Renovation of public and private buildings 📍Brussels Capital Region, Belgium

Brussels Capital Region, the most densely populated region in Belgium, with over 1.2 million residents, faces significant environmental challenges due to its ageing infrastructure. Many of the buildings were constructed before the 1960s and thus lack proper insulation, leading to high energy consumption and increased carbon emissions.

Brussels has set targets for at least 90% reduction in direct greenhouse gas emissions to reach carbon neutrality by 2050, with interim goals of 47% by 2030 compared to 2005 levels and at least 67% by 2040. To achieve this, it must tackle the emissions from public and private buildings, which together account for 56% of all emissions in the region, followed by transport and waste.

In this sector, the region has set a series of ambitious targets: All public buildings are to be carbon neutral by 2040, and all private buildings are to be carbon neutral by 2050. By 2033, the region wants to have renovated all worst-performing buildings that fall within the lowest energy ratings, F and G, which make up 40% of the local housing stock. By 2045, it wants to have achieved the same for all buildings rated D and E.

This will require a revolution in renovation, for which the region has adopted a ‘Renolution’ strategy.

Time for Renolution

Launched in 2021, Renolution is a comprehensive approach to decarbonising the region’s buildings while improving living standards and promoting a circular economy in renovations. The strategy includes a combination of regulatory measures, financial incentives, and broad-based stakeholder engagement. It also merges previously separate city initiatives for sharing the same goal.

Renolution seeks to improve the energy performance of buildings while creating over 8,000 job opportunities. The strategy compels building owners to get energy performance certificates for all buildings in 2030, not just those for sale or rent. To achieve this, it accompanies the private sector and residents in the renovation of their buildings. This can take the form of reinforcing the insulation of the building, or the replacement of the energy system. Since 2018, the installation of solar panels has increased threefold (150,000-300,000).

Through ‘Ecoreno’ a branch of the Brussels Capital Region Housing Fund, owners can avail of mortgage loans covering up to 120% of a property's value and consumer loans of €1,500 to €25,000 to assist them in financing renovations. Renolution grants already cover at least 50% of insulation investment costs, and up to 90 for low and middle-income households.

However, Renolution is not just about decarbonising the built environment in Brussels Capital Region, but also about bringing all sectors of society to the table to succeed. For this reason, the Renolution Alliance was created. This group of people is composed of around 100 stakeholders from the public and private sectors and associations, facilitates the strategy’s development through participatory consultation. Organised around seven thematic workshops and four cross-disciplinary areas, including circular economy and innovation, the alliance aims to triple the renovation rate annually by fostering regulation reforms, simplifying administrative processes, and implementing innovative finance for sustainable building renovations.

What were the key drivers supporting the implementation?

  • Political: All the different ministries came to the table to discuss the need to renovate the built environment in Brussels Capital Region and lead comprehensive reforms across all relevant areas of governance.
  • Social impact: Renolution also addresses social concerns by reducing energy poverty and improving living conditions.
  • Economic: Increased awareness and incentives for energy-efficient renovations due to rising energy costs.
  • Simplification: A streamlined one-stop-shop approach for regional subsidies and advice services makes it easier for residents to understand and access support.
  • Demand: Requests for advice and subsidies have shot up year on year.
  • Urgency: A significant portion of Brussels' building stock was built before 1945 and lacks modern insulation, yet the municipality aims to achieve an average energy performance of 100 kWh/m2/year in all buildings by 2050.

And what were the challenges and barriers?

  • Political: Urban planning rules still slow some renovation processes down and can be complex for residents. The aim is to further simplify these.
  • Technical: The renovation of heritage buildings can still present some complications as not all solutions are suitable in this context.
  • Social: Increased value and comfort of the housing resulting from government-supported renovations should not lead to an increased rental burden on tenants. Brussels is working on regulations that will limit rental increase tied to the reception of renovation subsidies.
  • Permits: The process of obtaining/issuing planning permits is still slower than is ideal. The city is working to issue these much more rapidly.
  • Ad hoc approach: Renovation by whole neighbourhoods at a time is much more efficient, however there are regulatory and other complications that still need to be ironed out in managing renovations at this scale.

Potential for replication

Renolution’s integrated framework, combining economic incentives, regulatory reforms, and community engagement, offers a scalable model for other urban regions facing similar decarbonisation challenges. Its emphasis on circular economy principles and job creation enhances its replicability.

Lessons learned and recommendations

Effective communication and stakeholder engagement are essential to the success of large-scale renovation strategies. Brussels Capital Region’s approach highlights the importance of aligning diverse interests through collaborative platforms, ensuring comprehensive investment in regional sustainability goals.