Study places micro-enterprises at the heart of energy renovation

The message from policymakers, social partners and market players is clear: Europe will only achieve its climate goals if its smallest construction companies can fully contribute.

Study background: Micro-enterprises represent 94% of construction companies in the EU, employ 46% of the sector's workforce, but generate only 31% of added value—showing that their potential remains underexploited. Nearly 75% of Europe's building stock is energy-inefficient, while the energy renovation rate remains at just 1% per year. To meet the 2050 targets, this rate needs to increase to 3–4% per year, or around 23.000 homes per day. Deep renovations are still rare; current volumes are insufficient, highlighting the need to scale up deep renovations, whether incremental or in one step.

Climact identifies 4 drivers of transformation in the residential renovation market:

• The increased need for deep energy renovations;
• One-stop shops to support and stimulate market growth;
• Individual and collective heating, ventilation and air conditioning solutions for healthy homes;
• Eco-friendly materials and circular practices.

In this transition, micro-construction businesses rely on key strengths: specialized expertise, trusted client relationships, agility and flexibility, and local roots. These assets are essential to remain at the center of the market and thrive. Micro-businesses may need to adapt their operating model by:

• Structuring collaborations to increase their capacity, reconciling craftsmanship and industrialization;
• Adopting lean processes focused on end-customer value and replication capability;
• Using simple digital solutions for widespread adoption and easy market participation.

To increase and improve their workforce—a long-standing sector challenge—micro-enterprises will need tailored support to better recruit, access training, and promote their entrepreneurial spirit.

The researchers highlight the following practical levers:

• Predictable political combinations;
• Accessible financing for deep and progressive renovations;
• Inclusive one-stop shops for micro-enterprises;
• Investments in skills and health and safety at work;
• Industrialized methods in synergy with artisanal value.

For Isabelle le Callennec, Member of the European Parliament (EPP, France): “The central role of micro-construction companies in European energy renovation is undeniable. By extending this observation to the challenges of sustainable and affordable housing, currently a priority in Brussels, European tools could truly support municipalities and small local businesses. We must work together on this issue.”

For Marcos Ros Sempere, MEP (S&D, Spain): “The housing crisis in the EU must be a priority in the next Multiannual Financial Framework, including the challenge of energy renovation. The Energy Performance of Buildings Directive is a powerful tool that requires financial efforts from public and private actors to enable micro-construction companies and their workers to achieve the ambitious targets.”

With a packed room, including representatives from the European Commission (DG Employment and DG Energy), employers' organizations, trade unions, owners and architects, as well as a large number of EBC national member federations, EBC President Jean-Christophe Repon concluded: "Today we are setting a simple test for European policy: if a company of two to nine people can access the market, financing and training it needs, Europe can scale up and improve large-scale renovation—with quality jobs in every community."

Download the study here

Illustrative image of the article via Depositphotos.com.