RIS318170 Bijlage ClimateInvestmentPlan TheHague
Tekst van het document
2030
The Hague
Climate City Contract
2028
2030 Climate Investment Plan 2026
2024
2024 - The Hague
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Climate City Contract - Climate Investment Plan
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Climate Investment Plan City of The Hague Table of Contents 1 Introduction
13
7 Economic and Financial Indicators
57
2 Current Budget Programme
17
7.1 Monitoring and Evaluation Framework
58
3 Existing Financial Policies and Strategy
21
7.2 Commitment to Climate Neutrality and the Actions in the Action Plan
58
4 Barriers to Capital Deployment for Sustainability
27
7.3 Assessment of the Progress of the Action Plan’s Actions
58
4.1 Current Situation
28
7.4 Indicators
59
4.2 Key Barriers Across Structural, Policy, Economic, Financial, and Social Barriers
28
8 Optimising Capital Allocation
63
5 Cost Scenarios for Climate Neutrality
33
9 Risk Management
69
5.1 Expected Cost of Sustainability Efforts
35
5.2 Estimation of Total Capital and Mobilisation of Capital from Various Sources
39
10 Capacity Building Overlap and Stakeholder Engagement for Capital and Investment Planning
75
6 Capital Planning for Climate Neutrality
45
10.1 Organisational Structure of the City of The Hague
76
6.1 Current Financial Policy of the City of The Hague
46
10.2 Stakeholder Engagement
77
6.2 Funding Sources for Defines actions
48
Annex I
81
6.3 Innovative Capital Structures to Optimize the Use of Public Capital for Sourcing Investment Capital on a Larger Scale 51 6.4 Building the Necessary Capital Structures and Mobilising Identified Sources of Capital
2024 - The Hague
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List of Figures
List of tables
FigurePage
TablePage
Figure 1: Fields of Action - subsectors- strategic priorities structure of sustainability activities at the City of The Hague
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Table 1: Municipal Budget and Budget for Climate Actions
18
Figure 2: Fields of Action - subsectors structure of sustainability activities at the City of The Hague
35
Table 2: Historical Municipal Budget and Budget for Climate Actions
19
Figure 3: Elements of an effective risk management plan
70
Table 3: Eneco-resources
24
Figure 4: Organisational structure of The City of The Hague
76
Table 4: Overview of 2024 city revenue sources
24
Figure 5: Pathway to successful funding of the Investment Plan
79
Table 5: Breakdown of general funds
25
Table 6: Barriers to climate investment
30
Table 7: Expected CAPEX per sub sector
38
Table 8: Details of CAPEX investments
39
Table 9: Sectorial Costs
42
Table 10: List of currently available climate-related funds and loans to enable capital deployment
48
Table 11: List of currently available climate-related grants to enable capital deployment
50
Table 12: Distribution of investment budget
52
Table 13: Municipal share of total investment budget
53
Table 14: Capital intensive projects
54
Table 15: Capital Planning
56
Table 16: Indicators by Field of Action
59
Table 17: Financial indicators being explored in NSS collaboration
60
Table 18: Potential next financial indicators being explored in NSS collaboration
61
Table 19: List of climate-related policies to enable capital deployment
65
Table 20: List of Fields of Actions level risks
71
Table 21: List of Project Level Risks
73
Table 22: Assessment of key factors and skillsets for a transition team
78
Table 23: Stakeholder engagement mapping
79
Table 24: Stakeholder activity mapping
80
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Abbreviations and Acronyms Abbreviations and acronyms
Definition
Abbreviations and acronyms
Definition
100CNSC
100 Climate neutral and Smart Cities by 2030
SME
Small and medium-sized enterprises
BAU
Business as Usual
TVW
Transitievisie Warmte / Transition Vision Heating
CBA
Cost Benefit Analysis
VNG
Vereniging van Nederlandse Gemeenten / Association of Dutch Municipalities
CAP
Climate Action Plan
VvE
Vereniging van eigenaren / Homeowner association
CBS
Centraal Bureau voor de Statistiek / Central Bureau for Statistics
WCW
Wet Collectieve Warmte / Collective Heating Act
CCC
Climate City Contract
WGIW
Wet Gemeentelijke Instrumenten Warmte / Municipal Instruments for Heating Act
CCS
Carbon Capture and Storage
WOZ
Municipal property tax
CIP
Climate Investment Plan
ZE
Zero emission
CVD
Clean Vehicles Directive
ZHB
Zuid Holland Bereikbaar / South Holland Accesible
DDH
Duurzaam Den Haag / Foundation Sustainable The Hague
EC
European Commission
ED
Energiefonds Den Haag / Energy Fund The Hague
ERDH
EnergieRijk Den Haag / Energy Rich The Hague
ETS
Emissions Trading System
EU
European Union
FRED
Fonds Ruimte en Economie Den Haag / Fund for urban projects and corporate housing
GHG
Greenhouse gases
HEID
Holdingfonds Economische Investeringen Den Haag / Investment & funding vehicle of The Hague
HKA
Haags Klimaatakkoord / The Hague Climate Agreement
HTM
Haagse Tram Maatschappij / public transport company in The Hague region
IQ
Innovation Quarter / Regional Development Agency of South Holland
JESSICA
‘Jessica funds’: Joint European Support for Sustainable Investment in City Areas
KPI
Key Performance Indicator
LPG
Liquified Petroleum Gas
MEL
Monitoring, Evaluating, and Learning
MinEZK
Ministerie van Economische Zaken en Klimaat / Ministry of Economic Affairs and Climate Policy
MRDH
Regio Metropool Rotterdam Den Haag /Region Metropol Rotterdam The Hague
MRV
Monitoring Reporting Verification
NZC
NetZeroCitiesconsortium
PBL
Planbureau voor de Leefomgeving / Netherlands Environmental Assessment Agency
PPP
Public-Private Partnership
PV
Photo Voltaic
RES
Renewable Energy Sources
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Summary
Project Organisation
reserves, and risk-sharing mechanisms, are
• The City of The Hague is exploring the
employed to mitigate potential disruptions
Becoming climate-neutral by 2030 requires
add up to at least €3,5 billion over the
establishment of a dedicated project
action on all levels. In the field of financing, it
period 2024-2030.
organisation tasked with overseeing the
and ensure project success.
requires careful financial planning, stakeholder
• The establishment and expansion of the
implementation of the investment plan,
In short, financing this CIP in order to reach
engagement, and proactive risk management.
‘Stichting Holdingfonds Economische
ensuring coordination, and monitoring
our ambition to be climate-neutral requires
In this Climate Investment Plan (CIP), we outline
Investeringen Den Haag (Investment &
progress.
an approach encompassing strategic financial
the comprehensive approach taken by the City
funding vehicle of The Haguez, in short:
of The Hague to finance its sustainability plans,
HEID)-investment vehicle that provides a
Risks and Barriers
risk management, and a robust project
starting from its current budget and policies
robust platform for attracting private and
• The City of Hague recognises the risks and
organisation. By leveraging existing resources,
to future financing plans, project organisation,
public resources for sustainable projects.
and the associated risks, opportunities, and barriers. Current Budget and Policies • The City of the Hague has the ambition to be climate-neutral in 2030. • The current budget earmarks significant funds for energy transition projects,
barriers associated with financing the climate
fostering partnerships, and addressing
transition, including regulatory uncertainties,
potential risks and barriers, The Hague is on
are explored as a means to share the financial
market volatility, and technological
target to lead the way towards a sustainable
burden and mitigate risks associated
challenges.
and resilient future.
• Public-Private Partnerships (PPPs)
with climate-related investments. • Accessing government grants, subsidies, and incentives, along with exploring green bonds issuance, are key to securing additional funding.
sustainable mobility, and circular economy
• Engaging financial institutions that offer
initiatives, totalling €198.1 million for the
sustainable finance options is essential to
period 2024-2027.
ensure alignment with environmental and
• Co-financing opportunities are actively
social objectives.
pursued from various stakeholders, including residents of The Hague, other levels of
Stakeholder Engagement
government such as the Province of South-
• The City of The Hague recognises
Holland as well as national government,
the importance of engaging diverse
European funding bodies, and private
stakeholders, including residents, businesses,
investors.
non-governmental organisations, and governmental bodies, in financing the climate
Future Financing Plans • The municipal budget currently covers a
transition. • Collaborative efforts with other Dutch
fraction of the total investment required
cities along with national and European
to meet its sustainability ambition,
institutions are needed to secure additional
necessitating alternative financing
funding and align urban interests with
mechanisms and stakeholder engagement.
national climate policies.
• The climate actions discussed in this
• Engaging the local community in decision-
Investment Plan are related to the following
making processes will foster public support
fields of action: (1) Energy transition; (2)
and may unlock alternative funding sources
Sustainable mobility; and (3) Circular
such as crowdfunding or community
economy. The investments required based
investment models.
on actions identified in the Action Plan
planning, stakeholder engagement, proactive
• Proactive risk management strategies, including scenario planning, contingency
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100CNSC Emission domains and The Hague sustainability themes
How To Read The Climate City Contract (CCC) is another
The Climate City Contract is a Document of The
step towards The Hague realising its climate
Hague and Europe
ambition: a climate-neutral city by 2030.
The European Commission identifies the
The CCC consists of three parts: Commitments,
CCC as one of the building blocks of the
the Climate Action Plan and the Climate
100CNSC mission. It is important for Europe
Investment Plan. It connects local sustainability
that The Hague CCC is recognisable within
policies with the structure and logic of the
this system; for The Hague, the CCC has to fit
100 Climate-Neutral and Smart Cities in 2030
within the the policy context of the city, which
Mission, which is carried out by NetZeroCities
is why it deviates on a number of points from
consortium (NZC) on behalf of the European
the formats provided by NZC. For clarity, every
Commission.
chapter is accompanied by a reference to the
Energy systems and Built environment:
Circular economy, green industry, and nature-
corresponding template module.
Energy transition
based solutions: circular economy
The transition of our energy supply from fossil
The transition from a linear economy with a
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The CCC is based on the
following principles: The Climate City Contract is a Dynamic
Terminology Used in This Document
fuels to renewable sources. This theme also
continuous demand for finite resources and
Document
The terminology used in this Contract at times
includes insulation and other energy-saving
large waste flows to an economy based on
For The Hague, the CCC is a means to
deviates from the CCC formats and guidelines in
activities. After all: energy you don’t use doesn’t
value retention of raw materials. Reuse of raw
bring closer the ambition of a climate-neutral
favour of local terms. This is always preceded by
have to be generated.
materials is the norm in a circular economy. As a
city by 2030. It maps existing and planned
an explanation of these terms using 100CNSC
result, the demand for primary raw materials
actions and places them in (an EU) perspective.
terminology as a reference point.
decreases, as does the production of waste.
Many climate actions will be further developed and made concrete in the coming years, which
Central is the municipal sustainability vocab-
is why the CCC should be seen as a snapshot of
ulary. We maintain this vocabulary in this
where we currently are. We will publish revised
Investment Plan and have cross-referenced
versions every two years until 2030 (after 2024,
our sustainability themes with the 100CNSC
updates will be published in 2026 and 2028).
Emission Domains. They are defined as
Each subsequent version will provide more
following:
concrete answers and solutions. Mobility & transport: Sustainable mobility The transition to an emission-free mobility system. This can be summarised in three key words: reduce, change and make cleaner.
Sustainable Built environment
Reducing the number of traffic movements and
Working towards a city that is both sustainable
the number of kilometres that people travel,
and future-proof. This city is climate-neutral
changing travel behaviour so that people more
and resistant to the effects of climate change,
frequently choose more sustainable ways
such as heat stress and flooding, and at the
of traveling, and making existing modes of
same time accessible, safe and pleasant to live
transport cleaner, more economical and effi-
and stay in. The sustainable city is green and
cient. When designing public spaces, we make
healthy for people, plants and animals.
choices that promote walking, cycling and the 1 NetZeroCities is a European consortium of 34 parties financed by the European Commission to implement the 100CNSC mission. This is financed under Horizon Europe. 2 There are 112 participating cities: 100 within the European Union and 12 from associated countries.
use of public transport or car sharing.
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1 Introduction
Part A - Current State of Climate Investment Module IP-A1: Existing Climate Action Funding and Financing The City of The Hague has the ambition to
financing. The CAP also identified three stra-
be climate-neutral by 2030. The municipality
tegic priorities, all related to a Field of Action:
knows that - on top of current actions - accel-
1
eration in sustainability efforts is necessary
Strategic priority 1: Retrofitting Homes to Stop
to reach this ambition. In the Climate Action
Using Natural Gas (Energy Transition)
Plan (CAP) of the City of The Hague, the scope
Strategic priority 2: Zero Emission Zone
of climate action was identified through
(Sustainable Mobility and Sustainable Built
analysis of each of the four sustainability
Environment)
themes (Fields of Action) pursued by the munic-
Strategic priority 3: Circular Construction
ipality: energy transition, sustainable mobility,
(Circular Economy)
circular economy, and sustainable built
Introduction
environment. Included in this analysis was the
This Climate Investment Plan (CIP) intends
identification of subsectors (clearly delineated
to provide a first impression of the required
areas of action within a sustainability theme)
financial resources and funding required for
and impact pathways (shifts from one mode
The Hague’s 2030 Climate Action Plan along
of doing things to a more sustainable mode
with providing a comprehensive identification
of doing things). These shifts can only happen
of barriers and opportunities on how to access
when they are accompanied with adequate
these resources.
Figure 1: Fields of Action - subsectors- strategic priorities structure of sustainability activities at the City of The Hague
Fields of Action
Subsectors
Energy Transition
Sustainable Mobility
Circular Economy
Collective heating
Public transportation
Circular construction
Individual heat pumps
Biking
Household waste
Electricity
Walking
Circular manufacturing industry
Energy efficiency homes
Electrification mobility on land
Energy efficiency rest of built environnement
Smart mobility
Sustainable Built Environment
Integrated in other fields of action
Smart logistics Efficient car use Employers approach Corresponding Strategic Priorities
Retrofitting 10.000 homes a year
Establishing and expanding a zero emission zone
Developing circular construction
Establishing and expanding a zero emission zone
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The transition to a climate-neutral city comes
referred to as Fields of Action to align with the
with the need for large-scale financing.
terminology employed by 100CNSC.
While financial coverage is already in place for some of the actions identified as part of
The structure of our CAP and CIP thus focuses
the impact pathways, for many aspects the
on the following fields of action:
search for financial means poses a significant
1 Energy transition
challenge to reaching the set sustainability
2 Sustainable mobility
objectives. The municipality of The Hague
3 Circular economy
cannot shoulder these financial burdens alone. A successful climate transition is contingent
For each of the abovementioned fields, the
on the involvement of various stakeholders in
corresponding sub-sectors are identified in
fostering a sustainable urban environment
figure 1.
which include, among others, residents, property owners, social housing associations,
The Investment Plan and transparency
energy providers, small and medium-sized
The Municipality of The Hague has decided to
enterprises (SMEs) and large corporations.
make the Investment Plan a public document
In this investment plan, any financial alloca-
once it is approved by the municipal board
tions aimed at fostering climate neutrality and
of mayor and aldermen. This means it will be
sustainability are categorised as sustainable
publicly accessible through our local raadsin-
investments.
formatiesysteem (in short: RIS), which serves as the digital database for all publicly available
This Investment Plan focuses on this challenge
policy documents and political meetings.
by providing a first impression of existing
By making the CIP public, we aim to contribute
funding for climate activities per field of action,
to transparency of (climate) policy. This decision
estimating what additional funding is required,
also means that we base all the calculations
and what sources can be used to bridge this
presented in this document on publicly
financial gap.
available information.
Current climate-related budgeting strategies The municipality identifies four sustainability themes. Three of these themes centre around climate mitigation (energy transition, sustainable mobility, and circular economy) while one is aimed at climate adaptation (sustainable built environment). Because the latter is not focused on the reduction of greenhouse gas emissions, which is at the heart of the 100 climate-neutral and smart cities by 2030 mission (100CNSC), we have decided to limit our scope of the CIP to the other three themes. Going forward, these themes will be
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2 Current Budget Programme
The current budget programme 2024-2027
the Fields of Action and subsectors as presented
of the City of The Hague has not been clearly
in figure 1. This cross-referencing exercise
defined along abovementioned Fields of Action.
resulted in the information presented in table 1.
Instead, various sustainability investments
For a full overview of the budgets and corre-
and costs regarding a sustainable environment
sponding Fields of Action, see Annex 1.
and clean energy have been integrated as
2
part of existing programme budgets and
The results of this analysis are mapped in
expenditures of the municipality. By analysing
table 1. The table presents an overview of the
the municipal budget using the Fields of Action
investment budget of the municipality of
Energy transition, Sustainable mobility, and
The Hague for 2024-2027 related to the defined
Circular economy as guidelines, we are able
Climate Action Plan activities. These figures
to select budget allocations from the existing
are derived from the programme investment
programme investment that match elements of
budget 2024 - 2027.
Table 1: Municipal Budget and Budget for Climate Actions Fields of Action
Current Budget Programme
Sector Subsection
Budget Allocation 2024-2027
Energy Transition Creating sustainable built environment
€ 30.804.000
Creating renewable energy sources, energy grids, and storage
€ 3.700.000
Sustainable Mobility Electric fast-charging stations
€ 450.000
Fleet replacement
€ 6.907.000
Infrastructure to support bicycle (parking, space)
€ 10.075.000
Implementation of multi-year plan for bicycle logistics
€ 32.217.000
Improving mobility flows / sustainable city logistics
€ 82.700.000
Reducing movements in the city
€ 5.000.000
Facilitating and streamlining waste separation and processing
€ 26.314.000
Circular Economy
Total
€ 198.167.000
Source: Meerjaren investeringsplan Gemeente Den Haag (4.6 Meerjaren investeringsplan | Begroting 2024 (begroting-2024.nl)
Table 1 shows a total of €198 million of
for climate investments in energy transition,
budgeted investments in the programme
sustainable mobility and circular economy.
period 2024 - 2027. It offers a simplified representation of the current distribution of
The municipal programme budget only partially
capital flows. More specifically, The Hague has
covers the total capital requirement until 2030
allocated €198 million of municipal budget
in line with the city’s sustainability ambitions.
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Table 2: Historical Municipal Budget and Budget for Climate Actions Budget Type
Although the figures defined in the above
2020
2021
2022
2023
Total 2020-2023
2.798.349k
2.721.748k
2.859.086k
3.110.187k
11.489.370k
Municipal Budget for Climate Actions & Projects (€)
32.600k*
21.900k*
55.700k*
60.765k
170.965k
% of Municipal Budget for Climate Actions & Projects (%)
1,16%
0,80%
1,95%
1,95%
1,49%
Municipal Budget (k€)
tables do not exactly match the descriptions of the actions listed under the Fields of Action in chapter 5 of our CAP, they do cover the elements of these actions that are clearly identifiable in our budget programme and cover significant elements of the identified actions. As such, they provide insight into the resources made
Source: Annual budgets of The Hague https://financien.denhaag.nl/ (* excluding waste disposal & waste tax)
available for sustainability in The Hague.The current budget programme 2024-2027 and the
The municipality, thus, cannot and does not
sustainability purposes. This increase illustrates
sectors present all the three Fields of Action in
aim to fund the climate ambition by itself.
that the municipality is not merely increasing
line with the defined actions in the CAP.
Rather, it aims to collaborate with other actors.
its policy focus on climate action but that this is
For this, it is important to make estimations of
accompanied by an increased budget allocation.
These figures allow for an estimation to be
the size of the funding gap between municipal
Part of this budget increase is due to national
made of the funding gap for the sustainability
investments and needed investments. The latter
funds that are available from 2023-2030.
investments required to fulfil The Hague’s
are estimated in part B and the funding gap is
The funds are allocated by the national govern-
sustainability ambition. This CIP is focused on
further elaborated upon in parts B and C of this
ments as a result from the Dutch National
the period until 2030 whereas the availability
CIP.
Climate Agreement that was signed in 2019.
of financial budget allocations has only been
As a result, The Hague annually receives €9,4M
defined until the year 2027. Though the munic-
Table 2 shows that the municipality has
from 2023-2030. This amount will be indexed
ipality will continue investing in sustainability
committed significant financial resources to
annually.
after 2027, it is impossible to make predictions
sustainability actions in the period 2020-2023
or assumptions on the amount of municipal
and that the budgets allocated to these actions
On top of this structural funding, the City of
spending beyond 2027. Module B of this plan
have increased over the years. Combined, the
the Hague also has funds from the sale of the
is therefore based on the expected investment
budget for the past four years amounts to
shares in energy company Eneco allocated to
commitment of €198 million to calculate this
about €171 million. If we compare the planned
sustainability. These funds are one-off, not
gap. More information about municipal invest-
budget allocation for the period 2024-2027
structural, and are therefore not included
ments in the years after 2027 will be provided in
with 2020-2023, we see an increase of over
in this calculation. More information on the
the next iterations of the CIP.
€25 million in municipal budget allocation for
Eneco-funds can be found in table 3.
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3 Existing Financial Policies and Strategy
Module IP-A2: Strategic Funding and Financing Evaluation Municipal Treasury Department and Financial Management Focus Areas
4 Making the Planning & Control cycle more transparent
The City of The Hague has a significant annual
The objective is to put in place accessible, trans-
budget. To manage these funds responsibly
parent and manageable planning and control
and to use these public resources to lever
procedures and tools, such as the aforemen-
the highest possible investment returns, the
tioned long-term programme budgets.
municipality enforces strict rules to control the
3
Existing Financial Policies and Strategy
municipal budget. When applying these rules
Financial policy developments
to the municipal fund allocation for sustaina-
In 2024, the municipality’s financial policy will
bility action, we can identify opportunities in
be updated as part the ambition to contin-
the practice of financial management on four
uously improve the municipality’s financial
themes:
management and control.
1 Updating the budget rules
For the treasury department, the following can
The municipality’s main ambitions pose a
be identified:
significant financial demand on the municipality. Therefore, its financial policy is aimed
1 Purpose and functions of treasury
at ensuring that the resources available to the
The municipality’s treasury function includes
municipality are spent in both a transparent
all activities related to the financing needs of
and careful manner. In this regard, budget rules
the municipality. The municipality must always
are a prerequisite for the practical implemen-
have sufficient funds to pay benefits subsidies,
tation of the financial policy pursued by the
salaries and invoices in time. For this purpose,
municipality.
the municipality depends on short-term monetary loans on a daily basis. The financing
2 Establishing the investment budgets
of municipal investments is covered by reserves
The purpose of the investment budget is to
and provisions - internal funds-and through
create a multi-annual overview of the invest-
externally raised longer-term monetary loans.
ments necessary in order to facilitate integrated
Financing policy is important in order to control
decision-making by the city council.
the interest rates that the municipality is due on contracted loans and to limit or mitigate
3 Organising a municipal co-financing fund
related risks. In parallel, a second important
The purpose of the co-financing fund is to use
area of focus within the treasury function
the resources from the fund specifically for
concerns the granting of loans and guarantees
those (major) physical and social objectives for
(to third parties) by the municipality in the
which The Hague requires the support of the
performance of its public task.
national government and other parties. 2 Improving internal control The City of The Hague wants to be a reliable and trustworthy organisation. The improvement of its internal management and control represents
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an important part of this. Investing therein
and Policy Regulation, which is further elabo-
will ensure that its service to residents and
rated in the Treasury Statute and the Treasury
entrepreneurs is improved. The improvement of
Management Implementation Decree 2015.
Table 3: Eneco-resources Eneco-resources 2019
Used in period 2020-2023
Available for 2024 onwards
Increase quality urban areas and social housing
€122,7M
€82,0M
€40,7M
Improve sustainable transport
€306,9M
€53,7M
€253,1M
Extra impulse for social housing and starters
€50,0M
€12,9M
€37,1M
primarily from delayed investment expendi-
Sustainability and energy transition
€184,1M
€105,7M
€78,4M
Although this this involves, in part, intensifying
tures, which themselves stem from the
ICT-impulse
€10,0M
€10,0M
€0,0M
and improving existing processes, new tasks
COVID-19 period, as well as additional funds
Total
€673,7M
€264,3M
€409,3M
must also be set up.
received from the national government. In order
100,0%
39,2%
60,8%
internal control focuses on: 1 Clear framework setting
2 Long-term financing
2 Effective processes
In 2024, the municipality encounters a
3 Management of risks
temporary surplus in liquidity. This results
to address specific expenses, the municipality
Source: The City of The Hague, Programmabegroting The Hague 2024-2027
Treasury (financing) developments
frequently chooses to utilise long-term loans.
1 Law financing decentralized governmental
However, the existing liquidity surplus renders
authorities related to treasury framework
the necessity for new long-term loans unnec-
4 Forward financing
at 0.530% starting January 2024. The early
The Law Financing decentralised governmental
essary in 2024. According to the long-term
In mid-2020, expectations arose regarding a
execution of these forwards took advantage of
authorities (Wet Financiering Decentrale
financing plan, such loans are not expected
potential increase in long-term interest rates
the favourable interest rates at that time, thus
Overheden, also known as the Fido Act) provides
until 2025/2026.
by 2022. To hedge interest rate risk the munic-
effectively mitigating potential future interest
ipality secured four long-term forward loans
rate risks. The forward loans have been integrated into the liquidity forecast.
the legal framework for the treasury function of decentralised governments. An important prin-
3 Eneco-resources
(referred to as forwards) in July 2020 based
ciple of the Fido Act is that a municipality must
In 2019, The Hague sold its shares of energy
on the liquidity forecast at that time. These
handle public funds with scrutiny. This includes
company Eneco for €673.7 million. Among other
forwards were set respectively at €150 million
Current Programme Budget Coverage
the management of financial risks such as
things, this money is allocated for the energy
at 0.357% starting January 2022, €150 million
Table 4 presents an overview of the munici-
credit risk and interest rates. Furthermore,
transition. As indicated in table 3, the resources
at 0.425% starting October 2022, €150 million
pality’s revenue sources a summary for the
two ministerial regulations are in effect in the
from Eneco have not been fully utilised. Part of
at 0.494% starting July 2023, and €200 million
year 2024:
Netherlands: the cash limit (short-term) and the
these resources are also available for Climate
Interest-risk standard (long-term). The munici-
Actions and projects. However, the exact
pality is allowed to finance its expenditure at a
amount of Eneco resources allocated to future
maximum of 8.5% with cash to avoid fluctua-
action plans related to this Investment Plan
tions in interest costs. The interest-risk standard
(CIP) remains unclear due to discrepancies
states that the maximum amount of long-term
between the information available and between
General funds
financing is linked to the standard interest
the categories used in the historic budget and
rate. This gives the maximum loan amount
the CIP.
Table 4: Overview of 2024 city revenue sources Overview of city revenue sources City income 2024 (€M)
% of city budget
2.082,4
64,4%
Specific benefits (mainly from the national government)
503,3
15,6%
Rates, fees, and chargers
232,0
7,2%
that may be subject to an interest change per
Construction, land exploitation
21,0
0,6%
year. The maximum loan value is set at 20%
Withdrawals from reserves
229,8
7,1%
Other income
164,1
5,1%
3.232,7
100,0%
of the total budget. The Fido Act also imposes strict requirements on the creditworthiness of counterparties and the instruments to be used. Article 212 of the Municipalities Act obliges the municipality to establish municipal regulations for the financing function. The municipality has established this in the Financial Management
Income Category
Total Investment contributions
16,7
Source: Municipality of The Hague, Program Budget 2024-2027 The Hague, p.307
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The municipality is largely (64.4%) funded by
of various municipal taxes. Table 5 table
general funds. This category is further split out
provides a good understanding of the budget
in revenue sources in table 5. The largest part
coverage in 2024, illustrating that budget
of these general funds stems from the general
allocation to the municipality by the national
municipal fund set up by the Dutch national
government is the most significant source of
government. The remainder is made up mostly
revenue.
Table 5: Breakdown of general funds Explanatory/breakdown General funds Income Category
City income 2024 (€M)
% of city budget
Municipal fund
1.758,4
84,4%
Property tax
147,2
7,1%
Tourist tax
16,2
0,8%
Property tax
0,2
0,0%
Parking tax
91,7
4,4%
Dividend tax
8,4
0,4%
Interest
35,8
1,7%
Leasehold income
19,6
0,9%
Advertising revenues
4,9
0,2%
2.082,4
100,0%
Total
Source: Municipality of The Hague, Program budget 2024-2027 The Hague, p.307
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4 Barriers to Capital Deployment for Sustainability
Module IP-A3: Barriers to Climate Investment
4.1 Current Situation The Hague currently experiences two main barriers associated with 1) financing the
4.2 Key Barriers Across Structural, Policy, Economic, Financial, and Social Barriers
programme budgets and 2) diversify funding
Various barriers may arise during the imple-
with additional investors.
mentation of the proposed projects. Below is an overview of the identified barriers.
4
Indexation of budgets
Barriers to Capital Deployment for Sustainability
The municipal fund will be indexed to the
Structural Barriers
projected GDP (Gross Domestic Product)
Infrastructure gaps
by 2027. In terms of content, this has a stronger
Inefficient renewable energy infrastructure
link to the broad expenditure development at
can hinder investments and efficiency of
municipalities. It remains uncertain whether
implementation. Absence of a reliable grid
this adjustment will sufficiently cover the
system and energy storage facilities may deter
existing deficit in the multi-year budget.
investors from investing in sustainable energy
However, the current budget takes potential
solutions because the infrastructure needed is
challenges and desirable intensifications into
not reliable.
account as much as possible. Technological risks Diversification of funding
Investors may be hesitant, particularly in
A primary risk is the reliance on a single source
long-term projects, due to the rapid evolution of
of income, which increases the vulnerability to
technology and uncertainties surrounding the
financial instability. Therefore, it is important
performance of emerging green technologies.
to diversify funding by seeking additional investors, subsidies, funds, or partners to reduce
Skills and capacity
this dependency. In that regard, it remains
A shortage of skilled professionals in
essential for the City of The Hague to build up
sustainable technologies and green finance
and maintain a network with multiple finan-
can impede the effective execution of climate
ciers and continuously explore grants, subsidies
projects.
and other funding opportunities. Policy Barriers Several barriers are discussed in the following
Regulatory uncertainty
section.
Investment uncertainty can arise from inconsistent or fast-changing government policies. This is currently notable in for example the delayed implementation of the Wet Collectieve Warmte (Collective Heating Act, WCW). Establishing stable, long-term policies is crucial for attracting capital.
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Subsidies for fossil fuels
Risk perception
Current subsidies for fossil fuel industries can
Investors may perceive climate projects as
distort the market, diminishing the competi-
riskier, especially if they are unfamiliar with
tiveness and attractiveness of renewable energy
sustainable technologies, if they fear possible
projects to investors.
policy changes, or if the projects are based on innovative methods that (yet) lack the prec-
Economic Barriers
edent of reliable financial returns.
Table 6: Barriers to climate investment List of financial barriers Financial Barriers to achieving Climate Neutrality
Typology of Barrier
Description
Sector and stakeholders involved
Mitigation
High initial investment costs
Investment
Substantial upfront costs as renewable energy infrastructure, energy-efficient technologies, and sustainable production processes
Energy Sector: (Investors, utility companies, and governments) Manufacturing and Industry
Organise finance (bank) consortium for sufficient funding. Contact with industry for reduction of investment
Financial policy of national government
Uncertainties related to central governments’ financial contribution
Possible changes in the governmental municipal fund from 2026 onwards
National government
Periodic coordination with the government. Observance of the precautionary principle in the multiannual budget
Access to sustainable development by SMEs
Perceived risks or lack of access to financial resources.
Small and mediumsized enterprises (SMEs) may struggle to secure financing for climate initiatives
Financial Sector: Banks, financial institutions, and investors.
Lobbying, use of subsidies as risk capital government and EU, and deployment of HEID foundation.
Risk Perception and Uncertaintyby stakeholders
Perception that climate projects as riskier
Uncertainties related to technological advancements, policy changes, and the longterm viability of sustainable practices.
Financial Sector: Investors, insurance companies, and risk assessors. Policy Sector: Governments and regulatory bodies
Provision of information, consortium formation with stakeholders, and development of financial strategy with stakeholders such as housing corporations.
Lack of financial instruments
Absence of financial instruments
Absence of green bonds, climate risk insurance, or other innovative financing mechanisms,
Financial Sector: Banks, investment firms, and financial regulators. Public and Private Sectors:
Focus on HEID foundation, (continued) (Market) study for revolving funds.
Mismatch horizons
Mismatch between investment horizons and expected returns.
Regulatory frameworks may not align with the longer-term nature of climate projects
Policy sector and business sector
Alignment with central government and local programme and objective horizons and develop close contact with businesses to identify risks and opportunities
Short-Term economic pressures Many large-scale climate actions have
Lack of financial instruments
long-term returns. Investors may prioritise
Insufficient availability of green financial instru-
short-term gains over long-term sustainability
ments, such as green bonds or climate risk
due to economic uncertainties or pressures to
insurance, can limit the options for investors
deliver immediate returns.
seeking sustainable opportunities.
Externalities not included in the decision process
Social Barriers
Many environmental costs, such as air or
Public awareness and perception
soil pollution or resource depletion, are not
Limited awareness about the benefits of climate
reflected in market prices, making traditional,
investments - financial, social, and environmen-
less sustainable investments appear more
tal-among the public can impact political will
profitable in the current economic system.
and, consequently, policy support.
The results of a full Cost Benefit Analysis (CBA) analysis that focused on the environmental
Resistance to change
costs of the whole lifecycle of used materials
Industries heavily invested in traditional, high-
should be more valuable than analyses which
emission practices may resist the transition
only take financial factors into account.
to sustainable alternatives, slowing down progress.
Financial Barriers High initial costs
The above inventory offers a clear overview
The upfront costs of renewable energy projects
of the different types of barriers to climate
can be higher compared to traditional alter-
financing. Though all relevant, several of them
natives, become profitable over time. The high
are of special interest for the City of The Hague.
initial investments can deter investors despite
These are discussed in more detail in table 6
the long-term benefits.
with the objective to plot their typology and most relevant stakeholders so we can identify
Limited access to finance
ways to overcome these barriers in later
SMEs may struggle to have the funds or
chapters.
access financing for climate initiatives due to perceived risks.
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List of financial barriers Financial Barriers to achieving Climate Neutrality
Typology of Barrier
Description
Sector and stakeholders involved
Mitigation
Absence of standardised metrics
No standardised and accepted standard for environmental impacts
Evaluation and comparison of climate projects will be difficult
Financial sector and environmental sector
Introduction and implementation of KPIs, development of standardised reporting packs used beyond local government.
Fossil subsidies
Making renewable energy projects less economically competitive.
Making renewable energy projects less economically competitive.
Energy Sector: Fossil fuel companies, renewable energy providers, and policymakers.
Public lobby to stop or to lower subsidies for fossil subsidies and continued support for innovative renewable energy initiatives
Addressing these barriers requires a combination of interventions at the level of government, international collaboration, financial innovation, and efforts to raise awareness about the benefits of climate investments. It is crucial to create an enabling environment that rewards sustainable practices and aligns financial incentives with long-term environmental goals.
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5 Cost Scenarios for Climate Neutrality
B - Investment Pathways towards Climate Neutrality by 2030 Module IP-B1: Cost Scenarios for Climate Neutrality
5
Cost Scenarios for Climate Neutrality
In the previous chapters of this Investment
The following important question is: what is
Plan, we have analysed the municipal budget,
the scale of the needed climate investments?
in particular in relation to the use of the
In part B of this investment plan, we focus on
budget as part of the programme. This analysis
the expected costs of the efforts discussed in
showed that although the municipality’s
the impact pathways in chapter five of the
spending on climate-related actions has grown
Action Plan. This means that the scope is limited
in the last four years, it is insufficient for the
to the currently planned efforts on CO2 emission
expected spending needed for reaching the
reduction on the Fields of Action energy
municipal ambition to be climate-neutral.
transition, sustainable mobility and circular
The shift to a climate-neutral city is one that
economy.3 Though these efforts, when executed,
should happen through collaboration between
will have a significant impact on the Hague’s
different stakeholders. In the Action Plan,
local CO2 emissions, the Action Plan equally
there is a clear recognition that a wide variety
emphasises that we are currently working
of stakeholders is needed in sustainability
on building a climate dashboard to model
efforts for different reasons, ranging from
prognoses of the CO2 reduction potential of our
the relevance of combining expertise and the
plans in far greater detail than we are currently
power of citizen-led bottom-up initiatives to
able to do. This dashboard will be completed
the simple fact that there are emission areas
by late 2024. Ultimately, this means that we
where the municipality lacks the authority to
cannot at the moment say with absolute
act or enforce, such as in improving the ener-
certainty that the impact pathways as detailed
gy-efficiency of buildings other than homes and
in the CAP will necessarily result in climate
public properties.
neutrality.
The financing of sustainability efforts, likewise,
Furthermore, not all impact pathways are yet
should be a shared undertaking. In the previous
concrete enough to make reliable cost calcula-
chapter, we mapped barriers that might refrain
tions. In order to avoid presenting unreliable
other parties from making climate investments
calculations, we only focus on the development
and how we can mitigate them. We can thus
of cost scenarios of the aspects of the municipal
conclude the following:
sustainability plans that could reliably be
• Sustainability efforts need to be a shared
calculated based on previous projects or similar
effort, including the financing of these efforts • There are barriers to climate investments, but also ways to mitigate them.
investments made in comparable environments. The results in this chapter therefore are an approximation of the minimum required investments of The Hague’s climate transition.
3 In this CIP, sustainability action is categorised in the four municipal sustainability themes, which we will from now on call Fields of Action to be in line with the 100CNSC terminology: energy transition, sustainable mobility, circular economy, and sustainable built environment. Because the latter focuses on climate adaptation, it was not included in the Action Plan Impact Pathways and will also be excluded from this chapter.
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5.1 Expected Cost of Sustainability Efforts
3 Electricity
• Co-operation between Energy Transition
• The Hague implements the Haagse
and ERDH (Energie Rijk Den Haag). ERDH is
The climate-neutrality cost scenarios elaborate
These subsectors and the underlying actions
Dakenprogramma (The Hague Roofs
a partnership with government, province,
the actions from the Climate Action Plan along
mapped in the portfolios presented in the
Approach) encouraging homeowners
various public and private partners,
the three identified Fields of Action that have
CAP are essential for determining the capital
and corporations to adopt solar panel
responsible for making governmental
been defined: energy transition, sustainable
required. To map the expected minimum
roofs. Existing Climate Action Funding
buildings in the central area of The Hague
mobility and circular economy. The subsectors
required costs, we first map the major activities
and Financing to increase the amount of
completely sustainable.
defined for each Field of Action can be seen in
listed in the CAP action portfolios that can
produced electricity.
figure 2.
be clearly related to costs and funding.
Figure 2: Fields of Action - subsectors structure of sustainability activities at the City of The Hague
Fields of Action
Subsectors
Energy Transition
Sustainable Mobility
Circular Economy
Collective heating
Public transportation
Circular construction
Individual heat pumps
Biking
Household waste
Electricity
Walking
Circular manufacturing industry
Energy efficiency homes
Electrification mobility on land
Energy efficiency rest of built environnement
Smart mobility
Sustainable Built Environment
to district heating and simultaneously developing sustainable heating sources: ° i.e. development of geothermal exploitation on different sites (De
• For residential buildings - lower labelling
sub-sectors identified:
approach (primarily targeting EFG labels):
1 Public transport
° Homeowner associations approach (subsidy, advice)
• The diesel bus fleet will be replaced in the
efficiency measures to invest Integrated in other fields of action
° For social housing stock: close contact with housing corporations ° Street approach ° Support neighbourhood initiatives
° Energy saving campaign (including no-regret measures)
Employers approach
• Connecting approximately 50.000 homes
Related to sustainable mobility there are eight
how to reduce energy and in which energy
Efficient car use
1 Collective heating
4 Energy efficiency of homes
° For private homeowners: Energy and climate advisors: Giving advice on
Smart logistics
Energy Transition
Sustainable Mobility
2 Individual heat pump ° Promotion activities and campaigns for installing individual heat pumps ° A subsidy is available for the replacement of gas heaters and gas geysers, a crucial
° Collective purchasing campaigns for insulation ° The Hague Sustainability Fund for financing sustainability and renovations at low interest rates
be electric. • Realising public transport mobility Hubs • Improving the quality of public transport stops ° Significant investments in new public transport corridors (i.e. CID / Binckhorst) 2 Biking • Programme ‘Ruim baan voor de fiets’Improving the conditions for safe and accesible cycling in The Hague • City deal star cycle route, mobility, and health • Research into expanding the ‘safe learning’ programme ‘cycling’ at primary schools • Improving the city centre gates for bicycles • Unbundling traffic flows
5 Energy efficiency of other buildings
• Research into use, nudging, and enforcement
Energy efficiency efforts for non-residential
• Combating transport poverty
buildings such as offices, care facilities, and
• Pilot cycle excursions for adults and children
step when installing a heat pump.
public buildings.
Starting from 2026, a nationwide law will
• Enforcing legal energy label C obligation
Constant Rebequeplein, Ypenburg
come into effect to prevent the installation
for offices and the energy saving obligation
Spoorlaan, Binckhorst, Leyweg)
of new gas heaters and geysers.
(all offices larger than 100 m have to install
° Spatial integration of WarmtelinQ on the De Constant Rebequeplein
upcoming years. After 2025 all local buses will
2
energy saving installations that are profitable within five years) in line with national standards • An interest-free loan available for energy saving measures
3 Walking • Programme ‘Walking’ (Improving the position of pedestrians) • Implementing pedestrian focused school zones • Creating more (semi) public space • Introducing ZE zone
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4 Electrification mobility on land
8 Employers’ approach
• Placing 400 charging stations for private cars
• Shift vehicle kilometre from petrol, diesel, LPG
every year • Implementation of charging plazas, short-term fast chargers, high power charging and fast chargers at taxi ranks and for (light) commercial vehicles • Shift to 100% ZE vehicles owned by the municipality 5 Smart mobility Stimulate the shared mobility network: ° Designing traffic networks according to the following prioritisation: 1-walking 2-cycling 3-public transportation 4-mobility as a service 5-private car use ° Researching the grounds for short rides ° Introduction of ZE zones and realising a compact city (reducing parking space )
° Communication plan to make smart mobility and shared mobility more attractive
and gas vehicles to remote working in hours to fulfil the need of commuting:
Sub Sector
CAPEX (€)
Description
Energy transition
Collective heating
€755,3M
District heating in several districts in the city of The Hague
Individual heat pump
€600,0M
Replacement of removing gas heaters and gas geysers by heat pumps
Electricity
€16,8M
Investments in solar panels and network (private and public)
Energy efficiency of homes
€952,0M
Improvement of energy label of 10.000 homes per year by investments in energy efficiency measures by private homeowners and housing cooperations
Energy efficiency of other building
€257,9M
Reduction of energy label of social/public real estate
° Budget for buying or leasing e-bikes for commuting longer distances for employees ° Stimulating international train travel • Upscaling the employers’ approach ° Working Group on the Employer’s Approach ° Employers’ organisation ZHB
Total Energy transition Sustainable mobility
Circular Economy 1 Circular Construction • Research into a circular construction hub • Circular wood chains • Circular buildings are approximately 20% more expensive (i.e. investments excluding scrap and demolition value after use) 2 Household waste
• Introducing logistic hubs
• No waste campaigns
° Stimulating the cooperation between suppliers and business owners
Fields of Action
° Better provision of bicycle parking facilities for employees
6 Smart logistics ° Mainly reduce the number of short distance trips by light trucks
Table 7: Expected CAPEX per sub sector
• Pilots’ circular neighbourhood, i.e. “Spullenbak”, bio-waste 3 Circular Industry • Sustainable wood chains
€2.582,0M Public transportation
€175,0M
Replacement of public buses Charging infrastructure for public transport New public transport connections (CID/Binkhorst)
Biking
€65,0M
Investments in public space (mainly bike lanes and bike parking spaces)
Walking
€10,0M
Investments in public space (for example, sidewalks)
Electrification mobility on land
€89,2M
Chargings stations for passenger cars Charging stations for trucks (light and heavy) Replacing of the current governmental/public car fleet (fossil> electric)
Smart mobility
€185,8M
Research zero-emission zones Designing traffic networks (STOMP method)
Smart logistics
€20,0M
Investments in public space for logistics hubs (four hubs)
Efficient car use
€21,7M
Park and Ride locations Smart (shared) mobility network
Employer approach
€30,0M
Campaigns to reduce commuting kilometres Communication and support of employers’ organizations
7 Efficient car use
• Coalition sustainable textile
Total sustainable mobility
• Park + Ride locations (P+R)
• Project Circular Craftscenter
Circular Economy
• Developing a cross-city network of shared
Waste and circular
mobility ° Making appointments with the providers of shared mobility about: the network, the positioning, prices, fines for dangerous behaviour, experiments, less parking places ° From 50km/h to 30km/h • Smart mobility coaches (advising citizens about mobility and shared mobility)
Total Circular
€630,0M €290,5M
Circular construction: • Re-duce, re-use and recycle Household waste: • Promoting collectives Circular industry • Facilitating collaboration and resource exchange for companies • Connecting circular companies €290,5M
Cross Cutting Costs
These can include any supporting activity needed across different sectors, such as citizen engagement, communication with relevant stakeholders, governance and planning exercises, capacity building, the setting-up of SPVs for project management, etc.
Grand total
€3.500,25M
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5.2 Estimation of Total Capital and Mobilisation of Capital from Various Sources
calculation based on quantity and price has
Fields of Action
Action / Indicator
Number
been made, which is partly included in the city’s
Walking
Sidewalks and emission-free zone
1
€5,0M
Assumptions made for quantity and price (no direct reference found)
1
€5,0M
The estimation of the total capital needed is
Action Plan. In turn, for price estimations
Estimation 20272030
Assumption: Equals the investments as in program 2024-2027
based on the defined fields of actions and their
(single unit), either a reliable reference source
2.800
€11,2M
underlying sectors. As previously outlined, the
is used or a direct reference to the program
Chargers’ passenger vehicles
See program Yearly 400 chargers Price chargers see laadpaal-informatie.nl
fields of actions pertain to sustainable mobility,
budget 2024-2027 has been made. More details
Chargers trucks
100
€3,0M
energy transition and circular economy.
of the CAPEX investments are shown in table 8.
Assumptions made for quantity and price (no direct reference found)
Replacement municipal vehicles
1.000
€75,0M
Assumptions made for quantity and price (no direct reference found)
Accessibility management
1
€1,0M
See program 2024 p.147
Traffic management
1
€6,4M
See program 2024 p.148
ANPR-camera’s
1
€2.8M
See program 2024 p.148
Mobility efficiency
1
€82,7M
See program 2024 p.151
Estimation 20272030
1
€92.9M
Assumption: Equals the investments as in program 2024-2027 (totalling €92,9M)
Smart logistics
Number of logistics hubs
4
€20,0M
Smart logistics hubs (4) for light trucks on strategic points in the city
Efficient car use
Parking & Ride Carpool locations Other emission-free zones
1
€40,0M
See program 2024 p.318
Estimation 20272030
1
€40,0M
Assumption: Equals the investments as in program 2024-2027
Employer approach
Employers’ approach 2.0 province SouthHolland
5
€5,0M
Five-year programme for the province South Holland totalling €30M. This means approximately a total investment of €1M for the city The Hague
Circular Economy
Circular Construction
7
€224,0M
Yearly construction task for homes, commercial buildings and sports fields
Household waste
7
€3,5M
In total, there are 1,496 companies associated with the “Maak” industry, of which 346 are considered “High-tech”. For The Hague, this translates to an annual investment of €9 million to make this industry circular.
Circular Industry
7
€63,0M
budget program 2024-2027. The estimations for quantities are mainly based on the Climate Electrification mobility on land
For each of the underlying sectors a rough Smart mobility
Table 8: Details of CAPEX investments Fields of Action
Action / Indicator
Number
Investment
Description
Energy transition
Collective heating
50.000 houses
€755.25M
(33.450 houses Zuidwest + 899 housesde Binckhorst + 8897 Mariahoeve en Marlot + 20 De Constant Rebecqueplein, bron: Den Haag in cijfers). Estimation: circa 80% district heating Price: DWA
Individual heat pumps
Public transportation
Biking
First two years 5.000, then 10.000 yearly
€600.0M
Assumption: €15K for full heat pump. €5K for hybrid heat pumps
Electricity
28.000
€16,8M
Solar panels related to public buildings. Yearly average 4.000 units Price: Milieucentral
Energy efficiency of homes
70.000 houses in 7 years
€952.0M
See program 204-2027: Yearly 10.000 houses lower energy label Prices: DWA
Energy efficiency of other buildings
202 yearly (1.414)
€257.9M
Quantity: Only public real estate Price: regional Heat Climate Monitor
Replacement buses
115
€74,5M
Prices based upon information of reference project Zero Emission buses for public transport in Amsterdam.
Charging infrastructure for zero emission public transport
NA
€30,0M
Estimation of investments related to: Charging infrastructure in public space Modifications for charging in garages for overnight stalling
Road infrastructure for zero emission public transport
NA
€70,2M
New public transport connections in the City of The Hague (CID) Binkhorst
Bike lanes and emission-free zones
1
€32,5M
See program 2024 p.151
Estimation 20272030
1
€32,5M
Assumption: Equals the investments as in program 2024-2027
Investment
Description
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Integrating Cost-Benefit Analysis with the
Analysis of outputs, such as cost savings, carbon
Climate Action Plan Structure
emissions reduction, creation of green jobs,
Incorporating cost analysis into the framework
and improvement in air quality, is important.
of the Climate Action Plan is essential to
Indeed, it is imperative to assess the impact
conduct a comprehensive cost/benefit analysis
of initiatives and identify co-benefits in a
of the proposed actions. This process involves
structured manner. Quantifying direct impacts
the alignment of cost analysis with the overar-
through financial modelling and carbon
ching goals of the plan and the categorisation
accounting methods, with or without expert
of actions. It also entails aligning costs with
assistance, is also necessary. The municipality
available resources, considering various
has engaged an external agency to perform
scenarios, defining metrics for assessment, and
such carbon calculations. Although direct
establishing systems for reporting and moni-
impacts, such as emission reductions, are
toring progress. This integrated approach facil-
not currently available, it is anticipated that
itates informed decision-making, ensures effi-
outcomes will be accessible at the sector level in
cient allocation of resources, and maximises the
the short term.
Table 9: Sectorial Costs Fields of Action
Subsector/ Indicator
Implemen tation Costs/ Capex
Operational Cost per year
Direct impacts (Emission reductions)*
Indirect impacts (cobenefits)*
Energy transition
Collective heating
€755.250.000
€22.657.500
PM XXX Kiloton CO2
• Self-sustainable energy consumption • Lower costs • Job creation
Individual heat pump
€600.000.000
€4.500.000
PM XXX Kiloton CO2
• Lower energy costs for homeowners and tenants • Less usage of Existing Infrastructure • New business models
Electricity
€16.800.000
€84.000
PM XXX Kiloton CO2