CASE at COP24 in Katowice
On December 12th, our expert Karolina Zubel will present EuroPACE project, led by CASE, at COP24 in Katowice. She will also discuss how home renovation can be made easier, faster and more affordable for all Europeans.
Within EuroPACE project, we invent and eventually implement an innovative on-tax financing scheme for home retrofits based on the American Property Assessed Clean Energy (PACE) model[1], and we also assess what kind of competition (including the one based on tax systems) to this financial mechanism is available on the market thus far. As a result, we are not only frontrunners in creating a breakthrough climate-oriented financing scheme based on taxes, but we also have a holistic view of other initiatives across the EU (theoretical and practical approach).
Why is EuroPACE unique and could be seen as a game-changer in the energy efficiency debate?
- 100% financing through private capital, i.e. big pension funds’ investments (relief for central and municipal budgets);
- Long term - up to 25 years - cash flow positive projects (banks usually provide loans for 5-7 years making it more burdensome for debtors);
- Simple re-payment (the client pays back for the up-front financed retrofit together with the property tax);
- Transfers to the new owner upon sale - financing stays with the property, not the property owner when he decides to sell it;
- EuroPACE is a senior lien on the property, recorded as separate charge on a regular property tax bill (senior to normal mortgage).
Poland, together with Austria, Belgium, Italy, the Netherlands, Portugal and Romania, has been selected to the 2nd phase of the EuroPACE project in which market potential for on-tax financing will be further analysed. Given its stable property tax system reflected in high collection rates across the country (close to 100%), municipal engagement in tax collection, as well as an overall positive social perception towards property-related taxes (when compared to other levies), from a legal and fiscal perspective, the country is believed to be a perfect candidate for EuroPACE application. Poland received 22/28 points in the in-house developed methodology for EuroPACE readiness which is the equivalent to 78,57% suitability. The more detailed market assessment, which is to be finalised by March 2019, will be the ultimate factor deciding whether the next EuroPACE pilot will be taking place somewhere in Poland.
Currently, in parallel to research phase, project leaders are involved in a pilot in Olot, Catalonia.
Once the research is finalised and pilot aims achieved, it will be easier to scale EuroPACE across the continent.
More information about EuroPACE: http://www.europace2020.eu/
[1] Europe+PACE=EuroPACE
