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Financing the finance for energy-efficiency improvements Renovating buildings and improving their energy efficiency performance has been identified as a key element of efforts to meet France’s climate and energy targets. However, current levels of financial support for renovation are insufficient in these terms, an issue that the FiRéno+ project, led by the consortium of ADEME, French Agency for Ecological Transition, Sustainable Finance Observatory, and Res Publica, seeks to address. Many French banks provide loans at relatively low rates to support building renovation projects, helping improve energy efficiency and contributing to the wider goal of meeting climate and energy targets. However, current levels of support are insufficient to meet France’s energy consumption reduction targets, as outlined in the Stratégie Nationale Bas Carbone. “If we really intend to achieve the targets that have been set out, in terms of reducing energy consumption and protecting the climate, additional finance is required,” says Guillaume Lorentz of Sustainable Finance Observatory. The consortium behind the EU-backed FiRéno+ project is now working to bring different stakeholders together in roundtables and encourage discussion, aiming to establish a shared agenda and support the transition to a more sustainable economic model. “The aim of FiRéno+ is to actively mobilise banks, private companies, national housing or habitat agencies, ministries, think tanks, consulting firms, experts, and civil society, looking to unlock finance for renovation projects,” outlines Lorentz. “A lot of banks discuss loans with their clients. They will discuss the possibility of renovating a property on the basis of the energy efficiency performance.” The focus of attention in these discussions is the renovation of private properties, both residential and tertiary, which are typically older buildings with significant scope to improve energy efficiency. The tertiary sector accounts for around a third of the total building-related energy consumption in France and reducing that could have a significant impact in terms of meeting environmental targets. “The building sector accounts for a large proportion of emissions, and there’s a lot of focus on it,” acknowledges Lorentz. France Stratégie indicates that an additional annual investment of around €20 to €30 billion will be required by the end of the decade for the energy renovation of buildings. “The long-term goal of the FiRéno+ project is to get more

information. “We are engaged in discussions with banks and different private companies. We can help them access financial resources to fund a deep renovation project or provide information that will support them in understanding how to proceed,” continues Lorentz. “We are building tools and implementing processes to establish more and more renovation projects.” A major priority for the project is to clarify the broad benefits of renovation, both environmental and economic. Renovated buildings consume less energy, which means lower utility bills and reduced greenhouse gas emissions — a win-win for both property

owners and the planet. “We’re looking at the overall picture, from energy performance to cost savings,” says Lorentz. Financial support is available, including for lowincome households, and high-performance renovations are increasingly accessible.

Energy efficiency performance The energy efficiency performance of a property is reflected in its overall value to some extent, a point which may help to encourage investment in renovations of those buildings with relatively low ratings. However, it’s difficult to draw direct comparisons between properties in this respect and precisely assess the financial impact of improved energy efficiency. “There have been studies, but it’s challenging to put a specific value on it. Some companies are focused on identifying the intrinsic value of energy efficiency, but that tends to be for larger buildings and specific investments,” continues Lorentz. The ‘green value’ of a renovation may be difficult to quantify, yet Lorentz says this

Over the past months, stakeholders from across the renovation ecosystem have collaborated to design and test innovative solutions. The Plenary Restitution Session will unveil the concrete actions and shared insights developed on June 19th in Paris. This event is a unique opportunity for project members, partners, and curious minds alike to come together and see how collective efforts are turning ideas into real impact. For more information, please visit: www.fireno-plus.fr

“FiRéno+ aims to actively mobilise banks, private companies, national housing or habitat agencies, ministries, think tanks, consulting firms, experts, and civil society, looking to unlock finance for renovation projects.” can be persuasive in encouraging banks to support such projects, so the project team are working to build a fuller picture in this area. “We really want to provide a better understanding about the value of green loan when it comes to renovation projects, which is something we are

currently working on,” he says. A bank typically needs a lot of information and supporting evidence when considering whether to offer a loan and assessing the risk of default. When the level of risk has been reduced banks are often keen to get involved, in part to

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finance – in the region of 3-4 billion Euros – dedicated to renovation projects,” he says. “In the FiRéno+ project we’ve established working groups and held roundtables, bringing together different stakeholders, including banks, construction companies and private citizens, aiming to identify the barriers to investment and look at how we can scale it up.”

FiRéno+ project This work will help the project team build a deeper understanding of how banks operate, the financial mechanisms they use, and to then encourage other institutions to apply them where they have been shown to be effective. A second major focus area for the project is on encouraging collaboration between the different stakeholders, as part of efforts to get more renovation projects up and running. “This is about understanding what energy efficiency means, and providing a greater degree of clarity on how investing in deep renovation projects can benefit different stakeholders,” explains Lorentz. From this basis, the consortium is working to stimulate renovation projects, through financial support or providing relevant

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