Climate policy: Pfandbrief banks welcome Renovation Wave

Last Wednesday the EU Commission published its strategy paper for a Renovation Wave to improve the energy efficiency of buildings.

According to this paper, the Commission aims to double the rate of renovation over the next ten years. By 2035, 35 million buildings could be renovated and up to 160,000 additional jobs could be created in the construction industry. The Renovation Wave is part of the implementation of the EU's Green Deal.

The Association of German Pfandbrief Banks (vdp) and its member institutions expressly welcome the Renovation Wave because they feel committed to the transformation to a more sustainable economy. "In order to achieve climate neutrality in Europe, the containment of energy consumption in buildings will play an important role," affirmed vdp Chief Executive Jens Tolckmitt.

The annual energy renovation rate is low at some 1%. One of the main reasons for this is the high implementation costs, which are often higher than the savings achieved through lower energy costs. "The Renovation Wave is an opportunity and can make a significant contribution to reducing greenhouse gas emissions in Europe – but for a successful result the existing financing gap between renovation costs and savings must be closed, Tolckmitt emphasized.

The EU Commission estimates the investment requirement at 275 billion euros annually.