- More than 300 public and private stakeholders join the first meeting organised by the EIB Group to scale up financial support for affordable and sustainable housing throughout the EU.
- Housing is among EIB Group’s core strategic priorities, with new dedicated Task Force created to work on three areas: technological innovation in the building industry, retrofitting and energy efficiency of Europe´s housing stock, development of affordable and social housing.
- This work will pave the way for the launch of a pan-European investment platform for affordable and sustainable housing announced by President Von der Leyen in her statement at the European Parliament earlier today.
The European Investment Bank Group (EIB Group) has gathered, for the first time, more than 300 experts, policymakers and representatives from EU institutions, municipalities and national ministries to scale up financial support to increase the supply of affordable and sustainable housing across Europe. The event coincides with European Commission President Ursula von der Leyen’s announcement about the launch of the first ever pan-European investment platform for affordable and sustainable housing, in partnership with the EIB Group.
Europe’s housing sector is facing a significant investment gap – in terms of innovation, renovation, and construction. Half of Europe’s homes were built before 1980, resulting in high investment needs for energy efficiency; and only 5% of the building stock has to date been renovated.
According to the EIB Group’s most recent Investment Survey of 12,500 EU firms, the construction sector faces low productivity, with over 70% of construction firms not investing in any innovation. Lack of skilled staff remains the largest obstacle to investment for EU construction firms, with 85% citing it as a constraint.
Investment in R&D and the development of new materials and building technologies, digital transformation of products, processes, and services, are of the essence to increase the productivity and competitiveness of the European building industry, making construction faster, easier, and less costly. Furthermore, innovation is needed to increase insulation, energy performance, and circularity in the use of building materials, thus reducing the environmental impact of the sector and increasing the competitiveness of the European economy.
The retrofitting of the existing housing stock to incorporate modern and efficient systems for insulation, heating, cooling, energy generation and storage, is key to allow the EU to meet international climate goals, to reduce energy bills for families and companies, and improve the quality of the dwellings. Investment needs in this area are estimated at €275 billion per year.
Furthermore, investment in social infrastructure and the provision of affordable and sustainable housing is a key priority for the EIB Group, as spelt out in its Strategic Roadmap, together with public authorities and financial partners at national and international level. With the recent endorsement of the Roadmap by EU Finance Ministers, work is now underway to deliver on the 8 key priorities.
Today’s event, the first in a series organized by the new EIB Group’s Housing Task Force kickstarts an inclusive and collaborative process aimed at forging a pan-European approach with a focus on innovation, sustainability, and affordability.
The EIB Group has been providing financing and advisory services to the housing sector for the past 25 years. EIB Group support for sustainable urban development and renovation amounted to some €13.4 billion in the last 5 years.
Opening the event, Nadia Calviño, President of the EIB Group said “today we are getting down to work, gathering experts from across Europe to scale up investment to provide affordable and sustainable homes to European families and increase the productivity and competitiveness of the European economy. Our aim is to foster a pan-European financing solution, in close partnership with the European Commission, and with a focus on innovation, sustainability and affordability”.
She added, “I am confident that working closely with our partners with determination and focus, the momentum is there to develop new instruments and succeed in this important priority. “
EIB Vice -President Ioannis Tsakiris who is heading the EIB Group’s new task force for housing said “access to housing is an important priority for the European Investment Bank Group. I am pleased that we are hosting this event today to find solutions with key players in the sector to increase the availability of affordable and sustainable housing across Europe”.
The event today will showcase examples of affordable and sustainable housing schemes and solutions across Europe including innovative instruments and products to provide investment opportunities. These case studies include Institutional Investors from Cronos Logement Intermédiaire in France; facilitating access to finance to smaller providers from BGK in Poland, investment platforms supporting householders to make energy efficiency investments from SBCI in Ireland; and technological innovation to make affordable “passive” housing possible from Nasuvinsa in Spain.
During the hybrid workshop today, experts are also looking at the impact of closer collaboration between EU Member States, municipalities, housing associations, National Promotional Banks and the private sector. Conclusions from the meeting will feed into the EIB Group’s new Housing Task Force.
Read President Calviño’s full speech here.
Background information
European Investment Bank (EIB):
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB's financing within the EU is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.