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Financing the future of buildings in Central, Eastern and South-East Europe: a new study by BPIE

The Buildings Performance Institute Europe (BPIE) published the analysis of the funding streams directed to energy efficiency in buildings in Central, Eastern and South-East Europe (CESEE).

The study shows which funds available in the region are allocated to upgrading the building stock. Both EU and non-EU funding streams were included in the analysis:

EU funding

Non-EU funding

The analysis revealed that less than 3% of the funds that could be used to support energy efficiency investments in the region is dedicated to upgrading buildings. Within EU funding streams, only 4.35% of the region’s Cohesion Policy Funds is allocated to demand side infrastructure, amounting to €3.96 Billion. The European Fund for Strategic Investments (EFSI) has very little impact in the region, with only two energy projects active (including a gas project). The international financial institutions included in the analysis allocate only 1.7% of their total committed investments to demand-side infrastructure.

The study shows that, despite their critical role in reducing energy dependency, buildings are not perceived as a critical infrastructure and the opportunities for investments in demand-side infrastructure are not fully exploited. The current system fails to leverage sufficient private or institutional investment to upgrade the building stock.

The report addresses several challenges and suggests potential measures to overcome the lack of investments in demand-side infrastructure. According to BPIE, building technical capacity in the region is of utmost importance. BPIE suggests the creation of a regional energy efficiency financing platform that integrates capacity building, investment facilitation and project aggregation to create effective financing instruments and investment opportunities for demand-side energy efficiency. This would encourage private and institutional investment and result in a high investment leverage factor. Adopting an “efficiency-first” approach and promoting building renovation would be a viable alternative to increasing supply investments. Reducing uncertainty to spur private investments was also one of the challenges identified by BPIE, due to perceived high risks for investing in residential projects. That is why, stakeholder facilitation is one of the central aspects to our REELIH project, which you can learn more about here.

For this reason, BPIE suggests to set out comprehensive long-term national strategies for decarbonizing the building stock and guiding public and private investments, as well as to set up an independent non-political body, responsible for handling financial streams, in order to increase market confidence.

According to Oliver Rapf, Executive Director of BPIE, “The majority of buildings in the region urgently need deep renovation to reduce health and security risks, providing business opportunities and a stable return on investment. This debate becomes all the more relevant with the forthcoming negotiations on the next EU Multiannual Financial Framework (MFF). It should increase funding and support for demand-side efficiency investment and give up its bias for energy-supply infrastructure” (see BPIE press release here). BPIE proposes specific solutions that can be taken both at the EU and country level to increase the impact and reach of available funding for building renovation.

USAID supports key reforms in BiH energy sector with special focus on improving living conditions of low-income families, reducing energy costs and carbon emissions.

Currently, USAID is providing support in the BiH energy sector through USAID REELIH - Residential Energy Efficiency for Low-Income Households Project and USAID EIA - Energy Investment Activity Project. The assistance programs of these two projects are dealing with key obstacles in energy and energy efficiency sectors in the country.

Inefficient energy use and energy poverty are key issues impacting the residential energy efficiency sector in the country. The majority of buildings in BiH don’t have adequate insulation and they require renovation. Energy efficiency measures, including thermal insulation of walls, heating system upgrades and new windows, result in a lower energy bills, and improved living conditions.

Large scale renovation of the building stock in BiH is a major investment that can boost the local economy and have a long term positive effects on the environment. Therefore, the key challenge is how to develop efficient financing model and implement solutions that will allow a large scale renovation schemes in BiH.

Although savings that can be achieved by energy efficiency measures are significant ordinary families are still reluctant to make the necessary investments without adequate financial incentives. This conference will explore key challenges related to development of financing solutions that will address constraints faced by low-income families.

As a part of Residential Energy Efficiency for Low-income Households (REELIH) project supported by the United States Agency for International Development (USAID), ENOVA together with Habitat for Humanity International organized a conference “Jump-Start REE”: Financing models for Residential Energy Efficiency in Bosnia and Herzegovina held on 02 November 2017 in Hotel Bristol Sarajevo, Bosnia and Herzegovina.

Effective financial model needs to address both social gaps and incentivize house owners to invest. That is why this conference brought together the key stakeholders including governmental and non-governmental organizations, as well as domestic and international financial institutions.

You can find the detailed Conference Program.

For more details on the project in Bosnia and Herzegovina please visit

2 November 2017, Hotel Bristol Sarajevo
Conference organized by ENOVA and Habitat for Humanity International
Supported by: USAID

As a part of Residential Energy Efficiency for Low-income Households (REELIH) project supported by the United States Agency for International Development (USAID), ENOVA together with Habitat for Humanity International are inviting you to the conference “Jump-Start REE”: Financing models for Residential Energy Efficiency in Bosnia and Herzegovina to be held on 02 November 2017 in Hotel Bristol Sarajevo, Bosnia and Herzegovina.


The event will bring together key stakeholders in the energy efficiency sector including the representatives from government and public institutions, NGOs and Home Owners Associations as well as financial sector institutions to discuss successful schemes implemented at local and regional level, financing mechanisms and available products, and practical challenges to implement them on a large scale. Program will include the following sessions:

You can find the detailed conference program on this link: Conference Program.


If you have any additional questions, please contact us at or by telephone: +387 33 251 062. For more details on the proect in Bosnia and Herzegovina please visit

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