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Ambitious local climate policies CO 2 reduction

Ambitious local climate policies CO 2 reduction. Municipal strategies to approach homeowners in the Netherlands. ir. Milly Tambach, OTB Research Institute for Housing, Urban & Mobility Studies. Municipal Strategies. Presentation. Policy background

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Ambitious local climate policies CO 2 reduction

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  1. Ambitious local climate policies CO2 reduction Municipal strategies to approach homeowners in the Netherlands ir. Milly Tambach, OTB Research Institute for Housing, Urban & Mobility Studies

  2. Municipal Strategies Presentation • Policy background • Energy saving potential & barriers housing stock • Research Question & Method • Municipal strategies & policy instruments case studies • Summary • Discussion

  3. Municipal Strategies Policy background • EU climate and energy package-targets by 2020 • 20% reduction of greenhouse gas emissions (reference year 1990) • 20% share renewable energy in EU’s overall energy mix • 20% improvement of energy efficiency • Energy Performance of Buildings Directive 2002/91/EG • Objective: to promote improvement of the energy performance of buildings within the Community (EPBD, article 1) • Dutch government’s Clean and Efficient- targets by 2020 • One of the cleanest and most efficient energy systems in Europe • 30% reduction of greenhouse gas emissions (reference year 1990) • 2% > 20% share renewable energy in total energy consumption • Energy efficiency to be improved by 2% per year

  4. Municipal Strategies Policy background National energy saving plan housing stock ‚Meer met minder’ (2007) • of public-private Platform Energy Transition Built Environment (PeGO), Aedes, EnergieNed, Bouwend Nederland and UNETO-VNI • aims at: > additional reduction energy consumption built environment of 100 PJ/a by 2020 on top of 2007 policy-target, aiming at 1140 PJ/a energy consumption built environment > building up a structural market for energy savings • focuses on owner-occupiers, private landlords, housing associations, owners of commercial + industrial buildings, tenants and building users • wants to make use of ‘natural investment moments’, e.g. removal, renovation or boiler replacement

  5. Municipal Strategies Energy saving potential housing stock Buildingsector responsible for - 40% of EU energy consumption, and - 36% of EU CO2 emissions (Elsberger, 2009) 2007 Dutch housing stock of 7 millionen dwellings - 53% owner-occupied dwellings (CBS, 2009) - 42% rental dwellings (CBS, 2009) Dutch CO2 emissions - 35% from energy consumption buildings (Van den Dobbelsteen, 2008) - 77% from ‘fixed’ sources, of which 12% by Dutch households in 2007 (CBS, 2009)

  6. Municipal Strategies Barriers to reduce energy consumption dwellings Dutch Building Decree (2003) lacks minimum energy performance standard existing dwellings, Dutch ‘Besluit Energieprestatie Gebouwen’ and ‘Regeling Energieprestatie Gebouwen’ miss administrative law enforcement possibili- ties and/or criminal law sanctions in case of non-compliance (Koning, 2008; Tambach, 2009) & Dutch dwellings are mostly no municipal property. Municipal governments usually do not own dwellings > diverse property situations dwellings: organizational, communicative, financial & juridical hurdles > difficult embedding energy efficient renovation in local policies & organization. Maintenance backlogs Dutch housing stock private apartments pre- and early post WWII with poorly functioning homeowners’ associations (HOAs).

  7. Municipal Strategies Dutch homeowners’ associations (HOAs) • Dutch flat buyers buy ‘apartment rights’: exclusive right to use a flat, and the right to use common parts of a block of flats (staircase, common garden etc.) • Apartment right owners become members of a ‘homeowners’ association’ (HOA), a legal entity, deciding upon and arranging the maintenance of common building parts of the block of flats and of all other common property or interests. A notarial deed of division and a division regulation indicate e.g. owner’s maintenance share. • Many HOAs are too small to function well, often lack professional management, and have neither regular meetings nor regular maintenance.

  8. Municipal Strategies Research question How can Dutch municipal authorities reach different homeowner categories with policy instruments: to instigate investmentsin the energy efficiency of the existing local housing stock & to reduce its energy consumptionand CO2 emissions, contributing to municipal climate policy aims? presentation: private housing stock paper: private & social housing stock.

  9. Municipal Strategies Research method • ex-ante evaluation municipal strategies and instruments to reduce housing stock's CO2 emissions • qualitative research methods • desk research: literature & documentary studies • questionnaires • case studies • interviews civil servants,service organization for HOAs housing associations, energy companies

  10. Municipal Strategies Municipal approaches private housing stock Traditional approach • municipal order to work away maintenance backlogs dwelling • in case private owners do not work away these backlogs themselves, municipal government ‘does the job’, meaning: high municipal costs. How can Dutch municipal governments ‘seduce’ homeowners to pay for the costs, when minimum energy performance standard existing dwellings is absent? New ways of local cooperation & financing. • empowerment instead of enforcement (Van Gool, 2009) • financingsupportinstead of mere subsidization (Tambach, 2009)

  11. Municipal Strategies Case studies • Rotterdam • The Hague CO2 neutral city by 2050 Sources: www.rotterdam.nl, www.rotterdamclimateinitiative.nl, www.denhaag.nl, www.wereldstadaanzee.nl

  12. Rotterdam owner-occupiers 50% Source: Municipality of Rotterdam, dS+V, Department of I&D, Centre for Research & Statistics, 2009 Division of housing stock by tenure in 2008 (roughly)

  13. Rotterdam Strategies Rotterdam Climate Initiative (RCI, 2006) • 50% CO2 reduction by 2025 • embedment of CO2 reduction in policy, organization and plans • 2 important RCI pillars (of 5): Sustainable City: renewable energy use built environment, aiming to have an energy neutral built environment by 2025. Energizing City: municipality as an example: CO2 reduction will be embedded in organization, buildings and operational management. • citizens and companies will be intensively involved in planning processes. (Source: http://www.rotterdamclimateinitiative.nl)

  14. Rotterdam Improvement strategies private housing stock • Division of Rotterdam areas into ‘adoption areas’, ‘hot spots’ and ‘pin-pricks’: close cooperation housing associations & municipality • Integration of energy conservation strategies in improvement strategies of the private housing stock. • Focus on poorly functioning homeowners associations (HOAs), among a total of about 9.400 HOAs (2007). • Pilot project ‚Cooperative maintenance in the De Quackstraat’, working away maintenance backlogs & future maintenance and management housing complex will be assured in 14 HOAs.

  15. Rotterdam (Charlois) Instruments applied in pilot ‘De Quackstraat’ • raising responsibility homeowners for their property • Municipality of Rotterdam, Rabobank Rotterdam and SVn, the incentive fund of Dutch municipalities have developed a financing arrangement for private dwelling improvement. SVn manages revolving funds for municipalities to enable e.g. private dwelling improvement financing. • emphasizing benefit of (expected) increased property value and more attractive living environment. • service organization VVE010 for HOAs (Municipality of Rotterdam & housing associations Woonbron, Woonstad Rotterdam, Com.wonen)

  16. Rotterdam (Charlois) Financing instrument ‘De Quackstraat’ & more Municipal prerequisites for participation • HOAs must draw up improvement plan and long-range maintenance plan with regular contribution to the reserve fund geared to the latter plan. • contract professional manager HOAs: certified or VVE010. • HOAs < 24 dwellings must be brought under a maintenance umbrella Tailor-made financing instrument (not (yet) geared to energy saving) • basic arrangement: municipal subsidy (3000 Euros) & low-interest loan. • owners, capable of paying interest and repayment get a basic loan. • owners, capable of paying only part of the interest and repayment, depending on their capacity, pay no repayment and part of the interest. • owners, who can pay less than € 25 per month receive offer from or on behalf of a housing association for the purchase of their dwelling. • if a debt remains after the dwelling is sold, owners can be compensated.

  17. Rotterdam Municipal approach instrumental appliance Support and stimulation by VVE010 intends to • ‚de-care‘: from beginning until the end of building renovation processes • all technical, financial, administrative and managerial aspects • call private homeowners to account of maintenance responsibility of own dwelling • points at benefits of good (energy efficient) housing maintenance & renovation • municipal order (enforcement) as ‘last option’: in case private homeowners do not want to work away maintenance backlogs.

  18. The Hague 34% Division of housing stock by tenure in 2008 (roughly) Source: Municipality of The Hague, DHIC, OZB, 2009

  19. The Hague Strategy CO2-neutral City by 2050 • no CO2 production, low-energy use & renewable energy • CO2 compensation by plants and trees • embedment of CO2 reduction in policy, organization and plans • cooperation and ‘determining pathways’ with other municipalities with similar goal • citizens and companies will be intensively involved in planning processes.

  20. The Hague Strategy Improvement strategy private housing stock • Sustainability by lengthening the life span of the private housing stock which is a spearhead in the municipal policy whitepaper ‘The everlasting youth of the private housing stock’. • Integration of energy conservation strategies into improvement strategies for the private housing stock. • Focus on poorly functioning homeowners associations (HOAs) among a total of about 19.710.

  21. The Hague Instrument ‘Enlarge your home’ Service Organization Rustenburg Oostbroek District • stimulates enlargement of dwellings and of HOAs (cost optimalization) • website and desk for owner-occupiers and HOAs • website points at benefits of energy efficient renovation • cost-effective concepts, approved by municipality • performance agreements with architects, building enterprises etc. • assessment of individual financing capacity & -advice • municipal subsidies (not yet specifically for energy saving) • support in decision-making

  22. Municipal Strategies Municipal strategies & instruments: summary • active climate mitigation and adaption policy • embedment in public-private district regeneration tasks. • show good example in own organization & buildings • intensive citizen and owner participation in (energy efficient) building maintenance and renovation • integration of energy saving strategies in improvement strategies for private housing complexes: moments of working away backlogs, of maintenance and of making improvements make private homeowners become aware of their own quality demands for their dwellings > they may desire more energy efficient & comfortable dwellings • service organization for homeowners associations, as communication organ of the municipality, taking care of all aspects of energy efficient housing renovation

  23. Municipal Strategies Municipal strategies & instruments: summary • tailor-made financing instruments • communication of benefits • support of decision-makers and contractors in HOAs needed • posing municipal prerequisites with regard to housing quality to financing arrangements • education and certification of housing managers will become important <> need for accurate system of building control, also with municipal role in process-auditing, making government involvement in certification regulation, serving public-law purposes, necessary (Visscher, Meijer; 2008). • Moreover: Dutch energy certification regulation in need of Public Law enforcement possibilities, e.g. by regulation of sanctions: fines.

  24. Municipal Strategies SWOT Municipal Strategies and Instruments • Strength Making use of maintenance and renovation moments to invest in energy efficiency of housing stock. • Weakness Top-down energy reduction ambitions municipality not directly integrated in instrumental development: will owner-stimulation be sufficiently effective? • Opportunity service organization as municipal communication organ energy saving. • Threat Missing initial integration of reduction aims energy consumption, can lead to higher municipal costs, related to time to adjust ongoing processes and gear local instruments to energy saving.

  25. Municipal Strategies Discussion 1 How can municipal governments reach improvement of the energy efficiency of the private housing stock in other countries? 2 Is the municipal steering hiatus in energy efficient housing renovation a purely Dutch dilemma?

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