Urban renewal via the large-scale restructuring of post-war neighbourhoods will form a major challenge throughout Europe in the decades ahead. The neighbourhoods in question were constructed in the aftermath of World War II amid major housing shortages, decimated infrastructures and a scarcity of good-quality building materials. At present, the ageing housing stock and the accompanying social problems are posing serious threats to liveability in certain neighbourhoods (for overviews, see Murie et al., 2003; Turkington et al., 2004). The problems are usually multi-layered depending on the policy and the national and local context. Different kinds of interventions are required to prolong the physical, social and economic lifespan of these neighbourhoods. Restructuring programmes are needed to raise the quality of the housing stock and bring about a ‘better social mix’ in the population. They would also present opportunities for improving the energy efficiency of the housing stock – absolutely crucial if CO2 emissions are to be cut to the levels agreed under the Kyoto Treaty. However, the demolition, renovation and construction of housing also have a substantial impact on the environment, not least because they consume energy and use up scarce resources. In short, making post-war neighbourhoods sustainable is a massive challenge in terms of both results and processes.