Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
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<strong>Multiple</strong> <strong>benefits</strong> <strong>of</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> energy<br />
efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
Action: Remove/reduce such tax advantages to render energy efficient <strong>renovation</strong> <strong>of</strong><br />
build<strong>in</strong>gs more attractive, and provide direct net revenue ga<strong>in</strong>s to public budgets.<br />
Barrier 4: Handl<strong>in</strong>g <strong>of</strong> risk <strong>in</strong> <strong>renovation</strong> projects has traditionally been a weak po<strong>in</strong>t.<br />
Investors may face high up-front costs, which imply that they run more substantial risks<br />
than for a similar project with lower up-front costs. In this respect it is an important question<br />
how you set up, monitor and evaluate performance contracts that ensure that the<br />
owner/user <strong>of</strong> the build<strong>in</strong>g de facto gets the promised <strong>benefits</strong> required to pay back the<br />
substantial and non-reversible <strong>in</strong>vestment cost over time. Concepts such as Energy Service<br />
Companies (ESCO) and Energy Performance Contracts (EPC) which are explicitly<br />
designed to align risks and responsibility for the outcome <strong>of</strong> such projects have not been<br />
fully developed to deliver on deep <strong>renovation</strong> projects. In fact, there are examples <strong>of</strong><br />
countries not allow<strong>in</strong>g the use <strong>of</strong> EPCs <strong>in</strong> the public sector.<br />
Action: Well-designed risk-shar<strong>in</strong>g programmes can help government as well as private<br />
build<strong>in</strong>g owners to realise cost sav<strong>in</strong>gs with very limited budget costs.<br />
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