Article contribution by Knauf Insulation, proud sponsor of Renovate Europe Day 2025
The European Union is facing multiple crises, many of which have direct ties to the building sector.
One of the most pressing issues is the energy crisis. Responsible for 40% of the EU’s total energy consumption, buildings are Europe’s single largest consumer of energy. This in turn exacerbates Europe’s affordable housing crisis – a crisis that sees many European households spending nearly 20% (and in some cases as much as 40%)[1] of their disposable income on housing expenses, a quarter of which goes to water, electricity, gas and other fuels.
The construction crisis is another dimension. After a post-COVID rebound, investments in construction fell by 2% in 2024[2], driven largely by a downturn in the residential housing segment. Rising interest rates, limited private investments, and increases in material costs have contributed to this. This downturn matters. Accounting for approximately 9-10% of the EU GDP[3], the construction sector is generating significant economic activity and creating millions of jobs. Any decrease in construction activity will inevitably have significant consequences for European competitiveness.
However, because each of these crises have roots in the building sector, they are all interlinked – meaning that if you address one, you can chip away at all three.
The inefficient housing stock in the EU: a massive opportunity
Of Europe’s current building stock fewer than 10% were built in the last decade[4]. Most are old and highly inefficient. But tucked away in this inefficiency is a golden opportunity to reduce energy use, decrease housing costs and boost construction activity.
From quality energy efficiency solutions to energy savings
Renovating a home to be more energy efficient can be as simple as addressing the building’s envelope. According to the Buildings Performance Institute Europe (BPIE), insulating a home’s attic and roof can save up to 14% of residential heating energy[5]. BPIE goes on to note that renovating homes with proper insulation would result in a 44% reduction in the amount of natural gas used for heating. Furthermore, such renovations would ultimately save 45% of the final energy consumption currently used to heat Europe’s residential buildings.
Making our homes more energy efficient would also alleviate pressure on the grid, especially during periods of peak energy demand. According to a report commissioned by the European Climate Foundation, the European Insulation Manufacturers Association (EURIMA) and the International Copper Association, energy efficient home renovations could cut peak heating demand nearly in half by 2050. This would reduce total energy system costs by EUR 312 billion annually. It would also reduce distribution grid investments by EUR 44.2 billion per year[6].
And that’s before adding other energy-efficient solutions such as heat pumps, ventilation products, windows, automation and control systems, and water efficient products.
Benefiting the environment, the construction industry and residents alike
Because energy-efficient homes use less energy, residents pay less. For every €1 invested in energy efficiency, Europeans save an estimated €12 over time[7]. For the more than 40 million Europeans[8] who cannot adequately heat their homes, these improvements can significantly reduce energy poverty while improving health and comfort.
Yet many homeowners still struggle to renovate due to limited information, complex procedures, and high upfront costs. Addressing these barriers is crucial to ensuring that renovations are accessible to all.
This is where one-stop shops are so important. With the recast EPBD, they will be rolled out to provide exactly that support and access to information. One-stop shops are a central repository for all-things relating to home renovations, from conducting an assessment and understanding options to securing favourable financing and putting together the right team of contractors.
A boost for construction and European competitiveness
Such a stable market would be a boon for the construction industry and European competitiveness, creating jobs, stimulating local economic activity, driving demand for energy-efficient materials, and ensuring the sector’s long-term growth.
More energy efficient home renovations would also mean more energy saved, a move that would strengthen the EU’s energy independence and security while also leading to lower energy bills for residents.
Last but certainly not least, an energy-efficient home is also a healthier and more affordable home – demonstrating how home renovations can benefit both residents and the environment, while at the same time enhancing the competitiveness of the construction sector.
[1] Housing in Europe – 2024 edition – Interactive publications – Eurostat
[3] Construction – Internal Market, Industry, Entrepreneurship and SMEs; Facts & Figures – EBC ConstructionEBC Construction
[4] State-of-the-building-stock-briefing_26Ott_v1.pdf
[5] Strategy-paper_Solidarity-and-resilience_An-action-plan-to-save-energy-now-1.pdf
[6] Resources — Your Home Our Future
[7] Energy efficiency awareness – Energy – European Commission
[8] Energy poverty – 42 million people in the EU cannot afford to heat their homes adequately | EESC; Renovation wave