A Transition Pathways Approach for Energy Renovation in EU Building Market Ecosystems

The European Union aims to achieve climate neutrality by 2050, prioritizing energy efficiency particularly in the building sector. Despite significant policies, such as the EU Green Deal and Renovation Wave initiative, the rate of deep energy renovations remains insufficient, with only 0.2% annually versus the 3% required. Multiple barriers hinder the progress of deep energy renovations (DERs), including fragmentation among stakeholders, the limited coordination of RDI (Research, Development, and Innovation) efforts, and a lack of systemic approaches. The objective of this paper is to illustrate a holistic methodological approach for enhancing the DER market uptake based on transition pathways theory (TPT) and is designed to drive structural evolution in DER markets aimed at overcoming their main current constraints. To this end, five key transition pathways are outlined—namely institutionalization, clusterization, capitalization, digitalization, and exploitation—and are conceived for fostering coordination, integration, promotion, and efficient scaling of innovations along the whole DER value chain. This approach was tested in seven EU building market ecosystems under the H2020 re-MODULEES project, aimed at developing a market activation platform conceived as a digital enabler for next-generation One-Stop Shops (OSSs). This project yielded practical evidence on the potentiality of the TPT frame to strengthen and empower local ecosystems through stakeholders’ engagement and cooperation. The findings suggest that the TPT-based approach tested in re-MODULEES can effectively address structural challenges in diverse DER renovation markets, and for this reason, it may be also tested and extended in other ecosystems across Europe in order to be validated as a strategic approach at the EU level for facilitating the transition to low-carbon buildings.