Climate neutrality by 2045 - The role of the real estate industry

#RoadToRevolution
Apr 6, 2022

In the EU as a whole, buildings account for approximately 40 % of total energy consumption. In addition, they account for approximately 36% of the EU's energy-related greenhouse gas emissions.

With the entry into force of the European "Green Deal," Europe has resolved to become climate-neutral by 2050. The real estate industry plays a decisive role in this ambitious goal. 

Currently, about 75% of buildings in the EU are not energy efficient. In addition, according to one estimate, around 85 to 95 % of existing buildings in the EU will still exist in 2050. The EU has therefore set itself the goal of at least doubling the renovation rate from the current level of around 1% over the next ten years. This means that there will be a wave of renovations to achieve the European climate targets.

In Germany, the pressure to act is even greater for the real estate industry, as the German Climate Protection Act tightens the requirements of the European Green Deal and calls for climate neutrality as early as 2045. In Germany, too, real estate plays a crucial role in achieving this goal, as it accounts for around 35% of energy consumption.

In addition, around 70% of the 18 million residential buildings in Germany were built before 1979. A large proportion of the buildings were therefore also built before the first Heat Insulation Ordinance of 1977 and are for the most part not energy-efficient without refurbishment. 

A study by Ifeu on behalf of the Green Party has shown that around 31% of residential space in Germany is accounted for by residential buildings that have one of the two worst efficiency classes, G and H. These buildings are responsible for around half of the greenhouse gas emissions of all residential buildings. These buildings are responsible for around half of the greenhouse gas emissions of all residential buildings. The study concludes that a targeted refurbishment of these buildings into efficiency houses 55 (efficiency class A) would lead to a reduction of 40 to 49 % of the greenhouse gas emissions of all residential buildings.

Sources: Dena, European Commission, European Commission and the Greens

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Damage good. All good.

Damage good. All good.