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

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

The European Investment Bank (EIB), the long-term lending institution of the European Union, has gathered over 300 public and private stakeholders for its first meeting aimed at addressing the pressing issue of affordable and sustainable housing across Europe. This initiative coincides with European Commission President Ursula von der Leyen’s announcement regarding the establishment of a pan-European investment platform dedicated to affordable housing, in collaboration with the EIB Group.

Europe’s housing sector is currently facing a significant investment gap, particularly in areas such as innovation, renovation, and construction. Notably, half of Europe’s housing stock was constructed before 1980, indicating a critical need for investment in energy efficiency renovations—only 5% of buildings have undergone such upgrades. According to a recent EIB Investment Survey involving 12,500 EU firms, over 70% of construction companies are not investing in innovation, with 85% citing a lack of skilled staff as a major barrier to investment.

To address these challenges, the EIB Group emphasizes the importance of investing in research and development, new materials, and digital transformation within the construction sector. The goal is to enhance productivity and competitiveness while also focusing on energy performance and sustainability. Investment needs for retrofitting existing homes to improve insulation and energy efficiency are estimated at €275 billion annually.

The EIB Group’s Strategic Roadmap highlights that investment in social infrastructure and affordable housing remains a key priority. Following the recent endorsement of this roadmap by EU Finance Ministers, the EIB Group is now mobilizing efforts to achieve its eight strategic priorities. The event marks the beginning of a collaborative process led by the newly formed Housing Task Force, aiming to foster a pan-European approach centered on innovation, sustainability, and affordability.

For the past 25 years, the EIB Group has been actively involved in financing and advising the housing sector, contributing approximately €13.4 billion to sustainable urban development and renovations in the last five years. During the event, EIB Group President Nadia Calviño stated that the aim is to work together with experts to enhance investment in affordable and sustainable housing across Europe, ultimately improving productivity and competitiveness within the European economy.

The meeting also showcased various successful models of affordable and sustainable housing initiatives across Europe. Examples included investment platforms facilitating energy efficiency improvements and innovative instruments enabling access to finance for smaller providers. The discussions are expected to lead to actionable conclusions that will inform the EIB Group’s Housing Task Force in its ongoing efforts.

The EIB Group aligns its projects with the Paris Climate Accord, ensuring that no investments are made in fossil fuels. In its commitment to support €1 trillion in climate and environmental sustainability investments by 2030, the EIB Group aims for over half of its annual financing to directly contribute to climate change mitigation and adaptation efforts.

By bringing together key stakeholders and focusing on innovative solutions, the EIB Group is taking significant steps towards addressing Europe’s multi-billion housing challenge, fostering a more sustainable future for all.