The EU energy efficiency agenda needs a push – further financial support and strong regulation

The current economic situation in Europe creates concerns and barriers for local sustainable energy action. More attention needs to be placed on introducing innovative financing models, and redefining and improving existing funding schemes. Also more incentives are needed to stimulate private investments. The European Commission consultation on “Financial Support for Energy Efficiency in Buildings” collected views on how to improve the current financial schemes targeting energy efficiency.

Key concerns for Climate Alliance include:

(1) Ensuring long term financing

Securing long term financing is the most crucial issue related to funding and securing the implementation of long term strategies such as Sustainable Energy Action Plans (SEAPs) or Climate Plans. National and regional revolving funds could be an important instrument, favouring long term projects. Also solutions such as zero % loans would be a solution for small and medium sized municipalities.

(2) Using a variety of different funding solutions and instruments

Implementing energy efficiency measures can be profitable. And there is a great potential for creating partnerships with local authorities and private sector to tackle energy efficiency. However, there are certain measures that are not profitable and will need financial support such as tackling social housing.

(3) Building capacities and know-how

More information and capacity building is still needed in relation to energy efficiency. EU and national agencies should organize training and formation for different target groups such as architects and craftsmen. National platforms should be identified where user friendly information will be provided on national and regional funding instruments and opportunities.

Energy efficiency is often mentioned as a priority in policy discussions. However, at the same time Europe does not seem to be able to decide on binding targets for energy efficiency. In order to leap forward, the energy efficiency agenda requires strong regulation supported by adequate financing mechanisms. For example the Energy Efficiency Directive under development, must also carefully consider the funding needs of the measures proposed.

Climate Alliance is launching a working group on financing later this week in the context of its annual Conference in St Gallen (CH). The objective of the working group is twofold: it will exchange on the local financing solutions and mechanisms; and seek to influence the new EU budget 2014-2020 in particular showing the funding needs of local authorities in this field.

Climate Alliance response to consultation “Financial Support for Energy Efficiency in Buildings” (431 KB, pdf)

Further information about the consultation: here