efficiency investments improve underlying asset values;(ii) supporting studies to assess the monetisation of the non-energy benefits of energy efficiency investments.

9. For the purpose of mobilising private financing of energy efficiency measures and energy renovation, Member States shall, when implementing this Directive:(a) consider ways to make better use of energy management systems and energy audits under Article 11 to influence decision-making;(b) make optimal use of the possibilities and tools available in the Union budget and proposed in the smart finance for smart buildings initiative and in Commission communication of 14 October 2020 on ‘A Renovation Wave for Europe – greening our buildings, creating jobs, improving lives’.

10. By 31 December 2024, the Commission shall provide guidance for Member States and market actors on how to unlock private investment.

The guidance shall have the purpose of helping Member States and market actors to develop and implement their energy efficiency investments, including in the various Union programmes, and shall propose adequate financial mechanisms and innovative financing solutions, with a combination of grants, financial instruments and project development assistance, to scale up existing initiatives and use the Union programmes as a catalyst to leverage and trigger private financing.

11. Member States may set up a national energy efficiency fund. The purpose of this fund shall be to implement energy efficiency measures to support Member States in meeting their national energy efficiency contributions and their indicative trajectories referred to in Article 4(2). The national energy efficiency fund may be established as a dedicated fund within an already existing national facility promoting capital investments. The national energy efficiency fund may be financed with revenues from the allowance auctions pursuant to the EU ETS on buildings and transport sectors.

12. Where Member States set up national energy efficiency funds, as referred to in paragraph 11 of this Article, they shall establish financing instruments, including public guarantees, to increase the uptake of private investments in energy efficiency and of the energy efficiency lending products and innovative schemes referred to in paragraph 3 of this Article. Pursuant to Article 8(3) and Article 24, the national energy efficiency fund shall support the implementation of measures as a priority among people affected by energy poverty, vulnerable customers, people in low-income households and, where applicable, people living in social housing. That support shall include financing for energy efficiency measures for SMEs in order to leverage and trigger private financing for SMEs.

13. Member States may allow public bodies to fulfil the obligations set out in Article 6(1) by means of annual contributions to the national energy efficiency fund equivalent to the amount of the investments required to achieve those obligations.

14. Member States may provide that obligated parties can fulfil their obligations set out in Article 8(1) and (4) by contributing every year to the national energy efficiency fund an amount equal to the investments required to achieve those obligations.

15. Member States may use their revenues from annual emission allocations under Decision No 406/2009/EC for the development of innovative financing for energy efficiency improvements.

16. The Commission shall assess the effectiveness and efficiency of energy efficiency public funding support at Union and national level and the Member States’ capacity to increase the uptake of private investments in energy efficiency, while also taking into account public financing needs expressed in the national energy and climate plans. The Commission shall evaluate whether an energy efficiency mechanism at Union level, with the objective of providing a Union guarantee, technical assistance and associated grants to enable the implementation of financial instruments, and financing and support schemes at national level, could support in a cost-effective way the achievement of the Union energy efficiency and climate targets, and, if appropriate, propose the establishment of such a mechanism.

To that end, the Commission shall submit by 30 March 2024 a report to the European Parliament and to the Council, accompanied, where appropriate, by legislative proposals.

17. Member States shall report to the Commission by 15 March 2025 and every two years thereafter, as part of their integrated national energy and climate progress reports submitted pursuant to Article 17 and in accordance with Article 21 of Regulation (EU) 2018/1999, the following data:(a) the volume of public investments on energy efficiency and the average leverage factor achieved by public funding supporting energy efficiency measures;(b) the volume of energy efficiency lending products, distinguishing between different products;(c) where relevant, national financing programmes put in place to increase uptake of energy efficiency and best practices, and innovative financing schemes for energy efficiency.

To facilitate the preparation of the report referred to in the first subparagraph of this paragraph, the Commission shall integrate the requirements set out in that subparagraph in the common template laid down in the implementing acts adopted pursuant to Article 17(4) of Regulation (EU) 2018/1999.

18. For the purpose of fulfilling the obligation referred to in paragraph 17, point (b), and without prejudice to additional national measures, Member States shall take into consideration the existing disclosure obligations for financial institutions, including:(a) the disclosure rules for credit institutions under Commission Delegated Regulation (EU) 2021/2178 (14);(b) the ESG risks disclosure requirements for credit institutions in accordance with Article 449a of Regulation (EU) No 575/2013 of the European Parliament and of the Council (15).

To facilitate the collection and aggregation of data on volume of energy efficiency lending product for the purpose of fulfilling the obligation referred to in paragraph 17, point (b), the Commission shall by 15 March 2024 provide guidance to Member States on the arrangements for accessing, collecting and aggregating data on the volume of energy efficiency lending products at national level.

1. For the purpose of comparison of energy savings and conversion to a comparable unit, the net calorific values in Annex VI of Regulation (EU) 2018/2066 and the primary energy factors set out in paragraph 2 of this Article shall apply unless the use of other values or factors can be justified.

2. A primary energy factor shall be applicable when energy savings are calculated in primary energy terms using a bottom-up approach based on final energy consumption.

3. For savings in kWh electricity, Member States shall apply a coefficient in order to accurately calculate the resulting primary energy consumption savings. Member States shall apply a default coefficient of 1,9 unless they use their discretion to define a different coefficient based upon justified national circumstances.

4. For savings in kWh of other energy carriers, Member States shall apply a coefficient in order to accurately calculate the resulting primary energy consumption savings.

5. Where Member States establish their own coefficient to a default value provided pursuant to this Directive, Member States shall establish that coefficient through a transparent methodology on the basis of national, regional or local circumstances affecting primary energy consumption. The circumstances shall be substantiated, verifiable and based on objective and non-discriminatory criteria.

6. Where establishing an own coefficient, Member States shall take into account the energy mix included in the update of their integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999 and their subsequent integrated national energy and climate plans notified to the Commission pursuant to Article 3 and Articles 7 to 12 of that Regulation. If they deviate from the default value, Member States shall notify the coefficient that they use to the Commission along with the calculation methodology and underlying data in those updates and subsequent plans.

7. By 25 December 2026 and every four years thereafter, the Commission shall revise the default coefficients on the basis of observed data. Those revisions shall be carried out taking into account its effects on Union law such as Directive 2009/125/EC and Regulation (EU) 2017/1369.

Member States shall lay down the rules on penalties applicable to infringements of national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall by 11 October 2025 notify the Commission of those rules and of those measures and shall notify it without delay of any subsequent amendment affecting them.

1. The Commission is empowered to adopt delegated acts in accordance with Article 34 to review the harmonised efficiency reference values laid down in Regulation (EU) 2015/2402.

2. The Commission is empowered to adopt delegated acts in accordance with Article 34 to amend this Directive by adapting to technical progress the values, calculation methods, default primary energy coefficients and the requirements referred to in Article 31 and in Annexes II, III, V, VIII to XII, and XIV.

3. The Commission is empowered to adopt delegated acts in accordance with Article 34 to supplement this Directive by establishing, after having consulted the relevant stakeholders, a common Union scheme for rating the sustainability of data centres located in its territory. The Commission shall adopt the first such delegated act by 31 December 2023. The common Union scheme shall establish the definition of data centre sustainability indicators and shall set out the key performance indicators and the methodology to measure them.

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 33 shall be conferred on the Commission for a period of five years from 10 October 2023. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3. The delegation of power referred to in Article 33 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 33 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

1. In the context of its State of the Energy Union report submitted pursuant to Article 35 of Regulation (EU) 2018/1999, the Commission shall report on the functioning of the carbon market in accordance with Article 35(1) and Article 35(2), point (c), of that Regulation, taking into consideration the effects of the implementation of this Directive.

2. By 31 October 2025 and every four years thereafter, the Commission shall evaluate the existing measures to achieve energy efficiency increase and decarbonisation in heating and cooling. The evaluation shall take into account all of the following:(a) energy efficiency and GHG emissions trends in heating and cooling, including in district heating and cooling;(b) interlinkages between measures taken;(c) changes in energy efficiency and greenhouse gas emissions in the heating and cooling;(d) existing and planned energy efficiency policies and measures and greenhouse gas reduction policies and measures at Union and national level;(e) measures which Member States provided in their comprehensive assessments pursuant to Article 25(1) of this Directive and notified in accordance with Article 17(1) of Regulation (EU) 2018/1999.

By 31 October 2025 and every four years thereafter, the Commission shall submit a report to the European Parliament and to the Council on that evaluation and, if appropriate, propose measures to ensure the achievement of the Union’s climate and energy targets.

3. Member States shall submit to the Commission before 30 April each year statistics on national electricity and heat production from high and low efficiency cogeneration, in accordance with the general principles set out in Annex II, in relation to total heat and electricity production. They shall also submit annual statistics on cogeneration heat and electricity capacities and fuels for cogeneration, and on district heating and cooling production and capacities, in relation to total heat and electricity production and capacities. Member States shall submit statistics on primary energy savings achieved by the application of cogeneration in accordance with the methodology set out in Annex III.

4. By 1 January 2021, the Commission shall submit a report to the European Parliament and to the Council, on the basis of an assessment of the potential for energy efficiency in conversion, transformation, transmission, transportation and storage of energy, accompanied, where appropriate, by legislative proposals.

5. By 31 December 2021, the Commission shall, subject to any changes to the provisions relating to retail markets in Directive 2009/73/EC, carry out an assessment, and submit a report to the European Parliament and to the Council, on the provisions related to metering, billing and consumer information for natural gas, with the aim of aligning them, where appropriate, with the relevant provisions for electricity in Directive (EU) 2019/944, in order to strengthen consumer protection and enable final customers to receive more frequent, clear and up-to-date information about their natural gas consumption and to regulate their energy use. As soon as possible after the submission of that report, the Commission shall, where appropriate, adopt legislative proposals.

6. By 31 October 2022, the Commission shall assess whether the Union has achieved its 2020 headline targets on energy efficiency.

7. By 28 February 2027 and every five years thereafter, the Commission shall evaluate the implementation of this Directive and submit a report to the European Parliament and to the Council.

That evaluation shall include:

(a) an assessment of the general effectiveness of this Directive and the need to further adjust the Union’s energy efficiency policy in accordance with the objectives of the Paris Agreement and in light of economic and innovation developments;

(b) a detailed assessment of the aggregated macroeconomic impact of this Directive, with an emphasis on the effects on the Union’s energy security, energy prices, minimising energy poverty, economic growth, competitiveness, job creation, mobility cost and household purchasing power;

(c) the Union’s 2030 headline targets on energy efficiency set out in Article 4(1) with a view to revising those targets upwards in the event of substantial cost reductions resulting from economic or technological developments, or where needed to meet the Union’s decarbonisation targets for 2040 or 2050, or its international commitments for decarbonisation;

(d) whether Member States are to continue to achieve new annual savings in accordance with Article 8(1), first subparagraph, point (b)(iv), for a ten-year periods after 2030;

(e) whether Member States are to continue to ensure that at least 3 % of the total floor area of heated and/or cooled buildings that are owned by public bodies is renovated each year in accordance with Article 6(1) with a view to revising the renovation rate in that Article;

(f) whether Member States are to continue to achieve a share of energy savings among people affected by energy poverty, vulnerable customers and, where applicable, people living in social housing, pursuant to Article 8(3) for the ten-year periods after 2030;

(g) whether Member States are to continue to achieve a reduction of final energy consumption in accordance with Article 5(1);

(h) the impacts of this Directive on supporting economic growth, increasing industrial output, the deployment of renewables or advanced efforts to climate neutrality.

The evaluation shall also cover the effects on efforts to electrify the economy and the introduction of hydrogen, including whether any change to the treatment of clean renewable energy sources might be justified, and shall propose, where appropriate, solutions to any potentially identified adverse effect.

That report shall be accompanied by a detailed assessment of whether there is a need to amend this Directive in the interests of regulatory simplification and, where appropriate, by proposals for further measures.

8. By 31 October 2032, the Commission shall assess whether the Union has achieved its 2030 headline targets on energy efficiency.

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Articles 1, 2 and 3, Article 4(1) to (4), Article 4(5), first, second, fourth, fifth and sixth subparagraphs, Article 4(6) and (7), Articles 5 to 11, Article 12(2) to (5), Articles 21 to 25, Article 26(1), (2) and (4) to (14), Article 27, Article 28(1) to (5), Articles 29 to 32 and Annexes I, III to VII, X, XI and XV by 11 October 2025.

Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Article 4(5), third subparagraph, Article 12(1), Article 26(3) and Article 28(6) by the dates referred to therein. They shall immediately communicate the text of those measures to the Commission.

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. They shall also include a statement that references in existing laws, regulations and administrative provisions to the Directive repealed by this Directive shall be construed as references to this Directive. Member States shall determine how such reference is to be made and how that statement is to be formulated.

2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

In Article 2 of Regulation (EU) 2023/955, point (1) is replaced by the following:

‘(1) “energy poverty” means energy poverty as defined in Article 2, point (52), of Directive (EU) 2023/1791 of the European Parliament and of the Council (*1).

Directive 2012/27/EU, as amended by the acts listed in Part A of Annex XVI is repealed with effect from 12 October 2025, without prejudice to the obligations of the Member States relating to the time-limits for the transposition into national law of the Directives set out in Part B of Annex XVI.

References to the repealed Directive shall be construed as references to this Directive and shall be read in accordance with the correlation table in Annex XVII.

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Articles 13 to 16 and Articles 18 and 20 and Annexes II, IX, XII, XIII and XIV shall apply from 12 October 2025.

Article 37 shall apply from 30 June 2024.

This Directive is addressed to the Member States.