EIB Group gathers key stakeholders to tackle Europe’s multi-billion housing challenge

The European Investment Bank (EIB) Group has convened over 300 public and private stakeholders to address the critical issue of affordable and sustainable housing across Europe. This event marks the beginning of a collaborative effort aimed at scaling up financial support for the housing sector, which is a core strategic priority for the EIB Group. The initiative also aligns with European Commission President Ursula von der Leyen’s announcement of a pan-European investment platform dedicated to affordable housing solutions.

Europe faces a significant investment gap in its housing sector, particularly regarding innovation, renovation, and construction. Nearly half of the continent's homes were built before 1980, leading to high energy efficiency needs. Alarmingly, only 5% of the building stock has been renovated to meet modern standards. According to the EIB Group’s recent Investment Survey, over 70% of construction firms are not investing in innovation, primarily due to a lack of skilled labor, which 85% of firms identified as a significant barrier to investment.

Investment in research and development, along with the adoption of new materials and building technologies, is essential for enhancing the productivity and competitiveness of the European construction industry. Innovations are needed to improve insulation, energy performance, and the circularity of building materials, which would reduce the sector's environmental impact while boosting economic competitiveness. Retrofitting existing housing to incorporate modern systems for insulation, heating, and energy generation is crucial for meeting international climate goals, lowering energy bills for families and businesses, and improving living conditions. The estimated investment required for this retrofitting effort is €275 billion annually.

The EIB Group emphasizes investment in social infrastructure and the development of affordable and sustainable housing as key priorities outlined in its Strategic Roadmap. The recent endorsement of this roadmap by EU Finance Ministers signals a commitment to tackling these challenges. The ongoing work will focus on eight key priorities designed to enhance the availability of affordable housing throughout Europe, demonstrating a collaborative approach with public authorities and financial partners.

Today’s event signifies the first in a series organized by the EIB Group’s Housing Task Force, aiming to foster an inclusive and collaborative process to create a pan-European strategy that emphasizes innovation, sustainability, and affordability in housing. The EIB Group has been actively providing financing and advisory services to the housing sector for over 25 years, with a total support of approximately €13.4 billion for sustainable urban development and renovation in the past five years.

The event also presented examples of successful affordable and sustainable housing initiatives across Europe. These included innovative financial instruments and products aimed at providing investment opportunities. Case studies showcased featured collaborations with institutional investors in France, financial access facilitation in Poland, energy efficiency investment platforms in Ireland, and technological advancements in passive housing from Spain.

The EIB Group operates as the long-term lending institution of the European Union, financing investments that align with EU policy objectives. The group does not fund fossil fuel projects and is committed to supporting €1 trillion in climate and environmental sustainability investments by 2030. Approximately half of the EIB's financing within the EU is directed toward cohesion regions, promoting inclusive growth and equal living standards.