THE RENOVATION WAVE STAKEHOLDERS

Stakeholders

European Commission

EU energy policy, including promotion of energy efficiency, energy saving and the development of new and renewable forms of energy, is a shared competence between Member States and the EU. The European Commission can propose new legislation and create an enabling framework to support building renovations. It is also responsible for monitoring the implementation of EU law, ensuring compliance and enforcement in Member States. It can convene and facilitate dialogue and collaborations amongst the buildings and construction sector. When proposing the strategy for the renovation wave, the European Commission must take the lead in creating the legislative and enabling framework to support building renovation in Europe. This is crucial to ensure that all actors and stakeholders are engaged, mobilised and work together. The European Commission can also contribute to creating a supportive framework to mobilise private investments

Member States

Member States are responsible for implementing EU law, including the Energy Performance of Buildings Directive (EPBD), but they can also adopt national provisions that are more ambitious than what is agreed at EU level. They can create an enabling national framework for building renovation in many different areas, from financing to better skills for the workforce to supportive housing regulations. EU Member States play a crucial role in decarbonising the building sector. Member States are in a prime position to create a supportive financing framework by directly providing public funding and simplifying access to funding, but also by creating the right conditions to mobilise private investments

Local Authorities

• Regions
• Cities
• Municipalities

Local authorities do not share the same definition across EU Member States, nor do they have similar competencies or degrees of autonomy within each country. However, irrespective of the national set-up, building renovation decisions, construction works, or spatial and urban planning have a direct impact on local communities. Local authorities can have influence on these. Local authorities, thanks to their proximity and direct relation with their citizens, play a critical role in unlocking and facilitating building renovation. Local initiatives can greatly contribute to the achievement of national building decarbonisation objectives if actions between the different levels of governance are well aligned and coordinated.

Finance Industry

• Retail and Investment Banks
• Institutional Investors
• Real Estate Funds

The real estate finance sector is traditionally populated by equity and debt providers, including mortgage lenders, public or private companies, pension funds and residential or commercial Real Estate Investment Trusts (REITs). Real estate development and building renovations are notoriously capital heavy. Current mainstream real estate financing is driven and limited by business models focused on commercial returns and prudent lending decisions. Energy efficiency investments will be adopted and actively promoted when they are perceived to add value and reduce risks by the virtue of changing market preferences and regulatory interventions. Financing is the lifeblood of any building project. Investment in housing, commercial buildings and infrastructure represents almost two-thirds of capital investment in the European economy. Around 37% of all commercial property – with a total market value of over €2.6 trillion – is held as an investment, while the value of the European mortgage market represents more than 45% of the EU’s GDP. Bridging these two worlds – the building sector and financing – has the potential to deliver significant energy efficiency improvements and enable the transition to a climate-neutral building stock.

Building Designers and Planners

• Architects
• Engineers

The design of a building, including the selection of materials, has an impact on its entire lifecycle, from construction to demolition. Additionally, these decisions have a clear impact on the wellbeing of building occupants, both in private terms (indoor comfort) and from a social perspective (use of common public spaces, interactions with neighbours). The building design is equally important for new constructions and for building refurbishment projects. The design stage of a renovation project is likely to be the time of greatest aspiration in terms of energy efficiency objectives and environmental quality for both architect and client. As the level of individual understanding and commitment to the sustainability agenda may differ, it is paramount that appropriate targets, tools and benchmarks are identified and fully translated into design. Building designers should plan for renovation projects that create a highly efficient and decarbonised built environment fit for tomorrow’s challenges, including climate adaptation.

Manufacturers

• Materials and Building Components
• Heating and Cooling Equipment
• Ventilation
• Building Automation and Controls

Building material manufacturers produce products and materials used in buildings for specific applications, like insulation or roofing. These components are incorporated into the overall building system. The design, production, operation and disposal of these products and materials have a substantial impact on the performance and carbon footprint of new construction and renovation. Manufacturers of heating and cooling equipment and building automation and controls can substantially contribute to improving building performance by selling highly efficient products and offering comprehensive and innovative services to their customers. The production of building materials is often associated with high energy demand and emissions, mostly provided by carbon-intensive energy sources. The high volumes of material used in the construction sector, including for renovations, make it essential to minimise the environmental and climate impacts of raw materials by fully applying circular economy principles. Building equipment manufacturers (e.g. heating, cooling, ventilation and controls) have a key role to play in the renovation market.

Contracting & Construction Companies

• Large companies
• Micro companies
• Small and Medium Sized Enterprises
• Installers

Construction companies vary greatly both in terms of their size and the type of projects they specialise in. Large companies often focus on commercial buildings and large-scale projects, and small companies on individual residential renovations. 9 95% of construction companies in the EU are  micro enterprises with less than 10 employees. Micro and small enterprises together employ more than half of the construction of buildings workforce. By contrast, the 4,500 largest enterprises employ 11.6% of the total building workforce. Businesses large and small experience similar challenges in terms of shortages of skills to deliver zero-carbon buildings or the need to make the construction process more circular, though the ability of larger businesses to manage such trends should be more developed. The increasing complexity of buildings due to enhanced performance standards and the various technologies used and products installed requires a considerably increased specialisation in the construction phase.

Real Estate Developers

Real estate developers are responsible for managing and coordinating different processes and activities related to buildings. They initiate construction projects, buying land in order to sell or lease the final construction, and carry out renovation of existing buildings, also with the purpose of selling or leasing them. In general, they work very closely with the building designers and construction companies they commission. Real estate developers are key actors in the construction and renovation of commercial and residential buildings. They generally cooperate with many actors along the building value chain and have the capacity to influence the renovation market due to comprehensive building portfolios. Energy auditors, installers, and providers of technical and advisory services very often provide direct advice to building owners, especially of residential buildings, on renovation decisions or replacing components. These professionals are therefore crucial in shaping building owners’ choices and behaviours.

Suppliers of Energy Efficiency Services

• Energy Auditors
• Installers
• Energy Service Companies (ESCOs)
• Providers of Technical and Advisory Services

Energy auditors, installers, energy service companies (ESCOs) and providers of technical and advisory services are most often the gatekeepers of the relationship with building occupants in energy renovation projects. As a result, these professionals have a clear influence on decisions concerning building renovation or building components replacement.

Suppliers of Electricity, Fuels and District Heating

• Power Companies
• Heating Suppliers

Utilities and fuel suppliers provide energy to building users. Building renovations have a clear impact on the quantity and type of energy they can sell to their clients. They also have accurate and granular information and data about their clients’ consumption patterns. To decarbonise the building stock, energy efficiency measures in buildings should be accompanied by the provision of sustainable renewables-based electricity and heating energy. Heating and electricity suppliers can make a clear contribution towards a climate-neutral building stock by being directly involved in building renovation projects.

Building Owners

• Residential Building Owners
• Commercial Building Owners

Real estate markets vary considerably across Europe. Property markets are defined by property type, tenure and jurisdictions, leading to highly different ownership profiles across Europe. Properties have an important use value for businesses and households. Real estate is an investment asset that produces both income and capital growth. Decision-making in residential and commercial real estate markets is influenced by many factors, and investors have different attitudes to risk. However, regardless of tenure and property type, owners determine whether to renovate or dispose of buildings, and how to access funding for renovation (e.g. private savings, loans, government programmes). They should be able to select the renovation depth and delivery method. It is the owner who usually outlines roles and responsibilities, establishes timelines and deliverables, and contractually determines the level of collaboration with trades and contractors. This can be a complex and challenging process, especially for residential owner-occupiers. Greater access to independent and trusted advice and clear information can help sensitise building owners to the importance of building renovation and increase their confidence in energy efficiency measures.

Conclusion

The renovation wave is a unique chance to drive innovation and create new opportunities in the building sector while making European buildings fit for climate neutrality and creating better living conditions for all Europeans. Strong, coordinated action is needed, and each actor must contribute to a successful outcome. The renovation wave will be made up of many components: step-by-step renovations and holistic ones, interventions that target specific segments of the building stock and those that focus on particular areas, sector-wide innovations and tailor-made solutions. All these will need to be accompanied by supportive legislation, enabling measures and appropriate access to funding.

Interventions measures under an energy renovations

An energy renovation can be described in terms of the type of intervention measures undertaken in a building. These can be classified as follows:

Building envelope

• Insulation of external walls, roofs, lofts, floors;
• Replacement of windows, doors;
• Draught proofing; installation of solar shading systems;
• Employment of natural ventilation techniques, passive solar heating or cooling techniques

Building technical systems

• Replacement of inefficient boilers with condensing gas boilers;
• Improvement of mechanical ventilation, air-conditioning, lighting, auxiliary systems;
• Installation of heat recovery system; 
• Improvement of emission/distribution systems of technical systems (e.g. pipework insulation);
• Installation of building controls;
• Installation of micro cogeneration systems;

Renewable heat generation systems

• Biomass boilers;
• Thermal solar systems;
• Ground, water, air source heat pumps

Renewable electricity generation systems

• Photovoltaic systems
• Micro wind generation systems
• Micro-hydro systems

Other energy-related measures

• Energy efficient and smart appliances