Renovating Germany’s building stock

This report finds that, within 15 years, a large part of the German building stock can be renovated cost-effectively, achieving significant energy savings. This is achievable through different combinations of policy tools and targeted support measures meant to stimulate investments in the building stock.

The creation of a comprehensive policy framework including the lowering of transaction costs, increased energy price signals and targeted subsidies would mean that almost all of the German building stock, except for residential buildings younger than 20 years, could be renovated with a positive pay-back within the next 15 years. However, the currently existing policy framework is insufficient to achieve the government’s long term goal of decarbonising the building sector as the renovation of only 33% of the floor area is cost-effective within the next 15 years.

The report concludes that additional policy measures are required to tap into the full potential for energy saving in the German building stock. The recommendations range from:

  • Setting an appropriate strategic context;
  • Providing the right economic signals;
  • Focusing financial support where it is most needed;
  • Providing the right support infrastructure and systems.

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