Briefings

Briefing 3/2020: Financing Deep Energy Renovation: The Roles Of Policy Action, Public-Private Partnerships And Financial Tools For Private Dwellings

As part of the final month of the #GreenDeal4Buildings campaign, Renovate Europe has produced two complementary briefings looking at the issue of financing deep energy renovation. While this briefing focuses on the need for strong policy, the potential of public-private partnerships, and the particular challenges of financing renovation in the residential sector, a complementary briefing examines ways to leverage funds through the Just Transition Mechanism and carbon revenues.

Within the EU context and existing 2030 energy savings targets, Renovate Europe notes an annual investment gap of €130-200bn. Some 80% of the investment is needed on the demand side, of which 71% must be directed to the residential sector, which is noted as being particularly challenging because the need for both action and financing is extremely granular.

Over the longer term – i.e. to 2050 – boosting the energy renovation rate to 3% annually would achieve the ambitious goal of reducing energy demand in buildings by 80% while drastically cutting carbon dioxide (CO₂) emissions. In turn, this would cut total EU energy demand by 30%, reduce energy bills for all consumers, enhance productivity and increase property value and rentals. Such benefits could boost GDP by 0.7% annually; in 2020 alone, that would equal €39bn in additional public finances.

Renovate Europe calls upon EU institutions to ensure that the European Green Deal creates the ecosystem for deep energy renovation, including establishing stability that will eliminate the current ‘stop-go’ dynamic that erodes investor confidence. This includes making energy efficiency a top priority and planning beyond short-term measures.

You can read the briefing in full here.

by Caroline Simpson

Briefing 2/2020: Financing Deep Energy Renovation: Leveraging The Just Transition Mechanism And Carbon Revenues

As part of the final month of the #GreenDeal4Buildings campaign, Renovate Europe has produced two complementary briefings looking at the issue of financing deep energy renovation. This briefing focuses on leveraging funds through the Just Transition Mechanism and carbon revenues, and a complementary briefing examines the need for strong policy, the potential of public-private partnerships, and the particular challenges of financing renovation in the residential sector.

Calculating the actual cost of renovating 97% of the existing building stock in the EU is no easy task. Various methodologies have been applied, each being met with both applause and critiques. Generally, a realistic number seems to be in excess of €300bn per year for the next 30 years. To drive that number home, it’s helpful to think of this way: ~€1 bn per day, every day until 2050.

While that is a lot, it is worth noting that the International Energy Agency estimates that aggressively implementing energy efficiency on a global scale could – by slashing energy bills, reducing energy imports and alleviating energy poverty – deliver benefits of €500bn per year.

Within the EU context and existing 2030 energy savings targets, Renovate Europe notes an annual investment gap of €130-200bn. Some 80% of the investment is needed on the demand side, of which 71% must be directed to the residential sector. Over the longer-term – i.e. to 2050 – boosting the energy renovation rate to 3% annually would achieve the ambitious goal of reducing energy demand in buildings by 80% while drastically cutting carbon dioxide (CO₂) emissions. In turn, this would cut total EU energy demand by 30%, reduce energy bills for all consumers, enhance productivity and increase property value and rentals. Such benefits could boost GDP by 0.7% annually; in 2020 alone, that would equal €39bn in additional public finances.

Renovate Europe calls upon EU institutions to ensure that the European Green Deal creates the ecosystem for deep energy renovation, including establishing stability that will eliminate the current ‘stop-go’ dynamic that erodes investor confidence. This includes making energy efficiency a top priority and planning beyond short-term measures.

You can read the full briefing here.

by Caroline Simpson

Briefing 1/2020: Proof of how buildings renovation can help meet the European Green Deal

During its first 100 days in office, the Renovate Europe Campaign will be tracking the development of the #EUGreenDeal – and proving why it must include a strategy for deep energy renovation of the building stock in the EU. We’re launching a social media campaign to call for an ambitious #GreenDeal4Buildings. The new European Commission have now been in office for over a month, and so are one-third of the way into their first 100 days as a Commission, at the end of which a number of pieces of legislation should be proposed. On December 11, 2019, a communication on the European Green Deal was published.

Launched as “the EU’s Man on the Moon moment”, the European Green Deal is massively ambitious in scope and scale. While we appreciate the breadth of its eight “deeply transformative policies” and are pleased to see these backed up with a Roadmap of 50 related measures, Renovate Europe finds that the vital and underpinning roles of energy efficiency and building renovations are not fully considered. This, the second article published as part of the Renovate Europe 100 Day Campaign, offers a sampling of projects already undertaken to show that it is technically possible and financially feasible to dramatically reduce the energy demand of EU buildings – by up to 80% on average. This article is not only proof of what is possible today but demonstrates the value of building renovation as a means to help achieve the goals of the European Green Deal.

The article can be read in full here.

Keep up to date with the #GreenDeal4Buildings campaign via the Renovate Europe Twitter & LinkedIn.

by Caroline Simpson