Plans to create a new initiative aimed at making investments in residential energy efficiency projects more attractive to private investors have been approved.
The Smart Finance for Smart Buildings project, together with other EU policy initiatives, aim to unlock a total of €10 billion (£8.75bn) in public and private funds between now and 2020 for energy efficiency projects.
The European Commission said the initiative will help de-risk investments in the buildings sector, “giving investors and financiers a better understanding of the risks and benefits” of the investments.
It is estimated to support up to 220,000 jobs and help establish a renovation market for small businesses worth up to €120 billion (£105bn).
It suggests up to 3.2 million households could also be taken out of fuel poverty.
Miguel Arias Cañete, Commissioner for Climate Action and Energy said: “The building and housing sector accounts for 40% of Europe’s energy consumption but it needs much more investment and this initiative will help reduce the gap. It will also create local jobs and reduce energy poverty by using EU funds intelligently in a cost-effective way.”