Multiple benefits of renovation in buildings - PU Europe

Multiple benefits of investing in energy
efficient renovation of buildings
Main findings
Energy savings through the renovation of the existing building stock is one of the most
attractive and low cost options to reduce the emissions of CO 2 and potentially improve
energy security by reducing imports of fossil fuels. Indeed, there is wide evidence that
undertaking energy efficient renovations at current energy prices often pay for themselves
i.e. have negative investment costs. 1 Now is a particularly good time for pursuing such
renovations. In addition to the permanent benefits these renovations may bring, it will
also produce a much needed stimulus to the European economy at a time of economic
underperformance, spare capacity and record low real interest rates in a number of countries.
In addition to the energy savings that renovation of the existing buildings stock will bring,
there are a range of co-benefits, which can also be harvested. By reducing energy consumption
and focusing on indoor climate issues when renovating, co-benefits can be
achieved such as reduced outlay on government subsidies, and improved health due to
less air pollution and a better indoor climate, both of which also lead to fewer hospitalisations
and improved worker productivity.
Harvesting renovation opportunities could bring huge benefits to the EU economy over
the coming decades. Based on available estimates of the potential for energy savings from
renovation of buildings, this study suggest a monetised permanent annual benefit to society
of €104-175 billion in 2020 depending on the level of investments made from 2012 to
2020, cf. Figure 1: 2 €52-75 billion from lower energy bills, and at least €9-12 billion from
the co-benefits of reduced outlay on subsidies and reduced air pollution from energy production.
If the health benefits from improved indoor climate are included, the benefits are
increased by an additional €42-88 billion per year. These health benefits are evident, but
very uncertain to estimate, and should be interpreted accordingly. If investments are continued
after 2020, these annual benefits can be doubled by 2030.
1 Net financial savings after deducting investment and running costs are positive
2 In the low EE scenario, investment costs are expected to be app €41 billion per year, and in the high EE scenario investment
costs are expected to be app. €78 billion each year.
4