The Role of Digital Platforms in Overcoming Market Failures in Building Energy Renovations

This study investigates the economic benefits of digital plat-forms in addressing market failures within the building energy renovation sector in Europe. While significant capital is available for sustainable in-vestments, the market is characterized by profound information asymmetry and high transaction costs, which hinder the efficient alloca-tion of green capital. Using the ENERGATE platform as a case study, this paper examines how an AI-driven matchmaking system can standardize and aggregate projects, reduce information gaps, and match project supply with investment demand. Our analysis suggests that such platforms can significantly lower search and transaction costs for financiers, thereby mobilizing capital that would otherwise remain untapped. The findings provide insights into how technological solutions can create a more liquid and efficient market for sustainable investments, accelerating the transition to a low-carbon economy.