New EU law on Emissions will Have Big Financial Impact on its Citizens

The European Union’s recent move to outlaw both gas and coal fires in homes within a little over 15 years has sparked controversy and concerns about the financial implications for property owners. This regulation, passed by the European Parliament in collaboration with the European Council, aims to reduce emissions and energy consumption in buildings, with buildings currently accounting for a significant portion of energy use and emissions.

However, the decision has faced opposition, particularly from Poland’s conservative party (PiS), which argues that it will lead to housing and energy poverty. PiS members of the European Parliament have criticized the ruling left-liberal coalition in Poland for supporting the measure, warning that it will make housing more expensive and inaccessible for ordinary Poles.

MEP Patryk Jaki expressed concerns about the affordability of properties, suggesting that they will be bought up by foreign investment funds, leaving Poles economically disadvantaged. Former Polish Prime Minister and MEP Beata Szydło echoed these sentiments, emphasizing the potential consequences of the directive on millions of Poles and Europeans, foreseeing poverty and the loss of homes.

The new regulation aims to achieve carbon neutrality in the building sector by 2050, promoting the renovation of existing buildings and the construction of new carbon-neutral structures. Member states are mandated to reduce energy consumption by 16 percent by 2030 and further by 20 to 22 percent by 2035.

To meet these targets, member states must renovate a percentage of high-emission buildings by specific deadlines, including the installation of solar panels on public and new domestic buildings. Additionally, by 2040, the directive requires the complete decarbonization of heating systems, eliminating the use of fossil fuels for heating or cooling purposes. Subsidies for boiler systems powered by fossil fuels will be prohibited from the following year, further incentivizing the transition to cleaner energy sources.