Multiple benefits of energy efficiency investments for financial institutions. Final report

The topic of multiple benefits in energy efficiency has been explored in different contexts over the past years and is slowly gaining momentum. Multiple benefits such as job-creation, energy poverty alleviation, public health and environmental sustainability are increasingly considered by policymakers. However, these benefits are not yet fully part of the financing and investment decision making routines of financial institutions. Other benefits relevant for investment decision makers, since they are directly linked to the asset (such as improved comfort, higher property value, healthier inhabitants/users), are very often not considered in decision making. There is a common understanding that properly analysing the potential of these co-benefits can significantly increase the attractiveness of energy efficiency measures and boost their deployment. This is specifically true for buildings, as for example health benefits are not realized only through a switch of the heating system but mostly through an efficient renovation. This reduces draught, outdoor air pollution and indoor air quality (IAQ). Multiple benefits are important for all actors involved in decision making. For financial institutions it is important to value their positive impact on project performance and risk profile, as well as their overall benefits for individuals and the society as a whole. In this context and focussing on financial institutions, the working group on multiple benefits explored two main areas: methodologies to monetise the multiple benefits and to integrate them in investment decision-making and financing procedures; decision-making processes by investors as well as in financial institutions related to energy efficiency investments and how multiple benefits can play a role in increasing the uptake of energy efficiency measures.