Date post: | 20-Dec-2015 |
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Greening the economy:identifying a proper policy mix
Jan RączkaPresident of the Board
National Fund for Environmental Protection and Water Management
National Fund for Environmental Protection and Water Management
Plan of the presentation
• Poland – key challenges
• A recommended policy mix – housing sector
• Housing – new buildings
• Housing – exsisting buildings
• Conclusions
National Fund for Environmental Protection and Water Management
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
National Fund for Environmental Protection and Water Management
A recommended policy mix – housing
• New buildings
• Existing buildings
Any policy mix needs to be complemented with ecological education.
National Fund for Environmental Protection and Water Management
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 buildings
under a condition of achieving strict energy standards
National Fund for Environmental Protection and Water Management
Housing – new buildings. Subsidised morgage loans, efficient instrumentto support near zero - emission buildings
• Triple benefit:
o Improved energy efficiency is a viable investment
o Lower margins on mortgage as energy aware borrowers
are more creditworthy
o A small grant component from public funds to attract attention
of households
National Fund for Environmental Protection and Water Management
Housing – new buildings
• Conclusions:
o No need to cover all incremental costs by the state to achieve
required energy standard
o Market mechanisms work for the environment
National Fund for Environmental Protection and Water Management
• 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
Housing – exsisting buildings
National Fund for Environmental Protection and Water Management
Housing – exsisting buildings,lack of co-ordination between ecological & social policy (1)
• Households enjoy regulated electricity tariffs:
o Tariffs are two times lower than in Germany
o Subsidised electricity for the poor and the well-off results
in the inflated consumption
o Moderate social goal is at high economic & environment cost
to the society
National Fund for Environmental Protection and Water Management
Housing – exsisting buildings,lack of co-ordinations between ecological & social policy (2)
• The poor are eligible for housing allowances:
o Households do not face any financial barrier as extra
consumption of electricity is covered by the state
National Fund for Environmental Protection and Water Management
Housing – exsisting buildings
• Conclusions:
o Getting prices right
o Social instruments need to be accurately targeted
o Provide the poor with energy-efficient equipment instead
of subsidizing energy consumption
National Fund for Environmental Protection and Water Management
• Ecological policy is vulnerable to general politics
• Broad support for environmental priorities is a must for proper
co-ordination of sectoral policies
Conclusions (1)
National Fund for Environmental Protection and Water Management
• 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
Conclusions (2)