In late 2020, we recommended that the European Commission align the Energy Efficiency Directive’s energy savings obligation with the 2050 climate goal. It took a first step towards achieving this objective in summer 2021. In its proposal, energy savings derived from the installation of technologies that directly combust fossil fuels are excluded for the purposes of compliance with the Directive. From 2024, energy savings from new coal, gas and oil boilers will no longer be eligible.

This policy brief explains why this provision is so important. We also lay out how Member States can benefit under the Energy Efficiency Directive by ramping up policy measures that support the beneficial electrification of heating in buildings.