In light of the current economic situation, one way the public sector can invest in building energy efficiency is by using European Structural and Cohesion Funds, financial tools set up to implement the regional policies of the European Union (also known as Cohesion Policy).
Structural Funds are made up of the European Regional Development Fund (ERDF) and the European Social Fund (ESF). Cohesion Funds are used to fund projects in the environment, transport, infrastructure and renewable energy sectors. More than a third of the European Union budget is used for Cohesion Policy.
The current regional policy framework, running from 2007 ‐ 2013 was allocated €350 billion. The Structural and Cohesion Funds offer a good opportunity to bridge the gap between potential and actual energy efficiency investments, as part of the funds is directly dedicated to sustainable energy. The share for energy efficiency and renewable energy represents about €9 billion, of which €4.3 billion is available for New Member States.