Financing the Transition to Climate-Neutral Buildings: A Baseline Assessment

The transition to climate-neutral buildings is one of the most pressing challenges of our time. Achieving this goal requires substantial financial resources and innovative approaches to involve private investors alongside public funding. Recognizing this, the European Union has called on member states to significantly increase private investment in this area.

In response to this call, we have conducted a baseline assessment to evaluate the overall state of policies and financial markets in the building sector across five Central European countries. This analysis places particular emphasis on innovative financing models that engage private investors and empower citizens to take an active role in the energy transition.

Key Areas of Analysis

Our baseline assessment explores the following crucial areas:

1. General Overview of the Financial Sector
   This section examines the current state of financial markets, focusing on their capacity to support the transition to climate-neutral buildings.
2. Public Support Schemes
   We analyze the availability and effectiveness of public funding programs designed to encourage energy efficiency and renewable energy investments.
3. Fiscal Policies
   Tax incentives and fiscal measures are evaluated for their role in stimulating green investments in the building sector.
4. Green and Climate Bonds
   The potential of green and climate bonds as tools for financing large-scale building renovation and construction projects is assessed.
5. Green Loans
   We investigate the growth of green loan products, highlighting their accessibility and impact on individual and corporate investors.
6. Energy Service Companies (ESCOs) and Public-Private Partnerships
   Innovative contracting models, such as ESCOs and public-private partnerships, are reviewed for their ability to attract private investment and deliver energy savings.
7. Citizen-Led Initiatives
   The role of citizens in driving the energy transition is explored, with a focus on:
   • Energy Cooperatives: Collective investment models that enable communities to own and manage renewable energy projects.
   • Energy Communities: Collaborative efforts that empower individuals to take control of local energy production and consumption.

Building Momentum for a Sustainable Future

This baseline assessment provides a foundation for understanding the current landscape and identifying opportunities to scale up innovative financing models. By fostering collaboration between public institutions, private investors, and citizens, we can accelerate the transition to climate-neutral buildings and meet the EU’s ambitious sustainability goals.

If you want to check the detailed informations per country, follow these links:

• Austria
• Croatia
• Germany
• Italy
• Poland
• Slovenia