Sustainable Housing Policy in Mexico - Housing NAMA as part of the

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1 Sustainable Housing Policy in Mexico - Housing NAMA as part of the transformation of the housing sector.

2 Content 1 About the Mexican National Housing Commission (CONAVI) 2 Base Scenario and Development of Sustainable Housing in Mexico. 3 Mexican NAMA for Sustainable Housing. 4 Financial mechanisms and incentives for sustainable housing NAMA Facility 5 Next Steps, Lessons learned and Conslusions 2

3 1About CONAVI 3

4 MEXICAN NATIONAL HOUSING COMMISSION Two main functions. 1. Responsible for Implementing and Coordinating the National Housing Policy. 2. Provides Subsidy to medium and low income population to: Purchase a new or used house. Refurbish or expand a current house. Acquire an equipped lot. Build a new house through the Self- Production Process. 4

5 In 2013 the Mexican President Enrique Peña Nieto stated that the Housing policy will be implemented within a coordinated regulatory framework by the following actors: Housing Law National Development Plan National Housing Program Head of Housing Sector CONAVI Coordination, Schemes and Subsidies SHF Development Bank INFONAVIT Worker s Housing Fund, private sector FOVISSSTE Worker s Housing Fund, public sector Institutional strengthened Strengthened housing agencies Certainty and stability in public housing policy New private sector stakeholders and a diversified industry Stable resources within the sector 4

6 The National Housing and Urban Development Policy promotes Sustainability in its three main pillars: ENVIRONMENTAL Control urban sprawl, advances in the efficient design and quality of housing and sustainability in the buildings as a whole. ECONOMIC Use of existing urban infrastructure and equipment, economic savings in transportation, and increasing of energy efficiency in housing. SOCIAL Improved quality of life, by having more comfortable and better located housing. 4

7 Base Scenario and Development of 2in Sustainable Housing Mexico. 6

8 Time line and background of sustainable housing in Mexico today Creation of concept Creation of CONAFOVI (CONAVI). Pilot projects with Ecotechnologies. Sustainable Urban & architectural Guides. Green Mortgage start up. Housing Code Definition of strategy Pilot projects for Net Zero Energy Houses in COP 16. New model for sustainable urban design politics. NAMA for Sustainable Housing. SISEViVe Ecocasa in RUV Ecocasa Program as a part of the NAMA. Implementation ROP CONAVI: subsidy incentives for NAMA. First Ecocasa was built. NAMA Facility Fund. NAMA for Existing Home pilot project. Capacity building program (users, developers, authorities). 8

9 Why to implement a policy focused on Sustainable Housing? 1 There are 31.6 million households, of which 8.9 million are in housing deficit in Mexico. It is expected to have 40.8 million households in The current National Housing Policy aims to address the housing deficit, by improving the quality of housing, the location and the environment in which it is located. 3 Mexico has made an international commitment to reduce its CO 2 emissions in 50% by 2050, compared to the levels registered in The residential sector is responsible for 16.2% of energy consumption in Mexico and around 4.9% of CO 2 emissions.* In 2030, energy consumption of all households will increase by 37%.** 5 By 2020, 3.6 million homes will be built, providing up to 25 Mt of CO2 emissions to the carbon footprint of the country. *IDEA Foundation (2013). National Strategy for Sustainable Housing. Environmental Component of Sustainability. Mexico ** SENER estimation, published by INE. 7

10 NAMA for Sustainable 3Housing. 11

11 NAMA for Sustainable Housing Aims to improve energy efficiency in housing, by mitigating at least 20% of GHG emissions expelled to the atmosphere by this sector. 1 First NAMA in the world for the housing sector. It promotes the overall housing design through costeffective and energy-efficient concepts. Linked to the whole house approach index. 2 Its objectives are: Extending the penetration of basic energy efficiency standards. Scaling up towards more ambitious efficiency standards. 3 The NAMA aims to transform the housing sector of the country in a low-carbon competitive market. Generating direct benefits and co-benefits. 4 Co-benefits: Economic savings in electricity, water and gas. Improvements in quality of life and environment within the housing. Improving quality of housing. 12

12 Whole House Approach Whole House Approach Climatic Zones Bioclimatic Architecture and Orientation House Typology Construction Systems, materials & eco-technologies

13 Stakeholders of Sustainable Housing in Mexico - National Stakeholders of Sustainable Housing in Mexico - International 14

14 Financial mechanisms and incentives for 4sustainable housing 19

15 Implementation of the NAMA for Sustainable Housing The main objective of the NAMA Facility is to masify the NAMA for Sustainable Housing across the country, by reducing the barriers and constrains surrounding its implementation. How? By promoting the penetration of basic efficiency standards in the entire new housing market in Mexico, throughout technical assistance and financial incentives for small and medium size developers and financial intermediaries. Financial Component 10 million EUR. Technical Component 4 million EUR. Since December DECC and BMUB are supporting the Mexican Government in implementing the Housing NAMA as the first project of the NAMA Facility. Mexico is the first country to enter this international funding from the NAMA Facility. 17

16 Public Policy Incentives 1 Prioritized Subsidy Following the new Housing Policy, CONAVI promotes the construction of Energy Efficient housing by prioritizing the Subsidy to those projects build under the NAMA standard. 2 Special Chapter of Sustainability on the New Building Code for Housing CONAVI is currently updating the Mexican Housing Building Code, which for the first time will include a special chapter on sustainability. It is intended to eventually scale this chapter to a NORM Category. 17

17 Financial Incentives ECOCASA Product Comprhensive Sustainable Improvement Program ECOCASA is supported with concessional loans and grants from international partners to give below-market refinancing to financial intermediaries, and developers to build energy efficient houses that reduces at least 20% of GHG compare to a conventional house. Lower interest rates compensate for the additional costs of implementing energy efficiency measures in the houses, making them as affordable as an standard hose for low income families. Based on the: Thanks to this program the current housing stock could be refurbished using the energy efficient standards of the NAMA. 17

18 Capacity Building 1 Capacity building within enterprises (supply) and sensitization on the buyer side (demand) is encouraged. 2 Promotion of green development within the materials and environmental technology industries, to raise standards of efficiency and quality of the products installed. 17

19 Achievements of the Incentives developed under the NAMA Facility implementation Process PUBLIC POLICY INCENTIVES / PRIORITIZED SUBSIDY 33,918 houses built. FINANCIAL INCENTIVES / ECOCASA PRODUCT 15,496 houses built. CAPACITY BUILDING 1582 people trained in the use of EE evaluation tools. Public Policy and Financial Incentives Foster the industry of Environmental technologies and materials. Technical Assistance and capacity building to targeted population. Economic, environmental and social bnefits for government, enterprises and users

20 Numbers in NAMA massification 1 From 2015 to 2016, participation of housing developers has increased in more than 300%. 2 49,414 NAMA houses today have a potential to reduce tons of CO 2 each year. 3 CONAVI has destined $80 million US dollars in subsidizing NAMA houses. 4 1 in10 houses subsidized by CONAVI in 26 States and 39 cities are NAMA housing developers participate in the massification of the housing NAMA. the development of the "inside" solution is encouraged and technical advice is given. 6 The MRV showed energy savings of up to 40% on electricity and gas in semi cold and warm climates. 21

21 NAMA Houses in the social segment and mitigation potential Note: The potential average mitigation is 0.62 Tons CO2 per year per household. Source: CONAVI / GIZ, 2016 (elaborated with data from the 2S2015 to June

22 State involvement in NAMA housing construction Source: CONAVI with data from September 2015 to May

23 Next Steps, Lessons learned and 5Conclusions 19

24 Where are we? International support NAMA Facility BMUB/DECC BMZ BMZ/CTF KfW/BID (ECOCASA) Canada, UK BMUB (ProNAMA) BMZ (PES-EDI) Development Housing NAMA Technical design, MRV system, Financial instruments, Pilots. Towards a Sustainable Housing sector Sustainable Eco-technologies have penetrated the market, The housing sector is generating mitigation. The private sector is investing in sustainable housing. Scaling Housing NAMA as Public Policy Training to private sector. Sensitization to users. Technology transfer, financing, monitoring. Initial implementation Simulation tools, financing and implementation, monitoring. BMZ (PES-EDI) Initiation Hipoteca Verde (Green Mortgage)" and Esta es tu casa (this is your house ) program. Source: CONAVI / SHF / GIZ/ KfW

25 Agenda: next steps for the Sustainable housing 1 Development of Tools: LCA Materials / Housing Location / Platform of materials and environmental technologies in RUV. 2 3 Automation of implementation of the sustainable housing NAMA process.. Development and implementation of the database for MRV of NAMA in RUV. 4 Industry and stakeholders sensitization and empowerment. 5 Development and implementation of two pilot projects in Merida and Monterrey, as part of the integrated application of the NAMA, in higher income segments with more ambitious GHG mitigation targets. 6 Massification of the NAMA for Existing Housing through the Comprehensive Sustainable Improvement Program. 30

26 Achievements is the Sustainable Housing Policy Mexico is a pioneer country in developing a policy of sustainability, focused on social housing. The Mexican NAMA for Sustainable Housing is one of the most advanced in the world in technical design and implementation. The experience of the Mexican Housing NAMA has being shared with many other countries that want to implement a NAMA. The Programs for sustainable housing developed in Mexico have received various awards internationally: Green Mortgage Building and Social Housing Foundation (BSHF) award, United Kingdom ECOCASA Lighthouse Activities Award, UN-COP 19, Varsovia Green Ashden Award, United Kingdom Strategic partnerships and alliances with other institutions looking for a greater impact on GHG mitigation throughout the existing housing stock (FIDE). 26

27 Thank You. Guillermo de la Sierra Dmartini CONAVI 31