A strategy for the efficient renovation of Germany’s building stock

Panel: 5B. Cutting the energy use of buildings: Policy and programmes

This is a peer-reviewed paper.

Authors:
Martin Pehnt, Ifeu – Institute for Energy and Environmental Research Heidelberg, Germany
Peter Mellwig, ifeu – Institute for Energy and Environmental Research Heidelberg, Germany
Ulf Sieberg, NABU – Nature and Biodiversity Union Headquarters, Germany

Abstract

Until 2050, CO2 emissions from heating, cooling and domestic hot water use in buildings have to be reduced by 80 - 90%. Current activities are not sufficient to reach this goal. Codes and standards take effect mostly when renovations are being done anyway. Financial support is an important instrument, but it cannot be the only one, especially as public budgets are often limited. This paper develops a long-term retrofit strategy based on a set of policy measures encompassing five core elements:

1. A revised efficiency label scheme will enable the transparent, intelligible representation of a building’s energy status and related CO2 emissions.

2. Based on the long-term targets for the building sector and the efficiency labels defined above, a “long-term retrofit roadmap” is developed, which sets minimum energy performance requirements up to 2050 for each individual building depending on the building type. The roadmap develops a tailored strategy for individual buildings, on the basis of which homeowners define their retrofit activities.

3. The retrofit roadmaps are embedded in a broad energy consulting campaign.

4. To generate the necessary cash flow for the public retrofit support schemes, a continuous financing mechanism independent of the state budget is required. Homeowners will have to pay a climate protection fee ("obolus") if their building does not comply with the efficiency label required in the roadmap. To reduce transaction costs, the burden of proof is reversed: homeowners who do not demonstrate their building’s efficiency category are classified in the worst category. The extent of the fee depends on the number of efficiency classes not complied with.

5. Homeowners who go beyond the roadmap’s demands in their renovation projects receive financial support consisting of base funding and a component relative to the building owner’s economic situation and the specific characteristics of the building.