Driving EU competitiveness through efficient buildings

Efficient, flexible, decarbonised, and healthy buildings play a central role in the EU’s economy and net-zero energy system. With the right policy conditions, by 2030 the energy efficiency industry could deliver:

• 18,000 local jobs, for every billion euro invested
• €45bn to €100bn saved on energy bills per year
• 250m tonnes of GHG emissions avoided per year

The roll-out of energy efficiency in buildings is one of the EU’s unsung success stories: Between 2005 and 2022, total GHG emissions from buildings fell by 34% thanks to European standards and legislation (assuming gas being displaced at 651 gCO2/kWh).

The latter enabled a leading industrial ecosystem to develop in the EU. With a yearly turnover of around €850bn and employing 6.5m workers, the EU efficient buildings industry is already a large contributor to the economy, and it is projected to grow significantly in the coming years, as the Fit-for-55 files (FF55) are implemented. Energy efficiency products and solutions are manufactured and installed in the EU. As an example, the industry currently runs around 300 insulation manufacturing sites and 300 heat pump and component manufacturing sites in the EU.

Efficiency-led affordability

The Affordable and Sustainable Housing Plan presents an excellent opportunity to reduce operating costs, enhance living conditions, and empower building owners and tenants across Europe.

With a supportive and stable policy and financing framework, energy efficiency technologies and solutions can be deployed at scale to improve the long-term affordability and comfort of housing in the EU.

Efficient buildings can deliver far-reaching benefits for European households beyond energy savings and decarbonisation goals, in improving their well-being, affordability and availability of housing.

A holistic approach to affordable housing should not be limited to easing the burden of upfront construction costs but also consider operational costs. Energy and water efficiency technologies are already available and can play a central role in resolving the current crisis.

Renovations can also put vacant spaces back on the market and transform them into affordable housing options . Combined with attic extensions, renovations can increase the number of dwellings while avoiding the use of extra land and reducing the cost of works.