Taking too long? Close loading screen.
General

European Court of Auditors: Cost-effectiveness does not guide EU spending on energy efficiency in buildings (GEN – 1109.00)

13 May 2020

2 min read
Publications
General

European Court of Auditors: Cost-effectiveness does not guide EU spending on energy efficiency in buildings (GEN – 1109.00)

13 May 2020

2 min read

GEN – 1109.00. The European Court of Auditors’ recent Special Report ‘Energy efficiency in buildings’ shows that EU-funded projects still do not focus on achieving the greatest potential energy savings per euro invested. Although the Commission has issued extensive guidance for improving energy efficiency investments in buildings including their cost-effectiveness, audited Member States allocated budget to projects on a first-come first-served basis, without weighing relative costs and benefits.

Improving the energy efficiency of buildings is a key tool to achieving the European Union’s energy efficiency targets. Buildings consume the greatest share of energy and have the largest energy savings potential.

The EU co-finances projects to improve the energy efficiency of buildings in partnership with Members States. It earmarked 14 billion EUR in the 2014-2020 long-term budget for that purpose, with an additional 5 billion EUR of national co-financing. These funds are allocated to eligible Member States, which are responsible for the selection of individual projects to receive funding.

The Commission issued extensive guidance to Member States on how best to use EU funds in energy efficiency investments in buildings. For example, the Commission recommended Member States to use EU funding, especially when provided as grants, to support primarily deep renovation resulting in significant energy savings (more than 60 %).

However, most audited Member States failed to target EU funds towards projects most likely to realise energy savings, instead allocating grants to projects on a first-come first-served basis, without comparing relative costs and benefits. As a result, some projects used EU financing for simple upgrades (such as installing LED lighting).

Since the cost-effectiveness of the investments is not measured, it is not possible to know how much energy will have been saved through the investments.

The Member States identified several market barriers to energy efficiency investments in buildings. These include lack of awareness and expertise on energy efficiency financing and benefits, high initial costs, regulatory barriers in multi-ownership buildings (often requiring unanimity for housing associations), and the split incentive or owner/tenant dilemma.

Recommended Actions

Members may find it insightful to read the full report. More advocacy and education on energy efficiency investments in buildings at national level is needed.

Related documents and links

All related documents and articles can be found in the respective sections in the right sidebar.

  • GEN – 1109.01 – Energy efficiency in buildings: greater focus on cost-effectiveness still needed

Downloads

10 January 2022
  • General
The Commission has published a non-binding FAQ document to provide guidance on how to disclose Taxonomy-eligible activities and assets.
1 min read
10 December 2021
  • General
A regulation supplementing the Taxonomy Regulation was published in the Official Journal of the European Union (OJEU). It specifies how to disclose information according to corporate sustainability reporting requirements.
1 min read
10 December 2021
  • General
The first delegated act of the Taxonomy Regulation was published in the Official Journal of the European Union (OJEU). It contains the Technical Screening Criteria (TSC) for the first two environmental objectives.
1 min read
20 October 2021
  • General
The LIFE sub-programme Clean Energy Transition has issued a call for proposals that can qualify for grants. Three topics may be of interest to the HVACR industry. Around 30 partners are looking for collaboration to introduce a proposal by 12 January 2022....
2 min read
Search
Press "Enter" to start the search

Log in

Don't have a Eurovent Extranet account? Register here!

Newsletter

Are you interested in receiving regular updates from Eurovent? These include, for instance:

  • EU legislation and standards
  • Important WTO notifications
  • Market intelligence and statistics
  • National initiatives and actions by our Member Associations
  • Technological developments
  • Trade shows and conferences

Do you have any questions or are you interested to place your organisation’s advertisement in the next edition of CLIMANOVELA? Feel free to contact us via secretariat@eurovent.eu or +32 466 900 401.