Financing the future of buildings in Central, Eastern and SE Europe (2017)

  • Financing the future of buildings in Central, Eastern and South-East Europe

  • Analysis of the funding streams directed to energy efficiency in buildings currently available in Central, Eastern and South-East Europe by Buildings Performance Institute Europe (BPIE)

  • Summary:

    • The analysis reveals that less than 3% of the funds that could be used to support energy-efficiency investments in the region is dedicated to upgrading buildings.

    • Despite their critical role in reducing energy dependency, buildings are not perceived as critical infrastructure.

    • South-East Europe, with its building stock that consumes 38% of gas imports, is the only region in Europe with a significant gas security issue in the event of an interruption of supply.

    • The report states that "a dedicated renovation programme targeting gas-consuming buildings could reduce the current building stock’s gas consumption by 70% within 20 years."

    • Current funding streams:

      • EU funding streams: only 4.35% of the region’s Cohesion Policy Funds is allocated to demand-side infrastructure, amounting to €3.96 Billion. The European Fund for Strategic Investments (EFSI) is not being exploited and only two projects (including a gas project) are active in the region;

      • International financial institutions: only 1.7% of the total committed amount of their investments is allocated to demand-side infrastructure.

    • The analysis also looks into how different European funding revenues are used in different countries. The Cohesion Policy Funds are the biggest funding streams for demand-side infrastructure and building renovation in the CESEC region.

    • When it comes to non-EU funding streams, the analysis notes that these do not focus on demand-side infrastructure.

  • Keywords: EU, Central Europe, Eastern Europe, South-East Europe, Southeastern Europe, energy efficiency, energy transition, buildings, infrastructure, investment, Bulgaria, Croatia, Greece, Hungary, Romania, Slovakia, Slovenia, Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro, Serbia, Moldova, Ukraine