- Introduction
The recent decisions of the Council of State (CoS) have delineated, conceptually and substantively, the content of the provisions of the New Building Regulation (NBR). According to the Council of State, the State is obliged to institute tools that promote sustainable development with respect for the local and specialised urban-planning regime applicable in each case. At the same time, our country’s response to the objectives of the European Green Deal remains a major desideratum, since the policy choices in this direction will determine both the overall mix of measures and the extent to which social groups will be affected. In this light, the institution of targeted measures for the energy upgrading of buildings, combined with an analysis of European best practices, constitutes an imperative need, particularly for economically vulnerable households. In the context of the present study, and following this jurisprudential precedent – which highlighted the concern as to the necessary weighing, inter alia and in particular, of energy upgrading, environmental protection, the acquired urban-planning status (acquis) and rational urban planning – it becomes clear that there exists a responsibility on the part of the State to establish a clear and coherent framework. The institution of an integrated mechanism for the measured granting of urban-planning incentives for the benefit of energy and environmental upgrading cannot remain vague or fragmentary.
On the contrary, what is required is the formation of a coherent system that takes into account national needs as well as local particularities, ensuring consistency with urban planning and with the constitutional imperatives of Article 24. At the same time, the State has an obligation to align itself with contemporary developments in the European legal orders, in order to shape an effective tool for analysing and understanding the different legal systems, with a view to systematising and rationally applying urban-planning incentives in national law, thereby forming a stable and functional framework for the transition to a more sustainable and resiliently built environment, in accordance with the European directions and the best practices applied in other EU Member States. This approach can draw on successful spatial-planning models that have been implemented in European countries, such as the incorporation of energy-upgrading incentives into urban-planning tools, the use of urban-planning “bonuses” for sustainable development, or the promotion of urban regeneration on the basis of environmental and social criteria, as presented below. Alignment with such standards will ensure that urban-planning incentives in Greece do not operate in a fragmentary manner, but as part of an integrated strategy consistent with the European objectives for the green transition and sustainable development. The need for legal clarity and legal certainty is crucial both for the formation of coherent public policies and for attracting investments that promote sustainable development. The creation of a framework that safeguards environmental protection and the upgrading of the built environment, serving the constitutional principle of sustainable urban planning, constitutes a necessary step in this direction. In the context of the above, the present study sets out – following detailed research into the European framework for the energy performance and upgrading of buildings – the legal framework of European countries (Germany, France, Austria, Italy, Switzerland), with specific reference to the incentives and urban-planning provisions relating to the energy efficiency and environmental sustainability of buildings.
- The research at European level
In many countries of the European Union, various – primarily economic – incentives are provided to promote energy upgrading, such as tax exemptions and subsidies.
These incentives are usually horizontal, that is, they apply at national level, irrespective of the specific project or area, with the aim of boosting investment in energy efficiency. In Greece, programmes such as “Exoikonomo” (“I Save”) provide financial support for energy-related interventions in buildings. An important feature of the legislation in the legal orders examined is the existence of incentives of an urban-planning nature that permit interventions aimed at increasing the environmental and energy quality of buildings.
In certain cases, derogations from urban-planning rules are provided for, such as an increase in the building coefficient, the floor area and the height of buildings, especially in urban areas with limited possibilities for expansion or in areas facing degradation. Examples of such derogations are applied in countries such as France, Italy, Austria and Switzerland, and of course Greece, as already analysed. Overall, the legislative frameworks in Europe for the energy upgrading and sustainability of buildings combine horizontal measures and specific urban-planning provisions. This combination allows for the creation of an integrated and sustainable strategy that adapts to local needs, while at the same time ensuring that common guidelines and standards exist for the promotion of energy efficiency and sustainable development at national and European level.
2.1. Germany
Energy demand in the building sector, especially in Germany, is of decisive importance for the achievement of greenhouse-gas emission-reduction targets, in accordance with the Federal Climate Protection Act (Bundes-Klimaschutzgesetz, or KSG). The building sector accounts for a large proportion of total final energy demand, and efforts to reduce emissions have focused on energy efficiency and the increasing use of renewable energy sources. The Buildings Energy Act of 2020 (GEG) consolidates previous regulations and sets strict limits on the primary energy demand of new and existing buildings, requiring improved energy performance through insulation and the integration of renewable energy sources. These requirements are aligned with Germany’s broader climate plans to reduce emissions by 65% by 2030. German urban-planning legislation allows for the promotion of climate-protection and energy-efficiency measures, providing both municipalities and developers with tools to implement such measures. The Federal Building Code (BauGB), through Article 248, gives municipalities the possibility of incorporating climate-protection rules into their urban plans, allowing exceptions from building regulations on energy-efficiency grounds, such as the installation of solar panels, provided that the deviations are compatible with the interests of neighbours and with architectural culture. This allows developers to install renewable-energy systems, such as photovoltaics, even where they deviate from local regulations or restrictions. In addition, the formerly applicable Article 24 of the Energy Saving Ordinance (EnEV) provided for the possibility of approving derogations from the general urban-planning regulations, provided that the energy-performance objectives were achieved through alternative measures. The legislation therefore provides flexibility, ensuring that climate-protection projects can proceed while the interests of the community and the aesthetics of the urban environment are taken into account. Through the combined action of laws, urban-planning regulations and economic incentives, Germany aims at significant improvements in the building sector in order to achieve its ambitious climate targets.
2.2. France
France, within the EU framework, has set ambitious targets for achieving carbon neutrality by 2050, with an intermediate target of reducing greenhouse-gas emissions by 40% by 2030 (compared with 1990 levels). Its legislation encourages the improvement of the energy performance of buildings, although the protection of the right to property limits the imposition of mandatory renovations. Thanks to its constitutional culture, French legislation has developed a set of mechanisms that are supposed to contribute to achieving the carbon-neutrality target by 2050. Principally, there are energy-compliance rules applicable to new and renovated buildings, which are checked in the context of issuing building permits; while, recently, buildings in specific economic sectors have been affected by obligations to renovate or to build in a specific manner within a short period of time, and owners have been required to renovate residential buildings that do not meet energy-consumption targets if they wish to let them on the rental market. The “Loi Grenelle I” and “II” laws (2009 and 2010) laid the foundations for the energy transition, while energy-performance legislation, such as the “Loi Climat et Résilience” (2021), strengthens energy-efficiency measures and sets strict standards for renovations, buildings and the tertiary sector. The latter aims to accelerate the ecological transition in French society and economy, introducing strict conditions for the leasing of real estate. In particular, it prohibits the leasing of dwellings that do not meet specific energy-performance criteria and requires certain buildings to incorporate energy-generation systems and green roofs, as well as to provide shaded open-air parking with solar collectors. An important element of the law is Article 202, which offers urban-planning incentives for planting within the urban fabric, allowing public and private bodies to occupy public space free of charge for planting actions, provided that the actions are of public benefit and have no profit-making character. The free granting of the permit depends on the approval of the municipality and on compliance with urban-planning, environmental and cultural-heritage regulations. Overall, this article promotes urban vegetation and environmental development in cities, encouraging the participation of bodies in green actions without financial burden. The French Urban Planning Code (Code de l’Urbanisme), as the legal framework regulating the formation and development of the urban-planning environment in France, constitutes the fundamental basis for urban planning, defining the procedures and conditions concerning the siting and urban development of buildings, and includes several examples of urban-planning incentives towards the energy upgrading and neutrality of buildings. Initially, in the context of the analysis of incentives and energy upgrading, the French Urban Planning Code includes provisions favouring the installation of renewable-energy equipment. According to Article 111-16, exceptions are made to urban-planning rules that could hinder the development or use of renewable materials or processes that reduce greenhouse-gas emissions, while building permits cannot prevent the use of renewable materials or devices, including those installed in parking areas. In addition, Article R.111-23 of the Code specifies particular materials and processes that fall within the category of renewables, such as wood and biological materials used on the façade or roof, energy-generation systems from renewable sources for domestic consumption, rainwater-recovery equipment, heat pumps and solar shading. The provision of Article L-151-28 of the Code introduces an incentive to increase the volume of buildings, with the aim of enhancing environmental and energy superiority. More specifically, for buildings that meet the criteria of energy or environmental superiority, the increase may reach 30%.
This provision aims to promote sustainable constructions and the use of renewable energy sources. However, under Article L-151-29, for protected areas or areas of cultural heritage, the excess is limited to 20%, in order to safeguard aesthetic and environmental value. In addition, the total excess limit may not exceed 50%. Furthermore, Article L-151-29-1 provides for an additional derogation of +5% where the project serves the public interest; while, following the enactment of the aforementioned articles, decrees were published specifying the criteria required for constructions to benefit from these provisions, with the aim of achieving energy and environmental superiority. Subsequently, Article L152-5-2 allows constructions with environmental superiority to deviate from the height restrictions applicable under the local urban-planning rules, particularly in areas in need of environmental improvement; and Article L. 152-5 of the law enables the competent authority to approve derogations for insulation and for the installation of renewable energy sources in existing buildings, with respect for the architectural heritage. Indeed, Article L. 152-6 provides that, in municipalities with a population of more than 50,000 inhabitants, exceptions to the building rules may be made in order to promote social mix and the creation of open spaces. These derogations potentially allow an increase in the height and density of constructions, encouraging sustainable development; while provision is made for an additional 15% exemption from the rules on the size of buildings that contribute to the quality of the residential environment, and projects of public interest may benefit from an additional 5% exemption. Overall, these provisions aim to ensure quality of life and to adapt the building stock to the challenges of climate change. Subsequently, Article L. 171-4 of the Construction and Housing Code provides that certain buildings, or parts thereof, must incorporate renewable-energy-generation processes or green systems, with the obligations applying to new buildings of more than 500 or 1,000 square metres depending on their use, and to extensions or renovations of existing buildings. In general, urban-planning rules are laid down by the regulatory legislator, and municipal authorities may issue urban plans or derogations therefrom only with express legislative authorisation. One example is Paris, which is developing a bioclimatic local plan to promote energy efficiency and renewable energy sources, with a zero-carbon target by 2050.
2.3. Austria
The energy performance of buildings is fundamental to Austria’s climate policy, which aims to reduce CO2 emissions and promote sustainable development. Federal legislation promotes the use of renewable energy sources, the mandatory renovation of buildings and the securing of high energy-performance standards, while federal and local bodies cooperate through financial incentives and tax relief to support the transition to energy-efficient buildings. Specifically, the Federal Energy Efficiency Act (EEffG) establishes mandatory energy-saving targets, especially for public bodies and large enterprises, and encourages the adoption of energy-management systems; while local urban-planning rules allow municipalities to lay down detailed building regulations, with urban-planning interventions requiring compliance with local plans. In Austria, the governments of the federal states (Länder) have the power to implement green initiatives through planning and spatial-planning regulations. Building codes and planning regimes include requirements for energy performance, the use of renewable energy sources and sustainable building materials, focusing on the reduction of environmental impacts. The recent amendment of the Vienna Building Code (BO für Wien) includes significant provisions for climate protection, restrictions on short-term leasing, and other innovative changes. Among the most critical changes are the following: Installation of Greenery and Thermal Insulation: The focus is on facilitating the installation of greenery and thermal insulation in existing buildings, allowing a height exceedance of up to 15 cm for roof plantings. For buildings constructed after 1 January 1945, a total height exceedance of up to 45 cm is permitted. Photovoltaic Systems: The construction of photovoltaic systems of up to 15 kWp does not require approval, facilitating their integration into new buildings. Increased Obligation to Use Solar Sources: The obligation to generate solar energy for new residential buildings has been doubled to 1 kWp/150 m². Obligation to Install Photovoltaics: New residential buildings and their extensions must now install photovoltaic units. In addition, Article 69 offers new opportunities to the construction sector, as it allows deviations from the development plan (that is, urban-planning derogations) for projects serving climate protection and adaptation to climate change, which will be feasible provided that they meet specific conditions, such as not degrading neighbouring plots, preserving the local image and not burdening monuments. Specifically, it is provided that deviations may be made if they contribute to more appropriate land uses, to the preservation of old buildings and to support for climate protection.
2.4. Italy
Italy has adopted energy-efficiency strategies and policies over the past decades, harmonised with the directives of the European Union and with climate targets. Its energy-policy framework focuses on reducing energy consumption, promoting renewable sources and reducing carbon emissions. The National Energy and Climate Plan (NECP) for the period 2021-2030 seeks to reduce energy consumption by 43% and to raise the share of renewable energy sources to 30% of final energy consumption by 2030, as well as to reduce emissions by 33% in the sectors outside the Emissions Trading System. To implement the Energy Performance of Buildings Directive, Italy introduced Legislative Decree 192/2005, which requires the Energy Performance Certificate (APE) in cases of new construction, major renovations and property transfers. The APE provides information on energy performance and must be renewed after works affecting the performance of the building. Legislative Decree 199/2021 strengthens energy performance, requiring renewable energy sources to cover at least 60% of energy consumption for hot water and other needs in new and fully renovated buildings as from June 2022. For public buildings, this percentage is increased by 5%. Building-permit applications for new and renovated buildings must demonstrate compliance with this requirement. Turning to regional legislation, Regional Law No. 18 of 26 November 2019 of Lombardy introduces measures to simplify and promote urban and territorial regeneration, encouraging projects aimed at the restoration and reuse of existing buildings rather than expansion onto undeveloped land. It also provides incentives for energy efficiency, seismic reinforcement and the upgrading of environmental standards. Under Article 3 of the law, the maximum building coefficient may be increased by up to 20% for interventions promoting environmental upgrading and the reduction of energy needs. These interventions include the creation of social housing, the improvement of building safety, the sustainable management of water and the use of green roofs. At the same time, municipalities have the possibility – for the purpose of “regenerating” areas and restoring abandoned and degraded buildings that constitute a potential building or environmental hazard – to plan restoration interventions, benefiting from incentives for an increase in building rights and, specifically, an increase in the building coefficient of between 5% and 20%. These provisions aim to improve quality of life and to promote sustainability in urban areas, creating favourable conditions for energy efficiency and environmental upgrading. Law No. 16 of 4 October 2018 of Piedmont incorporates measures for the reuse and regeneration of buildings, similar to those of Lombardy. The aim of the law is urban regeneration and the improvement of degraded areas, focusing on social, environmental and cultural needs. It includes incentives for the renovation and reconstruction of buildings, emphasising sustainability and the creation of public spaces, the improvement of mobility and the development of green infrastructure. Municipal authorities have the discretion to identify buildings for upgrading interventions, and the proposed improvements aim to enhance the architectural, structural and energy quality of buildings, while incentives such as increases in volume and floor area are provided directly for buildings intended for residential or tourist use. Overall, the law promotes sustainability and the restoration of buildings, improving quality of life and the economic viability of the areas, while contributing to energy upgrading and the implementation of the European Green Deal. Regional Law of Veneto No. 14/2019, within the framework of the “Veneto 2050” programme, aims to improve quality of life and to reorganise urban spaces through sustainable practices and the circular economy. The law promotes the renovation of the existing building stock, with emphasis on the use of renewable energy sources and the reduction of land consumption. It also includes actions for the demolition and reconstruction of degraded buildings. Building interventions allow the extension of existing buildings by up to 15% under conditions of energy performance and the use of renewable sources. The extension may reach 40% upon compliance with specific criteria. Similarly, upgrading interventions allow an increase in volume of up to 25% for total demolition and reconstruction, with the possibility of an increase of up to 60% under conditions.
2.5. Switzerland – Geneva
In the context of the present analysis, and although this is not an EU country, such that the direct transposition of energy- and environmental-sustainability directions for buildings would be expected, it is worth mentioning the planning advantage arising from the increase in the land-use ratio in the canton of Geneva on grounds of energy sustainability. Usually, in Geneva, the footprint of a building in a single-family-dwelling zone may not exceed 25% of the plot area.
However, the permissible footprint of buildings may be increased upon compliance with specific energy standards. Specifically, if a building complies with the HPE standard (Haute Performance Énergétique), the buildable area may be increased by 27.5%, while if it meets the THPE standard (Très Haute Performance Énergétique), this increase may reach 30%. These percentages also apply to renovation projects that meet one of these standards. In summary, these energy standards were introduced by new provisions in the Energy Act in 2016 (Article 11), and must be submitted to the competent authority before the commencement of building works of construction, renovation or addition, towards the issuance of the relevant building permit. As regards the urban-planning incentive referred to above, specifically, Article 59 of the Act on Buildings and Installations of the Canton of Geneva provides that the building ratio in single-family-dwelling zones may not, as a rule, exceed 25% of the plot area. However, this ratio may be increased to 27.5% where the building complies with the Haute Performance Énergétique (HPE) standard, and to 30% where it meets the Très Haute Performance Énergétique (THPE) standard. The same increases also apply to renovation projects, giving owners an incentive to implement more energy-efficient solutions. In areas of intensive development, the building ratio may reach up to 60% of the plot area, provided that the THPE standards are met and approval is granted by the competent authorities. This flexibility facilitates the development of large-scale projects that contribute to sustainable urban development. At the same time, these provisions also apply to basements, allowing an increase in their area of up to 24%, provided that the corresponding energy-performance standards are met. These provisions were incorporated into the Energy Act of 2016, with the aim of promoting sustainable development through compliance with high energy standards. The possibility of increasing the permissible building constitutes a significant incentive for adapting constructions to contemporary environmental requirements, ensuring harmony with the character of the areas and contributing to energy saving. Ultimately, Geneva’s strategy for promoting energy performance through urban-planning incentives constitutes an example of a modern and innovative approach that combines environmental sustainability with the optimisation of land use. The implementation of these policies creates significant opportunities for more sustainable urban development, offering incentives to owners and developers to invest in energy-efficient solutions.
2.6. Conclusions
Legislation on the energy and environmental upgrading of buildings in Europe, as well as in Greece, mainly comprises a combination of horizontal measures, with the approval of the competent authority (the equivalent of Greece’s Building Services) and, on occasion, the authorisation to incorporate the horizontal incentives and “derogations” into lower-level urban plans (as in the case of Austria) or into decisions of the competent municipal authority (as in Italy). In attempting to codify the relevant legislative provisions into categories, the following emerge: Category 1: Provisions of a general nature: This general category includes provisions of legislation mainly at the level of Framework Laws (e.g. Germany’s Climate Act) and of a general character, which set objectives for achieving climate neutrality and from which a more general intent of the legislator emerges towards the promotion of energy performance and environmental sustainability in the building sector. Category 2: Provisions on the promotion of energy performance, technical directions, tax relief and subsidies: Towards the transposition of the Energy Performance of Buildings Directive (EPBD), in all the states examined, national legislation requires the issuance of an Energy Performance Certificate (EPC) for buildings, which is necessary for the sale, lease or financing of energy-related interventions. The EPC results from an inspection of the building and is a precondition for compliance with the minimum energy-performance standards. In addition, the preparation of energy studies and the assessment of the energy performance of buildings is required in the event of leasing or sale, while many pieces of legislation require compliance with energy standards or protocols overseeing energy performance during the design of new projects or the renovation of existing buildings, as well as the conduct of technical studies and assessments of energy performance prior to the approval of upgrading projects. All the legal orders provide for, and introduce, general incentives (e.g. tax exemptions, subsidies) applicable at national level to increase the energy performance of buildings. Category 3: Specific incentives of an urban-planning nature for interventions in the building sector aimed at increasing environmental and energy quality: In certain cases, the legislation provides for horizontal measures concerning the increase of the building coefficient, the floor area, the volume, the height, and in general the approval of derogations from urban-planning rules (France, Italy, Vienna, Geneva), or the addition of derogations/exceptions to the relevant urban plan (Austria), in order to strengthen energy efficiency and environmental sustainability and to increase open, public spaces and greenery within the urban fabric. Overall, the legislation on the energy upgrading and environmental sustainability of buildings in Europe combines elements of horizontal implementing measures with requirements for the design and incorporation of incentives into urban plans or into decisions of the competent urban-planning authority, in order to ensure an integrated and sustainable approach to the energy and environmental quality of the building stock. This approach allows strategies to be adapted according to local needs and conditions, while at the same time maintaining certain stable institutional – horizontal – lines for the promotion of sustainable development. The provisions referred to, which are of interest to the present analysis, show that the EU Member States adopt a variety of measures and incentives to promote energy efficiency and sustainable development. The increase of the building coefficient, the buildable area and the height of buildings often forms part of these incentives, which are granted by way of derogation from the general urban-planning provisions, especially in areas with high population density, limited possibilities for horizontal expansion, degraded areas or abandoned building complexes. Finally, indeed, the body responsible for approving the incentive/derogation is the local authority competent for issuing the building permit (corresponding to the Greek Urban Planning Services, YDOM), which carries out the preventive review as to the fulfilment of the conditions laid down by the horizontal legislative provision, and, where appropriate, also taking into account the opinions of other services (e.g. archaeological councils, architectural committees, etc.).
Epilogue
Weighing is a complex process and indeed requires a forward-looking perspective which must also take into account the legal urban-planning regime of our country, the manner and time in which we built our cities, under what framework, under what conditions and with what vision. The wholesale transfer of foreign examples is of no benefit. For the first time, with clarity and legislative honesty, it is necessary to record the problems of our system and, drawing ideas from the examples of the European area, to incorporate provisions that respond to the contemporary principles of sustainability and, of course, to our constitutional principles.
The present constitutes a targeted summary of a legal study drafted in the context of the proceedings on the constitutionality of provisions of the New Building Regulation (NBR) before the Plenary Session of the Council of State (Decisions 146-9/2025 of the Plenary CoS). The full study was submitted to the Council of State as a document accompanying the views of the Ministry of Environment and Energy on 04.10.2024.