EPBD IV impacts from Finland’s perspective

As the European Union accelerates its climate ambitions through the revised Energy Performance of Buildings Directive (EPBD IV) adopted in May 2024, Finland is stepping up to the challenge. The directive must be transposed into national legislation by May 2026. For Finland’s real estate sector and energy service companies (ESCOs), this marks a pivotal shift—one that brings both regulatory pressure and strategic opportunity.
EPBD IV impacts from Finland’s perspective

The ZEBs new regulations’ concerns and their impacts on EPCs 

Like other EU Member States, Finland will also revise its national legislation to align with the requirements of the EPBD IV.  Three draft decrees have already been published for public consultation, and the deadline for responses was June 15, 2025. The feedback from the consultation is still being reviewed. Together, these drafts define Finland’s requirements for Zero-Emission Buildings (ZEBs) with a direct influence on Energy Performance Certificates and related calculation methods.

First Draft

The first draft decree establishes new energy form coefficients for ZEBs and specifies coefficients for calculating renewable and non-renewable energy. This has raised concerns that energy-inefficient buildings could achieve better energy classes by purchasing renewable energy of certified origin. Specifically, the current draft of the decree assigns relatively favourable coefficients to purchased renewable energy, which, if not carefully balanced with actual building performance, could allow poor-performing buildings to appear more energy-efficient on paper simply by sourcing green-labelled energy. 

Second & Third Draft

The second draft decree outlines requirements for improving the energy performance of buildings through renovations and alterations, detailing E-value equations by building category. The third draft decree presents minimum requirements for ZEBs, introduces stricter E-value thresholds, and presents new calculation methods, including approaches for calculating operational greenhouse gas emissions and renewable and zero-emission energy. It also revises certain values, such as air leakage rate and summer room temperature.

Finland is preparing to amend its national EPC regulations, affecting, among others, the EPC information system, issuer qualification criteria, and the simplified EPC procedure. The drafts are expected to be published for public consultation during the summer of 2025.

Smart Readiness Indicator 

The EPBD IV also emphasises the importance of the Smart Readiness Indicator (SRI). In Finland, the SRI has undergone a comprehensive national testing phase (2022–2024), coordinated by Motiva and funded by the Ministry of the Environment. 

The project demonstrated that while the SRI methodology is technically feasible, it requires adaptation to Finnish conditions, particularly regarding district heating, dynamic building envelopes, and automation systems.

A modified service catalogue was developed to better reflect local building practices, and the testing highlighted the need for clearer guidance and training for assessors. The testing also revealed that SRI assessments can support long-term building maintenance planning, even if immediate actions are rare.

In conclusion, the adoption of EPBD IV brings ambitious measures that will significantly impact the energy performance of buildings in Finland. The introduction of new energy form coefficients, stricter thresholds, and innovative calculation methods will ensure that Finland aligns with the EU’s vision of a zero-emission building stock by 2050.

The Key Stakeholders in the Adoption of the EPBD IV

Real Estate Owners

The EPBD IV introduces transformative changes for the real estate sector across the EU, including Finland. It mandates a shift towards Zero-Emission Buildings (ZEBs) by 2030 for all new construction and sets Minimum Energy Performance Standards (MEPS) to drive deep renovations of the worst-performing existing buildings, targeting 16% by 2030 and 26% by 2033.

Key updates include mandatory solar panel installations on various building types starting from 2027, automation requirements for large non-residential buildings, and enhanced mobility infrastructure such as EV charging stations and bike parking.

Financially, the directive phases out subsidies for fossil fuel boilers by 2025 and introduces compliance risks that could affect property values and financing. However, early adopters investing in energy efficiency and smart technologies stand to gain from increased asset value, reduced operating costs, and stronger market demand.

ESCOs

Energy Service Companies (ESCOs) are emerging as essential enablers of the transition. Their expertise in energy audits, retrofitting, and performance-based contracting makes them uniquely positioned to help building owners navigate the technical and financial complexities of smart energy upgrades.

ESCOs can deliver integrated solutions that improve both energy efficiency and smart readiness—key metrics under the new directive. By bundling services such as building automation, indoor climate control, and real-time energy monitoring, ESCOs not only help boost SRI scores but also reduce operational costs and emissions.

In a market where compliance, sustainability, and digitalisation are becoming increasingly inseparable, ESCOs are not just service providers; they are strategic partners in enhancing Finland’s building stock.

 

This article was drafted by Caverion, SmarterEPC partner

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