Read a New Report from BPIE on Enabling Finance for Positive Energy Neighbourhoods

A new report from Buildings Performance Institute Europe (BPIE) titled "Enabling Finance for Positive Energy Neighbourhoods" gives an in-depth review of how innovative finance tools can be leveraged to support Positive Energy Neighbourhoods. These neighbourhoods, also known as PENS, integrate deep building renovations, sustainable infrastructure upgrades, and greener public spaces to create climate-neutral, resilient, and inclusive urban areas. Beyond reducing emissions, PENs generate additional benefits that range from healthier, more comfortable homes to enhanced social cohesion and local well-being.

To scale up these neighbourhood transformations, this publication emphasises the need to reduce dependence on public funds and mobilise private capital for long-term, sustainable investment. It explores barriers to financing, proposes innovative funding mechanisms, and highlights how to design models that fully capture PENs’ environmental and social value.

The paper provides a clear roadmap for policymakers, investors, and local authorities to accelerate the rollout of EENS across Europe by offering practical financing strategies and policy-relevant recommendations.

A key focus is on the strategic use of public funding, not as the sole source of capital for PENs, but as a catalyst that can de-risk and leverage private finance. The report also underlines the role of Environmental, Social and Governance (ESG) finance in supporting urban regeneration aligned with Europe’s decarbonisation goals.

Key Takeaways of the publication include: 

• Blended finance models should combine public and private resources to fund renovations, infrastructure upgrades, and urban regeneration projects that deliver environmental and social benefits.
• Inclusive financing solutions are essential to involve vulnerable households, covering up to 100% of renovation costs through a mix of grants, subsidies, and public loan guarantees.
• Comprehensive data collection throughout the renovation process can improve transparency, build investor confidence, and reduce perceived risk.
• Special Purpose Vehicles, operating independently or within renewable energy communities, can help aggregate investment and mitigate financial risks.

Source: BPIE