Contact
August 12, 2026
The challenge of carbon-neutral refurbishment of buildings in Luxembourg
In the face of new European climate requirements, buildings are gradually becoming risk assets. Samuel Majerus (LSC360) explains how risk asset management is transforming energy-efficient refurbishment into a genuine asset management strategy, balancing regulatory anticipation with the optimisation of built assets.
The property sector is gradually entering a new phase. Since the Paris Agreement (COP21), Member States have been implementing regulations designed to reduce carbon emissions from the building stock. The objective is clear: to achieve climate neutrality by 2050.
This shift is already being reflected in concrete measures in several European countries. In France, certain homes classified as ‘G’ in the energy performance certificate can no longer be offered for rent. In 2028, the ban will be extended to include properties rated ‘F’. In Belgium, several regions have also introduced energy renovation requirements: in Flanders, in particular, the purchaser of an energy-inefficient property must achieve a minimum level of energy performance within a specified timeframe following the purchase.
In Luxembourg, these requirements are still limited. However, for Samuel Majerus, Director of Environment & Sustainability at LSC360, the trend is inevitable. “European requirements will gradually be reflected in national legislation. The challenge, therefore, is to anticipate these changes rather than simply endure them.”
Managing a property portfolio as an asset portfolio
This anticipation involves, in particular, a Risk Asset Management approach, which consists of assessing a property portfolio not only from a technical perspective, but also in terms of the regulatory, environmental and financial risks to which each building is exposed.
“Every building presents a different level of risk. Today, we are already analysing aspects such as the presence of asbestos and pollutants, regulatory compliance and accessibility. In future, energy performance and carbon footprint will become equally decisive criteria in the valuation of a property asset.”
Samuel Majerus, Director of Environment & Sustainability at LSC360
As requirements evolve, a building with poor energy performance risks gradually losing not only its value but also its appeal to tenants.
The aim of this analysis is to provide owners with a comprehensive overview of their property portfolio and to prioritise the investments required.
“Our role is to identify which buildings should be renovated as a priority, which can be addressed in the longer term, and, in some cases, those for which renovation would no longer be economically viable. This approach enables us to draw up a multi-year roadmap, accompanied by a realistic budget estimate.”
Unlike a simple theoretical estimate, this planning is based on feedback from projects carried out by LSC360.
“The estimates we provide are based on our practical experience. They are informed by the actual refurbishment projects we support, enabling us to provide budgets that are consistent with market realities.”
Samuel Majerus, Director of Environment & Sustainability at LSC360
A multidisciplinary approach
This analytical capability also draws on the diverse range of expertise brought together within LSC360. Engineers, environmental specialists, regulatory and energy experts, and construction specialists work together to carry out a comprehensive assessment.
“Having these skills in-house enables us to quickly mobilise the necessary expertise for a single project. This integrated approach speeds up studies and ensures a coherent understanding of the technical, environmental and regulatory challenges.”
Luxembourg has many strengths
Whilst Luxembourg is still lagging somewhat behind in the pace of energy-efficient refurbishments, Samuel Majerus believes that the country nevertheless has solid levers to make this transition a success: “Luxembourg benefits from one of the most favourable subsidy schemes in Europe for energy-efficient refurbishment. New buildings already meet high performance standards (heat pumps, solar panels, insulation). The main challenge now lies in improving the existing building stock.”
The European Directive on the energy performance of buildings sets out, in particular, an ambitious renovation target for public buildings. This target sets the proportion of public floor space to be renovated each year at 3 per cent. A circular has indeed been sent to all Luxembourg municipalities, and a renovation strategy for public buildings has been in place since 2014. Just within the Public Buildings Administration, which manages around 1,500 buildings, the aim is to renovate approximately 120,000 m² per year.
The path forward is clear: assuming a constant rate, renovating 3 per cent of the building stock each year for thirty years would enable nearly 90 per cent of the building stock to be addressed by 2055. “The private sector, too, will need to gradually commit to an ambitious renovation programme. The longer we delay getting started, the more the effort will have to be concentrated into a short period, with annual renovation volumes that will become difficult for the market to achieve,” emphasises Samuel Majerus.
Major international investors have already factored this development in: “Players active across several European markets are already seeing the effects of the new regulations. This experience now sends a strong signal to Luxembourg property owners, who are also beginning to develop a strategy for managing their property portfolios.”
Renovate… or demolish
However, renovation is not always the most appropriate solution. LSC360 is currently overseeing the demolition of a Caisse d’Épargne building in Saarbrücken, which consists of successive extensions built over the decades. Technical analysis has shown that renovating it would neither meet the expected performance standards nor guarantee sustainable operation.
“Every building requires a specific analysis. In some cases, retaining the existing structure is the right approach. In others, rebuilding offers a better balance between energy performance, functionality and life-cycle costs.”
Samuel Majerus, Director of Environment & Sustainability at LSC360
When demolition is chosen, the aim is to preserve as many resources as possible. Using 3D scanning and material inventories, LSC360 identifies elements that can be reused or recycled in line with the circular economy. “The circular economy is about extending the lifespan of materials as much as possible. To achieve this, we need a precise understanding of the resources present in the building right from the earliest stages of the project.”
The technical tools exist, but the market still needs to be better structured to enable the effective recovery of materials from demolition.
Planning ahead to minimise risks
Beyond environmental considerations, renovation is gradually becoming an economic issue. Samuel Majerus cites, in particular, the case of a landlord faced with the potential departure of a tenant whose ESG objectives were no longer compatible with the building’s performance. “Our analysis enabled him to accurately assess the level of investment required to maintain the attractiveness of his property portfolio and mitigate this letting risk.”
For him, forward planning is now the key driver: “Landlords who begin strategic planning now have greater room for manoeuvre, both technically and financially. When regulatory requirements become widespread, demand for renovation will rise sharply and market capacity will come under even greater strain.”
Article published in Infogreen
