Fostering EU Cooperation to Enhance Financing for Affordable and Sustainable Housing
The European Association of Public Banks (EAPB) successfully hosted a high-level panel discussion on “Shaping the Future of Affordable and Sustainable Housing in Europe” at the Representation of the State of North Rhine-Westphalia in Brussels. The event brought together key stakeholders, including regulators, public banks, and social housing associations, to address the urgent need for a coordinated approach to financing social and affordable housing across Europe.
The event highlighted the critical investment gap in social infrastructure, with an estimated annual shortfall of EUR 100-150 billion, including EUR 57 billion specifically for housing. This underscored the need for both public and private investments to bridge this gap and ensure the availability of affordable housing across Europe.
As part of the European Commission's efforts, the European Affordable Housing Plan aims to enhance market liquidity, increase cohesion policy investments, and revise state aid rules to support energy-efficient and social housing. The panel emphasized that public funds alone will be insufficient, and that a comprehensive EU-wide approach that empowers each key stakeholder, including a clear definition of social impact financing and relevant financial instruments, is essential to attract private investment. The notion of affordability varies across jurisdictions and so do the solutions. Hence, public and promotional banks which have the local knowledge and experience are pivotal for the solution.
Experts in the field, including Ms. Kim van Sparrentak, MEP (GREENS/EFA), Mr. Johannes Böhmer, Vice-Governor of Social Development Strategy at the Council of Europe Development Bank (CEB), Ms. Sorcha Edwards, Secretary General of Housing Europe, Mr. Stefan Moser, Head of Unit at DG ENER, European Commission, and a representative of the European Investment Bank (EIB) as well as Mr. Esa Kallio, CEO of MuniFin, and Ms. Merle Becker, (moderator), discussed key strategies for enhancing social housing investments, ensuring long-term sustainability, and the critical role of public banks in financing social housing projects. These banks, including the EIB and CEB, are essential in filling market gaps, ensuring energy-efficient, affordable, and inclusive housing, and supporting the green transition in social housing.
The EAPB is committed to supporting affordable and sustainable housing through cooperation at all levels, with its members working to bridge Europe’s social investment gap, which is expected to reach EUR 1.5 trillion by 2030. EAPB members also take into account the green objectives when providing funding, aligning with EU sustainability goals and supporting energy-efficient housing solutions. As implementing partners under InvestEU, they are critical in directing funds to both sustainable development and the expansion of social housing.
In her opening speech, EAPB President and CEO of NWB Bank, Ms. Lidwin Van Velden, stated:
“To foster affordable and sustainable housing it is necessary to join forces and work together. Public banks, in partnership with private entities, must drive investments that meet both social and sustainable objectives. We are committed to fostering cooperation that enables growth and change, ensuring that affordable and sustainable homes are not just a vision but a reality for all.”
Event takeaways are available here - Pictures are accessible here - For inquries contact us here - Download the press release here