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Transitioning buildings to full reliance on renewable energy and assuring inclusive and affordable housing

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Key findings

Full decarbonisation of the Austrian building sector is feasible including a

• 50% cut in energy consumption and a

• broad building- and settlement specific mix in integrated renewable heat supply

-> heat pumps, biomass, district heating, solar and biogas

Cost drivers are not decarbonisation measures but dynamics of the market including

• Real estate prices

• Additional demand for holiday homes

• Real estate investments („Betongold“)

Transitioning buildings to full reliance on renewable energy and assuring inclusive and affordable housing

Keywords: Building sector, decarbonisation, affordability, inclusiveness, transformation pathways

Authors: Lukas Kranzl, Andreas Müller, Fabian Schipfer, Koen Smet, Bernhard Leubolt, Markus Hafner-Auinger, Thomas Kautnek

Contact and further information

The research leading to the presented results was performed in the framework of the project

Decarb_Inclusive for the ACRP (Austrian Climate Research Program) with the funding number

KR17AC0K13648 (10th Call, 2017)

Contact: Lukas Kranzl (kranzl@eeg.tuwien.ac.at) More Info:

www.eeg.tuwien.ac.at/decarb_inclusive

https://www.klimabuendnis.at/na-wo-award

Synopsis

This project focuses on transitioning buildings to full reliance on renewable energy, while assuring inclusive and affordable housing.

The Decarb_Inclusive project combines

(1) techno-economic modelling of decarbonisation scenarios with

(2) an analysis of possible effects on real estate prices and aspects of social inclusion, and

(3) transdisciplinary research on policy options to implement social innovations.

The active engagement of stakeholders and municipalities ensures the targeting of policy makers and academia. To maximise the science-society interface of the project an award (NaWo Award) was designed and tendered to find and select environmentally and socially sustainable housing innovations.

NaWo Award Winners & best practices case studies Socio-environmental innovation

Driven by challenges

• Increasing costs of real estate

• Increasing space demand per person

• Changing demographics (age, family structures, migration)

• Urban sprawl increases demand in transport & complicates district heating

• Poor coordination of stakeholders (state, civil society, private)

Socio-environmental innovation (social and environmental innovations)

• Joint use of space (see NaWo Award winners)

• Support for mixing of millieux, age groups and family types

• Coordination, conflict management, moderation, knowledge- and know-how transfer

KliNaWo (Feldkirch, Vorarlberg).

Source: Energieinstitut Vorarlberg

Bikes and Rails (Vienna).

Source: Bikes and Rails

Sonnengarten im Limberg (Zell am See, Salzburg).

Source: Stadtgemeinde Zell am See

House of Commons in Innsbruck (Tirol).

Source: Energie Tirol/ Blitzkneisser

V – relevant X – irrelevant O – situation dependend

Indicator Heat demand

reduction Energy cost reduction

Comfort losses due to less

heating Investment [€/m²]

with w/o with w/o with w/o with w/o

Owner-

occupied 54% 43% 21% 8% -3% 0% 160 127

Owner- occupied

low-income 54% 40% 17% 3% -3% 1% 158 122

Tenant 42% 3% 0% -44% 1% 13% 157 72

Tenant low-

income 41% 2% 3% -40% 1% 13% 158 73

Policy recommendations

High efficiency standards and integration of renewable heating has reached life cycle cost parity in conventional residential housing construction (new building).

However policy measures are required to reach decarbonisation targets in time while ensuring affordability and inclusion:

• Establishing cost transparency  gradually increasing CO2 taxes

• Rental housing  renovation obligation / Sanierungsgebot

• Municipal & limited profit housing  harness potentials of relatively simple

decision structures and centralised management; limit privatisation; dedicated object support

• Owner occupied housing/flats  owner specific support measures (subject support)

• Limit cost drivers  avoid unused property; limit institutional investments,

• Enable social innovation  commoning space use (e.g. gardening, guest rooms/

appartments); co-housing for affordable housing and social cohesion);

• Changes in the condominium and tenancy law (e.g. obligatory formation of reserves for building renovation or voting rules)

Scenario simulation

Comparison of two full-decarbonisation scenarios

• Scenario “with”: CO2 tax with renovation obligation

• Scenario “w/o”: CO2 tax without renovation obligation

Structures of housing provision relevance matrix

Owner- occupied detached

Owner-

occupied flat Private rental

Limited- profit

rental Municipal Structural Features

Economic criteria (e.g. loan accessability, expected energy savings, time horizon, revenue vs. expanses)

V V V V V

Use value (e.g. living comfort) V V/O X X X

Welfare critera (e.g. ecological and social

goals) V O/X O/X V V

Investor-user discrepancy X O/V V O/V O/V

Decision making, mulite-owner complexity

(Stakeholder structure of the building) X V V O/X X

Regulatory incentive (e.g. obligation to

renovate and refurbish) X X X V X

Household Features

Age of household V V O X X

Household income and wealth V V O X X

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