The cumulative spending on energy efficient buildings in Europe is expected to reach $791.7 billion from 2014 through 2023, reports Navigant Research.
Buildings account for 40 percent of the final energy consumption, representing a key focus in efforts to improve overall energy efficiency.
The key factors of European Union (EU) legislation are Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED).
These two factors influence the market for energy efficient buildings and create a basis for growth in the sector over the next 10 years.
The EED aims to achieve 20 percent improvements in energy efficiency, carbon emissions, and the penetration of renewable energy. Along with the EPBD, it will help in expanding the energy efficient buildings market across the region, says, Eric Bloom, principal research analyst.
Overall, the policy landscape for energy efficiency in Europe is comparatively stringent, but enforcement and consistency across the whole of Europe is a concern.
In case of EU, individual member states are needed to draft national-level legislation to fulfill the mandates of the directives.
Countries differ in the completeness of energy efficiency programs, with the member states of Northern Europe inclining to be the leaders in energy efficiency policy.