Overshoot Day: Luxembourg once again on the sad podium! Advancing renovation in Luxembourg – 9-point programme to strengthen building renovation

Mouvement Ecologique and Oekozenter Pafendall are committed to placing much greater focus on Luxembourg’s existing building stock with a view to promoting sustainable use of resources and reducing grey emissions in the construction sector. The preservation and further development of existing buildings and the facilitation of redensification in existing buildings are key levers for creating (additional) living space without causing additional land consumption.

The fact is that, according to estimates, between 5 and 10% of buildings in Luxembourg’s municipalities are vacant. This potential has not been sufficiently exploited to date. The reactivation and renovation of existing buildings is therefore not only a key element of resource and climate protection, but also a significant contribution to combating the housing shortage and the problems in the construction sector.

This makes it all the more incomprehensible that political and public discourse continues to focus heavily on new construction instead of systematically mobilising the considerable potential of existing buildings.

Vacant buildings have a variety of negative effects: they detract from the appearance of towns and cities, can cause safety and hygiene problems and, above all, mean that existing living space is not being used. This is irresponsible, especially in times of acute housing shortages.

The causes of vacancy are manifold – and the measures to reduce it must be correspondingly broad: from legal frameworks and fiscal instruments – such as a reform of property tax or a vacancy levy – to targeted support measures for the renovation and reactivation of these buildings.

The promotion of renovations – starting with the removal of existing legal, financial and administrative hurdles – must therefore become a much greater political focus and be pursued in a timely manner. This is not only necessary from a housing policy perspective, but also imperative for reasons of climate and resource protection.

Numerous European studies show that the grey emissions of a new building typically range from several hundred to over 1,000 kg CO₂ equivalent per square metre, depending on the construction method. In comparison, the preservation and renovation of existing buildings can generally avoid between 50% and 75% of these emissions. This difference is particularly significant in light of the climate targets set for 2050.

Both Luxembourg’s Integrated Energy and Climate Plan (PNEC) and the EU’s Energy Performance of Buildings Directive (EPBD) envisage a significant reduction in grey emissions in the building sector by 2050. These targets can only be achieved if renovation and conversion are systematically given priority over demolition and new construction. The National Plan for Waste and Resource Management also explicitly emphasises the importance of responsible use of existing building stock and the avoidance of construction waste.

Last but not least, renovations offer further structural advantages over new buildings: existing buildings are usually already connected to municipal infrastructure, additional land consumption can be avoided, conflicts of use in new developments are reduced, and existing locations are often better connected to public transport than new residential areas.

And last but not least, existing buildings can – if the conditions are right – be tackled and implemented relatively quickly compared to various new construction projects. This means that additional living space can be mobilised much more quickly, along with the associated jobs.

Without consistent priorisation of the renovation and further development of existing buildings, neither national climate targets nor a sustainable housing policy can be achieved. The current focus of public and political discourse on new construction falls short, as it does not sufficiently take into account the considerable potential of existing buildings in terms of resource conservation, climate protection and short-term housing creation. A strategic reorientation in favour of building in existing structures is therefore necessary.

With a8-point programme – which is based, among other things, on a round of discussions with stakeholders in the construction sector – Mouvement Ecologique and Oekozenter Pafendall aim to contribute to the targeted promotion of renovation and construction in existing buildings in Luxembourg and to effectively mobilise existing potential.

The renovation and conversion of existing housing stock is not a marginal issue, but a central component in overcoming the housing crisis in Luxembourg.

This requires a coherent mix of instruments: from an improved regulatory system and optimised financial assistance to consistent awareness-raising efforts.

Renovation before new construction: making climate- and resource decisions

1. New regulation within the framework of the harmonised building code – distinction between new construction and renovation
2. Facilitating redensification in existing buildings
3. PAG / PAP provisions: facilitating conversion
4. Fundamentally reform the funding and financing instruments for existing building renovation
5. Extension of the greatly reduced value added tax rate
6. Tackle vacancy tax and property tax reform swiftly
7. Administrative simplifications – including in the renovation sector n
8. Role of the public sector – Targeted acquisition of buildings !
9. Promoting awareness in a targeted manner

17.02.26