Frederikshavn, Denmark
Frederikshavn: mobilising savings ‘sleeping’ on citizens’ bank accounts
Local banks in the city of Frederikshavn confirm that
citizens have never had such large savings on their accounts as they
have today. However, it is not easy to convince the households to make
use of the money for energy renovation of their dwellings.
Indeed, as a side effect of the global financial crisis, house owners
fear using or borrowing funds which is linked to uncertainty of their
own economic situation in the near future. Moreover, stagnation of
property values in the last 7-8 years does not create incentive for
investments in private properties.
However, energy refurbishment of the housing stock has multiple
benefits for the citizens and local economy and it is a key sector in
which the municipality of Frederikshavn needs to act to become one of
the first fossil free municipalities in Denmark – its long-term goal.
As to encourage energy renovation of dwellings, municipality has put
in place the action plan consisting of the following measures:
- Establish partnership agreements between the municipality and local banks
on setting up of soft loan schemes for energy renovation of private
housing and its joint promotion. The municipality aims at creating
competition between the banks and so encourage them to reduce the
current interest rates of the loans available for energy renovation. The
main argument the city is using is that the banks will not only develop
a new business area for themselves but will also contribute to creation
of new jobs for local craftsmen and manufacturers for the benefit of
the local economy.
By now, cooperation has been established with 8 national banks’ branch offices
located in the municipality: Nord Jyske Bank, Jyske Bank, Spar Nord
Bank, COOP Bank, Danske Bank, Sparekassen Vendsyssel Bank, Nykredit
Bank, Arbejdernes landsbank. The banks have demonstrated great interest
in launching the soft loan scheme in cooperation with the municipality.
The Coop Bank has already launched a 0% interest rate loan for energy
renovation while other seven banks have agreed to offer a low interest
rate loan for the renovation of private dwellings. All banks have signed
a cooperation agreement with the Municipality of Frederikshavn.
- Provide technical assistance to home owners
via a network of independent energy advisors (Better Home Consultants).
The individual consultations result in a ‘Home energy report’ which is
then taken into account by the partner banks.
- Train the financial advisors
– employees of the partner banks – on benefits of energy renovation,
improving their understanding of the ‘Home energy report’ developed by
energy advisors, improving their ability to advise the customers on
financial opportunities (soft loans) for energy renovation.
- Actively promote the soft energy loans
through dissemination and publication of good customer cases related to
energy refurbishment, a demonstration site of energy efficiency and
renewable energy technologies, local media and local specialised
communication materials.
- Enhance cooperation with other relevant stakeholders
who share the municipality’s objectives such as real estate agents,
craftsmen, construction companies and inform them about the soft loan
scheme.
- Create synergies with existing local initiatives and tools (such as the website www.byggestart.dk)
in order to get house owners engaged with the local craftsmen and
national programmes such as the Danish mortgage program "wise m2“.
Useful materials
| Frederikshavn at a glance |
Frederikshavn (Denmark) has 23,000 inhabitants
and takes its climate responsibility seriously. It has initiatiated a
climate-friendly development project, called “Energy City
Frederikshavn”. The project aims at creating a ‘100% renewable energy
city’ and facilitate citizens’ access to sustainable energy,
energy-efficient housing renovations and sustainable fuels for the local
transport. Frederikshavn’s strategy is in line with the Covenant of
Mayors’ energy and climate targets. |
| Who is implementing the soft loan financing scheme in Frederikshavn? |
Core team |
| How is the financing scheme implemented? |
Local Study & Action Plan / Market Study / Business Model |
More information about Frederikshavn
