Buildings account for up to 40% of energy consumption in many EBRD countries of operations. A significant number of these buildings are not properly insulated or heated which results in high energy bills, inefficient energy spending, deterioration of the building fabric and poor living conditions. There is great potential for significant energy saving, but relatively little investment has been made in this area in many of the EBRD countries of operations. It is the legal and regulatory framework which is often a key barrier to attracting adequate sustainable investments. In response, the EBRD has developed local-bank credit lines which provide financing for energy-saving measures in a number of countries; some of these measures include the insulation of outdoor walls and roofs, replacement of windows, and installing heat pumps, solar thermal collectors and high-efficiency gas and biomass boilers.
We are supporting governments to develop the necessary legal and regulatory framework for the building sector, in order to enable, sustain and maximise further private-sector financing of building energy efficiency.. Even though many residential buildings in the EBRD regions have been privatised, the management structure (including operation and maintenance) is rarely adequate and often characterised by conflicting responsibilities between apartment owners and local state authorities (e.g. related to ownership of and responsibility for common areas of residential buildings and/or the land).
To overcome these deficiencies, the LTP supports governments to introduce changes to building legislation and housing codes to ensure the clear rights and responsibilities of stakeholders, the minimum energy efficiency performance standards of stakeholders, inspection and auditing. A gradual movement to cost recovery in the energy sector and the avoidance of cross subsidies is another essential component of a targeted energy efficiency policy.