Thermal upgrading of buildings is definitely a crucial tool in our efforts to protect the climate and achieve the EU climate goals. In the European Union, the use of buildings accounts for as much as around 40% of energy consumption and 36% of CO2 emissions. Based on the assumptions of the European Green Deal, the Fit For 55 reform package and the resulting changes to EU regulations and directives, some 3% of public buildings will have to be renovated every year. Compared to just 0.3% of renovations that are now completed annually, a huge and urgent increase in the number and value of such investments is to be expected. This significant potential growth must be accompanied by strong and meaningful technical and financial support mechanisms to enable investments in tangible assets.
One already identified constraint are the indebtedness caps in the public sector which make it more difficult to fund energy efficiency projects. Therefore, alternative financing methods need to be developed that will not generate an additional deficit on the balance sheets of local authorities, which are currently struggling with diminishing revenues due to tax reforms. Soaring energy prices create an impetus towards accelerating building renovation and decarbonisation efforts.
Savings resulting from thermal upgrades of buildings should be sufficient to cover the cost of financing. A programme should be developed that would combine the ESCO formula with adequate financial engineering to guarantee that local authorities can fund the upgrades of public buildings without incurring more debt. The programme must also combine public (central) and private funding.
During the panel “A new key to easy funding of building transformations: the ESCO idea”, we will try to answer the question how to achieve this.
