Despite the urgency, there is a major funding gap to meet the EU's 2030 targets for energy renovations. Estimates suggest that achieving these targets will require €335 billion in annual public and private investments from 2024 to 2030.

WWF has advocated for a revised Energy Performance of Buildings Directive to improve financing for energy-efficient renovations. While the final agreement lacks mandatory banking mobilisation measures and contains some loopholes, it mandates the Commission to develop guidelines on this topic for future progress. WWF plans to monitor the development of these guidelines and intervene as necessary to ensure they effectively encourage financial institutions to increase lending for energy performance renovations. Although currently voluntary, WWF urges for these guidelines to be made mandatory in the coming years to strengthen their impact.

Additionally, WWF is also focused on further developing the green lending sector. This includes advocating for the introduction of clear definitions for various financial products and the establishment of conditions to ensure their accessibility, availability, and affordability across Member States. WWF believes these goals could be achieved through reviews of relevant legislation, such as the Mortgage Credit Directive.

In parallel, WWF is advocating that harmful lending - for fossil fuels and other environmentally harmful assets - needs to integrate the related financial risks through adjustments of capital requirements for banks and insurers, in the Capital Requirement Regulation and Solvency Directive. Such risks need to be assessed, disclosed and mitigated to protect financial stability.