The building sector accounts for 40% of EU energy use and 36% of carbon emissions, making it a key target for energy efficiency and sustainability. Achieving climate goals requires substantial investment in both new construction and renovation of existing structures. Key financial mechanisms supporting this transition include:
Sustainable Loans/Mortgages: offer lower interest rates for energy-efficient properties.
Green Bonds: raise funds for eco-friendly projects like renewable energy, guided by the EU Taxonomy to prevent greenwashing.
Energy Performance Contracts (EPCs): agreements where Energy Service Companies (ESCOs) guarantee energy savings through retrofits, using models like guaranteed savings, shared savings, and chauffage.
Public-Private Partnerships (PPPs): government-private sector collaborations to fund sustainable infrastructure.
EU Structural Funds/Grants: support public building energy efficiency via the European Regional Development Fund (ERDF) and Cohesion Fund.
These mechanisms incentivise sustainable development and reduce environmental impact.
