Green Buildings Vital For EBRD

GREEN buildings represent a major global investment opportunity with buildings comprising the largest segment of the $231 billion energy efficiency market, an EBRD publication launched today finds.

The potential is particularly large in the European Bank for Reconstruction and Development’s countries of operations where a high proportion of existing buildings lag behind modern standards in energy efficiency. To reach the targets of the 2016 Paris Agreement on the reduction of greenhouse gas emissions, annual rates of green renovations at the current of common practice for existing buildings must reach 6-8% by 2040.

At present, only 1% of existing buildings have been renovated to meet minimum standards. Meanwhile, new buildings are three to four times as energy-efficient as existing ones. This illustrates the potential but also the challenge as renovations and new buildings will cost billions: For example, in 2015 the building renovation market in the European Union was valued at €109 billion alone, according to the EBRD paper.

Combining a decade of green finance experience with technical assistance and policy dialogue, the EBRD’s Green Economy Transition (GET) approach aims to turn green-building challenges into solid investment opportunities with clear economic, environmental and social benefits.

Under the GET approach, the EBRD has financed more than 200 large-scale projects for the development, upgrade and refurbishment of more than 62,000 building assets, with overall building area exceeding 25 million square metres. These investments have enabled €15 billion of green building investments, including €2 billion from the EBRD. GET investments in buildings vary from a few thousand euros to over €100 million according to the overall project size.

The GET approach seeks to increase the volume of green financing from an average of 24% of EBRD Annual Business Investment in the 10 years up to 2016 to 40% by 2020. A central part of this investment will be in green buildings.

Monday 2nd October 2017


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