Renovate Europe reached out to the Managing Authorities in the Member States to raise awareness of the new opportunities to fund the energy renovation of the building stock under the 2014-2020 Structural Funds. To accompany its Practical Guide, the campaign wrote to the Managing Authorities in several national languages. The English version, co-signed with Chance for Buildings in the Czech Republic, is below.
Changes in the 2014-2020 Structural Funds budget: how to design an operational programme that will deliver multiple benefits to your region
Dear Sir/Madam,
In a period of economic crisis, the Structural and Investment Funds represent a golden opportunity to access upfront financing. It is crucial for the economic development of your region that this funding be invested in sectors of huge economic potential, which will trigger private investment, create local jobs and generate high returns. The EU recognised this need to prioritise investments along the EU’s 2020 Growth Agenda, and as a result outlined 11 Thematic Objectives, with a particular emphasis on Thematic Objective no. 4, “Transition to a Low-Carbon Economy”.
Indeed, the quantity of funding allocated for Sustainable Energy and Energy Efficiency in the 2014-2020 Structural Funds is expected to more than double from the last funding period, to an estimated €23bn, with obligatory minimum percentages for investing in Sustainable Energy and Energy Efficiency under the ERDF. In addition, the scope of eligibility for investments in energy efficiency in buildings has also been expanded beyond the ERDF to encourage investments also from the Cohesion Fund (where the housing sector was previously excluded) and the European Social Fund (supporting the upskilling of the labour force for green jobs, as well as renovation activities to increase, for example, accessibility).
In addition, a specific “off-the-shelf” financial instrument for the residential buildings sector has been introduced in the 2014-2020 Structural Funds, aimed at boosting renovations in Europe’s regions. Through a privileged ‘fast-track’ approval process, this “Renovation Loan” aims at securing preferential conditions for building owners to invest in energy efficiency assets through a combination of public and private resources.
It is clear that building renovations are at the heart of the EU’s strategy to achieve smart, sustainable and inclusive growth by 2020. The energy efficient renovation of buildings is a sector with a high cost-effective end-use energy savings potential that remains largely untapped because of a lack of upfront financing. Investing in the energy efficient renovation of buildings can deliver a wide range of tangible benefits for the public sector, households and businesses in your region:
- Economic benefits: a revenue-generating activity which creates local, non-exportable jobs (particularly in the depressed construction sector) and has a positive impact on public finances through reduced energy costs;
- Social benefits: a significant contribution to boosting urban renewal in disaffected areas and to reducing fuel poverty;
- Health benefits: an effective way of improving the indoor climate and thereby reducing hospitalisations;
- Environmental benefits: a cost-effective means of reducing air pollution and CO2 emissions;
- Political benefits: an efficient strategy for getting your country back on track to meet its 2020 climate, energy and growth objectives.
Designing an effective Operational Programme for the next 7 years that will reap these benefits for your region is crucial. The Practical Guide attached to this letter provides a helping hand to guide you and all stakeholders through the basic steps for designing a Multi-Fund Operational Programme to Renovate the Building Stock.
We understand that energy efficiency may be covered by several Operational Programmes in your country. In this case, we strongly recommend designing separate Priority Axes dedicated to energy efficiency, with coherent criteria throughout all relevant Operational Programmes.
Don’t miss this opportunity to unlock the huge economic opportunities lying dormant in your building stock for the benefit of your businesses, your households and your public finances!
Please don’t hesitate to contact one of us for any advice or consultation.
Adrian Joyce
Director, Renovate Europe Campaign
Petr Holub
Director, Šance pro budovy / Chance for Buildings
The PDF also carries a short presentation of the campaign, its partners at the time and Chance for Buildings.
The letter in national languages
Practical guide
Interested in designing a multi-fund operational programme for the renovation of your building stock? Download the Practical Guide:
Awareness-raising leaflet
