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Greening the economy: identifying a proper policy mix. National Fund for Environmental Protection and Water Management. Jan Rączka President of the Board. Plan of the presentation. Poland – key challenges A recommended policy mix – housing sector Housing – new buildings

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national fund for environmental protection and water management

Greening the economy:identifying a proper policy mix

National Fund for Environmental Protection and Water Management

Jan Rączka

President of the Board

slide2

Plan of the presentation

  • Poland – keychallenges
  • A recommendedpolicy mix – housingsector
  • Housing – newbuildings
  • Housing – exsistingbuildings
  • Conclusions
slide3

Poland – key challenges

  • Broad support for environmental priorities by politicians
  • Pressure of various interest groups
  • Co-ordination of sectoral policies
  • Too complex incentives
  • Unclear vision of a long term competitive advantage
slide4

A recommended policy mix – housing

  • New buildings
  • Existing buildings
  • Any policy mix needs to be complemented with ecological education.
slide5

Housing – new buildings

  • Strict energy standards (introduced earlier than required by the EU directives)
  • Financial incentives for households
  • Public institutions eligible for EU grants for buildingsunder a condition of achieving strict energy standards
slide6

Housing – new buildings.

Subsidised morgage loans, efficient instrument

to support near zero - emission buildings

  • Triple benefit:
  • Improved energy efficiencyis a viable investment
  • Lower margins on mortgage as energy awareborrowersaremorecreditworthy
  • A small grant componentfrom public funds to attractattention

of households

slide7

Housing – new buildings

  • Conclusions:
  • No need to coverallincrementalcosts by the state to achieverequired energy standard
  • Market mechanismswork for the environment
slide8

Housing – exsisting buildings

  • More ambitious standards for rehabilitated buildings
  • Financial incentives scaled to actual energy standards achieved after rehabilitation
  • Some buidings are not worth rehabilitating - a criterion to be defined
  • Co-ordination between ecological and social policies is needed
slide9

Housing – exsisting buildings,

lack of co-ordination between ecological

& social policy (1)

  • Householdsenjoyregulatedelectricitytariffs:
  • Tariffsaretwotimeslowerthanin Germany
  • Subsidisedelectricity for thepoor and thewell-offresultsintheinflatedconsumption
  • Moderatesocialgoalisat high economic & environment cost to thesociety
slide10

Housing – exsisting buildings,

lack of co-ordinations between ecological

& social policy (2)

  • Thepoorareeligible for housingallowances:
  • Households do not face any financial barrier as extra consumption of electricityiscovered by the state
slide11

Housing – exsisting buildings

  • Conclusions:
  • Gettingpricesright
  • Social instruments need to be accuratelytargeted
  • Providethepoorwithenergy-efficientequipmentinsteadof subsidizing energy consumption
slide12

Conclusions (1)

  • Ecological policy is vulnerable to general politics
  • Broad support for environmental priorities is a must for proper co-ordination of sectoral policies
slide13

Conclusions (2)

  • Environmental goals can be achieved through interlinking other policies with environmental standards
  • We can get more out of public money we have if we rebalance incentives
slide14

Conclusions (3)

  • Market mechanisms can be employed to contribute to the achievement of environment goals