The financial world, real estate sector, and construction sector jointly warn regional governments:
Urgently work towards a single EPB regulation.
The fact that Flanders, Wallonia, and Brussels each have their own EPB regulations has become completely untenable. Not only do these different systems cost a great deal of time and money, they also undermine the credibility of Belgian energy policy and are increasingly deterring potential investors.
The main federations and umbrella organizations from the construction, real estate, and financial sectors in Belgium – together representing more than 16,500 companies – have recently warned the competent ministers and issued the necessary recommendations.
For example, there is an explicit call for a single, clear EPB regulation that provides clarity and allows banks and investors, among other things, to compare. It's no coincidence that such a large alliance of business representatives is now issuing this urgent appeal.
Belgium must transpose the amended European Directive on the Energy Performance of Buildings (EPB) into national legislation by the end of May. Without such a major EPB reform that at least leads to greater interregional coordination, the three regions risk being declared in default at the European level.
The Belgian Green Building Council, along with ADEB-VBA, BA4SC, BELFA, Buildwise, Embuild, Febelfin, Life Be Free, UPSI-BVS, and Techlink, are calling on the competent regional energy ministers to meet soon to discuss how a single, uniform EPB methodology can be pragmatically rolled out.
"Only in Belgium" is one way to describe the approach to EPB calculations in our country. Flanders, Wallonia, and Brussels each have their own unique methods for calculating the energy efficiency of new construction or major renovations. The result is that an identical building on one side of the country can be considered significantly more energy-efficient than on the other.
"Pure Kafka," is the message from the Belgian Green Building Council, supported by sector organizations ADEB-VBA, BA4SC, BELFA, Buildwise, Embuild, Febelfin, Life Be Free, UPSI-BVS, and Techlink, which are jointly sounding the alarm. Time is of the essence for those involved to arrive at a single, common EPB approach for all of Belgium. The reason: it not only costs our country a great deal of money, but also jeopardizes the credibility of our Belgian energy policy. Moreover, the Kafkaesque system makes building and renovation unnecessarily complex and discourages investors, banks, and citizens. And then there's the compelling demand from Europe, which demands, at the very least, more interregional coordination.
More private capital in times of subsidy cuts
The way an EPB score is calculated still varies significantly from region to region. A striking example is the use of the so-called conversion factor for electricity. This factor determines how much electricity consumption weighs in a property's EPB score. In Belgium, each region uses a different conversion factor. As a result, the exact same house with the same electricity consumption receives a different EPB score in each region. Even more striking: the results can vary by up to 30 percent, meaning a property can receive a B label in one region and a D or even an E in another.
Besides creating an unclear picture of how sustainable a building actually is, these completely unclear EPB scores can also have serious consequences for the long-term financing of carbon-efficient renovations, which will only become increasingly mandatory. In one region, the construction or renovation of a house would be encouraged and financed, while in another region, this project would be discouraged or even penalized.
A similar absurd problem applies, for example, to the standard values used for boilers, fans, and renewable energy systems: each region uses its own values. As a result, the same gas condensing boiler can be more efficient in one region than in another, which can again lead to completely different EPB scores.
"All these differences, however minimal, make it unnecessarily complex for banks and investors, who are therefore left in the dark when considering real estate financing in Belgium. They need clear, transparent, and comparable EPB scores to conduct risk analyses and verify whether buildings comply with sustainable financing frameworks determined by Europe, among others," states the alliance that is sounding the alarm.
"Each region can speak its own language, but only by using the same alphabet will the flow of private capital into high-quality, sustainable buildings accelerate. This is desperately needed at a time when renovation subsidies are being systematically cut back and private investment is needed more than ever."
Opportunity not to be missed
A single, uniform system will significantly strengthen Belgium's credibility as a business-friendly country. But it doesn't stop there: it's also a way to reduce the costs associated with this Kafkaesque project by up to a third. This will allow regional governments to share expenditures on software, updates, legal interpretation, training, and scientific research, among other things – something that is not insignificant in times of austerity.
The European Union is also pushing for greater regional coordination. By the end of May, the three regions must have transposed the amended European Directive on the Energy Performance of Buildings (EPBD) into regional legislation. This directive explicitly calls for much better coherence between the regions.
"If we miss this opportunity, the regions risk being declared in default, which will initially undermine the confidence of financial institutions and investors in our country," the various federations and umbrella organizations warn.
Therefore, the Belgian Green Building Council, together with all its partners, is now calling on the competent regional energy ministers to meet soon to explore how a uniform Belgian EPB methodology can be pragmatically rolled out. The ministers received the recommendations and the additional research earlier this week.
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