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Future-proof buildings for energy security and fiscal stability

Ten recommendations for a successful decarbonisation of buildings in the EU

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A Soviet-era housing unit in Szczytno, Poland that has been regenerated with photovoltaic panels and a heat pump system. © Bruno Zanzottera_ParalleloZero

Decarbonising the EU’s building stock is an integral part of Europe’s green transition. Beyond the important contribution to climate action, decarbonising Europe’s buildings will enhance energy security and resilience, foster economic and fiscal stability, strengthen the EU’s competitive advantage in key clean industry sectors, and help improve quality of life for EU citizens. Now, with the political momentum growing, it is the time for EU institutions and member states to implement existing regulations and launch new initiatives to deliver this potential.

Buildings sit at the heart of Europe’s energy system, construction industry, and financial sector. Decarbonising this sector is a pivotal step in meeting the EU’s long-term binding climate targets, and it holds the potential to significantly reduce Europe’s reliance on fossil fuels, contributing to both energy security and fiscal health. Achieving a fast, fair, and well-funded decarbonisation of the EU’s building stock must therefore remain a top priority for both political leaders and infrastructure planning.

The creation of the first-ever European Commissioner for Energy and Housing presents a unique opportunity to integrate policy at the intersection of energy efficiency, energy security, the just transition, and buildings decarbonisation. The new Energy Performance of Buildings Directive (EPBD) offers a crucial framework for member states to mainstream energy efficiency policy, accelerate the deployment of clean technologies, and improve wellbeing for households across Europe.

Further action today to future-proof Europe’s buildings can:

  1. Contribute to energy security and resilience. Decarbonised buildings are fundamental part of the energy security puzzle. Switching to clean heat allows to significantly cut gas consumption and low-carbon technologies can be a test case to embrace circularity.
  2. Enhance macroeconomic stability. Scale up demand side solutions and promote energy efficient buildings can protect public budgets by saving on energy costs and increase disposable income for citizens in the long term.
  3. Use and support the financial system. Upgrading public financial tools and leveraging private resources for investment in the built environment can foster resilience in the real estate & financial markets. Enhance the involvement of financial institutions by offering greater visibility on return from investments and provide necessary data to make informed decisions with customers.
  4. Tap into Europe’s industrial ecosystem for heating, cooling and efficiency and supporting innovation. Acknowledging heating and cooling as an industrial cluster within the Energy Efficiency Ecosystem is a key step to strengthen EU’s competitive advantage and exploit innovation potential at global scale.
  5. Improve Europeans’ quality of life by ensuring widespread access to healthy and comfortable homes. Higher levels of energy poverty and deepened social inequality need to be solved by guaranteeing access to healthy, affordable and energy efficient homes. Member states play a key role in providing adequate measures targeting the most vulnerable parts of the population. 

This report sets out ten recommendations for policymakers to deliver buildings decarbonisation at pace and ensure the transition creates wider social benefits.

Read the full report.

View full-sized PDF here for a larger version of the table.

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