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Financial incentives and streamlined regulations are needed to make Energy-Efficiency Renovations more feasible in Helsinki

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Mass urbanization post-World War II has left Helsinki with a legacy of ageing, energy-inefficient buildings. With these structures contributing significantly to carbon emissions, energy-efficiency renovations (EERs) are essential to achieving the city’s ambitious carbon neutrality goals by 2030. Addressing these emissions through EERs is crucial for climate change mitigation and strengthening the resilience of our urban infrastructure.

Properly managing EERs significantly improves their energy performance to meet modern sustainability standards, ensuring the longevity and sustainability of these buildings for future generations. However, reaching these goals is complex and hindered by financial, regulatory, and technical challenges. This blog post explores these key problems and the solutions proposed in my thesis, “Exploring the Barriers to Energy-Efficiency Renovations of Housing Associations in Helsinki, Finland”. This research draws on survey and interview data collected from professionals in Helsinki’s residential housing association industry.

Key Problems in Implementing EERs

1. Financial Constraints

The biggest hurdle for EERs in Helsinki is the substantial upfront investment required. Upgrading insulation, installing energy-efficient windows, and modernizing heating systems don’t come cheap. While long-term savings on energy bills and government subsidies help, they often don’t cover the initial outlay. The available incentives also usually don’t cover the ongoing costs beyond the initial setups, such as maintenance and operation expenses. Housing associations, already stretched thin by routine maintenance, find it hard to secure the necessary funds. Innovative financing solutions like green bonds and energy performance contracts can bridge this gap, spreading costs over time and making EERs more accessible.

2. Regulatory and Policy Barriers

Navigating Helsinki’s regulatory maze is another major challenge. Complex and inconsistent regulations can turn even the most enthusiastic renovator into a frustrated one. Housing associations must juggle numerous building codes and energy standards, which vary depending on the building’s age and type. This regulatory complexity leads to delays and increased costs. Streamlining these regulations and offering clear guidelines would simplify the process, encouraging more associations to undertake EERs.

3. Technical Challenges

Old buildings, though charming and full of character, are not easy to retrofit. Many of Helsinki’s structures were built with materials and techniques that don’t easily accommodate modern energy-efficient upgrades. Retrofitting can involve significant structural modifications, such as groundwork and foundation reinforcement for geothermal heat pumps, or replacing outdated electrical systems. These technical challenges increase the scope and cost of renovations and require specialized knowledge and innovative solutions. Developing new retrofit technologies and practices tailored to older buildings is crucial for overcoming these hurdles.

4. Lack of Awareness and Misinformation

Finally, there’s the issue of awareness and public perception. Many property owners and residents don’t know about the benefits of EERs. They might not understand the long-term savings on energy bills or the positive environmental impact. This lack of awareness can lead to skepticism and resistance, particularly when the upfront costs seem high. Informational campaigns and educational programs are essential to bridge this knowledge gap. Clear, accessible information about financial incentives, potential savings, and environmental benefits can motivate stakeholders to support and participate in EERs.

Recommended Strategies

One of the main arguments in my thesis is the need for robust financial incentives and support. Government subsidies, grants, and innovative financing solutions can make EERs more feasible for housing associations. Comprehensive financial models that consider both short-term costs and long-term savings are crucial. There is a vital need to redesign these incentive programs to offer more comprehensive support that extends throughout the lifespan of the EERs. This could involve increasing financial incentives or offering tax reductions for energy savings achieved over time. Additionally, providing more explicit information and guidance on accessing and benefiting from these incentives could improve their effectiveness and encourage more widespread adoption of energy-saving measures. Targeted financial support for low-income communities ensures that the benefits of EERs are accessible to all, promoting social equity.

My thesis also emphasizes the need for streamlined regulations and policies. Simplifying the regulatory framework and ensuring consistency across different levels of government can reduce confusion and administrative burdens. Policies designed to actively encourage energy efficiency improvements through incentives and support programs are essential.

Addressing technical challenges requires innovation. Advances in building materials and construction techniques, such as high-performance insulation and energy-efficient windows, offer new opportunities for improving energy efficiency in older buildings. Collaboration between engineers, architects, and housing associations is crucial to designing effective and feasible EER projects.

However, these efforts will fall short without enhanced awareness and education. Informational campaigns and educational programs can help property owners and residents understand the advantages of energy efficiency improvements. By engaging residents in the renovation process and demonstrating the tangible benefits of energy-efficient buildings, we can encourage a culture of sustainability and energy awareness.

Insights from the Decarbon-Home Survey

My analysis of the Decarbon-Home survey data reveals a promising trend among Helsinki residents, who are well-informed about housing carbon footprints and prefer renovations over new builds, aligning with housing professionals’ views on carbon reduction benefits. Yet, there’s a crucial need for alignment on information access and trustworthiness, as residents rely more on traditional media, which they find less trustworthy compared to expert opinions. Addressing this communication gap can significantly enhance public support for EERs and climate policy. This gap presents an opportunity for municipalities and construction experts, who are highly trusted by the public, to increase communication and share the latest information on energy efficiency, likely leading to greater community engagement and support.

In the end, EERs aren’t just about reducing carbon emissions; they’re about building a more sustainable future for Helsinki. By addressing financial constraints, regulatory barriers, technical challenges, and a lack of awareness, we can make significant strides towards carbon neutrality and a more sustainable future. It’s time for coordinated efforts from government bodies, housing associations, and residents to make this vision a reality. Investing in EERs enhances the quality of life for residents, plays a vital role in mitigating climate change, and will protect the environment for generations to come.

Writer

Gillian Henderson is a recent graduate from the University of Helsinki’s Master’s of Urban Studies and Planning. Her thesis “Exploring the Barriers to Energy-Efficiency Renovations of Housing Associations in Helsinki, Finland” is available on HELDA, the University of Helsinki Open Repository.

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Hello, parents of children and youngsters living in the capital region! Participate in a research interview

We are looking for diverse households – now, especially families with children and youngsters! – to share their experiences related to housing. The information collected in the study aims to address challenges related to sustainable living.

By participating in the research, we will interview you on everyday aspects of housing as well as themes related to home maintenance and repairs. The interview lasts about 60-90 minutes.

Among the participants, there will be a drawing for one 300-euro (taxable) cash prize.

Sign up for the study through this link: https://elomake.helsinki.fi/lomakkeet/128377/lomakkeet.html or by using QR code:

Decarbon-Home project

The research is part of a Strategic Research Council funded project Towards carbon-free homes (Decarbon-Home).

Participate – your contribution is crucial!

The project researchers will provide additional information about participating in the study:

Sara-Ellen Laitinen, University of Helsinki (sara-ellen.laitinen(at)helsinki.fi)

Elina Tikkanen, University of Vaasa (elina.tikkanen(at)uwasa.fi)

Image: Piia Keto has illustrated project’s research results

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Suburbs in need of energy renovations

Apartment buildings from the 1960s and 1970s in Finland are usually given an energy efficiency rating between D and F. Renovations have the potential to improve energy efficiency and lower the climate impact of housing.

Over a third of apartment buildings in Finland were built in the 1960s and 1970s. The repair debt of this housing stock is a challenge – these apartments are typically in need of an extensive renovation.

Energy efficiency improvements and updating of the heating systems are typically carried out in pursuance of rehabilitation. The rehabilitation projects provide an opportunity to lower greenhouse gas emissions. In addition, the energy subsidy granted by The Housing Finance and Development Centre of Finland (ARA) since 2020 is accelerating renovations in Finland.  

Suburbs in Helsinki, Joensuu, Turku and Vantaa  

In this blog post we examine the characteristics and present state of building stock in Helsinki, Joensuu, Turku and Vantaa, in particular the suburbs. These cities are involved in the newly launched Decarbon-Home research project, which studies, among other things, the energy efficiency of suburbs, energy renovations and socio-economic factors, segregation and residents’ views on housing and energy solutions.  

The age of the urban building stock varies from region to region according to the stage when the population has grown. For example, in Helsinki the share of the old apartment houses is significantly higher than in other cities. On the other hand, the population of Joensuu and Vantaa has grown rapidly since the 1960s, which is reflected in a large part of the newer building stock. In Turku, almost half of the apartment buildings were built in the 1960s and 1970s. 

Modest level of energy efficiency 

The majority of apartment buildings built in the 1960s and 1970s are quite modest in terms of energy efficiency as the energy efficiency class varies between D and F. In Helsinki and Turku, some apartment buildings reach the classes B and C, while in Joensuu the best are rated D. In Vantaa, even 62 % of the apartment buildings from the 60s and 70s in the energy certificate register belong to category F. Helsinki and Turku, the building stock of the 60s and 70s has slightly higher ratings compared to the whole country. 

Based on the building and dwelling register, district heating (89%) and oil heating (9%) are the most common forms of heating of apartment houses. Almost all apartment buildings built after 1980 are connected to the district heating network. Among the four cities under examination, Turku and Joensuu have most oil-heated properties. On the other hand, in recent years, some residential apartment buildings have disconnected from the district heating network and switched to geothermal heating, for example. 

Increased segregation 

Although the segregation of residential areas is a topical issue in Finland, and this debate often focuses on suburban areas, the socio-economic development of suburbs has been studied relatively little since the 1990s. The reference we use in this blog post is Stjernberg’s analysis of the socio-economic status and development of the Helsinki region’s suburbs built in the 1960s and 1970s, published in 2017. The data  ends in the year 2014. 

Helsinki was one of the least segregated capitals in Europe in the 1990s, but since the 1990s, socio-economic disparities have increased both in Helsinki and elsewhere in the Helsinki Metropolitan Area. This is particularly pronounced in certain suburbs that have lagged behind other areas. Certain socio-economic differences are emphasized in the suburbs built in the 1960s and 1970s in the Helsinki region compared to the average figures in the Helsinki region. For example, there are more unemployed, foreigners, aged (over 65) and people with low income and low education than in average. The share of rented apartments varies significantly between different suburban areas although according to general conception, suburbs are dominated by rental housing. In some of the suburbs of the Helsinki region built in the 1960s and 1970s, more than 80 per cent of the housing stock consists of owned apartments, but in others the share is less than 20 per cent.

In the Decarbon-Home project, we study the residents’ characteristics described above also in other suburban areas in Finland. We will explore, for example, how unemployment, low income or the high age of residents affect the possibilities for improving energy efficiency. 

Writers: 

Hanna-Liisa Kangas works as a senior research scientist in climate and energy policy at the Finnish Environment Institute. Research and promoting climate-wise construction is a matter of heart for Hanna-Liisa, because something must be left of this planet for future generations.

Santtu Karhinen works as a researcher in energy economics at the Finnish Environment Institute. Santtu is particularly interested in energy efficiency issues of buildings and will soon be able to use this knowledge for his own building project. 

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