Funding the ecological refurbishment of the cities housing

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Funding the ecological refurbishment of the cities housing

Postby chris » Wed Nov 19, 2008 11:36 am

Trying to reduce the fossil fuel inputs needed as far as possible, to make the existing housing stock habitable with minimal (or no) gas, is going to be expensive.

Owner occupiers who can afford to re-mortgage their houses have the option of doing a massive insulation job, adding passive solar water heating, ground or air sourced heat pumps, rain water collection systems etc. In the very short term this seems to be the only immediate action that can be taken.

But this is not an option for people who can't afford it or who live in private or social rented housing.

There clearly needs to be a massive campaign to get housing associations and the Council to refurbish their housing stock, this is also something that can be started now, we should start by collecting statistics and information about the state of the housing stock to use in putting forward our case.

In the medium to long term perhaps a far more radical approach is needed, if this example is true it's quite inspiring:

Bart klein Ikink wrote:A stunning example

In the past, money systems without interest on a small scale existed in various forms, with varying success. They still exist today. The success of natural money will depend heavily on the rules of the system. The most stunning success story is the Wörgl currency.

On July 5th 1932, in the middle of the Great Depression, the Austrian town of Wörgl made economic history by introducing a remarkable complimentary currency. Wörgl was in trouble, and was prepared to try anything. Of its population of 4,500, a total of 1,500 people were without a job, and 200 families were penniless. The mayor, Michael Unterguggenberger, had a long list of projects he wanted to accomplish, but there was hardly any money with which to carry them out. These included repaving the roads, streetlights, extending water distribution across the whole town, and planting trees along the streets.

Rather than spending the 40,000 Austrian schillings in the town’s coffers to start these projects off, he deposited them in a local savings bank as a guarantee to back the issue of a type of complimentary currency known as 'stamp scrip'. This requires a monthly stamp to be stuck on all the circulating notes for them to remain valid, and in Wörgl, the stamp amounted 1% of the each note’s value. The money raised was used to run a soup kitchen that fed 220 families.

Because nobody wanted to pay what was effectively a hoarding fee, everyone receiving the notes would spend them as fast as possible. The 40,000 schilling deposit allowed anyone to exchange scrip for 98 per cent of its value in schillings. This offer was rarely taken up though.

Of all the business in town, only the railway station and the post office refused to accept the local money. When people ran out of spending ideas, they would pay their taxes early using scrip, resulting in a huge increase in town revenues. Over the 13-month period the project ran, the council not only carried out all the intended works projects, but also built new houses, a reservoir, a ski jump, and a bridge. The people also used scrip to replant forests, in anticipation of the future cash flow they would receive from the trees.

The key to its success was the fast circulation of scrip within the local economy, 14 times higher than the schilling. This in turn increased trade, creating extra employment. At the time of the project, Wörgl was the only Austrian town to achieve full employment.

Six neighbouring villages copied the system successfully. The French Prime Minister, Eduoard Dalladier, made a special visit to see the 'miracle of Wörgl'. In January 1933, the project was replicated in the neighbouring city of Kirchbuhl, and in June 1933, Unterguggenburger addressed a meeting with representatives from 170 different towns and villages. Two hundred Austrian townships were interested in adopting the idea.

At this point, the central bank panicked, and decided to assert its monopoly rights by banning complimentary currencies. The people unsuccessfully sued the bank, and later lost in the Austrian Supreme Court. It then became a criminal offence to issue 'emergency currency'.

Unterguggenberger was opposed to both communism and fascism, championing instead what he referred to as 'economic freedom'. Therefore, it was deeply ironic that the Wörgl experiment was first branded 'craziness' by the monetary authorities, then a communist idea, and some years later as a fascist one.

The town went back to 30% unemployment. In 1934, social unrest exploded across Austria. In 1938, when Hitler annexed Austria, he was welcomed by many people as their economic and political saviour.

The 1920's had already seen a scrip currency called the 'wara' in the German town of Schwanenkirchen. This saved the town's economy and kept a coal mine operating. It started circulating more widely, and became part of a movement called 'Freiwirtschaft' (Free Economy), based on the ideas of the economist Silvio Gesell.

Central to Gesell's ideas was the use of a hoarding fee of the kind used in Wörgl (technically known as 'demurrage'). The soundness of such an idea was affirmed by John Maynard Keynes in his 1936 work 'General Theory of Employment, Interest and Money'.

The success of the Wörgl currency inspired the well known American economist Irving Fischer to write an article which was published nationwide. Many towns copied the idea. The Americans however used a far higher tax rate (2% a week instead of 1% a month) which undermined the confidence in the stamp scrip currencies. President Roosevelt abandoned the idea completely in the New Deal. It is therefore very important to do this the right way, otherwise it will become a failure.

Perhaps the most groundbreaking feature of demurrage is that it is intrinsically anti-inflationary. Whereas conventional currencies are progressively devalued by interest, anti-inflationary money steadily increases in value. As each monthly stamp is added, the value of the note effectively increases by the stamp amount. This is technically equivalent to a negative interest rate.

The present short-term focus of investments, and the consequent lack of long-term vision are exacerbated by interest-driven currency devaluation that, from a profit perspective, reduces the appeal of longer-timescale projects. The use of a demurrage currency gives an edge to those working for sustainability, because a rate of return is achieved simply by lending out money. When money is repaid (remember these are non-interest currencies), it will have increased in value owing to the money saved by having avoided paying the monthly demurrage fees. This has the potential to enable investment in highly beneficial but economically marginal activities such as earth repair.

A recommended book that covers scrip currencies and more fully explains this 'negative interest' principle is Bernard Lietaer's 'The Future of Money'. In case the ending of the Wörgl story was disempowering, it must be said that the number of complimentary currencies around the world is undergoing an exponential growth. As of 2000, there were more than 2,500 in operation.

http://www.naturalmoney.org/


And the example in that article (one typo corrected):

Bart klein Ikink wrote:For example: you want to build a house and you have the choice between a house of € 100,000 with a yearly energy cost of € 5,000 or a house of € 200,000 with a yearly energy of € 2,000. When the interest rate is 10 percent, the cost for a cheap house with high energy consumption is as follows: € 10,000 interest plus € 5,000 energy is € 15,000 per year. The expensive house with low energy costs: € 20,000 interest plus € 2,000 energy is € 22,000 per year. If you do not have to pay interest, the expensive house with low energy cost will be cheaper.


Can we imagine a Sheffield Pound that could be used to buy locally produced renewable electricity, building services and food?
chris
 
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What Is the Solution?

Postby chris » Fri Nov 21, 2008 9:09 pm

The conclusion of an article An Overlooked Detail - Finite Resources Explain the Financial Crisis by Gail E. Tverberg on The Oil Drum:

Gail the Actuary wrote:In a finite world, we will soon find ourselves in a level or declining economy, simply because there are not enough easily-extractible resources to support growth without causing huge price spikes, followed by debt defaults, and another round of credit contraction and commodity price crashes. The only solution I can see is to develop a new monetary system that is not debt based, and is not expected to grow. Ideally, it would decline as there are fewer resources, and as the economy naturally declines.

With a flat or declining economy, long-term debt no longer makes sense. The likelihood that borrowers will be able to repay loans with interest becomes quite low, because the economic system as a whole is not growing and producing a surplus that can be used toward interest payments. It is much easier for a borrower to repay a 20-year mortgage with interest when he is getting promotions and salary increases than when his employer is downsizing and cutting hours.

Somehow, a monetary system needs to be devised which operates without debt, except for very short-term debt to facilitate commercial transactions. In addition, we need to extract ourselves from the debt morass we have created. There is now far more debt and far more promises like Social Security and Medicare than can possibly be honored with existing resources.

The only way I can imagine transitioning to a new form of monetary system is by having an overlap period in which both monetary systems are in place. The new money might initially be limited in supply and only be good for food and energy products (somewhat like a rationing system). People would receive some pay in each monetary system. Eventually, the new monetary system would replace our current seriously problematic system.
chris
 
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Re: Funding the ecological refurbishment of the cities housing

Postby chris » Tue Nov 25, 2008 2:36 pm

The Guardian wrote:A plan to create more than 10,000 jobs in the construction industry by insulating homes in the private and public sectors will be announced by Alistair Darling in today's pre-budget report.

http://www.guardian.co.uk/business/2008 ... ation-jobs


And:

PA wrote:Alistair Darling today announced an extra £100 million to help tens of thousands of families insulate their homes in a move to cut emissions and reduce energy bills.

...

Greenpeace executive director John Sauven said the money spent on extra home insulation gave "a slight green tinge to an otherwise bleak budget".

"We had hoped Mr Darling might fire the starting gun on a clean energy revolution that would unlock hundreds of thousands of green collar jobs and develop a new UK manufacturing base capable of exporting renewables and energy efficient technologies to the world.

"This was an historic opportunity to invest billions in a low-carbon, high technology future, but the Chancellor blew it.

http://www.independent.co.uk/news/uk/po ... 33350.html


So... can we get hold of some of this cash to start insulating houses in Sheffield...?

Also this makes it clear that the "Green New Deal" isn't going to happen in the short term, if at all...
chris
 
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Re: Funding the ecological refurbishment of the cities housing

Postby steve » Tue Nov 25, 2008 6:22 pm

So... can we get hold of some of this cash to start insulating houses in Sheffield...?


Not that I'm aware of. I think quite a bit of leaning first might be good. What are the best materials to use, best techniques etc.

There is a place (on the welsh border I think) that sells Kingspan cheap. I think they're seconds actually. This kind of insulation has the highest insulation properties for thickness I believe and can be used internally for walls and ceilings. Perhaps hiring a van and buying up a load to bring back might be an option.

The best kind of insulation is actually external but it costs more plus you'd need planning permission.

Maybe if more people get involved we might find someone with expertise in this field.
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Re: Funding the ecological refurbishment of the cities housing

Postby chris » Wed Nov 26, 2008 11:00 am

steve wrote:I think quite a bit of leaning first might be good. What are the best materials to use, best techniques etc.


Sure.

steve wrote:There is a place (on the welsh border I think) that sells Kingspan cheap. I think they're seconds actually. This kind of insulation has the highest insulation properties for thickness I believe and can be used internally for walls and ceilings.


The best insulation / thickness is Silica Aerogel, but it's expensive and a new and relatively untested technology...

steve wrote:The best kind of insulation is actually external but it costs more plus you'd need planning permission.


In some cases you might need planning permission due to the modifications that might be needed to accommodate the insulation. For houses in conservation areas, eg Nether Edge, external insulation won't be an option for street elevations at least. I'm unaware of any specific planning rules for external insulation.

The big advantage of external insulation is that it keeps the fabric of the building dry and warm and it increases the thermal mass of the building.

steve wrote:Maybe if more people get involved we might find someone with expertise in this field.


Several people who have come to the screenings have been undertaking internal insulation in their houses, we should try to document all these experiences, perhaps do an article for the web site about it.

Also there is the SY Energy Centre and there are a couple of example houses in Sheffield listed on the Sustainable Energy Academy site.

I have started collecting info and links on the wiki.
chris
 
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Free Insulation for Sheffield

Postby chris » Wed Nov 26, 2008 7:29 pm

This is from the Council's web site:

We are offering free insulation for 64,000 homes in an ambitious £10.5 million initiative to cut fuel poverty and reduce the city’s carbon footprint. As well as being funded by us, the project is also funded by Government grant and funding from the Energy Supply Companies themselves.

The 64,000 homes will be included in the first 3 years of the programme. It is then planned to roll out the programme to the rest of the city in 3 year blocks.

Like any schemes of this size, we'll need to plan where we are going to start the work. We've not yet decided where this will be.

Our advisors will provide free advice on being more energy efficient and how to get free loft and cavity wall insulation.

If you get a visit and your home's suitable then you can get free insulation regardless of your income. At present we are offering wall insulation for cavity walls only. Solid walls are significantly more difficult to insulate. But our approach may offer other solutions for these homes, such as discounts on external wall insulation, or advice on small-scale renewable energy.

If you are not included in the first phase of the programme, you can still get free or discounted insulation. If you are on certain benefits, you will qualify for free insulation as part of the Warm Front Scheme. Otherwise, everyone in Sheffield qualifies for discounted insulation from the Save 'N' Warm Scheme.


Of course it makes sense to pick the low hanging fruit first but this scheme is going to be of little help to people in 100 year old houses with solid walls and rooms in the attic...
chris
 
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Climate Safety on Buildings

Postby chris » Wed Dec 03, 2008 11:17 am

This is the section of the Climate Safety report on buildings:

Buildings

The challenge of zero-carbon housing does not concern new homes, but existing homes: 80% of the homes we will inhabit in 2050 have already been built [211]. The same is largely true of commercial and public buildings.

Refurbishment of existing homes is estimated to produce around a third of the emissions of building a new one. [212] According to Government estimates, however, “the average existing home requires four times as much energy to heat as the average new home.” [213] With new homes having to meet increasingly stringent in-use carbon emissions targets, therefore, it is imperative that refurbishment of the existing stock also tackles the task of reducing emissions from occupancy of the house.

Dr Brenda Boardman of Oxford’s Environmental Change Institute has undertaken an extensive study on how to achieve an 80% reduction in emissions from UK housing by 2050. Her key recommendations include:

  • Minimum energy standards for homes at the time of sale or letting based on Energy Performance Certificates

  • Solid wall insulation and other measures applied across entire streets at a time, bringing costs down

  • Savings through behavioural change, driven by instal- lation of smart meters and other ways of communicat- ing energy information to building users

  • Immediate 3.7% annual reductions from the housing sector, the “first few years” being “critical to changing mindsets and the present flat trajectory”214

These measures have the potential to reinvigorate the UK’s construction industry and to develop skills in sustainable building practices.

Spending on construction in the UK is split roughly in half between new build and refurbishment (repair, maintenance and improvement). [215] Refurbishment work is predominantly carried out by smaller firms. Changing the practices of these firms will be of critical importance in improving the environmental performance of buildings.

Some sectors of the industry are well-placed to support efforts to refurbish the existing stock. The Federation of Master Builders recently asked the Government to set out a policy framework for mandatory refurbishment standards consistent with an 80% CO2 reduction target by 2050. This “Code for Sustainable Refurbishment” would provide much greater benefits than the Government’s existing [2016] zero-carbon target for all new homes.

Timescales are important. The urgency of ensuring climate safety requires that current voluntary standards such as the Code for Sustainable Homes and Building Research Establishment Environmental Assessment Method for non-domestic buildings be made compulsory as a Code for Sustainable Buildings, with standards set high and soon.

Notes

211. “Homes ‘can cut CO2 by up to 80%’”, BBC News Online, 27 November 2007. Available online at: http://news.bbc.co.uk/1/hi/sci/tech/7113165.stm.

212. “New Tricks with Old Bricks: How reusing old buildings can cut carbon emissions”, Empty Homes Agency report, 2008. Available online at: http://www.emptyhomes.com/documents/pub ... 03-081.pdf.

213. BERR, “UK Renewable Energy Strategy Consultation”, ibid, p. 50, para. 2.3.6. Available online at: http://www.berr.gov.uk/files/file46799.pdf.

214. Brenda Boardman, “Home Truths: A Low-Carbon Strategy to Reduce UK Housing Emissions By 80% By 2050”, research report for The Co-operative Bank and Friends of the Earth, Executive Summary. Available online at: http://www.eci.ox.ac.uk/research/energy ... xecsum.pdf.

215. Department for Business Enterprise and Regulatory Reform, Construction Statistics Annual 2007, London, The Stationery Office, 2007. Available online at: http://www.berr.gov.uk/files/ file42061.pdf.
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