The European Union faces a pressing challenge in decarbonising its residential building stock, with over 75% of homes deemed energy inefficient. Despite existing directives and initiatives, the current renovation rate remains critically low. To meet the 2030 energy efficiency targets and achieve climate neutrality by 2050, the EU must significantly accelerate deep renovations across Member States.

The report estimates that an average annual renovation rate of 5.1% is required, which is significantly higher than the current national plans. Achieving this would demand an investment of approximately €4.72 trillion by 2030. The strategy calls for a shift from shallow upgrades to deep, cost-optimal renovations, targeting heating, cooling, and domestic hot water systems. It also highlights the need for harmonised national targets and robust monitoring frameworks.

To support this transformation, the authors propose a comprehensive EU investment strategy built on three pillars: identification and prioritisation of inefficient buildings, provision of tailored information through One-Stop Shops, and motivation of homeowners via financial and non-financial incentives. Special attention is given to vulnerable households, social housing, and district-level renovation schemes.

The report concludes that public funding alone will not suffice. Mobilising private capital, training a skilled workforce, and streamlining renovation processes are essential. With coordinated action across all levels of governance, the strategy promises not only environmental benefits but also improved living conditions, reduced energy poverty, and economic growth through job creation in the construction and energy sectors.