As we enter the delivery phase of the energy transition, renovating buildings must be at the heart of our strategy. This will cut utility bills for households and businesses, create local jobs, boost competitiveness, and reduce our dependence on energy imports. Renovation must be a clear priority in both EU policies and the EU budget.
The upcoming Multiannual Financial Framework (MFF) will be the financial backbone supporting the EU’s energy transition. The Renovate Europe Campaign advocates for a simpler, larger, and more accessible budget to meet the energy efficiency goals set by the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED).
The primary source of EU funding for energy renovation, the Recovery and Resilience Facility, is set to end in 2026. Remaining Cohesion Funds and the Social Climate Fund (SCF) are expected to only partly compensate for it. With an investment gap estimated at €150 billion per year, the Commission and Member States must prioritise energy renovations in the future EU budget and develop new tools to unlock private finance to meet Europe’s targets for efficient buildings.
To ensure continued progress, the Renovate Europe Campaign calls on the European Commission to:
➢ Dedicate increased EU funding to deliver efficient buildings
- Extend the deadline of the Recovery and Resilience Facility (RRF) to 2028
- Support the implementation of National Building Renovation Plans through the MFF and SCF
- Mainstream the energy efficiency first principle in the European Competitiveness Fund
- Address the non-financial barriers to energy renovations (information, skills, permitting)
➢ Unlock private finance for energy renovations
- Stimulate private investments through EU funds and guarantees
- Facilitate the use of public-private partnerships and blended finance to increase the renovation rate
- Encourage the emergence of new tools to unlock private funding (Renovation Loans, Mortgage Portfolio Standards)
➢ Simplify the EU’s energy efficiency budget lines
- Address the fragmentation of funding opportunities by adopting a policy-based Multiannual Financial Framework with a dedicated line for energy-efficient buildings
- Simplify the application process for EU funding through the harmonisation of conditions and eligibility requirements. Many of the funding possibilities remain untapped because of significant bureaucratic hurdles.
- Develop a robust monitoring and evaluation system to track the impact of renovation investments on energy savings, emissions, and job creation
➢ Improve the absorption rate of EU funds
- Prioritise the implementation of Fit for 55 legislations in the allocation of EU funds
- Empower competent authorities (regions/cities) to elaborate local investment plans including EU funds
- Raise awareness and communicate on funding opportunities
- Provide technical assistance through the ELENA mechanism and the Technical Support Instrument