According to the European Commission, 35 million building units must be renovated by 2030 in the EU. How can we ensure that the financial burden doesn’t fall disproportionately on those least able to afford it and that vulnerable households or SMEs are not excluded? On June 3, 2024, BPIE, Europe’s leading independent think tank on the energy performance of buildings, and oPEN Lab partner, will host an online roundtable exploring this question with experts from policy, finance, research, and regional government.
The path to achieving EU climate and energy targets should be equitable and inclusive to leave no one behind in the transition. The EU aims to achieve a fully decarbonised building stock by 2050, which requires a renovation rate of 3% per year and an increased share of deep renovations. According to the European Commission, 35 million building units must be renovated by 2030 in the EU. How can we ensure that the financial burden doesn’t fall disproportionately on those least able to afford it and that vulnerable households or SMEs are not excluded?
On Monday, 3 June from 10:00-12:00 CEST, we will explore this question in a public roundtable with experts from policy, finance, research, and regional government. Using Positive Energy Neighbourhoods (PEN) as an example of innovative ways to deliver renovations, we will discuss opportunities and bottlenecks to access private finance and invest in PEN-like projects to generate inclusive and sustainable benefits for all stakeholders. We invite experts from the financial, energy and building sectors, policymakers, public authorities and other interested individuals to join us online for an engaging dialogue.
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Agenda
Positive Energy Neighbourhoods to scale up renovation efforts and foster thriving communities
A promising concept to scale up renovation efforts has gained prominence in the past years: Positive Energy Neighbourhoods (PENs), energy-efficient districts with an annual positive energy balance. Besides renovation, PENs provide a range of shared spaces, services and facilities, such as shared heat pumps, solar PV panels, heat and electricity storage, electric vehicle charging stations, and common spaces with greenery, water and biodiversity. In the oPEN Lab project the PEN concept is demonstrated and tested in three neighbourhoods in Belgium, Spain and Estonia. The pilots show that neighbourhood approach compared to single apartments or buildings enable the aggregation of energy assets and resulting demand-side flexibility. Other benefits are the stacking of revenue streams and thus greater generation of energy savings and economic benefits for homeowners. PEN also deliver multiple benefits at various levels: At a societal level, they contribute to lower GHG emissions, leading to lower mortality and morbidity rates and lower expenditure in public health. Improved accessibility to public and cycling infrastructure contributes to physical and mental health, as well as inclusion and affordability. At an individual level, improved indoor environmental quality of dwellings yields health and productivity benefits for the dwellers.
Innovative financing needed to upscale Positive Energy Neighbourhood renovations
To mainstream PENs and unlock their full potential, there is a pressing need for innovative financing models which account for the multiple long-term benefits represented by PENs to building inhabitants, owners and communities.
The upfront costs associated with deep renovation and the integration of innovative energy solutions like in PEN are often beyond the reach of the most vulnerable households and small and medium-sized enterprises (SMEs). Public funding, while crucial, is insufficient to meet the scale of investment required, and a diverse mix of blended financing sources, instruments and mechanisms is needed. PEN projects bring together a range of private and public stakeholders who have different risk and financial profiles and each can access loans with varying conditions. Thus, it is key to ensure that the financial burden doesn’t fall disproportionately on those least able to afford it and that vulnerable households or SMEs. A concerted effort to attract “ethical”, “impact”, and/or “patient” forms of private finance is essential, delivered through the development of tailored financial products and mechanisms that recognise the long-term positive co-benefits but also investment risks of PENs.