The EIB Group has set up a Housing Task Force to tackle the lack of affordable and sustainable housing in Europe.
The new Task Force, headed by EIB vice-president Ioannis Tsakiris, will work on three areas: technological innovation in the building industry, retrofitting and energy efficiency of Europe’s housing stock, and development of affordable and social housing.
Europe's housing sector is in dire need of modernization. With half of its buildings constructed before 1980, the continent faces a massive challenge in improving energy efficiency. Despite this, only 5% of the building stock has undergone renovation.
A recent EIB survey of 12,500 European companies revealed a significant productivity problem in the construction sector with over 70% of firms not investing in innovative practices. Moreover, 85% of them cite a shortage of skilled workers as their primary barrier to investment.
To address these issues, Europe must invest heavily in R&D to create innovative building materials and technologies. Digitalization can also streamline processes and boost efficiency.
By developing better insulation, improving energy performance, and adopting circular economy principles for building materials, the construction sector can significantly reduce its environmental footprint while enhancing Europe's economic competitiveness.
Upgrading existing homes with modern insulation, heating, cooling, and energy systems is essential for Europe to meet its climate targets. This transformation will not only lower energy costs for households and businesses but also enhance living conditions. However, achieving this ambitious goal requires substantial annual investments of around €275 bn.
EIB’s Housing Task Force will pave the way for the launch of a pan-European investment platform for affordable and sustainable housing announced by President Von der Leyen in her statement at the European Parliament this week.
Over the past five years, the EIB Group has provided around €13.4 bn for affordable and sustainable housing. Last week, the financial institution signed a €490 mln loan to provide housing in Catalonia, while this week it approved new, affordable, and sustainable housing investments in Sweden, Germany, and Romania.
