Insulation Makes Economic Sense

Insulation Is Good for Jobs & Government Income

insulation brings jobsGerman research shows that for every 1 euro investment in insulation products, 5 euros are returned through an increase in tax receipts and more employment. The insulation industry calls on National and Local government to give priority to energy conservation in buildings through fiscal and other measures.  Energy grants should be used to maximise the potential for increased  insulation before subsidising other Green measures.

Recently, the German Research Centre, Jülich,published the results of a study performed by KfW banking group. KfW received from the German federal government € 1.4 billion in 2010 to support the energetic upgrading of the German housing stock. This money allowed them to offer 1% interest promotional loans and make non-repayable contributions of  12.5% ​​of the insulation costs to anyone improving the heat retention of an older building by insulating the walls and roofs.

german economyThe final result? It was  8.9 billion € in promotional loans as part of a total f € 21.5 billion of investment attracted. This huge uptake saw 350,000 new jobs being created and the  German government gained an additional € 5.4 billion in revenues, while public spending – especially on a social level (unemployment, social benefits …) – decreased by € 1.8 billion.

For € 1.4 billion investment from the government, there was a return on investment of 7.2 billion €, or a ratio of 1 to 5. Or in other words every euro that Germany invests in energy conservation in buildings, brings the government 5 euros.

According to Petri Ven, Sr. Advisor and Construction Standards Update, “this study confirms that the environmental  benefits of insulation products is much larger than the environmental cost of it. It does not make sense for government to waste money on other Green technologies instead of more insulation.

Posted in: Green Deal

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