3 mins
Regenerating cities: The critical role of buildings
" Reaching the goals of 2050 is not an easy scenario. We need to mobilise public and private investments. The European Green Deal Investment Plan will provide around EUR 500 billion from the EU budget, but we will need at least EUR 1 trillion of investment to achieve the desirable neutrality. "
Furthermore, the forthcoming renovation wave will be an opportunity to achieve an energy-efficient and climate-neutral building stock by 2050, as well as to tackle energy poverty and to provide healthy, decent, affordable and energy-efficient buildings where people can reach their full potential, in line with the European Green Deal.
The renovation wave may help to mitigate the impact of the COVID-19 crisis, by supporting workers in small and mediumsized enterprises and fostering high-quality jobs in the construction and renewable energy industries. In addition, the new Energy Performance of Buildings Directive aims to increase the smartness of the future building stock, including its ability to interact with other sectors to generate added value for European citizens.
Measures will include energy building passports and other inspection schemes for heating and cooling systems; support for electro-mobility by introducing minimum requirements for car parks at smaller buildings; use of smart technologies; upgrading of indoor environmental conditions, including indoor air quality; and helping to tackle energy poverty.
From the above, it should be evident that technology and design are at the heart of efforts to enable the built sector to achieve sustainability.
Energy efficiency actions for buildings can be considered significant opportunities to implement cost-optimal solutions. The International Energy Agency has reported that energy savings of 500 Mtoe per year worldwide could be achieved through multiple cost-effective technologies between 2020 and 2050. Moreover, energy renovations and high-performance building construction could reduce the building sector’s energy use by nearly 30% by 2050. Also, a further reduction could be delivered through digitalisation and smart demand-side management in buildings.
Of course, reaching the goals of 2050 is not an easy scenario. We need to mobilise public and private investments. The European Green Deal Investment Plan will provide around EUR 500 billion from the EU budget, but we will need at least EUR 1 trillion of investment to achieve the desirable neutrality. The European Investment Bank Group, in particular, is expected to provide loans, guarantees and financial instruments, such as Private Finance for Energy Efficiency and the Smart Finance for Smart Buildings guarantee facility. Moreover, in that framework, InvestEU is expected to finance small-scale, cost-effective social housing renovation initiatives and services. These funding sources have different mechanisms and requirements, but it is hoped that, through EU investments, private organisations will be encouraged to invest.
" Transforming our buildings means that our cities will be scaled up and regenerated."
Transforming our buildings means that our cities will be scaled up and regenerated. That urban transformation with sustainability benefits that include social, capital and human investments combined with investment in transport and telecommunication infrastructure for sustainable economic development is, in fact, sustainable territorial development. This city regeneration will require not only reusing spaces and reforming buildings but also significant shifts in technology and political regulations such as pricing regimes and tariffs, as well as behavioural changes of users and adopters. The speed at which regeneration can take place is a vital element for consideration.
All in all, the focus should be on how to transform problems into economic, social and technological opportunities to regenerate cities. It’s not an easy task! Reaching the goal will require substantial changes and investment in technical infrastructures, urban physical planning and service provision, which in many cases are local and regional competences. Above all, there is a need for a significant change in consumer behaviour to make the demand for energy, and thus our daily lives, more sustainable.