This report covers the role certain types of energy service agreements (ESAs), combined with federal incentives, can play in scaling AMFH retrofits, maximizing the impact of the 2022 Inflation Reduction Act in decarbonizing existing buildings.

Energy service companies (ESCOs) offer solutions for solar PV, energy efficiency, and electrification measures; often assume some amount of project performance risk; and provide project financing under an ESA. Certain types of ESAs present a viable solution for solving the split incentive issue, financing mid-cycle AMFH retrofits, and addressing the challenges owners may face covering the upfront costs of comprehensive improvements.

This report is based on interviews with ESCOs and techno-economic analysis that quantifies the potential of ESAs for financing building decarbonization packages.

Cities across the world have been battling a housing crisis in recent decades, with many residents increasingly struggling to find affordable homes, and broader issues arising around tackling homelessness, improving housing quality, and harnessing the role of housing in climate change mitigation. This housing crisis has been exacerbated by the cost-of-living crisis that saw inflation reach record highs in 2022. City mayors can take critical action through their powers over housing, land use, and infrastructure.

This paper highlights the systemic issues underlying the housing crisis in cities, and offers inspiring examples of how cities in OECD countries and beyond have been addressing these challenges. It aims to inform the 6th Meeting of OECD Champion Mayors for Inclusive Growth and drive positive change towards more affordable cities and homes for all.

Download the paper here