Financing Energy Renovation in Buildings – Guidance on financial schemes with a focus on Bulgaria and Romania
The guidance, developed under the framework of the EUKI project Our Buildings, maps available funding streams for energy efficiency improvements in buildings. Focussing on the accessibility of financial resources it highlights success factors of effective schemes and measures to overcome the existing barriers.
The amended EU Energy Performance of Buildings Directive (EPBD) sets a clear direction for the full decarbonisation of the European building stock by 2050. As part of the extended requirements of the long-term renovation strategies (LTRS) Member States are to support the mobilisation of investments into the renovation required to achieve the goals set by the directive. Access to financial resources by public and private funding must be ensured on all levels, as stated in paragraph 3 of the Article 2a of the revised EPBD.
Public funding by the European Union Structural and Cohesion Funds are available but have to be channeled successfully through national and regional programmes to speed up energy efficiency investments in residential and public buildings. Additional private finance contributions have to be increased to achieve the needed investments. As the new LTRS requirements also demand national governments to include actions contributing to the alleviation of energy poverty, financial schemes should predominately target the worst-performing buildings to improve the well-being of the most vulnerable people who are often threatened by energy poverty.
Innovative instruments, such as Green Bonds and On-Bill Schemes offer the chance to mobilise additional private resources and improve cooperation between homeowners, utilities and institutional investors.
The guidance was developed under the framework of the project ‘Our Buildings‘, supported by the European Climate Initiative (EUKI) of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The project aims at developing capacity and transferring knowledge to enable municipalities and civil society to integrate building renovation strategies in local and National Energy and Climate Plans (NECPs) in Romania and Bulgaria.