THE REGIONAL DIAGNOSIS Low Carbon Buildings

Home , Energy in Sweden, Ingelstad, Kalmar County, Kronoberg County, Lammhult, Rottne

Report

Elaheh Jalilzadehazhari Jimmy Johansson

Contents 1 Introduction ...... 1 1.1 National context ...... 1 1.1.1 National policy background ...... 3 1.2 Regional context ...... 10 1.2.1 Regional policy background ...... 11 1.2.2 Energy efficiency in buildings ...... 17

2 Programs and initiatives supporting LC transition in the regional sector ...... 22

3 Stakeholders map of the regional LC transition sector ...... 30

4 Strengths, weaknesses, opportunities and threats (SWOT analysis) of the regional LC sector ...... 31

5 Conclusions ...... 34

1 Introduction

1.1 National context The Swedish energy policies are based on law-making within the EU [1]. These policies advance the competitiveness of the country in terms of sustainability and security of clean energy supply [1]. The energy production in Sweden is mainly dependent on domestic renewable energy resources: hydro, wind, solar and biofuels. The final energy use in Sweden is divided into the industrial, residential and service as well as transport sector (figure 1), from which the residential and service sector made up the greatest share in final energy use in 2017 [1].

Figure 1. An over view of energy system in Sweden in 2017 [1].

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During the last decades, great efforts have been made in Sweden to speed up transitions to low carbon energy resources in the building and service sector. As, the utilization of fossil fuels (oil and natural gas) for supporting the heating and domestic hot water demands was decreased from 33% in 1990 to 3% in 2017 [2]. The reduction in the utilization of the fossil fuels allowed diminishing the emissions of carbon dioxide from Swedish building and service sector approximately by 90% since 1990 (figure 2) [3].

Figure 2. Total carbon dioxide release from the heating technologies in building and service sectors [3].

In 2017, the total energy use of the building and service sector in Sweden was about 146 TWh, corresponding to 39% of the total energy use in this country at the same year [4]. Considering detached houses, electricity was the most common energy resource, used to support heating and domestic hot water demands, followed by biomass-based energy resources, district heating, oil and natural gas [2]. With respect to multi-family houses and commercial buildings, the district heating system made up the highest share among other energy resources, followed by electricity, bio-based energy resources, oil, and natural gas [2]. The electricity used by building and service sector is largely based on hydropower and nuclear power, but the expansion of wind power is steadily increasing and so is the use of biofuel for electricity production.

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1.1.1 National policy background The government of Sweden had set ambitious energy and climate targets for 2020 to fulfil European Union’s (EU) energy and climate goals (table 1). The Swedish building sector, among other sectors, was responsible to take relevant actions, thereby ensuring the attainment of national targets. The government of Sweden assigned responsibilities to different ministries, from which the ministry of the infrastructure and ministry of the environment had a more direct duties to propel actions toward a low carbon built environment. The ministries included several agencies with diverse responsibilities. The Swedish Energy Agency, as subordinate to the ministry of the infrastructure, and the Swedish National Board of Housing, Building and Planning, as subordinate to the ministry of the environment, worked more directly to ensure achievement of national energy and climate targets. The Swedish Energy Agency contributed with analysis of supply and use of energy in Sweden and worked to secure the energy supply in this country. While the Swedish National Board of Housing, Building and Planning was responsible to analyse housing market in Sweden and issue building regulations. Full implementations and enforcement of national energy and climate targets was considered both in new construction and in retrofitting existing buildings. Efforts, taken to fulfil the national targets, allowed:

 Reducing the utilization of fossil fuels by about 92% since 1990 (from 32.1 TWh in 1990 to 2.6 TWh in 2017) [5];

 Increasing the share of biofuels for supporting heating and domestic hot water demands by about 12% since 1990 (from 10 TWh in 1990 to 11.4 TWh in 2017) [5];

 Increasing the share of biomass-based district heating for supporting heating and domestic hot water demands by about 34% since 1990 (from 30.5 TWh in 1990 to 46.2 TWh in 2017) [5];

 Increasing the share of renewable energy sources (hydropower, wind power, biofuel and solar power) in electricity production to 58% [5];

 Recuing the energy used to support heating and domestic hot water demands by about 18% since 1990 (from 98.5 TWh in 1990 to 81.1 TWh in 2017) [5]. However, the energy use in Sweden is largely affected by weather and economic conditions [6].

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Table 1. Swedish energy and climate targets for 2020 vs EU’s goal for 2020. Swedish energy and climate targets EU’s energy and climate goals for for 2020 [7] 2020 [7] 1. The emissions of greenhouse 1. The emissions of greenhouse gases gases would be 40% lower than would be reduced by 20%. the emissions of greenhouse gases 2. The energy use would be reduced in 1990 (applied to activities not by 20% by improving the energy covered by the EU Emissions efficiency. Trading System). 3. The share of renewable energy 2. Energy use would be 20% more would be at least 20% of the total efficient than the energy use in energy use. 2008 (through reduced energy 4. The share of renewable energy use intensity). in the transport sector would be at 3. The share of renewable energy use least 10%. would be at least 50% of the total 5. The interconnection of installed energy use in the country. electricity generation capacity in 4. The share of renewable energy all member states would be at least resources in the transport sector 10%. would be at least 10%.

However, the Swedish energy and climate targets were revised to comply with international agreements, more specifically to (i) satisfy the aim of the Paris agreement in controlling the temperature rise and (ii) achieve the European Commission’s aim to achieve a climate nature Europe by 2050 [8] (table 2).

Table 2. Swedish energy and climate targets for 2030 vs EU’s goals for 2030. Swedish energy and climate targets EU’s energy and climate goals for for 2030 [7] 2030 [7] 1. By 2045, Sweden will have net 1. Reduce greenhouse gas emissions zero emissions, of which at least by 40% compared to 1990. 85% of the reduction of emissions 2. Reduce energy use by 32.5% will take place in Sweden. through better energy efficiency. 2. Greenhouse gas emissions should 3. The share of renewable energy be 63% lower in 2030 compared to should be at least 32% of total 1990 (applies to activities that are energy use not covered by the EU Emissions 4. The share of renewable energy in Trading System). the transport sector should be 14%. 3. Emissions from domestic 5. The interconnection of installed transport excluding domestic electricity generation capacity in flights should be 70% lower in all Member States shall be at least 2030 compared to 2010. 15%.

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4. Energy use should be 50% more efficient by 2030 compared to 2005 (through reduced energy intensity). 5. Electricity production will be 100% renewable in 2040.

The Swedish Energy Agency and National Board of Housing, Building and Planning provide several policy instruments to proceed toward national goals, when constructing new buildings or retrofitting existing ones, including:

 Investment subsidies for installing solar system  Energy labelling  Energy declaration  Free consultation

In addition, the region Småland and Islands has a priority to support the shift towards a low-carbon economy in all sectors. Considering the building sector, the abovementioned priority concentrates on the installation of renewable energy resources, when constructing new buildings or renovating existing ones [9].

Energy efficiency trends in buildings Figures 3, 4, and 5 shows the reduction in energy consumption in one or two floor detached houses, multi-family houses and non-residential buildings respectively. In addition, these figures show energy resources used to support heating and domestic hot water needs. As seen in figure 1, 2, and 3 the use of oil has been drastically reduced in both residential and non-residential buildings [6]. As seen in figure 3, the electric heating made up the greatest share among other supply systems for supporting the heating and domestic hot water demands in detached houses; followed by biomass based heating systems (such as pellet), district heating system (which is largely based on biomass products), oil and natural gas.

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50 45 40 35 30

25 TWh 20 15 10 5 0

Oil District heating Electric heating Natural gas Biomass

Figure 3. Energy use for heating and hot water in one or two floor detached houses, from 1983, TWh [6]

Considering the multi-family houses and non-residential buildings, the heating and domestic hot water demands were mainly supported by biomass-based district heating system; followed by electric heating and biomass products (such as pellets) (figure 4 and 5). Although, the petroleum products were utilized by multi-family houses and non-residential buildings, their share in supporting heating and domestic hot water demands were dramatically decreased during past decades (figure 4 and 5).

40 35 30 25

20 TWh 15 10 5 0

Oil District heating Electric heating Natural gas Biomass

Figure 4. Energy use for heating and hot water in multi-family houses, from 1983, TWh [6]

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15 TWh 10

Oil District heating Electric heating Natural gas Biomass

Figure 5. Energy use for heating and hot water in non-residential buildings, from 1983, TWh [6]

Energy efficiency policies and public funds In Sweden, there are several energy efficiency policies and public funds available. However, the content of the energy efficiency policies was sometimes changed to advance towards more sustainable and clean energy society. In addition, the accessibility of the public funds varied over time that occurred due to the availability of national resources. An explanation regarding Swedish energy efficiency policies and public funds were presented below.

Performance standards for new buildings The National board of housing, building and planning set energy performance standards to be applied to new buildings and in certain cases to renovation. The performance standards present maximum allowed values for thermal transmittance of buildings envelope (U-value), primary energy consumption, installed electricity capacity, and air leakage. In addition, the standard categorises Sweden into four climate zones, allowing buildings in north and colder areas to have a higher energy consumption. In 2017, a new energy performance standard was introduced to satisfy the near-zero energy requirements of the EPBD. Following the new standard, the energy consumption should be calculated in primary energy rather than purchased energy. Later in 2019, a new revision on energy performance standards was introduced, which puts maximum allowed values for average thermal transmittance of buildings envelope. Following the new revision, the energy consumption in new buildings should be converted by using specific primary energy factors. The primary energy factor is 1.8 for electricity, oil and gas, 0.7 for district heating, 0.6 for district cooling and biofuels. The specific primary energy factor for electricity discourages the use of direct electrical heating in new buildings. However, electricity can be used

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to operate different kinds of heat pumps. In addition, the energy performance standard specified different requirements for single-family houses, multi-family houses and non-residential buildings. The annual primary energy consumption is limited to 90 (kWh/m2) for single-family houses, 75 (kWh/m2) for multi-family houses, and 70 (kWh/m2) for non-residential buildings. The limit varies according to the primary energy factor of the energy source and the geographical factor. Similarly, limitations were considered for the installed electrical power for heating based on the geographical factor.

Support for the increased energy efficiency of rental houses The government of Sweden has supported investments to stimulate energy renovations of rental buildings, especially in areas with socio-economic challenges. The government allocated SEK 800 million as financial aid in 2016 to renovation and energy efficiency measures, later provided SEK 1 billion annually as financial aid between 2017 and 2020. The financial aid is only provided to projects that achieve at least a 20% improved energy performance and provide renovations that improve the quality of the building. The aid for energy efficiency measures is up to 5% of the total renovation cost and goes to the property owner. The renovation aid provides 20% of the cost of renovation, which goes directly to the tenants through a rent reduction over a seven-year period.

Tax reduction for renovations Since 2008, owners of houses or apartments have been able to make tax reductions for the labour cost of repairing, maintaining, rebuilding and enlarging the dwelling. These measures can help improve energy efficiency, but that is not a requirement. In 2016, the tax reduction was lowered from 50% to 30% of labour costs. The maximum amount of aid is SEK 50 000 per person and year, deducted from the income tax. Increased competence in energy-efficient building techniques The Swedish energy agency organises several training programmes to increase energy efficiency in buildings. Energilyftet (“the Energy Lift”) offers training for engineers, architects and other construction-sector experts to learn about low-energy buildings and Sweden’s energy targets. Other training is offered for property developers, teachers and construction workers. The training programmes are set up together with National board of housing, building and planning and stakeholders from business and public services.

Installation of solar system Table 3 bellow provides information about financial aid available when installing solar system.

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Table 3. Financial aid to support the installation of solar system [10] Who can receive the financial aim Revenue and scope  Owners of private dwellings Financial support to cover investment  Companies costs  Contribution of 20% of the investment cost.  Cannot be combined with root deduction.  Non-recurring amount.  Applications from companies must have been received before the project started.

 Owners of private dwellings Tax deduction  Tax reduction of about 9% of the investment cost.  Cannot be combined with investment support.  Non-recurring amount.

 Owners of private dwellings Investment aid for the storage of self- generated electrical energy  Contribution of 60% of the investment cost, but a maximum of SEK 50,000.  Must be connected to the grid and connected to a plant for self- production of renewable electricity.

Energy and climate counsellor Energy and climate counsellors provide impartial advice and help regarding best technical solutions that suits different kinds of needs. In addition, the energy and climate counsellors help to:

 Reduce energy use in buildings or premises  Lower energy costs  Optimize heating or ventilation system  Reduce climate impact  Get a more energy efficient buildings or premises through better windows, insulation, lighting etc.

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1.2 Regional context The programme area of Småland and the islands covers the four counties: Jönköping, Kronoberg, Kalmar and Gotland. However, the Kalmar County includes Öland as well. These counties comprise 34 municipalities, with a total population of over 800,000 [11]. This region has traditionally been dependent on industries [11]. However, the Småland and the island region faces problems regarding sparse and unbalanced population structure, as migrated inhabitants are mainly away from rural areas [11]. Any such problem poses challenges considering the working and living outlooks in this region [11]. In addition, the Småland and the island region faces further challenges in terms of unbalanced business structure, weak rate of growth among small and medium-sized enterprises, few knowledge-intensive enterprises, low level of investments in research and development, limited access to broadband, and high emissions from transport [11]. The operational programme under the regional policy for the Småland and the islands region focuses on sustainable development throughout this region. But, a great importance is put on gender equality, prohibiting discrimination, and boosting environmentally sustainable growth. However, the Småland and the islands region excluded a special focus on sustainable urban development, due to unbalanced population structure in this region [11].

Figure 6. Småland and islands

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1.2.1 Regional policy background The background of the EU regional policy, as an investment policy, can be traced back to the mid of the 20th century [12]. It has been developed over time and aimed to advance towards a more sustainable development, while promoting economic integration throughout the EU [12]. The development of the regional policy can be analysed within different periods [13]:

 First period (1957-1988): The origins of EU Cohesion and Regional Policy  Second period (1989-1993): From projects to programmes  Third period (1994-1999): Consolidation and doubling the effort

In the beginning of the third period, Sweden participated in the development of the regional policy. The objectives of the regional policy during the third period included: “- Promoting the development and structural adjustment of regions whose development is lagging behind, - Converting regions or parts of regions seriously affected by industrial decline, - combating long-term unemployment and facilitating the integration into working life of young people and of persons exposed to exclusion from the labour market, promotion of equal employment opportunities for men and women, - Facilitating adaptation of workers to industrial changes and to changes in production systems, - promoting rural development by (a) speeding up the adjustment of agricultural structures in the framework of reform of common agricultural policy and promoting the modernisation and structural adjustment of the fisheries sector, (b) facilitating the development and structural adjustment of rural areas, and - development and structural adjustment of regions with an extremely low population density”[12].

Several funds and instruments were developed during these periods and became available for member states [12]. The accession of Sweden allowed this country to use the funds and thereby fulfil the objectives of the regional policy in this country [12]. As seen in figure 7, the Småland and the island region concentrated mainly on fulfilling objective 5b.

 Fourth period (2000-2006): Making enlargement a success

The objectives of the regional policy was reduced into three points: “1) promoting the development and structural adjustment of regions whose development is lagging behind; 2) supporting the economic and social conversion of areas facing structural difficulties, hereinafter; and 3) supporting the adaptation and modernisation of policies and systems of education, training and employment” [12]. The Småland and the island region concentrated mainly on fulfilling objective 3 (figure 8) [12].

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 Fifth period (2007-2013): Focus on growth and jobs

Although, the aim of the regional policy remained unchanged over past decades, its objectives during the fifth period was changed to: 1) economic and social convergence; 2) regional competitiveness; and 3) European territorial cooperation [12]. Three structural funds and instruments were used by the member states to take actions to satisfy the objectives of the regional policy. The first fund was the European regional development fund (ERDF), which allowed to create a balance between different European regions by boosting the economic and social cohesion [14]. The second fund was European social fund (ESF), which aimed to improve employment and job opportunities in the European Union [15]. The third and last fund was Cohesion fund, which aimed to reduce economic and social problems at member states in which the gross national income per inhabitant was less than 90% of the community average [16]. The Småland and the island region aimed to satisfy objective 2 (figure 9) [12], and used the ERDF and ESF funds to execute different actions to fulfil this objective. The ERDF covered the following areas:

- ”Innovation and knowledge-based economy: strengthening regional capacities for research and technological development, fostering innovation and entrepreneurship and strengthening financial engineering notably for companies involved in knowledge-based economy; - Environment and risk prevention: cleaning up polluted areas, boosting energy efficiency, promoting clean public transport within towns and drawing up plans to prevent and limit natural and technological risks; - Access to transport and telecommunications services of general economic interest” [14].

While the ESF supported the following areas: - “adapting workers and enterprises: lifelong learning schemes, designing and spreading innovative working organizations; - access to employment for job seekers, the unemployed, women and migrants; - social integration of disadvantaged people and combating discrimination in the job market; - Strengthening human capital by reforming education systems and setting up a network of teaching establishments”[15].

 Sixth period (2014-2020): Investments for growth and jobs

The latest regional policy supports sustainable and inclusive growth in EU. The objectives of the regional policy is in line with Europe 2020 strategies, as it provides the necessary investment tools to meet the five main targets for EU 2020: - “Employment: 75%of the 20-64 year-olds to be employed;

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- Research & Development: 3% of the EU's GDP to be invested in R&D; - Climate change and energy sustainability: - Education: - Fighting poverty and social exclusion: At least 20 million fewer people in or at risk of poverty and social exclusion”[17].

The regional policy comprise four themes: low carbon economy, competitiveness of small and medium size enterprises, and technical assistance [17]. The ERDF and cohesion funds are available in order to deliver the latest regional policy. The Småland and the island region concentrates on all four themes, but it has adopted four axes to meet these themes:

- Axes 1: To strength research, technological development and innovation; - Axes 2: To enhance access to, and use and quality of, information and communication technologies (ICTs); - Axes 3: To enhance the competitiveness of small and medium-sized enterprises (SMEs); - Axes 4: To support the shift towards a low-carbon economy in all sectors. [11]”. The LC-Districts Project was developed to satisfy the objective of the axes 4 through supporting energy efficiency, smart energy management and renewable energy use in building and service sector in Sweden.

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Figure 7. Eligible areas to receive funds from 1994 until 1999 [12].

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Figure 8. Eligible areas to receive funds from 2000 until 2006 [12].

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Figure 9. Eligible areas to receive funds from 2007 until 2013 [12].

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1.2.2 Energy efficiency in buildings

Energy efficiency trends The amount of the total energy use in the Småland and the islands region was nearly unchanged during the past decade [18]. However, the share of non-renewable energy resources for producing electricity and supporting heating and domestic hot water demands was significantly decreased. Figure 10 shows the total amount of non- renewable liquid energy sources used by detached houses, in four counties within the Småland and the islands region. The non-renewable liquid energy sources were mainly derived from fossil fuels. The highest reduction of 97% was observed in Jönköping County, followed by Kronoberg (96%), Gotland (96%) and Kalmar counties (95%).

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reneable liquid energy used energy liquidsource reneable - 150000

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Total amount of non of amount Total 0

2008 2015 2005 2006 2007 2009 2010 2011 2012 2013 2014 2016 2017 2018 Year Jönköpings County Kronobergs County Kalmar County Gotlands County

Figure 10. Total amount of non-renewable liquid energy sources, used by detached houses *Data regarding the amount of the non-renewable energy source used in Jönköping and Kronoberg counties in 2012 to 2015 was missing, while it was missing in Kalmar County between 2012 and 2014.

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Figure 11 shows the amount of non-renewable liquid energy source used by multi- family house buildings in four counties within the Småland and the islands region. A significant reduction in using non-renewable liquid energy sources of 99% was seen in Jönköping, Kronoberg and Kalmar counties, but it was about 72% in Gotland County. Any such reduction was mainly achieved by connecting the multi-family house building to biomass based district heating system.

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renewable liquid energy used energy liquidsource renewable 100000 -

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Total amount of non of amount Total 0

2011 2014 2005 2006 2007 2008 2009 2010 2012 2013 2015 2016 2017 2018 Year

Jönköpings County Kronobergs County Kalmar County Gotlands County

Figure 11. Total amount of non-renewable liquid energy sources, used by multi- family house buildings

Figure 12 shows the total amount of the non-renewable liquid energy source, used by non-residential buildings in four counties. Although, the use of the non-renewable liquid energy source was generally reducing, its utilization was significantly augmented in 2009, practically in Jönköping County. According to Swedish Energy Agency [19], the cold climate in 2009 might be one of the reasons why energy use was increased dramatically compared to previous years. But, the amount of non- renewable liquid energy source used in 2018 was decreased by 58% in Jönköping County, when comparing with its utilization in 2005. Similarly, it was decreased by 11% in Kronoberg County and 5% in Kalmar County. The utilization of the non- renewable liquid energy source in Gotland County in 2018 was almost same as its use in 2005.

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(MWh) renwable liquid energy used energy liquidsource renwable

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50000 Total amount of non amount Total of

2006 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year

Jönköpings County Kronobergs County Kalmar County Gotlands County

Figure 12. Total amount of non-renewable liquid energy sources, used by non- residential buildings

Energy efficiency policies and public funds A list of policies considered in the Småland and the islands region was presented below. However, each county within this region includes its own energy and climate policies.

Energy efficiency policies in Jönköping County [20]

 By 2030, the climate impact of new and renovated buildings should be reduced by 50% compared to 2015. In addition, several attempts should be made to use wood in constructing new buildings.  By 2030, different energy measures should be adapted by owners of existing properties in order to satisfy the national energy and climate goals.  By 2030, the energy efficiency in building and service sector should be improved by 50% compared to 2005.

Energy efficiency policies in Kronoberg County [21]

 By 2020, the emission of CO2 from fossil fuels should be reduced to 2 ton per year per residence.

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 By 2020, 70% of the total energy consumption in Kronoberg County comes from renewable sources.  By 2020, the electrical energy use in building and service sector should be decreased by 20% compared to 1995.  By 2030, the use of fossil fuels in Kronoberg County will be ceased 100%.  By 2050, Kronoberg County will be a plus energy county. This means that renewable energy and biofuel production will cover total energy use in the county. In addition, the Kronoberg County will have the possibility to export energy produced by renewable energy sources.

Energy efficiency policies in Kalmar County [22]

 Energy efficiency should increase continuously.  By 2020, the energy efficiency in Kalmar County is improved by 20% than in 2005.  By 2030, the energy efficiency in Kalmar County is improved by 50% than in 2005.  By 2030, the emissions of greenhouse gases in Kalmar County will be at least 80% lower compared to 1990.  By 2030, Kalmar County is a fossil fuel-free county.

Energy efficiency policies in Gotland County [23]

 By 2030, the energy efficiency in Gotland County is improved by 50% than in 2005.  By 2030, the emissions of greenhouse gases should be reduced by 63%.  By 2045, Gotland County will no longer have any net greenhouse gas emissions into the atmosphere The Gotland county will follow the national.  By 2040, the electricity production will be 100% renewable.

Currently, Jönköping, Kronoberg, Kalmar and Gotland counties provide two public funds to private residences, which include 1) financing aids to install solar systems and 2) free energy and climate consultations. Details regarding use of the abovementioned funds were provided in the section “Energy efficiency policies and public funds”. As mentioned previously, there are 34 municipalities within the Småland and the islands region. Some municipalities provide additional funds. For instance, Växjö municipality, where Linnaeus University is located:

 Supports and drives investments in renewable energy production [24].

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 Has an active energy and climate consultancy, where local residents, companies, property owners, organizations and associations have access to advice and support in their energy efficiency work [24].  Provides economic incentive models to support energy efficiency work, which are being developed by the municipality [24].  Carries out a solar energy campaign to support for the application of grants, purchases and installation [24].

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2 Programs and initiatives supporting LC transition in the regional sector The Småland region (excluding the island) makes efforts to proceed towards sustainable growth, practically in the areas of: forest bio economy, food, transport, tourism, research and innovation, health care, labour market and regional development capital. The forest is one of the Småland main areas of strength. In addition to environmental and production values, forest resources play an important role in the transition to a bio-based economy and to reduce climate impact. The forest bio economy is seen as particularly important for growth and development in rural areas. In Småland forests, several exciting development processes are underway, linked to new materials, circular economy, construction and energy. Research and innovation (R&D) is a key element of regional growth work. Småland R&D commitment in the Brussels arena can, in its simplest form, direct research funding to other members. This can lead to achieving regional goals and increasing the region's overall development resources. Småland competences in digitalisation and green industries not only have the power to strengthen their own capacity and competitiveness, its forces can be an important link in the growth of European value chains and thus contribute to European competitiveness in the global market. In addition, Jönköping, Kronoberg, Kalmar, and Gotland counties specified different priorities within the smart specialization platform-Eye@RIS3 [13]. These priorities are linked to the use of the ERDF [13]. A list of various priorities, considered in different counties were presented below. Priorities, which allow the implementation of energy efficiency in the building and service sector in Sweden, were specified with bold font.

Jönköping

 Forestry and wood processing  Smart industry / knowledge-intensive manufacturing companies  E-commerce and logistics  Tourism  Food and food processing  Service Design

Kronoberg

 Sustainable and smart housing  Competitive manufacturing  Healthy life  ICT  Tourism

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Kalmar and Öland

 Smart housing  Food  Green industries  Water  Tourism

Gotland

 Food  Tourism

The counties received ERDF fund for executing several EU projects related to energy efficiency and renewable energy resources. For instance, NERO was a 3-year EU project that Växjö municipality along with other Scandinavian partners participate in the project. The project aimed to increase the proportion of near-zero energy houses with wood construction and low environmental impact. The aim of the project was accomplished through installing renewable energy resources in both residential and industrial buildings so that they become energy- and cost-effective. READY was a five-year EU-funded project, in which Växjö municipality was participating together with the Municipality of Aarhus in Denmark and Kaunas in Lithuania. The aim of the project was to test innovative solutions in renovating apartments, offices and premises so that their energy consumption was reduced by at least 50%. In addition to EU-funded projects, Växjö Municipality has adopted a goal to achieve fossil fuel-free by 2030. Therefore, a great deal is invested in biofuels. About 80 % of the total heating in the municipality comes from biomass, such as wood chips, pellets and wood. Large parts of Växjö are heated by district heating from the Sandviksverket, which fires with forest waste and wood chips. Rottne, Braås, Ingelstad and Lammhult are also being heated with biofuels [25]. In addition to EU- funded projects, Växjö municipality

 Has long had an internal climate account. The municipality pays fee when different activities increases fossil-based CO2 emissions.  Has adopted a Wooden Building Strategy Växjö - the modern wooden city.  In 2015 inaugurated the third cogeneration block, to achieve fossil free goal.

Furthermore, Växjö municipality specified five main strategic areas to achieve national targets: Renewable energy, efficient energy use, renewable fuels and energy- efficient vehicles, and security of supply. Table 4, 5,6 and 7 provide a summary of action lists defined by Växjö municipality [24].

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Table 4. Action lists regarding renewable energy (reproduced from [24])

Action Description Responsibility 1.1 Real estate companies will allocate 0.2% of VKAB (real estate total net annual sales to investments in companies) renewable energy production, with priority given to small-scale local production. 1.2 Upgrades and environmental adaptations to Technical Services hydropower plants owned by Växjö Committee Municipality will continue to be made in order to maintain overall production capacity in the long term. 1.3 The Technical Services Committee and the Technical Services municipal real estate companies will become Committee and more self-sufficient in terms of renewable VKAB (real estate electricity. companies) 1.4 Växjö Energi AB will play a leading role in VKAB (Växjö Energi) relation to renewable energy in the and Technical municipality and will prepare a forward Services Committee strategy and an action plan. This strategy is (for hydro- based on a holistic approach and a system power) perspective, which includes sustainable development, competitiveness and resource efficiency enhancement. Renewable energy means solar power, wind power, small-scale hydropower and biomass. 1.5 As part of the dialogue it conducts with Town and Country developers, Växjö Municipality will encourage Planning investment in small-scale energy production. Committee, Municipal Executive Committee and Technical Services Committee 1.6 Växjö Municipality and Växjö Energi will Municipal Executive conduct a solar energy campaign directed at Committee the private and corporate markets, with support and Växjö Energi for applications for subsidies, purchases and installation. 1.7 Within the framework of its business Municipal Executive development activities, Växjö Municipality Committee

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will support and drive forward initiatives for renewable energy production.

1.8 Växjö Municipality will work to supply as Municipal Executive many areas and customers as possible with Committee district heating. It will also conduct a dialogue and VKAB (Växjö to this effect with private district heating Energi) companies and local district heating companies. 1.9 The district cooling network will be extended VKAB (Växjö Energi) to serve more customers. 1.10 Environmental and Public Health Services will Environmental and exercise day-to-day supervision to replace Public Health Services fossil oil with bio-oil or other fossil fuel-free energy. 1.11 Växjö Municipality will conduct an active Municipal Executive dialogue with companies and local community Committee associations to invest in large-scale wind power generation in accordance with the Wind Power Plan.

Table 5. Action lists regarding efficient energy use (reproduced from [24])

Action Description Responsibility When Växjö’s municipal real estate companies VKAB (real estate 2.1 build new-buildings, the energy demand must companies) not exceed the following: Residential premises: 55 kWh/m2 per annum. For residential premises with electric heating: 30 kWh/m2. Business premises: 50 kWh/m2 per annum. For business premises with electric heating: 30 kWh/m2. These limits may be achieved with max. 5 kWh/m2 of so-called “free flowing energy sources” (sun, wind, hydropower, etc.), harvested either on site or locally.

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2.2 Växjö’s municipal real estate companies VKAB (real estate should endeavour to achieve the levels shown companies) below in conjunction with all major renovations. In cases where these levels cannot be achieved, the reasons for this must be stated for each renovation project in connection with the annual follow-up of the Energy Plan. Residential premises: 75 kWh/m2 per annum. For residential premises with electric heating: 40 kWh/m2. Business premises: 70 kWh/m2 per annum. For business premises with electric heating: 40 kWh/m2. These limits may be achieved with max. 5 kWh/m2 of so-called “free-flowing energy sources” (sun, wind, free flowing water, etc.), harvested either on site or locally. Växjö Municipality offers active energy and Municipal Executive 2.3 climate advice. Residents, companies, building Committee owners, organisations and associations have access to advice and support in connection with their work to improve energy efficiency.

2.4 When making investment decisions about new Municipal Executive construction and renovation projects, Växjö’s Committee municipal real estate companies must include and VKAB (real estate life-cycle costs in order to reduce energy use. companies)

2.5 Prior to new construction projects and major Town and Country renovations/refurbishments, an analysis is to Planning be made of possible flexible solutions such as Committee, Municipal shared use of the same premises for different Executive activities. Committee and VKAB (real estate companies)

2.6 Building in compliance with passive house VKAB (real estate standards must always be considered as a companies) possible option for new construction projects.

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2.7 Wherever possible, functions should be installed VKAB (real estate in each individual home to measure and clearly companies) show the household’s use of electricity and water. Electricity and water charges are to be linked to actual consumption.

2.8 Wherever possible, energy use in premises is VKAB (real estate linked to the respective user within the municipal companies) organization. Financial incentive models will be developed to support energy efficiency and enhancement activities.

2.9 Växjö Municipality will regularly conduct new Municipal Executive energy-saving campaigns based on positive Committee experience from previous energy-saving and VKAB (Växjö projects. Energi)

2.10 Växjö Municipality will investigate the Municipal Executive possibilities of implementing development Committee projects to supply even highly energy-efficient and VKAB (Växjö buildings with district heating. This may Energi) involve household appliances powered by district heating. 2.11 We will strive to optimise the conditions for Municipal Executive energy supply (including small-scale Committee and VKAB production) in one of our development areas (Växjö Energi) with smart networks.

2.12 Within the framework of its customer focus, VKAB (Växjö Energi) Växjö Energi will maintain an active dialogue with customers about their energy consumption and will offer services that contribute to a reduction in energy use.

2.13 Environmental and Public Health Services will Environmental and develop its supervision activities (for example Public Health checklists, projects, etc.). The purpose of this Services is to enhance the efficiency of energy use in activities and operations that are within the supervision of the municipality.

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Table 6. Action lists regarding Renewable fuel and energy-efficient vehicles (reproduced from [24])

Action Description Responsibility 3.1 A thorough investigation will be made to VKAB (Växjö Energi) determine whether it is possible to supplement the Sandvik CHP plant with a biomass gasification plant to significantly improve electrical efficiency and increase the production of electricity from renewable sources. This electricity has the potential to make a substantial contribution towards achieving Växjö’s goal of a fossil-free municipality, a genuinely neutral energy balance and the use and production of genuine renewable energy. It also paves the way to creating the right conditions for a functioning infrastructure for the efficient production of renewable fuel in the form of electricity available through a local network of charging stations, plus locally produced hydrogen gas for fuel cells in an adjacent integrated production plant. Växjö Municipality will contribute to the 3.2 Technical Services development of the regional biogas market by Committee working with different stakeholders and through municipal involvement in a range of projects. Växjö Municipality will work to improve the Municipal 3.3 infrastructure for renewable fuels and charging Executive facilities for electric vehicles. All municipal Committee, workplaces will offer charging facilities. Technical Services Committee and VKAB (all companies) Charging facilities for electric vehicles will 3.4 VKAB (all companies) always be installed where new municipal premises and residential premises are built.

There will be coordination between municipal Respective committees 3.5 players outside Växjö to improve the and administrations infrastructure for renewable fuel and electricity.

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Demonstration projects will be implemented in Municipal Executive 3.6 order to investigate the potential for using Committee, renewable fuels or electricity in the Technical Services municipality’s service vehicles, machines and Committee and VKAB (all plant, as well as in public transport. companies) When negotiating procurement contracts for Municipal Executive 3.7 vehicles, we will aim to buy energy-efficient, Committee climate-friendly vehicles. A green vehicle strategy/policy will be prepared.

Table 7. Action lists regarding energy security (reproduced from [24])

Action Description Responsibility 4.1 A strategy will be prepared to safeguard the VKAB (Växjö Energi) delivery of district heating, electricity and district cooling at levels sufficient to meet customer needs, and to ensure that supplies of heating, cooling and electricity from renewable energy are sufficient to meet customer needs

4.2 Measures specified in the risk and vulnerability Respective analyses compiled by the municipality and committees and municipal companies will be implemented administrations with the aim of ensuring an adequate supply of electricity, heating, cooling and fibre optic provision in both urban and rural areas.

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3 Stakeholders map of the regional LC transition sector Table 8 show a list of stakeholders, who joined in stakeholder meeting in Linnaeus University.

Table 8. List of stakeholders Stakeholders Number Regional construction and renovation SMEs 7 Municipalities from Kronoberg, Jönköping and Kalmar counties 9 Energy agency for southeast Sweden 3 Energy agency for north Sweden 3 Research institute and smart housing småland 1 Småland Blekinge Halland South Sweden – A sustaianbale region (EU policy officer) 1 University 2 Total 26

High influence / low interest High influence / high interest Construction companies Municipalities Energy agency for north Sweden Energy agency for southeast Sweden

Low influence / high interest

Influence Low influence / low interest University Research institute Småland Blekinge Halland South Sweden – A sustaianbale region

Interest

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4 Strengths, weaknesses, opportunities and threats (SWOT analysis) of the regional LC sector

Strength, weaknesses, opportunities, and threats regarding information and assessment services and methodologies includes:

Strength  Use of local materials  Health indoor environment  Improves indoor comfort and occupants’ health  Low operation costs  Increased value

Weakness

 Lack of knowledge even when new methods are available  Expensive solutions  Lack of a holistic approach  Difficult to implement energy efficiency measures for owners with low income  No clear rules regarding financial aids  Low energy cost  Lack of information for beneficiaries  High investment cost

Opportunity

 More digitalized industries to cope with costs  More automatized industries to cope with costs  Collaborations between actors  Contributing in national economic growth

Threat

 Profitability

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Strength, weaknesses, opportunities, and threats regarding information and management structures at the municipality and district level comprises:

Strength  Use of local materials  Health indoor environment  Improves indoor comfort and occupants’ health  Low operation costs

Weakness

 Bureaucracy  No political decisions to stimulate energy efficiency measures or energy efficient constructions  Fire and moisture risks with timber buildings  Lack of knowledge even when new methods are available  Expensive solutions  Lack of a holistic approach  Difficult to implement energy efficiency measures for owners with low income  Need for a better education  Availability of research centre  Lack of a tool to evaluate cost, comfort, CO2 emissions  High complexity  Lack of information for beneficiaries  Reluctance of designers to leave their comfort zone and adopt new technologies or methods  Lack of national and municipal strategies  Lack of norms  Insufficient training of specialist

Opportunity

 More timber buildings  Modern technology development to use traditional materials  Develop alternative materials

Threat

 Profitability  Too much transport may be needed  Risk of low energy saving or poor indoor comfort after renovations

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Strength, weaknesses, opportunities, and threats regarding policies and programmes governance and management includes:

Strength  Has benefits in global level  Improves indoor comfort and occupants’ health  Low operation costs  Increased value  Reduced emissions of greenhouse gases

Weakness

 Difficult to change norms in construction industry  Difficult to implement energy efficiency measures for owners with low income  Need for a better education  Availability of research center  High complexity  Low energy cost  Lack of information for beneficiaries

Opportunity

 Possibilities to exchange experience and knowledge between actors  More timber buildings  Collaborations between actors  Contributing in national economic growth  Modern technology development to use traditional materials  Positive environmental balance

Threat

 Risk of low energy saving or poor indoor comfort after renovations

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5 Conclusions Three main weakness specified by stakeholder regarding assessment services and methodologies, structure at the municipality and district level, and Policies and programmes governance and management are discussed below. However, majority of stakeholders emphasized the needs for:

 First need: Developing new methods to analyse the life-cycle performance of buildings since several stakeholders with various preferences involve in constructing new buildings or renovating existing ones,  Second need: The energy and climate policies, regulations and instruments should be introduced clearly. In addition, their impact should be described.  Third need: Improving collaborations between academia and industries as research work in universities are taken up by the industry and turned into products and services.

Table 9, 10 and 11 provide potential solutions to overcome three most important weaknesses in terms of the regional LC SECTOR.

Table 9. Potential solutions to manage weaknesses regarding information and assessment services and methodologies Potential solutions Three most important weaknesses A method, which allows improving indoor Lack of an applicable method. comfort, while reducing energy consumption, costs and CO2 emissions. Specialists, who can work on Insufficient training of specialist. multidimensional tasks, such as energy efficiency, climate issues, economy, indoor comfort and health. High investment costs of renewable energy High investment cost. resources or energy renovation measures were considered as main challenge when trying to improve energy performance of buildings.

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Table 10. Potential solutions to manage weaknesses regarding information and management structures at the municipality and district level Potential solutions Three most important weaknesses Available strategies were mainly Lack of national and municipal considered as being complicated and strategies unclear. Stakeholders have different preferences; Lack of information for beneficiaries. meanwhile they are not fully informed about benefits of implementing energy efficiency measures. Almost all stakeholders agreed about lack Lack of efficient collaborations of collaborations between academia and between academia and industries. industries, which make it difficult to use newly developed method or models in practice.

Table 11. Potential solutions to manage weaknesses regarding policies and programmes governance and management Potential solutions Three most important weaknesses Some stakeholders expected ambitious No political decisions to stimulate political decisions to stimulate energy energy efficiency measures or energy efficiency measures. efficient constructions. Some stakeholders agreed that increasing Low energy cost the energy price stimulates the implementation of energy efficiency measures. Some stakeholders discussed about Difficult to change norms in difficulties when changing norms in construction industry construction companies to motivate the implementation of energy efficiency measures. This occurs due to financial considerations.

Several attempts were made at Linnaeus University to meet stakeholders’ needs:

 First need: Developing new methods: A decision-making method was previously developed at the University in 2018. The method allows comparing tens of thousands design alternatives and selecting a design with lowest energy consumption and cost, while improving indoor comfort. The decision-making method was developed further to reduce the carbon

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footprint of the design as well. The method will be presented at the 2020 MITAB Applied Energy Symposium (virtual conference, August 13-14, 2020). Title of the conference paper: Expanding the application of a decision-making method to proceed toward sustainable buildings.

 Second need: Analysing the economics of energy policies The implications of different energy prices, interest rates, lifetimes and climate zones on profitability of renewable energy supply systems were analysed. Results were published in: Jalilzadehazhari, E., Pardalis, G., Vadiee, A. (2020). Profitability of various energy supply systems in light of their different energy prices and climate conditions. Buildings. 10.

 Second need: Analysing the economics of energy policies The effects of future climate conditions on subsidies required for installing renewable energy resources in a detached house were evaluated. A paper was submitted in “Energies” journal. Currently, it is under review. Title of the paper: Subsidies required for installing renewable energy supply systems considering variations in future climate conditions

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[19] Swedish Energy Agency. (2020). New statistics from the Swedish Energy Agency - The cold climate in 2009 increased energy consumption in premises[In Swedish: Ny statistik från Energimyndigheten - Kallt 2009 drev upp energianvändningen i lokaler]. Retrieved from http://www.energimyndigheten.se/nyhetsarkiv/2011/ny-statistik-fran- energimyndigheten---kallt-2009-drev-upp-energianvandningen-i-lokaler/ [20] Jönköping County. Climate and energy strategy for Jönköping County [In Swedish: Klimat- och energistrategi för Jönköpings län]. Jönköping, Sweden2019. [21] Kronoberg County. Energy balance Kronoberg 2018. [In Swedish: Energibalans Kronoberg 2018]. Växjö, Sweden2018. [22] Kalmar County. Climate and energy strategy for Kalmar County 2019-2023 [In Swedish: Klimat- och energistrategi för Kalmar län 2019-2023]. Kalmar, Sweden2019. [23] Gotland County. Together towards 2030. An energy and climate strategy for Gotland County [In Swedish: Tillsammans mot 2030. En energi- och klimatstrategi för Gotland]. Gotland, Sweden2019. [24] Växjö Municipality. Energy plan for Växjö municipality is produced by Sustainable Development Section. 2016. [25] Växjö municipality. (2020). Retrieved from www.vaxjo.se Accessed March 2020

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