Energy efficient building revenue in Europe to reach $109 billion by 2023
Stringent regulations that apply across the European Union have contributed to the development of a growing market for energy efficient buildings in Europe
Continent-wide revenue from energy efficient buildings in Europe, including products and services, is expected to grow from $56 billion annually in 2014 to $109 billion in 2023, according to Navigant Research.
Stringent regulations that apply across the European Union have contributed to the development of a growing market for energy efficient buildings in Europe. At the same time, mandatory changes to country-level building codes are increasing the performance requirements that apply to new construction and major renovations of existing buildings, with the goal of delivering nearly zero energy buildings by 2019 and 2021 for public and private buildings, respectively.
“Buildings account for 40 percent of Europe’s final energy consumption, and represent a key focus in efforts to improve overall energy efficiency,” says Noah Goldstein, research director with Navigant Research. “The policy landscape for energy efficiency in Europe is among the most stringent in the world, making it a laboratory for technologies and strategies that could be exported to other regions.”
The key piece of continent-wide legislation governing the building sector, according to the report, is the Energy Performance of Buildings Directive (EPBD), which applies to new construction and major building renovations. It includes a number of key elements, including a progressive tightening of building codes leading to requirements for nearly zero energy buildings for public buildings by 2019 and private buildings by 2021; inspections of large energy-consuming mechanical equipment; energy performance rating of buildings; and the introduction of financial instruments to improve building energy performance.