Financing the (Environmental) Quality of Cities with Energy Efficiency Investments

The purpose of the paper is to study the financing models in order to drive the large amount of financial resources, already allocated for energy efficiency, to improve the quality of cities. These resources are being deployed worldwide by both public and private financial institutions. Energy efficiency is usually managed at the scale of the buildings, i.e., consumption reduction (heating, lighting, etc.). The study methodology is to review energy-efficiency finance (EEF) models, and assess them using multiple case studies. At the same time, the ownership of cities’ spaces is studied across public-private space management, as an effective methodology to bridge the gap between public and investor finance. The comparative analysis of the case studies suggests a paradigm shift in the definition of energy efficiency, not just in terms of the buildings, but instead also the local urban environment with its feedbacks on the quality of urban living. The practical implications are innovative EEF models, such as those being reviewed, which may be: (1) analytical, to assess the environment at the scale of blocks or neighbourhoods; (2) financial, to fund the specific scale; (3) relating to policy, to support and encourage. In recent years, support for urban regeneration is becoming particularly relevant, given the budget constraints of most public administrations and the conjunctural shortening of private partnerships.