Addressing building related interventions for vulnerable districts

Impacts under this topic are expected to be demonstrated for energy poor households specifically.

• Number of buildings renovated
• Demonstration of the effectiveness and replicability of the proposed solutions among energy poor households
• Number of roadmaps created
• Number of energy poor consumers impacted
• Multiple benefits, such as improved mental and physical health, comfort and indoor environment, better indoor air quality, improved social inclusion, reduced public health expenditure
• Primary energy savings/renewable energy generation triggered by the project (in GWh/year).
• Investments in sustainable energy triggered by the project (cumulative, in million Euro)
• Indicators for measuring energy poverty^[1]

The topic aims to alleviate energy poverty by addressing the poor energy efficiency of dwellings, as a key risk factor causing energy poverty (the other two being low incomes and high energy expenditure). Buildings are still responsible for 40% of Europe’s total energy consumption, and too many Europeans struggle to afford the energy bills for their poorly insulated dwellings with polluting heating/cooling systems. In accordance with the Clean Energy for All Europeans package, Member States, through their National Energy and Climate Plans and Long-Term Renovation Strategies (LTRS), must identify dwellings of people at risk of energy poverty and develop effective strategies for renovating these as a matter of priority. The Energy Efficiency Directive (2012/27/EU) (EED), as amended by Directive 2018/2002/EU, requires Member States to take into account the need to reduce energy poverty in the context of their energy efficiency obligations. In addition, the revised EPBD requires Member States to target the least efficient building stock first (“worst first” principle), and address split-incentive dilemmas and market failures as part of the national LTRS. At the same time, the European Green Deal sets out to ensure an energy transition that is socially just and inclusive, with the Renovation Wave^[2] as its centrepiece. This is also supported by e.g. the Commission Recommendation on Energy Poverty^[3].

In addition to tackling high bills and energy use, this topic aims to address the many negative impacts low quality building stock has on residents, including poorer health and lower levels of social inclusion. Transforming inefficient housing stock addresses a root cause of energy poverty, however, the topic also has as an objective to tackle the related high upfront costs, lack of information and trust, uncertainty about benefits of the measures, split incentives, and discomfort caused by renovation works, including the potential need to relocate, as barriers to household uptake.

Proposed actions should facilitate the market uptake of renovation approaches for the large-scale rollout of building-related interventions for vulnerable districts, clusters of buildings, or groups of such buildings managed through common building management or housing/home-owners associations (e.g. social housing), in line with the Renovation Wave and the Commission Recommendation on Energy Poverty.

Approaches can involve traditional public mechanisms, and/or alternative models with blended financing and can focus on the private rented sector, social housing, multifamily buildings, or owner-occupied housing. To maximise energy savings, occupant behaviour and residents' buy-in should be considered from early stages of the process and all actions should be coupled by accompanying measures to adapt residents' post-intervention energy use behaviour, through e.g. community engagement campaigns, advice, or trainings.

Proposed actions should focus on lowering the cost of renovation (including over the building lifecycle), reducing delivery time, and minimising disturbance for building occupants. In case of rental properties, actions should help ensure that tenants’ rent levels are maintained after renovation works are completed and relocation of tenants and district gentrification after works is avoided.

The solutions should include already proven measures for deep renovation, such as building envelope insulation, replacement/improvement of the technical building systems, and window replacement, etc.

The approaches should be one or a combination of the following, and could also include renewable energy solutions, where appropriate:

• Roll out holistic, industrialised deep renovation solutions, including also approaches based on pre-fabricated modules, where appropriate
• Develop and implement roadmaps of energy efficiency measures that can be conducted step by step, starting with those with the shortest payback period to act as a further incentive (e.g. starting by replacing the heating/cooling systems, or by insulating the envelope, etc.). Roadmaps can be prepared by e.g. local authorities, or social/societal actors and should involve regular communication and engagement with all relevant stakeholders. Low-cost measures that can be quickly applied can also form a small, complementary part of such roadmaps (e.g. draught proofing, introducing shading elements, radiator reflective foils). These roadmaps should prevent lock-in effects and can be e.g. based on the renovation recommendations included in Energy Performance Certificates. At a minimum, the actions are expected to put in place the framework for implementation before the end of the proposed action, including securing sufficient financing and commitment of all relevant actors
• Develop and implement roadmaps of energy efficiency measures that can be conducted step by step for social housing organisations to address the specific needs of their own building stock and residents. These should involve regular communication and engagement with all relevant stakeholders. Low-cost measures that can be quickly applied can also form a small, complementary part of such roadmaps (e.g. draught proofing, introducing shading elements, radiator reflective foils). At a minimum, the actions are expected to put in place the framework for implementation before the end of the proposed action, including securing sufficient financing and commitment of all relevant actors.

Proposed actions should highlight the multiple benefits from renovation for different vulnerable target groups, such as improved health, comfort, air quality, better social inclusion etc. The actions should also take into account Life Cycle Assessment (LCA) approaches, in order to minimise carbon emissions.

The proposed actions should build on existing initiatives^[4] and involve local authorities and intermediaries such as tenants/homeowners/landlord/housing associations, social and societal actors, or renewable energy communities or citizen energy communities, as relevant.

The Commission considers that proposals requesting a contribution from the EU of up to EUR 1.75 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

[1] Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty (C(2020) 9600 final) and Commission SWD ‘EU Guidance on Energy poverty’, 14.10.2020 (SWD(2020) 960 final)

[2] European Commission Communication ‘A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives’, 14 October 2020 (COM(2020) 662 final).

[3] Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty (C(2020) 9600 final)

[4] For example, the EU Energy Poverty Observatory and its successor, the EU Covenant of Mayors, EU Building Stock Observatory, the Affordable Housing Initiative, and relevant EU-funded projects