Green Deal: EU investment plan for building sector

The EU Commission's „Green Deal"; is intended to make the European continent climate-neutral by 2050. Now Commission President Ursula von der Leyen has published her investment plan for implementation.

Green Deal
The EU Commission's „Green Deal"; is intended to make the European continent climate-neutral by 2050. Source: Pixabay

The building sector has the greatest demand in capital, according to experts. The Green Deal is „an enormous task”, says Vice President of the Zentraler Immobilien Ausschuss (ZIA) Jochen Schenk. With the Sustainable Europe Investment Plan as part of the European Green Deal, the EU Commission recently determined the sources from which the enormous capital requirement of a total of approx. one trillion euros for a climate-neutral Europe will be taken. Almost half of the sum (approx. 485 billion euros) is provided by the EU budget. Additional investments of 260 billion euros per year will further be necessary until 2030. For this reason, there are currently considerations on how and in what form to create further incentives to mobilise public and private investment and how to push the attempt for more energy-efficient renovation of residential buildings. The experts see a particular need in the areas of buildings, energy and mobility.

Building sector has the greatest demand in capital

However, according to a report in the magazine „Spiegel”, the German government is currently not prepared to provide more financial support for the Green Deal. The Zentraler Immobilien Ausschuss (ZIA) has calculated an annual investment requirement for buildings and plant technology of around 100 billion euros until 2030 – plus additional costs of up to 34 billion euros per year – depending on CO2 reduction. „The goals of the Green Deal for the building sector also verbalise a huge task in which all actors must walk in the same direction”, says ZIA Vice President Jochen Schenk. Private commitment is the key to achieve the climate targets: „It is therefore only logical that the Commission should take the high importance of private investment into account”. For them, „intelligent and market-driven”; regulations are needed, which need to be prioritised in all further political decisions.

In June, the EU Commission intends to outline how the targets of a 40 percent reduction in greenhouse gas emissions compared to 1990 can still be achieved by 2030. This will involve, among other things, reviewing EU regulations such as the Energy Efficiency Directive for Buildings in terms of their suitability in climate protection and, if necessary, amending them to current needs.

This page is also available in: Deutsch