Ministry of Economics of Latvia, as EU SBSR Policy Area ‘Energy’ coordinator, is organizing a series of online discussions on the topic "Financing renovation project: mapping roles and responsibilities". On November 19th, 2020 from 11 am to 13.30 pm Riga time (GMT+2) we are holding the first discussion round - Financing renovation project: stakeholders, decision-making process, project management, and documentation. In cooperation with the Swedish Institute, we have already established a strong network of experts in the field of energy efficiency by successfully establishing a Baltic Leadership Programme on Energy Efficiency. With the new series of discussions, we aim to discuss associated funding structures, project implementation, execution, main obstacles, and how to overcome them. The ultimate aim is to continue building a macroregional flagship process on exchanging experiences and sharing competencies on Energy Efficiency. Financing renovation project: mapping roles and responsibilities discussion FIN

1. www.motiva.fi
Financing renovation projects
FINLAND
19.11.2020 Financing renovation projects in Finland - Forssell

2. Key figures
2019
Motiva is
100 %
State-owned
68Turnover
7,8 milj. €
Sustainable
Development
Company
www.motiva.fi
61Person-
years

3. Long-term renovation strategy 2050
19.11.2020 Financing renovation projects in Finland - Forssell
Long-term renovation
strategy aims for very energy
efficient and and low carbon
building stock by 2050.
Brings out a wide scope
of views on renovation,
its ways, means,
and needs.
Strategy that meets
Finnish needs while
complying to the
directive’s requirements.
2020 2050
Energy Performance of Buildings
Directive (EPBD), art 2a)
Finnish LTRS delivered 10.3.2020
Ministry of the Environment (by Motiva Oy,
VTT, Tampere University of Applied Sciences
and Finnish Environmental Institute) with
over 540 participants representing
nearly 150 finnish organisations.

4. Long-term renovation strategy - goals
Goals by 2050
to reduce CO2 emissions
from buildings by
90 %
to increase the share of
near-zero energy buildings from
10 %
to more than
90 %
• The strategy applies to residential
and service buildings completed
by the beginning of 2020, which
total 1.4 million.
• Heating residential and service
buildings causes about 7.8 Mt of
carbon dioxide emissions per
year.
• This is about 17 % of Finland's current
carbon dioxide emissions (46 MtCO2).
• Finland aims to be carbon
neutral by 2035
19.11.2020 Financing renovation projects in Finland - Forssell

5. 19.11.2020 Financing renovation projects in Finland - Forssell
Incentives to change to
low carbon heating
Information and advise,
best practices
How to
stimulate
investments
in building
renovation?
Energy and renovation subsidies,
other financial mechanisms
Low carbon roadmaps
Energy Efficiency Agreements
Competence and capacity building
Legislation
Strategic goals

6. Stakeholders in financing building renovation
Please name main involved stakeholders in financing building renovation? Who holds the most important role?
19.11.2020 Financing renovation projects in Finland - Forssell
Public sector
•Municipalities, municipal boards
•MuniFin, ARA, banks
Private buildings
•Building owners, building managers, housing company
shareholders
•Banks and other financiers, ARA
Single-family homes
•Owners
•Banks, ARA, ELY, taxation authorities (tax deduction for
households)

7. Documentation needed for financial support/grants
19.11.2020 Financing renovation projects in Finland - Forssell
• Housing finance and
development centre (ARA):
• Energy aid for residential buildings
• Energy savings calculations before and
after renovation (done according to
specified method)
• Signed work plan detailing the measures
with cost estimate done by an expert
(designer, etc.)
• Energy Performance Certificate that shows
the improvement in energy efficiency
(after the completed renovation)
• Centre for Economic
Development, Transport and
Environment (ELY)
• Aid to replace oil-heating in single-
family homes
• Application (pdf-form or online service)
• Either the planned measures with detailed
quotes or free form plan detailing said
measures

8. What to take into account in decision-making?
Decision-making is influenced by different factors varying according to building
type, actor (public vs. private), etc.
• Plan the renovation in advance
• Take into account both renovation needs and energy efficiency requirements/goals.
• Prove the cost-effectiveness of the renovation, especially when improving energy
efficiency of the building in connection with other renovation works.
• Present reasons for choosing to invest into energy efficiency / low carbon
solutions even if the initial cost is higher.
19.11.2020 Financing renovation projects in Finland - Forssell

9. Project management, documentation
Varies on the building type / ownership
• Single-family homes and smaller residential
buildings
• the owner is the project manager, but relies on both
the service provider and the municipal building
inspector
• Owner applies for loans and possible grants directly,
gathers necessary documents
• Smaller housing companies are normally managed by
the shareholders themselves, which makes the project
management and financing application process very
similar to single-family homes
• Larger private residential building
• Normally the building manager works with the construction
consultant, designers and the construction company
• The housing company board oversees the work with the
building manager
• Building manager and housing company board make the
financial and possible grant applications and financing
decisions after getting approval from the housing company
shareholders (shareholders meeting)
• Private service buildings
• the Property manager works with the construction consultant
and the construction company
• Financing is secured through loans and possible governmental
grants (Property manager)
• Public buildings (both residential and service
buildings)
• The municipality property managers make the plans, the
approval is done for larger projects through the municipal
board (elected officials), smaller ones are included in the yearly
budget, and are approved through municipal officials
• Property managers work with construction consultants and the
construction company
19.11.2020 Financing renovation projects in Finland - Forssell
Challenges from the financiers point-of-
view:
- Green mortagages: how to benchmark the buildings energy
efficiency (where to get the information?)
- What is considered as ”green”, criteria

10. www.motiva.fi@MotivaOy
Thank You!
More information:
Kirsi-Maaria Forssell, Motiva Oy
kirsi-maaria.forssell@motiva.fi
19.11.2020