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Commission issues guidance on phasing out financing for stand-alone fossil fuel boilers from 2025

The European Commission has today issued the first of a series of guidance documents to support EU countries in transposing and implementing the revised Directive on the Energy Performance of Buildings into national law. Today’s guidance (C/2024/7161) clarifies the requirement under Article 17 (15) to discontinue, at the latest from 1 January 2025, any financial incentive for the installation of new stand-alone boilers powered by fossil fuels. In particular, the document clarifies the notions of ‘stand-alone boiler powered by fossil fuels’ and of ‘hybrid heating system’, as well as ‘installation’ and ‘financial incentives’. As an example, no grants, preferential loans or fiscal incentives, such as reduced tax rates, can be provided for the purchase, assembly and putting into operation of new stand-alone boilers powered by natural gas, oil or coal, regardless of whether the installation is part of a renovation project or not. No public body at national, regional or local level shall provide economic support and/or support through public resources to buyers, installers and third parties for the installation of such boilers.

Background

The revised Energy Performance of Buildings Directive (EPBD) sets out how the EU can achieve a fully decarbonised building stock by 2050 via a range of measures and thereby reduce energy bills for European citizens by structurally boosting the energy performance of buildings. It entered into force on 28 May 2024 with a transposition deadline of 29 May 2026 for most of the provisions. However, Article 17(15) has an earlier transposition deadline of 1 January 2025. The Commission is working on a number of guidance documents on other elements of the updated EPBD, with a view to adopt them next year.

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