The Energy Transition Must Be Socially Inclusive
Across Europe, buildings account for 40% of energy consumption and over one-third of CO₂ emissions. Yet 75% of the EU’s building stock is energy inefficient. At the same time, energy poverty is rising, hitting vulnerable homeowners, especially those living in old and poorly insulated homes. In order to meet the EU Energy Performance of Buildings Directive (EPBD) goals, including 60% emission reduction by 2030 and a zero-emission building stock by 2050, housing renovation is crucial.
of the building stock
in the EU is energy
inefficient
40%
of energy consumption
is related
to buildings
However, existing public tools often fail to reach the poorest households, who can’t access loans or pre-finance state grants. Without an inclusive solution, Europe faces a wave of “renovictions” and green gentrification, where low-income households are displaced by the very policies meant to improve their homes. This risks deepening the housing crisis while undermining climate goals.
The Upcycling Trust Model as a Solution
Funded by the Interreg Programme, the Upcycling Trust model offers an innovative, twofold solution to Europe’s renovation and housing crises by combining:
- Circular energy renovation of substandard homes
- Permanent affordability through Community Land Trust (CLT) or Organisme de Foncier Solidaire (OFS) models.
This approach upgrades homes to high energy standards without indebting homeowners or exposing them to real estate speculation. Instead, the land is transferred into community ownership - immediately or once the homeowner decides to sell or rent the house- securing affordability for the long term. Its goal is to build a replicable model that cities and regions across Europe can adopt to tackle the dual challenge of climate resilience and housing justice.
By strengthening cross-border cooperation, the project unites diverse territories around a shared solution to a common European challenge, ensuring that the green transition is not only ecological, but also socially fair and inclusive.
Efficiency of Investment, Permanence of Impact
The Upcycling Trust model demonstrates a highly efficient use of investment by linking energy renovation to long-term affordability and reuse of the existing housing stock.
Rather than building new homes ex novo, a process that is expensive, slow, and resource-intensive, the model focuses on circular renovation of existing buildings. This approach minimizes environmental impact by preserving materials, reducing construction waste, and avoiding the degradation of green areas. At the same time, by integrating renovated homes into Community Land Trusts (CLTs) or Organismes de Foncier Solidaire (OFS), the model ensures that these dwellings remain permanently affordable.
This means that a single upfront investment:
- Delivers deep energy renovation
- Creates lasting social housing from the existing stock
- Guarantees that the value generated stays in the community over time
In doing so, the Upcycling Trust offers a replicable, future-proof solution that addresses both the climate emergency and the affordable housing crisis, with measurable long-term returns on public and private investment.
Where It Is Happening: Five Pilot projects across Europe
To make this vision concrete, the Upcycling Trust Model is currently being tested through five pilot projects in cities facing real-life housing and renovation challenges. Each pilot adapts the Upcycling Trust method to its local legal, architectural and social context. This proves that a fair energy transition is possible and also scalable.
- Brussels, Belgium → Led by CLTB, the pilot supports the renovation of owner-occupied homes in vulnerable neighbourhoods and their integration into the CLT model, securing long-term affordability.
- Lille, France → LMH, with the support of the City of Lille, Habiter 2030 and the Métropole de Lille, are setting up the renovation of social and privately-owned housing units from the 1950s, in a low-income neighbourhood. They aim to trigger grouped renovations while expanding the implementation of the OFS model.
- Rennes, France → Developed in partnership with the Metropolis of Rennes and regional stakeholders, this pilot aligns with broader municipal strategies for housing and urban resilience, particularly in neighbourhoods facing speculative pressure.
- Ghent, Belgium → Led by CLT Ghent, this pilot transforms a fire-damaged, vacant building into mixed-use cooperative housing, highlighting co-ownership and material reuse as key components of circular renovation.
- Cork, Ireland → Coordinated by Self-Organised Architecture, the project is in the planning phase and will focus on reactivating underused or vacant properties to deliver climate-smart, community-led, and socially secure housing.