Macroeconomic project

The project has a strong macroeconomic dimension as it will allow the financing of € 50-100 bn investment over a period of 10 years. In this case, this mechanism is applied to French public buildings, but it could of course be extended – subject to further studies – to other needs of the energy transition in France and Europe (need estimated at € 38 bn of additional annual investments on average between 2011 and 2030 to achieve the EU’s objectives in terms of carbon policy[1]). The buildings sector was selected as a priority sector due to its strong and direct impact on jobs creation.

In France, investment needs by 2050 are about € 2000 bn[2] for the energy transition as a whole. About half of it relate to the renovation of buildings and housing. In fact, the need is estimated to be around € 30 bn/year according to ADEME (the French Environment and Energy Management Agency), which is significantly higher than the current annual investments of roughly € ​​20 bn/year (of which € 6 bn for tertiary buildings)[3]. At the level of the European Union, the needs have been estimated at almost € 600 bn between 2012 and 2020[4]. The ESFA project proposes a focused effort of € 5-10 bn of operations per year during 10 years, in order to catch up with the chronic lack of infrastructure investment in the country, and especially in its public buildings. What is more, it is a tangible response to the huge needs for long-term finance in Europe (see Green Paper[5]).

The macroeconomic dimension of the ESFA project is also a key element to tackle deflationary risks identified in late 2013 in the euro area, resulting to a large extent from the energy crisis of the early century, in which oil prices were multiplied by 4 between 2003 and 2013. In comparison with other stimulus packages that have remote or indirect impacts and packages that are less clearly earmarked for specific purposes (banking sector through VLTRO[6], tax scheme), a comprehensive and massive plan for energy efficiency renovations would be a very useful tool for a quick and controlled economic recovery. If the Maastricht constraint was lifted in an emergency to achieve such a stimulus, many analyses and proposals of the ESFA project would remain just as much relevant.

The ESFA project is replicable in other EU countries in our view, and – to a certain extent – in any country wishing to implement an ambitious EE plan for its public buildings. Moreover it should also allow French “industrial leaders” to emerge, and become able to export their technology and skills globally. For instance, it can be an industrial policy tool for the wood energy sector, and potentially facilitate the deployment of district heating in France. At this stage of the study, the question of the ER of public buildings and its financing in Europe does not seem to be the subject of specific studies: in this respect, the ESFA project which capitalizes on a strong level of expertise in France on these subjects is certainly innovative and exemplary.