About the project
Main focus and objectives
Build-Interest’s main objective is to structurally reduce uncertainty and increase trust in investments in
sustainable energy in buildings. This is achieved mainly through reinforcing the trust of investors in sustainable
energy and energy efficiency projects, and by reinforcement of the links and creation of a structural, long-term
dialogue between public policies, investors and innovative companies.
- To develop three national financing platforms in Europe
- To prepare the replication of successful financing platforms throughout Europe
- To develop a roadmap for attractive financing of sustainable energy in buildings
- To increase access to investments for sustainable energy in buildings
- To improve the financeability and attractiveness of investments in sustainable energy or energy efficiency in buildings
To reduce the lack of trust and to improve the attractiveness of investments investing in energy efficiency and sustainability in buildings.
Financial gap in built environment
Investments in sustainable energy and energy efficiency projects are an important bottleneck for Europe to reach its 20-20-20 targets. This bottleneck for investment is due to a number of linked, but different barriers.
Perhaps most importantly, investors and financiers lack trust in the financial viability of sustainable energy measures, which is further complicated by the new bank capital requirements set out in the Third Basel Accord, decreasing banks’ lending capacity and willingness to invest in the sustainable energy sector.
Although this is certainly not the only barrier, many of the other barriers are also linked to financing the required investments. This includes:
- Financial barriers such as limited access to finance, high upfront costs, relatively long pay‐back periods, higher perceived credit risk associatedwith investments in sustainable energy and energy efficiency, and competing priorities for property owners;
- Institutional and administrative barriers such as regulatory and planning issues, and complexities due to the variety of stakeholders involved;
- Information and awareness barriers due a general lack of understanding and expertise regarding financing sustainability and its benefits amongst the various players; and
- Split incentives facing landlords and their tenants as well as other investors, which lead to a disconnect between those making the investment and those benefiting from the energy savings.
The exact nature of these barriers varies from country to country, and is highly dependent on local and/or regional circumstances, including the type of building stock, legislative and regulatory frameworks, the scale and maturity of the financial sector and sustainable energy market and the overall level of education and awareness amongst public decision makers.