Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
In a period of growing concern for the carbon footprint of buildings, energy performance certificates (EPCs) offer some much-needed transparency so that anyone can find out the energy efficiency or emissions of any specific building. In the European Union, the United Kingdom, and some other countries, EPCs need to be included when a property is made available to be bought or rented.
That is the difference between EPCs and green building certification systems such as BREEAM or LEED. There were 17,271 BREEAM projects in the UK as of April 2024, with the UK being by far the country where that organization was the most active. Meanwhile, there were over a million EPCs for commercial buildings in England alone.
Renting or buying housing with high scores in their EPCs may be a wise investment, as those homes or apartments will require less heating in winter. The amount of money that a household could save by switching to more energy-efficient buildings depends on many factors. For example, gas and electricity prices for households in Europe can vary a lot from one country to another. Therefore, households in countries where heating is more expensive will save more by reducing the amount of energy needed to keep their home warm.
Given that buildings were responsible for over 17 percent of the CO2 emissions in the EU in 2022, reducing their carbon intensity is essential to reach carbon neutrality goals. EPCs are an important tool for that goal, as they provide information that may steer the market towards more efficient buildings that are less harmful to the environment and have lower heating and electricity costs.
That is the difference between EPCs and green building certification systems such as BREEAM or LEED. There were 17,271 BREEAM projects in the UK as of April 2024, with the UK being by far the country where that organization was the most active. Meanwhile, there were over a million EPCs for commercial buildings in England alone.
Why should homeowners and tenants favor energy-efficient housing?
Heating and electricity bills eat away a significant share of the income of many European households. In fact, the share of households unable to keep their home adequately warm in 2022 amounted to 6.6 percent in Germany, 10.7 percent in France, and 17.1 percent in Spain. With a few countries having even rates of energy poverty.Renting or buying housing with high scores in their EPCs may be a wise investment, as those homes or apartments will require less heating in winter. The amount of money that a household could save by switching to more energy-efficient buildings depends on many factors. For example, gas and electricity prices for households in Europe can vary a lot from one country to another. Therefore, households in countries where heating is more expensive will save more by reducing the amount of energy needed to keep their home warm.
How can increasing the energy efficiency of buildings help reduce their carbon footprint?
In some countries, such as the UK, Spain, or France, EPCs also include information about the carbon footprint of the building. Between July 2021 and April 2024, there were 1.3 million certificates issued for greenhouse gases (GHG) emissions of housing in France, which means that those houses and apartments were much less carbon intensive than the rest. Nevertheless, even just the energy efficiency label can provide insight into that regard, as energy-efficient homes require less heating and energy usage, and therefore release less GHGs.Given that buildings were responsible for over 17 percent of the CO2 emissions in the EU in 2022, reducing their carbon intensity is essential to reach carbon neutrality goals. EPCs are an important tool for that goal, as they provide information that may steer the market towards more efficient buildings that are less harmful to the environment and have lower heating and electricity costs.
