Caroline Simpson

Renovating Non-Residential Buildings: A Cornerstone for a Competitive, Affordable and Safer EU

Article contribution by Christina von Westernhagen, Vice President of Efficient Buildings Europe and Senior Director at Johnson Controls International, proud sponsor of Renovate Europe Day 2025

Lowering energy costs in the EU enhances the international competitiveness of European industry, by reducing operating expenses and helping firms compete with producers in countries that benefit from structurally lower energy prices. Reduced energy consumption also stabilises inflation, making the European economy more resilient. Energy is a key input in manufacturing and heating and cooling of buildings. When companies spend less on energy, their production costs drop. Lower costs reduce the need to raise selling prices which slows cost/push inflation. The European Central Bank notes that input cost pressures, especially from gas, have a delayed effect on consumer prices and as those costs moderate, inflation can be tamed.

One of the most overlooked levers for improving affordability of energy, enhancing energy security, and boosting European competitiveness lies in our built environment. Buildings consume about 40% of Europe’s energy. By reducing the energy required for heating, cooling, lighting and daily operations, energy-efficient buildings lower carbon emissions and resource use. This makes them a foundational part of any sustainability strategy. In particular, the renovation of non-residential buildings – offices, schools, hospitals, data centers, factories, and commercial spaces – offers a powerful opportunity to reduce operational costs, cut energy dependency, and unlock new business value. Renovation and efficiency of buildings can also boost high value manufacturing and skilled jobs in heat pumps, insultation materials, smart windows, sensors, controls and digital energy management, renewable integration in buildings, and construction and engineering services.

Energy Efficiency renovations can lead to compelling cost savings: The New Aalborg University Hospital in Denmark for instance saved 80% on electricity compared to it’s previous systems and 500- 700 tonnes of C02 by putting industrial scale heat pumps to work. Buildings in Europe currently account for 36% of greenhouse-gas (GHG) emissions. The hospitality complex ‘The Wings’ in Brussels, Belgium achieved significant energy optimization through upgrades in building automation controls and became the first building in Europe to be tripe-certified as BREEAM EXCELLENT, WELL GOLD and DGNB GOLD.

These buildings represent over 25% of the EU’s total floor space and consume a disproportionately high share of energy, often relying on outdated systems. Renovating them is not just about sustainability, it’s smart economics. Recognizing this, the EU’s revised Energy Performance of Buildings Directive (EPBD) now requires renovating the worst-performing 26% of non-residential buildings by 2033, a milestone that can drive investment, innovation, and job creation across sectors.

Why Focus on Non-Residential Renovation?
These buildings underpin important services. Schools, hospitals, public offices, and transport hubs are the backbone of our daily lives. Making them more energy-efficient improves comfort, as well as financial efficiency. A public hospital, for example, that reduces its heating bill can reinvest those savings into care. An energy efficient school gains control over its long-term energy costs, freeing up budgets for education.

For private companies, building upgrades translate directly into competitive advantage. Energy-efficient commercial spaces lower operating expenses, improve employee productivity, and determine ESG ratings and taxonomy rates. They can also increase investor confidence, and tenant demand. With sustainability now linked to reputation and regulation alike, retrofitting is becoming a strategic imperative, not a discretionary spend.

The technologies needed to deliver this are already mature and available on the market today: heat pumps, mechanical ventilation, building automation and control systems, digital and AI-driven solutions, thermal insulation, lighting, motors, excess heat recovery systems, submetering, and more. Manufacturing and installation of these technologies is driving growth in the EU, with 6.5m jobs having been created to date throughout the building renovation supply chain.

Reversing the trend
Despite the clear business case, several barriers slow progress. From 2016 to 2020, 1 percent of EU buildings were renovated annually, with the rate for non-residential buildings at only 0.6 percent.[1]

Stop-and-go policies and a piecemeal approach to national legislation prevent the sector from scaling up. Financing remains a critical bottleneck, particularly for SMEs and public institutions with constrained budgets. On top of this, fragmented and administratively burdensome permitting systems as well as labour shortages of expert technicians and installers can lead to delays and cost overruns.

However, solutions do exist to translate European targets into tangible projects. Our industry has five key recommendations for the European Commission and Member States, to kick-start the Renovation Wave:

• Insist on the “Efficiency First” principle in public procurements to deliver state of the art public services while substantially cutting taxpayer costs and ensuring they are covered by the State Aid, Net Zero Industry Act and Innovation Fund.
• Delivering a stable, long-term policy framework e.g. focus on the timely and complete implementation of the Energy Performance of Buildings Directive, the Energy Efficiency Directive, starting with ambitious National Building Renovation Plans at the end of 2025.
• Removing unrelated taxes on electricity bills that inflate electricity costs and can represent half and more of the bill. Rebalancing energy taxation to favour energy efficiency and electrification, while protecting energy-intensive industries. This means delivering a strong Electrification Action Plan, implementing the ETS2 and finding a compromise on the Energy Taxation Directive recast.
• Simplifying access to European funding and attracting private financing. In practice, this means complementing the traditional grant-based approach with a combination of loan guarantees, subsidised interest rates, and capital rebates, as well as updating the EU Taxonomy. We also encourage leveraging private sector financing through leasing and performance contracting approaches that require no upfront cost and enable the operational efficiency savings to pay for the technology and upgrade.
• Addressing the skills gap and increasing the workforce e.g. mapping existing skills and anticipating future needs and shortages in the sector as well as ringfencing funds for skills and training.

A Unique Moment for Bold Action
Renovating non-residential buildings reduces vulnerability to shortage of energy supply, strengthens public infrastructure, and positions European businesses to thrive in a greener, more competitive global economy.

The EPBD recast offers the right legislative push, now we need delivery at scale and speed at national implementation level. Some countries are leading the way. France, the Netherlands and regions such as Flanders, have specific schemes setting energy performance standards for non-residential buildings.

This is Europe’s moment to lead by example – in driving a modern, efficient, and resilient economy from the ground up. Renovating the spaces where we work, learn, heal, and innovate is not just about cutting emissions – it’s about investing in our shared prosperity and long-term strength. It is key for Europe’s competitiveness in the long run.

[1] Energy Performance of Buildings Directive

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

[2] Fiec Statistical Report

[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

Connected LED lighting helps sports teams score ambitious sustainability goals—and brings Europe closer to its energy efficiency ambitions

Article contribution by Signify, proud sponsor of Renovate Europe Day 2025

Sports have always had the power to inspire. From the roar of the crowd under dazzling stadium lights to the shared excitement of victory, few events capture the imagination quite like a match in full swing. But behind the spectacle lies an often-overlooked reality: it takes an enormous amount of energy to power game day. Globally, the sports industry accounts for an estimated 0.6% of total emissions, or about 300–350 million tonnes of CO₂e per year which is approximately as much as the entire country of Spain.

In Europe alone, sports buildings represent nearly 10% of annual energy consumption, underscoring the enormous potential for savings through renovation and modernisation. The good news is that technologies to unlock those “negawatts”—the energy saved through taking efficiency measures—already exist, and they’re scaling fast.

The Copenhagen Commitment, a recent pledge from Europe’s energy efficiency and construction industries, reinforces that message. Signatories from across the continent have committed to delivering the products, investments, and skills that will make Europe’s building stock, including its stadiums and arenas, more efficient, affordable, and future-proof. The goal is to cut operational costs, reduce emissions, and secure Europe’s energy future through accelerated renovation.

Connected LED lighting: an effective method of lowering energy consumption
Among the most impactful and immediate steps a sports venue can take is to switch from conventional lighting technologies to connected LED lighting. Lighting typically accounts for a significant portion of a stadium’s energy use, for example the 107,000-seat American football stadium at the University of Michigan consumed approximately 5,400 kWh per hour during home games in 2010. Replacing outdated fluorescent or metal-halide systems with smart, centrally managed LEDs can reduce lighting energy consumption by as much as 80%.

But the benefits go far beyond the meter. Connected lighting systems can adjust illumination dynamically based on occupancy, event schedules, or daylight availability, maximising efficiency without compromising the fan experience. They also enable remote monitoring and predictive maintenance, eliminating the need for on-site troubleshooting while enhancing reliability, which is critical in venues that host millions of fans each year.

These are precisely the kinds of digital, automated efficiency solutions the Copenhagen Commitment highlights as essential to Europe’s clean energy transition. As the pledge states, “energy efficiency products and technologies such as lighting, digital tools, and building management systems are already available and in use.” The challenge now is scale. The lighting industry is ready, and sports organisations are well positioned to lead by example.

From local clubs to global leagues: the momentum builds
Sports organisations are demonstrating how making the switch to connected LED lighting can yield outsized results.

• In Europe, FC Bayern Munich reduced electricity use by 60% at the Allianz Arena with LED façade lighting, avoiding 362 tons of CO₂ emissions annually.
• In the US, the Denver Broncos cut 1.34 million kWh of annual energy use by retrofitting their Mile High Stadium with LED lighting.
• On the global stage, Formula 1 has pledged to reach net-zero by 2030, with racing venues already reducing emissions through the use of LED track lighting and other energy-efficiency solutions.

Driving the energy transition from the sidelines to the spotlight
Renovating stadiums and arenas aligns perfectly with the EU’s drive to lower operational costs and reduce strain on the grid. Improving building performance could save €44.2 billion annually in avoided grid investments. Stadiums, which are high-profile, high-consumption facilities, offer visible and immediate proof of those savings in action.

Each 1% improvement in energy efficiency can also cut gas imports by 2.6%, which is a powerful argument for reducing energy dependence and enhancing resilience.

By integrating connected lighting, advanced controls, and efficient building management systems, the sports sector can contribute meaningfully to Europe’s collective goals while enjoying lower bills, enhanced fan experiences, and improved environmental credibility. It’s a triple win: for climate, cost, and community.

In it to win it
Sports have a unique platform to lead climate action. Every LED upgrade, every connected system, and every efficiency gain sends a powerful message: sustainability is not a sideline issue. It is central to performance.

As half of the buildings that will exist in 2050 have yet to be constructed, including new arenas and training facilities, now is the moment to embed energy efficiency from the ground up. As outlined in the Copenhagen Commitment, clear legislation, predictable financing, and strong partnerships can set the path for the next generation of sports infrastructure to be smarter, cleaner, and more resilient.

The stadiums that host the world’s favorite games can also showcase the way to a net-zero future. The technology is ready. The commitment is in place. Now it’s time to play and win.

Article contribution by Hansgrohe, proud sponsor of Renovate Europe Day 2025

Hansgrohe, a global leader in water- and energy efficient taps and showers, has embarked on an ambitious sustainability transition. Its biggest impact on water conservation, climate protection, and decarbonisation of the building sector will be achieved by focusing on innovative efficiency technologies for hot water use in buildings. The company aims to equip its entire portfolio of taps and showers with water- or energy-efficient technologies by 2030, taking a decisive step toward a more sustainable built environment.

Renovation as a driver of climate action and housing solutions

Buildings are the EU’s largest energy consumer, responsible for around 40% of total energy consumption and 36% of greenhouse gas emissions. A large part of Europe’s buildings are aging; 85% were built before 2000 and three out of four perform poorly in terms of energy efficiency.

Improving the energy performance of existing buildings is therefore key to saving energy and achieving Europe’s climate ambition whilst strengthening the continent’s strategic autonomy, boosting industry’s competitiveness, and enhancing consumers’ purchasing power. Yet, the current annual energy renovation rate remains at only 1%.

The climate crisis is the defining challenge of our time and cutting greenhouse gas emissions lies at the core of the solution. Without large-scale decarbonisation of the building stock, the energy transition and the path to climate neutrality cannot succeed.

Renovation also delivers strong social and economic benefits. Across Europe, thousands of residential buildings remain unused or in disrepair. Revitalising these spaces through sustainable renovation can create urgently needed housing in cities that are facing housing shortages. It can breathe new life into neglected neighborhoods, preserve architectural heritage, and strengthen community identity. Every renovation project represents an opportunity to improve quality of life while contributing to a more sustainable urban future.

Water is a key lever to improve energy efficiency of buildings

Water use is a powerful yet often overlooked driver of energy consumption in buildings. Water heating accounts for around 15% of residential energy use. The less water used by taps and showers, the lower the energy demand and the associated CO₂e emissions.

Water-saving technologies provide a cost-effective and impactful way to reduce the water, energy, and carbon footprint of buildings. Until 2015, the average water consumption of showers and taps respectively amounted to 15.6 liters and 10.2 liters per minute. A recent study commissioned by the German Energy Agency (dena) found that modern water-saving technologies can reduce household energy consumption by up to 6%.

At Hansgrohe, we believe that efficient taps and showers should be the standard choice for any renovation or new construction. That is why we are investing heavily to convert our entire portfolio to water- and energy-saving models by 2030. We are also developing systemic solutions, such as greywater recycling and domestic wastewater heat recovery systems, to drive holistic efficiency in buildings.

Empowering Europe’s renovation wave

The European Union can play an important role in empowering companies that lead the transition toward sustainable renovation and construction. The Energy Performance of Buildings Directive (EPBD) provides an important framework to the decarbonisation of the building sector, but it should be implemented in a way that systematically promotes efficiency technologies while prioritising cost-effectiveness and long-term impact.

The upcoming revision of the Public Procurement Directives also presents a unique opportunity to reward sustainable choices and prioritise green innovation in public procurement. Consistency and coherence across EU initiatives such as the EU Taxonomy and the New European Bauhaus are finally essential for setting clear expectations on sustainable construction and green building certification.

A stable, forward-looking regulatory framework is key to stimulating investment and accelerating Europe’s Renovation Wave.

Today, at Renovate Europe Day 2025, we proudly launched and delivered the Copenhagen Commitment to European Commissioner for Energy and Housing, Dan Jørgensen!

Supported by more than 70 organisations and industries from across Europe’s energy efficiency, construction, and renovation value chain, the Copenhagen Commitment is our united pledge to accelerate the delivery of technologies, investments, products, and skills that will make Europe’s buildings efficient, affordable, and future-proof.

Our sector has already invested billions in new production facilities and we’re ready to do more. This requires close collaboration and regulatory stability to guide investments and planning.

With this commitment, our industry stands ready to:
🏗️ Invest in manufacturing and local jobs
💡 Innovate with integrated renovation solutions
🤝 Collaborate across sectors to scale up affordable building renovation

Our message is clear: Europe already has the technologies, skills, and investment potential to deliver. 

In 2026, the European Commission will present a new post-2030 energy efficiency framework. It is a crucial opportunity to propose objectives that will provide the predictability that our industry requires to plan, invest and deliver at scale.

This milestone reinforces our shared ambition to strengthen Europe’s competitiveness, reduce energy bills, and boost energy security, proving that energy efficiency is Europe’s growth engine.

–

Would you also like to support the Copenhagen Commitment? Click here to send us the name of your organisation and logo.