Buildings are responsible for approximately 40% of EU energy consumption and 36% of the greenhouse gas emissions. Buildings are therefore the single largest energy consumer in Europe. At present, about 35% of the EU’s buildings are over 50 years old and almost 75% of the building stock is energy inefficient. At the same time, only about 1% of the building stock is renovated each year. Renovation of existing buildings can lead to significant energy savings, as it could reduce the EU’s total energy consumption by 5-6% and lower CO2 emissions by about 5%.
Source: European Commission
Investments in energy efficiency stimulates the economy, especially the construction industry, which generates about 9% of Europe’s GDP and directly accounts for 18 million direct jobs. SMEs in particular, benefit from a boosted renovation market, as they contribute more than 70% of the value-added in EU’s building sector.
The building sector is crucial for achieving the EU’s energy and environmental goals. At the same time, better and more energy efficient buildings improve the quality of citizens’ life while bringing additional benefits to the economy and the society.
A renovation wave for Europe
Refurbished and sustainable buildings in the EU will help pave the way for a decarbonised and clean energy system, since buildings are one of the largest sources of energy consumption in Europe, responsible for over a third of EU emissions. But only 1% of buildings undergo energy-efficient renovation every year, so effective action is crucial to making Europe climate-neutral (net zero emissions) by 2050. Currently, roughly 75% of buildings in the EU are not energy efficient, yet 85-95% of today’s buildings will still be in use in 2050.
Renovating both public and private buildings is an essential action, and has been singled out in the European Green Deal as a key initiative to drive energy efficiency in the sector and deliver on objectives.
To pursue this dual ambition of energy gains and economic growth, in 2020 the Commission published a new strategy to boost renovation called “A Renovation Wave for Europe – Greening our buildings, creating jobs, improving lives”.
This strategy aims to double annual energy renovation rates in the next 10 years. As well as reducing emissions, these renovations will enhance quality of life for people living in and using the buildings, and should create many additional green jobs in the construction sector.
Source: European Commision
With nearly 34 million Europeans unable to afford to heat their homes properly, renovation also tackles energy poverty. It can address the health and well-being of vulnerable people while reducing their energy bills – as outlined in the Commission recommendation on energy poverty, also part of the renovation wave strategy.
In parallel to the strategy, the Commission has adopted new rules for the ‘smart readiness of buildings’. Specifically, a new smart-readiness indicator aims to promote digital-friendly renovation, integrate renewable energy and enable measurement of actual energy consumption.
The renovation wave initiative will build on measures agreed under the ‘Clean energy for all Europeans’ package, notably the requirement for each EU country to publish a long-term building renovation strategy, other aspects of the Directive on Energy Performance of Buildings, and building-related aspects of each EU country’s national energy and climate plans.
Source: European Commission
