How Energy Efficient refurbishment in housing can create jobs in the EU. A presentation at the Industry, Energy and Research Committee of the European Parliament by the CECODHAS Housing Europe Secretary General, Claire Roumet and Deputy Secretary General, Sorcha Edwards. 7 February 2012 in Brussels

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Job creation potential
of energy efficiency refurbishment
in housing
Energy savings Coalition
Hearing at the European Parliament, ITRE,
Brussels 7 February 2012
Claire.roumet@housingeurope.eu;
Sorcha.edwards@housingeurope.eu

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Short overview of the presentation
 Energy efficiency potential in
the housing sector: very local,
very work intensive
 The economic and job impacts
are more important than
reduction of GhG emissions
 Still, it does not speak to
economic leaders because it is
not tradable industries, very
fragmented markets
 Among all the works in the
construction industry, the
energy efficiency refurbishment
works have the biggest
multiplier effects
Some examples evaluating the
impacts of refurbishment on jobs:
The Basque Country programme
of 2008/2009
The French ERDF
implementation since 2009
Question for future policies and
lobbying

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- 52.08 m people cannot
keep their home
adequately warm
- 161.42 m are facing
disproportionate housing
expenditure
- 87.46 m are living in
poor quality dwellings
- 41.74 m face arrears on
their utility bills
Source: Bouzarovski
Birmingham university

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What is the construction industry in Europe ?
 share of GDP differs from
one country to another, but
is range between 4% to 6%
for housing investment. It
represent 23% of
households expenditure

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Job potential in EE refurbishment
In terms of retrofitting activities, it is generally accepted that
every US$1 million invested in building-efficiency retrofits
would create 12-17 direct jobs and 4-7 indirect jobs. (UNDP)
In France, 4% of ERDF from 2007-2013 represent a public investment of
320 millions € creating 25.000jobs (15.000 already, 10.000 for the two
left years); impacting more than 100.000 households
On these assumptions, 8 billions of € (4% of ERDF 2007-2013) in EU 27
would generate 55 billions € could create almost 800.000 FTE so more
than 100.000 jobs a year (direct and indirect)
So far, only 1.7€ billions have been programmed, generating 8.5€ Billions
investments and creating 100.000 jobs impacting 400.000 households
energy bills
SO WHY DO WE NOT CONVINCE POLICY MAKERS ?

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EE measures in housing: complex and diverse

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The more on energy refurbishment,
the more job intensive
(based on a program of 16.000 houses refurbished with a subsidies of
14.6 million €- Basque country, 2008)

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The more local…

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In days of fiscal consolidation…

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The economic impact
 Creation of jobs: 2000
1760 in the region, 160 in the country and 60 abroad

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EE refurbishment in housing is a cash machine policy

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To sum up
 It costs to support energy efficiency
 Jobs created in the different programmes, whether we take a very
strict definition costs 17.000€ to the public budget; or 7.300€ if we
take a broad perspective of the entire spill-over effect.
 Still less than unemployment benefit
 The economic activities generated = more fiscal revenue than
subsidies
 But the sector needs to be structured to ensure quality and trust
between the partners
 And the debate needs to shift from global competitiveness, meaning
an innovative export industry to very high-quality local economies

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And the Structural Funds 2014-2020
 20% of the total to be on EE in energy efficiency refurbishment in
housing would concretely mean:
 60 billions public EU budget to EE
 Generating 300 billions of investment
 Creating 3.5 millions jobs or a minimum of 500.000 jobs each year
 An impact in reducing energy consumption of 14 millions households
Can we afford not to do it ?

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Some sources
 Rode et a. (2011). Investing in energy and resource efficiency:
Buildings. in Towards a Green Economy: Pathways to Sustainable
Development and Poverty Eradication, United Nations Environment
Programme (UNEP),
http://www.unep.org/greeneconomy/GreenEconomyReport/tabid/29846/Default.
 Proyecto ‘Brev”: Beneficios de la rehabilitation de viviendas en la
generacion de actividades economica, creacion de empleo y el ahorro
de energia en el pais vasco; Institut Cerda, December 2010
 L’union sociale pour l’habitat, Bilan à mi-parcours de l’utilisation du
FEDER, June 2011