Roundtable on Finance for Energy Efficiency in Denmark
Total Page:16
File Type:pdf, Size:1020Kb
ROUNDTABLE ON FINANCE FOR ENERGY EFFICIENCY IN DENMARK 14 May 2019 Denmark Event organised in the frame of the Sustainable Energy Investment Forums funded by the Horizon 2020 programme of the European Union ROUNDTABLE ON FINANCE FOR ENERGY EFFICIENCY IN DENMARK COPENHAGEN, 14 MAY 2019 The event was organized by EASME in collaboration with Finance Denmark, the Energy Savings Council and the UN Environmental Financing Initiative (UNEP FI) within the framework of the Sustainable Energy Investment Forum, funded by the European Commission's “Horizon2020” programme. Responsibility for the content of the document lies entirely with the authors, and it does not reflect the official opinion of the European Union. ROUNDTABLE ON FINANCE FOR ENERGY EFFICIENCY IN DENMARK Table of Contents EXECUTIVE SUMMARY .................................................................................................................... 2 BACKGROUND TO THE EVENT ......................................................................................................... 8 INTRODUCTORY PLENARY .............................................................................................................. 9 SESSION 1 ON HOME RENOVATIONS ............................................................................................. 13 Intro and purpose ................................................................................................................................. 13 Presentations ........................................................................................................................................ 14 Conclusions and forward-looking recommendations ............................................................................. 19 SESSION 2 ON SOCIAL HOUSING ................................................................................................... 23 Intro and purpose ................................................................................................................................. 23 Presentations ........................................................................................................................................ 24 Conclusions and forward-looking recommendations ............................................................................. 27 SESSION 3 ON INDUSTRY/SME SECTOR ......................................................................................... 30 Intro and purpose ................................................................................................................................. 30 Presentations ........................................................................................................................................ 31 Conclusions and forward-looking recommendations ............................................................................. 32 SESSION 4 ON MUNICIPALITIES AS FACILITATORS .......................................................................... 36 Intro and purpose ................................................................................................................................. 36 Presentations ........................................................................................................................................ 37 Conclusions and forward-looking recommendations ............................................................................. 41 CLOSING PLENARY ........................................................................................................................ 45 Closing remarks ..................................................................................................................................... 45 Copyright for pictures: EC Network, 2019 Page 1 ROUNDTABLE ON FINANCE FOR ENERGY EFFICIENCY IN DENMARK EXECUTIVE SUMMARY The European Commission, in co-operation with Finance Denmark, the Energy Savings Council and the UN Environmental Financing Initiative (UNEP FI), organised a roundtable in Copenhagen on 14 May 2019 on financing energy efficiency. The participants included 70 representatives from the Danish energy efficiency and financial sector as well as representatives from the EU Energy Directorate and its agency EASME. The purpose of the roundtable was to engage in detailed dialogue on the financing of energy efficiency with key stakeholders in Denmark in order to identify common goals and possible improvements in the national framework as well as to make proposals for concrete initiatives. At the opening plenary, Jacob Krog Søbygaard, Head of the Secretariat in the Council on Climate Change, explained that the Council on Climate Change sees great potential in energy renovation as studies show that the socio-economic costs of energy renovation of buildings appear to be the least costly measures which at the same time facilitate the desired green conversion to a great extent. It is necessary to develop and implement appropriate tools to promote this development, which may include requiring the involvement of an energy adviser and the financial sector in a better way to ensure more drive in the area. Niels Ladefoged, policy officer of the EU Energy Directorate, reviewed the EU policies and the forward- looking budget to ensure energy conversion. The goals are to reduce CO2 emissions by 40% compared to the 1990 level, to reach a renewable energy share of 32% and to achieve 32.5% energy savings compared to a business-as-usual scenario before the year 2030, and the Commission proposes as a long-term strategy that the EU will achieve net zero greenhouse gas emissions before 2050. The EU energy strategy operates with energy efficiency first, and many regulatory measures have already been implemented to pave the way. EU countries are preparing national energy and climate plans (NECP), which must contain the concrete measures at a national level. On the financial front, efforts are being made to introduce a uniform classification system – a "taxonomy" – as a basis for identifying where sustainable investments can have the greatest impact. Furthermore, Niels Ladefoged presented the EU plans for support for green energy investments, including the budget period 2021-2017. Peter Jayaswal, Director of Property Financing in Finance Denmark, presented Finance Denmark's work on securing sustainable finance. In order to promote this development, Finance Denmark has established the Forum for Sustainable Finance, which operates with a mandate to deliver recommendations to Finance Denmark's Board of Directors by the end of 2019. An important element of the process is to define when a building is sustainable and use this as a basis for determining who can get "green loans". This is related to the work at EU level on creating a common framework and ensuring transparency, including "taxonomy" and the standard for green bonds. Finance Denmark is working to ensure that everyone has an incentive to raise the energy standard, for example by operating with categories of green. Page 2 ROUNDTABLE ON FINANCE FOR ENERGY EFFICIENCY IN DENMARK Claus Bugge Garn, Chairman of the Energy Savings Council, said that Denmark is currently transitioning from the Energy Saving Scheme (ESO) to a market-based tender pool of DKK 500 million per year in the period 2021-2024 for energy savings in buildings and DKK 300 million for energy savings in the industry and the service sector. He pointed out that there is a risk of expertise and momentum being lost in the transition between ESO and supply pools. Furthermore, Claus Bugge Garn encouraged better implementation of the Building Directive (EPBD) in the efforts going forward, including goals and requirements for an energy-efficient and decarbonised building stock in 2050, the elaboration of a long-term renovation strategy and easier access to financing (via grouping, risk minimisation and support). In this context, funding can be a fourth pillar on which to promote energy efficiency in existing buildings. Then the roundtable participants went to parallel sessions on the topics 1) home renovations, 2) social housing, 3) industry/SME and 4) the municipality as facilitator. Discussion points, main conclusions and forward-looking recommendations of the four sessions are found below: Home renovations • Overall status, challenges and opportunities We need to make buildings more energy efficient by a total of 1% per year, but we only increase efficiency by 0.25% – so the pace must be quadrupled since private homes make up 50% of the building energy consumption. 2/3 of the building owners say they are interested, but only 11% do something. The motivation must come through a focus on the entire home, so that maintenance, energy and a healthy and modern home are considered interconnected. A light "one-stop shop" package that is easily comprehensible makes it easy to decide and implement. • Concept The effort must be based on the concept of a customer journey all the way though the energy renovation. The facilitator may be the municipality, while a number of other players participate in the process. However, there are no plans for a large roll-out. This is probably too much for the municipalities to undertake alone. Homeowners must be approached at a time when they are receptive, e.g. when they are buying a house or when the children move out. The approach must be based on the natural "touch points", where there is contact with the homeowner anyway. • Energy counselling Energy counselling is important in order to be able to help the customer throughout the journey towards