Conventional Framed Walls
Basement walls must be able to dry. For walls built below grade, drying typically means towards the interior. Adding vapor barriers to control the moisture actually keeps the moisture from being able to dry properly. If placed directly against the masonry wall, an impermeable barrier keeps moisture from being able to dry towards the interior. If installed over the wood frame moisture is trapped inside the wall cavity causing wood to rot and mold to grow.
EPS Structural Insulated Panels
Air barriers or vapor barriers are not required in SIP buildings because properly sealed SIPs create a code compliant air barrier with a permeability rating of less than 1.0 perm. In addition, the foam core of SIPs is solid and continuous throughout the wall, eliminating the convection and condensation issues that can occur in cavity walls above and below grade.