The European Committee of the Regions urges the European Commission and Member States to establish easier and faster financing mechanisms for local and regional authorities to undertake renovation projects.

The European Committee of the Regions (CoR) has unanimously adopted an opinion on the Renovation Wave , the EU's plan to upgrade the energy performance of Europe's building stock. Accounting for 40% of Europe's energy consumption and 36% of greenhouse gas emissions (GHG), the renovation of buildings is key for the EU to reach climate neutrality by 2050. Cities and regions call for a revision of state aid schemes, more flexible budget rules to maximise investments and renovations, subnational targets for the renovation of buildings and the integration of renewable energy sources in renovation projects.

It is estimated that between 34 and 50 million European citizens suffer from energy poverty. The CoR opinion on the Renovation Wave includes a proposal to the European Commission and Member States to calculate energy poverty at the subregional level.

While 75% of existing buildings in the EU are considered energy inefficient, only 1% currently undergo renovation each year. It is estimated that the Renovation Wave can create an additional 160 000 jobs in the construction sector by 2030.

Together with the decarbonisation of the transport sector and the greening of cities, the renovation of the EU's building stock is a key Green Deal priority. Not only due to its potential ability to reduce both energy use and CO2 emissions, but also as a driver for sustainable growth and job creation. The construction sector is the largest generator of jobs per million euros invested ( IEA 2020 ).

The Renovation Wave was launched on 14 October 2020 through the European Commission Communication 'A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives' . It is a key pillar of the European Green Deal roadmap .

The Renovation Wave aims to remove barriers for building renovations. The Energy Efficiency Financial Institutions Group ( EEFIG ) has identified six types of barriers: structural barriers, information barriers, market failures, lack of expertise, a combination of factors making it difficult to aggregate projects and/or carry out more efficient district approaches, and regulatory barriers. All these obstacles directly affect local and regional authorities and hinder their capacity to invest more in energy efficient projects.

The renovation of buildings is a key priority of Green Deal Going Local (GDGL), a new initiative of the European Committee of the Regions, which aims to place cities and regions at the core of the EU's transition towards climate-neutrality. Green Deal Going Local was launched on 15 June 2020 with the creation of a specific Working Group composed of 13 members . Read the press release here.