European Court of Auditors finds flaws in residential energy upgrade funding

The European Court of Auditors published a report on Tuesday in Luxembourg identifying planning and monitoring deficiencies in residential energy upgrade programs funded by the Recovery and Resilience Facility in Cyprus, Belgium, Italy, and Lithuania. Regarding Cyprus, the report notes that it was the only country among the four that pursued deep renovation projects, accounting for 20% of its renovation budget. However, auditors concluded that the reported energy savings do not meet the mandatory 30% minimum threshold based on actual building data. Furthermore, the report indicates that 88% of the energy savings claimed by Cyprus result from the installation of photovoltaic panels. While these panels reduce carbon emissions, auditors stated that they do not decrease the actual energy consumption of buildings as required by efficiency directives. These findings raise doubts regarding the effectiveness of the implemented measures in meeting the expected energy saving targets.