Promoting Energy Efficiency in Buildings: the CEB’s Experience León Herrera Director of European Affairs Brussels - 19 June 2009.

Promoting EnergyPromoting EnergyEfficiency in Buildings:Efficiency in Buildings:the CEB’s Experiencethe CEB’s Experience

León Herrera Director of European Affairs

Brussels - 19 June 2009

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A multilateral development bank with a social vocation

CEB: supranational financial institution set up in 1956 by 8 member countries of the Council of Europe

Main objective: foster social cohesion in Europe

40 European member States today

among them 21 Central, Eastern and South-Eastern European countries have joined the Bank since the early 1990s

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Key figures

Some € 30 billion in projects financed since inception

Outstanding loan portfolio: € 12.4 billion

Total assets: € 21 billion

Shareholders' equity: € 1.8 billion

Loans disbursed in 2008: € 1 505 million

Rating AAA (Moody’s, S&P, Fitch)

(figures as of December 2008)

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CEB’s approach to energy efficiency in the residential building sector

EE not only has an economic impact but also a strong social dimension:

helps to compensate poverty in fuel

improves living conditions

helps to soften social inequality

“It is vital to interlink EE policies in housing and social policies” (UNECE, EE in housing March 2009)

What does the ”residential building sector” cover?

Houses, of course

Student residences, residences for elderly persons

Schools, hospitals, retention centres? (social/HR issue)

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CEB and energy efficiencyin housing (1/2)

Since 2000 ca € 550 million approved in favour of housing projects

Out of which some € 340 million (> 60%) for improving energy efficiency

Already about 86,000 housing units financed

(figures as of 31 December 2008)

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The project:

Prime objective: reduce household energy consumption and encourage use of renewable energy in housing

Part of national energy saving and energy efficiency improvement programme 2000-2010

Beneficiaries:

Households, municipalities, condominiums and housing co-operatives

Hungary: energy efficiency in housing (1/3)

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Hungary: energy efficiency in housing (2/3)

EE measures applied:

Renovating and modernising buildings for the purpose of energy saving:

External thermo-insulation (over-cladding), reduction of thermal breaks; replacement of single glazed doors/windows, retrofitting heating, hot water supply and electrical/lighting system

Fitting individual (per flat) heat thermoregulatory and consumption measuring devices in buildings supplied by district heating

Installation of solar, photovoltaic, biomass, geothermic or wind devices for heating and electricity generation purposes (under National Energy Plan, NEP)

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Implementation schedule:2006-2010

Financial instrument:Loan to government, to complement budgetary resources. Government grants to final beneficiaries

Project partners included:

Hungarian Ministry of Finance (borrower), Ministry of Economy and Transport and Ministry of Local Government and Regional Development (implementing)

Progress to date:Up to 200,000 dwelling units (at end 2008), of which 80% were subject to energy efficiency measures. Expected energy savings around 20-30%

Hungary: energy efficiency in housing (3/3)

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The project:

Renovation of 35 higher education and science institutions

Sub-projects located throughout Lithuania (in 7 main cities)

Objectives:

Improved thermal insulation of 370 buildings and consequent cost savings

Improved health and safety conditions of building occupants

Improved living conditions in student dormitories

Lithuania: energy efficiency in higher education facilities (1/3)

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Lithuania: energy efficiency in higher education facilities (2/3)

EE measures applied:

Insulation of roofs and external walls Replacement and renovation of windows Renovation of heating and ventilation systems

Results: Average decrease in energy consumption of

between 20%-30% for the renovated facilities; consequent reduction in atmospheric emissions (CO2)

Improved standards of working, studying and living

Increase of the buildings’ usable surface and optimisation of already existing capacity due to better thermal insulation

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Lithuania: energy efficiency in higher education facilities (3/3)

Project implementation in 2 stages:

2001-2002 (Stage 1), 2003-2006 (Stage 2)

Financial product:

Loan to government to complement budgetary resources

Project partners:

Lithuania Ministry of Finance (borrower), Ministry of Education and Science, Central Project Management Agency (implementing)

Lessons learned:

Lack or scarce budgetary resources, cast over several years/ investment items, results in inefficient use of funds.

A good implementation agency is capital to achieve solid results

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For more information:For more information:

Council of Europe Development Bank (CEB)Directorate General for LoansProjects Department

55, avenue Kléber 75116 Paris, France

Tel: +33 1 47 55 55 00Fax: +33 1 47 55 37 52

www.coebank.org