The concept of EuroPACE is inspired by the success of an on-tax financing model called PACE, launched in California in 2008. In the US, in the past four years, the PACE market reached over $4.7 billion in funded projects, including the retrofit of over 200,000 homes, which resulted in more than 42,000 new local jobs and the creation of hundreds new companies.
PACE can be used to pay for energy efficiency, renewable energy, and water conservation upgrades to homes and buildings. PACE financing covers up to 100% of a project’s costs and is repaid as a special assessment added to a property tax bill over a term of up to 20 years. EuroPACE adopts best practices from the US PACE market and intends to further enhance its reach, scope, and overall impact well beyond the American experience.
On-tax financing is a type of financing mechanism used to collect the repayment for money that was lent for investments in building improvements that meet a ‘valid public purpose’, e.g. save or produce energy.
Typically, investors lend money for deep retrofits up-front and then get repaid regularly through an additional charge on a tax bill. EuroPACE is a form of on-tax financing and it builds upon an existing relationship municipalities have with their citizens – the property tax system.
On 18 Oct 2018, the webinar "EuroPACE: Innovative Building Renovation Platform for European Cities" explored the EuroPACE building and home renovation platform and its application in Spain and potential adoption across Europe with a focus on 4 countries. The findings are based on the study that analysed legal, fiscal and market suitability of EuroPACE in EU 28.
This webinar has hosted 3 presentations:
-Andrew R. Deacon from Climate Alliance gave an overview of the challenges and barriers faced by local authorities when it comes to developing and delivering home renovation programmes.
-Davide Cannarozzi, Founder and Managing Partner of GNE Finance has presented the EuroPACE initiative - from the concept to its implementation, with a particular focus on benefits and potential impact of this innovative instrument. Davide also spoke about the EuroPACE pilot in Spain.
-Karolina Zubel, a Senior Researcher from CASE highlighted potential EuroPACE application in EU 28 and highlight 4 most promising countries.