Achieving society-wide decarbonisation within the EU has remained at the top of the European
agenda for several years, with increased provisions to account for climate solutions in the
European Green Deal and associated recovery measures. The publication of the REPowerEU
plan underscores the importance of demand reduction and future-proofing the European
building stock. The plan calls for demand reduction, diversifying fossil fuel supply and
accelerating the transition to renewable energy by 2027. Given the ambitious timeline in
conjunction with existing European climate objectives, increased ambition, innovation and
speed will be needed to achieve the goal to gain independence from Russian gas and further
the European agenda of decarbonisation.

There is substantial potential within the building sector to achieve emissions reductions,
while also future-proofing the building stock through renovation. However, innovative
solutions are needed to increase the speed at which such gains can be achieved. One
promising solution is industrial prefabrication for renovation, the construction method
involving the production and design of structural building components or units in a factory
environment, which are then installed on site, rather than being constructed on site. In
some cases, industrial prefabrication can decrease construction time by 20-50% and thus
associated disruption, as well as create significant energy and cost savings.

However, despite current innovations in technology and process, significant innovation
drivers and preconditions are needed to ensure the feasibility of implementing industrial
prefabricated solutions. These include:

• The continued use and development of digitalisation, including facilitating building
  information modelling (BIM) solutions.
• Stability of the supply chain and adequate manufacturing facilities capable of supplying
  necessary components efficiently.
• Tailored financing solutions.

European, national and local action is needed, as well as support from private investors,
banks, housing associations and industry. The following report outlines the technological and
process innovations needed to facilitate the uptake of industrial prefabrication solutions in
renovation throughout Europe to meet climate goals, reduce energy demand and contribute
to future-proofing the building stock.