#GreenBuilding, #Investments, #Sustainability
Building decarbonisation is critical for meeting the EU’s 2050 emissions targets, yet progress remains slow, especially within older European buildings. Currently, the average renovation rate is only 1% per year, while the target stands at 3%. Finance plays a crucial role in scaling these retrofits by addressing both social and financial barriers.
Social challenges, including a lack of consumer trust and split incentives between landlords and tenants, hinder adoption. Financial constraints compound the issue, as high upfront costs for retrofits limit broader implementation. To address this, innovative financing structures like blended public-private models and outcome-based funding have emerged. These models aim to distribute costs and engage private investors who recognize both the potential for financial returns and environmental impact.
Place-based retrofits, which target multiple buildings and community infrastructure, are also gaining traction due to their potential to achieve economies of scale and foster community buy-in. When well-executed, these programs reduce operational costs, create local jobs, and offer social benefits, such as improved public health. Increased investment in monitoring and standardizing these co-benefits could further attract funding.
By leveraging finance as an enabler, decarbonisation efforts can progress more efficiently, supporting long-term climate goals and fostering sustainable urban communities.
Read the full document here: https://bit.ly/4fBAlYN
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