Europe fails to act on energy waste in Recovery and Resilience Plans

Press Release on Study Launch:
Renovate2Recover: How Transformational are the National Recovery Plans for Buildings Renovation?


A major Study by E3G for the Renovate Europe Campaign (REC) analysed the share devoted to energy renovation of the building stock in the National Recovery and Resilience Plans (NRRPs), showing that ambition remains low and that Member States lack foresight for planning beyond 2026. In a moment when increasing energy efficiency is made more urgent than ever because of skyrocketing energy prices, the Plans represent a huge, missed opportunity to significantly lower energy demand.

On its 10th Anniversary, Renovate Europe launched Renovate2Recover, a study undertaken by E3G with input from the Campaign’s National Partners, that shows that the massive funding being made available under the Recovery and Resilience Facility (RRF) is not being used to its full potential. The study sets out 9 recommendations that would allow Member States to implement transformative Plans and meet the Renovation Wave objectives.

With a view to boosting the green transition, Member States were mandated to spend at least 37% of the RRF on climate-related action, with energy renovation encouraged as a flagship component. Among the 18 Member States assessed, the Study found that an average of only 8% is allocated to energy renovation, achieving in most cases only a 30% energy savings, the bare minimum required by the RRF guidelines.

“This unprecedented additional injection of public funds is a golden opportunity to set the EU building stock firmly on the path to achieving its Renovation Wave goals to 2030 and meeting the 2050 climate targets”, said Adrian Joyce, Campaign Director. “But these renovations must be done properly, and the money must be spent well. And for this, we need deep (or staged deep) renovations, going well beyond 30% energy saving”.

In addition to raising the level of expected energy savings, the Study also emphasises the need to invest in the enabling framework to create sustainable renovation markets.

“In the delivery phase, the planned investments must be linked to reforms so that it creates a fertile ground for the renovation market to grow and ‘deepen’ beyond 2026” commented Vilislava Ivanova, the lead researcher at E3G for the Study. “Otherwise, the NRRP investment efforts risk ‘falling off a cliff’ after 2026. Attracting private finance should be prioritised, alongside efforts to build delivery capacity and create synergies with other EU and national funding sources.”

Unfortunately, Member States displayed limited foresight to set up an enabling infrastructure that can coordinate the renovation sector beyond the implementation of the individual measures in the NRRPs.

The Study also highlights the importance of an ambitious regulatory framework at EU-level to complement and drive action from the NRRPs on the ground. The outcome of the Fit-for-55 legislative proposals, all of which would enter into force while NRRP funding is being invested, will be crucial in this respect. For example, the introduction of mandatory Minimum Energy Performance Standards (MEPS) under the EPBD would send a strong signal to the whole renovation value chain, from institutional investors to building users.

The Study covers 18 of the 27 Member States and finds that the total amount they plan to invest in energy renovation is €39.9bn, or 8.4% of the total funding allocation. This percentage varies from a low of just over 3% in Austria to a high of over 16% in Belgium. Looking at the numbers in per capita terms, we see that there is huge variation across the EU with Greece planning to spend €384 per capita on energy renovation and Austria planning to spend just €11 per capita. Proposed investments in energy renovation are concentrated in the residential sector, which receives over €23bn (58%) of funding, with the public sector buildings appearing as the second largest target for investment with close to €13bn (34%).

“Although in their current form, the NRRPS will not be transformational for building renovation, there is still room for Member States to course-correct during the implementation phase”, added Caroline Simpson, Renovate Europe Campaign Manager. “This Study should be seen as a starting point for Member States to put their building stock on the right path to 2030 and 2050, by raising the depth of renovation and planning ahead to create a sustainable renovation ecosystem for the benefit of citizens, businesses and the environment beyond 2026.”

The National Partners of the Renovate Europe Campaign will be vigilant in monitoring the efforts of the Member States and will be involved in reacting to the successive assessments and recommendations that the European Commission will issue on the NRRPs over the period to 2026.

The full Study and all 18 individual Country Profiles can be downloaded here.

ENDS

For more information on the content of the Study, contact:

  • Caroline Simpson – caroline.simpson@euroace.org
  • Vilislava Ivanova – vilislava.ivanova@e3g.org


How to get the best out of the Renovation Wave

12th October 2021 (11:30-13:00 CEST)

In the context of the EU Regions Week on 12th of October 2021, Renovate Europe co-organised together with DG GROW, the JRC and the European Bank for Reconstruction and Development the workshop “How to get the best out of the Renovation Wave”. Policymakers from different levels of governance looked at some of the solutions at hand to improve the implementation of the Renovation Wave: financing instruments to accelerate renovation, technical assistance for practical support, affordability considerations to ensure no one is left behind, and innovative techniques which effectively integrate energy efficiency with climate resilience.

Moderator: Georgios Tsionis, Project officer – scientific research, European Commission – Joint Research Centre, Italy

Speakers:

  • Enrico Rossi, Member of the European Committee of the Regions
  • Gaspard Demur, Team Leader – National renovation strategies and recovery; international cooperation on buildings policy, DG ENER, European Commission
  • Stefania Racolta-Cruceru, Associate Director, Head of EU Green Finance and Climate Analytics, European Bank for Reconstruction and Development
  • Michaela Kauer, Head of the Brussels Office, City of Vienna, Austria

Video Testimonials

  • Valentina Superti, Director, European Commission – Directorate-General for Internal Market, Industry, Enterpreneurship and SME’s, Belgium
  • Adrian Joyce, Secretary General, Renovate Europe, Belgium
  • Hubert Briand, Manager Energy Efficiency of Buildings, Investment Direction, Banque des Territoires, France

Full Workshop


Op-ed: Technical Assistance: the wealth-enabler for buildings (ECEEE)

Published by ECEEE on: 28 September 2021 | With most of the National Recovery Plans approved this summer, attention is turning to the core business at hand: spending the money fast, and properly on building renovations. Technical Assistance will be crucial in driving up the rate and depth of renovations across the EU, making sure we leave no one behind.


Why and How is Technical Assistance the Wealth-enabler for buildings?

Renovate Europe co-organised the webinar “Why and How is Technical Assistance the Wealth-enabler for buildings?”, which took place on Tuesday 28 September 2021 (10:30-11:50 CET) via GoToWebinar.

Historic amounts of funding will be made available through the EU budget (RRF and MFF), and the main buildings-related legislation (EED and EPBD) will be strengthened to deliver on the Renovation Wave goals. Unfortunately, the crucial role of Technical Assistance in delivering renovation schemes is still vastly underestimated.

Technical assistance or capacity building will be crucial in transforming EU objectives into tangible renovation schemes on the ground, and could significantly improve the absorption rates of EU funding across the Member States. It will also be essential in ensuring that renovations schemes are made accessible for the vulnerable.

This webinar, co-organised by Renovate Europe, FEDARENE and Energy Cities, was the opportunity to better understand the importance of technical assistance, through learnings from ongoing programmes but also through examples of funding opportunities, so renovation schemes can deliver better results for citizens, businesses, and the environment.

Agenda

10:30 | Opening remarks: Why technical support is key in driving energy renovations
Adrian Joyce, Renovate Europe Campaign Director (moderator)

10:35 | Learnings from the MFF: How and why to prioritise Technical Assistance in rolling out renovation schemes:
Mathieu Fichter, DG REGIO

10:45 | Applying for EU Technical Support to implement the Renovation Wave
– Technical Support from DG REFORM: Kaspar Richter, DG REFORM
– European City Facility: Stimulating local investments in the energy transition: Mariangela Luceri, FEDARENE

11:05 | Q&A session

11:15 | Making Technical Assistance available at National, Regional and Local level
– Intervention by Peter Schilken, Energy Cities
The contribution of the French Caisse des Dépôts Climate Plan for a Green Recovery and the importance of local technical assistance for building renovation: Caroline François-Marsal, Caisse des Dépôts Group
– The key role of Technical Assistance in the context of the EPBD revision: Jessica Glicker, BPIE

11:35 | Q&A session

11:45 | Wrap-up by Moderator

* A short video showcasing best practices will be shown during the webinar.


Webinar: Why and How is Technical Assistance the Wealth-enabler for buildings?

Renovate Europe is delighted to announce the webinar “Why and How is Technical Assistance the Wealth-enabler for buildings?”, which is taking place on Tuesday 28 September 2021 (10:30-11:50 CET) via GoToWebinar.

Historic amounts of funding will be made available through the EU budget (RRF and MFF), and the main buildings-related legislation (EED and EPBD) will be strengthened to deliver on the Renovation Wave goals. Unfortunately, the crucial role of Technical Assistance in delivering renovation schemes is still vastly underestimated.

Technical assistance or capacity building will be crucial in transforming EU objectives into tangible renovation schemes on the ground, and could significantly improve the absorption rates of EU funding across the Member States. It will also be essential in ensuring that renovations schemes are made accessible for the vulnerable.

This webinar, co-organised by Renovate Europe, FEDARENE and Energy Cities will be the opportunity to better understand the importance of technical assistance, through learnings from ongoing programmes but also through examples of funding opportunities, so renovation schemes can deliver better results for citizens, businesses, and the environment.

Draft Agenda

10:30 | Opening remarks: Why technical support is key in driving energy renovations
Brook Riley, Vice-Chair Renovate Europe (moderator)

10:35 | Learnings from the MFF: How and why to prioritise Technical Assistance in rolling out renovation schemes:
Mathieu Fichter, DG REGIO

10:45 | Applying for EU Technical Support to implement the Renovation Wave
– Technical Support from DG REFORM: Kaspar Richter, DG REFORM
– European City Facility: Stimulating local investments in the energy transition: Mariangela Luceri, FEDARENE

11:05 | Q&A session

11:15 | Making Technical Assistance available at National, Regional and Local level
– The contribution of the French Caisse des Dépôts Climate Plan for a Green Recovery and the importance of local technical assistance for building renovation: Caroline François-Marsal, Caisse des Dépôts Group
– The key role of Technical Assistance in the context of the EPBD revision: Jessica Glicker, BPIE

11:35 | Q&A session

11:45 | Wrap-up by Moderator

* Short videos showcasing best practices will be shown throughout the webinar.


Guide: Applying for Technical Support to Implement the Renovation Wave

What is DG REFORM’s Structural Reform Support?

The Directorate-General for Structural Reform and Support (REFORM) is a new DG within the European Commission with the objective of helping EU countries to design and carry out structural reforms, e.g. when designing and implementing the National Recovery and Resilience Plans. The 2021-2027 long-term EU budget allocated nearly €1 billion to provide this type of tailor-made support, which could also significantly improve the absorption rates of EU funding across the Member States.

How does DG REFORM’s support differ from other available support from the EU?

DG REFORM’s support requires no co-financing from Member States. The support is not designed at the level of individual renovation projects but rather covers wider reforms along the entire process, from preparation and design to implementation.

How does DG REFORM’s support relate to buildings’ renovation?

Under the current call, DG REFORM provides flagship technical support for building renovation targeting EU countries wishing to design reforms implementing the EU Renovation Wave and long-term renovation strategies as well as reforms supporting the deployment of cohesion policy funding (see here).

More generally, DG REFORM offers technical support across a broad range of policy areas, including “sustainable growth and business environment” which handles climate and energy. For example, EU countries could request support for implementing national recovery plans, raising awareness, using innovative finance and digital instruments, and upskilling workers. Find more details on the policy areas concerned here.

Which applications for support have been chosen so far on buildings renovation?

  • Public building energy efficiency plans and energy registry in Greece
  • Energy efficiency awareness raising strategy in the Czech Republic
  • Support on heating and cooling strategy in Slovenia
  • Roadmap for scaling up energy efficiency investments in Hungary
  • Establishing an energy efficiency expert platform in Poland

Find more examples of projects here.

How can I access DG REFORM’s Technical Support Instrument for my country?

  1. National Coordinating Authorities (specific Ministries and National Agencies) of Member States must submit a request to access the TSI by 31 October each year. DG REFORM can assist with the preparatory work before the final request has been lodged.
  2. DG REFORM selects the requests based on pre-defined criteria, and taking into account the expected reform impact and link to EU priorities.
  3. After successful selection, DG REFORM enters into dialogue with the national authorities to start the design and implementation of the projects.

Regional and local authorities are also eligible for technical support from the Commission. They submit their technical support request through their national coordinating authority.

Main contact point for applying for the Technical Support Instrument:
E-mail: REFORM-TSI@ec.europa.eu
Twitter: @EU_reforms