New Economic Thinking - Enabling a just transition of the built environment in Europe

Overview of the Report

The study “New Economic Thinking – Enabling a just transition of the built environment in Europe” is produced by Dark Matter Labs, a research organisation focused on systemic change in response to climate and inequality crises. Lead author Emily Harris and the DML Project Team (Vlad Afanasiev, Aleksander Nowak, Indy Johar, Ivana Stancic, Mihai Chereji) collaborated with Laudes Foundation, which funds innovative housing and climate initiatives. The report examines Europe’s built‑environment transition, identifying four major bottlenecks, mapping collaborative housing models, and outlining funding challenges.

Key Findings on Constraints

Four systemic constraints shape Europe’s built environment: labour shortages, escalating energy costs, material scarcity, and ecological limits. The report notes that retrofitting the EU building stock will require roughly €275 billion annually to meet 2030 climate targets. Material pressures are illustrated by the need to mine 700 million tonnes of copper in just 22 years to meet demand. Energy price spikes further threaten affordable heating and cooling, while biodiversity loss limits the availability of bio‑based building resources.

Collaborative Housing Landscape

The research maps two groups of innovators. Core organisations include Community Land Trusts (e.g., CLT Ghent, Stadtbodenstiftung Berlin), cooperative networks such as MOBA and Sostre Civic, and market‑making actors like Bright Green Futures. Adjacent pathway organisations provide support functions: Positive Money Europe campaigns for inclusive finance; GRI develops construction‑sector sustainability standards; Mobius and BRDA promote material circularity. The mapping highlights a vibrant ecosystem of actors seeking to decouple housing provision from speculative market dynamics.

Funding Strategies and Gaps

Funding analysis shows that traditional commercial finance rarely supports collaborative models, especially in less supportive political contexts. Philanthropic capital, while helpful, cannot meet the scale required. Positive Money Europe proposes unlocking ECB and EIB loans for green renovations, and the report calls for supportive legislation, planning tools, and anti‑speculation policies to enable scaling of cooperative housing. Civic‑industry partnerships, such as those led by Civocracy and Peter McVerry Trust, are identified as critical for bridging finance gaps.

Policy Recommendations for a Just Transition

The authors recommend three strategic themes: (1) a new cultural logic that reframes land and housing as common‑good assets; (2) an interconnected valuation system that captures social, health and environmental benefits of housing; (3) the creation of next‑generation institutions—city land trusts, public‑city banks, and carbon‑guardian bodies—to orchestrate financing, regulation and knowledge sharing. They argue that without these reforms, the four bottlenecks will continue to impede sustainable housing delivery.

Pan‑European Impact and Outlook

The report emphasizes that Europe’s built environment transition is a trans‑national challenge, requiring coordination across EU, Norway, Switzerland and the UK. It cites examples such as the Home Silk Road project in Lyon, the Co‑Haty refugee housing initiative in Ukraine, and the Bright Green Futures eco‑development model. The authors conclude that a just transition is feasible if collaborative housing models receive adequate financial mechanisms, supportive policy frameworks, and widespread civic engagement.