Build The Future » Results » DSI 6: Financing tools for PEB implementation

DSI 6: Financing tools for PEB implementation

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As PEB markets are just starting to evolve the addressed target groups for PEB project implementation have to handle short-term increases in investment costs with altered amortisation scenarios and high barriers to access finance for their PEB investment at the same time. Financial incentives and PEB-related financing packages will be needed to compensate for initial economic obstacles perceived by project developers and builders and to speed up market uptake of the relevant technologies. For PEBs as a niche within the sustainable construction segment it will be reasonable to make use of already existing financing instruments, like bank loans, complementing them with financing tools that are in use for financing of energy efficiency projects as well as innovative financing/funding approaches for community-based PEB projects.

Type of DSI policy Funding / financing
Level of intervention national / regional policies 
Target Group/s addressed public and private developers of PEB implementation projects
Objectives / demand-side relevance * With view to the development of national PEB strategies (DSI1) the primary goal at national level will be to select a suitable set of financial instruments and define financing packages according to the demand of regional PEB market actors.
* Providing suitable financing instruments as an economic incentive and calculatory basis for PEB implementation projects
* Capacity building within the national financing system for better handling of applications coming from PEB project developers
* Development of innovative financing / funding approaches that support the implementation of community-based PEB investment projects
* Development of PEB-related financing packages, including complementary classical and innovative financing and funding instruments
Inputs Financial support instruments for the realisation of public and private PEB projects can include several measures by depending on the specifics of national financing system structures involving different actors, such as business development banks, commercial banks, building and loan associations, energy service companies and crowds of individual investors. 
Activities / Suggested instrument implementation Financing instruments envisaged for the support of PEB project realisation at national level include e.g.:
  * Earmarking of a proportion of funds at national building and loan associations for PEB implementation projects
  * Issuing of guarantees for PEB realisation investments by national business development banks in combination with reduced interest offered for PEB investment loans
  * Contracting services for pay-back of PEB investments offered by national / regional ESCOs
  * crowd-funding approaches to complement public investment in community-based service buildings realised at PEB standards
The selection of financial instruments and definition of financing packages will be chosen by the relevant authorities with regard to the national PEB strategies (DSI1) and the perceived demand of (potential) PEB market actors.
Intended Outputs Suitable financing packages available for all PEB implementation projects foreseen acc. to DSI1 and DSI2. Evaluation of the financing instruments that will be necessary for futher PEB market development by 2020 with subsequent mainstreaming of PEB financing instruments and complementary funding schemes acc. to national PEB strategies.
Intended Outcomes Partly backed by guarantees of the national business development banks the financing of PEB implementation projects will be mainstreamed in financing institutions, like commercial banks and building and loan associations. A range of financing packages will be offered by these institutions to meet the demand of PEB project developers and builders. PEB projects will be regularly included in the contracting portfolios of national and regional ESCOs. A growing number of community-based public service buildings will be supported by local crowd funding intiatives.
Monitoring indicators suggested * Number and volume of guarantee-backed loans for PEB implementation projects issued by commercial banks
* Number and volume of low-interest loans for PEB implementation projects issued by building and loan associations
* number and volume of community-based public PEB projects supported by local crowd funding initiatives
Roadmapping
SMART goals /
(Milestones in bold script)
By 6/2015:
* Discussion of required features of DSI6 with at least 40 stakeholders
* Selection of existing examples of different types of financing instruments suitable for PEB implementation projects
* Draft concept for involvement of crowd-funding initiatives in PEB financing
By 2018:
* PEB-related financing packages in place in EU countries / regions participating in DSI1 / DSI2 pilot action
By 2020:
* Number of PEB projects financed in participating countries / regions acc. to national / regionale PEB strategies
* Evaluation of PEB financing mechanisms leading to consequent mainstreaming of suitable instruments 
Build the Future
Timeline
9/2014-4/2015 Concept discussion in regional focus groups
9/2014-6/2015 Concept discussion in online stakeholder forum
by 5/2015           Briefing with European institutions / related organisations at EU level
by 6/2015           Recommendation to EU policy level included in final project report

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