EU Council Adopts Rules Mandating Net-Zero Buildings by 2050

The European Union Council has adopted an amended directive on helping decrease greenhouse-gas emissions and energy poverty. The directive’s primary objective is addressing the energy performance of buildings.

At the moment, buildings produce more than one-third of greenhouse emissions in the European Union. Under the new directive, all buildings shall be zero-emission by 2050. By 2050, the European Union’s building stock should have transformed into zero-emission building stock. The directive also introduced standards on energy performance for nonresidential buildings in an effort to ensure that they do not surpass the maximum amount of energy used every year for each square meter.

According to the new directive, all nonresidential buildings shall be above the 16% worst-performing buildings by 2030. The purpose of this is to gradually phase out worst-performing nonresidential buildings.

Members of the European Union can choose to spare certain buildings, such as places of worship, historical buildings and structures owned by armed forces, from the directive.

The new rules also mandate that member states ensure that the average primary use of energy for residential buildings be reduced by 16% by 2030. By 2035, this number should drop to at least 20%.

The EU expects to achieve energy reduction by renovating worst-performing residential buildings. During renovations, all member nations will be required to implement financial support and technical assistance measures centered on vulnerable households. National renovation plans for buildings will also include roadmaps with a plan to gradually eliminate the use of fossil-fuel boilers by 2040 to further decarbonize the building sector.

These new regulations will also ensure the deployment of solar-energy installations in public buildings, new buildings and already existing nonresidential buildings under renovation that need permits. This is in addition to offering sustainable mobility infrastructure, which shall include ducting or precabling to accommodate bicycle parking spaces and future infrastructure, and recharge points for electric vehicles next to or in buildings.

The directive will soon be signed then published in the European Union’s official journal. All member states will be given two years to integrate the directive’s provisions into their legislations. In 2028, the commission is set to review the directive, evaluating the progress made and experience gained from its implementation.

Currently, 75% of building stock in the European Union has poor energy performance. More than 80% of these buildings were constructed before the year 2000. This is according to latest data from the Building Stock Observatory, which enables users to monitor the energy performance of buildings across Europe.

It is encouraging that regional blocs such as the EU are mandating the switch to net-zero construction. These efforts, coupled with the activities of enterprises such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) that are making it possible for the forecast demand for green-energy metals to be addressed, could make the energy transition smoother than was initially anticipated.

NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF

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