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Background: Improving the energy performance of the European housing stock

European countries have adapted their planning and/or building regulations to integrate energy performance standards over the last number of years. A significant source of external influence came from the European Energy Performance of Buildings Directive (EPBD) introduced in 2002. Stipulations that minimum standards be introduced during renovation and that an Energy Performance Certificate (EPC) be produced when buildings are sold or rented have secured a position for existing houses in the regulatory fold. Notwithstanding, a number of market barriers remain, which are commonly differentiated between ownership categories. Cost effectiveness and funding is a particular issue for the social housing sector where investment is made by the landlord whilst savings are enjoyed by the tenant. In the Netherlands a mechanism to avoid this split incentive will therefore be introduced (from 2011) allowing the landlord to raise the rent following the energetic improvement of the dwelling. However the rent increase after the measures have been taken may not be higher than the savings on the energy bill.

Background: Improving the energy performance of the European housing stock
Housing complex Strucksbarg/In der Alten Forst, Hamburg Architects (refurbishment): Renner Hainke Wirth, Hamburg © Fotodesign Gebler

In terms of owner-occupiers and private landlords' lack of knowledge and information, and funding are viewed as central barriers. Further barriers include, lack of priority to energy aspects with other investment priorities dominating as well as the ‘hassle factor’. The EPC introduced as part of the EPBD was viewed as a tool to overcome the widely recognised information deficit. However, implementation of the EPBD was delayed in many Member States often due to the lack of experts certified to conduct EPCs. Lack of enforcement is reported in a number of countries such as Denmark, the Netherlands and Sweden. Moreover, it appears that EPCs appear late in the property transaction process, which contradicts the rationale behind this instrument as one influencing market demand for energy efficiency dwellings. In response, the recent recast of the EPBD states that the EPC be included at property advertisement stage, therefore entering at a more opportune moment in the transaction and decision making processes.

Besides market barriers there are further barriers within the policy design process itself:

• None of the countries studied monitor renovation effects on a national or on a systematic basis. If present, monitoring is short term and limited to neighbourhood level and demonstration projects. Failures to reach goals are not identified and the development of poorly designed tools continues.

• Despite the known diversity of housing types and ownership categories, policy tools largely remain generic in nature.

• Many policy instruments endorse controversial conceptualisations of human behaviour, such as those based on theories that occupants will act on information, especially if it is shown that they will gain financially.

• Policy instruments typically encompass ambitions to reduce theoretical energy use. Understanding occupant behaviour and accounting for embodied carbon in building components remain severely neglected areas casting doubt on the actual occurrence and persistence of energy savings.

• Policy tools often promote a measures-based approach to improving energy performance, the adequacy of which can be questioned given the extensive renovations required to achieve climate change targets.

• Developing tools that achieve appropriate target levels and concomitantly maintain the support of households, either through incentives or regulations, remains a challenge.

While these barriers feature strongly in discussions on the existing stock, opportunities remain. Despite the current absence of clear and binding targets promoting energy performance improvement, many countries can boast of innovative tools currently in use or planned. The recent recast of the EPBD offers further opportunities for strengthening current policy instruments. If more widely adopted in the future, life cycle thinking could also offer new opportunities for sustainable renovation. Positive results from the dissemination of pilot projects are mentioned as opportunities from which momentum can be created. Moreover, attention to the existing housing stock is new in many countries in policy terms, leaving potential for further improvement.

Gallery

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