Page 47 - European Energy Innovation - spring 2020 publication

Spring 2020 European Energy Innovation 47

BUILDINGS RETROFIT

Common barriers to increasing • Lack of enabling policies
retrofit rates across sectors • Lack of enforcement
Common drivers for increasing • Low energy tariffs
retrofit rates across sectors • Long payback periods
• Complexity of construction supply chains
• Lack of capacity to evaluate and manage retrofit measures
• Lack of information
• Compliance with policy or regulation
• Financial incentives
• Increased comfort, health, and productivity to improve living

standards or marketability

To deliver these results, the EBRD the climate agenda more of a priority with other pressing needs result in
has applied its unique business for the sector. building owners deferring these kind
model combining policy dialogue, of investments or performing light or
technical assistance and financing Buildings ownership is highly sub-optimal renovations.
in partnership with important fragmented but can be grouped into
stakeholders such as the European three market segments: residential, In multi-apartment buildings, this is
Commission, the donor community, public, and commercial. Each faces further complicated by the number
global professional associations, co- some common and very specific of homeowners involved in decision-
financiers and policy makers in our barriers, as outlined in the tables on making processes and the limited
countries of operation. this page. ability of homeowners associations to
access convenient long-term finance.
EBRD estimates investment needs While it is relatively easy to identify
for building sector decarbonisation cost-effective decarbonisation These difficulties are further
across its countries of operation at actions that will deliver the desired compounded by financing
between EUR 15,000 and EUR 20,000 level of climate ambition, accessing institutions’ lack of understanding of
billion by 2050. These amounts go far the financial resources, securing the additional benefits that a deep
beyond what national governments private sector buy-in and developing retrofit can deliver to residential,
can provide so the private sector will the value chains necessary to commercial or public clients. A low-
have to play a key role. implement them, remains challenging carbon building is a future-proof
for a number of reasons. asset, with higher value and lower
Approaches to supporting operating costs that typically provides
investments in green new builds are Deep energy efficiency retrofits often a healthier and more productive
worthy of an article in themselves. require significant investments in environment for its occupants.
Here, however, we would like to focus structural and fit out measures that
on opportunities for scaling up private can take as long as 15-20 years to pay Transforming the sector requires an
and public investment in renovating back. The high up-front costs and the integrated and systemic approach.
existing building stocks. They include lack of technical knowledge required It should combine incentives,
effective ways to address barriers and to assess and define the technical education of building owners and
identifying market drivers for making scope for renovation combined financial intermediaries, long-term

Specific barriers to Residential Public Commercial
increasing retrofit rates • Affordability • Availability of funding / • Availability of funding /
in particular building • Fragmentation
sectors • Decision making in prioritisation prioritisation
• Lack of PPP regulation • Split incentives
apartment buildings • Fragmentation of
• Bankability of • Corporate social
ownership responsibility
homeowners • Procurement
association (HOA)
• Ownership vs rental regulation
• Budget laws (retain
Specific drivers to • Long-term finance
increasing retrofit rates • Dedicated support savings)
in particular building • Green procurement
sectors
policies

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