EU coalition to tackle building retrofit financing launched

The Green Finance Institute has launched the Coalition for the Energy Efficiency of Buildings Europe (CEEB Europe) and released a paper – Unlocking the Trillions: Public-private innovation to deliver the EU’s renovation wave ambition.

The paper highlights that a combination of finance market maturity, enabling environment, and policy ambition are the pillars upon which financial innovation stands and the landscape for these differs across Europe. The GFI will partner with like-minded national finance and real estate organisations across Europe to form coalitions, and collaborate with networks already in place, to share knowledge and best practice, catalyse product development, and advise on policy levers to create and scale markets for building renovation.

In July, the European Commission unveiled its ‘Fit for 55’ package of legislation, with a series of proposals for buildings, supporting last year’s Renovation Wave Strategy. The EU aims to double the renovation rate by 2030 and is supporting this with the EU’s Recovery and Resilience Facility – 37% of the investment available needs to flow toward climate mitigation projects, including building renovation. Yet outside this substantial funding commitment, the additional investment needed to meet the 55% target is still €275bn per year to 2030, which is the largest climate investment shortfall of any sector.

Dr Rhian-Mari Thomas OBE, Chief Executive, Green Finance Institute, said: “While small compared to the scale of what is needed, Europe’s recovery budgets have the potential to kick-start the widescale greening of the building stock. However, to drive the necessary investment of over €3.5 trillion in renovation to 2030, a collective, outcomes-focused approach will be key. We’ve launched CEEB Europe to work in partnership with others to crowd-in private funding to this sector, by convening coalitions of property, finance, policy and supply chain experts to examine and develop the solutions to overcoming the barriers to investment.”

Stephen Richardson, Director, Europe, World Green Building Council, said: “Our network of Green Building Councils is working on tackling these systemic barriers and we welcome the contribution that this new CEEB report makes to this important task. By investing now, we can unlock the benefits of a high quality, high performance building stock and tackle the 36% of Europe’s carbon emissions, which buildings contribute. The alternative is many more stranded assets that take us closer to climate catastrophe. It’s time to get collaborating!”

As a next step, CEEB Europe will partner with key networks and players in the finance and real estate sectors of high-potential, high-ambition countries to join or set up in-country coalitions mirrored on the success of CEEB UK, the purpose-led innovation platform for renovation finance. These coalitions will work through the country-specific challenges and opportunities of widescale renovation of (in the first instance) housing.

James Hooton, Programme Director, CEEB Europe, said: “The public funding attached to Europe’s recovery plans can start the renovation wave, but it cannot sustain it. Therefore, these funds represent a key opportunity to develop innovative new policies and public finance solutions to crowd-in private capital. CEEB Europe exists to collaborate with actors in member state countries to unlock the financial, as well as data, regulatory and policy barriers to renovate their buildings, and to create new products and tools to accelerate private sector investment towards meeting the ambitions of the Renovation Wave. We want to partner with equally dynamic organisations in this space, to examine the challenges on a country-specific basis, and then design and bring to market the innovations to overcome them.”

 

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