Sustainable Housing in Mexico

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1 Sustainable Housing in Mexico NAMA as a part of the transformational change in the housing sector

2 Content 1 National Housing and Urban Development. 2 Development of Sustainable Housing in Mexico. 3 NAMA for Sustainable Housing. 4 Programs, Incentives and financial mechanisms for sustainable housing 1

3 National Housing and 1Urban Development. 2

4 The National Housing Policy is a model focused on promoting the orderly and sustainable development of the sector, to improve and regularize urban housing; as well as to build and improving rural housing. 3

5 . Urban model before 2012 The National Housing Policy, in order to bring down the housing backlog was characterized by promoting the production of mass housing. 40% of production was concentrated in five developers. Less coordination between institutions: SHCP - SHF / INFONAVIT - FOVISSTE / CONAPO CONAVI SEDESOL Few or no criteria for site selection. Beginning of implementing actions to pave the way for sustainable development and housing Actual urban model Promoting Sustainability in 3 areas: Environmental Control of urban sprawl, advances in efficient design and quality of housing and sustainable urban design. Economic Use of existing urban infrastructure and equipment, services, transportation due to the better housing location and cost savings by improving energy efficiency of housing. Social Improve of wellness through more comfortable spaces and better location. 4

6 Development of Sustainable Housing 2in Mexico. 5

7 Time line of Sustainable Housing in Mexico today Creation of concept Creation of CONAFOVI (CONAVI). Pilot projects with Ecotechnologies. Sustainable Urban & architectural Design Guides. Green Mortgage start up. Housing Code. Definition of strategy Creation of DUIS (DC). Efficient housing design criteria in Prerequisites for the subsidy program. CONAVI, ROP Creation of some regulations about energy efficiency in houses. Pilot projects for Net Zero Energy Houses in COP 16. New model for sustainable urban design politics. NAMA for Sustainable Housing. Sustainable Transversal Workshop. SISEViVe Ecocasa in RUV Ecocasa Program as a part of the NAMA. Implementation Creation of SEDATU. ROP CONAVI: subsidy incentives for NAMA. First Ecocasa built. NAMA Facility Fund. NAMA for Existing Home pilot project. Capacity building program (users, developers, authorities). Finishing of first NAMA pilot projects. Diffusion of NAMA program and its Incentives. 6

8 Sustainable Housing Actors in Mexico - Locally Sustainable Housing Actors in Mexico - Internationally 7

9 Why implement a policy for Sustainable Housing? 1 There are 31.6 million households, of which 8.9 million are in housing deficit in Mexico. 2 The residential sector is responsible for 16.2% of energy consumption in Mexico and around 4.9% of CO 2 emissions.* 3 The current National Housing Policy aims to address the housing backlog, improving the quality of housing, the location and the environment in which it is located. 4 Mexico is committed internationally, to reduce emissions CO2e to 50% below 2000 by 2050 *IDEA Foundation (2013). National Strategy for Sustainable Housing. Environmental Component of Sustainability. Mexico. 8

10 NAMA for Sustainable 3Housing. 9

11 NAMA for Sustainable Housing WHAT IS NAMA? NAMA is a set of actions that developing countries carry out voluntarily to contribute to global efforts to reduce greenhouse gases emissions. Developed countries are committed to support meaningful mitigation actions of developing countries through: funding, technology transfer and construction / capacity building; in a way that is measurable, reportable and verifiable. It aims to transform the housing sector of the country in a low -carbon competitive market. Generating direct benefits and co - benefits. Currently it is already being implemented. Main Benefits: Economical Savings (Gas, Electricity & Water) Fostering the development of a Green National Industry Improve of comfort and wellness Capacity building Improve the housing quality and bioclimatic design Better revenue and decreases energy subsidy 10

12 NAMA for Sustainable Housing. Techincal design Vertical Attached Isolated Considers primary energy demand (electricity, gas, water) based on the Whole house approach. Total energy consumption for the different housing typologies (isolated, adjacent vertical house) in the 4 major climate zones. 2 calculation tools to reach the Global Performance Index (IDG). + Climatic zones for NAMA. Fuente: IzN Friedrichsdorf Global Performance Index (IDG). Fuente: Infonavit Housing Tipology. Fuente: LOW CARBON architecture 11

13 Implementation of Mexican Housing NAMA 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. Initiation Hipoteca Verde (Green Mortgage)" and Esta es tu casa (this is your house ) program. Fuente: CONAVI / SHF / GIZ/ KfW

14 Programs, Incentives and financial 4sustainable mechanisms for housing 13

15 Implementation of Mexican Housing NAMA Technical Component 4 million Euro, 11/ /2017 Policy framework: Strengthening the NAMA as a public policy Systematization of MRV Supply-side: Capacity building to medium and small project developers. Technology transfer. Integrated application of the NAMA. Demand-side: Awareness-raising for final users and local authorities. Financial Component 10 million Euro, 01/ /2020 Financing-side: Credit guarantee program for bridge loans to small and medium-sized developers. Subsidy program benefitting small and medium-sized developers when using selected eco-technologies Project specific advisory services for small and medium project developers. Main objectives: Penetration of basic efficiency standards in the entire new housing market in Mexico Promotion of upgrading energy efficiency standards to more ambitious levels. 14

16 Incentives for Mexican Housing NAMA There is a prioritized subsidy for houses framed under the NAMA program, as a benefit to developers whose buildings use energy efficiency measures to reduce emissions of CO 2. The NAMA houses must reduce at least 20% of CO 2 emissions compared to a conventional house. This prioritization of the resources allocated for subsidy includes projects that meet the technical criteria of the NAMA and are located in urban containment perimeters (PCU). 15

17 Programs & Housing Units for Mexican Housing NAMA LAIF 5000 housing units (2015) 17,000 housing units ( ) housing units (in planning) 8,000-11,000 housing units (in planning) Reduction of at least 20% in CO 2 Emissions. Reduction of at least 20% in CO 2 Emissions. Reduction of at least 20% in CO 2 Emissions. Reduction of at least 20% in CO 2 Emissions. Prioritized Subsidy Preferential Rate in Bridge Loan Until 70% of subsidy for extra cost of measures Credit guarantees, preferential rate, direct subsidy for measures 16

18 Achievements in Sustainability in housing: Mexico is the first country in the world to implement a policy of sustainability focused on social housing in the context of NAMA. In this administration, we have invested about 11 billion 400 million dollars to build a total of 700 thousand homes that integrate energy efficiency measures in water, gas and electricity and generate savings of at least USD$ 25 in monthly energy expenses, to its inhabitants. 22,000 of these homes under construction are NAMA, meaning that they reduce over 20% of greenhouse gases emissions compared to conventional housing. This homes will reduce 800,000 tons of CO2 emissions throughout its life cycle (40 years). In 2015, there have being provided 121,800 subsidies for sustainable housing, which have contributed mitigating 18,000 tons of CO2. The Mexican government has earmarked subsidies, for energy-efficient housing construction, in this administration for more than 2 billion dollars and given the success of this program, we have received 225 million dollars from Germany, the UK and the IDB to promote the construction of such housing. Sustainability programs in housing have received several international awards: Lighthouse Activities Award, UN-COP 19, Varsovia Green Ashden Award, Reino Unido Development of Existing Housing NAMA. Technical design: Step by step retrofit to the optimal energy and environmental performance. In process: Pilot program for the retrofit of 10 homes in Merida. Strategic alliance with FIDE to implement a Guarantee Fund of USD$ 6 million for a line of credit of USD$ 60 million looking for a greater range in GHG mitigation in the existing housing stock (approximately 100,000 actions). 17

19 Thank you! CONAVI 18