As already suggested, the European Commission’s promised green recovery plan will focus on building renovation, renewables and hydrogen as well as clean mobility and the circular economy, according to a leaked working document.
The plan is scheduled to be released on 27 May and although key details on funding are still lacking, some aspects of the plan are now starting to emerge. The EU “building renovation wave” has already been announced for launch in September and will aim to triple the current renovation rate, which stands at around only 1% of the building stock.
The Commission plans to launch a “European Renovation Financing Facility”, tentatively financed with €91 billion per annum and blended with other sources of funding to reach €350 billion in investment per year.
Priority will go first to public sector buildings, especially hospitals and schools as well as social housing and other forms of low income dwellings.
On the energy side, the recovery plan proposes to focus on renewables and, more controversially, hydrogen in parallel, saying both are needed for deep decarbonisation.
Analysis and comments
The building renovation side is something that has got a lot less publicity & its an aspect we are following closely. Yes, the funding is still to be resolved and the plans are at an early stage, but its not just the construction companies & house builders that could benefit in the longer term.
Europe also has a burgeoning residential & social housing sub sector within real estate.
Interestingly, the Green Finance Institute recently launched a report on financing energy efficient building The path to retrofit , where they heighted that the UK housing stock is responsible for approximately 20% of the country’s total greenhouse gas emissions.
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