A refurbished and improved building stock in the EU will help pave the way for a decarbonised and clean energy system, as the building sector is one of the largest energy consumers in Europe, responsible for more than one-third of the EU's emissions.

Renovation of both public and private buildings is an essential measure in this context, 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. 

The renovation wave will address current low decarbonisation and renovation rates of around 1% across the EU and tackle the underlying barriers for improving the energy efficiency of the EU building stock. Currently, roughly 75% of the building stock is energy inefficient, yet almost 80% of today’s buildings will still be in use in 2050.

Renovation is a major opportunity for economic growth as it provides jobs and boosts the construction sector, which is largely dominated by local businesses, while strengthening Europe’s industrial competitiveness. Building renovation is therefore central to the post-COVID 19 economic recovery, and was specifically referred to in the recovery plan published by the European Commission on 27 May 2020.

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 (LTRS), other aspects of the amending Directive on the Energy Performance of Buildings, and building-related aspects of each Member State’s national energy and climate plans (NECP).