Energy renovation projects in the building sector are all technically different. This makes it difficult for banks and investors to trust that the energy savings generated will be a reliable source of revenue. The Investor Confidence Project (ICP) Europe, a Horizon 2020 funded project, is therefore developing a set of commonly agreed protocols which will improve access to finance for building renovation projects.
ICP Europe has recently released 6 protocols for tertiary and residential buildings to define European best practices for predicting energy savings, optimising performance, and monitoring the results of energy efficiency investments. These protocols could be used by building owners or by Energy Savings Companies (ESCO) to improve access to finance. They could also be used by banks and investors to reduce the costs for due diligence.
The protocols do not create one more technical standard; on the contrary, the approach is to provide a general frame in which the standards used for each step of the renovation process can fit in a consistent manner. That is why the protocols have been translated into a set of national annexes available for most EU Member States. This will in turn enable the acceleration of energy efficiency investments and the emergence of a robust and thriving commercial renovation sector by increasing confidence in the engineering fundamentals and financial returns of projects.
“We are happy to fund Investor Confidence Project through the Horizon 2020 programme. It has the potential to transform the market by making building energy retrofits a standardised product for the finance industry,” said Vincent Berrutto, Head of the Energy Unit at the European Commission’s Executive Agency for Small and Medium-sized Enterprises. “This will contribute to reducing transaction costs and make finance more affordable.”
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