The Almada Less Carbon Climate Fund becomes revolving!
In 2009 the city of Almada set up the “Almada Less Carbon Climate Fund” which aims at reducing Almada’s carbon footprint by financing energy efficiency and renewable energy investments. After first seven years of successful operation, the Fund is now being redesigned and upgraded - it will become a revolving fund.
Almada’s Local Development Strategy has been framing the local activity for the last three decades. Each decade has been devoted to a particular topic related to the local needs and reality of the moment. Currently, Almada City Council is focused on ensuring high environmental quality of its activities, using natural resources efficiently and promoting energy efficiency to foster energy transition leading to a low carbon city. Its motto: “Almada+: Sustainability, Solidarity and Eco-Efficiency”.
The Local Development Strategy comprises a number of initiatives, including setting up of the “Almada Less Carbon Climate Fund” in 2009, which aims at reducing Almada’s carbon footprint by financing energy efficiency and renewable energy investments.
The Almada Less Carbon Climate Fund is a voluntary financial scheme supported by a simple economic valuation of the carbon emissions generated by the City Council’s regular activities. The Fund ensures that costs associated with carbon emissions are internalised and contribute to their compensation.
Almada has been successfully using the Fund to increase the number of energy efficiency investments that result in a clear net financial benefit for the municipality. Additional benefits include improved resource efficiency, lower energy bills and management costs as well as enhanced local green economy activities. The Fund also complements national and European funding sources.
After first seven years of successful operation, the Fund is now being redesigned and upgraded - it will become a revolving fund. This means that the cost savings resulting from implemented energy efficiency measures will directly return to the Fund, ensuring leverage of the fund and boosting further investments in a clean energy transition.
The revolving Fund operation will be based the following pillars:
- Internal procedure which includes energy bill analysis, energy audit, agreement on measure implementation, investment and annual monitoring. The procedure was defined by the core group - Climate, Environment and Mobility Department, Financial Department, Planning and Studies Division, Assets Division and AGENEAL - based on the revolving methodology.
- Internal performance contract which includes an energy savings index, the benefits sharing scheme dependent on the type of measure, the term of the financial flows and the definition of the no compliance procedure. The contract is signed between the fund managers (Climate, Environment and Mobility Department and the Financial Department) and the beneficiary department (any department of the municipality).
- “Shared benefits approach” in which the “client department” gets part of the savings as a bonus to its annual budget. This approach ensures the motivation of all city departments to participate in the Fund activities. Energy cost savings are monitored and centralized by the financial department which pays to the client department.
|Almada at a glance
||Located on the south bank of the Tagus River across from Lisbon, Almada is one of 18 municipalities within the Lisbon Metropolitan Region, with 174,030 residents living in an area of 72 km2. Almada City Council has been developing policies and strategies towards a more sustainable city launching several projects aiming at promoting public transport and soft modes, like a light rail system and cycling, energy efficiency in municipal buildings and facilities and public lighting. |
Along these lines, the Municipality of Almada was among the first signatories of the Covenant of Mayors. The Almada Local Strategy for Climate Change contains a number of actions targeted at reducing the energy consumption of buildings and transport sector. To support these actions the Almada’s Carbon Fund “Almada Less Carbon”, was created in 2009. It supports local energy efficiency investments, serving as a benchmarking instrument for the actions of other key players in the mitigation of GHG emissions, whether from the public or private sector.
The municipality is also a member of European and international associations and initiatives such as Energy Cities, ICLEI, the Mexico City Pact, Covenant of Mayors and World Mayors Council on Climate Change.
|Who is implementing the intracting financing scheme in Almada?
|How is the financing scheme implemented?
||Local Study & Action Plan|
|Who backs the scheme at the political level?
||City Council Decision on the establishment of the financing scheme|
|Pilot Sustainable Energy Measures to be implemented via the scheme
||List of measures (expected in Feb. 2017) |
More information about Almada