Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
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<strong>Multiple</strong> <strong>benefits</strong> <strong>of</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> energy<br />
efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
Ma<strong>in</strong> f<strong>in</strong>d<strong>in</strong>gs<br />
Energy sav<strong>in</strong>gs through the <strong>renovation</strong> <strong>of</strong> the exist<strong>in</strong>g build<strong>in</strong>g stock is one <strong>of</strong> the most<br />
attractive and low cost options to reduce the emissions <strong>of</strong> CO 2 and potentially improve<br />
energy security by reduc<strong>in</strong>g imports <strong>of</strong> fossil fuels. Indeed, there is wide evidence that<br />
undertak<strong>in</strong>g energy efficient <strong>renovation</strong>s at current energy prices <strong>of</strong>ten pay for themselves<br />
i.e. have negative <strong>in</strong>vestment costs. 1 Now is a particularly good time for pursu<strong>in</strong>g such<br />
<strong>renovation</strong>s. In addition to the permanent <strong>benefits</strong> these <strong>renovation</strong>s may br<strong>in</strong>g, it will<br />
also produce a much needed stimulus to the <strong>Europe</strong>an economy at a time <strong>of</strong> economic<br />
underperformance, spare capacity and record low real <strong>in</strong>terest rates <strong>in</strong> a number <strong>of</strong> countries.<br />
In addition to the energy sav<strong>in</strong>gs that <strong>renovation</strong> <strong>of</strong> the exist<strong>in</strong>g build<strong>in</strong>gs stock will br<strong>in</strong>g,<br />
there are a range <strong>of</strong> co-<strong>benefits</strong>, which can also be harvested. By reduc<strong>in</strong>g energy consumption<br />
and focus<strong>in</strong>g on <strong>in</strong>door climate issues when renovat<strong>in</strong>g, co-<strong>benefits</strong> can be<br />
achieved such as reduced outlay on government subsidies, and improved health due to<br />
less air pollution and a better <strong>in</strong>door climate, both <strong>of</strong> which also lead to fewer hospitalisations<br />
and improved worker productivity.<br />
Harvest<strong>in</strong>g <strong>renovation</strong> opportunities could br<strong>in</strong>g huge <strong>benefits</strong> to the EU economy over<br />
the com<strong>in</strong>g decades. Based on available estimates <strong>of</strong> the potential for energy sav<strong>in</strong>gs from<br />
<strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs, this study suggest a monetised permanent annual benefit to society<br />
<strong>of</strong> €104-175 billion <strong>in</strong> 2020 depend<strong>in</strong>g on the level <strong>of</strong> <strong>in</strong>vestments made from 2012 to<br />
2020, cf. Figure 1: 2 €52-75 billion from lower energy bills, and at least €9-12 billion from<br />
the co-<strong>benefits</strong> <strong>of</strong> reduced outlay on subsidies and reduced air pollution from energy production.<br />
If the health <strong>benefits</strong> from improved <strong>in</strong>door climate are <strong>in</strong>cluded, the <strong>benefits</strong> are<br />
<strong>in</strong>creased by an additional €42-88 billion per year. These health <strong>benefits</strong> are evident, but<br />
very uncerta<strong>in</strong> to estimate, and should be <strong>in</strong>terpreted accord<strong>in</strong>gly. If <strong>in</strong>vestments are cont<strong>in</strong>ued<br />
after 2020, these annual <strong>benefits</strong> can be doubled by 2030.<br />
1 Net f<strong>in</strong>ancial sav<strong>in</strong>gs after deduct<strong>in</strong>g <strong>in</strong>vestment and runn<strong>in</strong>g costs are positive<br />
2 In the low EE scenario, <strong>in</strong>vestment costs are expected to be app €41 billion per year, and <strong>in</strong> the high EE scenario <strong>in</strong>vestment<br />
costs are expected to be app. €78 billion each year.<br />
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