The European Energy Commissioner, Kadri Simson, has announced the launch of the Energy Efficiency Financing Coalition, an initiative aimed at securing a significant 275 billion euros annually for the renovation of buildings across the EU. Simson emphasized that without this investment, the EU could miss its energy efficiency targets for 2030 as it works towards achieving climate neutrality by the middle of the century.
The coalition will bring together member states, financial institutions, and European Commission departments in a three-tiered system, with regular meetings chaired by the European Commission and expert groups from key stakeholders. Each member country is required to create its own national hub and appoint a chairperson to lead a results-oriented team focused on providing concrete financing solutions tailored to different markets.
This initiative was presented as part of the “Save Energy” communication, alongside the REPowerEU plan, which aims to end the EU’s dependence on Russia’s fossil fuels and address the climate crisis. Energy conservation is a key component of this plan and is viewed as the fastest and cheapest way to reduce fossil fuel dependence and lower consumer energy bills.
The recently approved “green homes directive” will require EU member states to renovate at least 16 per cent of the worst-performing non-residential buildings by 2030 and 26 per cent by 2033, with additional targets for residential buildings. Despite some opposition, the directive aims to significantly reduce energy consumption in buildings.
The European Investment Bank (EIB) is expected to play a major role in the Coalition, with the EU commissioner expressing confidence in the EIB as a key partner for the implementation of many energy efficiency-related projects.
Overall, the EU’s ambitious energy efficiency goals will require substantial public and private investment to ensure they are more than just numbers on paper. The establishment of this Coalition marks a significant step forward in addressing the monumental task of renovating the entire EU building stock to meet energy efficiency targets.