How to make the ECB’s negative interest rates pay for building renovations

This policy paper proposes to turn the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTROs) programme into a dedicated financial instrument to scale up bank loans for energy efficiency and building renovations.

With its “Renovation Wave” initiative, the European Commission has rightly identified improving the energy efficiency of buildings through renovations as a key priority for the EU’s climate strategy. However, without scalable financial firepower, the European Commission is doomed to disappoint on its ambition to double the pace of building renovation by 2030.