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Boosting the Renovation Wave withPay-for-Performance schemes

Santini, Marion

According to the European Commission, reaching new climate goals would require the building sector to cut its greenhouse gas (GHG) emissions by 60% by 2030. To achieve this reduction deep energy renovations should be fostered, and the annual energy renovation rate should at least double by 2030. The retrofit investments needed to meet these objectives cannot be financed from the public sector alone and would require substantial private sector involvement. Current legislation is insufficient to support these goals and the Commission will make legislative proposals to upgrade the climate and energy framework in 2021. The Commission has recognised the potential of pay-for-performance schemes to accelerate building renovation in its “Renovation Wave” communication. This briefing provides background information on these schemes and recommendations on how legislators could improve the EU climate and energy framework and put pay-for-performance schemes at the service of the EU’s Renovation Wave.

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