Buildings are central to EU energy efficiency policy,
as nearly 40% of final energy consumption (and 36% of greenhouse
gas emissions) is in houses, offices, shops and other
buildings. Moreover, the sector provides the second largest
untapped and cost-effective potential for energy savings after the
energy sector itself. There are also important co-benefits from
making buildings more energy efficient, including job creation,
fuel poverty alleviation, health improvements, and better energy
security and industrial competitiveness.
In accordance with Directive 2010/31/EU on the Energy
Performance of Buildings, the report provides the main results of
an analysis the Commission is required to present on the
effectiveness of EU funding, funds from the European
Investment Bank (EIB) and other public finance institutions, and
the coordination of Union and national funding. The Report also
seeks to indicate how financial support for energy efficiency in
buildings can be improved, in accordance with the new Directive on energy efficiency
(2012/27/EU).
European Union financial support: the EU has supported the improved energy performance
of buildings for many years by means of a range of
programmes, in particular in the context of its cohesion,
research and enlargement policies.
The European Energy Efficiency Fund (EEE-F)
with a volume of EUR 265 million, with funding coming from, among
others, the European Union. The Intelligent Energy Europe II
(IEE II) Programme with a budget of EUR 730 million, of which
around 50% is allocated to energy efficiency.
The European international financial
institutions (IFIs) operate their own investment instruments
for energy efficiency in buildings. From 2008 until the end of
2011, the EIB mainstreamed energy efficiency into its
operations, resulting in a total funding volume of EUR 4.8 billion
in the EU, of which EUR 1.7 billion were in the building
sector.
Lastly, national governments also use their own
budgets to support energy efficiency in buildings. Many of the
existing measures have been reported to the Commission through the
National Energy Efficiency Action Plans (NEEAPs).
Main conclusions: the
picture that emerges from the examination of the European building
stock, the existing financial support measures for energy
efficiency in buildings and the different market barriers, shows
that:
- the situation differs significantly between Member
States in terms of their building stock, the financial support
measures in place and the relevant market barriers;
- although investments in building energy efficiency
are increasing and there are many best-practice examples of
instruments that are delivering cost-effective energy savings,
there is only limited information on the effectiveness of the
different financial support measures, both at EU and national
levels;
- important barriers hampering further uptake of energy
efficiency investments in buildings
persist, including a lack of awareness and expertise regarding
energy efficiency financing on the part of all actors; high initial
costs, relatively long pay-back periods and (perceived) credit risk
associated with energy efficiency investments; and competing
priorities for final beneficiaries;
- if the EU is to meet its 2020 energy efficiency target
and its ambitions for further savings towards 2050, it is
imperative to improve the financial support for energy
efficiency in buildings. For this to happen, it is necessary to
ensure that the regulatory framework is properly implemented,
more financing is made available and key barriers are
addressed;
- although the Commission is engaged in many initiatives
and activities to support these objectives, given the nature of the
building stock and sector, and their responsibility for
implementing the relevant legislation and addressing national
market barriers, the Member States are in the driving seat to
ensure that more cost-effective investments take
place;
- the importance of a tailor-made approach to energy
efficiency financing means that close cooperation between public
authorities, finance providers and the building sector is
essential;
- last but not least, building owners will have to be
convinced of the benefits of making their properties more energy
efficient, not only in terms of a lower energy bill but also as
regards improved comfort and increased property value. This may
well be one of the greatest hurdles to overcome in making Europe's
buildings more energy efficient. However, the macroeconomic case
for doing this is strong and targeted incentives and awareness
raising efforts to change attitudes will be necessary. The building
renovation roadmaps that Member States have to establish under the
new EED will be a key tool in this context and should explicitly
address these issues.