WORKSHOP AND STUDY TOUR Exchange of knowledge and experience on local low-emission strategies

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1 DOCUMENTATION WORKSHOP AND STUDY TOUR Exchange of knowledge and experience on local low-emission strategies October 2014 at the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) in Berlin Supported by*:

2 Introduction & Background Municipalities in Poland and Germany play a crucial role in implementing local low-emission strategies in order to achieve the EU climate and energy targets. At the same time, municipalities increasingly recognise the economic benefits involved in reducing emissions. They adopt measures for climate mitigation such as energy efficiency or locally generated renewable energy to save costs and support local businesses. In Poland, more than 800 municipalities have applied for funds from the Polish National Fund for Environmental protection and Water Management to develop local low-emission plans. In Germany, around German municipalities currently implement local mitigation activities ranging from integrated climate concepts to investive measures, supported through the German National Climate Initiative. And in both countries, the number of active municipalities is growing. Against this background and as part of the broader project Exploring new opportunities for the Polish-German cooperation on local low-emission strategies a workshop brought together 20 representatives from Polish and German municipalities. The workshop was conducted jointly by adelphi and the Polish National Energy Agency (KAPE). The aim was to discuss experiences on the implementation of local low-emission strategies along selected issue areas such as energy-related modernisation of buildings, cooperation with the local private sector and energy cooperatives. The exchange of knowledge was further supported by a study trip to good-practice examples in the surrounding of Berlin - including a zero-emission-house and a biogas installation giving participants further opportunity for discussion and net-working. Participants highlighted that any discussion should take into account that Poland and Germany have their own political and legal regulatory systems in the field of climate and energy. In addition, Polish and German municipalities are often led by differing motives for low-emission strategies; in Germany overall environmental and climate protection per se is a driver for activities; many Polish municipalities put a much stronger focus on air-quality. However, representatives from both countries identified similar challenges and common goals; both German and Polish municipalities want to achieve economic and environmental benefits using low-emission strategies. The workshop served to review smart instruments to generate financing and implement them with only limited municipal budgets. *This project was funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety with means of the Advisory Assistance Programme for Environmental Protection in the Countries of Central and Eastern Europe, the Caucasus and Central Asia. It was supervised by the German Federal Ministry for the Environment (BMUB) and the Federal Environment Agency (Umweltbundesamt, UBA).

3 Cooperating with the private sector towards climate and air protection Many municipalities in Poland and Germany fruitfully cooperate with local businesses. Another form of cooperation by now a proven means to implement low-emission strategies in Germany is Public- Private Partnerships (PPP). In Poland, only a few municipalities use PPP with only limited size and scope. The Polish municipality of Karczew is one of the pioneers in the implementation of Public-Private Partnerships in Poland. It is a successful example of how PPP projects in Poland can achieve energyrelated modernisation of public buildings with much potential for other municipalities in Poland. Karczew s Public-Private Partnership model "Comprehensive upgrading of thermal performance of public buildings was the first hybrid project in Poland, combining funds from a grant by the National Fund for Environmental Protection and Water Management with private sector investment. The private partner in the project covers more than 50 per cent of the whole investment. It is responsible for the improvement of the thermal insulation of several public buildings (mostly schools and kindergardens) and to provide maintenance or repairs services. In the framework of the PPP the expected savings for the municipality with around inhabitants amount to PLN 3,5 million (approx. EUR million) over a running time of 14 years. Against the background of the German experience with Public-Private Partnerships discussed at the workshop, Polish participants highlighted that PPP can be a suitable instrument for the implementation of low-emission strategies. Participants agreed that if properly planned, a PPP should lead to substantial financial profits for both parties while both sides also share the risks involved. At the same time, it was cautioned that the preparation of a PPP project should not be underestimated in its complexity; it requires detailed analysis and to establish a devoted team in the municipality as well as hiring external advisors. Participants further concurred that the participation of the municipality s treasurer in negotiation meetings with potential private partners is essential. Basing local strategies on local strength: energy cooperatives Municipal representatives of both countries emphasised the involvement of all local stakeholders be it government, private sector or civil society - as one important component of a successful local climate policy. Participants discussed energy cooperatives as one model of involving local actors in more detail. Good practices cases included a German energy cooperative - as one of almost 900 cooperatives in the energy sector, with most concentrating on the generation of electricity from renewable energy resources as well as the first energy cooperative in Poland. Energy for Saerbeck is one of the successful examples of energy cooperatives in Germany. Saerbeck is a small municipality located in a rural region in the mid-western part of Germany. The cooperative was established in 2009 by seven founding members (including the mayor) and received professional support from local banks. Currently, the cooperative has about 700 citizens as members who are investing in various projects, such as a Bioenergy Park. The park was built on the grounds of a former German army ammunition camp that belongs to the municipality since Saerbeck therefore shows how former military and industrial areas can be a suitable location for local lowemission projects. Today, on the 90 ha area there are now 29 MW of electric power installed, including a biomass plant and a bio waste plant, solar panels and seven wind turbines. The Bioenergy Park, which is open to visitors, also offers research, development and education in the field of environmental protection. One driving force of the Bioenergy Park and all other projects conducted in Saerbeck is its mayor devoted to climate protection. But in the end, the success of the municipality is by a big part a merit of the citizens contribution. According to the representative from Saerbeck, it turned out that many inhabitants are actually experts, who are willing to support the project, making citizens the best experts on-site. Another key to the success of the project was that the planning and implementation was put forward by the municipality and only local actors and investors are involved, making local 3

4 added value one of the best motivations for citizen participation, acceptance for renewable energy and a business for municipalities. Legal conditions are not decisive - the willingness and devotion of people is the key to success The first energy cooperative in Poland was established only in The cooperative Our Energy was initiated by the local energy company Bio Power sp. z o.o., for which it cooperated with four municipalities: Komarow-Osada, Sitno, Skierbieszow and Labunie, as well as the company Elektromontaz Lublin sp. z o.o. The core of the project is to build a system of biogas plants interconnected by means of an off-grid network. The investment project is divided into several stages, each stage covering the construction of a hub of three generating units in one municipality. The plan is to supply electricity to all public buildings, street lighting and most households in relatively densely built-up areas using locally available resources for the benefit of its citizens. The mission of Our Energy Cooperative goes beyond mere power generation through biogas; it also promotes the idea of a cooperative movement as a democratic legal form of economic activity in Poland. Although the investment project is implemented locally, the initiative Our Energy Cooperative is open to investment coming from the whole of Poland. Everybody can become a member of the cooperative, thereby becoming a co-owner of the enterprise with the right to a share in the profits generated by the business. Participants highlighted that Poland and Germany are dealing with different challenges when establishing energy cooperatives. For example, the regulatory frame in Germany has been more favourable. Especially the instruments introduced in the German Renewable Energy Act (EEG) of 2000, including the feed-in-tariffs and priority connection of electricity produced from renewable energy resources to the power grid, have created enabling conditions for citizens participation. Nevertheless, if conditions in Poland become more favourable, this form of financing renewable energy installations has potential to become a more popular instrument for Polish municipalities as well. 4

5 Strategic planning towards low-emission development Participants expressed great interest in discussing examples of strategic concepts towards lowemission development. One good practice case from Poland is the city of Warsaw, which pursues the ambitious goal to reduce CO2-emissions by 20 per cent until 2020 compared to In order to reach this goal, Warsaw adopted an ambitious low-emission strategy including activities in areas such as energy efficiency in buildings, sustainable public transportation and renewable energy resources. The biggest sewage treatment plant in Warsaw, for example, was modernised and now utilizes state of the art technology to generate energy from waste and sediments. The production currently covers 30 per cent of the annual energy needed for streetlights in Warsaw. Further activities include investments in environmental-friendly vehicles (buses and trams), the enlargement of the metro system, as well as the development of new bike paths and a public bike system, so that it is now possible to borrow a public bike in almost 200 places in the city. E-mobility was another issue that attracted much interest from municipalities at the workshop; the city of Warsaw, for instance, further developed e-mobility in the capital and cooperates with a private company in a pilot project introducing charging infrastructure for electric cars available for free. Another successful case of an overall concept for low-emission development is the German city of Delitzsch. In 2003, rising energy costs motivated the city to introduce a municipal energy management mechanism. This system is part of the "Guiding Concept Delitzsch 2015" which includes targets for a sustainable use of resources and effective climate protection. In 2006, the city decided to participate in the eea (European Energy Award) aiming at cost savings through reduced energy consumption, environmental protection and city marketing through the positive image of energy efficiency. Today, Delitzsch is not only firmly committed to energy efficiency but also among the leading cities in the eea ranking. It quickly became apparent that energy management is worth the effort. In 2006, the energy costs were EUR 300,000 below the projected costs without an energy management system - a substantial relief for the city s budget and positive benefits for environmental protection. The introduction of a municipal energy management system is said to have been an important decision that has paid off not only with a rapid reduction of operating costs but also with regard to a long-term vision for the city. Administrative staff and citizens have been made aware of to the issue of energy efficiency. Some further take-away messages of the case of Delitzsch include that to implement a project such as the municipal energy management, it is necessary to involve the top management of a municipality from the beginning and to continuously raise awareness among stakeholders. Furthermore, to prevent an inevitable organisational blindness, it is advisable to consult external advisors and to share experiences with other municipalities. Structural change as a chance: from coal mines to low-emission economy The city of Herten, situated in the north of the Ruhr area, has been one of the biggest coal producers in Europe. It attracted the attention of the workshop participants as an example of pro-actively managed structural change towards a local low-emission economy that is not only a promising path to achieve its goal to significantly reduce CO2-emissions but also to make business and create jobs with new technologies involved. Due to its industrial history, Herten has to face demographic problems, such as an ageing population, as well as a high unemployment rate. Thus, Herten s Climate Concept concentrates on climate protection that is cost-/ benefit-efficient, while increasing the life-quality of inhabitants, strengthening the local economy and competitiveness of companies around Herten. If it was possible in Herten, it is possible everywhere! What makes the experience in Herten unique is hydrogen power. On the former pit area Ewald, a hydrogen-competence-centre called h2herten, was opened in It is the first local application 5

6 centre for hydrogen and fuel cell technology in Germany. The key element of the project is a wind turbine connected with an energy-complementary-system on hydrogen basis. The system generates energy by the electrolysis of hydrogen and is also able to store and then convert the hydrogen via a fuel cell/ combustion engine hybrid system into electricity again. h2herten's energy needs are covered using regenerative energy only, independently from the national grid. With its development in the area of fuel cell technology and hydrogen energy, Herten aspires to become an international leading specialist in this area and to serve as a testing and demonstration platform. Already today many renowned German and international companies have already settled there. As was highlighted during the discussion, a case such as Herten shows how a focus on new technologies can encourage international companies to become active in the municipality, thus revitalising its economic development. Seeing is believing experiencing good practice in the energy district of Barnim The workshop was followed by a study trip to the district of Barnim, located in the state of Brandenburg. Barnim conducts the campaign the future is RENEW:ABLE ( die Zukunft ist ERNEUER:BAR ) aiming at utilising the potential of resources in the region, rediscovering flow patterns for material and increasing the added-value in the district. Since 2008, the district of Barnim also implements a zero-emission strategy. The long-term goal is to cover the entire energy demand of the district with renewable energy resources. Already today, a total of 3,500 renewable energy power installations cover a quarter of the final energy consumption in Barnim. One of the attractions of the energy district visited by the group from Poland and Germany is the Paul-Wunderlich-House in Eberswalde, built in Named after a famous modern artist born in the city, the Paul-Wunderlich-House is a zero-emission building and not only the seat of the district government but also the most sustainable public building in Germany. The construction of the building demanded a high level of interdisciplinary cooperation between architects and energy 6

7 consultants to keep energy-efficiency as a key criterion in the project while building a user-friendly house harmonised with functionality. The biogas power plant in Lichterfelde is another example of implementing a local low-emission strategy in the district. The biogas installation with a capacity of 499 kw was built in 2009 and supplies public buildings in the municipality of Lichterfelde with heat. The plant works by using plants from three farms located in the area and is operated in cooperation with the farmers. As representatives from municipalities were told, the biogas power plant in Lichterfelde is adapted to the environment, not the other way around which, according to the guide, should be applied as a principle to all such installations. The final point of the study trip was the Centre for Renewable Energies Hermann Scheer in Eberswalde. This centre exhibition centre is located in a zero-energy house (supplied exclusively from renewable energy resources) aims at the promotion of renewable energy sources in the region. The centre was a perfect place to reflect on some of the take-away-messages of the workshop and study trip as well as for having an outlook on further dialogue and cooperation. Implementing low-emission strategies - The first step is decisive The discussion of the workshop and the case studies presented clearly showed in what ways local authorities can be key players in national climate policy, with decisive roles in countries low-emission development paths. The sharing of successful local climate policies and practice through bilateral exchanges as during the workshop - can contribute significantly to the diffusion of ideas and ultimately, to achieving national climate goals and also financial savings at municipal level. To implement low-emission strategies in German and especially Polish municipalities is often a challenge. Many obstacles have to be overcome, be it an unfavourable legal basis or lack of financial resources. However, good practices discussed at the workshop showed in what ways a successful implementation can be possible ranging from basing local strategies on the strengths of a region, involving local stakeholders, choosing smart instruments for financing to linking projects with overall concepts and strategies. However, in the end, as participants stressed, it is important to make the first steps. The workshop also showed the great interest of representatives from both countries to continue a good practice exchange focused on specific topic areas and also including representatives from associations of cities and municipalities. The concluding workshop of the project in March 2015 taking place in Warsaw will take up these points. 7