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  • Commissioner for Energy and Housing Dan Jørgensen joins EIB Group President Nadia Calviño to initiate a pan-European investment platform for affordable and sustainable housing, emphasizing the necessity of affordable housing in a productive economy.
  • At the EIB Forum, the EIB Group announced the upcoming launch of its Action Plan, with a new housing portal to provide advice and finance, aiming to innovate the construction sector and invest in energy-efficient housing with €10 billion planned investments over the next two years.
  • The EIB Action Plan and portal are foundational for the pan-European investment platform, open to other stakeholders like national promotional banks and international financial institutions.

The European Commission and the EIB Group are collaborating with national promotional banks and international financial institutions to enhance financing for affordable and sustainable housing across Europe. During the EIB Group Forum in Luxembourg, European Commissioner for Energy and Housing Dan Jørgensen and EIB Group President Nadia Calviño emphasized addressing pressing housing issues by uniting local, national, public, and private entities to catalyze finance under the Commissions European Affordable Housing Plan.

This initiative aligns with the EIB Groups Action Plan for Affordable and Sustainable Housing, which includes €10 billion investments planned over two years to build and renovate housing stock with a focus on energy efficiency and innovative building materials. The EIB also launched a housing portal to provide advice and financing to beneficiaries, aiming to deliver 1.5 million new or renovated housing units across Europe. The platform invites participation from other stakeholders, like NPBs and IFIs, with interest from the Council of European Development Bank.

The lack of affordable housing in Europe, especially in major cities, is a growing concern affecting economic growth and productivity, as noted in the EIB Groups investment survey of 13,000 European SMEs. The report highlights low productivity and innovation in construction, affecting housing project costs and timelines, alongside concerns about energy costs and carbon emissions. With two-thirds of household energy consumption for heating and 46 million Europeans in energy poverty, energy efficiency in housing is critical.

The EIB Group, in collaboration with the Commission and its new Housing Task Force, aims to increase the supply of affordable and sustainable housing across the EU. This effort is structured around four pillars: partnerships for easier access to finance and advice, an EU-wide rollout focusing on regions with unmet needs, a value-chain approach for diverse housing projects, and mobilizing private sector involvement.

In July 2024, the EIB Groups Housing Task Force hosted a kickoff event with 300 stakeholders to discuss scaling financial support for housing. This was followed by technical meetings to help shape the investment platform with the Commission.

Background

The European Commission actively supports housing through various funds and programs, including the Recovery and Resilience Facility, Cohesion Policy Funds, InvestEU, LIFE, and Horizon Europe. As per Commissioner Jørgensens mission letter, the Commission will publish its first European Affordable Housing Plan, offering technical assistance and focusing on necessary investments and skills. The plan will develop a European Strategy for Housing Construction, establish an investment platform, analyze housing speculation impacts, support increased cohesion policy investments, address short-term rental issues, and propose state-aid rule revisions for energy efficiency and social housing support.

The European Investment Bank (EIB) is the EUs long-term lending institution, owned by its Member States, supporting investments aligned with EU policy objectives in climate action, digitalization, and more. The EIB Group, including the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 impactful projects in 2024, enhancing Europes competitiveness and security. All EIB Group projects align with the Paris Climate Agreement, with 60% of financing supporting climate change mitigation and adaptation. The Group also mobilized over €100 billion in new investment for energy security and €110 billion in growth capital for startups and scale-ups. Approximately half of EIBs financing within the EU targets cohesion regions with lower per capita income.

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