How can corporates work with Europe’s states and regions to drive up deep renovation rates?
Europe needs a renovation revolution. Increased deep renovation rates are key to saving energy, cutting emissions, meeting Europe’s climate goals and safeguarding people’s well-being. Climate Group's Renovation Revolution project brings together companies, sub-national governments and environmental sector NGOs to shine a light on the latest energy efficiency innovations and explore how governments and corporates can scale them up to drive down emissions in European buildings.
In June, Climate Group hosted the Renovation Revolution High-Level Expert Roundtable at our Under2 European Ministerial event in Brussels. We brought together representatives from subnational governments in Europe that are part of Climate Group’s Under2 Coalition, with the corporate partners in Climate Group’s Renovation Revolution project – Carrier, CBRE, Danfoss, PwC, Rockwool, Siemens, Signify, and VELUX.
The opening address of the session, delivered by Climate Group CEO, Helen Clarkson, underscored the urgency required – buildings account for around 40% of energy consumption and 36% of greenhouse gas emissions in the EU, yet renovation rates languish at a mere 1% per year – far below the 2.5% needed to meet net-zero by 2050 according to the IEA.
By bringing the public and private sectors together, Renovation Revolution seeks to overcome the inertia. What’s more, this work can be an example to corporates and subnational governments around the world, showcasing replicable best-practice for driving up renovation rates in regions, states, towns and cities.
With the revised Energy Performance of Buildings Directive (EPBD) recently adopted in the EU, it’s the perfect time to drive greater public-private collaboration in Europe. The EPBD mandates that all buildings be decarbonised by 2050 (with key targets for 2030 also included). Member states need to create National Building Renovation Plans, explicit roadmaps to drive up renovations, and effective implementation of these plans will fall at the local and regional level. In that process, collaboration between companies and subnational governments is key.
Below are some of the reflections and priorities of our Renovation Revolution partners that joined our Expert Roundtable. Our partners detail how the Renovation Revolution project is a catalyst for change around the world, why we must remove the fear of action and inaction, and how corporates can work more closely with a state or region to make its building as energy efficient as possible.
“2030 is knocking on the doors of our under-optimized buildings. If we try to modernise our built environment only in the traditional way at a low renovation rate, it’s almost set to fail. We do still have time to meet the 2030 decarbonisation target, but it means acting fast, operating at scale and leveraging digital solutions. Digital technologies are the most scalable means of accelerating the decarbonisation of our built environment and the quickest and most cost-effective way to start optimising existing systems. We need to remove the fear of action and inaction and join together as industry, government, corporates and investors to support the transition.”
Tobias Huber, Sustainability Officer, Siemens
“Buildings play a significant role in energy consumption and emissions within the EU. Switching from conventional lighting to energy efficient LED lighting can cut energy usage by up to 80%, significantly curbing carbon emissions and lowering utility costs. Additionally, it brings added advantages like improved workplace productivity and well-being. The EPBD provides an opportunity to achieve both energy efficiency and indoor environmental quality (IEQ) for occupants: only if we closely collaborate with Europe’s states and regions to address their local needs, can we achieve on time the building renovation rate required for reaching the Green Deal’s targets.”
Mario Giordano, Global Head of Public & Government Affairs, Signify
“As we move into the implementation phase of the Energy Performance of Buildings Directive, it is critical to engage not just with national governments, but also policy makers at regional and local level. Climate Group’s Renovation Revolution enables this, providing an opportunity to learn directly from regions and municipalities about their realities on the ground. It’s not enough just to increase the rate and depth of renovations, we need to ensure that the work being done puts people first with long-term health and energy savings benefits considered every step of the way.”
Fleming Voetmann, Vice President, External Relations & Sustainability, VELUX Group
“With the revised EPBD, the mandate to renovate especially our worst performing buildings has never been stronger. Now, to make it happen on the ground, local governments and stakeholders must be strongly involved. Initiatives such as the recent roundtable with the Under2 Coalition are excellent opportunities to foster dialogue and sharing of experience. There is so much that can be done to reduce energy consumption and emissions while saving cost in buildings. But still far too little awareness. To change this, we need close collaboration between the public and the private sector, hands-on experience and pragmatic solutions. At Danfoss we stand ready to support with readily available technology and welcome the Renovation Revolution’s initiatives to further spread the word.”
Andrea Voigt, VP, Head of Global Public Affairs, Sustainability and Communication, Danfoss.
At Climate Week NYC in September, we look forward to further discussions on how public and private sector collaboration is key to decarbonising our buildings. In October, we’re launching the Renovation Revolution Handbook, a unique guide which will share insights from this roundtable and the wider research of this project. Watch this space, as we get set to show how corporates and subnational governments can collaborate to drive up stubbornly low European renovation rates. And beyond.
