Urban Regeneration

Urban regeneration

Green directive and house plan, challenges for growth after pnrr

"The theme returns to the centre," says Edoardo Croci (Bocconi). "The real Milan model has never been realised. Yes to incentives as long as they have measurable effects'.

by Anna Migliorati

20 January 2026

5' min read

Translated by AI

Versione italiana

Key points

Green directive and European house plan the guidelines after the pnrr
Incentives as long as they are measurable
Intervening on cities affects energy, environment, security, transport, social differences
Standardisation and patient capitals, advantages and limitations of the 'Milan case'

5' min read

Translated by AI

Versione italiana

(IlSole24Ore-Radiocor) - The issue of urban redevelopment must return to the centre of both the political and economic debate, without preclusions on public incentives or foreign capital, in order to continue to invest in cities and grow even after the end of the pnrr. Edoardo Croci, lecturer in environmental economics at Bocconi University, argues: "Housing must return to the centre," he says, "because so many issues that can no longer be postponed are linked to housing: energy, the environment, safety, transport and inequality. First the superbonus, then the pnrr have already had an impact on housing policies in recent years, but without a real organic programme, Croci argues: "the pnrr has certainly been important in guaranteeing Italia's growth, but it is also a tool that has favoured investments where there were already ready projects. So without a real organic vision, and this has been a limitation'.

Green directive, who pays for efficiency

On the horizon, once the pnrr experience is over by 2026, there are two other European-driven guidelines destined to have an impact on Italian cities: on the one hand, the green homes directive, which imposes energy efficiency and consumption targets affecting a large part of the building stock, and on the other, the announced housing plan to address housing shortages and inequalities. On the first front, 'there are those who claim that making buildings more efficient will be a cost for citizens, but in the past we have experienced exactly the opposite,' Croci explains, 'energy requalification interventions have mostly been a cost for the state and a benefit for citizens. Even the super bonus reached 110 per cent, the facade bonus reached 90 per cent. I think it is time for a serious debate, without an ideological clash, on whether this time it should be a cost for citizens or a cost for the state'. The goal, on the other hand, is ambitious: for new buildings, it is zero net emissions by 2030 and, therefore, an intervention on the entire chain, ranging from boilers to renewable energy infrastructures; on existing buildings, the goal is to reduce energy consumption by 16% immediately and by 2035 it becomes 20-22%. "This is a very ambitious goal because it requires priority intervention on the least efficient buildings, i.e. 5 million dwellings, which in most cases we have to think of as belonging to owners who are not in the high income brackets. Unthinkable a system that would put the cost of efficiency improvements on them because, very trivially, they would not be able to pay it. That is why I think we will move towards more forms of incentives.

In order not to repeat past mistakes, continues the Bocconi professor, 'whatever new instruments we necessarily decide to put in place, I believe we must start by giving incentives based on the actual benefit in terms of energy efficiency. The problem in the past has been that, without any kind of actual measurement of an impact in terms of reduced energy consumption or reduced carbon emissions, we have found ourselves at the paradox that some interventions have had a reduction cost per tonne of CO2 of several hundred euros. Unnecessary costs'. What tools, then, should be put in place? "Definitely incentives linked to a measurement of effects. Then, on the one hand, optimising public spending, which, of course, again can only be done by means of tax deductions, activating third-party financing mechanisms, ensuring that the cost of efficiency is actually repaid by the reduction in consumption. There is a bill involved that belongs to families, but also to the country'.

In order to take full advantage of the opportunity, Croci argues, efficiency improvements must, however, go hand in hand with real urban requalification, because "there is no doubt that one of the limitations of this directive is to look mainly at the building in terms of its envelope, systems and windows and doors, while we should increasingly be able to link these interventions to broader social, territorial and environmental benefits. That means energy production, green spaces that reduce heat oases, efficient public transport, services and safety. This means thinking in a logic of urban regeneration'.

Housing plan coming from Brussels

On the other hand, the big European investment after the end of the pnrr in terms precisely of urban redevelopment is called the housing plan. A plan that has yet to be written: "Right now we only have generic guidelines: there is talk of one hundred thousand dwellings, there is talk of rents accessible to large sections of the population, there is talk of the involvement of private individuals who can then construct these buildings while still getting a return. This is a challenge since the need for housing is above all where property values are highest,' recalls Croci. "This means, on the one hand, standardising certain processes in order to significantly lower costs by also using modularity, and there are some pilot experiences on this; on the other hand, management models mainly dedicated to renting and with the involvement of patient investors".

The Milan case

In Milan, the experiences of urban redevelopment in recent months have also resulted in investigations by the prosecutor's office and the blocking of works, but "the real Milan model has never been applied," says Croci, who has experience as councillor for mobility, transport and the environment in the Lombard capital in Letizia Moratti's junta. "Milan's impetuous real estate development is unique in Italia, it stems from foreign investment by large funds. It may have had negative aspects and creates inequalities, but it also has positive ones because it makes capital flow, creates a virtuous economy and a series of opportunities,' he concludes. 'So, be careful in calling it an absolute evil, because we want to have international investment in our cities and capital arriving. It is a question of diverting them not only to the top end, but to think about all the different needs and different market segments that are not all with enormous spending power, from the self-sufficient elderly to young couples or singles. If a serious housing plan is made, the housing gap can certainly be reduced. Of course, in a city like Milan, the challenge is considerable because, beyond good intentions, there has been a lack of capacity, including political capacity, and this difference between super-luxury buildings and people with less spending power has been exacerbated". An issue, he reiterates, 'that it is time to return to the centre of the debate'.