Europe’s overlapping crises — from energy insecurity and climate change to unaffordable housing and eroding democratic trust — share a common thread: the quality of the buildings and neighbourhoods where people live. Drawing on five years of real-world experience across the oPEN Lab Living Labs in Genk (Belgium), Pamplona (Spain) and Tartu (Estonia), the roadmap demonstrates that the neighbourhood scale is uniquely suited to integrate deep renovation, renewable energy, flexible demand systems and citizen participation.  

It examines four thematic areas where the PEN approach can close the gap between existing EU regulation and effective on-the-ground implementation: inclusive energy renovation, decentralised and collective energy systems, demand-side flexibility and system integration, and whole-life-cycle decision-making. For each theme, the report identifies current barriers and provides targeted recommendations for EU institutions, Member States and municipalities. 

Key insights: 

• Resilient, affordable and fossil-free neighbourhoods are not only a climate objective, they are a direct investment in Europe’s energy security, public health and social cohesion. 

• Some of the regulatory building blocks for PENs already exist within EU legislation, including the EPBD, REDIII and the EED. The real challenge is coherent and timely implementation on national and local levels. 

• Sustained community engagement and co-creation are not optional extras but essential conditions for neighbourhood transitions to succeed and scale. 

• Without dedicated resourcing for long-term citizen engagement and benefit-sharing, PENs risk remaining innovative rather than investable.  

• Financing PENs is fundamentally different from financing single-building renovation, requiring new business models that recognise social, environmental and governance value alongside traditional financial returns. 

By translating the lessons of the oPEN Lab Living Labs into concrete policy recommendations and narratives, this roadmap provides policymakers, local authorities and practitioners with a clear framework for embedding the neighbourhood approach with all its benefits into mainstream urban development across Europe.