Achieving society-wide decarbonisation within the EU has remained at the top of the European agenda for several years, with increased provisions to account for climate solutions in the European Green Deal and associated recovery measures. The publication of the REPowerEU plan underscores the importance of demand reduction and future-proofing the European building stock. The plan calls for demand reduction, diversifying fossil fuel supply and accelerating the transition to renewable energy by 2027. Given the ambitious timeline in conjunction with existing European climate objectives, increased ambition, innovation and speed will be needed to achieve the goal to gain independence from Russian gas and further the European agenda of decarbonisation.

There is substantial potential within the building sector to achieve emissions reductions, while also future-proofing the building stock through renovation. However, innovative solutions are needed to increase the speed at which such gains can be achieved. One promising solution is industrial prefabrication for renovation, the construction method involving the production and design of structural building components or units in a factory environment, which are then installed on site, rather than being constructed on site. In some cases, industrial prefabrication can decrease construction time by 20-50% and thus associated disruption, as well as create significant energy and cost savings.

However, despite current innovations in technology and process, significant innovation drivers and preconditions are needed to ensure the feasibility of implementing industrial prefabricated solutions. These include:

• The continued use and development of digitalisation, including facilitating building information modelling (BIM) solutions.
• Stability of the supply chain and adequate manufacturing facilities capable of supplying necessary components efficiently.
• Tailored financing solutions.

European, national and local action is needed, as well as support from private investors, banks, housing associations and industry. The following report outlines the technological and process innovations needed to facilitate the uptake of industrial prefabrication solutions in renovation throughout Europe to meet climate goals, reduce energy demand and contribute to future-proofing the building stock.