Contributing to healthier populations by reducing energy poverty via innovative financial models

Abstract Issue/problem Energy poverty is a major challenge affecting 9.3% of the EU population (EUROSTAT 2022). Health problems attributable to energy poverty include respiratory diseases, heart attacks, stroke, and mental disorders. Governments must act quickly and intervene with policies and programmes that reduce energy poverty and promote citizens' health and well-being. Description of the problem We propose Social Impact Bonds (SIBs), a new family of instruments that address serious social challenges, to finance interventions targeting energy poverty,improving the health and well-being of households in a context of limited public resources. For this purpose, data from interventions to increase energy efficiency and combat energy poverty implemented during one year in 6 pilot sites in the framework of the EU project WELLBASED are used. First, a compliance check will be carried out, followed by an estimation of the costs, savings, and benefits of the application of SIBs to finance energy poverty reduction interventions with an impact on health. Results The results of the analysis will show whether the intervention to reduce energy poverty meets the necessary characteristics for a SIB to be implemented. In addition, the possible key actors that could lead its implementation are identified. Lessons If the interventions for the reduction of energy poverty carried out under the WELLBASED project are successful, SIBs could be considered as a valuable alternative to finance interventions that combat energy poverty and increase the well-being of citizens. Key knowledge on how to apply SIBs makers to tackle a serious social issue with important consequences on health will be at disposal of (EU and worldwide) local authorities and policy. Key messages • Energy poverty is a public health issue, requiring urgent support measures. • SIBs fund interventions via public-private collaboration to fight energy poverty and boost citizen wellbeing.