EBO 3 Is Coming: The Key Principles Are Becoming Clear. Is Your Business Ready?

What is changing, and what preparations can your company already make today?

The current Energy Policy Agreements will expire at the end of 2026. A new period is planned to start on 1 January 2027, with EBO 3 as their successor.

The Flemish Government has meanwhile published the first draft texts. These are not yet final and may therefore still change. Nevertheless, the main principles are becoming clear: revised profitability criteria for energy-saving measures, greater flexibility in investment decisions, and a continued focus on structural energy management.

Companies that start preparing today will be better positioned to respond quickly and effectively to the new requirements.

What Do We Know About EBO 3 So Far?

1. More Companies May Fall Within the Scope of EBO 3

One of the proposed changes is a reduction in the participation threshold from 100 TJ to an average annual final energy consumption of 85 TJ. This would make more energy-intensive companies eligible to participate in EBO 3.

For companies that currently fall just outside the scope, it is therefore worth checking whether they would meet the proposed threshold.

2. New Profitability Criteria for Energy-Saving Measures

An important change concerns the assessment of profitable energy-saving measures.

According to the current draft texts, a uniform internal rate of return (IRR) of at least 11% after tax would become the applicable profitability criterion.

The calculation methodology would also change, taking into account factors such as thematic investment deductions, the lifetime of investments, technology-specific parameters, and avoided ETS costs, including ETS2.

What does this mean in practice?

Companies can reassess their existing energy plans and determine which measures should be prioritised, taking into account the revised profitability assessment and their own investment planning.

3. Greater Flexibility in Energy-Saving Investments

Not every profitable energy-saving measure fits equally well within a company's investment schedule or long-term strategy.

The draft texts therefore provide, under certain conditions, the possibility of replacing specific measures with alternative projects. This would give companies greater flexibility to align their investments with their broader energy and decarbonisation strategies.

However, any replacement measure must meet specific requirements. Eligible alternatives could include:

• A non-profitable energy-efficiency measure that achieves equivalent energy savings.
• Waste heat recovery and supply to a third party, delivering an equivalent amount of energy.
• A CO₂-reduction measure or carbon capture, utilisation and storage (CCUS) project that achieves at least twice the CO₂ savings of the original measure.

According to the draft texts, this replacement option would apply to profitable measures with an IRR of at least 11% and a payback period of more than three years.

What does this mean in practice?

Companies could replace certain profitable energy-saving measures with alternative projects that better align with their investment plans or decarbonisation strategies. The alternative must, however, comply with the prescribed energy-saving or CO₂-reduction requirements.

The exact conditions still need to be confirmed in the final regulations.

4. Structural Energy Management Remains Essential

Another key priority is structural energy management.

Mapping energy consumption, monitoring energy performance, and demonstrating the savings achieved will remain important components of the new agreement.

The draft texts further develop the requirements for energy management systems, with ISO 50001 and the proposed alternative approach set out in Annex 6 being particularly relevant.

For companies, this means that it remains important to look beyond a one-off energy audit.

A well-designed energy management system helps companies to:

• Systematically monitor energy consumption and significant energy users.
• Identify deviations and new energy-saving opportunities more quickly.
• Track energy performance indicators (EnPIs).
• Demonstrate the impact of implemented energy-saving measures.
• Embed energy efficiency into day-to-day business operations.

Companies that already have a well-organised energy management system in place will have a significant advantage when EBO 3 comes into effect.

5. Energy Efficiency Remains Central, with Greater Attention to Climate Neutrality

Energy efficiency remains the primary focus of EBO 3. At the same time, the draft texts also address the broader climate transition of businesses.

For companies covered by the EU Emissions Trading System (ETS), a climate roadmap is envisaged to map out opportunities for long-term CO₂ reduction. This could include process electrification, waste heat recovery, and the use of renewable energy.

The climate roadmap provides companies with a long-term strategic perspective, but does not, in itself, create a binding obligation to implement the measures it contains.

The specific obligations under EBO remain focused on the energy-efficiency measures included in the energy plan.

Should You Wait for the Final Regulations? Not Necessarily.

Although not all the details are known yet, companies do not need to sit back and wait.

On the contrary, several preparatory steps make sense today, regardless of the precise content of the final agreement.

Four Steps You Can Take Now

1. Map your energy consumption.

Which processes and installations account for the largest share of your energy use? Do you have sufficiently reliable measurement data?

2. Review your existing energy plan.

Which measures have already been implemented? Which are still planned? And which would benefit from a new profitability assessment?

3. Evaluate your energy management system.

Do you have the right processes, responsibilities, and monitoring systems in place to track energy performance consistently?

4. Look beyond energy efficiency alone.

Which projects could also contribute to your company's future climate objectives?

By taking these steps today, your company can not only prepare for EBO 3 but also start realising tangible energy savings sooner.

Enprove Helps You Prepare for EBO 3

The exact details of EBO 3 still need to be confirmed, but one thing is clear: structural energy management and a well-founded approach to energy savings will remain essential.

At Enprove, we closely monitor developments surrounding EBO 3.

We support companies in developing and updating energy plans, identifying profitable energy-saving measures, and implementing energy management systems.

With our energy monitoring software, Enelyzer, we also help businesses gain insight into their energy consumption and track savings over time.

Would you like to know how your company can start preparing for EBO 3 today?

Schedule a no-obligation consultation with one of our energy experts. Together, we will assess your company's current position and identify the steps that already make sense.

This blog is based on the available draft texts for EBO 3. The final provisions may still change.

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