Social Equity in the Decarbonisation of the European Built Environment June 2021 Social Equity in the Decarbonisation of the European Built Environment Date 15-06-2021 Rambøll By Christine Lunde Rasmussen, Kristian Mark Andersen and Peter Andreas Norn Hannemanns Allé 53 DK-2300 København S Picture: Unsplash.com Approved by Line Dybdal T +45 5161 1000 F +45 5161 1001 https:// dk.ramboll.com This repost has been commissioned by Laudes Foundation and conducted by Ramboll Management Consulting. The report reflects the authors views and does not commit Laudes Foundation. Rambøll Management Consulting A/S CVR NR. 60997918 Rambøll - Social equity in decarbonisation of the european built environment CONTENT 1. Abstract 2 2. Executive summary 3 3. Introduction 5 4. Mapping the field 6 5. Governance 23 6. Drivers for change 26 7. Methodology 31 8. Appendix 33 1/37 1. ABSTRACT The purpose of this field scoping is to identify core social equity issues and actors related to the decarbonisation process of the built environment in Europe. This concerns issues of decarbonisation that may reinforce existing social inequalities or enhance social equity in the built environment, as well as social equity issues that may reinforce the decarbonisation process. The report presents a broad look at social equity in the built environment as well as a closer look at three key themes: Job creation and workforce, housing, and health. Supplementing this is an introduction to key governance dynamics, which influences social (in)equity in the decarbonization of the built environment. Finally, the report identifies generic tools and ways of working that actors can use across the different issues of social equity in the built environment. The report is written as a scoping review that maps issues of social equity according to relevant media, actors, experts and academic literature. The mapping has been done through two phases. First, an explorative phase, covering as broad a spectrum of issues as possible. And second, a phase that, probes deeper in selected areas. The report is based on 19 interviews with key stakeholders from across Europe, two focus group interviews, with the groups comprising a total of 13 key stakeholders, as well as desk research of more than 50 reports and articles. 2/37 2. EXECUTIVE SUMMARY In the aftermath of the Corona-pandemic, Europe is starting to rebuild post-Covid economies. This happens amidst a situation of a looming climate crisis and a growing awareness that the social contract of society itself needs to be revisited. Too often, social sustainability and environmental sustainability have been perceived and handled as two distinct issues. In this report, we argue that we should be focusing on creating a green and just transition as one and the same process1. Or, to put it more bluntly, there can be no green transition without a just transition. The transition to a sustainable future need to serve and benefit the many – leaving no one behind. Through the past year’s global lockdown, we have all experienced how the buildings and urban settings we live in truly shape our lives, affecting our health and wellbeing. The built environment needs to be part of the change. The decarbonisation process in Europe will be driven by several initiatives and developments. One key driver is the EU, which in 2019 decided upon a European Green Deal2. At national level and in a number of European cities, a just and inclusive transition is also high on the agenda among political stakeholders and civil society actors. The decarbonisation of the building sector is vital to deliver on the EU’s 2030 and 2050 climate and energy objectives, given that buildings are responsible for 40% of total energy consumption and 36% of energy-related greenhouse gas emissions in the EU3. On top of that, European states are spending billions on COVID recovery. The EU alone will spend 1.8 trillion Euro to help rebuild a post-COVID-19 Europe4. However, efforts on advancing the climate transition so far indicate that doing so may have a negative impact on social equity, if social equity is not addressed as an integrated dimension of the decarbonisation of the built environment. On the positive side, experts also highlight, that the decarbonisation process may actually entail an opportunity to advance social equity in the built environment in Europe, if issues of social equity are identified and addressed alongside decarbonisation. The aim should be to create socially equitable European societies where all citizens, on equal footing influence, shape and have access to a decarbonized built environment. In this report, we argue that a strong focus on social equity should be informing build back better strategies and the decarbonisation process in the built environment in Europe as a whole. Now is the time to make sure that the decarbonisation of our built environment is just and benefits the many. 1 United Nations, Transforming our World: The 2030 Agenda for Sustainable Development, A/RES/70/1. European Commission (2019), Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee for the Regions – The European Green Deal. 2 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en. 3 European Commission (2021), Inception Impact Assessment, Revision of the Energy Performance of Buildings Directive 2010/31/EU. 4 Recovery plan for Europe (www.ec.europa.eu/info/strategy/recovery-plan-europe_en). 3/37 The study identifies a number of themes of social equity in the built environment. Out of these, the study deep dives into three selected themes: 1. Job creation and workforce, 2. Housing and 3. Health. The study identifies and describes both positive and negative likely outcomes of the decarbonisation process in terms of social equity within the three themes. Looking at the field as a whole, one of the key findings in this study is that there is no single “field of social equity in the built environment”. Currently, actors are working alongside each other concerned with specific issues that touch upon one another, but they lack a common understanding and conceptual language to describe the field of social equity in the built environment. There is no strong knowledge or evidence base. Rather, knowledge of key issues exists without being linked conceptually. In order to remedy this situation – and to advance social equity in the built environment - the study also identifies three drivers of change that cut across all themes and subthemes covered in this report. These drivers of change are: • Development of a common language, awareness and knowledge base: A key driver for change would be the building of a common language and facilitating a common understanding of the key challenges and issues at stake. This concerns something more than the coordination between stakeholders and initiatives, but rather a common approach to the field. • A holistic and inclusive approach to decarbonising the built environment: A social equity lens has to be systematically integrated across the full lifecycle of the building in the decarbonisation process: From the decision making to the design, planning, building, renovating and tearing down of the building. Also, the decision making process has to be inclusive, i.e. it has to engage and place citizens at the heart of the design, and explore and take into account the different needs and preferences of different citizen groups, across gender, age groups, ethnicity etc. • Multi-stakeholder collaboration and commitment: There is a need for strong multi- stakeholder collaboration and commitment to ensure that social equity is considered, driven and implemented as part of the decarbonisation process. As the built environment is characterised by multilayer and multidimensional decision-making processes, this requires a number of different tools depending on stakeholders, sectors and the character of the intervention. Because of the lack of coherence in the field of social equity in the built environment, the present field scoping cannot be seen as a final mapping of the field, but rather provides a first scoping of key issues and actors related to the decarbonisation process, which invites further knowledge building and research. 4/37 3. INTRODUCTION 3.1 Purpose of the field scoping Laudes Foundation has asked Ramboll to undertake a field study of key issues and actors relating to social and gender issues in the built environment. The purpose of this field scoping is to identify core social equity issues related to the decarbonisation process of the built environment in Europe. This concerns issues of decarbonisation that may reinforce existing social inequalities (or, conversely, enhance social equity in the built environment), as well as social equity issues that may reinforce the decarbonisation process. In this report, we present a broad look at social equity in the built environment as well as a closer look at three key themes: Job creation and workforce, housing, and health supplemented by an introduction to key governance dynamics. Finally, we identify generic tools and ways of working that actors can use across the different issues of social equity in the built environment. 3.2 Definitions used in the field scoping In the field scoping, we understand the decarbonisation process as the process of removing or reducing greenhouse gas emissions across the lifecycle of buildings. We focus specifically on buildings and everything that affects the process of decarbonisation in relation to them, from the production of materials, planning, financing and construction of buildings, to using and dismantling buildings. Along with the urban planning and urban renovation processes, insofar as we find these to be decisive as the framework for decarbonizing and planning the buildings. In our understanding of social equity, we mirror The American Planning Association which defines social equity as “just and fair inclusion into a society in which all can participate, prosper, and reach their full potential…”5.