The European Union hopes to attract private funds for energy efficiency projects through the creation of a special coalition / Article

The EU has adopted a “green course”, one of the goals of which is to increase energy efficiency. The block has ambitious plans. The Energy Efficiency Directive approved last year provides that the joint final energy consumption of the member states in 2030 should be at least 11.7% lower than what was predicted in 2020.

The new regulations stipulate a special obligation for the public sector to achieve an annual reduction in energy consumption of 1.9%, from which public transport and the armed forces can be excluded. In addition, member states will be obliged to annually renovate at least 3% of the total area of ​​buildings belonging to state institutions.

Buildings account for 40% of total energy consumption and 36% of greenhouse gas emissions in the EU. Therefore, the EU Buildings Energy Efficiency Directive stipulates that from 2030 all newly constructed buildings must be zero-emission buildings.

Last time to act to find funding

Achieving these and other energy efficiency targets set by the EU will require significant investment. That’s why the European Energy Efficiency Financing Coalition was launched this week.

Paula Piņu, the official responsible for energy efficiency in the Directorate General of Energy of the EC, said that the goal of the coalition is to build a connection between the member states, financial institutions and the EC in order to find an opportunity to finance energy efficiency measures.

“As you know, energy efficiency has been and remains one of the main pillars of the European Green Deal and the REPowerEU plan. And now we need to think about its implementation, because it is really a key tool for promoting the resilience of our energy markets, and we want to use it well too when we decarbonize buildings, when we decarbonize industrial sectors. To realize this goal, it is important to find solutions – public, private or mixed,” said Pinu.

EU Energy Commissioner Kadri Simsone emphasized that it is high time to act in order to implement the bloc’s energy efficiency goals, which will also depend on the implementation of the Green Course.

“Energy conservation is the fastest and cheapest way to eliminate dependence on fossil fuels and reduce energy bills for consumers. And equally important, the European Union is no longer dependent on Russian fossil fuels. We must find solutions to reduce the lack of funding for energy efficiency Continuous improvement of energy efficiency requires 275 billion euros annually for the renovation of buildings. Without adequate funding, we risk jeopardizing the European Union’s climate goals, which must be achieved by 2030, and the achievement of climate neutrality by 2050,” warned the energy commissioner. .

An important role is envisaged for the European Investment Bank

Simsone also emphasized that the European Investment Bank (EIB) will play a major role in the European Energy Efficiency Financing Coalition.

Last year, EIB investments in energy exceeded 21 billion euros, of which 8.3 billion euros were directed to projects related to the promotion of energy efficiency.

EIB Vice President Tomas Estros said that the institution is ready to be actively involved in promoting investments in energy efficiency projects. However, he admitted that there are several problems that prevent attracting investment for such projects: “First, fragmentation, small project size and high transaction costs. This is especially true for the complicated procedures to access funding and grants. One of the solutions is combining projects. Second, financial and capital constraints. Many commercial banks face uncertainty regarding energy efficiency investments. Risk-sharing instruments can partially remove this uncertainty, thus encouraging more private sector capital and making energy efficiency investments attractive to more financial institutions.”

The EC hopes that in the coming years, the amount of private investments attracted to energy efficiency projects will exceed 600 billion euros annually.