20 Policy Levers to Decarbonise Buildings in Europe

The report identifies a critical need to accelerate building renovations in Europe, noting that approximately 97% of the region's building stock requires upgrades to meet 2050 net-zero targets. It argues that while the EU's 'Fit for 55' package and the Energy Performance of Buildings Directive (EPBD) provide a foundation, additional policy interventions are needed to unlock private capital and overcome financial and non-financial barriers. The document details 20 specific policy levers, including the implementation of Minimum Energy Performance Standards (MEPS), the phasing out of fossil-fuel subsidies by 2040, and the adoption of 'Building Renovation Passports'. It emphasizes the role of green bonds and mortgages, suggesting a voluntary EU-wide definition for green mortgages to improve data collection and risk management. The report also advocates for the electrification of heating via heat pumps over hydrogen blending and highlights the importance of addressing 'Whole Life Carbon' (WLC) in construction.

• A vast majority of Europe's building stock is outdated and requires renovation to meet climate goals, with approximately 65% built before 1980 and an estimated 97% needing upgrades for 2050 net-zero targets.
• The current rate of energy renovations in the EU is very low, with only 1% of buildings renovated annually, leading the European Commission to target a doubling of this rate by 2030.
• There is a significant investment gap for the EU's 2030 objectives, with an estimated extra EUR 275 billion required annually, of which buildings are the largest sector needing additional investment at EUR 142 billion per year.
• The Energy Performance of Buildings Directive (EPBD) agreement mandates that all new buildings be zero-emission by 2030 (public buildings by 2028) and requires the complete phase-out of fossil fuel boilers by 2040, with subsidies ending by 2025.
• The report argues against hydrogen blending for building heating, stating that a 20% hydrogen mix would only reduce carbon emissions by 6-7% and that no reviewed study recommended it as a feasible option.
• The EU Taxonomy's 'Do No Significant Harm' (DNSH) criteria present a challenge for credit institutions due to the high level of specificity and a lack of historical data collection during the mortgage underwriting process.
• The report recommends a voluntary EU-wide definition of green mortgages to ensure banks maintain sustainability data and to encourage the adoption of green loans among 'climate laggards'.
• Building Renovation Passports (BRPs) are proposed as a tool to provide digital data on a building's renovation history and offer tailored recommendations for future steps based on on-site energy audits.
• Whole Life Carbon (WLC) is becoming a critical focus, yet less than 1% of building projects currently calculate and report their full carbon footprint.
• The Italian 'Tax Superbonus' scheme demonstrated the effectiveness of tax incentives, more than doubling energy efficiency investments from USD 23 billion in 2021 to approximately USD 57 billion in 2022.

APA

Blagbrough, C. (2024). 20 Policy Levers to Decarbonise Buildings in Europe. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/20-Policy-Levers-to-Decarbonise-Buildings-in-Europe.pdf

Chicago

Blagbrough, Charlie. 20 Policy Levers to Decarbonise Buildings in Europe. Climate Bonds Initiative, 2024. https://www.climatebonds.net/files/documents/publications/20-Policy-Levers-to-Decarbonise-Buildings-in-Europe.pdf.

Wikipedia

{{cite report |last1=Blagbrough |first1=Charlie |title=20 Policy Levers to Decarbonise Buildings in Europe |publisher=Climate Bonds Initiative |date=April 2024 |url=https://www.climatebonds.net/files/documents/publications/20-Policy-Levers-to-Decarbonise-Buildings-in-Europe.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{blagbrough2024policy, author = {Blagbrough, Charlie}, title = {{20 Policy Levers to Decarbonise Buildings in Europe}}, institution = {Climate Bonds Initiative}, year = {2024}, month = apr, url = {https://www.climatebonds.net/files/documents/publications/20-Policy-Levers-to-Decarbonise-Buildings-in-Europe.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }