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Innovation Renovation Transformation INNOVATION RENOVATION TRANSFORMATION Good practice examples of projects promoting green growth across Central, Eastern and Southern Europe 2 IMPRINT Publisher Federal Ministry for the Environment, Nature Conservation, Nuclear Safety (BMU) Stresemannstraße 128–130, 10117 Berlin Editors Sonja Kotin-Förster, Moritz Schäfer, Patrick Steiger Ecofys, Albrechtstraße 10 c, 10117 Berlin Andreas Prahl, Matthias Duwe, Ewa Iwaszuk, Philipp Voß, Laurens Duin, Ana Frelih-Larsen Ecologic Institute, Pfalzburger Strasse 43/44, 10717 Berlin Layout Beáta Welk Vargová Ecologic Institute Print Globus-Druck GmbH & Co. Print KG Baseler Str. 80 12205 Berlin Date April 2018 Photos cover © Mr Twister/Shuterstock.com; © Ion Sebastian/Shuterstock.com; © J.D.S/Shuterstock.com; © Andrei Merkulov/Fotolia.com; © Bohbeh/Shuterstock.com; © Blue Planet Studio/Shuterstock. com; ©Diego Moreno Delgado/Shuterstock.com; © BsWei/Shuterstock.com; © Lina Mo/Shuter- stock.com; © Eisenhans/Shuterstock.com; © Jaromir Chalabala/Shuterstock.com; © tairen/ Shuterstock.com; © tchara/Shutterstock.com; © moreimages/Shutterstock.com; © Stas Walen- ga/Shutterstock.com; © brizmaker/Shutterstock.com; © tai111/Fotolia.com; © Love Silhouette/ Shutterstock.com; © woraatep suppavas/Shutterstock.com 3 CONTENTS Introduction 4 Energy 8 Buildings 16 Transport 24 Agriculture 30 Industry 38 Financing options 48 Sources 50 Abbreviations 55 Case Studies 28 46 18 10 46 40 20 14 32 26 22 34 12 42 36 44 44 4 INTRODUCTION Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and envi- ronmental services upon which our well-being relies (OECD, 2012). Green growth thereby brings about multiple benefits. The European Commis- sion estimates that the 2020 climate and energy targets have contrib- uted to securing more than 4.2 million green jobs. It also estimates that the 2030 climate and energy targets will create more than 1.25 million additional jobs in comparison to the reference scenario. In addition, the pursuit of green growth has positive impacts on health for example through improved indoor temperatures and climate or the reduction of harmful emissions from vehicles. EU climate finance, alongside Member forward-thinking entrepreneurs, smart State and private finance, plays a critical combinations of financing options, and role in the realisation of green growth. innovative project designs can be found The Green Growth Group, which is across Europe. Some of these projects comprised of 16 EU Member States and have been developed in times of economic Norway, released a joint statement in crisis or in the context of less supportive March 2018 calling for the next EU budget policy frameworks. The selected projects to be climate-friendly. shall serve as examples to be replicated in other municipalities, countries or “It is clear that an ambitious climate and businesses and support market actors in energy policy requires a coherent funding facilitating and running green projects. structure.” (Green Growth Group, 2018) Policies and targets This brochure highlights examples of The EU aims at moving towards a green growth that stem from a range competitive, more climate-friendly and of sectors (energy, buildings, transport, less energy-consuming economy in agriculture and industry) and are located 2050. Therefore, the EU wants to cut its throughout Central, Eastern and South- greenhouse gas emissions by 80 to 95 %. In ern Europe. Cutting-edge technologies, order to do so, EU Member States and the Introduction 5 European Parliament have agreed on the in the building stock. Furthermore, the climate and energy framework, which sets Ecodesign Directive (ED) sets minimum three key targets for the year 2030: energy efficiency standards for products and appliances. y At least 40 % reduction in greenhouse gas emissions (from 1990 levels) In December 2015 at the Paris Climate Conference (COP21), 195 countries y At least 27 % share for renewable adopted the first-ever universal, legally energy binding global climate deal. The agree- y At least 27 % improvement in energy ment sets out a global action plan to put efficiency, with the option of increas- the world on track to avoid dangerous ing the target to 30 %1 climate change by limiting the global temperature increase to well below 2°C. Stable and long-term climate policy Additionally, countries aim to limit the frameworks support the development of increase to 1.5°C, since this would signifi- markets for green technologies. Based on cantly reduce the risks and the impacts of a proposal of the European Commission, climate change. stakeholders are discussing to increase the level of ambition of these targets To build a low carbon economy and meet and to enable a faster adoption of green climate and energy targets in the short technologies and markets. Important and long term, EU Member States will legislation to achieve these targets include need to develop greener technologies the Emissions Trading System (ETS) and and business models. Project developers the Effort Sharing Decision (ESD), which across the EU have developed economical- governs emissions from sectors that are ly viable concepts that provide environ- not covered by the EU ETS, such as trans- mental and social benefits. However, in port, buildings, agriculture and waste sec- many cases, the number of green projects tors. Additionally, the Renewable Energy is still limited and funding support re- Directive (RED) and the Energy Efficiency mains essential. Directive (EED) require Member States to Besides national or regional funds for implement renewable energy and energy innovative green technologies, several efficiency policies respectively, while the financing opportunities are provided by Energy Performance of Buildings Direc- EU institutions and funds. These funds tive (EPBD) regulates energy efficiency 1 Currently, the ambition and bindingness of the target is still being negotiated 6 and financing instruments are accessible y private and public entities an apply for by market actors of all EU Member States. funding from the European Fund for Some EU funds, especially the European Strategic Investments which targets Structural and Investment Funds, are economically viable, larger renewable channelled to projects via the Member and energy efficiency projects States, who also set funding priorities, y companies, research organisations and including a minimum share in climate non-governmental organisations can apply change related activities. Other funds for funding from Horizon2020, the EU are centrally managed by the European Framework Programme for Research Commission and the European Invest- and Innovation, which emphasises ment Bank (EIB). EU funds and financing excellent science, industrial leadership instruments target different market and tackling societal challenges actors and sectors, for example: Introduction 7 y small and medium-sized enterprises In addition, there are also non-EU actors, (SME) will find easier access to finance such as EEA Grants and Norway Grants, via the EU program COSME providing funds for investments within different fields of action, ranging from y local, regional or national authorities but environmental protection and climate also companies such as ESCOs can change to civil society and research. benefit from grants from the technical assistance facility ELENA (European Further information about available EU Local Energy Assistance) to carry out funds and instruments as well as links can investment programmes in energy be found on page 48 of this brochure. efficiency, renewable energies and sustainable urban transport 8 ENERGY Energy 9 Energy-related emissions represent half of all greenhouse gas (GHG) emissions in the EU. Investments in renewable energy systems or energy efficiency contribute to CO2-emission reductions and help drive growth and employment in various sectors of the economy. As solar panels need to be installed by humans and wind farms need technicians for main- tenance, the renewable energy industry is more labour intensive than fossil fuel technologies. Energy efficiency also supports economic growth by improving industrial productivity. By implementing energy efficiency measures, industrial firms can reduce their resource use and lower their operation and maintenance costs. Additionally, renewable energy can be produced at lower costs than fossil fuels; sun and wind, for example, are free. Yet, energy markets alone cannot deliver the desired quantities of renewable energy and energy efficiency. This is due to the fact that re- newable resources need to compete with existing fossil fuels, which have long benefitted from existing infrastructure, expertise and subsidies. Therefore, public authorities must create supportive conditions that accelerate investments into these technologies. The examples in this brochure showcase training to local small and medium-sized various approaches and strategies to enterprises and capacity building to increase renewable energy and sustain- public authorities on topics related to able energy use. The presented projects renewable energy. BEenerGi has thereby range from the activities of a small rural opened new business opportunities for community to nation-wide support pro- companies around efficient lighting, grammes. modern heat networks and energy effi- ciency measures in buildings. In Croatia, The small town Kisielice in Poland, for the NEWLIGHT project is combining example, realised an ambitious plan of the modernisation of over
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