This Destination addresses activities targeting the energy demand side, notably a more efficient use of energy as regards buildings and industry. It contributes to the activities of the Strategic Energy Technology Plan (SET Plan) and its implementation working groups.

This Destination contributes to the following Strategic Plan’s Key Strategic Orientations (KSO):

• C: Making Europe the first digitally enabled circular, climate-neutral and sustainable economy through the transformation of its mobility, energy, construction and production systems;
• A: Promoting an open strategic autonomy^[1] by leading the development of key digital, enabling and emerging technologies, sectors and value chains to accelerate and steer the digital and green transitions through human-centred technologies and innovations.

It covers the following impact areas:

• Industrial leadership in key and emerging technologies that work for people;
• Affordable and clean energy;
• Circular and clean economy.

The expected impact, in line with the Strategic Plan, is to contribute to the “Efficient and sustainable use of energy, accessible for all is ensured through a clean energy system and a just transition”, notably through

• Technological and socio-economic breakthroughs for achieving climate neutrality and the transition to zero pollution of the building stock by 2050, based on inclusive and people-centric R&I (more detailed information below).
• Increased energy efficiency in industry and reducing industry’s Greenhouse Gas (GHG) and air pollutant emissions through recovery, upgrade and/or conversion of industrial excess (waste) heat and through electrification of heat generation (more information below).

This Destination has at its core the ambition to deliver on the research, innovation and technological developments needs to meet EU climate and energy targets, forward-looking policy implementation and long-term carbon neutrality objective. The Destination contributes as well (e.g. through the topics that support digitalisation and smartness of buildings) to the EU digital agenda. Though biodiversity is not in the focus of this Destination, the multiple impacts of the built environment on biodiversity (e.g. in the scope of renovation) should be considered.

The Destination has a strong policy dimension – it is steered by EU policy action in the energy and climate domains, the European Green Deal overreaching policy priority, the Renovation Wave Strategy (for buildings topics), the Industrial Strategy, the Industrial Emissions Directive (for industry topics) and the forward-looking policy measures proposed in the Fit for 55 – Delivering European Green Deal package.

In the light of the Versailles Declaration^[2], and acknowledging the need to reduce the energy dependencies of the EU, this Destination will strongly focus on innovations that boost energy efficiency and reduce energy demand in buildings and the industry, thereby contributing to making Europe independent from Russian gas supplies (and other fossil fuel supply from Russia) by the end of the decade in line with the REPowerEU Communication^[3].

Highly energy-efficient and climate neutral EU building stock

The Destination will contribute to putting the EU on track for achieving climate neutrality of its building stock by 2050 and to effectively promoting Europe’s independence from Russian gas supplies (and other fossil fuels from Russia) before 2030 by means of a more clean, efficient and sustainable building stock. It will deliver the solutions that can help increase buildings renovation rates, reduce energy consumptions of buildings, improve smart readiness, improve circularity, and improve users’ comfort, well-being and health, while keeping housing affordable, in line with the objectives of the Renovation Wave and the revised Energy Performance of Buildings Directive.

This Destination will contribute to ‘reducing our energy dependencies’ priority of the Versailles declaration across all topics, in particular by improving energy efficiency and the management of energy consumption in buildings, and by delivering more circular approaches to construction and renovation of buildings. The Destination will also contribute to the ‘Electrify Europe’ track of REPowerEU by delivering innovative solutions for energy efficiency and electrification of homes and buildings, e.g. thanks to heat pumps. These priorities are addressed in a specific flagship topic.

It will contribute to the uptake of digital and smart solutions in buildings and to improved energy flexibility, in line with the Action Plan on the digitalisation of the energy sector. The Destination’s innovation will contribute to make the sector fit to support the achievement of higher ambition on energy efficiency under Fit for 55. The Destination’s topics contribute significantly to the New European Bauhaus^[4](NEB), integrating the core NEB values of sustainability, inclusion and aesthetics in the built environment (e.g. in relation to cultural heritage and quality of experience), and they are consistent with the EU roadmap and policy initiatives on digitalisation in the construction sector and on sustainability of buildings (e.g. Level(s)). On climate, one aim will also be to enhance the role of buildings as carbon sinks in the voluntary market for carbon removals, in line with the upcoming Communication on Restoring sustainable carbon cycles and the Proposal for a regulatory framework for carbon removal certification.

The Destination also relies on the Built4People co-programmed partnership’s broader action and is complementary to Driving Urban Transitions partnership and to the Mission on Climate Neutral and Smart Cities.

Main expected impacts:

• The European buildings and energy sectors are able to effectively support higher EU ambition on energy efficiency, energy independence, and the transition to zero-emission buildings, with a stronger link between innovation in technology and practices, and policy drivers and instruments.
• Building stocks continue to evolve to combine energy efficiency, renewable energy sources, storage, and digital and smart technologies, supporting the transformation of the energy system towards climate neutrality and reducing Europe’s energy dependencies.
• Buildings constructed and renovated see their performance enhanced across the board (energy performance, life-cycle emissions, indoor environment quality), with lower environmental impacts, and rates of holistic renovations continue increasing. Buildings are able to adapt to changing user needs for dynamic and more efficient use of building spaces and they are more resilient to climate change and better integrated in the grid.
• A higher quality, more affordable and inclusive, built environment mitigating climate change and preserving environment, safeguarding cultural heritage, considering sustainability, circularity and aesthetics, while ensuring better living conditions.

Industry

The Destination will contribute to putting the EU on track for achieving climate neutrality of the industrial sector by 2050, while also reducing other polluting emissions, and for effectively promoting Europe’s independence from Russian gas supplies (and other fossil fuels from Russia) before 2030 by means of a more clean, efficient and sustainable industrial processes. It will deliver the solutions that can help a faster transition to renewable and low carbon energy sources for thermal energy generation, and a reduction of the energy consumption through waste heat recovery, storage and upgrade for reuse in other processes. These solutions will contribute to reduce GHG and polluting emissions and reinforce the frontrunner and competitive position of the European industry. They are in line with the research and innovations areas identified in the Implementation Plan of the action of the Strategic Energy Technology (SET) Plan dedicated to ‘energy efficiency in industry’.

The bulk of R&I dedicated to industry is covered in Cluster 4 (Digital, Industry and Space), and in particular by the private public partnership Processes4Planet focussing on process industries. In Cluster 5, this Destination focusses on the management of thermal energy in industry.

Main expected impacts:

• Increasing energy efficiency in industry and reducing industry’s energy dependence, Greenhouse Gas (GHG) and air pollutant emissions through recovery, upgrade and/or conversion of industrial excess (waste) heat and through the integration of renewable energy sources into more efficient and flexible systems for the generation of heat and cold for industrial processes.

[1] ‘Open strategic autonomy’ refers to the term ‘strategic autonomy while preserving an open economy’, as reflected in the conclusions of the European Council 1 – 2 October 2020.

[2] The Versailles Declaration, 10 and 11 March 2022, https://www.consilium.europa.eu/media/54773/20220311-versailles-declaration-en.pdf

[3] ‘REPowerEU: Joint European action for more affordable, secure and sustainable energy’, COM(2022) 108 final, 8 March 2022.

[4] https://europa.eu/new-european-bauhaus/index_en

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