European Energy Award: How to use foreign experience for green reconstruction of Ukrainian communities
The challenges caused by Russian aggression are prompting Ukraine to find effective ways to implement the principles of green recovery at the national, regional and local levels. One of the tools successfully tested in Western countries for implementing interdisciplinary planning approaches for municipalities is the European Energy Award (EEA) quality management and certification system (hereinafter referred to as the Award).
On 19 November, the Association of Energy Efficient Cities of Ukraine (EECU), the National Office of the EEA in Ukraine, brought together representatives of national and regional authorities, regional development agencies and foreign experts for a webinar entitled ‘Understanding Approaches to Managing and Supporting the European Energy Award in Different Countries’. The event was aimed at exploring the instrument by focusing on the management decisions and funding models used in countries such as Switzerland, Luxembourg, Albania and Tunisia. You can watch the online recording of the meeting below, and in this post we share the key ideas from the presentation and discussion.
Over the three decades of its existence, the EEA has proven its effectiveness for achieving energy and climate goals in Europe and is gradually expanding its geography to countries such as Morocco, Tunisia, Chile and Colombia. The certification system covers almost 2,000 municipalities, including 12 Ukrainian ones (the EEA National Office in Ukraine was launched in 2018 with the support of the Swiss government).
The community certification process consists of several stages
The municipality makes a political decision to pursue EEA at a city council session and forms a coordination and working group, which is constantly supported by an accredited external EEA Consultant. ‘The consultants help municipalities at all stages, from strategy development to audit. Thanks to their expertise, cities get access to the best practices and tools for implementing energy efficiency measures,’ says Caroline Hüwiler, Project Manager at ENCO Energie-Consulting AG.
With the help of a consultant, the community conducts an inventory and qualitative assessment of its current progress in energy, climate and mobility issues, and then develops a detailed action programme for potential improvements. The next step is to implement the approved action programme, monitor its implementation and undergo periodic audits to assess the results achieved and to pass the certification procedure. After confirming progress in implementing energy policy and environmental protection measures based on the results of an external audit, the community receives a regular or Gold EEA Certificate. This factor encourages municipalities to join and use the EEA to promote their own communities and create an attractive environment for investors.
‘In the European Union, most cities in Switzerland use the EEA as a tool for competition, building a city's reputation in order to have a better rating, attract funding, and compete with others for the right to be a gold-awarded city. In Ukraine, we see the EEA tool as a useful tool not only for building a reputation for strong cities, but also for helping cities with their planning,’ says Svyatoslav Pavliuk, Head of the EEA National Office in Ukraine.
The webinar ‘Understanding Approaches to Managing and Supporting the European Energy Label in Different Countries’ was the first public presentation of the new project of the Association ‘Energy Efficient Cities of Ukraine’, focused on the institutionalisation and further development of the EEA. The project will last for 5 years and involves about 35 communities in the implementation of the Award. Silvio Giroux, representative of the Swiss State Secretariat for Economic Affairs, announced that the discussion of concrete steps will begin in January 2025.
At the same time, Svyatoslav Pavliuk, Head of the EEA National Office in Ukraine, emphasised: ‘The participation of cities in the CES involves paying for the services of consultants and auditors, as well as an annual fee. Governments of different countries and regional authorities support the participation of cities by covering such costs or creating other incentive mechanisms to develop cooperation. In the projects we will support in the coming years, we plan to cover most of these costs with donor funds, but we should think about building a stable system.’
Dmytro Petrunin, Head of the Energy Efficiency Department at the Ministry of Communities and Territories Development of Ukraine, focused on the fact that Ukraine is making every effort to gradually implement European approaches and recognises the potential of the EEA in establishing planning processes: ‘Despite the martial law, the Ministry of Infrastructure [Ministry of Communities and Territories Development of Ukraine - ed. note] is actively working on the development and implementation of effective mechanisms, including improving the efficiency of energy consumption in Ukraine, introducing energy management, thermal modernisation of buildings and defining standards for such thermal modernisation, developing renewable energy and implementing European regulations, and much more. At the same time, we are constantly studying and adopting the best practices of our European partners. One of them is the European Energy Award, which is an important tool for creating efficient and energy-independent communities.’
According to Roman Radchenko, Deputy Head of the Department - Head of the Department for Regional Development and Work with Local Self-Government of the Department for Regional Development and Administrative Services of the State Agency on Energy Efficiency and Energy Saving of Ukraine, the introduction of the EEA is an impetus for stimulating sustainable community development, as the Mark helps local authorities to effectively plan, develop, implement and evaluate the effectiveness of energy efficiency, renewable energy and decarbonisation measures. ‘This is a continuous development of the competencies and professional qualities of the municipality's energy team members. This is a real opportunity to identify the community's weaknesses and strengths in the context of the best European approaches and, most importantly, to formulate a detailed action plan to improve the performance of municipalities.’
The participants agreed that studying foreign experience and being open to building cooperation with partners is important on this path. Therefore, ENCO experts shared their experience in adapting the EEA methodology in European countries and explained why these countries have recognised the certification system as an effective planning tool and what mechanisms are used to support it institutionally.
Switzerland
Switzerland was one of the first countries to develop and successfully implement an effective municipal energy certification system, which is essential to achieving the national goal of zero emissions by 2050. The system is being implemented in 628 municipalities and is based on a decentralised approach, local community engagement and close cooperation between different levels of government.
‘In Switzerland, we have many municipalities that are financially sound and stable, with high levels of income. But when it comes to smaller municipalities, they often face a lack of funding with difficulties in obtaining funding.’ At the beginning of the introduction of the EEA, support for such municipalities was relied on the state, but now it is mainly provided at the regional level,’ shares the features of this model Maren Kornmann, Project Manager at ENCO Energie-Consulting AG.
In general, the funding system is based on a combination of state support, municipal contributions, and additional funds raised through projects and partnerships. There is an extensive support network that includes an association of municipalities, consultants, regional offices, and other organizations. Decisions are made at the municipal level, but in close coordination with the national government and the cantons. “There is a great need for coordination. We have a very decentralized system, very often decisions are made at the lowest level, at the municipal level, but nevertheless, the national government sets the goals. Municipalities are already implementing all this in accordance with available resources and local needs,” the expert adds.
Luxembourg
Luxembourg's approach to the implementation of the SES is somewhat different. The country has an ambitious program aimed at achieving climate neutrality, which involves the active participation of municipalities. In contrast to the decentralized Swiss model, Luxembourg has a centralized system where the state plays a leading role in setting targets, financing and monitoring implementation. Municipalities are actively involved in the process of implementing the EEA, signing agreements with the state and committing to achieving climate neutrality. In return, the state provides significant financial support to municipalities, including subsidies, bonuses, and funding for consultants.
It is interesting that the system is based on the principle of “payment for results,” meaning that municipalities receive funding in proportion to the results achieved.
Albania and Tunisia
As for Albania, in an effort to integrate into the EU and achieve climate neutrality, the country has developed a national energy climate plan. However, due to limited financial resources, especially in smaller municipalities, it is looking for innovative solutions. One of these solutions is the introduction of an energy management system in municipalities based on European standards and the creation of a special fund to finance energy efficiency projects. Albania sees Luxembourg's experience as a role model and hopes to attract international partners to finance its ambitious plans.
“Albania has problems with finances and, for example, Tirana has more concentrated revenues. But other municipalities have much less capacity, and therefore a lot of projects and programs depend on the World Bank and other international financial institutions,” comments Maren Kornmann, Project Manager at ENCO Energie-Consulting AG. Municipalities implementing the EEA in Tunisia also have many parallels with the Albanian context in terms of management structure.
Ukraine
The presentation of foreign experts prompted the participants to think about the format of future cooperation and the development of mechanisms for state support of the EEA in Ukraine. According to a representative of the State Agency on Energy Efficiency and Energy Saving, the Agency seeks to strengthen cooperation with local authorities in developing local energy plans in the regions, implementing energy management systems, conducting energy audits, and energy certification of buildings, and therefore, it could try to seek support for the development of the EEA in Ukraine within the framework of the Decarbonization Fund of Ukraine. “I am convinced that we need to join forces, that our cooperation, mutual support and exchange of expert knowledge will make our communities more sustainable, energy efficient and environmentally friendly,” said Roman Radchenko.
“Our expectation is that the EEA in Ukraine will become a good tool to help cities plan their reconstruction and energy transition. We hope that this tool will be not theoretical, but very real and very practical and supported by the possibilities of small solid projects to demonstrate how it works,” summarized Svyatoslav Pavliuk, Head of the EEA National Office.