Energy efficiency and low-carbon technologies in urban renewal

Buildings belong to the most cost-effective sectors where carbon dioxide (CO2) reductions can be achieved, and urban regeneration offers a good intervention point for switching to sustainable fuel sources, as changes in energy infrastructure can be coupled with other construction, thus decreasing the cost. However, the potential energy savings that are feasible do not match the more ambitious policy targets. Based on case studies in the Netherlands, obstacles are identified in the context of urban renewal that need to be overcome if energy efficiency measures are to be implemented and space heating replaced with low-carbon technologies. The current free-market public policy instruments have not managed to address the obstacles identified in the case studies due to poor market signals, costs and payback periods, risks, and a lack of leadership on environmental targets and policies on sustainable urban renewal. The potential for stronger government intervention is examined for the effectiveness in reducing both energy consumption and CO2 generation. Legislation could produce a certain policy outcome in terms of CO2 reduction in urban renewal in the Netherlands if compliance and legitimacy are ensured, but policy consideration is also required to account for the dilemma of low-income households and the rebound effects associated with occupant behaviours.