In response to the pressing need for funding to implement energy efficiency measures across the European Union, the European Commission announced the launch of the European Energy Efficiency Financing Coalition. This initiative aims to facilitate financing for the execution of EU legislation geared towards reducing energy consumption, particularly in the bloc’s building stock.
The coalition’s focus will be on linking member states with financial institutions to secure the necessary funds for initiatives such as the Energy Efficiency Directive (EED) and the European Buildings Performance Directive (EPBD), both adopted recently.
Energy efficiency has emerged as a cornerstone of the European Green Deal, playing a pivotal role in reducing reliance on fossil fuels, particularly from Russia. Paula Pinho, director for just transition and energy security, efficiency, and innovation at the Commission’s energy department, stressed the urgency of finding solutions, whether public, private, or blended.
Commissioner Kadri Simson emphasised the coalition’s potential to attract investments to support the European Green Deal and expedite the transition to cleaner energy sources through energy efficiency improvements. With a looming deadline to achieve climate neutrality by 2030, the need for increased investment is critical, as outlined in the EED’s binding target of a 11.7% efficiency increase.
Philippe Henry, Vice President of the Government of Wallonia and Minister of Climate, Energy, and Infrastructure, highlighted the importance of concrete actions to improve energy efficiency as a crucial step towards climate preservation. He emphasised the necessity for consistent energy efficiency measures across EU countries and underscored the significance of private investments in achieving these goals.
Thomas Östros, Vice President of the European Investment Bank (EIB), reiterated the bank’s commitment to climate investment, noting that energy efficiency projects constituted the largest sub-sector of the EIB’s energy investments last year. Despite challenges such as fragmentation and high transaction costs, Östros expressed the EIB’s dedication to leading climate investment efforts.
Lawmaker Niels Fuglsang, leading the EED file in the European Parliament, emphasised the imperative to move forward with implementation, highlighting ongoing discussions with Danish municipalities to initiate building renovations and district heating projects.
Alexandra Jour-Schroeder, deputy director-general at the Commission’s financial services department, highlighted the role of private investment in driving energy efficiency initiatives, with an expected influx of €600 to €700 billion annually.
Lawmaker Jutta Paulus emphasised the centrality of energy efficiency in the transition away from fossil fuels and stressed the importance of finance in facilitating building renovations and industrial transformations.
As the EU embarks on this ambitious journey to enhance energy efficiency, collaboration between member states, financial institutions, and policymakers will be paramount in achieving the desired outcomes outlined in the European Green Deal.
