A proposal from the European Commission (EC) would allow member states to co-finance the installation of energy efficiency measures in the lowest income households.
Current legislation only allows limited use of the European Regional Development Fund (ERDF) for housing. The new proposal would open up the ERDF to energy efficiency and renewable energy projects for all types of low-income household.
If the European Parliament adopts the proposal, member states would be able to co-fund national, regional or local authority schemes to install double glazing, wall insulation or solar panels and replace old boilers with more efficient models.
“This is a win-win measure. It will save energy, cut emissions, bring down fuel bills for the most vulnerable in society and help the construction industry and SMEs in particular,” says Danuta Hübner, Commissioner for regional policy.
The residential sector accounts for around a quarter of Europe’s energy demand, while buildings (including commercial ones) are responsible for around 40% of greenhouse gas emissions.
Adopting existing energy efficiency technologies could slash energy usage, reduce emissions and save the average household €200-1000 per year, according to EU figures.
European member states already have plans to invest €4.8 billion in renewable energy and €4.2 billion on energy efficiency and energy management measures under the auspices of the European Economic Recovery Plan.