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Climate protection is important to over 80 percent of Germans - but this should not be reflected in higher rental costs. In order to increase the acceptance of energy-efficient renovations, Deutsche Wohnen has developed a model of how climate protection and social compatibility can come together. The "Concept for Socially Compatible Climate Protection in the Building Sector" aims to significantly increase the rate of refurbishment in existing buildings in order to achieve national climate protection targets. At the same time, an economic stimulus package worth billions is being initiated.

For 89 percent of all Germans, environmental and climate protection is important or even very important. But it must not translate into excessive costs for rent. A maximum of fifty euros is what 87 percent are willing to pay additionally each month. This is the result of a survey conducted by the opinion research institute Kantar TNS on behalf of Deutsche Wohnen. And this is precisely where the concept of the future Berlin DAX company, published today, comes in. "Germany can only achieve its climate targets if the approx. 40 million flats are upgraded in terms of energy efficiency. However, the refurbishments actually implemented have so far fallen far short of the possibilities. We urgently need a renovation offensive," explains Michael Zahn, CEO of Deutsche Wohnen SE. However, energy-efficient refurbishments often fail due to the concerns of tenants who fear higher financial burdens. The result: refurbishments falter and remain at a low level.

"Climate protection and tenant protection must not be played off against each other," says Michael Zahn. This is precisely where the concept developed by Deutsche Wohnen comes in. It provides for tenants to be supported in the costs of energy-efficient renovations by the Energy and Climate Fund (EKF), which the federal government has set up as a special fund since 2011 via the CO₂-taxation should be relieved. In this way, the state, landlords and tenants would work together to protect the climate.

Climate protection is a task for society as a whole

This is therefore a solution for society as a whole, which the majority of Germans would also support in principle. When asked in the representative Kantar population survey who should bear the costs of energy-efficient renovations, 70 percent of the respondents named "tenants, landlords and the state together".

Deutsche Wohnen's concept now takes up this perspective and ties in with the German government's plan to make Germany largely climate-neutral by 2050. The building stock plays a key role in this, as it accounts for around one third of the national CO₂-emissions. Against this background, an increase in the renovation rate from currently only one percent to at least 2.5 percent per year is urgently needed. This corresponds to about 600,000 additional housing units that would have to be renovated every year. In this way, 100 million tonnes of CO₂ additional savings.

With this concept, Deutsche Wohnen wants to initiate a broad political and social discourse. It is united with the entrepreneurial alliance Stiftung 2°, of which Deutsche Wohnen is a sponsoring company, in the guiding principle of climate-friendly and socially acceptable economic activity. "The challenge of climate protection needs answers from society as a whole - companies, politicians and also citizens are called upon. I am therefore pleased that Deutsche Wohnen is presenting its concept as an important contribution to the debate on the role of the building sector in climate policy. I look forward to the discussions on this. Because one thing is clear: we must increase the renovation rate enormously in order to achieve our climate goals. And we have to do this in a socially responsible way to bring people along with us. Deutsche Wohnen's concept shows ways to do this and illustrates how climate protection can work as an economic stimulus programme," says Sabine Nallinger, Director of Stiftung 2° - German Entrepreneurs for Climate Protection.

According to Deutsche Wohnen's calculations, craft businesses and other trades involved in construction would benefit from additional orders amounting to 22 billion euros per year.

And this is how the funding from the Energy and Climate Fund (EKF) would be provided in concrete terms:

• In the case of a refurbishment, the landlord usually pays all the costs first, which can then be passed on to the rent at a rate of up to 8 per cent per year - depending on the cap.
• The proposal is for the EKF to pay the full 8 per cent of the modernisation levy in the first year, so that tenants are not burdened.
• This subsidy melts away linearly from year to year over 15 years and tenants slowly join in the climate costs.
• At the same time, the tenant benefits from lower energy consumption and greater living comfort from day one.
• In addition to tenants, owner-occupiers of housing should also benefit from this support in the same way.

The necessary funds are already available. No additional budgetary funds need to be provided by the state. This is because the EKF is essentially fed by the proceeds from certificate trading within the framework of the CO₂-pricing. The introduction of national emissions trading for the heating market from 2021 offers the opportunity to upgrade the EKF to the central funding instrument in the building sector. From then on, heat suppliers must emit CO₂-certificates and will pass on the resulting costs to the end consumers. So those who heat more as consumers have to pay more for the climate. Through the proposed funding concept, these funds flow back into the building sector and are used for measures that benefit climate protection and the energy transition.

Increasing acceptance of refurbishment projects and relieving the burden on tenants

Deutsche Wohnen's concept - of promoting energy-efficient modernisation in buildings through the EKF - means that tenants actually benefit from a lower overall rent in the first few years. For example, a Berlin family living in a 90-square-metre old flat would save around 4,300 euros over the funding period. In addition, the energy costs of the flat are almost halved. Thus, the most important obstacle, namely the cost burden for the residents, could be solved pragmatically.

The result would be a milestone on the way to a climate-neutral building stock, from which everyone would benefit: Tenants and owner-occupiers would be relieved, landlords would experience greater acceptance of modernisation projects and Germany would be able to make its promised contribution to climate protection.

Further information on the concept:
www.deutsche-wohnen.com/klimakonzept

Source: DW PM of 15.06.2020

Keywords:
Stock, DE-News, Funding, Climate protection, News Blog Berlin, Quarters, Settlements, Environmental policy, Housing, Housing policy