  We discuss various basic conceptual issues related to coarse graining flows
in quantum gravity. In particular the requirement of background independence is
shown to lead to renormalization group (RG) flows which are significantly
different from their analogs on a rigid background spacetime. The importance of
these findings for the asymptotic safety approach to Quantum Einstein Gravity
(QEG) is demonstrated in a simplified setting where only the conformal factor
is quantized. We identify background independence as a (the ?) key prerequisite
for the existence of a non-Gaussian RG fixed point and the renormalizability of
QEG.
