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Subsidies for energy efficiency deliver massive returns to empty public treasuries


07 Nov 2011



A new study published by the Jülich Research Centre (Germany) contradicts fears that, in times of budgetary constraints, incentive schemes for the energy efficiency of buildings would be too costly and that the deep renovation of Europe’s building stock could therefore not be supported. The report found out that for every Euro that the state owned KfW spent in support of energy efficient construction and refurbishment in Germany in 2010, revenues of public authorities at all levels increased by as much as four to five Euros.

“There was already extensive evidence that investments in the energy efficiency of buildings offer attractive returns on investment for buildings owners”, said Oliver Loebel, Secretary General of PU Europe. “This report is now providing solid evidence that also public budgets can benefit from incentive schemes. Member States should therefore cease to claim that they cannot endorse binding targets and measures in the Energy Efficiency Directive because of cost.”

KfW’s programme costs of €1.4 billion initiated investments of €22 billion. Depending on the scenario, these investments generated net savings of €4-11 billion for public budgets in 2010. All levels including federal, regional and municipal authorities as well as social insurance schemes benefited although not to the same extent. Increased revenues came from sources such as value added tax, other product-related taxes, income tax, profit tax and avoided payments for unemployment benefits.

“The report sends a strong signal to the European Parliament and national governments in favour of an ambitious energy efficiency directive. The development of national roadmaps for the deep renovation of Europe’s building stock would offer a unique triple win situation. Reducing greenhouse gas emissions while creating local jobs and contributing to healthy public finances.” Loebel concluded.

The report is available here

For more details, please contact

PU Europe


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