Barriers and Drivers for Sustainable Housing

Department of Thematic Studies

Environmental Change

Barriers and drivers for sustainable housing

A case study of pre-existing conditions and perceived barriers and drivers for energy and resource efficiency in the housing sector in Östergötland

Daniel Kvist

MSc Thesis (30 ECTS credits)

Science for Sustainable development

Linköpings universitet, SE-581 83 Linköping, Sweden

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ACKNOWLEDMENTS This thesis has been produced in the service of Region Östergötland with valuable contributions by Cleantech Östergötland, Linköping University, Länsstyrelsen Östergötland, Tekniska Verken, E.on, Fastighetsägarna, Stångåstaden, Sweco, Norrevo, Region Fastigheter, and the county's municipal Energy and Climate Advisor. I would also like to acknowledge Region Östergötland for the opportunity to conduct this thesis within service, and a special thanks to my supervisor at Linköping’s University, Wiktoria Glad for valuable guidance and input throughout the research process. PREFACE In 2019, the County Administrative Board of Östergötland, together with Region Östergötland, adopted a joint energy and climate strategy for the county for the first time. The strategy contains five goals that aim to reduce the negative impact on the climate from human activity and move towards a more sustainable society. The strategy also has six so-called focus areas to clarify where extra focus is needed in the work to achieve set goals. These focus areas are: • Renewable and Robust Energy Production • Energy and Climate Efficient Business • Energy- and Climate Efficient Housing and Premises • Sustainable and Efficient Transport • Circular Economy and Consumption • Sustainable Agriculture and Forestry Under each focus area, more specific action areas have also been identified, in order to be able to work in a more in-depth way with the various focus areas and to identify the needs for new initiatives and / or developments of existing projects and working methods. In addition to the strategy, there are also action plans for each focus area. In connection with the preparation of the action plan, the author of this thesis was assigned the task of producing the action plan for the focus area Energy and Climate Efficient Housing and Premises. As a regional development leader in energy and climate at Region Östergötland, the specified person has begun to work on the development of an action plan. An action plan that is supported by this more comprehensive study of how Östergötland should work to achieve the goals of the regional energy and climate strategy and create a more sustainable housing sector for the whole of Östergötland. This study thus deals with the focus area "Energy and Climate Efficient Housing and Premises", consisting of a further detailing of how and what Östergötland needs to work on and prioritize in order to contribute to the fulfilment of the Energy and Climate Strategy goals, in particular to the fulfilment of the following goals: • Objective 1. Reduction of greenhouse gas emissions by 85 percent by 2045 compared to 1990. • Objective 2. By 2030, the production of renewable and recycled energy will amount to at least 90 percent of the total energy production in the county. • Objective 3. By 2030, energy use will be 60 percent more efficient than it was in 2008.

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Further objectives in the regional Energy- and climate strategy: • Objective 4. By 2030, greenhouse gas emissions from transport in Östergötland will be at least 70 percent lower than in 2010. • Objective 5. By 2025, the amount of household waste will be reduced to a maximum of 350kg per person per year; and by 2030, to a maximum of 300kg. Interim target: In 2025, the amount of food and residual waste will be reduced to a maximum of 150kg per person per year. Action Areas Östergötland's Energy and Climate Strategy makes clear that all action areas within each focus area are prioritised. However, since there are eight different action areas within the focus area Housing and Premises, a prioritisation / needs analysis is required. In order to be able to sort and prioritise between the various action areas. The same overview is also required of the conditions that limit and create opportunities within the focus area. For the focus area Energy and Climate Efficient Housing and Premises, the following action areas are included:

• Increase the rate of energy efficiency in existing buildings. • Increase digitisation for energy efficiency and power optimization of buildings. • Increase energy and resource efficiency when renovating existing buildings. • Strengthen coordination and energy exchange between buildings in the energy system. • Increase energy and resource efficiency in new construction. • Increase knowledge of how low-grade, or alternatively low-temperature, energy can be shared. • Accelerate the pace of expansion of renewable energy production on buildings. • Work to strengthen and develop energy supervision of buildings.

In addition to these, there are also action areas regarding increased collaboration between the region, academia, municipality, energy and climate consultancy and actors in the construction and real estate industry.

All action areas are important, and efforts are required within them all in order to drive the work forward with a systems thinking and perspective. However, the action areas require efforts and measures at different times, where some action areas are more relevant and urgent. This requires that it be ensured that the right efforts and projects, based on the action areas and based on the needs, are prioritised within the framework of time and resources. Within Östergötland, there are already large numbers of initiatives where measures within action areas are partly covered to varying degrees. A survey of existing projects was therefore carried out by Region Östergötland to avoid both conflicts and that parallel efforts and projects are created, existing projects can be found in appendix 1 in this thesis.

Table of contents Abstract ...... 1 1. Introduction ...... 2 2. Aim and area of research ...... 3 3. Background and Important overall documents and strategies ...... 3 3.1 Energy-related conditions ...... 3 3.2 Agenda 2030...... 4 3.2.1 Objective 7 – Sustainable Energy for All ...... 5 3.2.2 Objective 11 – Sustainable Cities and Communities ...... 5 3.2.3 Objective 13 – Combat Climate Change ...... 5 3.3 Roadmap Fossil-Free Sweden – Construction and Civil Engineering Sector ...... 5 3.4 Östergötland Builds Climate-Neutral (ÖBKN) Roadmap Östergötland ...... 6 3.5 Background outro ...... 6 4. Previous research ...... 7 5. Theoretical background and framework ...... 8 6. Method and approach ...... 9 6.1 Theoretical Research Model ...... 10 6.2 Implementation and data collection ...... 12 6.3 Case study...... 12 6.4 Analysis of Conditions of the Subject Area (Step 1-4) ...... 13 6.5 Review of the Barriers and Drivers for Energy Efficiency (step 5) ...... 13 6.5.1 Dialogue Meetings / Interview Study and Selection ...... 13 6.5.2 Workshop ...... 15 6.6 Suggested Appropriate Policy and Evaluation (Step 6-7) ...... 15 6.7 Validity and Reliability ...... 15 6.8 Method discussion ...... 16 7. Results and discussion ...... 17 7.1 Pre-existing external conditions and policy ...... 17 7.1.1 Demographics and energy flows ...... 17 7.1.2 Demography & Energy Flows - Local Differences and Conditions ...... 17 7.1.3 Public versus privately owned housing companies ...... 20 7.1.4 Summary demographics and energy flows ...... 21 7.2 Urbanisation and Housing Development ...... 21 7.2.1 Housing Needs ...... 21 7.3 Construction regulations and climate impact ...... 22 7.3.1 Climate impact of construction of new residents ...... 22

7.3.2 Climate regulations for construction ...... 23 7.3.3 Energy regulations for construction ...... 23 7.3.4 New construction versus existing buildings ...... 24 7.4 Energy Efficient Renovation ...... 24 7.4.1 Barriers regarding renovations ...... 26 7.4.2 Drivers for renovation ...... 27 7.4.3 Current energy situation and development in the Swedish housing sector ...... 27 7.4.4 Support for Energy Efficiency Measures and Renovation of Apartment Buildings ...... 28 7.5 Other relevant aspects regarding energy- and climate efficient buildings ...... 28 7.5.1 Resource Efficiency - Waste Classification ...... 29 7.5.2 Building Materials – Steel and Concrete ...... 29 7.5.3 Construction Logistics ...... 29 7.6 Barriers and drivers ...... 30 7.6.1 Barriers for development ...... 31 7.6.1.1 Lack of knowledge and competence ...... 31 7.6.1.2 Economy and lack of capital ...... 33 7.6.1.3 Imperfect information and split incentives ...... 35 7.6.2 Drivers for development ...... 36 7.6.2.1 Sustainability Profiling and Climate goals and Exchange of experience ...... 37 7.6.2.2 Laws and regulations ...... 38 8. Conclusions ...... 38

Abstract

This case study intends to understand and identify perceived barriers and drivers within the housing sector in Östergötland. By deeper understanding of the pre-existing conditions and the perceived barriers and drivers that both limit and enable development, the thesis contributes to the existing literature with extended knowledge. Previous literature within the field along with interviews make up the empirical material analysed in a qualitative exploratory way. This study finds that the importance of different barriers and drivers can vary depending on location and owner-category as well as culture and socio-economic factors. This means that policy and design of drivers also have to be customized accordingly with the different target groups. One can, based on this thesis also conclude that energy and climate development in the housing sector is a slow process that takes time. Regardless the measure or action, nothing changes overnight. This case study has on a regional level begun to identify decisive conditions, barriers and drivers as well as differences within Östergötland, pointing out the direction for future studies and for future policy and action plans.

Keywords: Barriers and drivers, energy efficiency, housing sector, sustainable development.

1. Introduction The construction and real estate industry is facing a huge challenge. Globally, the sector accounts for 36 percent of the world's total energy use and 39 percent of the world's energy- related carbon dioxide emissions. In 2015, as much as 82 percent of the energy supply for the sector came from fossil fuels (UN Environment, 2017). In Sweden, it is not quite as bad, even though there is still a lot to do in the sector. According to the Swedish Environmental Protection Agency (Naturvårdsverket 2020A), our Swedish buildings account for about 40 percent of Sweden's total energy use and almost a fifth of Sweden's total greenhouse gas emissions, corresponding to 18 million tonnes of carbon dioxide equivalents. At the same time, there is an enormous need for new housing and other new infrastructure throughout Sweden, the construction of which is currently at a level that has not been topical since 1970 when the Million Program was built. In recent years, therefore, approximately 50 percent of the sector's emissions have occurred during the construction phase and the remaining emissions during the use / management phase (Boverket, 2021). Since 2008, domestic emissions from the construction and real estate sector have more or less stagnated at a level that requires new initiatives for change to happen. During the period 1993-2008, on the other hand, emissions from use / management decreased significantly, largely as a result of a phasing out of oil as a heating source. However, no significant change has taken place regarding emissions linked to renovation and construction phase during the same period and until today. The area of focus for this thesis is energy and climate efficient housing and premises in the county of Östergötland. The area is very extensive and there are many different aspects, strategies, rules, regulations and support systems that both hinder and enable the development within the area. There are also local conditions and demographic aspects that differ greatly between Östergötland’s municipalities. As this thesis is intends to study the whole of Östergötland, local variations and conditions must be considered and taken into account. The new regional Energy- and climate strategy has already identified a number of different areas of action within the field that follow below:

Aspects within these areas will be further analysed in this thesis, providing more empirical data on different pre-existing and perceived barriers and drivers, that constitutes the conditions for enhanced development within the area of research. The theoretical framework of barrier and drivers of energy efficiency implementation constitutes the theoretical foundation of the study. The research model is based on a model for barrier and driver studies provided by Tholander et al. (2020).

2. Aim and area of research This thesis aims to contribute on an interdisciplinary level with contextual empirical information on barriers and drivers for energy efficiency within the housing sector. The thesis aims to provide substantial empirical data regarding existing conditions for development of energy and climate efficient housing and premises in Östergötland. To do so the pre-existing external conditions such as demographics, regulation and law, subsidies, energy usage and standards will be evaluated, along with perceived efficiency barriers and drivers for development, from organisations working within the area. In an exploratory way, this thesis will therefore examine the following areas of research: • Pre-existing external conditions and policy that both limit and enable the development of energy- and climate efficient housing and premises in Östergötland.

• Perceived needs of areas of actions and measures for more energy and climate effective housing and premises in Östergötland from organisations working within the area.

• Perceived barriers and drivers regarding energy- and climate efficiency from organisations working within the area of housing and premises in Östergötland. Based on the empirical information uncovered through the abovementioned areas of research, this thesis will provide information regarding implementation and development of future regional policy actions and projects regarding the area of focus. 3. Background and Important overall documents and strategies This chapter briefly raises the problem formulation and presents a few important documents and strategies to relate to when it comes to putting the area of Energy and Climate Efficient Housing and Premises in Östergötland in a larger context. 3.1 Energy-related conditions Developments to reduce emissions are moving in the right direction within the sector. Between 1990 and 2016, greenhouse gas emissions were halved thanks to increased energy efficiency in existing buildings, the phasing out of oil, and higher energy performance in new construction. In 2016, the total end-used energy in Östergötland's single-family houses, apartment buildings and holiday homes together accounted for approximately one-fifth of the total energy use and almost 23 percent of the total emissions in Östergötland (Länsstyrelsen 2019A). However, many challenges remain. In both the public sector and the private sector, for instance, only 1,2 percent of buildings in the EU are renovated each year, meaning that it would take a century to upgrade the building stock to modern near-zero energy levels (Salvalai 2018). There is however great potential to reduce energy use and its climate impact from both existing buildings and construction. The County Administrative Boards' Energy and Climate Coordination (LEKS, 2017) has compiled Östergötland's energy balance divided by endues. According to the data, the housing sector use 19 percent of the total energy supply in Östergötland, which may seem like a small share, but it is as important as any other sector in reaching both national and regional energy- and climate goals.

The County Administrative Boards' Energy and Climate Coordination (LEKS 2017) has also compiled municipal energy balances. These statistics show that energy use of some of Östergötland's municipalities looks very different to the energy use of other municipalities in Östergötland, depending on many different aspects. Among other things, it becomes clear that Linköping and Norrköping together use over 70 percent of Östergötland's total energy use. When including other municipalities with more than 20,000 inhabitants (Motala, Mjölby and Finspång), the combined energy use is over 85 percent of Östergötland's total energy use. Perhaps the most prominent thing from the statistics is that Norrköping municipality accounts for more than 50% of Östergötland's total electricity use, due to very energy-intensive industry. Of this, only 10 percent of Norrköping's total electricity use goes to its households. For obvious reasons, this figure is significantly higher in the remaining Östergötland municipalities. The diagram below shows the share of municipalities' total energy use that goes to households. The diagram also shows total energy use per municipality in GWh.

Proportion of total energy use going to households per municipality 100% 90% 80% 70% 193 155 2632 602 120 165 115 60% 850 667 223 375 256 50% 8830 40% 30% 20% 126 101 1186 343 61 91 45 10% 212 190 58 91 52 0% 1008

Energianvändning hushåll GWH Övrig energianvändning GWH

Figure 1. Processed statistics from The County Administrative Boards' Energy and Climate Coordination (LEKS, 2017). Further conclusions that can be drawn through analysis of the statistics are that in Linköping and Norrköping, where about 66 percent of Östergötland's total population lives, use about 60 percent of Östergötland's total households energy usage. Whereupon the remaining municipalities, which make up about 34 percent of Östergötland's total population, use almost 40 percent of the total household energy usage in Östergötland. This of course depends on the type of housing that occurs most frequently in cities compared to rural areas, as multi-family houses will naturally be more energy efficient than separate single-family houses. 3.2 Agenda 2030 Regardless of what analysis one makes in the area of sustainability, the work should be based on Agenda 2030, partly to link the study in the subject area to the larger perspective, but also because Agenda 2030 clearly identifies the problem and to some extent the solutions. The climate challenge is, just as Agenda 2030 shows, an interdisciplinary challenge, where society as a whole needs to change and take responsibility. The 17 goals overlap; thus, there is no miracle solution to the transition. Instead, the solution requires cooperation and a holistic and interdisciplinary thinking and implementation. The focus area Energy and

Climate Efficient Housing and Premises is generally covered by most of Agenda 2030's 17 objectives, but in particular under the objectives: 3.2.1 Objective 7 – Sustainable Energy for All A large proportion of our greenhouse gas emissions come from the way we extract, convert and use fossil energy, but renewable energy solutions are becoming cheaper, more reliable and more efficient every day. Even though electricity production in Sweden largely comes from renewable fuels (and nuclear power), it is not sustainable to think that we can use as much electricity as we like. Electricity is an energy carrier that needs to be used while it is produced, and the Swedish electricity grid is thereby dependent on the rest of Europe's electricity production and vice versa. If we then consider how electricity is produced in the rest of Europe, we see that as much as 43 percent is produced through fossil fuels (Ekonomifakta, 2020). Ensuring access to electricity and energy services for all without harming our planet therefore requires us to change how we produce and, perhaps more importantly, consume energy (Globala målen 2020A). 3.2.2 Objective 11 – Sustainable Cities and Communities Sustainable urban development includes sustainable construction and sustainable planning of housing, infrastructure, public places, transport, recycling and safer chemical management, all of which are addressed or mentioned in the regional Energy and Climate Strategy under the focus area Energy and Climate Efficient Housing and Premises. This in turn requires new technology and the implementation of solutions that are already on the market today, as well as cooperation between several sectors. Inclusive and innovative urban planning is needed to make cities safe and sustainable for the future (Globala Målen, 2020B). 3.2.3 Objective 13 – Combat Climate Change In this context, objective 13 - Combating Climate Change is of course the basis of the issue. A transition to sustainable and climate-smarter development is both necessary and possible, but time is short. Sweden's good starting position both obliges and enables. Climate change is becoming more and more evident at both a global but also at a local level, while greenhouse gas emissions continue to rise. The effects of the emissions are already visible and will be catastrophic if we do not act. Through cooperation, innovation and behaviour modification, we can make the necessary changes to protect the planet. These changes also provide great opportunities to modernize our infrastructure, which will create new jobs and promote prosperity worldwide (Globala Målen, 2020C). 3.3 Roadmap Fossil-Free Sweden – Construction and Civil Engineering Sector As one of 21 roadmaps developed by the Fossil-Free Sweden initiative, the construction industry is also joining Sweden's climate goals to pull its weight. After the Swedish Parliament decided that Sweden will have net zero emissions of greenhouse gases in 2045, the construction industry is facing a huge challenge as the sector today accounts for almost one-fifth of Sweden's total climate impact. While energy and emission levels should be decreased, Sweden's population is estimated to increase to around 11 million already by 2025, which requires large amounts of new housing and new infrastructure. Consequently, the transition of the industry will determine whether Sweden will achieve the climate goals. The roadmap states that most of the climate impact created by the building and construction sector is generated by the production of building materials in the construction phase, as well as from the emissions generated for energy use in buildings. The contributors to the roadmap

also state that the sector has the potential to halve its climate impact with existing technology by 2030. However, to achieve net zero emissions, technology changes and new innovations will be required. The industry hopes for new incentives through instruments, regulations and new business models. The roadmap also contains concrete objectives for achieving a climate- neutral value chain within the entire construction sector. These objectives are:

• 2020–2022: Participants in the construction sector have mapped their emissions and set climate targets. • 2025: Greenhouse gas emissions should show a clearly declining trend. • 2030: 50 percent reduced greenhouse gas emissions (compared to 2015). • 2040: 75 percent reduced greenhouse gas emissions (compared to 2015) • 2045: Net zero emissions of greenhouse gases.

To achieve these objectives, several key factors have been identified:

• Collaboration, leadership and knowledge. • Longterm regulations that enable investments and conversion to climate-neutral materials and processes. • A development from linear to circular processes. • Availability and efficient use of bio-based raw materials. • Public procurement as a driving force for conversion. 3.4 Östergötland Builds Climate-Neutral (ÖBKN) Roadmap Östergötland Regionally here in Östergötland, several participants in the construction and real estate industry have also gathered around a roadmap for the transition to climate neutrality. ÖBKN is a newly started regional construction and real estate network where participants from both the public and private sectors have gathered to meet the energy and climate challenges that exist in the sector here in Östergötland. The network was launched on 10 September 2020 and today consists of several prominent participants in the construction, consulting and real estate industry. The overall goal that ÖBKN is working towards is a halved climate impact for the entire construction and real estate sector value chain by 2030 and a climate-neutral value chain in the construction and real estate sector by 2045. Following that objective, the network has developed a roadmap that addresses the following four focus areas:

• F1. Business models, requirements, procurement and collaboration • F2. Climate-neutral and resource-efficient material choices and material flows • F3. Climate-neutral construction logistics and construction production • F4. Climate-neutral management, operation and maintenance Under each focus area there are also a number of sub-activities that describe in more depth measures and initiatives for the various focus areas (Cleantech Östergötland 2020). 3.5 Background outro There are many initiatives on both a national and regional level, working against a more sustainable housing sector. The development is however a process, as mentioned, according to Salvalai (2018) it would take a century to upgrade the existing building stock to modern near-zero energy levels. There are thus needless to guess many barriers holding development back, as well as drivers in need of optimization and not least implementation to push on the development. Agenda 2030 will be nothing but a dream as long as the barriers remain. On a

6 regional level, we do however have the opportunity to enhance the pace of development in Östergötland, so why not make Agenda 2030 something more than just a dream.

4. Previous research

Nair et al. (2017) concludes that the decisions to invest in energy efficiency improvements in multi-family buildings to a large extent depends on the type of ownership, thus different barriers apply for different ownership-categories. For instance, according to Nair et al. the major barrier for energy efficiency implementation in municipal owned buildings is awareness. The top management that makes decisions are in many cases not aware of the potential of energy reduction measures. Whereas smaller privately owned multi-family buildings rather struggle with resource constraints that limit their ability to implement energy efficiency measures. According to Yeats et al. (2016) there are however many factors in play regarding whether or not decision-makers invest in energy efficiency improvements. The authors determines that it is not only depending on owner categories but barriers also vary depending on local geographical conditions and/or corporate culture due to among other things differences in culture and beliefs. Therefore, strategies and drivers that work in some locations may not work in another. According to Yeatts et al. (2016) culture and individual characteristics and behaviour can reduce the appeal of efficient technology. Socioeconomic characteristics that hinder implementation according to Yeatts et al. (2016) include for instance low education, low socio-economic status and inability to control economic resources. Personality and lifestyle characteristics that hinder development includes negative attitudes to change, resistance to innovation, a closed belief system, a lack of faith in science, inability to cope with uncertainties and tendency for introversion. Some cultures and norms are according to Yeatts et al. (2016) less likely to perceive energy efficiency technology as desirable thus less likely to make an effort to use them. The socio-economic and behaviouristic factors seem to be prominent throughout the literature. According to Hrovatin and Zoric (2018) age is also an important factor, older people due to shorter life-time horizon, health problems, diminishing capabilities and financial constraints are less likely to implement energy-saving renovations and measures in their homes. Hrovatin and Zoric (2018) in line with Nair et al. (2017) and Yeatts et al. (2016) also suggests other socio-economic characteristics such as income, education, environmental awareness and personal attitudes are other behaviouristic factors that determines whether energy-saving measures are considered or not. They see that people in general from lower social-economic backgrounds are less likely to implement energy efficiency improvements. However, the renovation rate of existing buildings in the EU according to Salvalai (2018) is around 1,2 percent each year meaning that with today’s pace it would take a century to upgrade the building stock to modern near-zero energy levels. One could argue that some or most barriers do however stretch between all owner-categorise as well as socio-economic conditions, even though these aspects may point out certain groups who are less willing to implement measures.

In order to implement energy saving measures decision-makers must first of all investigate the different options available. According to Clancy et al. (2016) in their study of the Irish housing sector, about half of decision-makers do not take that step. If decision-makers decides not to investigate options, no other barriers or drivers really matter; the measures will not be implemented anyways. Clancy et al. (2016) also concludes that even if the first step of the hassle of investigating the available options is overcome there are still many other barriers for implementation such as, lack of time, lack of capital, low energy costs, lack of internal expertise and lack of information on energy use and on the measures available. Accordingly with Clancy et al. (2016), Yeatts et al. (2016) suggest that the barrier of knowledge is mainly about the lack of knowledge that energy efficient technologies provide an advantage. If this knowledge of advantage does not exists, the decision-makers will have no incentives for implementation. However if the knowledge of advantage exists it does not necessarily mean that measures will be implemented. Within the barrier of knowledge, the barrier of lack of awareness is included, meaning the lack of information about the existence of cost-effective energy-efficiency technology. The third knowledge area is according to Yeatts et al. (2016) the lack of awareness of how to obtain or use the right energy-efficiency technologies. One cannot however only blame the property-owners/ decision makers for the consumption of energy within the housing sector. Much depends on the tenants’ behaviour and consumption of energy, and not least the factors deciding different incentives for efficiency. Split-incentives is a barrier that according to Nair et al. is very important regarding multi- family buildings, referring to situations where the financial incentives and the mandate to act are split between two actors, for example between tenants and the property owner, often resulting in a status quo. In consistence with other studies Clancy et al. (2016) mean that companies that own the building they operate in are more likely to investigate both technological and behaviouristic options for development. Companies with more than ten employees are also more likely to do this. Companies with fixed limit budgeting and short payback requirements are less likely to investigate options for upgrades and behaviour changes. Another interesting factor determining whether companies investigate options, are if the company in the previous ten years have undergone an energy-saving renovation, if they have, they are more likely to investigate options for both technological and behaviouristic change measures. Within the existing literature regarding energy efficiency barriers in buildings, one can conclude that the majority of barriers do stretch throughout all owner categories and socio- economic groups. There are although of course certain areas where socio-economic factors do play an important role, where specific actions are needed for specific locations. 5. Theoretical background and framework The theoretical framework of drivers and barriers was initially developed to study the efficiency gap of energy usage. Experts saw that efficiency measures where not implemented even though they were considered economically profitable (REF). Back then as of now, there is a huge potential to save both money and energy thus the environment but these rational measures are still not meeting its potential when it comes to implementation. This, according to the theoretical framework, due to structural- and market barriers that hinder the development and implementation of such measures. According to Hirst and Brown (1990) in

their scientific article “Closing the efficiency gap: Barriers to the efficient use of energy” the “structural” barriers include distortions in fuel prices, uncertainty about future fuel prices, limited access to capital, government fiscal and regulatory policies, codes and standards, and supply infrastructure limitations. Market barriers, which in Hirst & Browns article is referred to as “behavioural” barriers include attitudes toward energy efficiency, perceived risk of energy-efficiency investments, information gaps and misplaced incentives. The theoretical framework has since Hirst & Browns paper (1990) continued to develop. In Tholander et al.’s book from 2020 the authors describe the theoretical framework of barriers and drivers of energy efficiency. They also provide information on how a “barrier study” according to theory should be designed and conducted, and not least methods of developing energy policy programs in regard to the theoretical framework. Due to this extensive theoretical background provided by Tholander et al. (2020) this thesis, which intends to evaluate perceived barriers and develop further empirical information, is in many ways based on the models and theoretical framework provided by Tholander et al. (2020). This thesis has therefore adopted the method and design from chapter 17, table 17.2 in Tholander et al.’s book. The design however leaves many free options regarding in what way each step is conducted, The design of the method is more extensively described in this thesis under Method and Approach. According to Tholander et al. (2020) there are two ways of conducting a barrier study, either inductive or deductive. The inductive approach is according to Tholander et al. (2020) based on a grounded theory, meaning not based on any actual theory or preconception of how energy efficiency can be understood. This approach includes asking a number of relevant respondents what major barriers they perceive hindering energy efficiency. The person conducting the inductive study may also reflect and add assumed barriers of importance. The deductive way of designing a barrier study is to start with a certain theory formation or an hypnotises explaining the energy efficiency gap based on one or more given barriers. Be it inductive or deductive it is not the energy efficiency technology that is being studied, but implementation and decision-making or rather the absence of adaptation of energy efficient measures (Ibid.). According to Tholander et al. (2020), for both types of approaches, it is appropriate to either conduct an interview study or send out a questionnaire. This thesis is based on the inductive approach with an interview study reviewing perceived barriers, which will be further explained under Method and approach. 6. Method and approach When examining something of which not much is known, as is the case in this study, it is appropriate to use a qualitative method with an inductive and an exploratory approach of research (David & Sutton 2016). This study is structured as a qualitative exploratory case study where the empirical data is based on qualitatively analysed and interpreted reports, peer-reviewed articles, semi-structured interviews and a semi-structured workshop. According to David & Sutton (2016), a qualitative study is to some extent linked to induction and exploratory studies, rather than deductively testing already formulated hypotheses. This study does not aim to test any hypothesis but mainly to explore the interviewed actors' perceptions of the subject. This study examines how the interviewed actors perceive needs in the area of research in Östergötland, and how they perceive which main barriers and driving forces limit or drive development in the area. Examining contexts from the actor's point of view implies a more inductive and exploratory form of research (Ibid.).

However, there are of course degrees of induction or deduction, as almost all studies due to previous theoretical and methodological baggage are affected by preconceived assumptions (David & Sutton 2016). In this case too, whereas and the study might be more accurately called an abductive approach, which includes features from both the deductive and the inductive. In an abductive approach, there is a constant exchange between theory, empirical data and previous understanding of the area (Ibid). From the perspective of regional development leader in at Region Östergötland, it has been impossible not to interpret the empirical data based on a pre-understanding and experience in the field. In the abductive approach, the empirical basis is developed gradually at the same time as the theory is to some extent adapted to better fit the empirical material (Ibid). Thus, this study leans in the abductive direction, particularly as this study is based on a research model for the development of policy programs as presented in Tholander et al. (2020) book. However, this research model is intended for other areas of activity than what is being investigated in this case, as it therefore serves more as a template and methodological frame. In the design process of an exploratory study, a certain degree of openness deliberately is created in the structuring of the research areas, and the formulation of the research sample and design of the interview questions. Whereas the study, the empirics and theory develop gradually during the study (David & Sutton). The research has thus approached the collected empirical evidence that is deemed necessary to answer the research questions and purpose, in an exploratory way with in the boundaries of the case. 6.1 Theoretical Research Model Tholander et al. (2020) provide a theoretical basis for the model applied to this study and is structured according to the following steps: 1. To Determine Primary Target Sector Group The target group should preferably be as homogeneous as possible. In this case, however, the target group comes from the pre-existing Regional Energy and Climate Strategy, where all of Östergötland's homes and premises are covered within the focus area, from detached houses to larger apartment buildings, resulting instead in a very heterogeneous target group. An analysis of the target group is therefore carried out in this study where local demographic differences and similarities between the municipalities are analysed. This analysis is based on demographic statistics from the Swedish Central Bureau of Statistics, and supplementary information mainly from studies by the County Administrative Board of Östergötland. 2. To Map the Annual Energy It is also important to study the annual energy needs of the target group. This study therefore analyses the energy differences and similarities between the municipalities and the ownership categories found within the entire target group. The analysis is based on statistics from The County Administrative Boards' Energy and Climate Coordination which are then applied to the demographic statistics from step 1. 3. To Review the Current Energy Policies It will then be important to review what existing conditions, strategies and policy programs already exist for the target group. This study therefore examines strategies and roadmaps at both a regional and a national level, laws and regulations that affect the target group, support

systems and instruments and other factors that in one way or another affect or set conditions for the focus area's implementation potential and for the target group. This survey is mainly based on Sweden's third national strategy for energy-efficient renovation, as well as the Planning and Building Act and the National Board of Housing, Building and Planning's building regulations. This is then supplemented with information mainly from the Government, the National Board of Housing, Building and Planning and the county administrative board. 4. To Make an Energy (Efficiency) Potential Estimation The potential for energy savings should then be analysed. In this study, the potential for the area of focus various, the area is therefore assessed at an overall level based on steps 1-3. In studies with a more homogeneous target group and particularly with a smaller target group, according to Tohlander et al. (2020), it could be appropriate to conduct a survey directly with the target group to estimate potential energy and climate savings. As this is not possible because of limits to time and resources, general and overall assessments have instead been made of the various areas of action within the field (presented in the introduction). 5. To Review the Barriers and Drivers for Energy Efficiency Barriers to and drivers of adjustment for the target group should then be examined. Tholander et al. (2020) recommends carrying this out through studies of previous literature and / or interviews or surveys with the target group. As the target group for this study is so broad and heterogeneous, several experienced and competent actors representing organizations that work with the target group in one way or another have instead been interviewed. In these interviews, these actors have been asked to prioritise between the areas of action based on perceived needs, as well as answer questions about what main driving forces and barriers they consider / experience that the target group is facing. Additionally, a workshop has also been conducted based on the same semi-structured interview template with all municipal energy and climate advisers. To among other things, evaluate local differences between the municipalities and what different barriers and driving forces they see in the area. Previous literature on the subject has also been used to both review and determine the results generated from the interviews. 6. To Suggest Appropriate Policy When steps 1-5 have been performed, it is time to assess appropriate action proposals and policies in an action plan. As described in the preface to this thesis, an action plan will be conducted by the author of this thesis, valuable empirical information and data generated from the abovementioned steps will therefore be assessed in order to provide an action plan separated from this thesis. This step will only been carried out for the areas of action that are deemed to be prioritised by the interviewed actors and the step will not be included in this thesis. 7. To Evaluate the Impact of the Policy Program It is then important to do an evaluation in order to ensure that the right measures are implemented and that the measures create the benefit they are designed to do. As this essay is limited for time, this step cannot be performed within the framework of the thesis. However,

11 key follow-up indicators will be designed for each prioritised area of action within the following action plan. The associated action plan will also be revised and evaluated annually. 6.2 Implementation and data collection While importing information from previously studies similar to this thesis, the Scopus database was used as the platform and the keywords for the search was: Energy, Buildings and Barriers. This generated 3326 different hits. Further research to narrow the results therefore began. In an article by Bavaresco et al. (2019) the authors compiled and evaluated different qualitative methods used in social science regarding energy performance and use in buildings. The authors concluded that the majority of relevant papers reviewed in their article were published in the following scientific journals: • Energy And Buildings • Energy Procedia • Building And Environment • Building Research And Information • Energy Research And Social Science

Another search with the same keywords (Energy, Buildings and Barriers) was again conducted on the Scopus database, but this time limited to articles published in the abovementioned relevant journals. This generated 215 hits, after an initial overview of 100 article titles, ten articles were chosen, all considered relevant to this thesis. After a qualitative content analysis, five of these were chosen for review, as these were considered extra relevant for this specific study, the reviewed articles are presented under; Previous research. 6.3 Case study The research is formed as a case study, even if the area of research is broad it is still within rather strict boundaries outlining the case of study. According to David & Sutton (2016) case studies provides the opportunity to gather and examine many different variables in order to provide an intensive description of the research area. It is a strength for these kind of studies to apply different methods of research, covering as much of the ‘case’ as possible with in the limitations of time and resources. According to May (2001) the main purpose of case studies is often to contribute with knowledge with in the area of research. It may however be challenging to draw broader conclusions, by intensive investigation of a specific sample, generalization may be applicable with in the field of research or sometimes rather bound to only similar cases. This has been the major concern with scientific case studies among critiques, namely the lack of generalizability, which may deprive the external validity from the study (Bryman 2018). However, Flyvbjerg (2006) somewhat suggests the opposite, according to Flyvbjerg (2006) one can often draw general conclusions based on individual case. Flyvbjerg (2006) means that knowledge rather arises from the learning of individual cases, meaning that case studies compose a crucial factor for scientific development. Flyvbjerg (2006) thereby also consider generalization to some extent overvalued regarding scientific accuracy, suggesting examples and cases as an equally accurate way of obtaining scientific closure. According to Flyvbjerg (2006) the advantage with case studies is that it lets you close in and intensively study views and cases from real-life situations, generating a more complete picture and a deeper understanding of complex societal phenomenon as they unfold.

6.4 Analysis of Conditions of the Subject Area (Step 1-4) For implementation of steps 1-4 of Tholander et al.’s (2020) theoretical method template, this study has been based on a qualitative literature review. According to David & Sutton (2016), a literature review consists of two parts; a literature search where material related to the subject is found / collected, and then a deeper analysis of the literature's content. David & Sutton (2016) mean that the literature collected and how it is collected depends on the researcher's level of establishment within the subject. Just as a resident of a city is less inclined to use a map when going somewhere within the city, an established actor of a subject area often knows which studies should be analysed and where these can be found. As a regional development leader at Region Östergötland, with over three years of experience in the subject area and the structures around the target group, this has influenced the methodology for collecting relevant sources. As a result, the study was not based on standardized keywords, but to a greater extent on information of relevant studies and sources based on experience of the position at Region Östergötland. The documents and reports were intensely studied and the conducted review summarises and critically analyse the information given by the analysed literature (Ibid). The main reports analysed in this step were: • Sveriges tredje nationella strategi för energieffektiviserande renovering (Sweden’s Third National Strategy for Energy-efficient Renovation) • Fossilfritt Sveriges färdplan för bygg- och anläggningssektorn (Fossil-free Sweden's Roadmap for the Construction Sector) • Regional bostadsmarknadsanalys för Östergötland 2019 (Regional Housing Market Analysis of Östergötland 2019) • Boverkets byggregler (2011:6) – föreskrifter och allmänna råd, BBR Kapitel 9 (The National Board of Housing, Building and Planning's Building Regulations (2011: 6) - Regulations and General Guidelines, BBR Chapter 9) • Utveckling av regler om klimatdeklaration av byggnader (Development of Rules on Climate Declaration of Buildings) • Fossilfri bygglogistik – en förstudie (Fossil-free Construction Logistics - a Feasibility Study) • Statistics from LEKS and Central Bureau of Statistics In addition to the above-mentioned reports, supplementary reports and information have been obtained mainly from various relevant authorities, including the Swedish Energy Agency, the National Board of Housing, Building and Planning, the Government), the Swedish Environmental Protection Agency, the County Administrative Board, and so on. Information has also been obtained from a number of other actors, including Sweco, Sweden's construction industries, E.on, and so on. 6.5 Review of the Barriers and Drivers for Energy Efficiency (step 5) 6.5.1 Dialogue Meetings / Interview Study and Selection In order to obtain a result that reflects the real needs for Östergötland within the area of focus, the data collection has been largely based on semi-structured interviews which have been called ‘dialogue meetings’. The dialogue meetings are an extremely important part of the process with the action plan as well as the thesis, not least as a democratic and transparent process that governs the content and outcome focus. According to Kvale & Brinkmann

(2009) qualitative interview studies aim to further understand the respondents perspective and further draw conclusions based on their experience. The actors invited to dialogue meetings were selected based on the purpose of this study. Accordingly, there was a need for the dialogue meetings to include actors who represented both private and public sectors, actors involved in both academia and companies, and actors who from different perspectives can monitor that measures do not conflict with other goals. The selected actors also represent organisations that in one way or another support the target group (property owners / homeowners) in their energy and climate work. Emphasis was also placed on competence within and knowledge about the area of research, as the interviewed actors were asked to reflect and answer questions regarding the driving forces and barriers that set the conditions for the change within the area. i.e. larger, prominent actors from different parts of society with good knowledge of the subject area and the target group. Based on their experiences and perspectives, these actors were asked to prioritise the needs of actions within the area of focus based on their perceived societal needs. The interviewed actors are representatives from the following organizations: • Cleantech Östergötland • Linköping’s University • Länsstyrelsen Östergötland • Tekniska Verken • E.on • Fastighetsägarna • Stångåstaden • Sweco • Norrevo • Region Fastigheter The dialogue meetings were conducted as qualitative semi-structured interviews, with a pre- formulated questionnaire on which the dialogues were based. The questionnaire can be found in the appendix 2. The interviews were conducted online and lasted for about an hour each. Prior to the dialogue meetings, information was sent about the purpose of the interview, the Energy and Climate Strategy, and about my role as coordinator and development leader within the area of focus. As the interview study aimed to listen to what the actors considered most important in the subject, a non-standardized questionnaire was settled upon where the answers could be very open and reasoning. According to David & Sutton, this type of interview gives the respondent greater freedom to decide to a greater extent over the flow of the dialogue, which can then also create greater depth and personal richness of detail. Non- standardized questions also try to produce more open answers that provide information about the participant's perceptions, which is what is desired to answer the purpose of the thesis (Ibid). All interviews were recorded and has been transcribed, according to Kvale & Brinkmann (2009) this helps the interviewer concentrate on the topic generating better interviews. It also lets the interviewer reobtain the information collected from the interview at a later occasion, which would generate increased reliability. The interviews were conducted in Swedish. The information collected from the dialogue meetings has then been processed and compiled and the results are presented in qualitative form under results.

6.5.2 Workshop In addition to the dialogue meetings, a workshop was held with the county's eight municipal energy and climate advisers, who together represent all of the county's thirteen municipalities. The workshop was based on the same questionnaire and the same non- standardized and semi-structured approach as the dialogue meetings and was also conducted online and recorded. The workshop lasted for about an hour. David & Sutton (2016) suggest that the method of workshops aims to use the interaction between the individuals in the group to create discussion on the topic. The group dynamics among Östergötland energy and climate advisers are already good, which created the conditions for producing in-depth discussions about the area of research. As the Energy and Climate Advisers represent different municipalities with different conditions, the workshop aimed to collect data and reasoning about local differences between the different municipalities. The outcomes of the workshop are compiled and presented under the heading ‘Results’. 6.6 Suggested Appropriate Policy and Evaluation (Step 6-7) Step 6 and 7 is left out of this thesis, appropriate measures and policies will however be presented in the associated action plan based on information provided through steps 1-5. The action plan will in line with step 7 also be evaluated and revised on an annual basis. 6.7 Validity and Reliability Reliability refers to whether a study can be considered reliable or not. For the study to be deemed to be reliable, the results should be able to be reproduced by others. The study approach and method design described above aim to facilitate this reproduction of the result. Complete reliability within social science and not least, such based on interviews as in this case can however be hard to achieve. Before the study began, some of the respondents were already known to the interviewer to varying degrees. It is possible that these pre-existing relationships could have affected the interpretation of the interviewees’ answers, and it could also have affected the answers given by the interviewees. David & Sutton (2016) describe this as “accessibility selection” in relation to interview studies, which may have affected the study's reliability and validity. However, the relationship between interviewer and respondent can also contribute to an increased understanding of the answers given in the interview (Ibid), which in such cases may possibly lead to increased validity. Still, the question remains whether these respondents would have given the same or different answers at a different time with another interviewer, which in such cases would reduce the degree of reliability of the study (Ibid). The problem is that it will likely be difficult or almost impossible to create identical conditions for any subsequent interview studies with the same purpose and thereby achieve the same results. The study is characterized by external conditions, in this case particularly as the author is in the role of regional development leader in Region Östergötland and to some extent already had some insight and preconceived ideas. Furthermore, conditions for the respondents will change over time and due to external circumstances. Validity is about examining that which is claimed to be examined and is about, following the method theory and purpose posed as a foundation for the entire work (David & Sutton 2016). This thesis describes in detail the various parts of the study's design according to the Tholander et al.’s model within which the study is comprised. This has been done in the hope that the method is an effective way to investigate what the study claims to investigate. The

validity can however be divided into two areas, internal validity and external validity (Bryman 2018). The level of internal validity can more or less be determined by the level of accuracy comparing the case study in theory, in relation to the real-life situation (Bryman 2018). According Bryman (2018) internal validity in qualitative studies can be more accurately referred to as credibility. As for interview studies as in this case, leading questions could affect the credibility of the study. Kvale & Brinkmann (2009) however suggest that leading questions can be necessary parts in many qualitative studies, and that they do not necessarily affect the credibility negatively. Whether a question is leading, or not is according to Kvale & Brinkmann (2009) not of importance, the importance lays with where the question leads. Throughout the conducted interview the respondents were therefore at multiple occasions asked whether the interpretation of their answers were perceived correctly. Since the interviews were conducted online, the screen where notes was taken was also shared so that the respondents could point out misunderstandings throughout the interviews. External validity is about the generalizability of the study (Bryman 2018), as presented under “Case study”, case studies have been criticised for their lack of generalizability, which is further discussed under “case study” and “Method discussion”.

6.8 Method discussion The model for developing policy programs in Tholander et al. (2020) book is based on many years of research in the field. The researchers and authors behind the book are recognized both in Sweden and internationally with a long list of published scientific articles and studies, within the area of the theoretical framework, barriers, and driving forces, and not least in methodology in the development of policy programs for energy efficiency. The model provides a framework for the study but also provides a very open game plan for how each step should be carried out. This framework and specifically the relatively open approach that characterise this study and much other qualitative and exploratory research, can however make it difficult to replicate (David & Sutton 2016). In general, one can however argue that case studies have both advantages and disadvantages. The deeper understanding of the certain case may be on the expense of the level of external validity. The criticism regarding generalizability is of course considered in this thesis. One can however suggest that it is for everyone to judge for themselves whether generalization is possible or not, depending on previous acquired knowledge. General knowledge from a case study could therefore depend on subjective contexts of individuals. No case in societal science can be completely limited, but like with everything else, often understood within a certain context. Arguable this of course also depends on the “specificness” of the case. To ensure replicability, a different model could however have been used and / or a different approach within or outside of the framework of Tholander et al.’s (2020) model. An alternative in this case might have been to send out questionnaires to a larger number of people within the target group. Surveys would have given the opportunity to create a wider selection and get answers directly from the target group instead of from actors around the target group as is the case in this study. There are, however, many different aspects in this broad subject area, and it was therefore deemed that in order to answer the study's purpose, this study required discussion and a more in-depth analysis and reflection. As a result, the qualitative method design was considered better suited for the aim of this thesis.

7. Results and discussion This chapter starts with an analysis of the pre-existing conditions for energy- and climate efficient housing and premises in Östergötland. It presents and analyses demographics and energy flows within the housing sector in Östergötland, the urbanisation rate and housing needs, energy- and climate conditions regarding construction and renovation and other relevant aspects regarding pre-existing conditions for the housing and construction sector. The chapter then presents the results generated from the interviews, showing perceived needs of areas of action as well as perceived barriers and driving forces within the area. 7.1 Pre-existing external conditions and policy There are many pre-existing conditions that both limit and enable the development within the area of energy- and climate efficient housing and premises in Östergötland. This chapter determines the existing conditions and the regulatory conditions for development in the housing and construction sector in Östergötland. 7.1.1 Demographics and energy flows This chapter presents local conditions linked to demographics and energy flows within the housing sector in Östergötland and presents the different existing conditions for Östergötlands different municipalities. 7.1.2 Demography & Energy Flows - Local Differences and Conditions

Housing conditions in Östergötland differ greatly depending on which municipality is analysed and there are clear differences between larger and smaller municipalities in terms of population. In municipalities with less than 20,000 inhabitants, the proportion of dwellings in detached houses makes up over 60 per cent of the housing stock in all of these municipalities (Ödeshög, Ydre, Kinda, Boxholm, Åtvidaberg, Söderköping and Valdemarsvik) with the exception of Vadstena where only 48 per cent of the housing stock consists of detached houses. In Ydre municipality, as much as 85 percent of the municipality's housing is made up of single-family homes, and Ödeshög also has an extra-large proportion of single-family homes; about 74 per cent. The diagrams below show Östergötland's municipalities' distribution of housing based on owner category (detached houses, tenant-owner associations, private real estate companies, public housing companies and other houses & special housing).

Figure 2. Processed statistics from Central Bureau of Statistics (SCB, 2020A).

Figure 3. Processed statistics from Central Bureau of Statistics (SCB, 2020A).

If you then apply SCB’s (Central Bureau of Statistics) statistics on forms of housing in relation to LEKS’s statistics for energy use in households per municipality, we obtain an index that shows energy use per household (shown in the diagram below). The different demographic conditions within the different municipalities mean that this index is not comparable between, for example, Linköping and Ydre. However, by clustering municipalities with similar demographics, these statistics provide a clearer picture and comparable figures for the different municipalities’ energy efficiency in the local housing sector.

Figure 4. Processed statistics from SCB 2020A & LEKS 2017 Based on the diagrams for demographic conditions in relation to the Index for household energy use, it becomes clear that an increased proportion of single-family homes in a municipality results in a higher index, i.e. poorer energy efficiency per dwelling. This becomes even clearer if we consider Ydre municipality, where as much as 85 percent of the municipality's housing consists of single-family homes, which results in a higher index (24.51 MWh / year per household). The average for Östergötland is shown on the far right in the diagram above (15.46 MWh / year per household). In Yeatts et al. study from 2016 different efficiency barriers across the housing sector are studied. Yeatts et al. determined that culture and other socio-economic characteristics found within companies or/and local geographical communities can have a large impact on decision-making. Some cultures and norms are according to Yeatts et al. less likely to perceive energy efficiency technology as desirable thus less likely to make an effort to use them. Such characteristics include for instance low education, low socio-economic status, negative attitudes to change, resistance to innovation, a closed belief system, a lack of faith in science and inability to cope with uncertainties (Yeatts et al. 2016). Whether this is the case in Östergötland between different municipalities are to some degree most likely, it is however an area that needs further research.

7.1.3 Public versus privately owned housing companies Looking at smaller municipalities in Östergötland with similar demographic conditions (Kinda, Boxholm, Åtvidaberg, Söderköping and Valdemarsvik) in relation to the index for energy efficiency, several aspects become clear. Of these aspects, worth noting is that, as displayed in the diagrams for demographic conditions, neither Valdemarsvik municipality nor Åtvidaberg municipality have public housing companies. It is also clear that Valdemarsvik's municipality has a relatively high index compared with other similar municipalities (21.67 MWh / year per household) and thus have the least energy-efficient housing situation. However, whether this is due to the lack of public housing companies is unclear, since Åtvidaberg, with a similar situation, is one of the smaller Östergötland municipalities with the lowest index (17.45 MWh / year per household) and thus has a more energy-efficient housing situation. Boxholm has a remarkably similar demographic picture to Valdemarsvik, where, among other things, the proportion of detached houses is at the same levels, as are the apartment buildings, except that these instead consist for the most part of public housing. Boxholm also has a high index (21.21 MWh / year per household), which then indicates that there is not necessarily a direct connection between energy efficiency depending on whether the apartment buildings are operated under public or private auspices. Nevertheless, these differences are of course due to several different aspects other than the proportion of homes within different owner categories. It would be worth further researching these aspects in Östergötland, preferably tracking the energy within the various owner categories and then evaluate its data based on other socio-economic aspects and municipalities' energy and sustainability work. In Nair et al. study from 2017 the authors concludes that the decisions to invest in energy efficiency improvements to a large extent depends on the type of ownership, thus also different barriers apply for different ownership-categories. Whether Nair et al. (2017) conclusions apply to Östergötland, and if so, to what degree is not possible to extract from the statistics provided in this thesis, thus deeper research is needed for the specific area of subject. By analysing Östergötland’s smaller municipalities, we can however with the data available for this study note that a larger proportion of privately owned apartment buildings in smaller municipalities usually generate a slightly more energy efficient housing situation than a larger proportion of publicly owned public apartment buildings except for Valdemarsvik, though the difference seem marginal. This is supported by the fact that Åtvidaberg, Söderköping, Kinda and Ödeshög all have a higher proportion of privately owned multi-dwelling apartments than Boxholm and they also have better energy values. This despite the fact that the EUs Energy Service Directive (ESD) and the Energy Performance of Buildings Directive that was adopted in 2006 states that the public sector must set a good example by adopting energy efficiency improvements at an early stage (Europa parlamentet 2012). The public sector should likewise take on the role of leader and have an important role in overcoming barriers to energy efficiency. In Östergötland's larger cities Linköping (14.41 MWh / year per household) and Norrköping (14.46 MWh / year per household), the distribution between owner categories in the housing stock looks relatively similar. Norrköping, however, has a slightly higher proportion of

20 homes owned by privately owned real estate companies. Both municipalities are below the average for Östergötland (15.46 MWh / year per household) and have a relatively energy- efficient housing situation. Approximately 66 percent of Östergötland's total population live in these cities, of which 35 percent in Linköping and 31 percent in Norrköping. 7.1.4 Summary demographics and energy flows This compiled statistic of Östergötland's demographics in relation to the various municipalities' household energy use can provide an indication of the various initiatives required for the housing and real estate sector in the whole of Östergötland to develop more sustainably and energy efficiently. In summary, it can be noted that there is no simple solution to the challenges within the area of energy and climate-efficient housing and premises. Different efforts will be needed for different municipalities with different demographic conditions. Östergötland is divided between rural and larger urban areas and thus very differentiated, the efforts required in our larger cities are most likely not solutions to the challenge our smaller municipalities face and vice versa. Because the needs are so different in different municipalities it is crucial that the initiatives be anchored according to demographics and the needs of individual municipalities: there is no one size fits all solution. Based on demographics in relation to population and energy statistics for household energy, it is also clear that the municipalities that for various reasons have a relatively poor energy housing situation are the following municipalities: Motala, Finspång, Boxholm and Valdemarsvik. The municipalities that are doing better are Vadstena, Åtvidaberg, Mjölby, Ödeshög and Linköping and Norrköping. Whereupon the remaining municipalities (Söderköping, Kinda, Ydre) are at moderate levels according to their conditions. 7.2 Urbanisation and Housing Development According to Sweco’s report “Sweden's new geography” from 2019, the urbanization trend, where metropolitan regions and larger cities continue to grow, continues. The report states, among other things, that in the last 10 years alone, Linköping's population has increased by 14 percent. But it is also clear that the urbanization trend is more complex today than before, and that the previously clear patterns where larger cities have increased at the expense of the countryside are no longer as clear. The larger cities simply continue to grow, mainly due to a birth surplus and immigration from other countries; not primarily due to a declining rural population. According to the Swedish Central Bureau of statistics (SCB, 2020B), the population in Östergötland is estimated to grow by 7.1 percent between 2019 and 2030, an increase from approximately 465,500 inhabitants in the county to approximately 498,500 inhabitants. The majority of that increase will take place in the county's larger cities. The National Board of Housing, Building and Planning) also assesses in its report “Vision for Sverige 2025” that future urbanization will lead to densification rather than expansion of urban areas (Boverket, 2012). 7.2.1 Housing Needs According to the County Administrative Board of Östergötland latest Regional housing market analysis for Östergötland (Länsstyrelsen, 2019B), there has long been a large deficit in housing in Östergötland, and this trend appears set to further continue in the coming years. The analysis shows that all municipalities in the county have a housing deficit. The County Administrative Board estimates that the deficit comprises a lack of almost 10,000 homes, and

the analysis discusses the fear that housing deficits may become a hindering factor for regional and local development. (Länsstyrelsen, 2019B) In 2015, many construction projects were started, but the pace of construction (apartments started being built per year) in Östergötland has decreased since 2015, this applies throughout Sweden, but the decline is particularly clear in Östergötland according to the County Administrative Board analysis. The analysis primarily notes a decline in the number of construction projects of apartment buildings (Länsstyrelsen, 2019B). In summary, the County Administrative Board analysis suggests that extensive efforts are needed in the county to cope with the current housing needs. To quantify the housing need, the County Administrative Board estimates that almost 2125 new homes need to be built per year in Östergötland to match the need and create balance in the housing market. The analysis also indicates that approximately 80 percent of the housing development that will take place in Östergötland by 2030 is estimated to take place in Linköping and Norrköping. The factors that hamper development are deemed to be construction costs, housing prices and a lack of attractive detailed planned land. In order to reverse the downward trend and thus be able to cover the housing needs that exist, the County Administrative Board suggests that more collaborative initiatives between municipalities, the region, the county administrative board and the business community are needed. 7.3 Construction regulations and climate impact This chapter present aspects such as energy- and climate regulations, and climate impact of new constructions of buildings. 7.3.1 Climate impact of construction of new residents As described, there is a great need for new residences in Östergötland, meaning that there is a great need for new construction. Construction of buildings does however generate large emissions. In recent years, approximately 50 percent of the construction and real estate sector's emissions have arisen during the construction and renovation phase and the remaining emissions during the use / management phase. Since 2008, domestic emissions from the construction and real estate sector have more or less stagnated at a level that requires new initiatives for development. In recent years, there has been no significant change in emissions related to the renovation and construction phase. In a study by Sweden's construction industries conducted in 2018, the climate impact was analysed from a life cycle perspective of a number of different design solutions for new construction of apartment buildings. The study found that approximately 50-60 percent of the total climate impact of buildings happens during the construction phase, over an analysis period of 50 years. Furthermore, when the buildings are built to be more energy-efficient and with a smaller share of fossil energy in future energy mixes, the climate impact of the construction phase may possibly account for an even larger share (Sveriges Byggindustrier 2018). There are currently laws and regulations that place strict demands on high energy performance in new buildings. This creates energy-smart buildings, however, in order to create sustainable buildings, it is required that the climate impact also be measured and minimized throughout the building's life cycle from construction site to finished building. At present, there is generally little knowledge about climate impact and life cycle perspectives.

There is also a lack of standardisation models for calculating the climate impact of construction processes. The study by Sveriges Byggindustrier (2018) proposes a number of measures that should be taken into account in all new production and major renovations linked to climate savings, as follows: • Order climate-improved concrete. • Choose renewable fuels for transport. • Optimize energy use on the construction site. • Choose coating on balconies with low climate impact with regard to maintenance. • Calculate the climate impact of each individual construction project. • Increase competence of climate impact in the entire value chain, particularly for the procurement function. Sweden's construction industries already consider all of the above-mentioned measures feasible. (Sveriges Byggindustrier 2018).

7.3.2 Climate regulations for construction To handle the problem with large emissions from construction projects the Government has proposed that when constructing a new building, the climate impact should be reported in a climate declaration. The law will come into force on 1st January 2022 and aims to reduce the climate impact of the construction of buildings by making it visible. The idea is that the climate declaration will support actors who make decisions that affect climate emissions during the construction process, and that this will improve the conditions for reduced climate impact during construction. The climate declaration will in the long run be used to set minimum requirements for construction from a life cycle perspective. The declaration's requirements will also cover many of the above measures proposed by Sveriges Byggindustrier (Boverket 2020A). More information about climate declaration can be found compiled in the appendix 3.

7.3.3 Energy regulations for construction Many different laws and regulations that provide a framework for what construction processes and changes to properties should look like. Chapter 9 in The National Board of Housing, Building and plannings, building regulations are one of the most important regulations regarding energy standards for new buildings (Boverket 2018A). The regulations regulate most aspects regarding material, design and technology in relation to energy performance in new construction and renovation of buildings. The regulations can however be translated into seven different energy classes where the minimum requirement level for new construction corresponds to energy class C, regardless of the type of building. The energy classes are based on the building regulations' requirements for energy performance, and correspond with the Swedish system for energy declarations and are divided as follows (EP = energy performance): • A = EP is ≤ 50 percent of the requirement for a new building. • B = EP is > 50 - ≤ 75 percent of the requirement for a new building. • C = EP is > 75 - ≤ 100 percent of the requirement for a new building. • D = EP is > 100 - ≤ 135 percent of the requirement for a new building. • E = EP is > 135 - ≤ 180 percent of the requirement for a new building. • F = EP is > 180 - ≤ 235 percent of the requirement for a new building. • G = EP is > 235 percent of the requirement for a new building. (Boverket 2020B).

The energy performance regulations for new buildings are very strict and ensure that new buildings are very energy efficient. More information about energy performance regulations and other relevant building laws can be found compiled in the appendix 4.

7.3.4 New construction versus existing buildings Even though the need of new buildings is deemed very important, the great mass of buildings of course consist of existing ones. Both existing as well as new buildings require long-term planning to create sustainable urban areas in line with the Agenda 2030 goal 11. The figure below shows the share of annually added buildings in comparison with the existing buildings in Östergötland. The blue-marked houses on the far right correspond to buildings added between the years 2018-2019 (1 percent), the remainder corresponds to the existing property stock.

Figure 5. Annually additional housing in relation to existing. (Processed statistics from Central Bureau of Statistics (SCB 2020A).

Considering the climate impact as previously presented it becomes clear that new constructions which on an annually basis make up 1 percent of the total sector generates enormous emissions. According to Fossil-free Sweden’s roadmap for the building and construction sector (Fossil-fritt Sverige 2018), it is estimated that about 25 percent of the sector's greenhouse gas emissions are generated during renovation, meaning that the 1 percent of annually added buildings generate about 25 percent if not more. However, to accelerate this development it is important that we work with the properties that already exist today. This have however shown to be easier said than done. 7.4 Energy Efficient Renovation The third strategy for energy efficient renovation is part of Sweden's integrated national energy and climate plan. According to EU regulations, each Member State must establish a long-term renovation strategy to support the renovation of the national stock of residential buildings and premises. The report was finalized in December 2019. According to the report, Swedish apartment buildings are in a so-called renovation debt, as maintenance has been neglected. As mentioned, the renovation rate in the EU is at 1,2 percent per year according to Salvalai (2018). The rate has however increased over the past ten years, compared to previous decades, but despite this, the renovation debt is increasing. In previous decades, according to

the report, it has been more common with complete renovations, where today smaller renovations are usually done (Regeringen 2019). As previously discussed, the building stock accounts for a large part of Sweden's energy use and climate impact. Most of the buildings are older and are considered to have relatively extensive needs for renovation. In order for the building stock to achieve a more efficient energy use than today, more energy-efficient renovations need to be carried out, and particularly more extensive renovations. Though the trend towards reduced energy use in the building stock is going in the right direction, the report shows that there is great potential for further improvements. In Östergötland only 15 percent of all the county's properties are less than 30 years old. The majority of the properties in Östergötland today were built during the 60s and 70s, but there are also many properties that are beginning to approach 100 years old as shown in the figure below (SCB, 2020A). Year of Construction of the Existing Property Stock Östergötland

45000 40000 35000 30000 25000 20000 15000 10000 5000 0 -1930 1931-1940 1941-1950 1951-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2010 2011-

Figure 6. Year of Construction of the Existing Property Stock Östergötland. (SCB 2020A) Regarding apartment buildings, these are estimated to have a renovation cycle of 40-50 years. If the apartment buildings follow their renovation cycle, most apartment buildings from the 60s-70s are, or should be, in need of major renovations. The table below shows how the Ministry of Infrastructure, has assessed and estimated the need for renovation of buildings built up to 1980 at national level, where over 80 per cent of the area that makes up the apartment buildings is in need of renovation regardless of the decade the building was built (Regeringen 2019).

Proportion of already renovated area Proportion of area in need of renovation Year of Construction Före 1940 13 % 87 % 1941–1960 13 % 87 % 1961–1970 18 % 82 % 1971–1980 12 % 88 % Table 1. Existing buildings with renovation needs are considered here, not including the buildings built after 1980. (Regeringen, 2019). There is thus an enormous need for energy-efficiency renovation of Sweden's housing stock, both at a national level, as well as at a regional level here in Östergötland. Further, the different energy efficiency measures and motivation for these measures may look different depending on the different capacity of home and property owners. The report states that there is no consensus on which energy efficiency measures are, or are deemed to be, profitable. This of course depends on different profit requirements, profitability criteria and financial

25 conditions of different businesses. The definition of a profitable energy efficiency measure therefore varies depending on whom you ask. Like most other barrier studies Hrovantin and Zoric (2018) concludes that a great barrier for development are the initial costs of the investment thus the lack of capital. This does however depend; according to Clancy et al. (2016) companies with fixed limit budgeting and short payback requirements are less likely to even investigate options for upgrades and behaviour changes. Another interesting factor determining whether companies investigate options, are if the company in the previous ten years have undergone an energy-saving renovation, if they have, they are more likely to investigate more options for both technological and behaviouristic change measures. The barrier of the likeliness to investigate different options is crucial to overcome, otherwise no other barrier and driver really matter the measures will most likely not be implemented anyways. According to Clancy et al. (2016) most decision-makers in the housing sector are still behind that barrier. Regarding detached houses, the report from the Ministry of Infrastructure (Regeringen 2019) mentions a survey from 2009 (BETSI) which was carried out by the National Board of Housing, Building and Planning, where 826 detached houses were inspected. The study found that almost 70 percent of Sweden's detached houses had some kind of damage. The main kind of damage was moisture damage and, though the registered damage was not of very serious nature, the need for renovation in the category of detached houses was also deemed to be great. The Ministry of Infrastructure report states however that the study is still relevant in this context, particularly as the rate of renovation is generally low in the category of detached houses. The need of energy efficient renovation in Östergötland cannot be stressed enough. To achieve national as well as regional energy and climate goals and contribute to the Agenda 2030 goal 7, we simply need to get rid of unnecessary energy use, and reduce the barriers holding development back. A more energy efficient sector for housing and premises would enable development for the rest of society. 7.4.1 Barriers regarding renovations The Ministry of Infrastructure (Regeringen 2019) has identified several market failures hindering energy efficient renovation. Market failures in this case are considered to be shared incentives or lack of access to information that can lead to energy efficiency measures not being implemented even though they are economically profitable overall. An example might be a tenancy agreement where heating costs are not included in the agreement, whereby the tenant has an incentive to manage energy use while the property owner lacks incentives for energy efficiency potentiation. In Sweden, however, tenancy agreements with heating included in the agreement are dominant in the apartment building sector, which usually places the responsibility and incentives on property owners (Regeringen 2019). The Ministry of Infrastructure therefore notes in the report that this barrier to increased energy efficiency has a significantly smaller impact compared to, for example, knowledge-related barriers or profitability barriers. This is also in consistence with previous barrier studies reviewed for this thesis. The Swedish rent setting system for housing distinguishes between different measures where standard raising measures give property owners the right to increase rent, but maintenance measures where many energy-related measures are included do not justify rent increases.

This means that the energy efficiency measure itself must be profitable for the property owner, or alternatively that the measure is combined with standard-raising measures. This can then in the long run generate increased rents and thus possibly damage certain social aspects of our society. Property owners simply have weaker incentives for maintenance measures in relation to standard-raising measures. In the context Nair et al. (2017) determines that the low energy costs in Sweden generates a perceived lack of incentives for implementation of energy efficiency measures. Whereas fear of energy prices increasing in the future would generate more incentives. Hrovatin and Zoric (2018) however states that uncertainty about future price may have the opposite effect, keeping homeowners on status quo. 7.4.2 Drivers for renovation Individual metering and billing (IMD) can be an effective way of reducing the shared incentives between property owners and tenants that can arise from tenancy agreements both including and excluding heating in apartment buildings and thus create broader incentives for energy efficiency measures and awareness. In December 2019, an amendment was made to the ordinance (2014: 348) on energy measurement in buildings (Riksdagen 2019). The new requirements of the ordinance will come into force on 1 July 2021. The law differs somewhat between the counties of Sweden, for Östergötland the law will require the installation of systems for individual metering and billing (IMD) of heating and hot water in apartment buildings with primary energy exceeding 200 kWh / m2, as well as for rebuilding or new installation for domestic hot water. The effects of this transition are deemed to create more equal conditions regarding incentives between tenancy agreements whether heating is included or excluded in the agreement. However, exactly what effects the transition will have depends in part on what IMD terms the rental market parties agree on at a local level (Regeringen 2019). There are however many drivers presented throughout previous studies, most do however handle internal organisational changes and approaches, and not fundamental condition changes more than governmental subsidies and regulations which throughout many studies are considered to be some of the most important divers. 7.4.3 Current energy situation and development in the Swedish housing sector Every ten years, most apartment buildings in Sweden must declare their energy use in accordance with Swedish legislation. It has now been more than ten years since the energy declarations were introduced in Sweden, hence many property owners need to update their energy declarations. The energy declaration is a document with information about energy use for a property and thus makes it comparable to other properties. In an energy declaration, buildings are classified in energy classes A-G. The energy classification of buildings is based on the requirements for energy use placed on new buildings that are found in the National Board of Housing, Building and Planning, building regulations, which are described further down in this thesis. For new buildings, at least energy class C is required (Boverkets 2018). In Sweden's Third National Strategy for Energy-efficient Renovation by the Ministry of Infrastructure (Regeringen 2019), Sweden's energy declarations have been compiled to provide an overview of the development. The compilation has distinguished between detached houses, apartment buildings and premises, and is based on the different energy classes of the properties, the situation in Sweden should in general terms, also correspond to the situation in Östergötland (Regeringen 2019).

In 2019 only 22 per cent of Sweden's detached houses were energy-declared, as detached houses are usually only declared when they are sold. Only 15 per cent of the energy-declared detached houses are in energy class A-C, meeting the requirement on new buildings. Most of Sweden's detached homes are in energy class D and E (53 percent), and 32 percent in energy class F-G. The declared detached houses studied averaged an energy use of 100 kWh / m2 Atemp and year and an average primary energy figure of 144 kWh / m2 Atemp and year. Regarding Sweden's apartment buildings 63 percent of Sweden's apartment buildings were energy declared in 2019, the average energy use of the declared properties was 131 kWh / m2 Atemp, which in primary energy is translated into 149 kWh / m2 Atemp and year. Only 5 per cent of the apartment buildings are found in energy classes A-C, 16 per cent are in energy class D and as many as 79 per cent are in the three lower energy classes E-G. Regarding premises buildings, these are defined in the Ministry of Infrastructures report (Regeringen 2019) as buildings that contains more than 50 percent premises (ie. not housing). 14 per cent of energy-declared premises are in energy class A-C (near net-zero energy buildings), otherwise the remaining premises are distributed relatively evenly over energy class D-G. Average energy consumption was 128 kWh / m2 Atemp and year and average primary energy was 186 kWh / m2 Atemp and year.

In conclusion, of the three different kinds of buildings presented above it is mainly apartment buildings that are falling behind both detached houses and premises. This is also in line with the apartment buildings’ renovation debt presented in the report from the Ministry of Infrastructure (Regeringen 2019) and indicates that future efforts should prioritize apartment buildings regarding energy efficiency initiatives. As stated before in this thesis as well as in the Ministry of Infrastructure’s report the renovation rate needs to speed up. Considering the transition over time, we can however, based on the above knowledge, state that energy work in the real estate sector is a slow process that takes time. Regardless of measures and activities, nothing changes overnight. We can however, see improvements over years and considering that many of Östergötland’s buildings go into their renovation cycles as previously mentioned, an acceleration of the energy efficiency in the overall housing sector can be expected the following years. Furthermore, initiatives, activities and projects can increase the pace of efficiency and reduce the barriers.

7.4.4 Support for Energy Efficiency Measures and Renovation of Apartment Buildings In the autumn of 2020, the government presented a proposal for a new initiative on energy efficiency potentiation and renovation support for apartment buildings. The support package is planned to include SEK 900 million for 2021, SEK 2,400 million for 2022 and SEK 1,000 million for 2023. The purpose is to increase the pace of energy efficiency potentiation and reduce the barriers for necessary renovations. A more detailed design of the support package will be prepared during 2021 (Regeringen 2020A). 7.5 Other relevant aspects regarding energy- and climate efficient buildings This chapter presents other aspects that sets further conditions for development within the housing and construction sector, such as resource efficiency, material, logistics, and presents a few other relevant subsided for the sector.

7.5.1 Resource Efficiency - Waste Classification There is an enormous need for new housing and other new infrastructure throughout Sweden, particularly in Östergötland, as described under the heading ‘Housing Needs’ in this essay. Construction is therefore currently at a pace that has not been seen since 1970 when The Million Program (Miljonprogrammet) was built (Länsstyrelsen 2019B). At the same time, about a third (around 10.4 million tonnes) of Sweden's total waste is generated on an annual basis from the construction and real estate sector (Fossilfritt Sverige 2018) According to The County Administrative Boards report (Länsstyrelsen 2019C) increased collaboration is required, between county administrative boards, the municipalities and construction companies in order to minimize waste. However, the work ahead will not be entirely straightforward as there are several different regulations to comply with. Dealings with residual products are affected in a different way by laws and regulations than are dealings with main products. If the residual product, for example, is considered waste, permit applications are required that are time-consuming and thus can cause both sellers and buyers to refrain from the deal, even if the material could be valuable. The Government also states in the report Cirkulär ekonomi – strategi för omställningen i Sverige (Regeringen 2020B) that legislation in the area of waste management needs to be continuously modernized in order to adapt to the circular economy. Such a process could then mean that more residual material can be used in renovations and new production of properties. According to the waste hierarchy, which can be found in the Waste Directive (Avfallsdirektivet) and The Swedish Environmental Code (Miljöbalken), waste must primarily be prevented so that the quantities of waste are reduced followed by reuse, material recycling, energy recovery and ultimately landfill. Using recycled materials generally reduces the climate impact compared to using virgin materials. 7.5.2 Building Materials – Steel and Concrete Important components in the construction industry, such as steel and concrete, are very carbon dioxide-intensive industries that set conditions for sectors where there is such dependence. In order to create better conditions for the construction and real estate industry, new production methods are therefore required for both steel and concrete, particularly in the Swedish market. The steel industry is the industry in Sweden that by far emits the most carbon dioxide. The concrete industry also accounts for enormous emissions (Naturvårdsverket 2020B). As the construction phase of the construction and real estate sector constitutes such a large part of the emissions, investments in sustainable materials and a market-driven conversion to sustainable building materials are required, as well as circular resource flows in material handling for new construction and renovation. 7.5.3 Construction Logistics This is an area that is of utmost importance as it is linked to the construction and real estate sector and to the Energy and Climate Strategy's goal of climate neutrality. With the regulations mentioned, society has begun to produce more sustainable buildings, but at the same time the building logistics are often not as sustainable, generating enormous amounts of CO2 emissions. Construction transport accounts for about 50% of a city's cargo transport and about 20% of the total number of transports and thus for the largest part of CO2 emissions from heavy transport. Three quarters of the goods that were loaded or unloaded in Östergötland in 2016 were transported within the county, with a concentration to and from the

29 urban areas of Linköping and Norrköping (Triplef 2019). The environmental impact of cargo transport in the form of, among other things, emissions, noise, and infrastructure wear, must simply be reduced. To a certain extent, this can be achieved by transferring to modes of transport that affect the environment less, and it is important to continue to facilitate this through, among other things, capacity increases and efficient terminal management. However, since large parts of cargo transports cannot move between modes of transport, the reduced environmental impact must for the most part happen by making each mode of transport more environmentally efficient, so that the same amount of goods can be moved with less environmental impact. This can be achieved, for example, through higher filling levels and vehicles with lower emissions, and by enabling transport with longer and heavier vehicles. Previous studies show that there is potential to reduce construction transport by about 60-80% by using a well-thought-out construction logistics solution and also that there is potential to improve efficiency in the construction industry by up to 30 percent through improved logistics (Triplef 2019). 7.6 Barriers and drivers During the interviews the representatives were asked to think freely from a societal perspective and from their own experiences and contexts. During the prioritization, each action area was also discussed. As the areas of action are broad, some broader than others, different perspectives and approaches linked to each action area were thus generally discussed. It was clarified that all areas of action are prioritized according to the Regional Energy and Climate Strategy, but that this analysis was done as a supplementary needs- analysis regarding which areas they considered to be in greatest need of action right now. The respondents were asked to identify between 3-5 areas where they saw the greatest need, benefit and concern within. The results of this needs-analysis are visualised in the figure below:

Prioritized focus areas - Dialog-meetings

9 8 7 6 5 4 3 2 1 0 Focus area 1. Focus area 2. Focus area 3. Focus area 4. Focus area 5. Focus area 6. Focus area 7. Focus area 8. Energy Digitisation Energy and Energy Energy and Low-grade, or Renewable Energy efficiency in for energy resource exchange resource low- energy supervision of existing optimization efficiency, between efficiency in temperature, production on buildings. buildings. renovating buildings new energy buildings. existing construction. sharing. buildings.

rep. LiU rep. Norrevo rep. Stångåstaden rep. Tekniska Verken rep. E.on rep. Cleantech Ö rep. Sweco rep. Region Fastigheter rep. Fastighetsägarna Workshop EKR:er

Figure 7. Results from dialog-meetings, prioritized focus areas. (Daniel Kvist) 30

7.6.1 Barriers for development The above results show areas of actions and in what areas of action efforts should be placed. It does not however indicate how efforts should or could be designed and modelled. While designing measures within the prioritized action-areas there are a few things that needs to be taken into account. Not least the external conditions that has been analysed and compiled in this thesis, but also existing barriers and drivers that compose further conditions that determine the pace of development. The interviewed organisations where thereby also asked questions regarding their perceived barriers and drivers for development within the area of energy and climate efficient housing and premises in Östergötland. The answers given by the respondents have been interpreted and are compiled in the figures below. The question regarding barriers given to the respondents was: From your perspective and your contexts, what do you see as the biggest barriers for development in Östergötland within the construction and real estate sector?

Preceived barriers

Split incentives Lack of collaboration Lack of holistic thinking Short-term goals Dont dare try new things Economy / Lack of Capital Lack of standardizations Administration Law & Regulations Lack of knowledge Lack of competence Lack of Resource & time

0 1 2 3 4 5 6 7 8 9

Norrevo Cleantech Sweco Fastighetsägarna Tekniska Verken E.on LiU Stångåstaden Region Fastigheter Energi- och klimatrådgivarna

Figure 8. Results from dialog-meetings, Precieved barriers. (Daniel Kvist) Some of the above-shown barriers are similar and touch each other, some are decided by external conditions, and are hard to affect on a regional level, and some can be affected by regional action plans and measures. Bellow the most prominent barriers from the dialog- meetings are assessed. 7.6.1.1 Lack of knowledge and competence One of the main parts raised as a barrier to development in the area during the dialogue meetings was the knowledge barrier. There is a lack of knowledge on different levels, the majority (over 75 percent) of those who order energy services are lay people (Energikontoren Sverige 2019), many of whom may have limited knowledge of which measures should be prioritized. In addition, large proportions do not order energy services at all, or understand

31 why they should work with energy issues. As with most things, many may feel uncertain in relation to something new, and may not dare to try new things. Most small real estate companies also lack human resources on sustainability and energy positions. Knowledge and competence development in climate and energy efficiency could therefore be intensified towards the target group. However, the needs of knowledge surely differ a lot between the different municipalities; therefore, it is important to adapt measures according to local needs and conditions in different municipalities and for different owner categories of housing. These above-mentioned aspects within the barrier of lack of knowledge were all discussed during the various dialog-meetings. During the dialog-meetings many wise things were raised regarding the lack of knowledge within the area. While discussing knowledge as a barrier the respondent, representing Cleantech Östergötland framed the barrier of lack of knowledge accordingly: “There is no knowledge in issues where you need to act, or more so even that you need to act at all. It is here where public support organisations within the area must be a driving force in proving that there is a choice to act or not. If decision-makers do not understand that they are facing a choice to act in sustainability, they will most likely have problems for the future, and this applies to a very high degree to the construction and real estate sector. I would rather see people opt-out than not take a decision at all. Nevertheless, not seeing that you need to make a choice is something I think I encounter far too often. […] I think this is generally the biggest challenge you face in the industry these days, precisely the ignorance of not knowing that you are facing a choice. According to the respondent, one could argue that reducing the barrier through increasing knowledge gives decision-makers within the target group a choice, and if decision-makers now understands that he/she is facing a choice the person would most likely choose the right thing accordingly with the newly provided information. What the respondent from Cleantech Östergötland in the above quote is saying can also be strengthened by previous research. According to Yeatts et al (2016) the barrier of knowledge is mainly about the knowledge that energy efficient technologies provide an advantage. If this knowledge of advantage does not exists, the decision-makers will have no incentives for implementation. According to Clancy et al. (2016) this first step of the knowledge barrier, or the lack of understanding of choice as the respondent from Cleantech Östergötland refers to it, is still a barrier of significant importance, whereas the majority of decision-makers in Clancy et al. (2016) study had not overcome this barrier. The respondent from Cleantech Östergötland then continues and expands on the barrier of knowledge stating: The knowledge is simply too low to understand how to act strategically in the issue in the long term. I think there are very few with knowledge in the area who can say that this is not important, so it is very much about raising the minimum level! Therefore, we should not work with those who are already “saved” but raise knowledge where it is needed. ” The respondent insisted on adapting knowledge-measures after need and found it important to raise the minimum level, generating more people facing a choice. The barrier of knowledge is however not necessarily overcome by reducing the first step, even if the first step of the hassle of investigating the available options is overcome there are still many other barriers for

32 implementation (Clancy et al. 2016). Raising the minimum level can in cases be easier said than done, according to Yeatts et al. (2016) there are both socio-economic as well as cultural aspects which may hold development back. Even if decision-makers are given the knowledge as well as access to energy efficient technology, it may not appeal to them. According to Yeatts et al. (2016) culture and individual characteristics and behaviour can reduce the appeal of efficient technology. The respondent from Cleantech Östergötland does however of course have a point, if the first step is not overcome or at least reduced, the other barriers or drivers are all without importance or purpose. Information campaigns, through seminars and workshops can be effective in the mean of increasing knowledge. According to Tholander et al. (2020) such procedures have however, shown little impact in terms of actual energy efficiency measures implemented. Which confirms that there are often other barriers in play as well. Nevertheless, as the respondent from Cleantech suggests it can be an effective way of improving the general knowledge where needed and for raising the minimum level. For target-groups with more pre- existing knowledge it might however be more effective to create network-programs, such programs give companies and decision-makers the opportunity to mature in their energy management practices (Tholander et al. 2020). Networks and workshops can also serve the purpose of increasing collaboration between actors. 7.6.1.2 Economy and lack of capital The economy aspect and barrier of lack of capital was also one of the more prominent barriers raised during the dialog-meetings, and many of the respondents named similar aspects. An interpretive summary of the discussions regarding lack of capital from the dialog-meetings follows bellow. Many in the sector do not have the muscle to invest, in the short term there are often large costs. This applies in the private sector as well as for municipalities and public administration. If there are no investment space, there will be no investments, even if measures are considered economically valuable in the long run. As previously stated in this thesis, the Government is planning a major financial support / subsided for energy efficiency measures in apartment buildings. Here lies a responsibility on public support systems and projects to make it easier for property owners to apply and identify profitable measures. In many ways, the economy is still as opposed to sustainability measures, this is a structural problem. It is therefore important to find measures that in the long run creates more profitable businesses; the sector needs to learn to think long-term. Those businesses that do not prioritize sustainability will in the long run lose. Everyone with the knowledge is namely faced with a choice when it comes to sustainability; to invest energy and climate-smart or not. It is however important to have expanded the issues to a holistic perspective where the systems work, where property owners have the opportunity according to capacity, systems, infrastructure, regulations and financial incentives to implement and invest in the right measures. This can however be difficult, different concerned actors may speak different languages. For example individual property-owners will act to maximize their own return / revenue, while energy companies provides services which becomes more climate-efficient the more customers they have, but these services are not necessarily the most economically beneficial option for individual property-owners.

However, most respondents argued that property owners in general are rational, which increases the importance of suppling property-owners with sufficient knowledge of energy- costs and appropriate measures. The interviewed respondent from The Industry Association of Property-owners argued: As long as there are, financial incentives to make properties more energy efficient, property owners will work with energy […] It must be assumed that energy use will increase. Especially the use of electricity. I mean electric cars, bicycles, systems and not least, gadgets that need electricity supply. It is therefore extremely important that we have an electrical system that actually works. Thus, it is important to ensure that the measures property-owners want to do and need to do, work in the large system, in terms of both profitability, legislation and the electricity system. To achieve this, it will be important have long-term perspectives, not least regarding policy and promotion. What the respondent is saying is that in order to affect decision-makers to take the right decisions, the financial incentives must reflect what the right measures are. The respondent suggests that most property-owners are rational and will follow the money. Another respondent representing E.on responded in a similar way stating that: The economy always speaks first, there must be economy in the measures, I do not think that property-owners primarily would go for sustainability; they take the economically profitable measures, which in best of worlds also create energy and climate values. Since nearly all of the organisations perceive economy as one of the biggest barriers, but at the same time, many also suggest that, most property-owners would go for the more sustainable option if they had the right financial incentives to do so. The question remains whether there are more information about profitable measures or rather more subsidies that would flip the coin. One of the most prominent drivers according to Hrovatin and Zoric (2018) with others is governmental funding and subsidies to overcoming the financial barriers. However, governmental subsidies may both hinder and drive development, according to Tholander et al. (2020) too small subsidies would only benefit the ones that are already really interested or as the respondent from Cleantech would say “already saved”. On the other hand, subsidies that are too high generates a risk that companies and appliers would not invest enough time of appreciation generating a reduced cost-effectiveness of the program. Therefore, it is important to find a level that triggers the target-group to want to invest both money and time, and to learn more and implement the right measures. This is an aspect, which always should be considered while creating new energy-programs and projects containing subsided towards the target-group. Tohlander et al. (2020) does however state that the combined actions of subsides as well as information campaigns in general generates a desirable outcome where projects can create the right conditions in terms of actual implementation of desired measures. Reducing the investment costs for the broad mass through subsides may however in the long run be resourceful, according to Clancy et al. (2016) companies that have undergone an energy-saving measures in the previous ten years are much more likely to investigate options for more technological and behaviouristic energy-saving measures.

7.6.1.3 Imperfect information and split incentives The term “imperfect information” was not mentioned during the dialog-meetings, except by the respondent representing the LiU – University. The term would not be considered common tongue, rather so academic language. Based on the theory of barriers and drivers it is however, a common term used to describe a number of aspects. Imperfect information includes (among other) split incentives and adverse selection which is described and elaborated based on the dialog-meetings bellow. A respondent representing Norrevo stated the following: There is a resource and lack of knowledge about the issues. We know what we want and can do, but there is a shortage in implementation, which is partly due to a lack of staff but above all a lack of the right knowledge among operating staff. This situation could be referred to as “adverse selection” which occurs in a situation where decision-makers or operating staff as in this case have too little information on what measures or investments to do, generating bad decisions or investments, which in the long run, could create markets where bad/worse products thrive on the expense of better products. This barrier is thereby closely linked with the barrier of lack of knowledge or as in the following case lack of holistic thinking. The barrier can also be linked to lack of access or rather overwhelming logistics, according to Yeatts et al. (2016) logistics issues within larger companies can constraining the feasibility of implementation, where coordination of multiple actors/people or buildings becomes an overwhelming logistical challenge. It may therefore be important to centre coordination and mandate of efforts in the hand of a few within organisations and creating clearly specified contracts to external contractors as well as the operating staff. A respondent representing E.on raised another example of a situation of adverse selection from the dialog-meetings, stating: It is very important to review purchased energy versus added energy, I think the role of district heating is extremely important and needs to be strengthened from a holistic perspective. It is about recycled energy, it is a fantastic resource that creates both electricity, heat and environmental benefits. District heating takes care of unwanted waste and creates something fantastic out of it. In the residential market, district heating is not competitive in the same way as in apartment buildings. But we also see a trend that more apartment buildings are installing heat pumps, which in the long run makes district heating even less competitive. However, the free choice is of course important but with electricity becoming an energy carrier with higher and higher value, not least due to occasional power shortages especially during winter, it is of course important to use the right type of energy for the right type of job. The barrier of split incentives has already partly been described in this thesis, it was however raised by a few respondents during the dialog-meetings. A respondent representing the Industry Association of Property-owners elaborated on the subject, saying: The incentives must be with the right actor for something to happen. The person who has control over the efforts also needs the incentives to take the measure. One cannot only blame the property-owners for the consumption of energy; it's all about tenants' behaviour! But with

35 the new regulations regarding individual measurement (IMD), the incentives can hopefully shift between landlord and tenant. Just like the barrier of economy, regarding incentives, or lack of incentives for property- owners to invest in energy-efficiency measures, it is likewise important that the incentives are not split between tenants and property-owners. This is according to a few respondents an issue, hindering development of properties. Whether the new regulations on individual measurement (IMD) in apartments will amend these incentives remains to be seen, if not additional regional measures and actions could be necessary. Behavioural aspects are important to take into account when it comes to energy efficiency in buildings, as it is often a cost-effective way to reduce energy use but can also hinder the development. Property owners for apartment buildings currently have to take responsibility for their residents' energy use, which can give a skewed picture of where efforts are needed. To work with behaviour change and nudging therefore becomes an important aspect, not least since we in Sweden generally see energy as an unlimited resource. In the context Nair et al. (2017) also states that the low energy costs in Sweden generates a perceived lack of incentives for implementation of energy efficiency measures. There is however great potential in behaviouristic influence to save more energy. An example could be to visualize energy use on screens to increase awareness of how energy is used by those who live or work in the building. 7.6.2 Drivers for development As described the perceived drivers for development within the area was also assessed during the dialog-meetings. The question regarding driving forces for development given to the respondents was: From your perspective and your contexts, what do you see as the biggest driving forces for development in Östergötland within the Construction and real estate sector?

Precieved drivers

Dissemination of information Exchange of experience Other added value Fiery souls within the organization Management support Climate goals Financial incentives Importance Sustainability profiling Law & Regulations

0 1 2 3 4 5 6 7 8 9

Norrevo Cleantech Sweco Fastighetsägarna Tekniska Verken E.on LiU Stångåstaden Region Fastigheter Energi- och klimatrådgivarna

Figure 9. Results from dialog-meetings, previeved drivers. (Daniel Kvist) In some ways the questions asked regarding both barriers and drivers tangent each other, where answers given regarding barriers partly describe drivers as well. As shown in the figure

36 above most answers also reflect the answers given while discussing barriers, therefore some of the more prominent perceived drivers given by the respondents have already been assessed in the text above. Nonetheless, the driving forces for development that have not already been approached will be further assessed bellow. 7.6.2.1 Sustainability Profiling and Climate goals and Exchange of experience Sustainability profiling was raised by many respondents during the dialog-meetings while reflecting upon driving-forces for development, even though most respondents claimed that economic incentives would in general be higher ranked for property-owners. During the focus group with the municipal Energy and climate-advisors, the group was convinced that this area will be more and more important in the future, stating: The younger generation wants to live in more climate-smart houses. I feel that the next generation has much greater demands linked to energy and climate. And this creates incentives for property owners to be more climate-smart in order to then also be a more attractive landlord. According to Hrovatin and Zoric (2018) age is an important factor, older people due to shorter life-time horizon, health problems, diminishing capabilities and financial constraints are less likely to implement energy-saving renovations and measures in their homes. Other socio- economic characteristics such as income, education, environmental awareness and personal attitudes are other behaviouristic factors that determines whether energy-saving measures are considered or not. according to Yeatts et al. (2016) barriers like these can effectively be overcome through education, training programs, reference groups, networks and other communication channels. It is however important that discussions are open and easy transfer of information through broad channels whereas cultures can be influenced. The respondent, representing Sweco said similar things that the Energy- and climate advisors: There will be no jobs for property owners if they are not good at sustainability, no companies can live on without sustainability, it feels like it is business critical nowadays, so continue to push for sustainability profiling. There is also already a change of attitude where we all are expected to be sustainable, if you are not, you will go under. This is surely an area, that we have only seen the beginning of. Many larger companies have already redirected towards sustainability. Therefore, it may be important to increase information spreading and create networks and workshops where people within the field can exchange experiences regarding sustainability profiling. In Östergötland, there is already an existing network for property owners (ÖBKN) which will play a major role in facilitation of dissemination of information and exchange of experience to drive the sector forward. Yeatts et al. (2016) also mentions that social and professional networks can be particularly effective regarding changes in cultural and behaviour barriers. Within the network (ÖBKN) there is a lot of focus on another driver identified by many respondents, namely climate goals. The respondent from Sweco, which are one of the organisations driving the network ÖBKN, insisted that climate goals are an effective way of organisational change to push sustainability matters both for individual property owners and in society as whole, not least while connecting goals with related procurements. The respondent framed it like this:

The property owners' own climate goals are a huge driving force, these then falls into the procurements. Those organisations who have climate goals are involved in the procurement in a different way, and this creates a framework for how markets are forced to offer and deliver services and products that go in line with the purchaser’s climate goals in a cost- effective way In the network ÖBKN, all members are thereby urged to set up individual climate goals, regarding their properties and organisations. According to Nair et al. (2017) strategies within companies have shown to be important factors driving development. 7.6.2.2 Laws and regulations The Respondent from Sweco that during the dialog-meetings especially focused on drivers through procurement also elaborated on laws and regulations as a driver for development, saying: The new regulations regarding the climate declarations also becomes a driving force, the regulations affect the market very much. The customers will of course be forced to reach the goals, after which the builders must be able to build according to the goals. In this way, the legal requirements accelerate the change in attitude and then it becomes business critical to set sustainability goals. This becomes a spiral where changes in attitudes, regulations and goals from customers constantly create sharper conditions, which in the long run result in climate-neutral, profitable systems. What the respondent is saying that either by regulations or by free will, property-owners have the ability to accelerate the market and thereby the attitude and culture in society. When many property-owners come together in a network, where experiences can be shared and goals can be set, the spiral of sustainable development increases its speed. However, not all respondent viewed law and regulation as a driving force, some rather the opposite. The respondent from one of the real estate companies, Norrevo that was interviewed stated: Legal requirements work partly as a whip but also a barrier. Property-owners must do both energy declarations and energy audits and in the long run climate declaration, which takes a lot of resources and time, so there is not much time left for implementation work. The industry association for property owners also viewed increasing law and regulation as a barrier to development from their perspective, and said: Energy declarations, supervision, taxes, municipal special requirements and now also climate declarations, another set of rules! What do they really give? It feels like another burden that costs money for property-owners. It is no wonder that there are no resources and time for actual change. Law and national requirements are things not easily influenced on a regional level, for more slim organisations with little recourse it can be hard to keep up with everything. Therefore, it is important to facilitate these aspects not least through collaboration and dissemination of information. 8. Conclusions The aim of this thesis is to contribute on an interdisciplinary level with further knowledge on barriers and drivers for energy efficiency within the housing sector. In order to do so and find

38 somewhat scientific closure or prospect the thesis have firstly examined the pre-existing conditions which both enable and limits the development within the sector in Östergötland. Secondly, this thesis has examined and analysed perceived needs of areas of action and measures as well as the perceived barriers and drivers for development with in the area of research. In this chapter a conclusion of the most prominent and contributively results are assembled and discussed. Area of research 1: Pre-existing external conditions and policy that both limit and enable the development of energy- and climate efficient housing and premises in Östergötland. There are many pre-existing conditions setting the rules of development for energy- and climate efficient housing and premises in Östergötland. Östergötland is a diversified county, the housing conditions in Östergötland differ greatly between the municipalities and there are clear differences between larger and smaller municipalities regarding many aspects, including energy usage, demographics, type of housing and so on. In summary, there is no simple solution to the challenges. Different efforts are needed for different municipalities with different demographic and socio-economic conditions. Östergötland is divided between rural and larger urban areas and thus, the efforts required in larger cities are most likely not solutions to the challenge our smaller municipalities face and vice versa. There is no ‘one size fits all’ solution. As Nair et al. (2017) concludes different barriers and drivers depend on and apply for different ownership-categories, making the need for customized actions between municipalities as well as different ownership categories even more important. Through the interviews, the municipal energy- and climate advisors also raised the importance of local connections and local problem-solving and building trust for measures to happen in smaller municipalities. One could however, based on the results argue that some or most barriers do however stretch between all owner-categorise as well as socio-economic conditions, even though these aspects may point out certain groups who are less willing to implement measures. The analysis in this thesis gives a picture of where certain actions may be needed, for example, Linköping and Norrköping together use over 70 percent of Östergötland's total energy use. When including other municipalities with more than 20,000 inhabitants (Motala, Mjölby and Finspång), the combined energy use is over 85 percent of Östergötland's total energy use. Regarding household energy, 60 percent of Östergötland’s total household energy use is consumed in Linköping and Norrköping, whereupon the remaining eleven municipalities together use approximately 40 percent. The County Administrative Board estimates that there today is a lack of almost 10,000 homes in Östergötland, which is a hindering factor for regional and local development. Östergötland’s population is on top of that, estimated to grow by 7.1 percent between 2019 and 2030, generating a great need for new dwellings. Länsstyrelsen therefore estimates that 2125 new homes needs to be constructed each year in Östergötland to match the need and create balance in the housing market. Approximately 80 percent of this housing development will take place in Linköping and Norrköping. Actions regarding new construction within the area should be centred on Östergötland's larger cities. To meet the future needs of housing, more collaboration between municipalities, the region, the county administrative board and the business community is needed.

At the same time, many of Östergötland’s apartment buildings are in a so-called renovation debt. Only 15 percent of all the county's properties are less than 30 years old. Most of the properties in Östergötland were built during the 60s and 70s, but there are also very many properties that are beginning to approach 100 years old. Eighty percent of the total area that makes up the apartment buildings, in apartments built before 1980 is estimated to be need of renovation regardless of the decade the building was built. In relation to detached houses and premises, which in general also are in need of renovation, it is mainly apartment buildings that are falling behind. Only 5 percent of all of Sweden's energy-declared apartment buildings meet the National Board of Housing, Building and Planning's building regulations, requirements for energy class C or above. Which shows where the existing property stock is at, in relation to the buildings constructed today that are regulated to meet the requirements. The renovation rate of existing buildings in the EU according to Salvalai (2018) is around 1,2 percent each year meaning that with today’s pace it would take a century to upgrade the building stock to modern near-zero energy levels. This means that the renovation pace needs to be enhanced in order to fight climate change and reach target set on a national and regional level, in line with the Agenda 2030 goals. However, The Million Programme buildings are now going into their renovation cycles, which can accelerate the energy efficiency in the overall housing sector enormously if done correctly according to existing legislation. The government has also decided upon a new subsided for energy efficient renovation to further speed up the development. Furthermore, initiatives, activities and projects can increase the pace of efficiency potentiation, inspire and disseminate knowledge and build competence to facilitate energy efficiency measures for property owners of both small and large homes and premises. Many different laws and regulations provided the framework for what construction processes and changes to properties should look like. New buildings need to meet the National Board of Housing, Building and planning building regulations, generating that newly built buildings maintain a very high energy performance. While constructing new buildings the climate impact is however very high. All new buildings from the 1st of January 2022 will however need a climate declaration; this is a new regulation that aims to reduce the climate impact of the construction of buildings by making it visible. Construction and real estate sector do however not only have a high direct climate impact it also generates a total of around 10 million tonnes of construction and demolition waste per year. There is a lack of general guidelines and methods for how materials of various kinds can circulate. Material inventories of buildings prior to demolition need to be improved so that materials and products for reuse can be identified, waste can be recycled, and hazardous waste can be taken care of in an environmentally acceptable way. The challenges are however, linked to both behavioural barriers and market aspect where guidelines for circular economy and use of recycled material needs to be structured. One can, based on this thesis conclude that energy and climate development in the real estate sector is a slow process that takes time. Regardless the measure or action nothing changes overnight. Policy actions should however in different ways aim to speed up this development and facilitate for decision makers.

Area of research 2: Perceived needs of areas of actions and measures for more energy and climate effective housing and premises in Östergötland from organisations working within the area. During the interviews, the respondents were asked to prioritize between the eight different areas of focus identified in the regional energy and climate strategy. In the dialog-meetings, the areas were weighed against each other, and the following five areas of action were deemed prioritized by the respondents: • Increase the rate of energy efficiency in existing buildings. • Increase digitisation for energy efficiency and power optimization of buildings. • Increase energy and resource efficiency when renovating existing buildings. • Increase energy and resource efficiency in new construction. • Accelerate the pace of expansion of renewable energy production on buildings.

These areas were deemed prioritised by at least five or more different responding organisations, the most urgent areas of focus according to the respondents were “Increase the rate of energy efficiency in existing buildings” and “Increase energy and resource efficiency when renovating existing buildings”. The evaluations by the organisations indicate where future measures and action should take place within the sector. The results does also reflect the literature and results from the pre-existing conditions in this thesis.

Area of research 3: Perceived barriers and drivers regarding energy- and climate efficiency from organisations working within the area of housing and premises in Östergötland. Evaluating barriers and drivers have shown to be an effective way of creating an empirical basis of perceived needs and measures regarding Östergötland continuous development within the field. The respondents in the dialog-meetings gave many different answers, some that go against each other. In the big picture however, the main barriers and drivers were clarified with a high level of consensus between the respondents through-out the different dialog- meetings. One of the more prominent perceived barriers identified by the respondents were “lack of knowledge”. The barrier was raised by nearly all respondents, often in combination with other barriers, like the barrier of economy and lack of capital, or holistic thinking and slim organisations. There are however different levels of the barrier; lack of knowledge, firstly and probably most important is the ‘lack of understanding of the choice’ as the respondent from Cleantech Östergötland referred to it, or as Yeatts et al. (2016) calls I the ‘lack of knowledge of advantage’. Accordingly with what Clancy et al. (2016) suggests, if decision-makers do not take this first step and investigate the different options available or understand the value with it, no measures will be implemented. According to Yeatts et al. (2016) culture and socioeconomic factors can reduce the appeal of efficient technology. Therefore, it is important to raise the minimum level, generating more decision-makers understanding their choice to act and understanding the advantage of energy measures. Secondly, the lack of awareness of cost-efficient measures. This barrier can be effectively reduced by information campaigns. If the barrier of knowledge of choice is overcome, the next step for decision-makers would naturally be to investigate different options available,

41 provided other circumstances are right. This investigation process can however be a hassle, where public support systems should play an important role to facilitate this step. Thirdly, the lack of awareness of how to obtain and use energy technology. Many can have an understanding of the issue but have no idea of how to pull their weight. More information concrete information on how to obtain and operate energy technology thereby needs to be disseminated through various campaigns. If the knowledge barrier is overcome, there are however still many other barriers for implementation such as, lack of time and competence, lack of capital, low energy costs and so on. Raising knowledge in general and within concrete areas, such as profitable measures should thereby, in different ways be applied in Östergötland through different actions. A few of the identified barriers given by the respondents are in many ways hard to effect on a regional level. Laws and regulations for example are things that both limits and drive the development but are hard to affect. In this area, it is therefore also important to raise awareness of and disseminate information making it easier for property-owners to apply measures according to law, not least since there are many new regulations in progress. Some of the identified barriers tangent the identified drivers and vice versa. One can for example see that many respondents identified “exchange of experience” as a driving force for development, a driver that could be an effective way of decreasing the barrier of lack of knowledge for property-owners especially in the bigger cities with many actors with similar issues. In Östergötland the network ÖBKN is already operating and can continuously play an important role to enhance the development through exchange of experience. Largely the perceived barriers and drivers from the dialog-meetings also go in line with the compiled results of pre-existing conditions as well as previous research conducted in the field. The respondents from the organisations can with other words be considered well updated on the matter as whole and not least regarding law and regulations. Nonetheless, the pre-existing conditions and the interviews complement each other in a satisfactory way, in some areas more than others. Contributions to the literature and suggestions for future research This thesis sought to understand and identify perceived barriers and drivers within the housing sector in Östergötland. By deeper understanding of the pre-existing conditions and the perceived barriers and drivers provided through this thesis, the text contributes to the existing literature with extended knowledge. Many of the findings through previous research match well with the problems in Östergötland, meaning that most barriers can be found more or less anywhere. However, barriers and the weight of the different barriers can depend on location and owner-category as well as culture and socio-economic factors. This means that policy and design of drivers also have to be customized accordingly with the different target groups. This case-study, through intensive study has begun to identify differences within Östergötland, pointing out the direction for future studies and for future policy and action plans. To deeper, understand what barriers and drivers that affect the housing sector one would have to conduct studies on a more local level. This thesis examined Östergötland on a regional level in accordance to the regional energy and climate strategy, to find that Östergötland is a very diversified region. This means that no or very few policy implementations can affect the

42 whole region in the same manner. Therefore, locally applied measures and projects may be of great importance to reach different target groups from different owner-categories. One can also learn from this thesis that the areas of action given to the respondents were way to many. The thesis would most likely gotten a less general result with a slimmer approach, examining one or a few areas of focus instead. The results from such a study would have probably generated more specific barriers and drivers as well as a deeper understanding of the pre-existing conditions. It would also most likely generated barriers and drivers, which would explain the conditions for implementation or the lack of it within broader areas. Not least since barriers and drivers based on this study seem more connected with specific target groups and local conditions rather than specific focus areas.

References: The National Board of Housing, Building and Planning (Boverket): Boverket (2012). Vision för Sverige 2025. https://www.boverket.se/sv/om-boverket/publicerat-av-boverket/publikationer/2012/sverige-2025/ (Hämtad 2020-11-12) Boverket (2015) Förslag till svensk tillämpning av nära-nollenergibyggnader. https://www.boverket.se/globalassets/publikationer/dokument/2015/forslag-till-svensk-tillampning-av- nara-nollenergibyggnader-2.pdf (Hämtad 2021-01-29) Boverket (2018A). Byggregler. https://www.boverket.se/sv/byggande/bygga-nytt-om-eller- till/byggregler/ Hämtad 2020-02-15 Boverket (2018B). Boverkets byggregler (2011:6) – föreskrifter och allmänna råd, BBR Kapitel 9. https://www.boverket.se/contentassets/a9a584aa0e564c8998d079d752f6b76d/konsoliderad_bbr_ 2011-6.pdf (Hämtad 2020-02-14) Boverket (2019). Byggprocessen. https://www.boverket.se/sv/PBL-kunskapsbanken/lov-- byggande/byggprocessen/ Hämtad 2020-02-14 Boverket (2020A) Utveckling av regler om klimatdeklaration av byggnader. https://www.boverket.se/globalassets/publikationer/dokument/2020/utveckling-av-regler-om- klimatdeklaration-av-byggnader.pdf (Hämtad 2021-02-20) Boverket (2020B) Boverkets byggregler (2011:6) – föreskrifter och allmänna råd, BBR. https://www.boverket.se/contentassets/a9a584aa0e564c8998d079d752f6b76d/konsoliderad_bbr_2011- 6.pdf (Hämtad 2021-02-20) Boverket (2021) Utsläpp av växthusgaser från bygg- och fastighetssektorn. https://www.boverket.se/sv/byggande/hallbart-byggande-och-forvaltning/miljoindikatorer---aktuell- status/vaxthusgaser/ (Hämtad 2021-02-20)

The Government (Regering): Regeringen (2017) Hållbara städer och samhällen. https://www.regeringen.se/regeringens-politik/globala-malen-och-agenda-2030/hallbara-stader-och- samhallen/ (Hämtad 2021-01-18) Regeringen (2019) Sveriges tredje nationella strategi för energieffektiviserande renovering. Infrastrukturdepartementet. https://www.regeringen.se/495d4b/contentassets/b6499271ac374526b9aa6f5e944b0472/sveriges- tredje-nationella-strategi-for-energieffektiviserande-renovering.pdf (Hämtad 2021-02-05) Regeringen (2020A) Regeringen tillför medel till stöd för energieffektivisering och renovering av flerbostadshus. https://www.regeringen.se/artiklar/2020/09/regeringen-tillfor-medel-till-stod-for- energieffektivisering-och-renovering-av-flerbostadshus/ (Hämtad 2021-02-22) Regeringen (2020B) Cirkulär ekonomi – strategi för omställningen i Sverige. https://www.regeringen.se/4a3baa/contentassets/619d1bb3588446deb6dac198f2fe4120/200814_ce_w ebb.pdf (Hämtad 2021-02-28) Regeringen (2020C) Nytt skatteavdrag nästa år för privatpersoner som gör gröna investeringar. https://www.regeringen.se/pressmeddelanden/2020/09/nytt-skatteavdrag-nasta-ar-for-privatpersoner- som-gor-grona-investeringar/ (Hämtad 2021-01-28)

Regeringen (2020D) Utökad befrielse från energiskatt för egenproducerad el. https://www.regeringen.se/artiklar/2020/11/utokad-befrielse-fran-energiskatt-for-egenproducerad-el/ (Hämtad 2021-01-28) The county administrative board (Länsstyrelsen): LEKS (2017) Länsstyrelsernas Energi- och klimatsamordning, Energistatistik, Östergötland. https://www.leks.se/energistatistik/ (Hämtad 2021-02-06) Länsstyrelsen (2019A) Energi- och klimatstrategi för Östergötland 2019-2023. https://www.lansstyrelsen.se/download/18.1e9f682716e44cbf6f56729d/1574331657702/Energi- %20och%20klimatstrategi%20f%C3%B6r%20%C3%96sterg%C3%B6tland%202019%20-2023.pdf (Hämtad 2021-01-19) Länsstyrelsen Östergötland (2019B) Regionala bostadsmarknad för Östergötland 2019. https://www.lansstyrelsen.se/download/18.35db062616a5352a22a27415/1561033792117/BMA%2020 19%20ostergotland.pdf (Hämtad 2021-02-10) Länsstyrelsen Östergötland (2019C). Avfallsförebyggande i energi- och klimatomställningen. https://www.lansstyrelsen.se/download/18.76a933d51764c7d8bed525e/1608209514682/Avfallsf%C3 %B6rebyggande%20i%20energi-%20och%20klimatomst%C3%A4llningen.pdf (Hämtad 2021-02-27) Länsstyrelsen (2021) Klimatinvesteringsstöd. https://www.lansstyrelsen.se/ostergotland/miljo-och- vatten/energi-och-klimat/klimatinvesteringsstod.html (Hämtad 2021-01-29)

UN & Global goals: UN Environment (2017) Global status report. https://www.worldgbc.org/sites/default/files/UNEP%20188_GABC_en%20%28web%29.pdf (Hämtad 2021-01-15) Globala Målen (2020A). Mål 7: Hållbar energi för alla. https://www.globalamalen.se/om-globala-malen/mal-7-hallbar-energi-alla/ (Hämtad 2021-01-16) Globala Målen (2020B). Mål 11: Hållbara städer och samhällen. https://www.globalamalen.se/om-globala-malen/mal-11-hallbara-stader-och-samhallen/ (Hämtad 2021-01-16) Globala målen (2020C). Mål 13: Bekämpa klimatförändringarna. https://www.globalamalen.se/om-globala-malen/mal-13-bekampa-klimatforandringarna/ (Hämtad 2021-01-18) The Swedish Environmental Protection Agency (Naturvårdsverket): Naturvårdsverket (2018) Att göra mer med mindre, Nationell avfallsplan och avfallsförebyggande program 2018-2023. http://www.naturvardsverket.se/Documents/publikationer6400/978-91-620-6857- 8.pdf?pid=23951 (Hämtad 2021-02-26) Naturvårdsverket (2020A). Bygg- och fastighetssektorns klimatpåverkan. https://www.naturvardsverket.se/Sa-mar-miljon/Klimat-och-luft/Klimat/Tre-satt-att-berakna- klimatpaverkande-utslapp/Bygg--och-fastighetssektorns-klimatpaverkan/ (Hämtad 2021-01-12) Naturvårdsverket (2020B) https://naturvardsverket.se/Sa-mar-miljon/Statistik-A-O/vaxthusgaser- utslapp-fran-industrin/ (Hämtad 2021-02-05)

Naturvårdsverket (2020C) Energihushållning, vägledning om energihushållning. https://www.naturvardsverket.se/Stod-i-miljoarbetet/Vagledningar/Energihushallning/ (Hämtad 2021- 02-08) Central Bureau of Statistics (SCB): SCB (2020A) Byggnadsår befintliga fastigheter i Östergötland. https://www.statistikdatabasen.scb.se/pxweb/sv/ssd/START__BO__BO0104__BO0104D/BO0104T02 /table/tableViewLayout1/ (Hämtad 2021-02-23) SCB (2020B). Sveriges framtida befolkning 2020-2030 – Län och kommungrupper. Sveriges Officiella Statistik. https://www.scb.se/contentassets/bcda4f8050ab4bd496c7e12196bcb623/be0401_2020i30_sm_be18sm 2002.pdf (Hämtad 2021-01-24) Other reports and surveys: Cleantech Östergötland (2020) Östergötland bygger klimatneutralt, Färdplan. http://cleantechostergotland.se/wp/custom/uploads/2020/10/Färdplan_ÖBKN_Original.pdf (Hämtad 2021-02-04) Fossilfritt Sverige (2018) Färdplan för fossilfri konkurrenskraft, Bygg och anläggningssektorn. https://fossilfrittsverige.se/wp-content/uploads/2020/10/ffs_bygg_anlaggningssektorn.pdf (Hämtad 2021-01-18) Sveriges Byggindustrier (2018) Minskad klimatpåverkan från nybyggda flerbostadshus. https://www.ivl.se/download/18.72aeb1b0166c003cd0d1d5/1542035270063/C350.pdf (Hämtad 2021- 03-02) SWECO (2019). Sveriges nya geografi 2019. https://www.sweco.se/siteassets/vart- erbjudande/verksamhetsomrade/samhallsanalys/sverigesnyageografi2019.pdf (Hämtad 2021-01-27) Triplef (2019) Fossilfri bygglogistik – En förstudie. http://triplef.lindholmen.se/sites/default/files/content/resource/files/fossilfri_bygglogistik_- _en_forstudie_0.pdf (Hämtad 2021-02-07) Other articles and information: Ekonomifakta (2020). Elproduktion med fossila bränslen – internationellt. https://www.ekonomifakta.se/fakta/energi/energibalans-internationellt/elproduktion-med-fossila- branslen/ (Hämtad 2021-01-16) Energikontoren Sverige (2019) Inspirerande dag för byggbranschens utmaningar. https://www.energikontorensverige.se/2019/05/07/inspirerande-dag-for-byggbranschens-utmaningar/ (Hämtad 2021-03-22) Europaparlamentet (2012) Europaparlamentets och rådets direktiv 2012/27/EU av den 25 oktober 2012 om energieffektivitet, om ändring av direktiven 2009/125/EG och 2010/30/EU och om upphävande av direktiven 2004/8/EG och 2006/32/EG. https://eur-lex.europa.eu/legal- content/SV/TXT/PDF/?uri=CELEX:32012L0027&from=FI (Hämtad 2021-03-02) Interreg Europe (2020) Optiwamag. https://www.interregeurope.eu/optiwamag/ (Hämtad 2021-02-27)

Previous research

Clancy, Curtis and O’Gallachóir (2017) What are the factors that discourage companies in the Irish commercial sector from investigating energy saving options? https://www.sciencedirect.com/science/article/abs/pii/S037877881731486X (Collected 2021-04-05) Hrovatin and Zoric (2018) Determinants of energy-efficient home retrofits in Slovenia: The role of information sources. https://www.sciencedirect.com/science/article/abs/pii/S0378778818327373 (Collected 2021-04-05) Nair, Azizi and Olofsson (2017) A management perspective on energy efficient renovations in Swedish multi-family buildings. https://www.sciencedirect.com/science/article/pii/S1876610217348464 (Collected 2021-04-05) Sesana and Salvalai (2018) A review on Building Renovation Passport: Potentialities and barriers on current initiatives. https://www.sciencedirect.com/science/article/abs/pii/S0378778818302937 (Collected 2021-04-05) Yeatts, Auden, Cooksey and Chen (2017) A systematic review of strategies for overcoming the barriers to energy-efficient technologies in buildings. https://www.sciencedirect.com/science/article/abs/pii/S2214629617300798 (Collected 2021-04-05) Printed sources: Adolfsson och Boberg (2019) Detalplanehandboken, Tredje upplagan. Norstedts Juridik, Karnov Group Bryman, A. (2018). Samhällsvetenskapliga metoder. (tredje upplagan). Stockholm: Liber. David, M. & Sutton, C.D. (2016). Samhällsvetenskaplig metod. (1. uppl.) Lund: Studentlitteratur. Flyvbjerg, B. (2006). Five misunderstandings about case-study research. Qualitative Inquiry, 12(2), 219-245.

Kvale, S. & Brinkmann, S. (2009). Den kvalitativa forskningsintervjun. Lund: Studentlitteratur. May, Tim (2001). Samhällsvetenskaplig forskning. Lund: Studentlitteratur

Thollander, P., Karlsson, M., Rohdin, P., Wollin, J. & Rosenqvist, J. (2020). Introduction to industrial energy efficiency: energy auditing, energy management, and policy issues. London: Academic Press. Hirst and Brown

APPENDIX 1 Ongoing Projects and Initiatives in Östergötland

Energikontor i samverkan för smartare energianvändning (Energy Offices in Collaboration for Smarter Energy Use), Energikontoret Östergötland (The Energy Office Östergötland)

The project aims to implement energy efficiency and energy optimisation measures in apartment buildings and offer network support. The project also runs an energy network for tenant-owner associations in Östergötland and has various project modules for digitisation, power optimisation, charging infrastructure connected to properties. There are also resources for knowledge-raising initiatives, as well as financial support for energy audits for apartment buildings.

Resurseffektiva och framtidssäkrade byggnader i ÖMS, Energikontoret Östergötland (Resource-efficient and Future-proof Buildings in ÖMS, The Energy Office Östergötland)

The project aims to get more decision-makers to make their properties more energy efficient. The project is currently in the start-up phase, and started on the 1st of January 2021 in Östergötland. The project includes network-driving activities aimed at public housing as well as privately owned real estate companies with apartment buildings. The project provides opportunities for dissemination of knowledge and opportunities for increased development of Östergötland’s real estate network: ÖBKN. The project also includes activities that aim to drive the development and implementation of services and products for buildings, linked to digital tools, and help property owners adopt new technology and new successful development processes.

Östergötland Bygger Klimat-Neutralt (ÖBKN) (Östergötland Builds Climate-Neutral (ÖBKN))

The network was launched on 10 September 2020 and already consists of a number of prominent players in the construction, consulting and real estate industry in Östergötland. The network has the ambition that more actors will join the network and the roadmap developed by its members. The overall goal that ÖBKN is working towards is a halved climate impact for the entire construction and property sectors value chain in 2030 and a climate-neutral value chain in the construction and real estate sector by 2045. Based on that goal, the network has developed a roadmap that addresses the following focus areas:

Under each focus area, several sub-activities describe more in depth measures and initiatives for the various focus areas. The network is a meeting place where knowledge and skills can be cultivated and shared.

Framtiden solel i Östra-Mellansverige fas 2 (The Future Solar Energy in East-Central Sweden Phase 2), Energikontoret Östergötland

The project is primarily aimed at increasing the rate of investment in solar within the target group of businesses. The project also has a module that covers the "building's energy system", which includes efforts on digitisation, control and optimisation of buildings. The project also has opportunities to support municipalities with the development of strategies and action plans. This project also provides consultant checks in various sizes that companies can apply for to evaluate the possibilities of implementing innovative energy technology.

Hållbar Region - samverkan för en konkurrensstark och koldioxidsnål region, LiU (Sustainable Region - Collaboration for a Competitive and Low-carbon Region, LiU)

The overall goal of the project is to show how increased collaboration between energy companies and real estate companies can accelerate development of becoming a sustainable region. The primary target group for the project is the business community, real estate companies and energy companies. Secondary target groups are politicians, researchers and authorities.

Energiprestandans påverkan på fastighetspriset, LiU (The Impact of Energy Performance on Property Prices, LiU)

The project aims to develop new knowledge about how the energy performance of buildings affects property prices. The project intends to use statistical methods to address research questions about what the driving forces are for prices in the property market, what role energy performance measures play for property prices, how energy performance affects property prices, and how energy performance measures should be done to have a positive effect on the building's energy efficiency. The project has also compiled knowledge about how profitable renovations can be defined and interpreted.

Digitaliseringsramverk för energioptimering och smart underhåll av historiska bygg (Digitisation Framework for Energy Optimisation and Smart Maintenance of Historic Buildings), LiU

The project aims to develop a cloud-based digitisation framework for energy optimization and maintenance planning of historic buildings. Within the project, digital twins corresponding to three selected historic buildings in Norrköping are created. The project is expected to provide a deeper understanding of how digital operating of historic buildings and make it possible to automatically control building energy usage.

Testbädd Ebbepark (Test bed Ebbepark) (Cleantech Östergötland – Sankt Kors Fastighet AB)

Ebbepark is a sustainable district in Linköping with space for housing, business and city life. The area will challenge the way we densify our cities. The project is a research and development project, primarily reviewing community building and sustainable urban development. The initiative aims to increase the opportunities to learn from each other and thus create more sustainable cities and communities.

Samordning av den fysiska planeringen i Östergötland (Coordination of Spatial Planning in Östergötland) (All Östergötland municipalities, coordinated by Region Östergötland)

Region Östergötland coordinates the spatial planning in Östergötland by regularly gathering the Östergötland municipalities for consultation, exchange of experience and dialogue. Region Östergötland also produces planning documents that support the municipalities in their planning work in order to facilitate their work by highlighting regional aspects in their planning work.

Nätverk för energi- och klimatstrategiskt arbete (Network for energy and climate strategic work) (All Östergötland municipalities, coordinated by Länsstyrelsen Östergötland (the County Administrative Board of Östergötland))

The purpose of the network is to promote and strengthen collaboration between Östergötland municipalities, the region and Länsstyrelsen (The County Administrative Board) on energy and climate strategic measures. By creating a common picture of Östergötland's challenges in the energy and climate strategic area, a strengthened local and regional capacity is created for strategic work where people collaborate and steer visions in a common direction. The network's goal is to, by increasing capacity, create new structures for multi- level governance at local and regional level in the area of energy, environment and climate, and to develop structure for implementing national and regional strategies at the municipal level. Another objective of the network is to identify and apply for funding for collaborative projects in energy and climate strategic focus areas.

Kommunala energi- och klimatrådgivningen (Municipal Energy and Climate Consulting) (All Östergötland’s municipalities, coordinated by Energikontoret Östergötland (the Energy Office))

The Energy and climate advisors help individuals, companies, tenant-owner associations, private apartment owners and associations and organizations to become more energy-smart and to get a locally adapted overview of which different alternatives are best for them. The energy and climate advisors can help with advice on how to reduce energy use, switch to or increase the share of renewable energy, reduce energy costs and reduce the environmental impact. The advisors can provide an overview of different energy alternatives and they are well acquainted with the local conditions for each municipality. The advice is a free of charge and

49 a commercially independent service that is coordinated by Energikontoret (The Energy Office) and financed by Energimyndigheten (The Swedish Energy Agency).

APPENDIX 2 – Questionaire

Dialogmöte

Utgångspunkten för dessa dialogmöten ligger i drivkrafter och barriärer.

1. Vad brinner du för inom insatsområdet? Vad anser du vara viktigast inom insatsområdet?

2. Vart anser du att fokus bör ligga i handlingsplanen i förhållande till nyckelinsatserna? (behov/prioriteringar)

Åtgärdsområden (konkretiserade nyckelinsatser):

1. Öka på energieffektiviseringstakten i befintliga byggnader

2. Öka på digitaliseringen för energieffektiviseringen och effektoptimeringen av byggnader.

3. Öka på energi och resurseffektiviteten vid renovering av befintliga byggnader

4. Stärka samordning och energiutbyte mellan byggnader i energisystemet

5. Öka på energi och resurseffektiviteten vid nybyggnation

6. Öka kunskapen om hur lågvärdig, alternativt lågtempererad, energi kan delas.

7. Accelerera utbyggnadstakten av förnybar energiproduktion på byggnader

8. Arbeta för att stärka och utveckla energitillsyn på byggnader.

Ökad samverkan - Här finns det inget kvantitativt - det kanske går att lägga dessa på en mer övergripande nivå Stärka kopplingen mellan akademi och aktörer inom bygg- och fastighetsbranschen. Arbeta för att stärka och utveckla energitillsyn på byggnader. (Ökad samverkan?) klimatdeklarationer Utveckla och marknadsföra kommunal energi- och klimatrådgivning

3. Utifrån ditt perspektiv och dina sammanhang vad ser du för största drivkrafter till omställningen i Östergötland inom Bygg och fastighetssektorn?

4. Utifrån ditt perspektiv och dina sammanhang vad ser du för största hinder/barriärer mot omställning i Östergötland inom bygg och fastighetssektorn?

5. Vilka aktiviteter projekt driver du? Vilka pågående aktiviteter, samt redan planerade åtgärder har ni?

. Vad är målet/målen?

. Vilka är utmaningarna? – Vad uppfattar du som lätt?

6. Vilka samverkar/nätverkar du med? Är du/ni med i något/några nätverk som kan vara relevanta att sprida information om handlingsplanen via, samt bjuda in till event m.m.?

. Vilken samverkan saknar du?

- Goda exempel? (regionala eller nationella som du inspireras av)

7. Framtiden? Ser ni några behov av nya insatser/ aktiviteter / projekt för att fylla ”glapp” mellan nuläge och mål? ( för denna behövs ju en kort introduktion till insatsområdet och dess förutsättningar)

8. Önskemål på min roll? Vet du/ni om några betydande program, strategier och planer för området som det är bra att vi tar hänsyn till i handlingsplanen för insatsområdet.

Tips på vidare kontakter att ta?

APPENDIX 3 (Compilation Climate Declarations)

Climate Declarations

When constructing a new building, the climate impact of a building must be reported in a climate declaration according to a new proposal from the government. The law will apply from 1 January 2022, The Climate Declaration aims to reduce the climate impact of the construction of buildings by making it visible. The requirement for a climate declaration will only be applied to the construction of a new building and not to the conversion, extension, alteration or relocation of an existing building (Boverket 2020A).

Builders will be responsible for preparing climate declarations when constructing a new building and then submitting these to Boverket (the National Board of Housing, Building and Planning). Climate declaration will be needed to get a final notice - without a climate declaration, the builder cannot get approval from the building committee. Boverket (The National Board of Housing, Building and Planning) is tasked with developing and managing a climate database, producing information and guidance and producing regulations for the forthcoming Act 2022. The parts of a building's life cycle that will be included in the Climate Declaration are initially proposed to include climate impact during the construction phase according to the European standard EN15978, which includes the following:

• A1- raw material supply in the product phase • A2 - transport in the product phase • A3 – manufacturing in the product phase • A4 - transport in the construction production phase • A5 – the construction and installation process in the construction production phase

The idea is that the climate declaration will support actors who make decisions that affect climate emissions during the construction process, and it will improve the conditions for reduced climate impact during construction. In the long term, the climate declaration would also be able to be used to set minimum requirements for construction from a life cycle perspective (Boverket 2020A).

Figure 13. Timeline for climate declaration rules. (Boverket 2020A) According to the timeline above, you see how the idea is for the law on the climate declaration to be developed, where minimum requirements become increasingly stricter over time. By 2027, a number of other environmental aspects than the previously mentioned will also be covered, as shown in the table below. Boverket (The National Board of Housing, Building and Planning) also estimates that by 2027, digitalisation has come so far that the estimates and calculations can be carried out more simply and with higher precision than today. The additional modules to be declared in 2027 are planned to be as follows:

• B2 – Maintenance during operational stage • B4 – Yield during operational stage • B6 – Energy use during the operational stage • C1 – Demolition in the final stage • C2 - Transport in the final stage • C3 – Waste management in the final stage • C4 – Final handling in the final stage (Boverket 2020)

Table 3. Development of regulations regarding climate declarations. (Boverket 2020A. p. 42).

Already today, there are several eco-certifications and eco-labelling systems for buildings which are widely used in the context. Some of these already deal with the assessment and calculation of greenhouse gas emissions during the construction phase of a building, but all of these are currently voluntary. A mandatory system for climate declarations in 2022 will require that market-based calculation methods be developed now already. Standardisations of climate calculations and, to a certain extent, digitalisation will therefore be important elements for the law to be able to fulfil the correct function and motivate reduced climate impact. Fossilfritt Sverige’s (Fossil-free Sweden) national roadmap for the building and construction sector has undertaken to start carrying out life cycle-based climate calculations on all buildings being built as early as 2020. If the right conditions are created now already, through incentives such as these, the competence and models for standardisation appear to be coming to market before the law is put into use (Fossilfritt Sverige 2018).

APPENDIX 4 (Compilation building regulations)

Laws and Regulations

There are many different laws and regulations that provide a framework for what construction processes and changes to properties should look like. Our properties create our communities and in order to create sustainable communities, sustainable properties are required, and thereby long-term

52 and clear regulations are also required. Plan och bygglagen (The Planning and Building Act) is the Swedish law that regulates the planning of land, water and construction. But the law also has strong links to other legislation, where mainly the infrastructure legislation, the Environmental Code, the Cultural Environment Act and the National Board of Housing, Building and Planning's building regulations are what together create conditions for how community building is developed. Plan och bygglagen (The Planning and Building Act) and its connections to other legislation is a science in itself, but when exploiting land and / or changing physical aspects of buildings, being aware of these laws and regulations is of utmost importance. Furthermore, there are also Boverkets byggregler (BBR) (the National Board of Housing, Building and Planning's building regulations), which are further described below as related to the focus area. These ordinances together lay the foundations for how we in Östergötland can create a more energy and resource-efficient construction and housing sector, and in this way the efforts and measures in this thesis are anchored in the actual current conditions in the sector.

Plan och bygglagen (The Planning and Building Act) contains regulations that, among other things, require and regulate municipalities' planning of land and water use, these regulations require that all land within municipal boundaries must be master planned. The master plan broadly describes the planned development of the municipality's geographical area. In most cases, detailed planning is also required for the exploitation and development of land. The detailed plan then describes, among other things, physical building regulations, what impact buildings may have on the environment and regulations and guidelines regarding building permits (Adolfsson and Boberg 2019).

A lot of what is required in a detailed plan is also regulated by Miljöbalken (the Environmental Code). Miljöbalken states, among other things, that when a building is built or changed, one must assess whether the change will generate a significant environmental impact or not, and if so, an environmental impact assessment must also be carried out. The environmental impact statement must state both direct and indirect consequences of what the planned measure may entail. Regarding land development, the responsibility to comply with Miljöbalken and Plan och bygglagen always lies with the builder (Adolfsson and Boberg 2019).

Miljöbalken (The Environmental Code) also contains regulations on energy management, in order to limit energy use in general, but especially energy use of finite energy sources. It also sets rules for everyone who conducts business to manage energy and raw materials and to take advantage of opportunities for reuse and recycling. It also states that renewable energy sources must primarily be used (Naturvårdsverket 2020C).

Plan och bygglagen (The Planning and Building Act) and Plan och byggförordningen (the Planning and Building Ordinance) clarify the requirements regarding energy management and set restrictions on electricity and heat use. They state, among other things, that a building must have a very high energy performance, with particularly good properties for electricity management and also that buildings must be equipped with a climate screen, which must ensure good thermal insulation (Boverket 2020B).

Plan och bygglagen (The Planning and Building Act) aims to promote a societal development with equal and good social living conditions and a good and long-term sustainable living environment. However, as a developer, property owner or builder, there are a lot of administrative work to be knowledgeable about prior to construction processes. Generally, a building permit is required from the municipality for all changes to exterior attributes when renovating and changing properties. After a permit process has been granted, there are also a number of steps that must be carried out as part of the construction process:

• Start building notice – after planning permission has been granted, the builder must show that the PBL and associated regulation requirements are met before, before the start building notice can be granted. • Control plan – The builder must also draw up a control plan, which states what should be checked during the process to ensure that society’s requirements are met. • Control officers – certified control officers must be appointed. • Technical consultation – where the building work is planned and organised in consultation with the building committee. • Workplace visit – Byggnadsnämnden (The Building Board) visits the workplace. • Final consultation – final consultation on construction measures prior to final notice. • Final notice – in order to receive the final notice, the builder must show that all requirements, according to the permit, control plan, start notice, etc, are met and that Byggnadsnämnden (The Building Committee) sees no reason to intervene. In most cases, the Final Notice is a prerequisite for the building to start being used. (Boverket 2019)

Boverkets Byggregler (BBR) (The National Board of Housing, Building and Planning's Building Regulations)

All in all, there are a lot of aspects to keep track of as a builder, property owner or developer when renovating and / or constructing new buildings. Boverket’s (The National Board of Housing, Building and Planning) building regulations aim to further clarify these aspects and state which requirements a building must meet at a minimum. These requirements must also be kept during the life of the building, which means that there is a legal requirement of maintenance and renovations. All construction measures and alterations to buildings must comply with Boverket’s (the National Board of Housing, Building and Planning) building and construction rules. These rules concern accessibility adaptation, child safety, fire protection, load-bearing capacity, indoor environment and energy performance (Boverket 2018B).

In chapter 9 of Boverket’s (the National Board of Housing, Building and Planning) building regulations, a number of strict energy management requirements are addressed. The energy requirements are formulated as a limit for energy use in buildings in kilowatt hours of primary energy per square meter and year that must not be exceeded. Additionally, there are also "general advice" and more detailed requirements for a number of building technical aspects as in the table below. It is also important to point out that in Sweden there are different adjustment factors depending on geography linked to BBR, in Östergötland, however, all municipalities come under the same conditions, where there is no geographical adjustment factor. The directives also define a "near-zero energy building" as a building with a very high energy performance, and they further add that the energy to such a building should to a large extent be supplied from renewable energy sources, as well as from renewable energy sources that are produced on site or nearby (Boverket 2019).

The energy requirements placed on buildings in Boverket’s (the National Board of Housing, Building and Planning) building regulations look more complicated than they are. But some clarifications are required to understand the requirements in the table below, which can be found in Boverkets byggregler (2011:6), ), Energihushållning, avsnitt 9.2, tabell 9.2a (the National Board of Housing, Building and Planning's building regulations (2011: 6), Energy Management, section 9.2, table 9.2a). Below the table is a list of names and a more qualitative description / explanation.

Table 2. Processed data from Boverket’s (the National Board of Housing, Building and Planning) building regulations, energy requirements in Boverket's building regulations. (Boverket 2018B)

• Primary energy (EPpet) (kWh / m2 Atemp and year): The value that describes the building's energy performance expressed as primary energy. The primary energy rate consists of the building's energy use, where energy for

heating has been corrected by a geographical adjustment factor (Fgeo), multiplied by the weighting factor for energy carriers and distributed by Atemp (kWh / m2 and year). • Weighting factor for energy carrier (VFi): Electricity (VFel) 1.8, District heating (VFfjv) 0.7, District cooling (VFfjk) 0.6, Solid, liquid and gaseous biofuels (VFbio) 0.6, Fossil oil (VFolja) 1.8, Fossil gas (VFgas) 1.8 • Fgeo: Geographical adjustment factor, Östergötland has adjustment factor 1.0, ie no adjustment. • Atemp: The area of all storeys, attics and basements for temperature-regulating spaces, intended to be heated to more than 10 ºC, which is limited by the inside of the climate screen. Area occupied by interior walls, openings for stairs, shafts and the like are included. • Average heat transfer coefficient (Um): Calculated using a formula for building components and cold bridges (W / m2K) and is determined according to SS-EN ISO 13789: 2017 and SS 24230

• According to section 9:26: The building's climate screen must be so dense that the requirements of the building's primary energy rate and installed electrical power for heating are met.

There are also several additions linked to the table above, but as these are generally not relevant to the focus area, these are not included here. To see the complete table, refer to Boverkets byggregler (2011:6) – föreskrifter och allmänna råd, BBR, Konsoliderad version, sid. 138 (The Building Regulations (2011: 6) - regulations and general recommendations, BBR, Consolidated version, p. 138).

As shown in the table above, the BBR requirements differ depending on the type of building in question. Generally, Boverket’s (the National Board of Housing, Building and Planning) building regulations requirements can also be translated into the energy classes found for energy declarations, where the minimum requirement level for new construction corresponds to energy class C regardless of the type of building. The energy classes are based on the building regulations' requirements for energy performance and are divided as follows (EP = energy performance):

• A = EP is ≤ 50 percent of the requirement for a new building. • B = EP is > 50 - ≤ 75 percent of the requirement for a new building. Energy performance expressed as Climate screen average primary energy Installed electrical air leakage at 50 Pa (EPpet) [kWh / m2 power for heating Average heat transfer pressure difference (l / s Atemp and year] (kW) coefficient (Um) [W / m2 K] m2) Housing Detached house >130 According to section m2 Atemp 90 4,5 + 1,7 x (Fgeo – 1) 0,3 9:26 Detached house >90– According to section 130 m2 Atemp 95 4,5 + 1,7 x (Fgeo – 1) 0,3 9:26 Detached house >50– According to section 90 m2 Atemp 100 4,5 + 1,7 x (Fgeo – 1) 0,3 9:26 Detached house ≤50 m2 Atemp No requirement No requirement 0,33 0,6 According to section Apartment buildings 75 4,5 + 1,7 x (Fgeo – 1) 0,4 9:26 Premises According to section Premises 70 4,5 + 1,7 x (Fgeo – 1) 0,5 9:26 Premises ≤50 m2 Atemp No requirement No requirement 0,33 0,6 • C = EP is > 75 - ≤ 100 percent of the requirement for a new building. • D = EP is > 100 - ≤ 135 percent of the requirement for a new building. • E = EP is > 135 - ≤ 180 percent of the requirement for a new building. • F = EP is > 180 - ≤ 235 percent of the requirement for a new building. • G = EP is > 235 percent of the requirement for a new building. (Boverket 2020B).

Thus, the requirements differ depending on the type of building and form of heating (and geographical location, not Östergötland). Energy class C is the requirement for new buildings, energy class A has an energy performance that is half as high as the requirement levels and energy class G has an energy performance that is 235 percent higher than the requirement level, etc.

Returning to Sveriges tredje nationella strategi för energieffektiviserande renovering (Sweden's third national strategy for energy-efficient renovation), it is clear that in their survey of energy declarations, for example, only 5 percent of all of Sweden's energy-declared apartment buildings meet the BBR requirements for energy class C or above. Which shows where the existing property stock is located, in relation to the buildings that are being constructed today.

As previously mentioned, there are also other requirements and ordinances against new construction and alterations to buildings in BBR (the National Board of Housing, Building and Planning's building regulations) that are in line with the primary energy rate requirements described above. These requirements are further clarified in BBR, which also describe general guidelines, as listed below:

When constructing a new building, the following applies:

• 9:26 Climate Shell airtightness/seal The building's climate screen must be so airtight/sealed that the requirements for the building's primary energy rate and installed electrical power for heating are met. • 9:51 Heating and Cooling Installations Installations for heating and cooling in buildings must be designed so that they provide good efficiency during normal operation. The need for cooling must be minimized through construction and installation technical measures. • 9:52 Control and Regulation System The building must have control and regulation systems to be able to maintain good energy efficiency and thermal comfort according to section 6:42. Heating, cooling and air treatment installations shall be equipped with automatically operating control equipment so that the supply of heating and cooling is regulated according to power requirements in relation to the outdoor and indoor climate and the intended use of the building. • 9:6 Efficient Electricity Use Building technical installations that require electrical energy such as ventilation, permanently installed lighting, electric heaters, circulation pumps and motors must be designed so that the power requirement is limited, and the energy is used efficiently. • 9:7 Metering System for Energy Use The building's energy use must be continuously monitored through a metering system. It must be possible to read the metering system so that the building's energy use for the desired period of time can be calculated.

When altering a building, the following applies:

• 9:9 Energy Management Requirements when Altering a Building General Buildings must be designed so that energy use is limited by low heat losses, low cooling requirements, efficient heating and cooling use and efficient electricity use… Modification of buildings must not lead to a deterioration in energy efficiency, unless there are special reasons. However, energy efficiency may deteriorate if the building, after alteration, still meets the requirements in section 9: 2–9: 6. (BFS 2011: 26) • 9:92 Climate Screen

If, after an alteration, the building does not meet the requirements for primary energy rate as specified in section 9: 2, the following U-values shall be aimed for when the climate screen is altered. (BFS 2017: 5). Outlet 0.13, Uwall 0.18, Ufloor 0.15, Uwindow 1.2, Udorr 1.2. Uroof 0,13, • 9:93 Ventilation System Air treatment installations must be designed, insulated and sealed so that energy losses are limited. • 9:94 Heating and Cooling Installations The heating installation must be selected, designed, insulated, adjusted and tuned so that the other technical property requirements can be met in an energy-efficient way. (BFS 2011: 26). • 9:95 Efficient Electricity Use Installations that require electrical energy such as ventilation, permanently installed lighting, electric heaters, circulation pumps and motors must be designed so that the power requirement is limited, and the energy is used efficiently.

9:96 Metering System for Energy Use

The building's energy use must, if there are no special reasons, be continuously monitored through a metering system. The metering system must be readable so that the building's energy use for the desired time period can be calculated. (BFS 2011: 26). (Boverket 2020B)

All of the above requirements are thus based on the overall requirements for energy performance, which are simplified by energy class. By studying the building requirements from PBL to BBR (the National Board of Housing, Building and Planning's building regulations), we can once again see that newly built buildings in Sweden should maintain a very high standard and even if these only meet statutory requirements, they have an energy performance that is very good. To focus on energy efficiency at the regional level in work related to new buildings would therefore just be doing the same as what is already law, which for obvious reasons should be avoided.