The document discusses how to refurbish all buildings in the EU by 2050 to reduce greenhouse gas emissions and energy consumption. It identifies four main trade-offs around accelerating and deepening refurbishment rates, timing of refurbishments, reducing energy use vs converting to electricity vs renewable energy. Reaching targets will require significantly increasing both refurbishment rates and depth across countries. Policy options discussed include market facilitation, public support and regulatory instruments like performance standards and incentives to guide decisions. National targets and action plans as well as EU-level standards and certificates are recommended.

1. How to refurbish all buildings by 2050
FSR Annual Brussels Conference
November 13, 2012
Leonardo Meeus

2. Background
THINK Report #7
“How to refurbish all buildings by 2050“
(Published in June 2012)
Project leader:
Péter Kaderják
Research team:
Leonardo Meeus,
Isabel Azevedo,
Péter Kotek,
Zsuzsanna Pató,
László Szabó,
Jean-Michel Glachant
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3. How to refurbish all buildings by 2050
Introduction
Why buildings?
• 36% greenhouse gas emissions within the EU
• 40% of final energy consumption within the EU
Why refurbishment?
• Target is to have low carbon buildings by 2050
• Most of the buildings that are around today, will still be in 2050
Why THINK?
• What are the trade-offs?
• What are the policy options?
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4. Trade-offs in building refurbishment
Introduction
First trade-off
• Accelerate renovation of the building stock
• Refurbish buildings
Second trade-off
• Refurbish more buildings
• Refurbish buildings more ambitiously (i.e. “deeper”)
Third trade-off
• Do more now
• Do more later, i.e. wait for technological developments
Fourth trade-off
• Reduce energy consumption of buildings
• Convert to electricity
• Integrate renewable energy generation
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5. Trade-offs in building refurbishment
Main findings
• Need to significantly increase both refurbishment “rate” and “deepness”
• “Deepness mix” will continue to exist
• Significant differences between different member states
• In terms of building stock and usage of these buildings
• 600-1800 billion euro to be invested
• Most of it expected to come from private building owners and users
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6. Policy options
Introduction
Market facilitation
• Improving the awareness of market players
• Market organization
Public support
• Financing mechanisms
Regulatory instruments
• See next slide
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7. Regulatory instruments
Analytical framework
PRICE incentives
Guides actors towards the right decisions
DECISION TO MATERIALS PERFORMANCE
REFURBISH PRODUCTS REFURBISHMENT USAGE
Prevents Rewards/punishes
Prompts
wrong right/wrong
action
decisions decisions
Regulation of Regulation of Regulation of
ACTORS INPUTS OUTPUTS
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8. Policy options
Main findings
Market facilitation
• Not enough to reach the target because expected investments that are
beneficial for society, are not economical for private actors
Public support
• Not enough to reach the target because massive investment needed in a
context with strong public budget constraints
Regulatory instruments
• Required, if we take the target seriously
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9. Regulatory instruments
Role of EU institutions
Ensuring commitment at national level
• National building refurbishment targets
• National building refurbishment action plans
Facilitating the implementation of regulatory instruments
• See next slide
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10. Regulatory instruments
Recommendations for EU institutions
Price incentives
• Abolish end-user regulated prices for electricity and gas
• Internalize the cost of carbon into the building refurbishment decisions
Regulation of inputs
• Continue to widen and strengthen technology standards and labeling of
building refurbishment technology, products and materials
Regulation of outputs
• Create an EU energy performance certificate scheme for buildings
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11. Regulatory instruments
National energy performance certificate schemes for buildings
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12. Recommendation
Bonus
Berlaymont
Constructed
1963
Renovated
1991-2004
Henri Spaak
Constructed
1990
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13. Room for discussion?
leonardo.meeus@eui.eu
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