Tijn Croon
ESR11
Tijn is a PhD candidate at the Delft University of Technology, where he looks into possible tensions between the environmental sustainability and affordability of European housing, with specific emphasis on the risks for vulnerable groups. He conducts spatial and statistical analysis on large data sets and explores innovative policies through case study research. Prior to his doctoral studies he was a consultant at Springco Urban Analytics, a research and advisory firm based in Rotterdam focused on urban development, real estate, and housing. Tijn received a M.Sc. in Sustainable Cities from King's College London in 2020, where he wrote his dissertation (Best Thesis Award 2020) in the Geocomputation and Spatial Analysis research group under the supervision of Dr Jon Reades. During his Masters Tijn won the Bank of England's annual Technology Competition together with fellow students, developing an idea to digitise debt counselling. In London he also worked as a trainee at the Siemens Centre of Competence for Cities. Prior to this period Tijn received a B.A. in Political Science and M.Sc. in Political Economy from the University of Amsterdam.
September, 11, 2023
November, 22, 2022
September, 17, 2021
The Governance of the Just Transition:
Targeting Energy Poverty across Europe
Energy price volatility is expected to remain high due to geopolitical uncertainty and the ongoing shift towards low-carbon energy generation. However, the impact of price spikes varies across society, with households having lower incomes, limited savings, and less energy-efficient homes experiencing a disproportionate burden. Energy poverty, the inability to secure sufficient domestic energy services, can have deteriorating effects on livelihoods. Consequently, addressing energy poverty has become a critical focus in policymaking and research, particularly within the context of the European Green Deal. This PhD project delves into how European policymakers can effectively target vulnerable households at risk of energy poverty to ensure that the transition towards low-carbon housing is perceived as a 'just transition.' It seeks to contribute to our understanding of 'recognitional justice' in several ways. Firstly, it highlights the added value of poverty gap indices in assessing the intensity and inequality of deprivation stemming from energy poverty. Additionally, it examines various strategies employed by government and social housing providers in France, the UK, and the Netherlands to alleviate energy poverty. Finally, it develops a multilevel governance framework that identifies and discusses the roles and responsibilities of different actors in European energy poverty alleviation. This project uses a combination of quantitative and qualitative research methods to provide a comprehensive overview of how recognitional justice can be integrated into policies across various levels of governance. Through these efforts, it aims to enhance the identification of energy poverty, improve the efficiency of alleviation policies, and bolster public accountability among the responsible stakeholders.
The Governance of Energy Poverty Alleviation:
Comparative Analyses of Targeted Policies and Strategies across Europe
Energy price volatility is likely to remain high due to geopolitical uncertainty and the transformative transition towards low-carbon generation. However, the consequences of price peaks are unevenly distributed across society as households with low incomes, little savings, and inefficient dwellings are disproportionately affected. Energy poverty – the inability to secure sufficient domestic energy services that allow for participation in society – can have deteriorating effects on their livelihoods. Therefore, energy poverty alleviation has become an important policy and research area, not least in the context of the ‘Renovation Wave’, the European transition towards low-carbon housing. This PhD project explores opportunities for European policymakers to target vulnerable households at risk of energy poverty so that the Renovation Wave is perceived as a ‘just transition’. It aims to contribute to an understanding of ‘recognitional justice’ in several ways. First, it explores the added value of the energy poverty gap in assessing the intensity and inequality of deprivation caused by energy poverty. Moreover, these dimensions are used to identify driving household, dwelling and spatial characteristics of energy poverty in the Netherlands. Subsequently, it suggests targeted interventions housing associations could implement to support those in need and assesses the target efficiency of state-level support policies in France, the UK, and the Netherlands. Finally, it develops a multilevel governance framework indicating and discussing the roles and responsibilities of actors in European energy poverty alleviation. The project uses a mix of quantitative and qualitative research methods to provide a comprehensive overview of how recognitional justice can be integrated into policies across governance levels. By doing this, it aims to enhance identification of energy poverty, efficiency of alleviation policies and public accountability of actors responsible.
The Governance of a Just Housing Transition:
Targeting Disadvantaged Households within the European ‘Renovation Wave’
As residential energy consumption constitutes a significant share of Europe’s carbon emissions, the European Commission aims to establish a ‘Renovation Wave’ by incentivising energy efficiency measures and renewable energy sources while discouraging the usage of fossil fuels. However, even though it is generally accepted that this can lower housing expenditure in the long term, policymakers are becoming increasingly concerned about the short-term negative effects that retrofit costs and levies may have on the position of disadvantaged households. This research seeks to provide insight into the effects of sustainability incentives on their ability to afford housing and explores the embeddedness of ‘just transition’ principles within multilevel housing governance. The overarching principles of recognitional justice, procedural justice and distributional justice will be conceptually deepened and empirically assessed in different housing contexts. To that end, I first intend to determine specific vulnerabilities that arise in this transition by quantitatively assessing microdata. Identifying the characteristics of those households at risk could help to comprehend differences and subsequently design policies that accommodate specific needs. In the following phase I will focus on case studies at different levels of housing governance, looking at the application of just transition principles on different levels, but also evaluating how municipalities, housing associations and other local actors identify inequitable transition outcomes and incorporate fairness within their policies. Besides scientific publications, the project’s output will include policy recommendations with guidelines for housing governance actors to address vulnerabilities and deliver a just housing transition.
Summer in the City
Posted on 13-06-2023
Last week I had the pleasure of attending the International Social Housing Festival (ISHF) in Barcelona alongside fellow network members and 2,000 (!) other participants. The event encompassed a remarkable week filled with seminars, keynote addresses, and informal discussions centred around the core themes of RE-DWELL: housing affordability and energy renovation. I would like to dedicate this blog to a particular question posed during a panel discussion I took part in, which explored the intersection between alleviating energy poverty and mitigating heat stress, as it truly sparked some thinking.
On the final day of the conference, a warm Friday on June 9th, I had the privilege of participating in an event organized by Diana Yordanova from Housing Europe. The event, titled 'Working Formulas and Question Marks for Pathways Out of Energy Poverty,' kicked off with Alice Pittini, Housing Europe's research director, sharing insightful highlights from this year's State of Housing report. Additionally, a panel discussion on effective strategies for alleviating energy poverty took place, where I joined the stage alongside esteemed experts and practitioners such as Eleni Kanellou, Anu Sarnet, Sven Van Elst, and Sergi Delgado. During the event, I had the opportunity to present some of the findings from a collaborative research paper I am currently working on with Joris Hoekstra from TU Delft and Ute Dubois from ISG Paris. Our paper focuses on how social housing organisations can effectively reduce energy poverty among their tenants.
Then, moderator Diana, posed a twofold question: "What were the most efficient measures implemented by housing organisations to shield tenants from the energy crisis during the past winter? And as the hot months lie ahead, what should social housing organisations in countries like Spain, Portugal, and Greece keep in mind as they prepare to support tenants and residents in dealing with heat stress?"
Now, while I know that the energy poverty literature increasingly looks at the lack of insulation and appliances that prevent households from cooling their homes sufficiently in summer, most of the research (including my own) currently tends to focus on the inability to heat during cold winters. However, upon reflecting on these questions, I came to realise that many measures taken by housing providers to address energy poverty in winter months would also contribute to the prevention and mitigation of heat stress.
First and foremost, it is crucial to to identify those requiring urgent assistance, specifically the most vulnerable tenants. Having a clear understanding of where to concentrate efforts, particularly during periods of crisis, is vital for short-term interventions. In another enlightening session at the ISHF, focused on climate justice in the Mediterranean, I had the privilege of listening to Eleni Myrivili, the current Chief Heat Officer of the City of Athens. She eloquently elucidated how heat exacerbates inequalities and lays bare the disparities among various socio-economic groups. This resonates with our observations during the previous winter, as the brunt of these extreme weather events is borne by (largely the same) low-income households residing in energy-inefficient dwellings. Therefore, the initial step is to identify the most vulnerable tenants. Who are they? And where do they live?
Another interesting approach that emerged during the previous winter, particularly in the United Kingdom, was the establishment of warm hubs by social housing organisations and their charitable arms. Warm hubs are essentially community centres where individuals can gather, find comfort, receive blankets, access food, and, most importantly, avoid the need to excessively heat their homes and risk high energy bills. It requires little imagination to envision that warm hubs could serve as cool hubs during heatwaves, providing air-conditioned environments to those most susceptible to heat stress.
Hence, resident engagement represents a critical aspect for both cold winters and hot summers. When executed effectively, resident engagement can significantly reduce vulnerability and foster trust between landlords and tenants. Particularly after retrofitting measures, it is essential to educate and promote sustainable behaviours. New technologies can be challenging to comprehend, especially when individuals are already facing difficult circumstances or language barriers. Improving short-term resilience is thus facilitated by fostering engagement.
And finally, when considering long-term resilience in both winter and summer seasons, it is essential to address the most decisive solution: renovation. Particularly in Mediterranean regions, where extreme heat reaches unprecedented levels, the implementation of green roofs and facades becomes crucial to alleviate such conditions. Additionally, measures such as insulation and double glazing play a pivotal role in reducing vulnerability during both winter and summer months, and their implementation can be achieved within a relatively short timeframe. Therefore, accelerating Europe’s Renovation Wave should be an absolute priority.
This introspection has pushed me to expand my thinking beyond the confines of Western European countries and delve into the diverse contexts in which housing providers operate throughout Mediterranean Europe. Moreover, it has reminded me of my master's dissertation at King's College London, written during the strange (and hot) summer of 2020 amid the Covid-19 pandemic. In that research, I examined the vulnerability of residents in the Metropolitan Region Rotterdam The Hague to heat stress, considering numerous variables (find the output below). Perhaps it’s about time for me to revisit and re-evaluate this work once again!
Conferences
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Thriving Through Crises
Posted on 22-11-2022
Ursula von der Leyen, President of the European Commission, used the word ‘crisis’ ten times in her latest State of the Union. As one of her distant predecessors, Jean Monnet, once said that “Europe will be forged in crises”[i], I could hardly think of a more interesting time to be seconded in Brussels. Whether crises relate to housing, climate, energy, cost-of-living, or the war in Ukraine, they necessitate representatives to go beyond their own interests and come together in a constructive matter. I greatly appreciate the opportunity to take a closer look at this political dance during my secondment at Housing Europe.
Brussels comes with a unique dialect, often ridiculed and currently under scrutiny after a study (Rauh, 2022) showed that it baffles anyone except technocrats who use it on a day-to-day basis. Frankly, I did not have a clue what a ‘trilogue meeting’ consisted of before starting here, but now I have become fascinated by this closed-door negotiation process between the European Commission, the European Parliament and the European Council (i.e. national governments). In the past few weeks, I have tried to follow talks on the Energy Performance of Buildings Directive (EPBD) revision and the Emission Trading Scheme (ETS) extension for Housing Europe.
Once you find your way through the EU’s web of acronyms, it is rather engaging to read through related documents and visit relevant events. They allow you to identify trends that will be further developed across the continent in the years after. While discussions about the promise of ‘one-stop-shops’ and ‘energy communities’ are not new, recent emphasis on these terms in European corridors suggest that a surge of policy incentives is to be expected in the near future. Another ubiquitous term, at least since last year’s surge in gas prices, lies at the heart of my research: energy poverty.
During Housing Europe’s annual Renovation Summit, held last week, energy poverty was even designated as one of the most pressing issues of our time by Alessia di Gregorio, deputy head of Social Economy at the European Commission. She urged member states to both monitor it continuously as well as address it with adequate retrofit policies. Marcos Ros Sempere, an MEP who serves as EPBD ‘shadow rapporteur’, referred to energy poverty alleviation as one of the main pillars of the Renovation Wave, emphasising the need to allocate funds to “the people who need it most”.
It strengthens me in my belief that national governments and other stakeholders (such as housing associations and energy suppliers) need to monitor which residents are most at risk. Not only because the revised Electricity Directive (Article 29 in Directive 2019/944 for EU insiders) and upcoming Social Climate Fund require them to, but because recognitional justice is a prerequisite for distributional justice. The only way to make the ‘just transition’ more than another empty shell is by identifying the disadvantaged, having them participate in the legislative process, and drafting policies that genuinely benefit their livelihoods.
[i] The original quote was "L'Europe se fera dans les crises et elle sera la somme des solutions apportées à ces crises" which would translate into "Europe will be forged in crises, and will be the sum of the solutions adopted for those crises" (Monnet, 1976).
References
Monnet, J. (1976). Mémoires. Paris: Fayard.
Rauh, C. (2022). Clear messages to the European public? The language of European Commission press releases 1985–2020. Journal of European Integration, 1-19.
Secondments
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Bridging research and practice during secondment at Clarion
Posted on 08-04-2022
One of the main objectives of transdisciplinary research is the collaboration between academics and practitioners in trying to solve societal issues. This approach is particularly welcome in the field of fuel poverty[1], as the key role of housing associations generally remains overlooked while a significant share of their tenants cannot afford domestic energy services. In addition, the body of scholarship on fuel poverty measurement has grown rapidly, but its use in practice has hardly been addressed (Bouzarovski, Thomson, & Cornelis, 2021). During my secondment at the research department of Clarion, the UK’s biggest housing association, I have tried to explore and combat these mismatches.
Ever since Brenda Boardman (1991) wrote her famous work on fuel poverty, the UK has been at the forefront of the policy agenda (Middlemiss, 2017). It also has the longest tradition of relevant research with almost a third of scientific publications up to date authored by UK scholars (Xiao, Wu, Wang, & Mei, 2021). In my view, this knowledge advantage is also reflected by the fact that professionals in all walks of the organisation were fully acquainted with the term and Clarion’s predecessor Affinity Sutton had already developed its first ‘fuel poverty vulnerability indicator’ back in 2013. Together with my peers, I examined whether and, if so, how the vulnerability indicator could be aligned and adapted to the latest scientific findings, recent regulatory changes, and daily operations.
Encouraged by my supervisor Dr Elanor Warwick, I started my secondment reaching out to as many new colleagues as possible. This resulted in dozens of very engaging informal conversations that helped me a lot, not only in my investigation for Clarion, but certainly also in my wider academic exploration. I believe these practical insights will steer my research trajectory to a more impactful course. Field visits to Wisbech and Tonbridge, where Clarion’s whole house retrofits are co-financed by the Social Housing Decarbonisation Fund Demonstrator, introduced me to day-to-day operations on the ground. The measures consisted of applying triple glazing, external wall and loft insulation, as well as environmentally friendly technologies such as air source heat pumps, solar panels and centralised mechanical ventilation. Besides reduction of carbon emissions, the upgrade will save tenants between £300 and £500 on fuel bills each year (savings will be much higher with the current price peaks).
After six weeks of informal interviews with professionals about the targeting of retrofits, practical barriers in home improvement and energy advice for tenants, I felt that I reached a satisfactory degree of saturation. Gradually it had become clearer that although the vulnerability indicator was very holistic, methodologically innovative, and had provided valuable insights into the fuel poverty experienced by tenants in 2013, its use in practice was limited. In my view, there are various possible explanations for this, amongst which the following: 1.) the used formula was not exactly intuitive and understandable for the end-user, which could have impeded take-up; 2.) heavy weighting of some variables was difficult to justify due to data quality concerns; 3.) low-scale results (preferably building block level) were not easily accessible.
To improve interpretability across the organisation, I suggested to differentiate the vulnerability indicator into two different ones: one easy-to-understand binary indicator based on income and energy efficiency and thus aligned with the LILEE indicator of the Department of BEIS (2022), and one more holistic scale indicator that would also take into account socio-demographic and health characteristics. The results of the binary indicator would be suitable for monitoring and external reporting but could also inform retrofit decision-making, especially when bidding for public funding schemes. On the other hand, the scale indicator promised be an appropriate tool to flag specific households for interventions from the energy guidance team and neighbourhood response officers or for extended support during retrofit works.
To enhance reliability, I recommended the research team to include an indicative proxy question on fuel poverty in the next annual survey. During my secondment I conducted statistical analyses on data from the last conducted survey, and found that the question “How easy do you find it to keep your home at a comfortable temperature?” came closest. However, a more unequivocal alternative would be the question asked to respondents all across Europe by Eurostat (2021): “Can you afford to heat your home?” This way, the response relates directly to affordability, and cannot be interpreted differently (like the user-friendliness of the thermostat). While surveyed responses in the context of fuel poverty remain culturally biased (Thomson, Bouzarovski, & Snell, 2017), comparing the results from both indicators with the perception among those tenants would increase their validity. Together with other qualitative techniques this would also advance the understanding of lived experiences of tenants in fuel poverty.
To conclude, I think the secondment component is one of the greatest things about MSCA-ITNs, because they smoothly blend research and practice together. My future research direction has altered for the better because of my experiences at Clarion, and at the same time I have been able to share academic insights early on in my doctoral programme. Therefore, I am delighted to keep working with Clarion on these topics in the coming months and years, as I will be assisting the team in drafting an updated fuel poverty strategy and will return to London later this year for a comparative focus group study.
[1] Since the term ‘fuel poverty’ is common in the UK, I prefer to use it in this context. Across mainland Europe the term ‘energy poverty’ is increasingly used.
References
BEIS. (2022). Methodology handbook LILEE with projection. Retrieved from https://www.gov.uk/government/publications/fuel-poverty-statistics-methodology-handbook
Boardman, B. (1991). Fuel Poverty: From Cold Homes to Affordable Warmth. London: Pinter Pub Limited.
Bouzarovski, S., Thomson, H., & Cornelis, M. (2021). Confronting Energy Poverty in Europe: A Research and Policy Agenda. Energies, 14(4). doi:10.3390/en14040858
Eurostat. (2021). Can you afford to heat your home? [Press release]. Retrieved from https://ec.europa.eu/eurostat/en/web/products-eurostat-news/-/ddn-20210106-1
Middlemiss, L. (2017). A critical analysis of the new politics of fuel poverty in England. Critical Social Policy, 37(3), 425-443. doi:doi.org/10.1177/0261018316674851C
Thomson, H., Bouzarovski, S., & Snell, C. (2017). Rethinking the measurement of energy poverty in Europe: A critical analysis of indicators and data. Indoor Built Environ, 26(7), 879-901. doi:10.1177/1420326X17699260
Xiao, Y., Wu, H., Wang, G., & Mei, H. (2021). Mapping the Worldwide Trends on Energy Poverty Research: A Bibliometric Analysis (1999-2019). Int J Environ Res Public Health, 18(4). doi:10.3390/ijerph18041764
Secondments
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Lisbon as an all-round learning experience
Posted on 29-09-2021
When trying to contemplate the first RE-DWELL workshop in the Portuguese capital, the first thing that comes to mind is that it was such an all-round learning experience. Not just because our joint programme included round-the-clock activities, but mainly because we touched upon so many different subjects, perspectives and case studies. At one moment a philosophical debate arose about flat ontologies, while seemingly the next moment the practical applicability of Building Information Modeling (BIM) would be the subject of discussion.
The more philosophical debate took place during a Roundtable - not pictured on the left, which was a leisurely lunch on our first day - with Professor Clapham (University of Glasgow), Professor Debizet (University Grenoble Alpes), Professor Petrescu (University of Sheffield) and Professor Salama (University of Strathclyde). These renowned academics gave their views on the concept of transdisciplinary research for affordable and sustainable housing, which helped us to grasp the concept even better. But besides a clarification, in a way the speakers also challenged us.
As Clapham (2018, p. 176) puts it: “there is scope to design a theory of housing that may be drawn partly from existing concepts that fit the housing context, as well as through the design of concepts that emerge from the specific nature of housing itself. Although the production of a specific, transdisciplinary theory of housing is not practicable at the current state of knowledge, it should be a major priority to derive and test out the specific concepts that are needed to build the theory.” This is where the RE-DWELL team should pick up the gauntlet, try to overcome monodisciplinary paradigms, work together to redefine key concepts interdisciplinarily and eventually build these up into universal transdisciplinary knowledge.
An important element of a transdisciplinary approach is the integration of non-academic stakeholders, and this first workshop in Lisbon immediately demonstrated how valuable this is. Field visits and guided tours make a research project come alive and inspire you in ways that scientific articles are not capable of. But first and foremost, conversations with practitioners, policymakers and in-house researchers can help ESRs to design their methodology in a way that could truly address societal challenges.
A good example is how a municipality official (affiliated with the pioneering BIP/ZIP programme) contested the notions of ‘top-down’ and ‘bottom-up’ governance, and explained by means of obvious examples how this dichotomy is not found in practice. These conversations are instrumental in transdisciplinary research and make us all look forward to our secondments even more.
Reference
Clapham, D. (2018). Housing theory, housing research and housing policy. Housing, Theory and Society, 35(2), 163-177.
Reflections
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Targeting and Policy Efficiency: Exploring the Intended Reform of the Warm Home Discount
Created on 03-04-2023
While gas prices in Europe have surged since the war in Ukraine started, price volatility was already high before the Russian invasion (Statista, 2022). Furthermore, it is to expected that the low-carbon transition will cause more temporary peaks in residential energy prices (Shi & Shen, 2021). This raises the importance for governments to mitigate the effects on households at risk of fuel poverty, most notably low-income households in poorly insulated homes. There are typically three policy angles (Simshauser, 2021): tariff design, retrofit programmes to improve energy efficiency, and targeted income support or subsidies. This case study explores an innovative proposal within the latter category.
Target efficiency of policy
In the last decades, governments have moved from universal to more targeted social welfare policies, aiming to ensure their redistributive character in times of austerity (Ortiz & Cummins, 2020). Targeted support is especially important in the context of residential energy affordability because generic measures could reduce the willingness of high-income homeowners to retrofit their homes, and therefore represent perverse incentives. However, targeted policies are by nature imperfect, as it requires balancing between ‘E-mistakes’ (also called ‘leakage’) in which compensation is given to non-targeted groups, and ‘F-mistakes’ (also called ‘under-coverage’) in which part of the targeted group is not given compensation (Cornia & Stewart, 1993). The former is reflected by ‘vertical target efficiency’, the extent to which beneficiaries need compensation, and the latter by ‘horizontal target efficiency’, the extent to which those deemed to need the compensation receive it (Weisbrod, 1972). Moreover, targeting could be problematic when it induces informational distortion, incentive distortion, stigmatisation or significant administrative losses (Sen, 1998).
Warm Home Discount Reform
In addition to existing income support policies, such as the Cold Weather Payment and the Winter Fuel Payment, the Brittish government introduced the Warm Home Discount (WHD) for England and Wales in 2011. It has offered rebates of up to £140 on annual electricity and gas bills for specific groups: households in receipt of Pension Credit Guarantee form the ‘core group’ and households on various working age benefits the ‘broader group’ (DECC, 2011). While the core group receives the rebate automatically, the broader group must apply for the scheme (with a first-come first-served basis and a total spending envelope of around £350 million) to their energy supplier. In practice, this means that a large share of the eligible group does not know about its entitlement or is refused by suppliers because their spending cap is already exceeded. In addition, the WHD has ever since its announcement been criticised for not reaching all fuel poor households (Consumer Focus, 2011).
In response to this criticism, the Department of Business, Energy and Industrial Strategy (BEIS) published a consultation document for reform of the WHD (BEIS, 2021). It wants to improve targeting of fuel poor households, automate all rebate payments, and reach more households by raising the spending envelope to £475 million. The proposal to improve and automate targeting is innovative in its current shape: BEIS wants to combine data from public and private organisations to identify households on low incomes living in substandard housing or dealing with high energy costs. It would therefore be the first social welfare benefit that is automatically provided based on a prediction of low energy efficiency, using specific housing characteristics such as floor area, property age and property type as proxies.
Narrow focus on vertical efficiency
However, in its substantiation of the reform, BEIS seems to interpret target efficiency simply as vertical efficiency, which leads to a neglect of horizontal efficiency effects.
BEIS modelling suggests that with the current scheme around 37% of WHD recipients are fuel poor, while the reform would increase this number to 47% of recipients. This reflects the vertical efficiency of the reform, as there would only be 53% ‘leakage’ to the non-targeted group rather than 63%. But arguably of greater importance is the horizontal efficiency, the question what proportion of all fuel poor households in England and Wales would be reached. This percentage remains unknown, leaving the public guessing how much ‘under-coverage’ there would be under the proposed reform. Given the stringent WHD eligibility criteria, my hypothesis would be that under-coverage is high. However, further research is needed to find out whether this is indeed the case, and to explore how setting a different threshold could improve the horizontal efficiency of a future reform.
Furthermore, BEIS could think about using a broader understanding of vertical efficiency, not just considering the incidence of fuel poverty, but also the severity on a household level. BEIS now only modelled the proportion of fuel poverty (P0) and not the poverty gap (P1). However, poverty is not a binary phenomenon and should thus not be treated as such. When Hills (2012) was commissioned by the Brittish government to enhance fuel poverty statistics, he introduced the ‘fuel poverty gap’ as an enrichment of the proportion, and envisioned it to be the main driver of policy design. BEIS’ approach in the consultation document demonstrates that this vision has not materialised. Further research could explore whether spending the same amount on a ‘percentage of the utility bill’ rather than a standard discount could lower the fuel poverty gap, as Simshauser (2021) showed for Australian targeted support mechanisms.
The Social Climate Fund: Materialising Just Transition Principles?
Created on 11-07-2023
The EU's Social Climate Fund (SCF) was officially approved by the European Parliament on 18 April 2023 as part of the broader Green Deal initiative, which seeks to expand the scope of the Emission Trading Scheme (ETS) to encompass buildings, transport and other sectors. This extension of the ETS is expected to result in increased energy costs and gasoline prices for households and businesses. To assist vulnerable households, micro-enterprises, and transport users in mitigating the financial impact of these price increases, EU Member States may use resources from the SCF to finance various measures and investments. The SCF will primarily be funded through the revenues generated by the new emissions trading system, with a maximum allocation of €65 bn, which will be supplemented by national contributions. Temporarily established for the period of 2026-2032, the fund aims to provide support during this specified timeframe.
Preliminary Exploration of Merits and Limitations
The initiation of the SCF has received praise from various NGOs advocating for a just transition (WWF, 2022). Supporters highlight its significance in integrating a social dimension into EU climate policies, despite some remaining weaknesses. The SCF’s spending rules are commended for striking a suitable balance between financing structural investments and providing temporary direct income support to vulnerable households. Through the SCF, Member States can finance subsidies that will enable these households to renovate their homes, adopt energy-efficient technologies, and access renewable energy and sustainable transportation. Moreover, various NGOs welcome the requirement for government consultation with subnational administrations and civil society organizations. This could potentially facilitate greater engagement of the target groups in the legislative process. Notably, the SCF also introduces a definition of transport poverty, marking a first in EU policy, and aiding member states to identify those eligible for support (thereby improving recognitional justice).
Regarding the aforementioned weaknesses, there is a range of concerns. Firstly, the projected timeline may pose a limitation. Initiating green investments for vulnerable households only a year before the introduction of carbon pricing may not allow sufficient time for the desired impact. Projects related to energy renovation and improved public mobility infrastructure typically require several years to yield tangible results. Additionally, while Member States are required to include consultation with various stakeholders in their national ‘Social Climate Plans’ (SCPs), the level of participation outlined in the proposed regulation is minimalistic, raising concerns about ensuring procedural justice.
Perceived Importance of Targeting
The legislative text (EU, 2023) underscores the significance of consistent targeting, and Member States are required to furnish comprehensive information regarding the objective of the measure or investment and the specific individuals or groups it aims to address. Additionally, the European Commission expects an elucidation of how the measure or investment will effectively contribute to the accomplishment of the Fund's objectives and its potential to reduce dependence on fossil fuels.
Targeting is deemed particularly crucial with regard to direct income support, as universal energy support tends to generate inflationary pressures, encourage unsustainable behaviour, and yield regressive effects. The legislative text states that is crucial to perceive such support as a temporary measure accompanying the decarbonisation of the housing and transport sectors, rather than a permanent solution that fails to address the fundamental causes of energy poverty and transport poverty. Thus, this support should exclusively target the direct consequences of including greenhouse gas emissions from buildings and road transport under the purview of Directive 2003/87/EC, without encompassing electricity or heating costs related to power and heat production covered by the same directive. As stated, "recipients of direct income support should be targeted, as members of a general group of recipients, by measures and investments aimed at effectively lifting those recipients out of energy poverty and transport poverty" (EU, 2023: p.4).
The share of the SCF designated for renovation projects should also be specifically directed at the vulnerable households and transport users who are already receiving direct income support. SCPs are allowed to extend support to both public and private entities, including social housing providers and public-private cooperatives, in developing and providing affordable energy efficiency solutions and suitable funding mechanisms that align with the social objectives of the Fund. This support could include ‘financial assistance’ or even ‘fiscal incentives’, which poses the question of how lenient should the approach of the European Commission be towards the state support of social housing organisations, given the tensions that have emerged in the past (Gruis & Elsinga, 2014).
Ex Ante and Ex Post Assessment of Social Climate Plans
EU Member States are required to submit national Social Climate Plans (SCPs) no later than 30 June 2025, so that they can be given “careful and timely consideration”. The plans should encompass an investment component that promotes the long-term solution of reducing reliance on fossil fuels, potentially incorporating additional measures, such as temporary direct income support, to alleviate any immediate adverse effects on income.
The primary objectives of these plans must be twofold. Firstly, they should provide vulnerable households, vulnerable micro-enterprises, and vulnerable transport users with the necessary resources to enable them to finance and undertake investments in energy efficiency, the decarbonisation of heating and cooling systems, the adoption of zero- and low-emission vehicles, and sustainable mobility. This support may be provided through mechanisms such as vouchers, subsidies, or zero-interest loans. Secondly, the plans should mitigate the impact of rising fossil fuel costs on the most vulnerable segments of society, thus fighting energy poverty and transport poverty during the transitional phase until the aforementioned investments have been implemented.
The legislative text contains comprehensive information concerning the criteria utilised to assess the SCPs upon submission and evaluation after implementation. The set of ‘result indicators’ that are specifically relevant to the 'building sector' can be found in the table accompanying this case study. Time will tell whether this framework is sufficient to ensure that besides ‘recognitional justice’ and ‘procedural justice’, the SCF will make sure that the European Green Deal delivers ‘distributive justice’.
Housing Governance
Just Transition
Area: Policy and financing
The shift from ‘government’ to ‘governance’ has been debated since the early 1970s. Whilst state interventionism had been widely embraced within western societies during the post-war decades, governments gradually moved from exercising constitutional powers to acting as facilitators and cooperative partners (Rhodes, 1997). Over the course of a few decades, this resulted in governance as ‘interactive social-political forms of governing’ (Nag, 2018, p. 124). Hira and Cohn (2003, p. 12), influenced by Keohane (2002), define governance as “the processes and institutions, both formal and informal, that guide and restrain the collective activities of a group”. Its decentralised and flexible nature could still include public actors but would also leave space for private and third-sector parties to provide services in hybrid and temporary institutional arrangements.
To formulate one single definition of ‘housing governance’ as a particular mode of governance is however difficult due to its multilevel character. Housing could relate to either a family home, a housing association, or a complete local/national housing governance framework. On a household level, Wotschack (2005, p. 2) defines governance as managing “the daily time allocation of spouses by household rules and conflict handling strategies”. The work of Wijburg (2021) indicates that local/municipal governance entails a set of public interventions, strategies, policies and provisions used to provide local needs (e.g. housing supply). On the national level, Yan et al. (2021) define public rental housing (PRH) governance as “a structure of a wide range of government and non-governmental actors that act in all its phases of PRH provision from policy design to implementation and realisation”.[1] This specific definition on PRH combines the domestic definition of governance with Wijburg’s understanding of governance on the local level. Within the Chinese context, the national government provides policies and creates nationwide operational methods, whilst local governments implement and formulate the policies locally (Yan et al., 2021).
Critics point out that a more decentralised governance structure complicates the public accountability of housing provision. Peters and Pierre (2006, p. 40) distinguish problems concerning the ‘isolation’ and ‘enforcement’ of accountability. The former refers to demarcation, as it is easier to measure the performance of a government housing agency directly responsible for new build and operations, than those from the private sector in an indirect role trying to stimulate and facilitate other actors and contracting out construction and operations (Shamsul Haque, 2000). The latter relates to the accountability deficit that arises when responsibility is transferred from democratically governed municipal agencies to actors without a representative institutional arrangement, and thus without control mechanisms for tenants or the wider population (Mullins, 2006).
Throughout history, understanding of governing has evolved together with the role of government. The state plays a different role in capitalism, corporatism and socialism, which has varying effects on local and/or (inter)national levels. Whilst the above paragraphs describe housing governance within a democratic governance regime, transferring the conceptual debate to autocratic or hybrid regimes would pose difficulties. Thus, finding a unique definition of housing governance applicable in all spheres remains a challenge, and the specific context must be carefully considered. Important challenges remain, and as housing provision mechanisms evolve, further exploration of housing governance, especially on a municipal level, are likely to gain importance (Hoekstra, 2020).
[1] “Housing provision is a physical process of creating and transferring a dwelling to its occupiers, its subsequent use and physical reproduction and at the same time, a social process dominated by the economic interests involved” ibid.
Created on 16-02-2022
Read more ->Area: Policy and financing
Justice theory is as old as philosophical thought itself, but the contemporary debate often departs from the Rawlsian understanding of justice (Velasquez, Andre, Shanks, & Meyer, 1990). Rawls (1971) argued that societal harmony depends on the extent to which community members believe their political institutions treat them justly. His First Principle of ‘justice as fairness’ relates to equal provision of ‘basic liberties’ to the population. His Second Principle, later referred to as the ‘Difference Principle’, comprises unequal distribution of social and economic goods to the extent that it benefits “the least advantaged” (Rawls, 1971, p. 266).1[1] As this notion added an egalitarian perspective to Rawlsian justice theory, it turned out to be the most controversial element of his work (Estlund, 1996).
The idea of a ‘just transition’ was built on these foundations by McCauley and Heffron (2018), who developed an integrated framework overarching the ‘environmental justice’, ‘climate justice’ and ‘energy justice’ scholarships. The term was first used by trade unions warning for mass redundancies in carbon-intensive industries due to climate policies (Hennebert & Bourque, 2011), but has acquired numerous interpretations since. This is because the major transition of the 21st century, the shift towards a low-carbon society, will be accompanied by large disturbances in the existing social order. In this context, a just transition would ensure equity and justice for those whose livelihoods are most affected (Newell & Mulvaney, 2013). A just transition implies that the ‘least advantaged’ in society are seen, heard, and compensated, which corresponds with three key dimensions conceptualised by Schlosberg (2004): distributive, recognitional, and procedural justice.
Distributive justice corresponds with Rawls’ Difference Principle and comprehends the just allocation of burdens and benefits among stakeholders, ranging from money to risks to capabilities. Recognitional justice is both a condition of justice, as distributive injustice mainly emanates from lacking recognition of different starting positions, as well as a stand-alone component of justice, which includes culturally or symbolically rooted patterns of inequity in representation, interpretation, and communication (Young, 1990). Fraser (1997) stressed the distinction between three forms: cultural domination, nonrecognition (or ‘invisibility’), and disrespect (or ‘stereotyping’). Procedural justice emphasises the importance of engaging various stakeholders – especially the ‘least advantaged’ – in governance, as diversity of perspectives allows for equitable policymaking. Three elements are at the core of this procedural justice (Gillard, Snell, & Bevan, 2017): easily accessible processes, transparent decision-making with possibilities to contest and complete impartiality.
A critique of the just transition discourse is that it preserves an underlying capitalist structure of power imbalance and inequality. Bouzarovski (2022) points to the extensive top- down nature of retrofit programmes such as the Green New Deal, and notes that this may collide with bottom-up forms of housing repair and material intervention. A consensus on the just transition mechanism without debate on its implementation could perpetuate the status quo, and thus neglect ‘diverse knowledges’, ‘plural pathways’ and the ‘inherently political nature of transformations’ (Scoones et al., 2020). However, as Healy and Barry (2017) note, understanding how just transition principles work in practice could benefit the act of ‘equality- proofing’ and ‘democracy-proofing’ decarbonisation decisions.
Essentially, an ‘unjust transition’ in the context of affordable and sustainable housing would refer to low-income households in poorly insulated housing without the means or the autonomy to substantially improve energy efficiency. If fossil fuel prices – either by market forces or regulatory incentives – go up, it aggravates their already difficult financial situation and could even lead to severe health problems (Santamouris et al., 2014). At the same time, grants for renovations and home improvements are poorly targeted and often end up in the hands of higher income ‘free-riding’ households, having regressive distributional impacts across Europe (Schleich, 2019). But even when the strive towards a just transition is omnipresent, practice will come with dilemmas. Von Platten, Mangold, and Mjörnell (2020) argue for instance that while prioritising energy efficiency improvements among low-income households is a commendable policy objective, putting them on ‘the frontline’ of retrofit experiments may also burden them with start-up problems and economic risks.
These challenges only accentuate that shaping a just transition is not an easy task. Therefore, both researchers and policymakers need to enhance their understanding of the social consequences that the transition towards low-carbon housing encompasses. Walker and Day (2012) applied Schlosberg’s dimensions to this context. They conclude that distributive injustice relates to inequality in terms of income, housing and pricing, recognitional justice to unidentified energy needs and vulnerabilities, and procedural injustice to inadequate access to policymaking. Ensuring that the European Renovation Wave is made into a just transition towards affordable and sustainable housing therefore requires an in-depth study into distributive, recognitional and procedural justice. Only then can those intertwining dimensions be addressed in policies.
[1] To illustrate his thesis, he introduces the ‘veil of ignorance’: what if we may redefine the social scheme, but without knowing our own place? Rawls believes that most people, whether from self-interest or not, would envision a society with political rights for all and limited economic and social inequality.
Created on 03-06-2022
Read more -> The Governance of Energy Poverty Alleviation: Comparative Analyses of Targeted Policies and Strategies across Europe
Posted on 29-08-2022
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