Production: By Europod, in co-production with Sphera Network.

EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms.

Find the full transcript below:

The European Union is directing tens of billions of euros toward boosting energy efficiency in homes. Still, a fresh report indicates that much of this spending produces only modest gains.

Why is the EU support not generating the expected results?

Hi, I’m Léa, and this is Briefed, your daily European podcast.

Following the Covid-19 crisis, the European Union launched a large-scale recovery initiative to bolster member state economies, known as the recovery and resilience facility, or RRF.

Programme rules require that at least 37 percent of the money go toward climate and energy goals. Renovations that improve building energy performance form a central element of this push.

Yet a report issued on 7 July by the European Court of Auditors shows that RRF resources are not being applied in the most efficient manner, particularly for building upgrades.

The core issue is that member states primarily back basic renovation efforts such as window replacements, solar panel installations and heating system improvements.

By comparison, deep renovations that fully insulate structures and can reduce energy use by over 60 percent receive far less backing.

How did this situation arise?

Projects funded through EU recovery money are rarely chosen according to the actual energy savings they are projected to deliver.

In several nations reviewed by the auditors, no mechanism existed to prioritize projects by their energy-saving potential.

Of the 111 renovation schemes checked by the Court, just three featured a clear energy-saving goal.

Governments instead track the count of homes updated or the square metres covered.

Very few monitor the energy reductions actually obtained.

The report also flags the expense of certain renovation efforts.

Italy’s Superbonus programme stands out, as it covers 110 percent of costs through state support rather than 100 percent, sparking a sharp rise in applications.

Auditors found that each unit of energy saved through the Italian scheme cost nearly four times the original projection.

The European Court of Auditors views this method as ultimately self-defeating.

Small-scale work can complicate and raise the price of deeper renovations later on.

Moreover, such limited steps fall short of what is needed to decarbonise Europe’s building stock over time.

These observations arrive at a pivotal time.

The European Commission plans to keep supporting energy-efficient building renovations in the next long-term budget spanning 2028 to 2034.

Residential buildings represent about a quarter of Europe’s overall energy consumption. Nearly three-quarters of European structures still lack proper insulation.

A broad wave of building renovations will be essential if the European Union is to reach its climate objectives.

Success will require directing funds more precisely, tracking the real energy savings delivered by projects, and ensuring every euro produces meaningful results.

That concludes this episode on EU funding for energy-efficient building renovations.