{"id":6991,"date":"2021-03-07T11:29:44","date_gmt":"2021-03-07T10:29:44","guid":{"rendered":"http:\/\/stanislasjourdan.fr\/?p=6991"},"modified":"2024-05-28T16:11:54","modified_gmt":"2024-05-28T14:11:54","slug":"report-scaling-up-buildings-renovation-with-ecb-credit-policy","status":"publish","type":"post","link":"https:\/\/stanislasjourdan.fr\/en\/2021\/03\/07\/report-scaling-up-buildings-renovation-with-ecb-credit-policy\/","title":{"rendered":"REPORT: Scaling-up buildings renovation with ECB credit policy"},"content":{"rendered":"\n<p><strong>New Positive Money Europe <a href=\"https:\/\/www.positivemoney.eu\/2021\/02\/report-building-renovation-wave-tltros\/\" target=\"_blank\" rel=\"noopener noreferrer\">policy paper<\/a> written together with Uuriintuya Batsaikhan proposes to turn the European Central Bank\u2019s Targeted Longer-Term Refinancing Operations (TLTROs) programme into a dedicated financial instrument to scale up bank loans for energy efficiency and building renovations.\u00a0<\/strong><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Under TLTROs, the ECB currently provides \u20ac1.75 trillion of loans to banks with negative interest rates (-1%), but without climate or environmental conditions. Because of this negative interest rate, the programme is effectively a public subsidy for banks.<\/span> <span style=\"font-weight: 400;\">The <a href=\"https:\/\/www.positivemoney.eu\/2021\/02\/report-building-renovation-wave-tltros\/\">report<\/a> proposes to launch a \u201cRenovation-TLTROs\u201d pilot programme under which the TLTRO rules would be tweaked to offer a super-negative discount rate (below the current -1.0%) to banks on their portfolio of loans that are dedicated to energy-efficiency renovation projects.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Key points of the paper:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">With its \u201cRenovation Wave\u201d initiative, the European Commission has rightly identified improving the energy efficiency of buildings through renovations as a key priority for the EU\u2019s climate strategy. However, without scalable financial firepower, the plan is doomed to disappoint on its ambition to double the pace of building renovation by 2030.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The discount rate offered under the Renovation TLTROs programme would boost incentives by banks to extend credit for renovation purposes, by reducing the transaction costs for banks and customers;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">It will incentivize and facilitate the process of setting up renovation projects for millions of households and businesses, by turning the banking sector into a distributed network of one-stop-shops for energy-efficiency renovations;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Easier access to bank loans for renovations will incentivise households and businesses to carry out deep renovations instead of lighter and insufficient projects;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">With mainstream access to virtually costless renovation loans, a number of existing public subsidies for renovation could be redirected towards <\/span><span style=\"font-weight: 400;\">public and social housing or for enhanced and targeted support for low-income households, empowering a fairer and just green transition.<\/span><\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-text-align-center wp-element-button\" href=\"https:\/\/www.positivemoney.eu\/wp-content\/uploads\/2021\/02\/2021_Building-Renovation-TLTROs.pdf\">Download the report (pdf)<\/a><\/div>\n<\/div>\n\n\n\n<p>This report was written in my (former) capacity of executive director of Positive Money Europe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Positive Money Europe policy paper written together with Uuriintuya Batsaikhan proposes to repurpose the European Central Bank&#8217;s TLTRO programme into a dedicated financial instrument to scale up bank lending for energy-efficient home renovations.<\/p>\n","protected":false},"author":1,"featured_media":6992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[416,99],"tags":[410,454,340],"class_list":["post-6991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eurozone-ecb","category-featured","tag-climate-change","tag-energy-efficiency","tag-ecb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/stanislasjourdan.fr\/wp-content\/uploads\/2021\/03\/green-tltros.png","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2om4O-1OL","_links":{"self":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/6991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/comments?post=6991"}],"version-history":[{"count":3,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/6991\/revisions"}],"predecessor-version":[{"id":9829,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/6991\/revisions\/9829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/media\/6992"}],"wp:attachment":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/media?parent=6991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/categories?post=6991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/tags?post=6991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}