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Renovation Wave: Doubling the renovation rate to cut emissions, boost recovery and reduce energy poverty

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The European Commission has published its Renovation Wave Strategy to improve the energy performance of buildings. The Commission aims to at least double renovation rates in the next ten years and make sure renovations lead to higher energy and resource efficiency. This will enhance the quality of life for people living in and using the buildings, reduce Europe's greenhouse gas emissions, foster digitalisation and improve the reuse and recycling of materials. By 2030, 35 million buildings could be renovated and up to 160,000 additional green jobs created in the construction sector.

Buildings are responsible for about 40% of the EU's energy consumption, and 36% of greenhouse gas emissions. But only 1% of buildings undergo energy efficient renovation every year, so effective action is crucial to making Europe climate-neutral by 2050. With nearly 34 million Europeans unable to afford keeping their homes heated, public policies to promote energy efficient renovation are also a response to energy poverty, support the health and wellbeing of people and help reduce their energy bills. The Commission has also published today a Recommendation for member states on tackling energy poverty.

European Green Deal Executive Vice-President Frans Timmermans said: “We want everyone in Europe to have a home they can light, heat, or cool without breaking the bank or breaking the planet. The Renovation Wave will improve the places where we work, live and study, while reducing our impact on the environment and providing jobs for thousands of Europeans. We need better buildings if we want to build back better.”

Energy Commissioner Kadri Simson said: “The green recovery starts at home. With the Renovation Wave we will tackle the many barriers that today make renovation complex, expensive and time consuming, holding back much needed action. We will propose better ways to measure renovation benefits, minimum energy performance standards, more EU funding and technical assistance encourage green mortgages and support more renewables in heating and cooling. This will be a game changer for home-owners, tenants and public authorities.”

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The strategy will prioritize action in three areas: decarbonization of heating and cooling; tackling energy poverty and worst-performing buildings; and renovation of public buildings such as schools, hospitals and administrative buildings. The Commission proposes to break down existing barriers throughout the renovation chain – from the conception of a project to its funding and completion - with a set of policy measures, funding tools and technical assistance instruments.

The strategy will include the following lead actions:

  • Stronger regulations, standards and information on the energy performance of buildings to set better incentives for public and private sector renovations, including a phased introduction of mandatory minimum energy performance standards for existing buildings, updated rules for Energy Performance Certificates, and a possible extension of building renovation requirements for the public sector;
  • ensuring accessible and well-targeted funding, including through the ‘Renovate' and ‘Power Up' Flagships in the Recovery and Resilience Facility under NextGenerationEU, simplified rules for combining different funding streams, and multiple incentives for private financing;
  • increasing capacity to prepare and implement renovation projects, from technical assistance to national and local authorities through to training and skills development for workers in new green jobs;
  • expanding the market for sustainable construction products and services, including the integration of new materials and nature-based solutions, and revised legislation on marketing of construction products and material reuse and recovery targets;
  • creating a New European Bauhaus, an interdisciplinary project co-steered by an advisory board of external experts including scientists, architects, designers, artists, planners and civil society. From now until summer 2021 the Commission will conduct a broad participatory co-creation process, and will then set up of a network of five founding Bauhaus in 2022 in different EU countries, and;
  • developing neighbourhood-based approaches for local communities to integrate renewable and digital solutions and create zero-energy districts, where consumers become prosumers selling energy to the grid. The strategy also includes an Affordable Housing Initiative for 100 districts.

The review of the Renewable Energy Directive in June 2021 will consider strengthening the renewable heating and cooling target and introducing a minimum renewable energy level in buildings. The Commission will also examine how the EU budget resources alongside the EU Emissions Trading System (EU ETS) revenues could be used to fund national energy efficiency and savings schemes targeting lower income populations. The Ecodesign Framework will be further developed to provide efficient products for use in buildings and promote their use.

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The Renovation Wave is not only about making the existing buildings more energy efficient and climate neutral. It can trigger a large-scale transformation of our cities and built environment. It can be an opportunity to start a forward-looking process to match sustainability with style. As announced by President von der Leyen, the Commission will launch the New European Bauhaus to nurture a new European aesthetic that combines performance with inventiveness. We want to make liveable environments accessible to everyone, and again marry the affordable with the artistic, in a newly sustainable future.

Background

The COVID-19 crisis has turned the spotlight on our buildings, their importance in our daily lives and their fragilities. Throughout the pandemic, the home has been the focal point of daily life for millions of Europeans: an office for those teleworking, a make-shift nursery or classroom for children and pupils, for many a hub for online shopping or entertainment.

Investing in buildings can inject a much-needed stimulus into the construction sector and the macro-economy. Renovation works are labour-intensive, create jobs and investments rooted in often local supply chains, generate demand for highly energy-efficient equipment, increase climate resilience and bring long-term value to properties.

To achieve the at least 55% emissions reduction target for 2030, proposed by the Commission in September 2020, the EU must reduce buildings' greenhouse gas emissions by 60%, their energy consumption by 14%, and the energy consumption of heating and cooling by 18%.

European policy and funding has already had a positive impact on the energy efficiency of new buildings, which now consume only half the energy of those built over 20 years ago. However, 85% of buildings in the EU were built over 20 years ago, and 85-95% are expected to still be standing in 2050. The Renovation Wave is needed to bring them up to similar standards.

More information

Renovation Wave Strategy

Annex and Staff Working Document on the Renovation Wave Strategy

Memo (Q&A) on the Renovation Wave Strategy

Factsheet on the Renovation Wave Strategy

Factsheet on the New European Bauhaus

Energy poverty recommendation

Annex and Staff Working Document on the Energy Poverty Recommendation

Renovation Wave webpage

Energy Poverty webpage

 

Asbestos

Asbestos protections could save 90,000 lives a year

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Responding to the result of the vote in the European Parliament on the Villumsen report on protecting workers from asbestos, ETUC Deputy General Secretary Claes-Mikael Ståhl said: “Nobody should die because of their job. Yet more than 100,000 people still lose their lives every year in Europe from work-related cancer and asbestos is responsible for more than half of those deaths.

“Construction workers, miners, firefighters and waste disposal workers have been among those most likely to develop lung cancer because of contact with asbestos, but the widespread use of the material in buildings means many teachers and office workers have also died.

“This silent killer has been tolerated for too long so trade unions are relieved the European Parliament has supported protections which could save up to 90,000 lives a year following a campaign led by the EFBWW and we call on the Commission and Council to put them into action as soon as possible. The Commission removed the asbestos from its own offices in the mid-1990s so it’s not right the problem should still be tolerated at other people’s workplaces.

“This is a vital first step towards ending the scandal of work-related cancer. But there are still no workplace exposure limits for 23 high-risk cancer-causing substances, while limits for another 27 carcinogens are often still far too high to protect workers from cancers which can be fatal or cause reproductive problems. It’s time for the Commission to match its rhetoric on combating cancer with action.”


Letter sent by European trade unions to MEPs

ETUC position on the EU strategic framework on health and safety at work 2021-2027

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Defence

Essential infrastructure: New rules to boost co-operation and resilience

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Civil Liberties Committee MEPs endorse new rules to better protect essential services like energy, transport and drinking water.

With 57 votes in favour and six against (no abstentions), the Committee adopted its negotiation position on new rules on EU critical infrastructure entities. MEPs are aiming to better protect essential services (e.g. energy, transport, banking, drinking water and digital infrastructure) by improving member state resilience strategies and risk assessments.

Climate change is included as a potential source of disruption of essential infrastructure, and cyber-security is seen as an important aspect of resilience. As services are increasingly interdependent, the reformed directive requires local authorities to set up a single point of contact responsible for communicating with other jurisdictions. It also creates a new Critical Entities Resilience Group to facilitate communication between stakeholders, with Parliament participating as an observer.

MEPs push for broader scope, more transparency

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MEPs want to see more transparency when disruptions happen, requiring critical entities to inform the general public about incidents or serious risks. They also want to make sure that member states can provide financial support to critical entities, where this is in the public interest, without prejudice to state aid rules.

The Civil Liberties Committee proposes to widen the definition of essential services, so that protecting the environment, public health and safety, and the rule of law are also mentioned.

To make cross-border co-operation frictionless, MEPs finally want service providers to be considered “of European significance” if they offer similar services in at least three member states.

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After the vote, rapporteur Michal Šimečka (Renew, SK) said: "Critical entities provide essential services across the EU, while facing a growing number of both man-made and natural threats. Our ambition is to strengthen their ability to cope with risks to their operations while improving the functioning of the internal market in essential services. We are expected to deliver on a Europe that protects and that means also bolstering the collective resilience of the critical systems underpinning our way of life."

Background

The European Critical Infrastructure (ECI) directive currently covers only two sectors (transport and energy), whereas the reformed directive would expand this to ten (energy, transport, banking, financial market infrastructures, health, drinking water, waste water, digital infrastructure, public administration and space). At the same time, the new directive introduces an all-hazard risk approach, where the ECI was largely focused on terrorism.

Next steps

Before negotiations with the Council can start, the draft negotiating position will need to be endorsed by the whole house in a future session.

Further information 

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Climate change

Climate change: Raise global ambitions to achieve strong outcome at COP26

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The Environment Committee calls on all countries to implement a green recovery and increase their 2030 climate targets in line with the Paris Agreement.

Ahead of the UN COP26 Climate Change Conference in Glasgow from 31 October to 12 November 2021, on Tuesday the Environment, Public Health and Food Safety Committee has adopted its input to the COP26, with 60 votes for, 15 votes against and three abstentions.

In their resolution, MEPs express concern that the targets announced in Paris in 2015 would result in warming well above three degrees by 2100 compared to pre-industrial levels. They say that the EU must remain a world leader in the fight against climate change and that MEPs will work to ensure that the EU’s “Fit for 55 in 2030” climate package is fully in line with the Paris Agreement.

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To accelerate the pace of climate action, MEPs wants the EU to support a five-year timeframe for all countries instead of the current ten-year plan. They also say that all direct and indirect fossil fuel subsidies should be phased out in the EU by 2025 and call on all other countries to take similar measures.

MEPs recall that biodiversity plays a crucial role in enabling humans to combat and adapt to global warming and stress that nature-based solutions are win-win solutions, ones which involve protecting, restoring and sustainably managing ecosystems.

G20 must lead the way

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MEPs say that all G20 nations should show global leadership and commit to achieving climate neutrality by 2050 at the latest. They also call on the Commission to create an international climate club with other major greenhouse gas (GHG) emitters with the aim of setting common standards and raising ambition across the globe through a common carbon border adjustment mechanism.

They welcome the return of the US to the Paris Agreement and President Biden’s commitment to cut US GHG emissions in half by 2030 compared to 2005. MEPs expect concrete policy measures and financing to meet this goal.

While MEPs acknowledge China’s willingness to be a constructive partner in global climate negotiations, it is concerned with the country’s dependency on coal and underlines that China’s climate targets should cover all GHG emissions and not only carbon dioxide emissions.

More financial support to fight climate change

MEPs say that developed countries must deliver on their promise to raise at least $100bn in climate finance per year for developing countries, increasing that amount from 2025, when emerging economies should also start to contribute. A roadmap outlining each developed country’s fair contribution to this financing plan should be agreed. They also want to ensure that all developing countries can participate in COP26 in spite of COVID-19.

Next steps

The resolution will be voted by all MEPs during the plenary session 18-21 October.

A delegation from Parliament led by Pascal Canfin (Renew, FR) will be in Glasgow from 8-13 November.

Background

Parliament has been pushing for more ambitious EU climate and biodiversity legislation and declared a climate emergency on 28 November 2019. In June 2021, the European Climate Law was adopted by Parliament. It transforms the European Green Deal’s political commitment to EU climate neutrality by 2050 into a binding obligation for the EU and member states. It also increases the EU’s target for reduction of greenhouse gas emissions by 2030 from 40% to at least 55%, compared to 1990 level. In July 2021, the Commission presented the “Fit for 55 in 2030” package in order to enable the EU to reach the more ambitious 2030-target.

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