The German Funding System: opportunities and pitfalls

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1 The German Funding System: opportunities and pitfalls Meeting of Experts in Vilnius 24./ The Lithuanian National Support Programme for Energy Efficiency in Urban Quarters: Ministerial Stakeholders and Local Administration

2 Table of Content 1. The national urban development promotion programme (Städtebauförderung) 2. Funding opportunities for integrated energy efficient urban development from ERDF 3. Conclusions and recommendations 2

3 1. The national urban development programme (Städtebauförderung) 3

4 Funding of Integrated Urban Development Why funding of urban development? Local authorities with complex urban, functional and social deficits Rectification of urban deficits and loss of functions What are main goals? Preservation and refurbishment of buildings Renewal of the living environment and Revitalisation of city centres and district centres Main Approach Local authorities apply and coordinate funded measures Trigger for investments in urban environment Use of funding according to needs of local residents and households Precondition and central instrument are Integrated Urban Development Concepts (IUDCs) on district level 4

5 Thematic Goals Upgrading build environment Financing investments in buildings, apartments, living environments and the infrastructure at district level Strengthening social cohesion Funding for education and employment, integration, health and the local economy Retaining build cultural heritage Securing and support for buildings with historic significance Local actions for climate protection Applying energy building standards Fostering cooperation Encouraging local citizens, businesses and public authorities to work together 5

6 Investive Measures District/neighbourhood level Adjustment of urban infrastructure, including basic services Urban reorganisation Improvement of paths, roads, places Creation and maintenance of green and open spaces Upgrading (barrier free) accessibility of buildings and areas Building level Improvement or conversion of the existing building stock Preservation of building with city wide significance Refurbishment and needs-based conversion of vacant buildings Adaptation and refurbishment of public, social and cultural institutions Deconstruction of vacant, permanently empty buildings and associated infrastructure Measures supporting the re-usage of areas/buildings with vacant or rare usage 6

7 Non-investive Measures Development and updating of Integrated Urban Development Concepts (IUDC) Inter-regional development concepts (demographic change, securing public services) Neighbourhood-management to conduct and support realisation of measures Measures for activation of inhabitants, their participation and involvement Measures to support local economy (e.g. commercial street management, involvement of store owners) Networks for cooperation (e.g. between local authorities) 7

8 Integrated Urban Development Concepts (IUDC) Precondition for funding Integrated long-time view on district level Buildings, mobility, infrastructure, energy Designated area Formal designation (e.g. statute) Tax incentives coupled Steps to set up an IUDC: Analysis of the current situation Securing of integrated, cross-sectoral and management structures Organisation of a participative process Development of a target and implementation oriented action plan Securing the political and financial support 8

9 Funding principles Funding volume p.a. (federal level): 700 Mio. Euro + at least same amount from federal states Grants Local authority contributes one third of funding Cooperative financing usual, depending on classification of measures Tax incentives Conservation/refurbishment of buildings in development and redevelopment areas and for historical buildings Combination with further funding for urban development: (Financial) support for social housing Loans of KfW-programmes for infrastructure and energy EU Structural funding (ERDF) 9

10 2. Examples for using EU Funding for integrated energy efficient urban development a. Funding integrated projects of energy efficiency and urban development in Saxony ERDF OP b. Funding integrated project of energy efficiency and urban development in Brandenburg ERDF OP c. Innovative Actions (Art. 8, ERDF Regulation) 10

11 a. Support of Energy Efficiency in the ROP Saxony 11

12 Overview Priority Axis OP ERDF, Saxony PA A: Strengthening Research Innovation and Development (thematic objecitve 1) PA B: Enhancing the competitiveness of SME (thematic objective 3) PA C: Supporting the shift towards a low-carbon economy in all sectors (thematic objective 4) among others: Energy efficient investments in higher-education facilities and public buildings PA D: Supporting the adaptation to climate change as well as risk prevention (thematic objective 4) PA E: Sustainable Urban Development (Art. 7, ERDF regulation projects) (thematic objectives 4/6/9) Energy Efficiency as focal point of integrated urban development projects 12

13 PA E: Focus: Integrated Urban Development in the field of EE Integrated Development Concept: Precondition is a bunch of different, integrated measures in the funding area (Gebietskulisse) No single project funding Integration of local stakeholder for the development of the concept Measures has to be composed by two different thematic objectives of the OP Measures in defined neighbourhoods have to contribute to combate ecologic, economic climatic demographic and social disadvantages Funding only for indicated deprived neighbourhoods Award through a two-stage competition by the Länder ministry 13

14 PA E: Specific Objective: Reduction of CO2- emission in the neighbourhood Investive and non-investive measures on technical level like: a. Measures to improve the energetic balance of public buildings on neighbourhood level (e.g. structures for decentral heat supply) b. Renewable energy sources for heating (e.g. constructions for heat supply with storage components for renewable energy for heating and cooling of buildings) c. Measures for supply of energy efficient heating / cooling (e.g. integrated, innovative and transferable systems of local heat based on combined heat and power generation) 14

15 PA E: Specific Objective: Reduction of CO2- emission in the neighbourhood Investive and non-investive measures in complementary thematic fields: d) Low carbon mobility measures ( comprehensive integrated approaches on neighbourhood level for mobility management, e.g. SUMPS) e) combat inner-urban heat island effect (green infrastructure like green areas, green roof tops, green backyards, greening of facades f) Studies for local energy concepts and financing of energy advisors coordinating development and implementation of energy concepts in the neighbourhood and advising of residents g) IN EXCEPTINALLY CASES: new buildings with high innovative character in cooperation with universities or research institutions 15

16 Further investment to combine with EE measures within integrated concepts Protections, Support and Development of cultural heritage (thematic objective 6) Refurbishment and creation of cultural sites, ensambles or traditional buildings in cities Refurbishment and creation of urban and landscaped particularities (e.g. barrier free access, mulitmedia activities to attract more tourists in urban areas) Increase of urban environoment (thematic objective 6) Comprehensive development of green Infrastructure Development of residential environment Refurbishment of industry brownfields Strenghtening of urban areas as economic and social spaces (thematic objective 9) Public infrastructure in the living environment (e.g. age appropriate access) Stregthening of local economy (e.g. SME support, management for commercial areas, management of industrial real estate management) 16

17 b. Support of Energy Efficiency in the ROP Brandenburg 17

18 URBAN und Neighbourhood Future (ZIS 2000) as Pathfinder for the Mainstream URBAN I URBAN II Future in the Neighbourdhood ZIS 2000 Sustainable Urban Development Urban - Rural Knowlege Exchange Brandenburg / German-Austrian Urban Netwoork Neighbourhood Entire City Urban Rural Partnerships Pilot Action Mainstream + experimentation fully mainstream 18

19 Widened Funding Approach in ROP in Investment measures: attractiveness- and increase of functionality, urban mobility, social and cultural infrastructure, neighbourhood management and neighbourhood-marketing Urban development based on integrated urban development concept in the entire city area (115 Mio. ) Additionally: revolving urban-development fund (15 Mio. ) Cooperation of public authorities / municipalities (at least one central place and a further municipal partner) for urban-rural development approach 3 thematic fields: infrastructure/environment, mobility energy, economy/tourism No new concepts, reference to already existing integrated urban and regional development concepts Combination with at least one further thematic objective Support of Energy Efficiency Projects outside the urban-rural competition 19

20 Supported EE Measures in Detail (draft) Projects for energy-efficient neighbourhoods: High efficient heat and power regeneration Energy-centres for heat generation on renewable energy basis Energy storage constructions in gas/heat from renewable energy sources and storage of cooling-energy from renewables Energy-efficient long-distance heat and cooling systems Environment studies Pilot actions on new technologies Support of energy manager for neighbourhoods Support outside the urban-rural competition for public buildings: Investments in energy efficiency and renewables Pilot-projects in new buildings for implementing the EPBD directive Systems for energy re-extraction and for local heat networks 20

21 Low Carbon Mobility Measures Mobility Concepts and Management: SUMP concepts, management, connection between different modes Better accessibility of cities and regions in Brandenburg for bikers biking concepts, construction of biking lanes etc.. Investments in public transport systems Reconstruction of connection-interfaces to public transport, P&R, K&R, B&R systems, Low-carbon propulsion systems for public transport systems Model systems for climate and energy-efficient propulsions Propulsion-systems public transport vehicles Certificates on technical conceptions and feasibility studies or new maintenance facilities 21

22 Compulsory Combination with Further Measures EE measures implemented within an integrated urban or urbanrural development strategy has to be combined with further thematic objectives (e.g. environment/ Infrastructure/ climate protection/ social inclusion) Infrastructure and environment: Green infrastructure Regeneration of brownfields Analyses of urban climate and air protections Measures of biologic diversity Refurbishment and infrastructure for inclusive education facilities Economy / SME: e.g. refurbishment of buildings and brownfields for SME and start-ups 22

23 Programming of SUW ERDF: PA 3 CO₂ ERDF: PA 4 urban-rural development ESF IP 4c IP 4e IP 6e IP 9b IP 9b EAFRD Measures for integration and ecucation of immigrants Energy Efficiency Sustainble Mobility Urban Environment Refurbishment of Education Facilities Economic Strengthening of deprived neighborhoods support of local development strategies components to compose a comprehensive integrated development strategy with single measure 23

24 Procedures for selecting strategies / Concepts ministry for Infrastructure urban-rural cooperations external consultant jury Responsible MA from ERDF, ESF, EAFRD call for the competition application (strategy) formal pre-check result of competition classification to ESI-funds Start of approval procedure

25 c. Innovative Actions 25

26 3: Innovative Actions, new special fund EC (Art. 8, EFRE-VO) Project volume: 2 5 million For cities and city-agglomerations with more than inhabitants Co-financing rate is 80% Project duration: 3 years (maximum) Calls and implementation will be managed by a programme secretariat in Lille First call is currently being prepared: start approximately 2nd half 2015 Pre-conditions: Very high innovative character High quality Involvement of external knowledge Clear output-orientation Transferability 26

27 3. Conclusions 27

28 Conclusions Sectoral disintegrated funding approach single investment measures Improvement of district heating???? Use of RES???? EE refurbishment of buildings???? urban mobility?? Social infrastructures?? Local economy Application and assessment on basis of single project concept IP 4.3 Ministry for Energy IP 4.1 Ministry for Environment IP 4.3 Ministry for Environment IP 4.5 Ministry for Transport IP 8.5 Ministry for Social affairs IP 9 Ministry for Economy 28

29 Conclusions The integrated programming approach (Brandenburg /ITI) ERDF: PA 3 CO₂ IP 4c IP 4e ERDF: PA 4 IP 6e IP 9b IP 9b ESF Social infrastructures / services EE refurbishment of buildings / RES / improvement of district heating Sustainble urban mobility Urban Environment / green areas Refurbishment of Education Facilities Economic Strengthening of neighborhoods Integrated Funding Programme Application and assessment on basis of integrated concept Integrated energy efficient urban renewal concept 29

30 Conclusions supporting integrated concepts IP 4.3 IP 4.3 IP 4.3 IP 4.3 IP 4.3 IP 4.3 IP national funding One stop shop for local authorities: assistance and guidance to funding programmes Social infrastructures/ services EE refurbishment of buildings Adaptation of district heating Local economy RES green areas Sustainble urban mobility Integrated energy efficent urban renewal concept 30

31 Thank you for your attention! (German Association for Housing, Urban and Spatial Development) Littenstr. 10 D Berlin T: F: E: 31