Rethinking Energy Efficiency in German Real Estate: Towards Sustainable and Economically Viable Climate Action

Nikolas Müller

ERES from European Real Estate Society (ERES)

Abstract: Germany's building sector, crucial for climate protection, exhibits a considerable energy-saving potential. However, this potential remains largely untapped due to the stagnant renovation rate of about 1%, leading to significant delays in energy retrofitting and failure in meeting energy and greenhouse gas reduction targets.This study examines alternative Zero Emission Building (ZEB) standards in terms of cost-effectiveness, macroeconomic efficiency, and their potential in reducing greenhouse gases. The focus is on GdW's real estate portfolio, which comprises 30% of Germany's rental apartments, mostly occupied by low to middle-income households. This demographic accentuates the social impact of energy and climate policies.The findings highlight the inefficacy of current renovation strategies, which blend economic and climate objectives, in realizing the sector's potential. These strategies lead to suboptimal energy savings and reduced affordability for tenants. The research proposes a shift to a ZEB standard defined as low-temperature capable, offering a more cost-effective and feasible alternative to the current 'Efficiency House 55' standard, potentially boosting the achievement of climate goals.A considerable investment discrepancy is noted, with the 'Efficiency House 55' standard necessitating significantly higher funds, raising concerns about the financial feasibility, particularly for socially focused housing corporations.The paper advocates for a balanced approach, merging sufficient energy efficiency with the expansion of renewable energies. This strategy is presented as economically viable and socially fairer, urging a paradigm shift in Germany's building energy and climate policy. The recommended approach better aligns with the EU's 'energy efficiency first' principle and promises greater sustainability and economic soundness.

Keywords: Energy efficiency first; Energy Performance of Buildings Directive (EPBD); Social impact of energy and climate policies; Zero Emission Building (ZEB) (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ene and nep-env
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