The foundations of Estonia’s residential housing and energy conservation policy
The general objective of the state’s activity in the residential housing sector is to ensure that all inhabitants of Estonia have the opportunity to choose where to live. The basic task is to create conditions on the residential housing market (through legal regulation, institutional organization and assistance measures) that allow owners, tenants and civic associations in the housing sector to resolve their issues independently and to implement individual housing strategies. State development of the housing sector is based on principles of balanced social and regional development.
The basis for solving urgent problems and for sustainable development in Estonia’s housing sector is ensuring a continued supply of residential space, increasing the flexibility of regional housing markets and diversity of forms of housing, and improving the opportunities for financing housing. Specific objectives are based on the need to lengthen the lifespan of existing housing – above all, to avoid large apartment projects falling into disuse due to inadequate maintenance and repair, as well as to expedite the final resolution of problems related to tenants in buildings that were seized by the foreign regime and now have been restored to their rightful owners.
In developing the housing sector in the future, the key consideration is the fact that nearly 96% of the housing available in Estonia is privately owned. It is likely that the income levels of the bulk of the population will not allow everyone to move into new residential construction, which is why the main emphasis should continue to lie on preserving and modernizing existing residential space and on supporting owners in making the necessary investments.
Based on the general objective, the Estonian housing development plan, for the years 2003-2008 sets forth the specific state objectives, which are to be implemented through the activities of the Ministry of Economic Affairs and Communications and the Estonian Credit and Export Guarantee Fund KredEx in conjunction with local governments and voluntary housing associations.
Energy efficiency connotes the efficient and clean production, distribution, transmission and consumption of energy. Most developed industrialized nations ensure high energy performance by implementing state regulations, planning energy use and modern technology. The term energy conservation is used to signify energy saving measures applied on the level of the end consumer. Energy conservation involves meeting consumers energy needs at a lower cost. At the same time, the term energy conservation does not cover reductions in energy consumption which result in a decline in the standard of living (power outages, abnormally low indoor temperatures, and the like). Conservation-minded use of energy allows production costs to be reduced, thereby increasing the competitiveness of goods and services and, in turn, the gross domestic product. Even though the predominant approach to energy conservation puts the primary priority on saving on expenses at the end consumer, this can only be attained by a systematic approach leading to a reduction of resources and expenses throughout the entire chain, ranging from manufacturing, transport, storage, transformation and distribution, to rational and conservation-minded consumption. Dealing with the entire chain is ultimately beneficial particularly for the end consumer, since the benefits reaped from solving the problems of the system as a whole are markedly greater than optimising one individual link in the chain.
Estonia is among the countries with a high intensity of energy consumption, whose primary energy intensity per unit of gross domestic product (PEI/GDP) is much higher than the industrialized countries. At the same time, Estonia has the potential for great energy savings.
The Energy Conservation Target Programme stipulates tasks with the objective of preserving the quality of the environment, using natural resources prudently and rationally, and limiting emissions of carbon dioxide through increasing the energy efficiency.
In addition to harmonization with EU legislation, another one of the main reasons behind the creation of the target programme is the fact that compared to other industrialized countrys, Estonia’s energy efficiency is much lower.
The implementation plan for the Energy Conservation Target Programme must ensure the objectives provided in the Energy Conservation Target Programme:
- Keeping the change in energy consumption conditioned by economic growth at least two times lower than the growth of the gross domestic product.
- Reducing the private consumption of energy in all sectors of the economy and in households. Changing the fuel balance in the direction of more widespread use of environmentally friendly fuels and raising the efficiency of energy generation, transport and distribution. Ensuring CO2 emissions levels below the limits allowed for Estonia by the Kyoto Protocol (in 2008-2012 the level of emissions must be at least 8% lower than the 1990 level).
In January 2003, the European Parliament and the Council of the European Union adopted Directive 2002/91/EC which undertakes to improve energy efficiency in buildings in EU member states. The Directive requires EU member states to apply the following measures in order to reduce the energy consumption in buildings:
- develop methods for calculating use of energy
- implement minimum requirements for energy efficiency
- implement minimum requirements for renovation of buildings over 1000 m2 in area
- display energy performance labels
- regular inspections of boilers and air conditioners
