The European Parliament has formally adopted the revised Energy Performance of Buildings Directive (EPBD), which will become law upon formal approval by the Council of Ministers. The directive requires that starting from 2030, all new residential buildings in the EU must be powered by rooftop solar power. Public buildings and non-residential buildings will need to gradually deploy solar energy based on their size and evaluation of technology and economics. EPBD aims to reduce energy consumption and greenhouse gas emissions in the building sector in line with the EU's goal of achieving climate neutrality by 2050.

Currently, energy consumption in the EU's building sector accounts for 40% of the EU's total energy consumption and 36% of greenhouse gas emissions. Improving energy efficiency in buildings aims to increase energy independence and sustainability in the sector by reducing the use of imported oil and gas fuels.

Under upcoming regulations, all new buildings occupied or owned by public bodies will need to be zero-emission by 2028, and from 2030.

Member States need to clearly plan the measures they will take to decarbonise their heating systems in order to phase out fossil fuels in heating and cooling by 2040. From 2025, stand-alone fossil fuel boilers will no longer receive subsidies, but hybrid heating systems using renewable energy will be eligible for financial incentives.