Decarbonisation as a Catalyst for Urban Renewal

Opportunity 

The built environment is responsible for around 37% of energy-related carbon dioxide emissions in Europe. Decarbonising this sector is critical for meeting climate targets and limiting global warming to 1.5°C. 

Berlin, like many European cities, faces the challenge of transforming a diverse and ageing building stock to meet ambitious climate goals, while ensuring the transition is equitable and avoids asset stranding. 

Recognising the complexity of this task, Berlin sought impartial, expert guidance on how decarbonisation can serve as a catalyst for urban renewal, supporting economic vitality, social equity, and environmental sustainability. 

Solution 

In 2023, ULI convened an international Advisory Services Panel of multidisciplinary experts to develop scalable, practical strategies for neighbourhood-scale decarbonisation in Berlin. 

The panel focused on two contrasting case study areas to test and refine its recommendations: 

• Kurfürstendamm High Street: A landmark commercial district struggling with ageing building stock, shifting consumer trends, rising vacancies, and declining asset values. The panel explored how to reposition the area as a sustainable, future-ready commercial hub balancing public and private interests. 

• Buckower Höfe: A large-scale affordable housing estate facing significant energy inefficiencies and socioeconomic challenges. The panel examined how to deliver a just transition that modernises infrastructure, preserves affordability, and strengthens community resilience. 

Through immersive fieldwork and stakeholder engagement, the panel developed guiding principles for using decarbonisation as a driver of urban renewal, including: 

• Aligning decarbonisation with local social and economic priorities. 

• Creating collaborative governance models that bring together public, private, and community stakeholders. 

• Unlocking financing mechanisms that enable deep retrofits while maintaining affordability. 

• Prioritising data-driven decision-making to target the highest-impact interventions. 

Impact 

The panel’s recommendations provided Berlin with a practical roadmap for neighbourhood-scale climate action that goes beyond emissions reduction alone. 

By linking decarbonisation to economic revitalisation, social inclusion, and improved liveability, the panel demonstrated how the transition to net zero can create thriving, resilient communities. 

Berlin is now using these insights to inform planning processes, investment strategies, and policy development—offering a replicable model for other cities across Europe facing similar challenges.