Ingredients for a Compliant National Renovation Plan

by Professor Risto Kosonen

​The EPBD explicitly frames them around the energy efficiency first principle, meaning that whenever planning or investment decisions are made, priority should be given to measures that reduce energy demand most cost-effectively.

National Building Renovation Plans (NBRPs) are a new strategic instrument under the 2024 recast Energy Performance of Buildings Directive (EPBD) aimed at transforming the EU’s buildings into a highly energy-efficient and decarbonized building stock by 2050. These plans are envisaged as the primary strategic roadmap for each Member State to achieve a highly energy-efficient and decarbonized building stock by 2050. 

Each Member State must set out detailed targets for 2030, 2040, and 2050, along with policies, measures, and investment needs to achieve a zero-emission building stock. They are more than just vision documents; they are actionable plans with concrete targets, milestones, and policy measures.

Crucially, the success of NBRPs will be measured by outcomes on the ground: more efficient buildings, lower energy bills, reduced greenhouse gas emissions, and healthier, more comfortable indoor environments for EU citizens. Achieving these outcomes will require overcoming challenges such as financing gaps, workforce shortages, and the sheer scale of renovation required.

But, what are the ingredients for turning a merely compliant plan into a truly transformational National Building Renovation Plan, especially in the residential sector, which is the most complicated for implementation?  

First, we need to tackle the financing challenge. The technology to save energy and cut CO₂ exists, but many apartment buildings are in less attractive areas or owned by people with low incomes (like retirees) who struggle to fund renovations. Some buildings have great potential for savings but can’t get loans because their value is too low. Ensuring funding is available for these cases, through innovative financing, subsidies or guarantees, is absolutely critical. 

Second, we should provide clear, pre-designed renovation solution packages and technical support for building owners. Renovating apartment buildings can be complex, so it helps to offer “ready-made” upgrade packages that owners can easily choose from, covering insulation, heating systems, ventilation, etc. Ideally, there would be companies or organizations to guide homeowners through the process. 

Third, we should encourage large-scale or community-level renovation campaigns instead of isolated, one-building-at-a-time projects. For example, renovating multiple buildings in the same area or housing block as one project can significantly reduce costs through economies of scale. It also attracts more interest from contractors, even smaller construction companies, because the projects are bigger and more worth their while. In a larger area renovation, we can consider advanced solutions like shared energy systems, waste-heat recovery, or energy storage serving a group of buildings, which wouldn’t be viable for single buildings alone. This kind of neighborhood or “small energy community” renovation strategy can be transformational in cutting costs and improving efficiency at scale. 

​In summary, the key ingredients aren’t so much about new technology – we already have good technologies, but about new financing models and business approaches to make renovation feasible and attractive.