Financing energy efficiency in buildings

A review of selected existing financial instruments and measures.

cover Financing EEThis report reviews a selection of existing financial instruments and measures. Twelve practical case studies cover a range of energy efficiency policy instruments and measures across Europe. The aim is to prepare the analytical basis for an in-depth discussion on “how to secure the energy efficiency financing in buildings retrofitting”, and “how to contribute to the future generation of new ideas and approaches on scaling up energy efficiency investments”.

With buildings accounting for 40% of total energy consumption in the European Union and more than half of them being in the residential sector, the greatest savings potential lies in the existing building stock. However, despite the proven cost-effective opportunity to reduce energy consumption, a significant proportion of the energy efficiency improvement potential is not being realised due to information failure, high subsidies, lack of technical expertise, uncertainty over savings, and externalities. The focus of this report is on financial barriers because they are crucial in inhibiting investment in energy-efficient building refurbishment.

European Union financial instruments and other measures are being put into place or adapted with the aim of stimulating energy efficiency related measures. This report found that a combination of different tools may be more effective than single measures over the long-term. In additions to that, energy-savings obligations imposed by government could possibly increase investment in energy efficiency, but a strong political will remains essential.

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