2.II.iv. Long Term Renovation Strategies, status – OVERVIEW

The Austrian LTRS document builds on a complete set of data reflecting the actual developments of the last 3 decades for the following parameters:

• Population Development
• Building stock
• Final energy consumption of the buildings
• Resulting GHG emissions

It contains developed scenarios that attempt to determine final energy consumption and GHG emissions against the background of demographic development for the next 3 decades.

Pure trend calculations and expert-based predictions were used to derive a forecast for the years 2030, 2040 and 2050. Extensive preparation was carried out by a working group of the OIB (composed of the Expert Advisory Board for Building Guidelines - sub-group Energy Saving and Heat Protection (SVBRL 6) and the coordination group for the implementation of the EPBD) as well as a stakeholder process. The most important results of this investigation are:

• On the basis of the expected final energy consumption and energy carrier mix, it is possible to achieve savings up to 80% by 2050, as required in the EPBD.
• With the greatest efforts and in the best-case scenario (in particular the existence of an energy supply of approx. 2.5 TWh of green gas), GHG savings of 3 million tons can be achieved in 2030.

The Brussels renovation strategy¹⁰ was adopted on 25 April 2019 and is aimed at drastically reducing the building stock environmental impact. Its three major cornerstones are:

• increasing the building renovation rate;
• improving the quality of building renovations;
• promoting the rational use of energy within the building.

The strategy consists of a summary document and 34 concrete and detailed action sheets grouped within 5 themes:

• energy performance and sustainability requirements;
• financing and incentives;
• target audience support;
• administrative simplification;
• the so-called 'document, experiment, innovate'.

Concretely, the strategy sets a consumption target of 100 kWh(EP)/(m².year) on average for housing by 2050, i.e., an average level of performance equivalent to a PEB C+ for the entire housing stock.

One of the strategy’s action sheets will result in the compulsory establishment of an EPC for each dwelling by 2025; the EPC will list the priority measures, specific to each accommodation, which must be applied in order to improve energy performance and to ultimately achieve the highest level of performance possible.

The dwelling owners will have to carry out at least every five years one of the recommended works (e.g., insulation of walls-roofs-floors, replacement of the windows, replacement of the heating system, etc.).

Table 4 Timeline for mandatory renovation works in residential buildings, in compliance with the EPCs.

For condominiums, the roof, façades and other common areas will be addressed through a report based on all the measures recommended in the EPC for all building units. The co-ownership will be responsible for implementing recommendations relating to the common areas.

By 2050, the tertiary sector must move towards an energy-neutral goal for heating, domestic hot water production, cooling and lighting.

The regulations and tools necessary for its implementation must be available by 2025.

https://environnement.brussels/news/presentation-de-la-strategie-renovation-aux-horizons-2030-2050-bruxelles

Based on stakeholder consultations, the Flemish Long-Term Renovation Strategy (LTRS) 2050 was updated and validated by the Flemish Government on 29 May 2020 (EPBD, Article 2bis). The LTRS 2017 was enriched with a scenario analysis resulting in a roadmap with milestones for both residential and non-residential buildings. This exercise showed:

• that 95% of buildings need to be renovated to comply with the 2050 target;
• that in order to realise this, a substantial growth in both pace and depth of renovation activity is needed.

Specific trigger points in the life course of a building were identified as the ideal moments to undertake deep and cost-effective renovations. Using the potential of these trigger points (sales, inheritance, change of renter) to the max, helps to spread the renovation efforts. Also, a fast improvement of the energy performance is crucial to reach the 2030 greenhouse gas emissions reduction goals. The general ambition of the LTRS 2050 is as follows:

• For the residential sector: before 2050, all existing houses have to reach label A on the Energy Performance Certificate (comparable to the energy performance of new houses in 2015) and the electricity and heating needs will shift towards a very high share of RES;
• For the non-residential sector: evolution to carbon neutrality for heating, cooling, hot water and lighting by 2050.

The Long-Term Renovation Strategy for Wallonia, integrated into the 4^th National Energy Efficiency Action Plan (NEEAP) in 2017, is based on the commitment made by Wallonia to reduce its greenhouse gas emissions by 80% to 95% (all sectors combined) by 2050 compared to the 1990 level (Climate decree -20/02/2014).

It sets specific objectives for both residential and non-residential buildings as presented in the previous section.

These objectives require the consideration of renovating a building in a comprehensive manner, with a stable and long-term vision of the investments to be made.

To achieve this objective, the LTRS proposes a panel of actions staggered over short-term (2020), medium-term (2030) and long-term (2050) periods to stimulate deep renovations of residential and non-residential buildings.

In order to transpose the more recently introduced EPBD Article 2a,  the LTRS will be adapted and completed in consultation with stakeholders.

Amendments and additions will include:

• updating the 2050 roadmap by integrating the decarbonisation objective, including milestones (2030, 2040, 2050) in line with the National Energy Climate Plan;
• the definition and identification of trigger points in the life cycle of the buildings and the specific actions that can be linked to those trigger points in terms of energy renovation;
• more actions targeting 'split incentives' and energy poverty, public authorities, the promotion of smart technologies and connected buildings, and actions to simplify access to support mechanisms for the mobilisation of investments;
• the quantification of the expected benefits in terms of energy savings and related co-benefits;
• measurable progress indicators.

No data available

After the public announcement and after collecting comments from other ministries, a new Long Term Renovation Strategy (LTRS)⁵ was sent to the Government of the Republic of Croatia for adoption.

The LTRS contributes to the overall national energy efficiency target set in the Integrated National Energy and Climate Plan, according to which the contribution of buildings to final energy consumption is reduced to 48% in 2030 and 46% in 2050. These projections are based on the goals and measures envisaged in the Integrated National Energy and Climate Plan and this LTRS, assuming the continuous annual increase of the rate of energy renovation of buildings from 1% in 2021 to 3% in 2030, and the renewal of the national building stock at a rate of 3% by 2050. The absence of these measures would result in significantly higher energy consumption in buildings in the future and failure to meet the set of national targets.

The LTRS provides clear guidelines, defines measurable targeted measures and equal access to financing for the worst performing segments of the national building stock, for consumers affected by energy poverty and, in case of split incentives, between landlords and tenants. The LTRS also includes references to health, safety and air quality fire protection and risks associated with increased seismic activity, initiatives to promote smart technologies, as well as skills and education. The LTRS sets out a clear level of ambition for the energy renovation of existing buildings to achieve the European Union's goals of developing a sustainable, competitive, secure and decarbonised future by 2050.

It is expected that this strong Long Term Renovation Strategy will accelerate the cost-effective renovation of existing buildings that currently have a low renovation rate.

Using both quantitative and qualitative indicators, the Long-Term Renovation Strategy, under development by the MECI, will highlight the problems that arise from the poor energy performance of the existing building stock, but also the opportunities offered by accelerating the renovation rate. Based on data, a roadmap with measurable progress indicators stretching to 2050 will be presented. The Long-Term Renovation Strategy is an elaboration of the Long-Term Strategy to Mobilise Investments in Building Renovation issued in 2014 and revised in 2017. As in previous cases, the Long-Term Building Renovation Strategy will be done with the active participation of stakeholders.

The Long-Term Renovation Strategy⁵ is partially based on the Building Renovation Strategy prepared under Article 4 of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency. However, it is more complex in terms of policy design requirements which reflect the barriers to building renovation, as well as market failures, etc. It aims to promote a cost-effective transformation of existing buildings through setting up adequate financial mechanisms in order to mobilise private investment.

The outcome of the Long-Term Renovation Strategy is to propose a cost-effective scenario for the renovation of the building stock of the Czech Republic (see scenario 2 below), covering the residential, public and private sectors, with measurable progress indicators and relevant policies as a result.

The Long-Term Renovation Strategy identifies the three following scenarios:

Scenario 1: Baseline (Business as Usual, current developments following the implementation of policies and measures based on EED Art. 4). The basic scenario reflects the current market situation. The scenario thus considers all existing policies and measures to support energy efficiency by the State but does not consider their change (nor the introduction of new policies, or their conclusion, for example, when a new programming period begins). By 2050, it reduces consumption by about 72 PJ (19%) compared to the current state. The cumulative investment costs until 2050 for the implementation of this scenario are CZK 722 billion.

Scenario 2: Optimal (anticipated development of the renovation of the building stock after the introduction of additional measures aimed, in particular, at changing the approach (complexity) of renovations and increasing their number in the public sector). The optimal scenario goes beyond existing policies. It envisages the introduction of new measures, especially in the area of public and commercial buildings. In the area of residential buildings, it foresees an increased depth of renovations, but not an increase in the actual number. By 2050, it reduces consumption by about 89 PJ (24%) compared to the current state. The cumulative investment costs until 2050 for the implementation of this scenario were calculated at CZK 856 billion. Investment costs will consist of funds from both the State budget and other public budgets, as well as EU and private funds; the volume of funds allocated for national subsidy titles will depend on the possibilities of the State budget for the relevant periods.

Scenario 3: Hypothetical (ideal scenario based on rapid and thorough renovation of the building stock, but its implementation is limited by the identified barriers and the possibility of implementing various measures). The hypothetical scenario assumes that the vast majority of buildings (85%) will undergo thorough renovation from 2025 or 2030; only buildings where this is not technically possible will stick with shallow or moderate renovations. This will not be possible without significant State intervention. Furthermore, it foresees an approximately doubled renovation rate, which would result in the renovation of every building within 30 years. This increase in the depth and rate of renovations will lead to a reduction in energy consumption of 166 PJ (44%) by 2050, with a total necessary investment of CZK 1,419 billion.

Some key figures for the 3 scenarios are presented in Tables 7a-c.

Table 7a: Parameters and milestones of the Czech Republic’s Long-Term Renovation Strategy Baseline Scenario (scenario 1).

Table 7b: Parameters and milestones of the Czech Republic’s Long-Term Renovation Strategy Optimal Scenario (scenario 2).

Table 7c: Parameters and milestones of the Czech Republic’s Long-Term Renovation Strategy Hypothetical Scenario (scenario 3).

Denmark submitted its Long-Term Renovation Strategy (LTRS) on 10 March 2020. The LTRS outlines the energy efficiency initiatives agreed upon in the Danish Energy Agreement of 2018 for the 2021-2024 period. In accordance with the Energy Agreement, Denmark has established a number of policies and measures to promote cost-effective and comprehensive energy renovation efforts, including targeting public buildings and the least energy-efficient segments of the building stock.

The existing measures to support energy renovation of existing buildings are:

• Taxes on energy use for heating of buildings;
• Requirements in the building code;
• EPC for buildings;
• A new support scheme in 2021-2024 for energy renovation of existing buildings;
• Subsidy scheme to replace oil burners with heat pumps in buildings outside the district heating and gas grids;
• Information activities;
• Data and digitalisation;
• The building job scheme ('Bolig Job ordningen')³ - see case below.

Additionally, a number of analyses have been initiated in 2019 in order to promote the renovation of buildings. The findings of these analyses can, if relevant, form the basis for possible additional work related to the promotion of building renovations in the coming years.

The indicative milestones of the long-term strategy for renovating the national building stock and the roadmap with domestically established indicators will be outlined in the Danish Climate Action Plan, which is to be presented according to the Danish Climate Act (see Section 4), likely in the first quarter of 2021.

Case – The Building Job Scheme

The Building Job Scheme makes it possible to get a tax deduction on salary expenses for energy efficient building improvements (also cleaning help and others) – both for private homeowners and tenants. The improvements that are deductible change over time. In 2020, it is possible to get a deduction for, e.g., the following services:

• Installation, repair or replacement of solar panels;
• Installation, repair or replacement of solar cells;
• Installation, repair or replacement of household wind turbines;
• Heat pumps, including air-to-air heat pumps with and without cooling function;
• Geothermal heating: The entire geothermal heating system;
• Installation or improvement of ventilation;
• Radon extraction;
• Installation of security-systems;
• Services related to broadband connection/installation.

The Scheme allows for a deduction of DKK 6,200 per person for cleaning services etc. and a deduction for building improvements of DKK 12,500 per person over the age of 18 in the household. The Scheme has been a huge success, and approximately 75% of all the approved deductions concerned energy efficient building renovations.

The main goal of this long-term renovation strategy is the full renovation, by 2050, of buildings erected before 2000. The depth of this full renovation is reflected in the minimum required energy performance of a building after a major renovation, which, according to the Estonian energy performance regulations, is currently class C. The strategy has the following central principles:

• Cost-effective application of energy efficiency requirements: Energy and resource efficiency; in addition to the energy performance of buildings, taking into account the environmental impact of the construction materials and processes.
• Regional balance: Ensuring renovation as well as balanced, functional living quarters and second-tier centres.
• Quality of living and working environment: Ensuring a healthy interior climate, improving accessibility and functionality as well as abiding by the basic principles for high-quality space in the solutions for buildings and public spaces during the renovation.
• Technological development: The development of renovation solutions and technologies to improve the sustainability of the renovated buildings and reduce renovation costs.
• Climate change mitigation and adaptation: Climate change mitigation, reduction of the carbon intensity of buildings, buildings that contribute towards climate neutrality.
• The strategy that ensures energy savings, the healthy interior climate in buildings and a high-quality spatial environment is estimated to improve the living and working conditions of 80% of Estonian citizens.

The Finnish Long Term Renovation Strategy has been prepared during 2018-2020, in cooperation with many actors from the building, construction, energy and finance sectors through workshops, public hearings and public questionnaires.

The key points of the strategy to reduce the energy consumption and emissions of the building stock existing in 2020 by 90%, are energy efficiency, decommissioning and efficiency of space utilisation, as well as low carbon heating solutions.

The Finnish Long Term Renovation Strategy 2050 will be submitted to the EU on 10 March 2020.

The French Long-Term Renovation Strategy is established to meet both the ‘Paris agreement for climate’, which requires lowering greenhouse gas emissions, and the EPBD that sets a goal of carbonless and high effective energy building stock by 2050. It determines several intermediate objectives, e.g., -49% greenhouse gas emission and -29% building energy consumption by 2030, compared to 2015.

It foresees the establishment of a national observatory for energetic renovation. This will be made possible, thanks to opening of access to energy performance data, creation of a unique housing ID and standardisation of the procedure of building geolocation. Therefore, the observatory will be able to analyse the following data:

• energy performance of the building stock by observing the evolution of the EPCs;
• building stock distribution by type of energy production systems;
• annual global energy consumption of the existing building stock;
• an index comparing the building renovation levels to a ‘BBC renovation’ performance.

Furthermore, in order to improve the connection between the multiannual energy consumption objectives and the building energy performance levels, the final energy will be better featured in the French EPC from 1 January 2021.

The new strategy provides also the main guidelines for energy renovation support; this includes the creation of a direct aid for the energy transition of low-income households ‘MaPrimeRenov’, paid at the time of the energy renovation works (maximum delay of 10 days). The previous energy transition tax credit was paid to households until 18 months after the renovation works were completed.

In addition, the strategy presents a detailed analysis of the building stock based upon data produced within the cost-optimal report (Report from the French Authorities, Transposition of Article 5 of Directive 2010/31/EU, Calculation of cost-optimal levels of minimum energy performance requirements). It also covers funding programmes financed by Energy Saving Certificates, which are usually targeting strategic building stock sections, e.g., the ACTEE programme for public buildings or CUBE.S for schools.

Finally, the strategy lists coercive measures recently introduced or detailed in the national law:

• obligation of energy saving actions in tertiary building of more than 1,000 m² before 2030, 2040 and 2050;
• obligation of energy audits before the selling or the renting of each excessively consuming housing from 1 January 2022;
• prohibition, from 2023, to rent the most consuming housing, the so-called ‘thermal sieves’ i.e., dwellings ranked in the two lowest categories of the country’s Energy Performance Certificate scheme;
• obligation to realise renovation works on thermal sieves before 1 January 2028.

To support residential and small non-residential building energy renovation, a huge simplification of the subsidies request process has been engaged. For instance, the SARE programme (Energy renovation support service) aims at informing and supporting the realisation of renovation actions toward residential and small non-residential buildings. The realisation of a toolkit referencing all the works compatible with Low Consumption Building Renovation level (named ‘B2C2’) has also started with ADEME.

The LTRS shows measures and incentives for the renovation of the national building stock. Germany defines overall energy efficiency as a first indicator, and intends to establish additional indicators, for example, concerning final energy consumption, as soon as the LTRS is updated. Other indicators are generated from future databases (concerning renovation rate and intensity), energy performance certificates and the heating label.

Following the revision of the EPBD in 2018 and the EnEV, Germany defines overall energy efficiency as a primary indicator and numerically models it with regard to the non-renewable primary energy consumption (PEV_n.E.). The overall energy efficiency refers to the provision of heating, cooling and warm water and, for non-residential buildings, lighting. Moreover, the non-renewable impact for production, transformation and transportation or distribution of energy sources is also considered in this indicator (polluter pays principle). The overall energy efficiency can be increased by strengthening energy efficiency as well as raising the share of RES to cover heating demands.

As an indicative milestone for 2030, Germany aims at lowering the non-renewable primary energy consumption to 2,000 PJ (556 TWh) for the overall energy efficiency. This indicative milestone refers to a reduction of PEV_n.E. by approx. 55% compared to the base year of 2008 (4,400 PJ). In 2018, as the PEV_n.E. was approx. 3,300 PJ (preliminary estimate by AGEB); a reduction of approx. 25% was reached compared to the base year of 2008.

By June 2018, the YPEN had approved the study² of the 2^nd long-term strategy for mobilising investment in the renovation of the national stock of residential and commercial buildings (according to the provisions of EED, Article 4). The new long-term renovation strategy (according to Directive 844/2018, Article 2A) is expected to be established in 2020, after transposing Directive 844/2018 into national legislation, which is expected in the beginning of 2020.

According to the 2^nd renovation strategy from 2018, the basic goal set out  is that almost 7% of the existing building stock will be renovated by 2030. This means that almost 25,000 buildings should be renovated annually. Two different scenarios have been examined, consisting of two different renovation types:

• medium renovation with 40% savings;
• deep renovation with 60% savings.

The investment amount necessary to achieve the aforementioned scenarios ranges from 1.6-2.5 billion €. In order to transform the existing building stock by 2030, it is necessary to foster a mixture of fiscal and economic incentives and also to mobilise private capital. Greece must therefore proceed with regulatory framework developments and focus on capacity building and good practices. Finally, it is also important not to overlook the multiple benefits deriving from renovations, as renovations have a significant impact on society as a whole and secures resources from the reduction of expenses in other sectors (e.g., health).

Directive 2018/844 of the European Parliament and of the Council (30 May 2018) amending Directive 2010/31/EU on the energy performance of buildings, and Directive 2012/27/EU on the energy efficiency of buildings, require EU Member States to elaborate their Long-Term Renovation Strategy (hereinafter referred to as the 'LTRS' or 'Strategy'). Its domestic implementation is also set out in the National Energy and Climate Plan adopted by the Government of Hungary on 8 January 2020¹⁴. The aim of the Strategy is to transform the national stock of privately and publicly owned residential and non-residential buildings to a nearly zero-energy and decarbonised building stock by 2050 through deep renovation. Hungary is currently finalising its Long-Term Renovation Strategy.

Ireland’s next Long Term Renovation Strategy (LTRS) will outline the indicative milestones for 2030, 2040 and 2050, the domestically established measurable progress indicators, an evidence-based estimate of expected energy savings and wider benefits, and their contributions to the energy efficiency targets. The current LTRS is available on the Department's website⁴. The next LTRS will further reflect the commitments in the National Development Plan (NDP) and the actions set out in the Irish Government’s Climate Action Plan.

For 2030 these include:

• 500,000 homes retrofitted to a BER of B2 (100 – 125 kWh/m².year primary energy) or cost-optimal by 2030;
• public sector buildings to have a BER of B (or carbon equivalent) by 2030;
• one third of all commercial buildings to have a BER of B (or carbon equivalent gains) by 2030.

For 2050 these include:

• In 2014, Ireland adopted a National Policy Position for an 80% reduction in CO₂eq emissions by 2050 compared to 1990 levels for the electricity generation, built environment, and transport sectors.
• The Climate Action plan states the Government’s ambition to support the adoption of a net zero target by 2050 at EU level.

The LTRS 2020, developed by Italy on the basis of the EU recommendation 786/2019, was published by MISE for public consultation, open until 16 December 2020.

The LTRS contains a review of the national building stock and the identification of its current energy renovation rate and also refers to the opportunities for energy renovation featuring the application of an integrated approach based on 'trigger points'.

In order to estimate the surface to be renovated, a modelling tool has been developed, starting from the cost-optimal method suggested by the EU Commission; this allows the identification of the minimum cost solutions to achieve the energy saving objectives. For the sub-sectors of the tertiary sector not covered by the cost-optimal methodology, processing was carried out starting from the annual energy saving target.

The strategy then reviews the existing measures and actions for residential and non-residential buildings and for the public and private sector, with the assessment, for each of them, of a possible improvement in order to achieve the estimated renovation rate.

Finally, the LTRS describes the most transversal initiatives such as the actions aimed at promoting smart technologies, skills, training and financial mechanisms.

According to EPBD Article 2a the national Long-Term Renovation Strategy must be updated with some new requirements. The main additions in the Strategy will include obstacles, which hinder improve energy performance by building renovation, e.g., economic feasibility of projects, insufficient funding from public and private sectors, lack of awareness by end-users, etc.

The strategy will include a roadmap for the decarbonisation of the building stock until 2050, considering, among others, initiatives for funds which are necessary for this to be achieved. . For this, it is important to improve private & public partnerships and decrease obstacles which hinder energy efficiency in the building renovation process (for example complexity of project implementation, the risk of applying financial corrections).

Nevertheless, it is important to note that Latvia has already initiated actions towards achieving its 2050 climate targets. Among others, this includes plans to reduce energy poverty risks with new social housing, support young families who, encouraged by attractive financial instruments, choose to live in a highly energy-efficient housing, and initiate a new private house support programme as well as energy efficient solutions for standard-type buildings.

Luxembourg has submitted its LTRS to the Commission in June 2015. Hereafter follows an executive summary of the LTRS highlighting the key points of the strategy:

The document contains Luxembourg’s long-term renovation strategy (LTRS) for residential and non-residential buildings, both private and public, in line with the requirements of Article 2a of Directive (EU) 2018/844. According to the Directive, the LTRS is intended to support the renovation of the national stock of buildings to a very high standard of energy efficiency and to replace fossil fuels for heating with renewable energy, in both cases as cost-effectively as possible. The buildings sector is responsible for approximately 36% of all CO₂ emissions in the Union (Directive on the energy performance of buildings (EPBD), 2018) and the long-term renovation strategy is, accordingly, a key factor in progress towards the EU’s target of achieving a socially just transition to net-zero greenhouse gas (GHG) emissions by 2050. Luxembourg’s LTRS clarifies the goals and measures set out in Luxembourg’s National Energy and Climate Plan (NECP) 2020 (NECP, 2020) for the buildings sector in greater detail and describes how the sector – in particular through the renovation of buildings – can help to achieve the national targets of a 55% reduction in GHG emissions and a 40–44% reduction in final energy demand compared to EU PRIMES 2007 (DGET, 2008) by 2030, with more ambitious long-term targets by 2050 at the latest.

According to the NECP, energy savings associated with building renovations hold the second-largest potential for cumulative energy savings by 2030 (after energy savings in the Transport sector).

Table 1: Cumulative energy savings by 2030, broken down by sector (NECP, 2020).

The LTRS contains an up-to-date analysis of the country’s building stock and outlines recent developments in relation to strategic planning and the design of implementing measures. It is intended to consolidate previous work performed in these areas. The most important stakeholders have been involved in its drafting and the measures it describes will be implemented on a gradual basis over the coming months.

Luxembourg’s newly built and demolition rates are well above those of most other EU Member States. This can be attributed to the strong economic growth recorded by the country and the resulting strong population growth (in relative terms, Luxembourg has the strongest population growth of any OECD country, outpacing even Mexico). To ensure that this large stock of new builds is constructed using ‘climate-friendly’ methods, Luxembourg – as the first country in the EU – introduced the ‘near zero energy building’ (NZEB) standard on a mandatory basis for residential buildings on 1 January 2017. The early introduction of this demanding standard has allowed Luxembourg to achieve CO₂ emission reductions in the residential buildings sector despite population growth. In summer 2020, this successful policy will be complemented by a new regulation that introduces climate-neutral standards on a mandatory basis for new builds in both the residential and non-residential sector; these standards will be rolled out gradually between 2020 and 2023.

Although high demolition rates and a high standard for new builds means Luxembourg's building sector achieves a higher proportion of energy and climate reductions than any other EU Member State, the country still faces substantial renovation-related challenges. To remain within the target corridor for the 2030 and 2050 climate targets, Luxembourg must significantly increase both the depth of renovation (the amount of energy saved compared to the pre-redevelopment condition) and the renovation rate (how many buildings are renovated per year). ‘Business as usual’ alone will not be sufficient.

To accelerate progress in this area, a whole range of well-integrated implementing tools will need to be put into practice, including the following:

• regulatory provisions (regulations and standards);
• promotional and funding instruments;
• tax instruments;
• training;
• awareness raising and publicity work;
• research and model projects.

These tools will be aligned with each other in such a way that their effects are mutually reinforcing.

From a technical perspective, emphasis is on energy-related improvements to the building envelope (insulation) and improvements to the energy efficiency of technical installations, with a particular focus on fossil-free energy sources (replacement of old heating systems based on fossil fuels). Accompanying measures such as further training, awareness raising and research are aimed at identifying and prioritising savings potentials and at highlighting possible improvements and supporting measures.

Alongside the impact on energy savings and climate, a further key indicator for assessing the mix of measures is the impact on those individuals who live in and use the buildings, in particular those who are at risk of energy poverty because their incomes are low but their energy consumption is relatively high. An analysis of energy poverty in Luxembourg is thus a key component of this LTRS. The analysis reveals that Luxembourg is among the EU Member States with the lowest rates of energy poverty. According to Eurostat, around 5,000 households in the country are unable to heat their homes appropriately or need to rely on state benefits to pay their fuel bills. An analysis of the energy poverty situation also reveals that the problem is not caused by energy prices (price per litre of heating oil or per cubic metre of gas), since Luxembourg has some of the lowest energy costs in the EU in terms of absolute value and particularly in terms of the purchasing power parities, but rather by rental prices rising at a significantly faster rate than purchasing power in recent years, particularly in lower-income groups.

Based on the analyses carried out in connection with the drafting of the LTRS, the following implementing measures have been identified as priorities:

Regulatory provisions

• introduction of stricter minimum requirements in terms of thermal insulation for individual components in the form of new energy efficiency regulations (for non-residential buildings from 2021 and for residential buildings from 2023);
• checks to ensure that renovation works comply with the requirements (energy passport checks) (revision of existing system of checks);
• introduction of ‘renovation passports’ (a renovation roadmap) to ensure that the overall sum of individual measures gradually results in full renovations with sufficient depth (‘deep renovation’);
• obligation to build up financial reserves for the renovation of owner-occupied and rented apartments (based on the example of Austria’s ‘Maintenance and Improvement Contribution’);
• reduction in the quorums for majority decisions in co-owned multi-family dwellings concerning general renovation and maintenance works and energy efficiency measures in particular;
• hiatus in the expansion of gas networks in residential areas;
• requirement to install photovoltaic systems on all public buildings by 2030 (with the exception of buildings protected as historical monuments);
• preparatory measures for the installation of photovoltaic systems on the roofs of other non-residential buildings during renovation (with the exception of buildings protected as historical monuments and heavily shaded buildings) from 2023.

Promotional and funding instruments

• revision of the PRIMe-House scheme for residential buildings: funding of individual measures for building envelope components in combination with a tightening up of minimum efficiency standards (heavily scaled to promote high levels of performance);
• ‘zero-interest climate loan’ for renovations under the PRIMe-House scheme to be rolled out to all households (instead of just low-income households);
• access to the PRIMe-House funding scheme for certified tradespeople who carry out individual measures; access to a bonus for full renovations provided that a certified energy consultant is consulted, with a significant increase in the funding available for consultation costs;
• funding for energy-efficiency measures in buildings protected as historical monuments;
• PRIMe-House funding in combination with a switch to renewable energy carriers (‘mazut replacement scheme’).

Tax law

• gradual introduction of a carbon tax (CO₂ pricing based on the 'polluter pays' principle) from 2021 onwards;
• harmonised reduced VAT rate of 3% for energy renovations that comply with the requirements of the PRIMe-House scheme for residential buildings;
• further incentives for renovations by owners, such as accelerated depreciation allowances.

Training

• training on the energy-efficient optimisation of non-residential building renovations;
• training on ways to reduce energy demand for cooling as a means of adapting to future climate change.

Awareness raising and publicity work

• further development of the existing ‘myrenovation’ app for residential buildings;
• information campaign on energy efficiency in non-residential buildings in connection with the introduction of the new regulations.

Research and model projects

• prefabrication of the components required for renovations with a view to shortening the timeframe of renovations and combating labour shortages, in cooperation with other countries;
• model projects for the renovation of residential developments with poor energy ratings and heating systems based on fossil fuels:

           o trial of funding schemes based on energy performance contracting;
           o opening up of the PRIMe-House funding scheme to cover measures implemented by contractors;
           o more generous recognition of CO₂ savings achieved through renovations carried out by energy suppliers (measure currently under consideration);
           o strict energy-related requirements under the PRIMe-House funding scheme;

• model projects involving highly energy efficient and economical renovations of non-residential buildings.

Success stories in the new residential buildings sector can be used as a foundation for implementing the aforementioned measures. Luxembourg has succeeded in introducing one of the most ambitious standards in Europe in this market segment within a period of around ten (10) years.

As noted above, the LTRS is intended to serve as a basis for summarising, clarifying and further developing the implementing measures. The most important stakeholders in the sector are involved in this process by means of regular workshops.

A ‘Renovation Day’ event was planned for May 2020 for the purpose of allowing public participation, but this event could not take place as a result of COVID-19 restrictions. Since a comprehensive public participation process in relation to the topics covered in the LTRS was carried out when drafting the previous version of the building renovation strategy three years ago and when drafting the NECP in 2019, it was decided that a similar process involving events aimed at providing information on forthcoming implementing measures (e.g., details of the revised PRIMe-House funding scheme) should be carried out in autumn 2020 (subject to COVID-19 restrictions) and in spring 2021 at the latest.

Additional key steps during the drafting of the renovation strategy included a detailed analysis of the current non-residential building stock and systematic evaluations of energy-related data from the EPC database and other sources. Energy demand/consumption data and energy generation data are to be localised in a geographic information system on this basis.

The development of a Long-Term Renovation Strategy has been given increased priority over recent years to guide actions to be undertaken in the forthcoming period. The new LTRS has been concluded in spring 2020 and is now in the first phases of implementation.

A list of actions that the government of Malta is considering to further drive renovation of the building stock has been identified, in particular to align energy use and carbon emissions from buildings with the new, more ambitious reduction trajectories being considered as part of the Green Deal. The proposed policy mix is underpinned by:

• stronger regulation, in cases where current minimum standards are substantially below recent technical developments and below what is economically efficient;
• financial incentives, where the cost of implementing energy efficiency measures would not be economical for the building owner; incentives will instead primarily support renovation of the dwelling stock, with focus on the worst performing parts, and energy generation from renewable sources;
• exemplary role of government buildings, by increased investment in the public building stock.

The Long-Term Renovation Strategy provides an overview of the expected impacts of implementing these measures. While it remains difficult to quantify the long-term impacts of such measures, the strategy is expected to require substantial investments and thereby halve energy use compared to the counterfactual. Overall, the policies introduced are expected to lead to savings in the range of 15,080 GWh in buildings by 2050 (evenly spread across residential and non-residential buildings), leading to an estimated emissions reductions of around 2.7 million tonnes CO₂. The strategy is expected to require investments of around 4.5 billion € over a period of 30 years (undiscounted), with the Maltese government covering around 40% and the private sector 60%. For the next 10 years, the government plans to invest over 800 million € in the residential, non-residential and publicly owned building stock. This may stimulate an additional 1 billion € worth of investments from households and business.

Figure 5. Long-Term Renovation Strategy for Malta including the extract for proposed 2030 milestones for dwellings.

The updated Dutch Long-Term Renovation Strategy, that was submitted on 10 March 2020, describes how the Netherlands implements the climate transition in the built environment. This strategy complies with the requirement of the Energy Performance of Buildings Regulation (REPG: this is the national regulation through which the EPBD has been implemented). It provides a coherent picture of the broad range of measures that the Netherlands is deploying to achieve a low-carbon built environment by 2050.

The strategy provides an in-depth overview of the Dutch approach to the built environment and highlights some key points. It also reflects the relationship between existing instruments (that will continue in the next years) for making the built environment more sustainable, and includes new instruments that arise from the acceleration of the approach agreed in the Dutch Climate Agreement.

The LTRS supports the Dutch policy comprising of a wide range of measures, with a mix of thematic and target group-oriented instruments (described above in section 2.II.iii).

Figure 5. Integral overview of strategies, policies and measures (Source: LTRS, RVO, 6 March 2020)

Long-Term Renovation Strategies is a requirement of the revised EPBD (2018) which is not part of the EEA agreement. But as this is required in Directive 2012/27/EU (EED), work on such a strategy is under preparation. See section 2.II.iii.

The Polish Long-Term Renovation Strategy was submitted for public consultation at the beginning of 2021 and is planned for submission to the European Commission by the end of March.

The Portuguese Long-Term Renovation Strategy (LTRS) aims to transform the current building stock into buildings with almost zero energy needs while also considering other priority challenges relevant to the Portuguese context that go beyond the energy consumption and emissions. The three main objectives are:

i) The improvement of living conditions in buildings, with a priority on mitigating energy poverty, improving thermal comfort and indoor air quality and promoting occupants’ health and well-being;

ii) The opportunity for an economic growth through the co-benefits associated with the renovation of the existing building stock, e.g. promoting labour productivity, the reduction of health expenses, the valorisation of heritage buildings and the empowerment of the construction sector and associated employment; 

iii) Compliance with and alignment between the LTRS assumptions and results and the environmental and energy goals defined in the Roadmap for Carbon Neutrality and in the National Energy and Climate Plan.

Within the LTRS, a range of cost-effective approaches to building renovations were identified, which resulted in a set of improvement measures to be applied depending on the type of building and climate zone. These packages will be implemented progressively and cumulatively until 2050, prioritising the worst-performing segments of the building stock and considering the following measures:

i) The rehabilitation of the passive buildings’ components (windows, walls and roof), ensuring acceptable levels of thermal comfort without an increase in energy consumption;
ii) The replacement of existing electrical equipment, AC systems and lighting systems with more efficient systems;
iii) The integration of local RES production systems (solar thermal and photovoltaic panels) and storage systems (batteries);
iv) The installation of highly efficient AC systems in buildings that do not have this type of systems but, after being rehabilitated, still need them to guarantee an adequate thermal comfort (more severe climatic zones).

The strategic document 'Update of the Strategy for the rehabilitation of the residential and non-residential building stock' prepared under Art. 4 of the Energy Efficiency Directive was approved by Government Resolution 230/2017 (adopted in May 2017). The new Long-Term Renovation Strategy for the rehabilitation of the building stock, prepared under Art. 2a of Directive 844/2018, is based on the approved document and includes updates related to this amending EPBD. There are some new elements (assessment of the CO₂ emissions in the building sector, milestones for the renovation, update on the statistical data in the non-residential building stock, etc.) that help to shape a vision and strategy of how to transform the current building stock in Slovakia into a decarbonised and highly energy efficient building stock by 2050.

Policies and actions already in place have proved successful in boosting the renovation of the apartment blocks. Measures adopted in relation to the support of the renovation of the family houses and non-residential buildings provide a good basis for accelerating renovations in the future. The strategy puts emphasis on implementing the cost-effective deep renovation of the building stock, increasing the rate of renovation in the non-residential sector as well as for family houses, and at least keeping the rate of renovation of apartment blocks stable. It is inevitable that sufficient financial sources (including EU funds) for the deep renovation of buildings will need to be earmarked in the next decade in order to meet the milestones set in the LTRS.

The goal of the Long-Term Renovation Strategy (2021) (DSEPS 2050) is to have the energy systems of 74% of single-family houses and 91% of multi-family houses renovated by 2050. This will reduce final energy consumption by 45%, and CO₂ emissions by almost 75% compared to 2005. Increased investment in energy efficiency is contributing to the recovery and economic development. In the short term, it contributes directly to an increase of employment in industries that supply energy products and services for renovation of buildings and indirectly throughout the economy. In the long run, with the savings created, it contributes to the recovery and development of other sectors. Two thirds of buildings covered are residential buildings for which the DSEPS 2050 plans new financial instruments. With sustainable renovation decisions, having in mind that they are placed approximately every 30 years, implementation of DSEPS 2050 will have a significant impact on resource efficiency. DSEPS 2050 also plans systemic mitigation measures regarding energy poverty, including the absorption of cohesion funds. DSEPS 2050 directs attention to switch from partial to deep and NZEB renovations. For additional information about goals and targets see sections 2.I.iii and 2.II.iii.

No data available.

https://www.mitma.gob.es/el-ministerio/planes-estrategicos/estrategia-a-largo-plazo-para-la-rehabilitacion-energetica-en-el-sector-de-la-edificacion-en-espana

In accordance with the governing EU directives, each Member State shall submit a Long-Term Renovation Strategy to the European Commission. The strategies must provide support for the building stock to have a high degree of energy efficiency and make it easier for existing buildings to be converted into NZEB in a cost-effective way. The strategies will also contribute to the EU's long-term goals of energy efficiency and reduction of greenhouse gas emissions and become part of Member States' national energy and climate plans.

Boverket and the Swedish Energy Agency (Energimyndigheten) were commissioned to produce a basis for the renovation strategy, which was reported to the Government Offices in December 2019. Sweden’s third Long-Term Renovation Strategy was published in March 2020.

The strategy describes Sweden's building stock and provides an estimate of the pace as well as the need for renovation. The strategy also describes relevant instruments and measures and contains a roadmap with indicative milestones for 2030, 2040 and 2050.

The Long Term Renovation Strategy (LTRS) requirement (EPBD article 2a) was transposed at the UK national level via the Energy Efficiency (Building Renovation and Reporting) (Amendment) Regulations 2020³². While the LTRS will provide detail on the UK’s pathway to delivering the carbon and fuel poverty targets, it is important to note that the Government already has a robust, clearly defined strategic framework in place. The Clean Growth Strategy³¹ sets out the UK’s strategic aims for energy efficiency on homes, businesses and the public sector within the context of the Government’s legally binding greenhouse gas emission reduction targets. Since its publication in 2017, the Government has made progress on the policies to deliver those. The Government is considering where it can progress in the context of the Net Zero 2050 target set in 2019 and will aim to publish a UK specific LTRS in 2021.

Please see England report.

Refer to the English Report for details.

Refer to the England Report for details.