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The Paris Agreement goals require net‐zero CO2 emissions by mid‐century. The European Commission in its recent proposal for climate and energy strategy for 2050 indicated the need for more intensified actions to substantially improve the energy performances of buildings. With the rate of new construction in Europe, the challenge is to increase both the pace and depth of building energy renovations. Several barriers inhibit the wide uptake of comprehensive energy renovations, including the inability or inertia to finance upfront costs of energy renovations. Despite various policies implemented to address some of these barriers, current investments in buildings remain at suboptimal levels. The paper reviews current financing practices for energy renovations and investigates some innovative instruments with a special focus on their applicability to residential buildings. In addition to "traditional" financial schemes such as subsidies, tax incentives, and loans, the paper assesses innovative financing schemes: On property tax and on‐bill financing, energy efficiency mortgages, and energy efficiency feed‐in tariffs. The paper also investigates the concept of one‐stop shops for building renovations and crowdfunding. The paper offers an assessment of the characteristics, benefits, and challenges of each analyzed financing instrument and provides policy recommendations for their successful implementation. In general, as financing instruments involve different stakeholders and due to complex nature of the sector, there is no single solution to accelerate energy renovation investment in buildings. The emerging financial models offer the potential to address the long‐standing barriers to investment in energy efficiency.

The Paris Agreement goals require net‐zero CO2 emissions by mid‐century. The European Commission in its recent proposal for climate and energy strategy for 2050 indicated the need for more intensified actions to substantially improve the energy performances of buildings. With the rate of new construction in Europe, the challenge is to increase both the pace and depth of building energy renovations. Several barriers inhibit the wide uptake of comprehensive energy renovations, including the inability or inertia to finance upfront costs of energy renovations. Despite various policies implemented to address some of these barriers, current investments in buildings remain at suboptimal levels. The paper reviews current financing practices for energy renovations and investigates some innovative instruments with a special focus on their applicability to residential buildings. In addition to "traditional" financial schemes such as subsidies, tax incentives, and loans, the paper assesses innovative financing schemes: On property tax and on‐bill financing, energy efficiency mortgages, and energy efficiency feed‐in tariffs. The paper also investigates the concept of one‐stop shops for building renovations and crowdfunding. The paper offers an assessment of the characteristics, benefits, and challenges of each analyzed financing instrument and provides policy recommendations for their successful implementation. In general, as financing instruments involve different stakeholders and due to complex nature of the sector, there is no single solution to accelerate energy renovation investment in buildings. The emerging financial models offer the potential to address the long‐standing barriers to investment in energy efficiency.

The Digital Revolution, including technologies such as virtual and augmented reality, additive manufacturing or 3D-printing, (general purpose) artificial intelligence, or the Internet of Things, has entered the public discourse in many countries. Looking back, it is almost impossible to believe that digitalization is barely featured in the 2030 Agenda or the Paris Agreement. It is increasingly clear that digital changes, we refer to them as the Digital Revolution, are becoming a key driving force in societal transformation. The transformation towards sustainability for all must be harmonized with the threats, opportunities and dynamics of the Digital Revolution, the goals of the 2030 Agenda and the Paris Agreement. At the same time, the digital transformation will radically alter all dimensions of global societies and economies and will therefore change the interpretation of the sustainability paradigm itself. Digitalization is not only an 'instrument' to resolve sustainability challenges, it is also fundamental as a driver of disruptive change. This report that focuses on the Digital Revolution is the second one by The World in 2050 (TWI2050) that was established by the International Institute for Applied Systems Analysis (IIASA) and other partners to provide scientific foundations for the 2030 Agenda. This report is based on the voluntary and collaborative effort of more than 50 authors and contributors from about 20 institutions, and some 100 independent experts from academia, business, government, intergovernmental and non-governmental organizations from all the regions of the world, who met four times at IIASA to develop science-based strategies and pathways toward achieving the Sustainable Development Goals (SDGs). Presentations of the TWI2050 approach and work have been made at many international meetings such as the United Nations Science, Technology and Innovation Forums and the United Nations High-level Political Forums. In 2018, the first report by TWI2050 on Transformations to Achieve the Sustainable ...