The European Investment Bank Group (EIBG) positions innovation in construction as a means of increasing the supply of affordable and sustainable housing in Europe. Its strategy combines support for new construction technologies, energy-efficient renovation, and financing for new housing to reduce costs, accelerate project delivery, and lower both the carbon footprint and household energy costs.

The challenge is considerable: 76% of European construction companies do not innovate, and fewer than 7% develop breakthrough innovations. To narrow this gap, the TechEU initiative provides €400 million for research, innovation, digitalisation and manufacturing linked to the housing value chain. Support already covers areas such as sustainable and circular materials, advanced manufacturing and industrialised modular construction, although barriers remain in relation to demand, standardisation, public procurement and digital adoption.