The European Commission and the European Investment Bank (EIB) Group are partnering with Europe's national promotional banks (NPBs) and international financial institutions (IFIs) to develop new financing opportunities for affordable and sustainable housing across Europe. At the EIB Group Forum in Luxembourg today, European Commissioner for Energy and Housing Dan Jørgensen and EIB Group President Nadia Calviño underlined the importance of tackling one of the most pressing concerns of citizens and governments in the European Union.They advocated a pan-European push that brings together local and national, public and private actors to catalyse finance and urgent action under the Commission's upcoming European Affordable Housing Plan.
Their call comes as the EIB Group completes work on an Action Plan for Affordable and Sustainable Housing with planned investments of around €10 billion over the next two years. The EIB Plan will support local and national efforts to build more affordable homes, renovate existing housing stock to be more energy efficient and encourage more sustainable and innovative building materials and equipment. The EIB also launched a housing portal, a one-stop shop to support final beneficiaries to access advice and finance. The EIB Group's investment aims to deliver 1.5 million new or renovated housing units across Europe. The EIB Action Plan and the portal are key building blocks for the pan-European investment platform, which will be open to other players such as NPBs and IFIs. The Council of European Development Bank has also signalled its interest in participating.
The lack of affordable housing in Europe, particularly in larger cities, is highlighted as an increasing concern in relation to Europe's economic growth and productivity in the EIB Group's investment survey based on feedback from around 13,000 European small and medium-sized enterprises (SMEs). The report, presented this week at the Forum, also notes low productivity and insufficient innovation in the European construction sector, adding to the cost and time of delivering housing projects. At the same time, the cost of energy and the impact of carbon-dioxide emissions are also a concern. Two-thirds of household energy consumption are used for heating homes and, with 46 million Europeans living in energy poverty, the energy efficiency of Europe's housing stock is a key focus.
Working closely with the Commission and its new Task Force for Housing in the context of the European Affordable Housing Plan, as well as Member States, regions, cities and NPBs and IFIs, the EIB Group aims to raise the supply of affordable and sustainable housing in the EU. The approach rests on four pillars, which provide the general framework for the measures described further below:
- Partnerships with the European Commission and NPBIs/IFIs for easier access to finance and advice, based on complementarity with existing structures and products.
- EU-wide rollout: widening the regional scope of EIB Group support with an emphasis on EU countries with less mature housing systems and large unmet needs, where an enhanced advisory component will complement financing.
- Value-chain approach: opening up to new types of housing projects – from innovation in construction to real-estate development to ownership, with policy safeguards.
- Mobilisation of private sector: expansion of the client base to include private, for-profit promoters
In July 2024, the EIB Group's newly established Housing Task Force organised a kick-off event featuring around 300 public and private stakeholders to discuss scaling up financial support for affordable and sustainable housing throughout the EU. The event was followed by technical meetings in the autumn with stakeholders to help shape a pan-European investment platform alongside the Commission.
Background
The European Commission is already active on housing, with support through the Recovery and Resilience Facility, Cohesion Policy Funds, InvestEU, LIFE and Horizon Europe, among others.
As outlined in the mission letter of Commissioner Jørgensen, the Commission will publish its first-ever European Affordable Housing Plan. The plan will offer technical assistance to cities and Member States and focus on investment and skills needed. The Commission will in particular develop a European Strategy for Housing Construction to support housing supply, establish a pan-European investment platform for affordable and sustainable housing, conduct an analysis of the impact of housing speculation, support Member States to double the planned cohesion policy investments in affordable housing, tackle systemic issues with short-term accommodation rentals and make proposals to tackle the inefficient use of the current housing stock and revise state-aid rules to enable housing support measures, notably for energy efficiency and social housing.
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities , we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF) , signed nearly €89 billion in new financing for over 900 high -impact projects in 2024, boosting Europe's competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap . Almost 60% of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe's energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.
