1. Promoting Energy Efficiency in Buildings: the CEB’s Experience León Herrera Director of European Affairs Brussels - 19 June 2009

2. 2 A multilateral development bank with a social vocation  CEB: supranational financial institution set up in 1956 by 8 member countries of the Council of Europe  Main objective: foster social cohesion in Europe  40 European member States today among them 21 Central, Eastern and South- Eastern European countries have joined the Bank since the early 1990s

3. 3 Key figures  Some € 30 billion in projects financed since inception  Outstanding loan portfolio: € 12.4 billion  Total assets: € 21 billion  Shareholders' equity: € 1.8 billion  Loans disbursed in 2008: € 1 505 million  Rating AAA (Moody’s, S&P, Fitch) (figures as of December 2008)

4. 4 CEB’s approach to energy efficiency in the residential building sector  EE not only has an economic impact but also a strong social dimension:  helps to compensate poverty in fuel  improves living conditions  helps to soften social inequality  “It is vital to interlink EE policies in housing and social policies” (UNECE, EE in housing March 2009)  What does the ”residential building sector” cover?  Houses, of course  Student residences, residences for elderly persons  Schools, hospitals, retention centres? (social/HR issue)

5. 5 CEB and energy efficiency in housing (1/2)  Since 2000 ca € 550 million approved in favour of housing projects  Out of which some € 340 million (> 60%) for improving energy efficiency  Already about 86,000 housing units financed (figures as of 31 December 2008)

6. 6 The project:  Prime objective: reduce household energy consumption and encourage use of renewable energy in housing  Part of national energy saving and energy efficiency improvement programme 2000-2010 Beneficiaries: Households, municipalities, condominiums and housing co- operatives Hungary: energy efficiency in housing (1/3)

7. 7 Hungary: energy efficiency in housing (2/3) EE measures applied:  Renovating and modernising buildings for the purpose of energy saving: External thermo-insulation (over-cladding), reduction of thermal breaks; replacement of single glazed doors/windows, retrofitting heating, hot water supply and electrical/lighting system  Fitting individual (per flat) heat thermoregulatory and consumption measuring devices in buildings supplied by district heating  Installation of solar, photovoltaic, biomass, geothermic or wind devices for heating and electricity generation purposes (under National Energy Plan, NEP)

8. 8 Implementation schedule: 2006-2010 Financial instrument: Loan to government, to complement budgetary resources. Government grants to final beneficiaries Project partners included: Hungarian Ministry of Finance (borrower), Ministry of Economy and Transport and Ministry of Local Government and Regional Development (implementing) Progress to date: Up to 200,000 dwelling units (at end 2008), of which 80% were subject to energy efficiency measures. Expected energy savings around 20-30% Hungary: energy efficiency in housing (3/3)

9. 9 The project:  Renovation of 35 higher education and science institutions  Sub-projects located throughout Lithuania (in 7 main cities) Objectives:  Improved thermal insulation of 370 buildings and consequent cost savings  Improved health and safety conditions of building occupants  Improved living conditions in student dormitories Lithuania: energy efficiency in higher education facilities (1/3)

10. 10 Lithuania: energy efficiency in higher education facilities (2/3) EE measures applied:  Insulation of roofs and external walls  Replacement and renovation of windows  Renovation of heating and ventilation systems Results:  Average decrease in energy consumption of between 20%-30% for the renovated facilities; consequent reduction in atmospheric emissions (CO 2 )  Improved standards of working, studying and living  Increase of the buildings’ usable surface and optimisation of already existing capacity due to better thermal insulation

11. 11 Lithuania: energy efficiency in higher education facilities (3/3) Project implementation in 2 stages: 2001-2002 (Stage 1), 2003-2006 (Stage 2) Financial product: Loan to government to complement budgetary resources Project partners: Lithuania Ministry of Finance (borrower), Ministry of Education and Science, Central Project Management Agency (implementing) Lessons learned: Lack or scarce budgetary resources, cast over several years/ investment items, results in inefficient use of funds. A good implementation agency is capital to achieve solid results

12. 12 For more information: For more information: Council of Europe Development Bank (CEB) Directorate General for Loans Projects Department 55, avenue Kléber 75116 Paris, France Tel: +33 1 47 55 55 00 Fax: +33 1 47 55 37 52 www.coebank.org