European Regional Development Fund ERDF: eligibility of energy efficiency and renewable energy investments in housing

PURPOSE: to permit the Member States to frame the public support in the way they consider more appropriate and, for the definition of the low income households, to use national definitions.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

CONTENT: in dealing with the financial crisis, the Commission took the initiative to propose to the Member States a framework aiming to stimulate the real economy (see COM/2008/0706). This initiative endorsed by the Member States has subsequently been substantiated by the European Economic Recovery Plan which, among other, suggests the adoption of actions in the priority areas of the Lisbon Strategy. As for the energy, special attention is given to the improvement of energy efficiency in buildings. Member States are, therefore, encouraged to re-programme their Structural Funds Operational Programmes in order to devote a greater share to energy-efficiency investments, including where they fund social housing.

Under the current regulatory framework, ERDF supported interventions in the housing sector, including energy efficiency, are reserved only for Member States that acceded to the European Union on or after 1 May 2004, and under the conditions set out in Article 7(2) of Regulation (EC) No 1080/2006. Such support for energy efficiency and renewable energy investment in the housing sector should be made available for all Member States. To make this happen, an amendment to the current regulatory framework is needed.

The proposed modification to Regulation (EC) No 1080/2006 on the European Regional Development Fund seeks to permit and facilitate energy efficiency and renewable energies interventions in the housing sector in all Member States. Interventions should target low-income households, as defined by the national legislation in force.