Caroline Simpson

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.

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

As we enter the delivery phase of the energy transition, renovating buildings must be at the heart of our strategy. This will cut utility bills for households and businesses, create local jobs, boost competitiveness, and reduce our dependence on energy imports. Renovation must be a clear priority in both EU policies and the EU budget.

The upcoming Multiannual Financial Framework (MFF) will be the financial backbone supporting the EU’s energy transition. The Renovate Europe Campaign advocates for a simpler, larger, and more accessible budget to meet the energy efficiency goals set by the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED).

The primary source of EU funding for energy renovation, the Recovery and Resilience Facility, is set to end in 2026. Remaining Cohesion Funds and the Social Climate Fund (SCF) are expected to only partly compensate for it. With an investment gap estimated at €150 billion per year, the Commission and Member States must prioritise energy renovations in the future EU budget and develop new tools to unlock private finance to meet Europe’s targets for efficient buildings.

To ensure continued progress, the Renovate Europe Campaign calls on the European Commission to:

➢ Dedicate increased EU funding to deliver efficient buildings

• Extend the deadline of the Recovery and Resilience Facility (RRF) to 2028
• Support the implementation of National Building Renovation Plans through the MFF and SCF
• Mainstream the energy efficiency first principle in the European Competitiveness Fund
• Address the non-financial barriers to energy renovations (information, skills, permitting)

➢ Unlock private finance for energy renovations

• Stimulate private investments through EU funds and guarantees
• Facilitate the use of public-private partnerships and blended finance to increase the renovation rate
• Encourage the emergence of new tools to unlock private funding (Renovation Loans, Mortgage Portfolio Standards)

➢ Simplify the EU’s energy efficiency budget lines

• Address the fragmentation of funding opportunities by adopting a policy-based Multiannual Financial Framework with a dedicated line for energy-efficient buildings
• Simplify the application process for EU funding through the harmonisation of conditions and eligibility requirements. Many of the funding possibilities remain untapped because of significant bureaucratic hurdles.
• Develop a robust monitoring and evaluation system to track the impact of renovation investments on energy savings, emissions, and job creation

➢ Improve the absorption rate of EU funds

• Prioritise the implementation of Fit for 55 legislations in the allocation of EU funds
• Empower competent authorities (regions/cities) to elaborate local investment plans including EU funds
• Raise awareness and communicate on funding opportunities
• Provide technical assistance through the ELENA mechanism and the Technical Support Instrument

With Europe’s building stock responsible for 36% of the continent’s CO2 and 40% of its energy use, energy efficient building renovations are a Member State’s ticket to achieving the 55% reduction in emissions that the EU requires by 2030.

This is particularly true for Central and Eastern European countries where, according to the EU Building Stock Observatory, there are 43.6 million single- and multi-family homes – not to mention thousands of schools, hospitals, and office buildings. As two-thirds of these homes were built over 30 years ago, many have leaking windows, walls and roofs and outdated heating and lighting systems – meaning that these buildings are grossly inefficient and have a high carbon footprint.

However, it’s not just the environment that suffers from this inefficiency. Citizens do too, as an inefficient building often means higher energy bills and lower levels of comfort.

Renovating Europe is a daunting task. It’s also a necessary one. But with the right solutions and the right partners, it’s a task that is very much within reach. As Knauf Insulation Eastern Europe & Middle East General Manager Radek Bedrna said during his remarks at Renovate Europe Day 2024 in Budapest: “We need to work together to make buildings and housing affordable for citizens – especially for our children and future generations – and this work starts with energy efficient home renovations.”

The good news is that energy efficient building renovations can benefit both the environment and citizens.

The even better news is that doing so isn’t overly complicated.

The benefits of the right solutions

According to a 2022 Building Performance Institute Europe (BPIE) report, improving the energy performance of the building envelope 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.

The BPIE report also looks at the positive impact properly insulating homes would have within different EU countries. Germany, for instance, stands to cut its buildings’ final energy consumption nearly in half (47%) and save 331.7 TWh. In Poland, that number would be 39%, whereas Romania would achieve a 56% final energy savings – the highest potential savings in the study.

When looking at gas savings, Italy, Slovakia and Romania see the highest savings at 49%, 53% and 56% respectively. Whereas France and Slovenia would see a significant reduction in oil-supplied heating energy, Poland would lower its coal-supplied heating by 49%.

What these numbers show is that regardless of energy source, improving insulation decreases fossil fuel use and, in doing so, reduces Europe’s energy dependency and carbon footprint.

Even greater savings can be unlocked by integrating complementary energy-efficient solutions on top of insulating and replacing windows—such as upgrading heating and cooling systems and using smart energy management. By combining these approaches, we can maximise efficiency, further decrease reliance on natural gas imports, and accelerate the shift toward a more sustainable and resilient energy future.

Ensuring insulation delivers on its energy saving promise

But why stop there when we have the potential to do even more?

Maximising a home’s energy efficiency starts with the right solutions—not just in insulation but in ensuring real energy savings. This means reliable methods for measuring efficiency, effective renovation strategies, and strong collaboration with decision-makers, contractors, and homeowners. In fact, in Hungary, Knauf Insulation provided input into the country’s Home Renovation Programme, an ambitious initiative that aims to renovate 20,000 single-family homes, calling for a 5-7 year predictability to allow the industry to adapt and deliver necessary energy bill savings to even more households.

The opportunity is here — let’s get to work and renovate Central and Eastern Europe’s buildings together!