The 2024 recast EPBD: What HVAC and building professionals need to know?

Table of Contents:

Abstract2

Why the HVAC sector matters now more than ever2

Fast, flexible, affordable: what the market needs now.. 3

HVAC sector concerns and response to the EPBD IV.. 4

Fossil fuel phase-out. 4

Building Automation and Control Systems (BACS). 4

MEPS and EPCs. 5

Indoor Environmental Quality (IEQ). 5

What professionals should do now.. 5

Embrace the smart shift.. 6

Make IEQ visible. 6

Guide building owners through MEPS and EPC transitions. 7

Upskill, collaborate, and stay ahead. 7

Turning compliance into opportunity. 7

Abstract

The 2024 recast of the Energy Performance of Buildings Directive (EPBD) places HVAC professionals at the core of Europe’s decarbonisation journey. No longer treated as peripheral, heating, ventilation, and air-conditioning systems are now central to achieving zero-emission buildings, improving Indoor Environmental Quality (IEQ), and securing energy resilience. With this sharper regulatory focus comes an urgent demand for fast, affordable, and flexible solutions, qualities that the HVAC sector must deliver in both new construction and renovation contexts.

This article explores how the EPBD’s new provisions, from mandatory Building Automation and Control Systems (BACS) and self-regulating devices, to Minimum Energy Performance Standards (MEPS) and phase-outs of fossil fuel boilers, are reshaping the profession.

Drawing on the final EPBD text and professional practice, it outlines what HVAC actors must do to stay ahead by responding to the directive’s ambition, balancing concerns about feasibility with the business opportunity offered by the policy’s clear direction. The message is clear: those who adapt early will lead the transformation. Those who don’t risk being left behind.

Why the HVAC sector matters now more than ever

The 2024 recast of the Energy Performance of Buildings Directive (EPBD IV) is more than a technical update,  it is the EU’s answer to a cascade of overlapping crises. From climate change and energy security to indoor health and social equity, the revised directive reflects a broader, more urgent understanding of what buildings must deliver. And at the heart of that transformation lies the performance of heating, ventilation, and air conditioning (HVAC) systems.

The EPBD now links building energy performance not only to carbon targets, but to wider resilience goals: protecting occupants’ health, reducing fossil fuel dependency, and improving quality of life, all while accelerating renovation rates. This shift places new responsibility, and opportunity, on HVAC professionals. Designers, installers, and maintenance experts are no longer working behind the scenes. Their decisions now influence whether a building meets zero-emission targets, delivers thermal comfort, and contributes to grid flexibility and digitalisation.

With new requirements for smart controls, IEQ monitoring, and high-efficiency, low-temperature systems, the EPBD outlines a new normal. The HVAC sector is central to this, not just because it represents a large share of building energy use, but because it holds the technical key to making buildings truly perform.

Fast, flexible, affordable: what the market needs now

The EPBD’s ambition is clear, but success will hinge on whether the HVAC and construction sector can meet it with the speed, flexibility, and cost-efficiency demanded by the market. These three factors are emerging as the defining characteristics of next-generation building renovation and construction projects.

Speed is critical. With MEPS deadlines looming (e.g., phasing out G-class non-residential buildings by 2030), building owners and facility managers are under pressure to act quickly. HVAC solutions must be deployable with minimal disruption. Prefabricated systems, modular HVAC units, and simplified commissioning processes are gaining ground. Installers who can deliver turnkey solutions, especially in occupied buildings, will be highly sought after.

Flexibility refers to both system design and business models. The EPBD increasingly favours adaptable solutions: heat pumps compatible with legacy emitters, hybrid ventilation systems, and interoperable BACS setups. From a business standpoint, leasing, performance contracting, and service-based offerings (HVAC-as-a-Service) are becoming attractive options, especially for public sector clients facing budget constraints but bound by compliance timelines.

Affordability remains the top concern for both households and SMEs. Here, the HVAC sector can lead by offering cost-effective staged renovation options. The EPBD encourages this with renovation passports and EPC-linked recommendations, and HVAC system upgrades (e.g. zoning controls, smart thermostats, low-temperature emitters) often provide high return-on-investment even as standalone measures.

If the sector can respond with practical, scalable, and customer-friendly offerings, it will do more than comply with policy, it will drive the energy transition forward from the ground up.

HVAC sector concerns and response to the EPBD IV

As the HVAC sector digests the implications of the 2024 recast EPBD, a range of concerns have surfaced, particularly from SMEs, designers and installers, and industry associations. Yet alongside these concerns are signs of pragmatic adaptation and strategic alignment with the directive’s ambitions.

Fossil fuel phase-out

One of the most pressing concerns is the gradual phase-out of fossil-fuel boilers. Article 13(7–8) pushes Member States to replace stand-alone fossil fuel systems, while Article 15 promotes financial incentives for switching to clean alternatives. Industry voices worry about the feasibility of this shift, especially in poorly insulated buildings or rural areas with legacy systems. Associations such as REHVA have stressed the need for a technology-inclusive and context-sensitive approach, allowing hybrid systems or phased retrofits where full electrification isn’t yet viable.

In response, many manufacturers are fast-tracking heat pump portfolios, hybrid-ready systems, and training programmes for designers and installers. The message from policy is clear, and companies that provide clean, scalable, and serviceable solutions will be better placed as fossil-fuel phase-outs gain legal weight.

Building Automation and Control Systems (BACS)

BACS are no longer optional. Article 13 requires them in large buildings as of 2025 and 2029 depending on system size, and mandates smart features even in new residential buildings by 2026. This has raised concerns among designers, installers and facilities teams about the skills gap, especially in smaller firms unaccustomed to advanced controls or IT integration.

In response, the sector is investing in upskilling, from manufacturer-led training to EU-funded initiatives under the LIFE and Horizon Europe programmes. Controls providers are also simplifying interfaces and offering pre-configured solutions to lower the barrier for entry. Interoperability and open protocols are becoming selling points, especially as digital building logbooks and Smart Readiness Indicators (SRI) begin to tie into broader compliance frameworks.

MEPS and EPCs

The move from voluntary recommendations to mandatory energy upgrades via MEPS (Minimum Energy Performance Standards) is perhaps the biggest paradigm shift. Many HVAC professionals welcome the visibility this gives to the renovation market, but stress the need for clarity and consistency in national transpositions, particularly regarding EPC class thresholds and exemption criteria.

To support clients, consultants and ESCOs are building service offers around EPC improvement planning, bundled with funding advice and implementation support. The new EPC requirements (Article 19), including advice on system temperatures, lifespan and low-carbon replacements, also present an opportunity for HVAC experts to position themselves as trusted advisors, not just contractors.

Indoor Environmental Quality (IEQ)

With Articles 13(4–5) and 9 now requiring IEQ safeguards, HVAC system design must address ventilation, comfort, and air quality as core deliverables, not side benefits. The industry’s concern: how to balance IEQ with strict energy targets, especially in retrofits where space and budgets are limited.

The trend is toward integrated, performance-verified solutions, like demand-controlled ventilation with CO₂ monitoring, or zoned heating/cooling with IEQ sensors. Some manufacturers are beginning to bundle IEQ as part of system offerings, while associations like REHVA are updating guidance to support professionals in this dual-delivery model: energy savings + occupant wellbeing.

What professionals should do now

The 2024 recast EPBD marks a shift from performance on paper to performance in operation. For HVAC professionals, this means going beyond minimum compliance and proactively integrating smarter, more resilient, and more user-focused solutions into every phase of building design, installation, and maintenance.

Embrace the smart shift

The directive’s digital backbone, encompassing BACS, the Smart Readiness Indicator (SRI), and Digital Building Logbooks (DBL), means that system performance will increasingly be monitored, recorded, and benchmarked in real time. This opens up space for data-driven services: continuous commissioning, remote diagnostics, and predictive maintenance. Controls engineers and HVAC specialists should anticipate demand for interoperable systems, cloud-based dashboards, and user-friendly control interfaces.

Professionals should also track the emerging SRI rollout. While currently voluntary, Article 15 signals that large buildings will likely require SRI assessments from 2027. Those with experience in building controls, automation and smart-grid-ready HVAC will be well-positioned to offer this as an add-on service.

Make IEQ visible

IEQ is no longer optional. As sensors become mandated in many new and renovated buildings, HVAC professionals will be expected to specify, install, and interpret IEQ data. Rather than treating this as extra work, it’s a chance to demonstrate added value: delivering systems that don’t just reduce energy use, but actively improve comfort, productivity, and health.

Professionals should align with standards such as EN 16798 for IEQ parameters, and prepare to integrate monitoring devices (e.g. CO₂, RH, VOC sensors) into HVAC controls. This likely will be particularly relevant in schools, offices, and healthcare buildings.

Guide building owners through MEPS and EPC transitions

As MEPS deadlines approach, building owners will turn to trusted professionals to understand:

·         Where they stand (via updated EPCs)

·         What to do (via tailored improvement plans)

·         And how to finance upgrades (via one-stop shops or subsidies)

HVAC professionals can lead this conversation. Article 19 requires EPCs to assess heating system temperature regimes and replacement timelines, turning every EPC into a potential project brief. With the right training and digital tools, HVAC companies can evolve from installers to energy advisors, packaging assessments, planning, and upgrades into an integrated offer.

Upskill, collaborate, and stay ahead

The directive encourages Member States to support training and capacity building (Article 17). HVAC professionals should proactively engage with these opportunities, especially in digital skills, integrated system design, and low-carbon heat technologies (e.g. heat pumps, district heating, hybrid systems). Crucially, as the focus shifts from compliance to actual performance, professionals must also take on greater responsibility and long-term commitment for delivering measurable outcomes. This evolution comes with a significant challenge: the upskilling of trusted professionals. For example, energy performance calculations that are still seasonal in many countries will soon need to capture more complex indicators, such as global warming potential. Achieving this level of precision and consistency can only be realistically supported through the adoption of common EU-wide methodologies and tools.

Cross-discipline collaboration is also essential. The EPBD requires HVAC professionals to work closely with architects, energy auditors, and digital service providers, not just to comply, but to deliver the integrated building performance Europe now demands.

Turning compliance into opportunity

The 2024 recast of the Energy Performance of Buildings Directive is not simply a regulatory burden, it’s a market signal. It sets a clear direction for the decarbonisation of buildings, anchored in measurable performance, smart digital integration, and occupant wellbeing. For HVAC professionals, this represents both a challenge and a business opportunity.

Yes, the compliance bar is rising, but so is demand for skilled experts who can deliver real-world results. From system designers to controls integrators, from maintenance specialists to energy auditors, the sector is being called upon to lead the transformation of Europe's buildings.

Those who act early, by upskilling, offering integrated solutions, and helping clients navigate new requirements, will be in a strong position. The HVAC sector is no longer just about comfort or efficiency; it is central to achieving Europe’s goals for energy security, climate neutrality, and health. And unlike in previous cycles of regulation, the EPBD IV creates a continuous stream of projects through MEPS, digitalisation mandates, and smart renovation tools.

Compliance is the baseline. Opportunity lies in shaping what comes next: a building stock that is healthier, cleaner, smarter and better performing. HVAC professionals are not just part of the process, they are now key enablers of Europe’s green transition.

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