Beyond Energy Savings: Accounting Multiple Benefits of Local Building Renovation

>>Katie Contos: – webinar, which is hosted
by the Clean Energy Solutions Center, in partnership with EmBuild Project. Today’s webinar is focused on Beyond Energy
Savings: Accounting Multiple Benefits of Local Building Renovation. Before we begin, I’ll quickly go over some
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and selected by technical experts. Today’s webinar agenda is centered around
the presentations from our guests panelists, Sebastian Botzler, Audrey Nugent, and Niko
Natek, who have joined us to discuss accounting for the multiple benefits of local
building renovation. Before we jump into the
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Mariangiola Fabbri from Buildings Performance Institute Europe will provide a quick
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this service to those in your networks and organizations. Today’s webinar will have a welcome and introduction
of Buildings Performance Institute Europe by Mariangiola Fabbri, who
is a senior project manager at BPIE. Now I’d like to provide a brief introduction
for today’s panelists. First up is Sebastian
Botzler, who is a PhD candidate at the Institute of Energy Efficient and Sustainable
Design and Building at Technical University of Munich. Following Sebastian, we’ll hear
from Audrey Nugent. Audrey is a senior policy advisor at World
Green Building Council. And our final speaker today is Niko Natek,
who is an energy consultant at KSSENA Energy Agency. And with those brief introductions, I’d like
to welcome Mariangiola to the webinar.>>Mariangiola Fabbri: Thank you very much,
Katie, and thank you all for participating. I hope you can see my screen. Please let me know if you don’t. I would just want to thank everyone for attending,
on behalf of the EmBuild Project, and I will just take five minutes of your time
to give you an overview of the EmBuild Project and what is its relationship with the topic
of multiple benefits. So the project started a couple of years ago,
and started, and while we were developing it,
and when we started it, we looked at a number of – at this picture, I would say. That’s the
effort and an overview of how member states, European member states, had developed
their renovation strategies, and how compliant they were in respect to the obligations that
the European Directive, the European Energy Efficiency Directive, put onto them to
develop the renovation strategy. So as we can see, the picture is not very
cheerful. It’s actually pretty – it was actually
pretty worrying. So the EmBuild Project really decided to focus
on how we could improve the level of compliance of – for
member states, and how we could help them deliver better renovation strategies, but
with a specific focus. The challenge for this project is that the
obligation that the European legislation puts, it’s
on national governments, but the implementation is actually delivered at different levels,
including regional and local level. And the local level is where EmBuild is actually
putting its attention. The objective of the project is really supporting
public authorities, and in particularly, local public authorities, in six European
companies: Romania, Bulgaria, Slovenia, Croatia, Serbia, and Germany, to prepare long
term renovation strategies and mobilize investment in the energy efficiency renovation
of the building stock. We do work directly with public authorities
in different towns and regions in order to generate a higher capacity in local governments
to design ambitious but realistic renovation strategies, and we focus in particular
on public buildings. The local renovation
strategies and the structure that we suggest the local authorities to follow actually reflects
the structure of the national renovation strategies, but we highlight three specific points
that are absolutely relevant in order to achieve the level of quality [inaudible] of these
renovations. First of all, we really support local authorities
in achieving deep renovations, and avoiding lock-in effects, so making sure that
it will not prevent further solutions to be implemented. The second point, and this is the link with
the webinar for this afternoon, is really valorizing the multiple benefits of
these renovations. There are other benefits
beyond the energy savings, and this is a point where a lot – many are struggling, and in
particular in local municipalities and local authorities. And that’s where Sebastian’s
presentation will really focus on how can we support them in doing this, and how to
use sustainable financing. The project has a distinct bottom up approach,
and we’re really targeting and supporting 100 municipalities in developing the renovation
strategies. The project, as I mentioned,
mobilized and focuses on mobilizing investment in energy efficiency renovation. We
really focus on the local levels, on public buildings in particular, and we’re really
aware of the fact that these renovation strategies
have to be implementable on the ground. So
they have to be ambitious, but realistic in their delivery. In the meantime, while we were developing
this project, the European legislation has changed, and I wanted just to highlight the
novelty that was just introduced in the Energy Performance of Buildings Directive, that actually
is now hosting the obligation for member states to develop national renovation
strategies. And so what – the legislation
that we had when we developed this project was actually – the obligation of developing
a rational renovation strategy was in another
piece of legislation, which has now been moved to the Energy Performance of Buildings
Directive, which has just yesterday, just two days ago, on Tuesday, was voted in plenary
by the European Parliament, and will come into force before the summer. The goal of these national renovation strategies
is really to have a 2050 long term goal, and achieving highly energy efficiency in
our decarbonized building stock, and really with a focus of transforming existing buildings,
and renovating them to a point to become nearly zero energy buildings. The directive, and this – the national renovation
strategies will have to give special attention to worst performing buildings, to
split-incentive dilemmas and market failures, to energy poverty, they will have to focus
on all buildings and all public buildings, and
they have to take into account wider benefits, so health, safety, air quality, productivity,
and many other benefits. So when developing the national renovation
strategies, member states will have to think about also how to take into account and how
to include wider benefit of renovations into their strategy. And the last point that I wanted to highlight
is the fact that member states are now required to set up public consultations
during the development of the renovation strategies, and during the implementation
of these renovation strategies, and these will
open an opportunity for many stakeholders, but in particular for local authorities that
in many countries are not involved into this
decision process, this decision making process. And this is where we see a project like EmBuild
will really provide the right tools in the future to public authorities to take it – to
participate into this process. And with that, I
conclude. I leave the work to Sebastian, and I hope
you enjoy the webinar.>>Sebastian Botzler: Okay. Good afternoon from Munich. Thank you all for attending
this webinar, and thank you, Mariangiola, for the introduction, and Katie, for the
introduction of the whole webinar. In the next slides, in the next 15 minutes,
I would like to introduce some insights into what are the
benefits and what we consider are the benefits and how we want to measure and assess
them. But before that, I would like to go
in the same direction as Mariangiola, and show the current situation in Germany. At the moment, we first face quite stable,
even decreasing situation, when we look at renovation activities. You see it on the upper part, the red columns,
that the public buildings or non-residential buildings are
like renovated in a quite stable pace, but residential buildings, renovation activities
are decreasing. Especially when we look at the
energy efficient renovation activities, we have a strong decrease in the last years. And
this is something we need to overcome. And I think one of the main aspects or main
tasks when overcoming this situation is implementing and including the benefits. Here is one sign I like to show a lot. Europe
must go deep. We need to have deeper innovation. We have to have comprehensive and
energy efficient renovation, just any way costs or any way renovation maintenance is
not enough. To go straight into the topic of wider benefits,
I would like to show you an overview of the variety of topics we can include into
renovation assessment. Deep renovation has a lot
of impacts on the society and on our environment, and these are just a selection of topics
we selected, and we have categorized into the three pillars of sustainability to make
it understandable. And I would say economic effects are the most
interesting one, for most of the audience, so we have a particular focus
on that, especially macroeconomic growth, supporting local small enterprises, companies,
producers, but also focusing on economic productivity, competition, markets, research
and development, public finances. These are
all sections which are affected by renovation of buildings, especially when we come to
like properties values, asset values, real estate markets. On the other side, we have the environmental
topics, which are clear, I think, for the most, to understand. If we reduce energy consumption, if we reduce
– then we reduce the emission of CO2, we reduce the emission of
particulate matter, we have less ecosystem impact, we have reduced emissions indoors,
we have better indoor quality, and related to
that, we have a better productivity. On the social side, and this is something
which is mostly forgotten, we have strong impacts on health when we have underheated
homes or we have bad indoor air quality. Also, the architectural side, aesthetics,
noise impact, energy security, these are all factors
which are – which should be taken into account when thinking about renovation. I don’t
say we need to calculate them all, but I think it’s nice to see how broad the spectrum is. One phrase I like to quote a lot is that some
impacts of energy efficiency can deliver 2.5 more times the value of energy demand reduction. So we talk about the big number, big
values. Of course, this is extrapolated, and of course,
this is not applicable for a small project for small municipalities, but I think
this is a number we can take into our minds and think about it, and especially when we
come to the next topics in this presentation. It
will be clearer how it could work in municipalities, and how we can assess that. In the beginning of EmBuild , we made some
survey within our stakeholders and public offices, and asked them what they could think
of what their experiences have – regarding the impacts of energy efficiency or building
renovation, and whether they could actually observe impacts and effects on the society. And of course, the biggest, not surprisingly,
the biggest section is the economy. So we had the reduced cost of operation, higher
productivity, the energy costs could be invested, reinvested in new projects, especially in
public household – in public budgets. Then the second biggest was environment, which
is also quite clear, I think, lower CO2 emissions, less air pollution, less particulate
matter. But – and then for me, it was a nice
insight that – a nice finding that sociology was already the third biggest part, and
especially focusing on reduced health issues, better working quality in schools and
hospitals. I think this is a big issue, and should not
be underestimated. To get it hands on, and I think I will try
to keep it hands on the next few minutes, I want
to show you an example of a renovated administration building. I got this example from
Jan Bleyl. They did it for the Institut Wohnen and Umwelt,
IWU, institute in Germany. And I just want to show you shortly what they
did and what they calculated, because I think it’s a quite interesting example how
you could actually incorporate where are the benefits in the project. This is a science and research project, but
I think it’s also applicable for public buildings everywhere
around. So you see here – it’s German, but it doesn’t
matter. You see here the usual cost balance,
cost planning. You see that we have 36 percent extra costs
for energy efficient measures, and 12 percent anyway maintenance costs. So 36 percent are extra to the usual, common
renovation practices. But on the other side, they could achieve
85 percent savings in heating energy demand and 50 percent savings
in electricity. So these – this actually, the
numbers and the basis, we can calculate our effects and where the benefits are. What they had, of course, they had a quite
long payback period, I would say 25 years, 26
years, up to 30 sometimes, 20 years. It’s the numbers we all know, and it’s the
numbers which are – which [inaudible] barriers and
reflects barriers in the whole renovation process,
because this 36 percent energy efficiency extra costs, they are a huge barrier for most
municipalities and public offices. So this is where we need to implement and
incorporate the wider benefits, and there are actually
financial benefits of energy efficiency renovation. This is how they calculated multiple project
benefits, for example, the work productivity increase, about 1 percent, and rental income
increase, also asset value, CO2 savings, if you think about emission trading, and other
– yeah, balancing and costs, shadow costs, for example. We can calculate financial and monetize these
effects quite well in some aspects. In others, we’re still working on it. This is something I made up, it’s not from
the study, which I want to just show that the
payback period could be reduced, and our own calculations in another project show that
we can reduce it, when we are conservative, up to five, ten percent, the payback years. But this is something we are still working
on, and there will be reports coming up this year showing deeper and detailed calculations
in other projects. Now to the main core of this presentation,
the main part. It’s the methodology we are
applying now in EmBuild, and which we are working on in the next month with
municipalities and regions, mainly from Southeastern Europe. And I just wanted to
briefly introduce this methodology, and I ask kindly for feedback and also your opinion
about it. It will be a very broad methodology and approach,
incorporating as much benefits as possible, and topics, just selecting
them, and ranking them for specific uses in specific locations. So not everyone is happy to have, I don’t
know, if you don’t have local business related to construction, you might
not have these effects and economical effects, macroeconomic effects in your municipality,
when you have enough deep renovation, but you might have it in other fields. So this is what we want to accomplish with
this methodology. Firstly, I want to show you the structure. So we worked with actually two kinds of data
inputs. One input is the municipal data we’re collecting
from municipalities and public offices. This will be a comprehensive questionnaire,
and also interviews, data analysis, statistical data from the national governments,
and we’re collecting them and compiling them into some database to analyze the current
situation of the municipalities related to building renovation and energy, and making
some first – yeah, analysis. The second data input is the statistical and
experimental data we have from science, we have from other projects, we have from experiential
reports, from European and worldwide assessments of the benefits, and
we try in this methodology to combine these both data inputs into some ranking and some
local values that are usable for every mayor, every municipality public officer, because
they don’t want to handle numbers from the UK or Germany specifically in other countries. It doesn’t work, and I think it’s not in the
interest of everyone. First, and this is what we do now, is we have
the indicators and parameter study. We
want to identify what actually is important to measure when it comes to what are the
benefits of building renovation. And of course, we have, again, the socioeconomic
and environmental topics and categories. Most of the data has to be measurable. It has to have
– it has to be monetized. It has to have financial impact, of course. And we are now
making a set of these indicators, which we will publish soon, and these indicators, we
need to gather data for. And we have, like I mentioned, data from the
local authorities, and also the data from other experimental
and worldwide projects, which are sorted into these indicators. As an example for what is existing and what
data we’re using, for example, this is an example of various reports, and we have, for
example, these 22 jobs per 1 million euros spent, which is a quite average number, I
think, for Europe, for deep renovation [inaudible]. And what we now want to do is we want to adjust
these numbers to local necessities, to local situation, and not everywhere in Europe,
22 jobs are created when you spend 1 million euros in building renovation. But this is our task, and therefore, we collect
local data, which will be an online survey with preselected and predefined answers. And these answers help us to sort and adjust
these numbers that are out there. You see here an overview of the back end,
like we have all these different kinds of answers, like how many inhabitants, numbers
of buildings, numbers of public buildings, numbers of educational buildings in different
countries. And based on these numbers, we
can estimate the potential for renovation, and from there ongoing, we can estimate how
much jobs there might be created in the future, how much social impacts, how much
health issues we can solve. And when combining it, like here, for example,
when I look at the jobs issues, we measure how many jobs are created. Then we measure how complex is it to install
this assessments, how complex it is to perform
an assessment for a municipality, independent from any research facility or energy agency. How good is it or how easy is it for them
to implement that in the local situation? And also, we want – we measure now how much
impact we can have with some benefits. Like if we have a deep renovation done on
a public building, how much is actually the impact in the next 10, 20 years, in different
sections, in the job creation, also in health? How much health issues do we reduce? How much days of absence, like for example,
for pupils in public schools, or employees in
the public sector? How much we can reduce the
absent days for them due to health issues with indoor climate or a bad building quality? And also, we have these specific regional
challenges. For some countries, some regions,
they have a specific need for – or an especially high unemployment rate, so for them, the
argument of job creation is much more valuable than for other regions. Like for example,
in Germany, we have quite a less – a low unemployment rate. And also, this works for
different things, like in some regions, we have a high amount of asthmatic and pulmonary
diseases, just because of bad indoor climate. And in some other regions, you have
underheated homes, like in Bulgaria. And these are the specific local challenges,
and they are kind of up-voting and up-ranking our benefits. And also, something we assess is the indirect
benefits growing out of the assessed direct benefits, and this together brings us to an
over-rating for – of – for what are the benefits
or impacts of building renovation. The ranking will look like this in the end. So we have – we don’t provide numbers,
specific numbers, because I think we think that these detailed numbers sound not very
precise, and are really hard to match and hard to verify for every region and every
municipality. So first step is to show a ranking and to
explain what’s going on there, explain how easy
it is to quantify, how easy it is to monetize the impacts. And based on these rankings, we
can produce reports for single municipalities, for single regions. The supports could look like this as well,
like here, an example for Romania, the whole country, but in the future, it will be a single
municipality. And we have the advantages
and positive effects or positive situation, like if they have their own renewable sources,
or they have a lot of local – yeah, companies
working, consortia, and also the challenges, what they want to achieve, what is their biggest
issues. And this combined with our
benefit assessment will produce a nice report, and we will feed these reports with detailed
numbers and values, and also financial aspects for the different, wider benefits. Coming to the end of my short presentation,
I would like to invite everyone here to participate in these surveys, especially if
you work for a municipality or a local government or a region. Please take your time. Look at the survey, fill it out as much as
you can. For every survey, we will produce reports
in the end, and these reports will be sent out to you. You will have your specific local wider benefit
assessment, which will be ongoingly improved, but for the first moment,
you will get this overview I showed to you. And I think in the future, this topic will
be increased, will raise awareness. It will have to
be implemented in renovation actions and in renovation plans. So a first overview of the
possibilities and potentials you have in your municipality regarding all social aspects
and environmental aspects of energy efficiency
and deep renovation could be I think a nice political argument for the future. Yes. And I just can encourage you to incorporate
and think about wider benefits when planning or designing building renovation,
and now I hand it over to Audrey, who will tell us more about the bigger picture of wider
benefits. Thank you.>>Audrey Nugent: [inaudible] hopefully everyone
can see my screen. Yeah. So my name is
Audrey Nugent. I’m the senior policy advisor at the World
Green Building Council, and I’m just going to walk you through some of
the work that we have done and we have seen, and World GBC has been a part of on
the multiple benefits of renovation. And so just a little bit about the World Green
Building Council. We are a global network
of 74 green building councils in five regions across the world. And what each of our
green building councils do is they aim to advance the green building movement in their
country by focusing on specific areas. So some people – so some companies or green
building councils will focus on awareness raising activities. Others will focus on policy. Others will focus on certification. But they all have one core aim, and that’s
to advance the green building movement. So at World GBC, the work that we do is really
focused on projects at a regional and global level that could scale the impact of
our GBCs. And so in terms of the multiple
benefits of renovation, there’s two specific projects I think of interest for this webinar
that I can go into a little bit more detail on,
and that is our Better Places for People campaign, which is focused on healthy buildings, and
then deep renovation, which is a European project that we’ve been working on called
Build Upon, to promote better designed national renovation strategies. So our Better Places for People campaign came
about a couple of years ago when a report was published on the business case for green
buildings, and really, what that looked at was not just the energy efficiency benefits
that a green building can have, but what are the other benefits in terms of health, wellbeing,
and productivity? And so since the first report, we’ve really
launched a whole campaign around this, so I
invite you to look at our website to look at some of the key statistics. And we’ve done a
lot of reports on building the business case for green buildings in terms of its impact
on offices, and how it can increase productivity,
and looking at schools, and in some cases, looking at homes. So what I’m going to do right now is just
[inaudible] some of the key statistics on the benefits
of green building, because I think they can then be translated into benefits in terms
of the renovation of buildings, and then they can
be used as drivers and incentives to actually drive renovation activities. So in terms of daylight and lighting, what
we have found is if office workers are working near windows, then they receive 46 minutes
more sleep per night on average. There is a
6.5 percent reduction in sick leave if employees are exposed to good views and good
daylighting. And in schools, we see an increase of 36 percent
– this is specifically in the States – in oral reading fluency, when exposed
to high intensity light. So here we can see
just benefits that designing or renovating a building that incorporates these aspects
can have, and then this speaks to productivity
gains, to health and wellbeing, and mental health. So we see all of these things kind of coming
together. And in terms of noise and acoustics, in our
offices report, we saw, not surprisingly, that
99 percent of people surveyed said that they had impaired concentration where they’re
exposed to background speech or noise, and 66 percent drop in performance when
exposed to distracting noise. And then in school, in a study done in France,
it found that for every 10 decibel increase in noise, then
the language and math scores of students decreased by 5.5 points. So again, some really compelling cases to
design and renovate these buildings so that these aspects are
considered, because it leads to all of these other
things. Thermal comfort. An interesting finding from one of our reports
that if employees are given access to the temperature controls within
their offices, then it led to three percent increase in local thinking performance, seven
percent increase in typing performance, and a three percent increase in overall productivity. And then in schools, students who said
that they felt comfortable with the thermal comfort in their classrooms were able to
achieve four percent more correct answers in a math test compared to those who were
not. And then lastly, I’ll just give some brief
stats on indoor air quality. So there’s quite a bit
study cone called the Cog Effect Study with Harvard University that we were a part of,
and what that found was the impact of the indoor air quality would have on your
cognitive scores. So what we’ve seen is 101 percent on average
doubling of cognitive scores in green buildings over conventional
buildings, and 30 percent of participants reported fewer sick building syndrome. And then we have some other stats on schools. So what we’ve seen from the body of research
we have done is that there’s a very compelling case to promote and use the multiple
benefits of renovation as an incentive to – as an incentive. Now those are just four aspects that I’ve
addressed, but there’s a whole host of other ones
that we could talk about, so I would encourage you to look at the Better Places for People
website, and a new report on a business case for green building will be coming out next
Tuesday. So there’ll be more kind of case studies and
statistics in that, which I find really, really compelling. And once we started kind of compiling all
of this research, we’ve seen more and more that people are beginning to talk about it. And this was particularly evident during the
Build Upon project that I spoke about briefly. So Build Upon is the world’s largest building
project and building renovation, and Mariangiola briefly mentioned the requirements
for national renovation strategies within Europe, and how a lot of those are designed
quite badly. So the aim of the Build Upon
project was to bring in all of the different key stakeholders together to design renovation
strategies that are actually meaningful and impactful, and to co-create those [inaudible]
governments. And what we saw through that process, with
a very large stakeholder dialogue across 13 countries, was that we saw other entities
coming to the table that previously had not been
involved. So for example, in Ireland, they have a local
charity. They wanted to address
fuel poverty. Employees’ groups in other countries. So really kind of bringing together
kind of a diverse set of stakeholders. And the output of the Build Upon project was
a series of recommendations from each participating country on what could be done
to drive renovation and to make renovation strategies a lot more meaningful. And what we saw consistently again and again
was that national renovation strategies must promote
the multiple benefits of renovation. So I’ve just put a few of the kind of key
quotes from those recommendations from some of the countries, but again, I encourage you
to go on the Build Upon website to see more. But in almost every case, the recommendation
is totally about promoting the multiple benefits of renovation, whether that was addressing
socioeconomic problems, health and wellbeing, reduced dependence on fossil fuels,
the message is very consistent that this is a good way and a good driver to incentivize
renovation activities, and it must be communicated better. So as part of the Build Upon project, we also
collected about 800 initiatives related to renovation, and in a database that we call
the Renowiki. And within this database, and
even since then, we’ve come across a number of interesting case studies that kind of show
how other aspects can drive renovation activities. So I’ll just very quickly go through
those. Unfortunately, we don’t have time to go into
much more detail, but hopefully, they encourage you to do some further reading. So in Norway – I’m just going to briefly
talk about a concept known as Powerhouse. There’s a very interesting scheme in Ireland
called Warmth and Wellbeing. And the UK
Green Building Council are doing some very interesting stuff on a concept called Retrofit
Led Regeneration. And then in Poland, there’s a very interesting
campaign called Efficient Poland. So I’ll just briefly go through these. So the Powerhouse is a consortium of organizations
in Norway, and what they’re aiming to do is demonstrate that it’s possible to create energy
plus buildings in colder climates like Norway, and to demonstrate that building these
buildings makes commercial and environmental sense to all of those who are involved. So really, to show kind of [inaudible] showcases. And it’s not just limited to new builds. The first project they actually did was a
renovation project, I think it was about 2014, and it’s
a renovation of two office buildings from the
1980s. And like I said, the incentive is to promote
the multiple benefits, not just the energy efficiency benefits. And they were able to do that, and the results
of the project really demonstrate this. So they found that they’ve been able to save
money through reduced energy and water consumption and lower long term operation
and maintenance costs, and they’re able to see increased productivity because when they
redesigned the building, they made sure that there was good natural daylighting, and
workspaces were located around the perimeter of the building with access to external
views. The renovation was done with
materials that are low-emitting VOCs, and openable windows promote a healthy indoor
air quality. And then actually they were able to integrate
some wider aspects of sustainable urban development by including
bike sheds and showers and having priority parking for those employees who drove electric
vehicles. So I think this is a very compelling case
that shows it’s not just about the energy efficiency, but there’s other benefits that
need to be considered as well. So I would
encourage you to look at some more of the case studies on their website as well, because
it’s quite an interesting piece of work that they’re doing. And in Ireland, a very interesting scheme
that’s currently being piloted by the Health Service Executive and Sustainable Energy Authority
of Ireland. It’s something called the
Warmth and Wellbeing scheme. And the – what this scheme does, it provides
energy efficiency upgrades to homes of those who
are living in energy poverty, but also have chronic respiratory conditions. And the aim of this is to make homes warmer
and healthier to live in, but also to reduce the attendance of these citizens in hospitals,
particularly during the winter months, when hospitals would be pretty stretched. So what would happen is that the patient would
go to a doctor or visit a Health Service Executive employee, and they would be referred
to the agency responsible for doing this work, and then they would come and assess
their house and determine whether or not it is
suitable. And if it is, then they would do – kind
of pick from a suite of work. So it could
be standard attic insulation, wall insulation, boiler replacement, draft proofing, or other
energy efficiency related upgrades where recommended. So this is still in its pilot, so we don’t
have any of the impact data yet, but I think it’s a
really kind of exciting example of governments actually working across departments to
act in a more systemic way, and understand, you know, how one thing in the Department
of Energy could actually have a positive benefit for the Department of Health. So I think
it’s well worth keeping an eye on the outcomes of this particular one. And this isn’t a case study, per se, but it’s
a very kind of exciting piece of research that’s
being done by the UK Green Building Council on retrofit led regeneration. And they’ve
just released a report at the end of last year which aimed to clarify how high quality
whole home retrofit or renovation can be used as a catalyst to actually regenerate low
income communities. So the reasoning behind this was that regeneration
often focuses on large scale redevelopment, but in many areas, this isn’t
viable or practical. And they’re hoping that
retrofit led regeneration program can provide a solution to ensure that these communities
aren’t left behind when these works are taking place. So this, I think, this graph here is very
compelling, so I would encourage you to look at it
in more detail, because unfortunately, I can’t go through it all. But really, what it does, it
explores the wide-ranging social, economic, and environmental benefits of whole home
retrofits for households, communities, and cities. So just as a brief example, if you retrofit
an individual property, then this could leave to
improvements in the physical and mental health of those residents who are involved in
the retrofitting. From a community level, retrofitting a number
of properties at scale, what we see is there can be a decrease in the number
of void days for rental and mortgage defaults for owners-occupiers. So you have properties [inaudible] longer. And then at a city
and a national level, by retrofitting to a certain level, you actually – and doing
that at scale, you’d be reducing the demand on the
grid, so you’re actually promoting energy security. So it’s a really interesting case, sort of
making the link between the action at the household level, and by scaling that to the
community level, how you can have an impact. And again, it’s not just talking about the
energy efficiency benefits, but actually, it goes
beyond that, and look at how scaling energy efficiency or scaling the retrofit can actually
have impacts on the whole community. So then – we won’t go through this, but
just some examples, if you generate renewable energy
into the project, then you could potentially be creating opportunities for community-owned
projects to provide an ongoing income stream, and then that can be funneled back
into the community. And again, by scaling
retrofit activities, there’s an opportunity to install electric vehicle charging points,
and so you’re promoting that. You’re bringing together different community
groups. And you’re
enhancing the appearance of the state and improving accessibility. So again, it’s a very, very compelling case. And the UK GBC are now looking at how
they might pilot this with certain cities and local authorities in the UK. So again, another
interesting example I think to keep an eye on over the next couple of months and years. And just lastly, I’m going to talk a little
bit about a campaign in Poland, which is not specifically a case study, but I think a very
interesting idea, which is that in Poland, a lot
of interventions in terms of renovation activity are based on multi-family buildings, and
there’s a lot of single-family buildings in Poland with low stack chimneys, and that’s
leading to a lot of problems related to the air quality. So this campaign is really aimed at renovating
these single family homes, and by doing that, addressing the problem of low air pollution. So their tagline is warm house, clean
air. And that is still kind of in motion, this
particular project, but I thought it was a really
kind of good example of kind of more systemic thinking about energy efficiency benefits. So that’s kind of briefly the examples I wanted
to go through, but happy to take any questions at the end, and feel free to contact
me for any more information or resources that I’ve spoken to. Thank you for listening.>>Katie Contos: Wonderful. Thank you so much, Audrey. Now we’d like to welcome
Niko to the webinar. Wonderful, Niko. We can see your screen perfect. Thank you so
much.>>Niko Natek: Thank you. So ladies and gentlemen, it’s an honor to
be with you here at today’s webinar. [inaudible] welcome also on my behalf. My name is Niko Natek, and I’m
here on behalf of my employer, the Energy Agency of Savinjska, Šaleška and Koroška
Region, one of the partners of the EmBuild Project. I was devoted a very short time slot, so I
would like to get straight to it. I’ll be saying just
a few words about some practical experience in defining and quantifying additional
benefits of energy renovation and how this can be supported by organizational and
awareness-raising activities, or so-called soft measures, if you will. So as you already learned from my fellow presenters,
the positive impacts of energy renovation are numerous and can be manifested
in several ways, either take into account higher GDP, increased tax revenues, the creation
of jobs, or even – perhaps in my mind this is the most important aspect – improved
living conditions, increased comfort, productivity, and better health. After all, this is why we construct buildings
in the first place. And in this respect, I thought to myself that
the perfect example of displaying the latter sort of micro-cosmos that allows us to view
energy renovation from a humanistic perspective instead of a strictly monetary
one, are schools. Why schools, you ask? Well,
because of many things, but namely because schools are public spaces in which the
overall energy efficiency depends very much on user behavior. Generally, the energy
performance indicators, such as energy numbers expressed in used energy per square
meter of heated surface per year, are high. So implemented measures are commonly
economically feasible. The aspect of wider benefits is also very
easy to argument, because parents generally act
in the best interests of their kids. Money, if available, is not a persuasive
counterargument. Children are also very susceptible to ideas
and concepts that they can relate to. They learn fast and are unburdened by bad
habits from the past. And I could go
on, but I think you understand my point. Take, for example, the 50/50 methodology that
was implemented through the Euronet 50/50, also a follow-up project of Euronet
50/50 Max, carried out through the cofinancing from the Intelligent Energy Europe
Program. We’re talking about a
methodology that aims to bring about energy and financial savings in a building by
actively involving building users in the process of energy management, and teaches them
environmental friendly behavior through I guess practical actions. It’s comprised from nine steps that finally
result in some worthwhile energy savings – at least, they should – that can be reinvested
into additional measures and activities, creating this sort of perpetual mobile of positive
advancements. The approach is a bit similar to
the EPC Lights model, if you’re familiar with energy performance contracting, also a
term coined by German experts. We could conclude that this is a sort of bottom
up approach to energy renovation, because it’s
user centric. It starts with behavior change of
users, which is then followed by concrete investment. This approach allows us to
maximize the impact of the investment, because if a building and all its systems aren’t
fully automatized, then users have a big impact on the final energy consumption. So the 50/50 methodology is successful because
it addresses and rewards all of the key stakeholders, so they are motivated to engage
in such activities over the long term. In
essence, 50 percent of the financial savings achieved is returned to the school through
a financial payout, while the other half of
the financial savings is a net saving for the local
authority that actually pays for the energy bills. So in that way, everybody is happy, and
the benefits to all parties are essential. Even for pupils that form the energy teams,
speaking quite proudly, acquire additional knowledge, learn about teamwork, are directly
rewarded for doing the right thing. And following this line of thought, I guess,
are also very excellent ambassadors for promoting energy
efficiency within their family circles and amongst peers. So it’s clear that this approach is very successful
within the Euronet 50/50 project, which was implemented in over 50 schools from 9
European countries. There was 6,900 pupils,
teachers, other key stakeholders involved. Forty of the 50 schools achieved some kind
of notable energy and financial savings, which
was about 1,100 megawatt hours of energy, translating to CO2 that requires about 340
tons of mitigated CO2 or greenhouse gas equivalents that weren’t emitted into the
atmosphere. So each school saved on average
more than 2,000 euros. One more interesting project that I wanted
to include in this discussion about wider benefits if the [email protected] project, which
basically aims to increase the capacity of the public sector for implementing so-called
energy smart schools. The project should achieve this by applying
an integrated approach that educates and trains school staff and pupils to become so-called
senior and junior energy guardians, so a very similar concept to the one we learned
about in Euronet 50/50 or 50/50 Max. So the projects will provide a transferable
and customized strategy and management plan for smart schools, also providing various
tools that will support [inaudible] behaviors, such as
smartphone apps for energy guardians, which will be demonstrated in I think seven pilots
throughout Europe. The Slovenian pilot includes eight elementary
schools in which we set up some form of an energy management system
that is displayed here. So what’s
important to note, that besides the display of common micro-climate parameters, we also
acquire subjective feedback from building users, because as you are probably aware of,
thermal comfort is very subjective. We always have people that are either always
cold or always hot, and it’s – sometimes, it’s almost
impossible to provide an environment that is
good for everybody. But the purpose of this application is that
we’re trying to get all that different subjective feedback and try to benchmark
on what we have to do to make at least the majority of users happy. And this is just a few graphs charting the
energy use in a certain building. This is
cumulative. That’s why it increases in April. This is the power consumption, not energy,
but power, the power load. This displays the display for the fourth elementary
school [inaudible]. They also introduced a way of either turning
on or turning off lighting systems remotely, and believe it or not, this is really
popular by students, and I don’t mean pranks, either. So – okay. Maybe I would like to turn the story now a
bit and focus on the other side of energy renovation and how to mitigate also its negative
impacts, or more importantly, how this should be considered in investment preparation
and tendering procedures. Especially when renovating or upgrading the
thermal envelope of a building, there are several things that we should consider, some
of which are that generally, insulation on the
buildings outer envelope reduces the air exchange rate between the outer and the internal
air. This means that the concentrations of undesirable
gases tends to increase, such as formaldehyde or other forms of volatile organic
compounds. The perceived indoor air
quality is actually better before renovation was carried out, albeit thermal comfort is
much lower. And that energy renovation efforts must always
include measures to also improve ventilation. Very important. We addressed this within a national pilot
carried out in THE4BEES project, which is the
Transnational Holistic Ecosystem for Better Energy Efficiency through Social
Innovation. We started to implement this project in late
2015. It’s based on three main
objectives, which are to influence behavior of building users, to achieve energy savings,
and to introduce experience and lessons learned into an amendment of relevant policy on
the national level. The general idea was to acquire concrete data
about actual energy consumption, as well as other relevant parameters, such as indoor
air quality. And of course, this is a two-
edged sword, because oftentimes, energy renovation measures have wider negative
impacts on certain important factors, such as health. In our particular case, for which you
can see a schematic of the sensor network, the school center of Velenje carried out
extensive energy renovation of its five old buildings. Otherwise, the buildings were
constructed from I think 1959 and up to 1984, which was followed by extensive
investment into energy renovation. I think the last one was concluded in 2008. So special focus was attributed to measuring
indoor air quality, which is in our example defined as a prerequisite and a benchmark
for monitoring and optimizing energy use, with reference to existing health and safety
standards. To this end, the developed sensing
network measures indoor levels of carbon dioxide, formaldehyde, and radon gases. CO2
was chosen due to its negative effects on concentration and overall learning ability,
although it’s quite impossible to create a situation where the gas would actually be
toxic. On the other hand, formaldehyde and radon
are highly hazardous gases that were assumed as being problematic in the context
of energy renovation, which generally reduces the air exchange rates, as I said,
between the interior and exterior, causing in
many cases the increase of such compounds in the internal air. Furthermore, radon is
formed from radium in the decomposition series of uranium within the earth’s crust, and
rises to the surface, where it’s released into the atmosphere, or in our case, accumulate
in enclosed spaces, meaning like caves, mines,
or even buildings. Since Velenje has a very long tradition of
lignite mining, and also been very active in
energy renovation in the past decades, a combination of these two factors kind of pointed
us into the direction that these two potentially hazardous gases, or their build-up, should
be present on the ground or lower stories, which is also confirmed. So I think it’s time to sum up, because it’s
already past 4:00. So let me just make some
conclusions. Energy renovation should always be considered
with the bigger picture in mind. Per partes or partial renovation will not
nearly achieve as much savings, and can cause significant negative side effects, as
you can see from my presentation. I also invite you to look at a study done
by ECOWAS, the renovation tracks for Europe up to 2015, which look at different levels
of renovation, and basically concludes that the
most effective, the cheapest option, is to go for comprehensive deep renovation. So
please, have a look at the study. It’s really worthwhile. So also, for countries, it’s really, really
important that wider benefits can be considered within public tendering procedures. We can only claim what are benefits if they
are quantifiable and/or measurable. So IT support, like, for example, advanced
energy monitoring information systems, are and will
also remain crucial in the future. Unfortunately, we also must be aware of the
fact that the world is also viewed through a
prism of currency, and until that changes, wider benefits are considered as an addition
to an otherwise feasible business case. Otherwise, they are common disregarded. This is
why they should be quantified and expressed in monetary value, so we’re able not only
to analyze their actual impact, but to also make
the decision makers understand that it’s in their best economic and general interest. And this is all for my part. Thank you very much. Happy to take your questions.>>Katie Contos: Wonderful. Thank you, Niko, and thank you to each of
the panelists for those outstanding presentations. As we shift to the Q&A, I just would like
to remind our attendees to please submit the questions using
the question pane at any time during this time. We also keep several links up on the screen
throughout for quick reference, to point where you’ll find information about upcoming
and previously held webinars, and how to take advantage of the Ask an Expert program. As we shift into the questions for the panel,
I’ll ask that anyone can answer the question, but I’ll direct it to one person. To start, I’d like to start with Mariangiola. Do you think
wider benefits will become a main factor in EU regulations in next editions of the EED
and EPBD?>>Mariangiola Fabbri: Well, I certainly hope
so, because as all these presentations have shown, that there is an increased interest
in this topic, but an increased questioning of
how can all these different wider benefits be identified, and most importantly, be
quantified and monetized, in order to be part of the renovation planning of both local and
central authorities. For the future of the legislation, the EPBD
has just – the revision has just been concluded, and we’ve seen that there is a clear reference
to wider benefits, and its inclusion – their inclusion in international renovation strategies. So we are going into the right direction,
but freedom is entirely left to the different governments across Europe to decide how to
do it and how to quantify it. So that’s where I think a project like EmBuild
can help, because if we – if we can support this process
with some tools that would get close to that quantifiable aspect, I think we will make
progress. As far as the EED, the negotiations are already
– are still ongoing, so I cannot predict the
future, but I think that the indication that we got under the Energy Performance of
Buildings Directive is clearly one of an increased interest and understanding, I think, both
from policy makers in Brussels, but also policy makers across Europe, and the different
stakeholders, of the importance of this topic. If we don’t learn how to deal with it and
how to plan for it and quantify it, I think everyone is realizing that we’re losing big
opportunities for saving, big opportunities for
what energy [inaudible], but also an extremely high opportunity to actually increase the
quality and comfort of everyone that lives and works in a building.>>Katie Contos: Wonderful. Thank you so much. Would any other panelists like to
comment to that? All right, we will continue on with the questions. My next question is
directed at Niko. Niko, what is the current state of policy
on including wider benefits into tendering procedures on the national level?>>Niko Natek: Yes, thank you for the question. Well, speaking for Slovenia,
unfortunately, we can’t really say that we made substantial advancements in the past
decade. There was some improvement achieved with the
renewed Act on Public Procurements, which is ZJN3, adopted last
year. This act allows the introduction of
additional criteria within the public tender for energy renovation. For example, some
metrics on the quality and comprehensiveness of proposed measures that aren’t
necessarily identified as a priority. However, this is still a very long way from
what we would like to see, namely, that the tendering process would allow the consideration
of a wide scope of impacts, provided that they are, again, quantifiable or measurable,
and that are based on concrete analytical or methodological approaches. Perhaps other panelists would like to share
their thoughts on the situation from their countries as well.>>Audrey Nugent: Hi. Audrey here. I think that it’s probably worth mentioning,
it’s not really in relation to energy efficiency, but
there is a new framework of – it’s called Levels. It’s being released by the European Commission. And what that does is it aims to
encourage reporting on sustainability of buildings beyond just energy efficiency. Although it’s not mandatory, it is part of
the Circular Economy Action Plan. And [inaudible]
series of meetings different [inaudible], and some of those incorporate
the wider benefits. So for example, Macro Objective Four [inaudible]
health and wellbeing, so there’s a focus on indoor air quality and things like
noise and acoustics. So although it’s not mandatory, it is an indication
that the commission are beginning to look at these things, and kind of align – we’re
looking at World GBC very much at Levels, as to how our GBCs can help implement
this, and one of those things will be looking at how you would align the indicators
within Levels with green public procurement criteria. So perhaps that’s one kind of pathway to achieving
this as well. So
just something for [inaudible] consider, and I would encourage you to look that up as well
if you haven’t heard of it yet.>>Katie Contos: Wonderful. Thank you so much. Sebastian, the next question is for you. Are there any other countries you’re planning
on having participating in the surveys? And
who are you targeting in those surveys? What’s the audience?>>Sebastian Botzler: Thank you for the question. First, I just wanted to add to the other
question before, because in Germany, I would say the official or regulations are not really
focusing on wider benefits, but however, for example, we have the KFW. It’s a
development bank, and they are having a lot of projects regarding renovations, and they
actually care in their reports and their assessments of impact of their fundings. They
focus a lot on wider benefits, and they produce numbers and quite interesting insights. So I think it’s in the government cycles,
but – circus, but not so far in regulations. So just
to the first question. And now to the survey, since EmBuild is focusing
on Southeastern Europe, we adopted [inaudible] this survey mostly for these countries
in the region, but in the future, it will be
extended definitely. And we have an English version as well, and
German version. So
these countries, like European countries, they are definitely in focus, and following
up projects will hopefully include Spain and
English, UK as well. But we’ll see how it works
and how the feedback is, how we can improve the survey during this project, and it will
definitely be improved and updated. So I hope it will last longer, and also the
reporting process after that will develop and provide
nice reports in the end.>>Katie Contos: Thank you, Sebastian. Audrey, do you plan to continue the Build
Upon project?>>Audrey Nugent: Yes. That’s our intention. So the first stage of Build Upon was really
looking at the – at a national level, the – how renovation can be driven, and like
Mariangiola was saying at the start of the session, the revised Energy Performance of
Buildings Directive really gives it a renewed kind of enthusiasm for those strategies, and
that they should be developed with 2050 goals in mind, and they’ll need to contain
milestones and indicators to track progress towards these goals. So what we’re seeing now is an opportunity
to look at the local level how you develop those indicators, so there’s actually I think
a lot of parallels between what we’re [inaudible] to
do [inaudible] some of the things that the EmBuild Project has done. So interesting to explore
those synergies further. But yeah, we’re scoping that at the moment.>>Katie Contos: Thank you so much, Audrey. The next question is for Niko or any of
the panel. Niko, would you agree that it’s about time
to change existing investment schemes as a public authority, and incorporate
much more effects of energy efficiency measures into long term investment planning
when renovating public buildings?>>Niko Natek: Yes, thank you for the question. Yeah, my answer would be definitely. The only problem is that at least in our case,
that municipalities are financed directly from state budgets, so they don’t actually
have that much autonomy on deciding on how much money they will spend and where. I think it’s definitely required that local
authorities are also equipped with the capacity that they can actually carry out the
renovation investment for which the state government has set the goals to. So the situation currently in Slovenia is
that local authorities are very much dependent on
the national tender for co-financing energy renovation, but at the same time, the local
authorities were left on their own to actually acquire, for example, project development
assistance and so forth. And of course, their budgets were not increased
at all. So I think – I know we’re – in Slovenia,
it’s a very unique situation, I guess, because we
have no regional authority level, only the national decision makers, which pass down
their legislation to about 220 small or a bit larger municipalities. And I think this is the
essence of the problem. So basically, to streamline the commitments
on the state level with the budget that is actually available
for local authorities to carry out these investments, in my opinion.>>Katie Contos: Wonderful. Thank you so much. Would anyone else like to comment
on that question?>>Mariangiola Fabbri: Yes. Mariangiola here. Just one thing to add to what Niko said. It is definitely an issue, and it’s an issue
that has been looked into much more in detail, as
it was before. A few months ago, Eurostat published new guidelines
on accounting rules and how municipalities can actually calculate
and consider energy efficiency investment and renovation investment in their budgets,
rather than including it as a debt, but as an
[inaudible], and put them outside of their books. So there is, slowly, I think, but steadily,
a movement towards understanding what are the
barriers to renovations, and what are the barriers to including and integrating wider
benefits into these calculations. It’s certainly not going with the speed that
we would all like to see, and I think all of the projects
that we’ve seen today give clear indications that
there is an increased interest from all stakeholders and also society collectively into
looking at that. But that is definitely – the moment we understand
how to solve this issue, I think that will open up many opportunities,
and there will be plenty of investors and plenty of companies ready to invest in renovation
at the municipal level.>>Katie Contos: Thank you so much. For Audrey, you mentioned the Renowiki project. Can you explain more about this resource?>>Audrey Nugent: Yeah. So as part of the Build Upon project, one
of the aims was to map and kind of compile all of the existing
initiatives related to renovation activities. So
the 13 countries that participated in the project, they [inaudible] the Renowiki, and
it’s a really quick summary of what a specific project in
energy renovation could look like, and they’re categorized according to the different
barriers that we identified to renovation activities. So for example, in the finance and economics
section you will see some of the kind of financial incentives to drive renovation programs
[inaudible]. In awareness raising, you’ll see
some of the campaigns that have been successful in different countries to raise the
awareness of renovation, and often, that’s where some of the activities of the multiple
benefit [inaudible]. And yeah, and then there’s finance, organizational,
economic, and awareness-raising, and policy, some of the
policy drivers in different countries as well. So it’s a very good resource for those people
who are looking for inspiration on renovation initiatives, because there’s a
lot out there, but what we found was that there
was no kind of one central place that was tracking where they were. So that’s what the
Renowiki aims to do, and it’s an open source database, so you can add your own
initiatives as well. And it’s [inaudible], so –>>Katie Contos: Great. Thank you so much, and thank you to everyone
for that informative Q&A session. Now I’d just like to ask that Mariangiola
give us some closing remarks to today’s webinar.>>Mariangiola Fabbri: Sure. First of all, let me thank you, everyone who
has presented, the organizers, and the participants, to stick
with us until 20 past 4:00. I think what we
can clearly see from the [inaudible] presentations that we heard today is that there is an
increased interest in this topic, and also, a clear understanding of why it is important
to consider wider benefit and valorize wider
benefit, both from an energy perspective, both
from a policy perspective. We talked about 2050 objective of decarbonizing
the building stock, or achieving a highly efficient and
decarbonized building stock, and bringing existing buildings to nearly zero energy levels. But there is also another element that I think
gives hope, in the fact that this process will
continue and will actually achieve the result. It’s that there is a societal component to
it. We’ve seen an increased involvement of stakeholders,
also community and local levels, from schools to the small construction companies
to other – all sorts of local interests that
are showing they’re willing, and their interest in the topic. There is an increased interest
in the quality of the building where we live and where we work, which until a few years
ago, you wouldn’t hear so much about this. So this idea of increasing the wellbeing,
increasing the health, the comfort of the buildings. And obviously, there is this drive towards
improving the quality of our building stock. We have a big barrier to overcome, which is
how to make the wider benefit quantifiable, measurable, financeable, as we’ve heard earlier,
because if we do it – it can also be done wrongly, and when it’s done wrongly, the consequences
can be – can be negative for those that actually have to live and work
in a building that is badly renovated. But I think that there is a clear direction
to which we are going, and there is a large community of industry and stakeholders and
policy makers and local authorities that are willing to invest and investigate more. And I’m pretty sure that the next round of
[inaudible] 2020 projects that will be presented and financed
by the European Commission in the next two, three years, we’ll see more and
more proposals covering the aspect and – of including and integrating the wider benefits
into the renovation strategies.>>Katie Contos: Great. Thank you again. And on behalf of the Clean Energy Solutions
Center, I’d like to extend a thank you to all of our expert panelists and to our attendees
for participating in today’s webinar. We very much appreciate your time, and hope
in return that you – there were some valuable insights
that you can take away back to your ministries, your departments, or organizations. We also invite you to inform your colleagues
and those in your networks about the Solutions Center resources and services, including
the no cost policy support through our Ask an Expert service. I invite you to check the Solutions Center
website if you’d like to view the slides and listen to the recording
of today’s presentation, as well as previously held webinars. Additionally, you’ll find information on upcoming
webinars and other training events. We’re now posting webinar recordings through
the Clean Energy Solutions Center YouTube channel. Please allow about a week for these audio
recordings to be posted. Finally, I’d like to kindly ask you to take
a moment to complete the short survey that will
appear when we conclude the webinar. Please enjoy the rest of your day, and we
hope to see you again at future Clean Energy Solutions
Center events. This concludes our

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