Investing in building renovation could accrue up to €175 billion per year for public finances with an additional “one-off” boost to GDP in the range of €153 to €291 billion for the years up to and including 2017. This is according to a new report prepared by Copenhagen Economics for the Renovate Europe Campaign.

The report which was launched at today’s Renovate Europe Day Conference2 , shows that when the challenge of renovating the EU building stock is taken up with a high level of ambition, permanent increases in revenue for public finances will result. The report also provides a number of policy recommendations for European governments to help boost public finances through renovation. These include shifting or reducing incentives such as favourable tax treatment of heating and electricity use in buildings to encourage a lower usage, thus rendering energy efficient renovation of buildings more attractive. Modernising rent regulation to allow landlords and tenants to share the gains from energy efficient renovations is another example.

Commenting on the report, , Adrian Joyce, Campaign Director of the Renovate Europe Campaign said “We know that many Member States are still hesitant about whether or not to invest in energy efficient building renovation programmes, despite the requirements of the recently adopted Energy Efficiency Directive3 . The findings in this new report will provide the final convincing arguments for those Member States, leading them to act. Investing in energy efficiency of buildings is a good investment in the short-term, the medium-term and the long-term.”

The second edition of Renovate Europe Day focuses on the theme of Stimulating Growth and Jobs in Europe.

In his address to the Conference, Günther Oettinger, EU Commissioner for Energy said “Energy efficiency is, for the European Union, the most direct and cost-effective way to achieve our strategic goals” and he goes on to elaborate on a number of key elements of EU Policy that go in this direction. He then turns to financing and informs the audience that: “…the European Union needs to focus and redirect its financial sources to address the energy efficiency financing challenge … That is why the Commission is keen to create the right conditions to bring more private sector financing into the energy efficiency market.”

The Renovate Europe Campaign is supported by 23 companies and associations.