• EuroPACE Talks

    Initiative of the EuroPACE project dedicated to conversations with experts in financing, energy efficiency, policy, urban regeneration and more. The purpose of the series is to elevate challenges and opportunities in the European home renovation market.

  • Discovering the role of public and private financing to unlock the home renovation market

    The 1st EuroPACE Talk is dedicated to a conversation with Juan Alario, former European Investment Bank Director

  • What are the main recent policy developments focusing on energy use in buildings in Europe?

    The EU has very ambitious objectives in relation to energy performance of buildings. The long term goal is to fully decarbonize European building stock by 2050. This is a very challenging target that would require massive amounts of investment, over 200 billion euros per year, according to the most recent studies1 . The 2018 revision of the Energy Performance of Buildings Directive (EPBD) reinforces the policies foreseen in the previous versions of the legislation and strengthens the energy efficiency requirements for existing buildings. For instance, it will be necessary to increase building renovation rate from the current 1% to 3 %, with the aim to promote deep renovation. The EPBD also mentions the importance of local action by regions and cities, as well as development of adapted finance to implement its objectives.

    What are the trends in private residential building renovation in Europe?

    There are substantial differences between European countries when it comes to the level of residential building renovation ambition. Overall, I notice that an increasing number of countries and local authorities are developing initiatives to renovate homes at high energy efficiency standards. For instance, in France, national or local programmes, such as Energies Posit’IF or Picardie PASS, are promoting deep renovation, while in Ireland, Super Homes is offering financing assistance for holistic retrofits. A common feature of these initiatives is the delivery of both technical and financial support to homeowners. Many of these initiatives are also supported by the EU institutions, through technical assistance, in particular the ELENA programme, grants from the Structural and Cohesion funds and financing from the EIB. Overall, I’m seeing a faster development of the home renovation market in Europe with a trend towards deep renovation.

    How can EuroPACE help unlock the energy efficiency renovation market?

    EuroPACE is a new financial platform aimed to adapt the successful PACE financing model, pioneered in the US, to Europe. Under the EuroPACE Program, the financing for home renovation is attached to the property and not an individual and is repaid through a property-like tax, thus EuroPACE is often termed on-tax financing. EuroPACE can speed up the developing the building renovation in Europe. It brings together adapted and competitive financing with technical advice to homeowners. Plus, EuroPACE financing can be combined with grants and subsidies.

     

    EuroPACE is well suited for renovations with a limited investment amount, which constitutes the majority of renovations. Once EuroPACE platform develops a substantial investment volume, similar to US PACE programs, it can tap directly into the financial markets, for instance, by issuing green bonds, and thus mobilize competitive private financing that can be offered to homeowners.

    ×
    EuroPACE will not use cookies to collect personally identifiable information about you. However, if you wish to restrict or block the cookies which are set by this website, or indeed any other website, you can do this through your browser settings. The ‘help’ function within your browser should tell you how.
    
    EuroPACE respects your privacy and takes necessary steps to protect the information collected through www.europace2020.eu