The European Commission has published its Renovation Wave Strategy to improve the energy performance of buildings. The Commission aims to at least double renovation rates in the next ten years and make sure renovations lead to higher energy and resource efficiency. This will enhance the quality of life for people living in and using the buildings, reduce Europe's greenhouse gas emissions, foster digitalisation and improve the reuse and recycling of materials. 

European policy and funding has already had a positive impact on the energy efficiency of new buildings, which now consume only half the energy of those built over 20 years ago. However, 85% of buildings in the EU were built over 20 years ago, and 85-95% are expected to still be standing in 2050. To achieve 60% emissions reduction target for 2030 and to become climate neutral in 2050, the EU must reduce buildings' greenhouse gas emissions by 60%, their energy consumption by 14%, and the energy consumption of heating and cooling by 18%.

Investing in buildings can also inject a much-needed stimulus in the construction ecosystem and the broader economy. Renovation works are labour-intensive, create jobs and investments rooted in often local supply chains, can generate demand for highly energy and resource-efficient equipment and bring long-term value to properties. By 2030 an additional 160.000 green jobs could be created in the EU construction sector through a renovation wave. This can be very valuable for a sector where more than 90% of the operators are SMEs, hard hit by the economic impact of the COVID-19 crisis. Activity in construction fell by 15.7% in relation to 2019 and energy efficiency investments have dropped by 12% in 2020. Even if a recovery is expected, there is likely to be a lasting impact on the sector. 

Key principles for building renovation towards 2030 and 2050:

• ‘Energy efficiency first’ as a horizontal guiding principle of European climate and energy governance and beyond, as outlined in the European Green Deal and the EU strategy on Energy System Integration, to make sure we only produce the energy we really need; 

• Affordability, making energy-performing and sustainable buildings widely available, in particular for medium and lower-income households and vulnerable people and areas; 

• Decarbonisation and integration of renewables. Building renovation should speed up the integration of renewables in particular from local sources, and promote broader use of waste heat. It should integrate energy systems at local and regional levels helping to decarbonise transport as well as heating and cooling; 

• Life-cycle thinking and circularity. Minimising the footprint of buildings requires resource efficiency and circularity combined with turning parts of the construction sector into a carbon sink, for example through the promotion of green infrastructure and the use of organic building materials that can store carbon, such as sustainably-sourced wood; 

• High health and environmental standards. Ensuring high air quality, good water management, disaster prevention and protection against climate-related hazards, removal of and protection against harmful substances such as asbestos and radon, fire and seismic safety. Furthermore, accessibility should be ensured to achieve equal access for Europe’s population, including persons with disabilities and senior citizens. 

• Tackling the twin challenges of the green and digital transitions together. Smart buildings can enable efficient production and use of renewables at house, district or city level. Combined with smart energy distribution systems, they will enable highly efficient and zero-emission buildings. 

• Respect for aesthetics and architectural quality. Renovation must respect design, craftsmanship, heritage and public space conservation principles.

Europe has now a unique chance to make renovation a win-win for climate neutrality and recovery. The EU’s recovery instrument NextGenerationEU, alongside the EU’s Multiannual Financial Framework, will make available an unprecedented volume of resources that can also be used to kick-start renovation for recovery, resilience and greater social inclusion. Tackling energy efficiency together with accessibility makes buildings more usable and sustainable in the context of an ageing population.

For information on how B2EU Consulting could support your organisation in developing a funding strategy and in unlocking different financing tools for your operation in the green sector, please don’t hesitate to contact us at: info@b2eu-consulting.com.