1、Electric Power&Natural Gas PracticeRefurbishing Europe:Igniting opportunities in the built environmentThe built environment in Europe will need to transform to achieve the EUs goals for net-zero emissions.This is challenging but will unlock societal benefits and business opportunities.February 2023

2、Getty ImagesThis article is a collaborative effort by Rory Biskupski,Gustav Bolin,Tomas Nauclr,Erik Sjdin,Bram Smeets,and Paolo Spranzi,representing views from McKinseys Sustainability Practice.Europe is facing an unprecedented energy crisis.Even though many governments have introduced support mecha

3、nisms in recent months,the average European household is still facing energy costs that are almost two times higher than the previous yearand prices are expected to remain considerably elevated than in past years for the foreseeable future.At the same time,the EU has embarked on a large-scale transf

4、ormation of its economies.Decarbonization targets and climate policies(like Fit for 55 and RePowerEU)require that emissions reduce quickly in a short time.Both European institutions and national governments have in past years rapidly introduced legislation that include hard commitments to the decarb

5、onization targets and specific policies to deliver on them.If these efforts are successful,the EU economy will look substantially different by 2030 and will have gone through a radical transformation by 2050.The built environment is a critical puzzle piece for both decarbonization and the energy cri

6、sis.Responsible for 35 percent of energy-related emissions in the EU and 32 percent of natural gas consumption,the sector must transform to enable the regions decarbonization targets to be met.This transition is unlikely to be simple.There are significant hurdles to overcome in improving the buildin