What the EU Green Homes Directive means for Italy

The European Union has been turning up the heat on its climate commitments. In a bold move to tackle energy inefficiency and reduce emissions, last year the EU officially adopted the revised Energy Performance of Buildings Directive, better known as the Green Homes Directive. Published in the EU Official Journal on 8 May 2024 and in force since 28 May 2024, the revision is part of the “Fit-for-55” package. For the millions of Europeans living in aging, drafty buildings, the change promises to be transformative. But what does this ambitious plan mean in real terms; especially for Italy, with its rich architectural history and aging housing stock?

Let’s take a closer look at how this sweeping new legislation will reshape homes across Europe, and how Italy is preparing to meet the challenge.

A European Wake-Up Call

Buildings are Europe’s quiet energy guzzlers. They account for roughly 40 % of total final energy use and 36 % of energy-related CO₂ emissions.  The Green Homes Directive addresses this head-on, with a clear, uncompromising vision: by 2050, all buildings in the EU must be climate-neutral.

That’s not a suggestion, it’s now law. From new construction to deep retrofits, the directive sets performance benchmarks that all member states must follow. The idea is to reduce overall energy consumption while accelerating the shift to renewable-energy systems and phasing out fossil fuels entirely.

Key targets now fixed in the final text:

• Average primary-energy use in residential buildings must fall at least 16 % by 2030 and 20-22 % by 2035.

• Member states must renovate the worst-performing 16 % of non-residential buildings by 2030 and 26 % by 2033.

• New public buildings must be zero-emission from 2028; all new buildings from 2030.

• Standalone fossil-fuel-boiler subsidies end in 2025; boilers must be fully phased out by 2040.

It’s a top-down mandate, but with built-in flexibility: each EU country will define how it achieves these goals through a mix of national laws, incentives, and action plans.

Italy: Beautiful, Historic… and Energy Inefficient

In Italy, the directive lands in a particularly delicate context. While the country boasts one of the most architecturally diverse and historically rich building stocks in Europe, it also faces a daunting energy challenge: over half of Italian dwellings, between 54 % and 60 %, sit in the lowest energy classes F and G.  Millions of homes, many built before modern insulation standards, still score poorly on EPC ratings.

Estimates suggest that about 1.8 million buildings fall into the directive’s “worst 15 %” bracket and therefore need urgent intervention to comply with the 2030 milestones.  These are not just minor upgrades, we’re talking deep renovations involving insulation, energy-system overhauls, solar panels, and, in many cases, outright replacement of heating infrastructure.

Yet, Italy’s traditional masonry buildings can perform far better in practice than their ratings imply. High-mass stone walls, often 60-80 cm thick, dampen temperature swings, keeping interiors cool in summer and retaining heat in winter. Experimental field studies on vernacular buildings in Matera, Alberobello and other Mediterranean towns show indoor temperatures near comfort levels with minimal active cooling, thanks to the thermal-lag effect.

New Rules, Real Impacts

For homeowners, developers and public authorities alike, the directive introduces a new reality. From January 2028 all new public buildings must be zero-emission; private-sector projects follow in 2030.

Retrofitting is also front and centre. Italy must cut average residential-building energy use by 16 % by 2030, targeting the worst performers first. That means condominium blocks, single-family homes and historic townhouses will come under scrutiny; though exemptions are expected for protected heritage sites, holiday homes and rural structures under 50 m².

The Meloni government has already signalled it will lean on this flexibility. Environment Minister Gilberto Pichetto Fratin argues that “Italy’s historic heritage and Mediterranean climate require differentiated timelines,” calling the 2050 neutrality goal “realistic,” whereas the 2030-33 interim steps are “difficult, even impossible” without unacceptable costs for households.

Incentives and Solar Mandates

Italy, like other EU countries, is encouraged to back the directive with real incentives like tax deductions, subsidised loans, and support for energy communities. Existing schemes such as Ecobonus and (the now-downsized) Superbonus may be re-tooled into longer-term programmes aligned with EU goals.

Meanwhile, solar power is becoming a legal obligation. Large public and non-residential buildings must install photovoltaic panels as early as 2026, with new residential buildings to follow by 2029.  Automation and smart-energy-control systems for larger buildings are likewise written into law.

Traditional Buildings: Problem or Hidden Asset?

One critique of the directive is that standard EPC algorithms undervalue Mediterranean building physics. Massive masonry walls provide high thermal inertia, moderating indoor temperatures without mechanical cooling. Italian research on historic palazzi in Apulia found daily temperature swings indoors limited to ±2 °C even when outdoor swings exceeded 12 °C.

The directive does allow member states to adapt benchmarks for “heritage or technically complex” buildings. Italy’s working group on the National Renovation Plan (due 2025) is therefore expected to propose:

• Real-use energy monitoring instead of purely modelled EPCs for pre-1960 masonry buildings.

• “Light-touch” upgrades (HVAC replacement, airtight shutters) instead of invasive external insulation where façades are protected.

• A derogation quota of up to 22 % of dwellings (roughly 2.6 million buildings) eligible for phased or exempt treatment.

If adopted, owners of solid-walled homes might meet compliance through targeted system upgrades rather than costly envelope overhauls.

What’s Next for Italy’s Housing Market?

The Green Homes Directive is not just a legislative milestone. In Italy, where home ownership is tightly bound to tradition, family and local identity, large-scale renovations can feel unsettling. But the directive may offer an opportunity too: to create homes that are healthier, more comfortable and future-proofed against rising energy costs and climate instability.

Italy has until May 2026 to transpose the directive into law, but the clock is already ticking. Between now and then, the country must launch its Renovation Plan, fund public and private upgrades, and coordinate regional efforts.

Ultimately, the success of “Case Green” will hinge on reconciling the undeniable efficiency of Italy’s vernacular architecture with modern decarbonisation goals. Where thermal mass already works, policy should acknowledge it; saving homeowners money and preserving heritage, while still pushing for cleaner heating and renewable power.

Sources:

• EU Legislative Train, “Revision of the EPBD,” 12 Mar 2024.

• Consilium infographic “Fit for 55 – making buildings greener,” 2024.

• European Commission factsheet on buildings’ 40 % energy / 36 % emissions share, 2024.

• ENEA/Siape data on Italian EPC classes, 2024-25.

• Il Sole 24 Ore, 2024, estimate of 1.8 million worst-performing Italian buildings.

• ANSA interview, Pichetto Fratin on flexibility and costs, 2 Jul 2025.

• Corriere della Sera / LaPresse interview, Pichetto Fratin on 2050 horizon, 13 Apr 2024.

• Ediltecnico timeline of EPBD solar-PV mandates, 2024.

• MDPI “Thermal Performance of a Massive Wall in the Mediterranean Climate,” 2020.

• ResearchGate “Thermal properties of vernacular envelopes: Sassi di Matera & Trulli di Alberobello,” 2011.

• Energy & microclimatic performance study, Matera & Alberobello, 2013.

• NT+ Enti Locali article on 22 % derogation quota, 2024.