Use of structural funds for energy efficiency in existing housing in France

Carine PuyolNovember 29, 2010

L’Union Sociale pour l’habitat

- 4.2 millions of social housing dwellings in France- 10 millions of inhabitants housed- 770 companies, 76 000 workers- 13 billions of investments in 2009

Our commitment to improve energy efficiency: 800 000 households will benefit from energy retrofit for

their home by 2020

November 2011: 80 % of ERDF funds allocated in 22 months

4% of ERDF

ERDF allocated to EE

in housing

ERDF amounts

spent (or in

process)

216,4 M 208.5 M 167 M

How many Households?

May 2011: 64, 000 dwellings for low-income households retrofited with the contribution of ERDF (accepted or under approval process)

Average ERDF support: 2 886 euros per dwelling

Success Model: partnership National level: work with the French Administration on

the conditions of implementation of the ERDF measure in regions.

At the local level: Regional Associations of Social Housing with their partners work on

• Diagnosis and evaluation of needs at regional level• the definition of ERDF eligibility criterion,• Flexibility in the type of ERDF forms of interventions

(allocation/ financial tool) • Accompanying measures: support to social housing

organization• Capitalisation and monitoring

Leverage effect of ERDF

Eco-loan

National subsidies

local subsidies

FEDER

ERDF impact

Climatic aspect of the measure

Before After

71%

25%

4%

0%

0%

E F G

D

C

B

A

0%

2%

52%

31%

15%

E F G

D

C

B

A

Significant savings per Households

Estimation of energy savings per year per households:

– Based on local experience: energy retrofiting means 40% of energy saving

– 360 to 1000 €/year– Total gain in purchasing power:

18 to 54 Millions€/year

Employment impact Total investments generated

with ERDF support

= 1.013 billions euros

=15 000 jobs created or maintained

Local jobs:mainly SMEs, jobs that can’t be delocalized

•1MM d’euros investi dans la rénovation de logement= 14.2 emploi (source: MEDAAT)

Potential until 2014

- € 2.2 Billions investments

- 31 000 jobs created and maintained

- 110,400 households

Potential after 2014

- 17 billions of ERDF (as proposed by

Commissionner Hahn)

- ERDF = 640 Millions for France

- Total investment = 4.4 Billions

- Jobs created or maintened= 62 000

- 220 000 households impacted

Energy efficiency directive proposal: simulation of financial needs to refurbish 3% of

public buildings per year

If minimum requirement = class D734 millions €/ year > 27.192 housing/year

If minimum requirement = class C 2,3 billions €/ year > 87.912 housing/year

If minimum requirement = class B3,2 billions €/ year > 119.592 housing/year

If minimum requirement = classe A3,5 billions €/ year > 132.000 housing/year

2014-2021= 17 Billions to improve energy efficiency isa minimum !

Conclusion

- Importance of consuming all the 4% of ERDF to prevent the breakdown of consumption between 2011 and 2014

- Importance of supporting the proposals of the European Commission to devote at least 20% of ERDF for energy efficiency