Financing for efficient buildings: EU consultation

In January 2024, the European Commission launched two calls for evidence linked to increasing public and private investment in energy efficiency.

In response to the first, ‘Assessing the level of EU & national funding for energy efficiency’, we raised some key issues:

• The investment gap in efficient buildings
• The importance of collaboration with financial institutions
• The lack of visibility on national funding for energy efficiency

And we called for:

• A specific budget line for energy efficiency
• Engagement with banks and private lenders through portfolio performance requirements
• More funding for energy efficiency with the next Commission
• The involvement of national ministries in hub meetings to present renovation programme updates
• New financial instruments to support the renovation of inefficient buildings

In response to the second, ‘Recommendation on unlocking private investments in energy efficiency for Member States and Market Actors’, we highlighted:

• That inaction in the building sector is impacting households and public finances
• The growing risk of energy poverty and credit risks for banks
• The huge amounts of money spent by Member States to subsidise energy bills

And we called for:

• The EU to stimulate private investment through funds and create a Recovery and Resilience Facility 2.0
• The use of new tools to unlock private funding, engaging banks and private lenders
• The use of blended finance and technical assistance to leverage cohesion policy funding for energy renovations
• The creation of an EU Renovation Loan