How the revised Energy Performance of Buildings Directive is driving more energy-efficient and livable buildings

Updated EU directive will support the urgently needed increase in the rate of renovation

Buildings are the single largest consumer of energy in the EU. 85% of buildings in the region were built before 2000 and of those, 75% have a poor energy performance. With 37% of global energy-related emissions resulting from building and construction, as the World Green Building Council reports, renovation rates must increase from the current 1% annually to 2.5% by 2030 to be on track for its 2050 net zero target.

Rapid and competent renovations can significantly reduce these energy-related emissions - by as much as 51%, as reported by the Canada Green Building Council. “Solutions already exist to secure a better future,” says Cristina Gamboa, CEO of the WorldGBC, but “we need an enabling policy environment, industry ambition, and finance to leverage the huge potential of the built environment.”

The EU has made a significant contribution to the enabling environment that Gamboa calls for, publishing the revised Energy Performance of Buildings Directive (EPBD) on May 8, 2024. With the goal of achieving a fully decarbonized building stock by 2050, the EPBD is the EU’s main policy initiative for improving energy performance and reducing greenhouse gas emissions from buildings.

Key elements of the revised EPBD include:

Zero-emission and solar-ready standards for new buildings
A stronger enabling framework and financing support for renovations
Phasing out fossil fuel use and increasing use of renewables
Measures to ensure better indoor air quality
Support for digitalizing building energy systems
Accelerating the rollout of recharging infrastructures for EVs
Transparency on building information data for citizens and financial institutions

Energy-efficient buildings in a large city

Signify is committed to driving forward industry ambitions to reach net-zero emissions, through its own products and systems and in partnership with global innovators such as Danfoss, Energy efficient LED and connected LED lighting is an important contributor to net-zero building renovation plans. In offices, lighting currently accounts for 17% of all energy use and as much as 40% of electricity use in ambient warehousing.

Connected LED lighting systems, especially when integrated with building automation or management systems, are referred to in the EPBD as “built-in lighting.” As a “technical building system,” connected lighting directly affects building energy consumption and is included in the EPBD’s energy performance calculation. For non-residential buildings, the revised EPBD mandates the use of building automation and controls, including the use of automatic lighting controls with occupancy detection in non-residential buildings.

At Signify, we’ve long believed that human health and well-being is as important as energy efficiency in sustainability considerations. The latest version of the EPBD includes standards for indoor air environmental quality (IEQ) recognizing that “healthy buildings are vital to the health and well-being of EU citizens and actively contribute to the productivity, creativity, and safety of their occupants,” as LightingEurope points out.

Signify offers solutions that help building owners comply with both the energy-efficiency and the health and well-being requirements of the revised EPBD.”

Properly managed lighting ensures that building occupants can perform tasks comfortably, navigate spaces safely and identify potential hazards. Lighting can also play a vital role in regulating circadian rhythms, promoting better sleep patterns, and enhancing mood and alertness during the day.

Signify offers solutions today that help building owners comply with both the energy-efficiency and the health and well-being requirements of the EPBD. These include the industry’s most energy-efficient luminaires, circadian lighting solutions for offices and healthcare, and UV-C lighting for air disinfection. All of these offerings can be centrally coordinated with Interact, which offers an IoT-enabled infrastructure that integrates with other energy-efficient building systems and serves as a platform for deploying sensors throughout the lit environment. This in turn helps to satisfy the EPBD requirements on data collection and reporting.

The most important thing you can do as a business or building owner is to take action. We recommend adopting an approach like the 8-point action plan from the World Resources Institute, which offers advice on how to include connected LED lighting in building renovations. We also invite you to follow the lead of Danfoss and partner with us to achieve compliance with the EPBD.

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About the author:

Mario Giordano
Global Head of Public & Government Affairs, Signify

For further information, please contact:

Head of External Communications - Signify

Tom Lodge
Tel: +31 6 52525416
Email: tom.lodge@signify.com

For commercial enquiries:

About Signify

Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers. We proudly bring to market the world’s best lighting brands, from Signify, Philips, Philips Hue, Signify Interact, Philips Dynalite, Color Kinetics and many more. Our advanced products, connected systems and services unlock the extraordinary potential of light for brighter lives and a better world. In 2025, we had sales of EUR 5.8 billion, approximately 27,000 employees, and a presence in over 70 markets. We are in the Dow Jones Sustainability World Index and hold the EcoVadis Platinum rating.

News and updates from Signify can be found in the Newsroom, on LinkedIn and Instagram. Information for investors is located on the Investor Relations page.

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