Perspectives and Opportunities on Sustainable Housing in Mexico

September 2009

PERSPECTIVES ANDOPPORTUNITIES ON SUSTAINABLE

HOUSING IN MEXICO

To establish Mexico’s Housing Policy

To propose housing sector regulations and policies and promote the generation of uniform systems and

regulations that harmonize the criteria for quality housing

To promote sustainable housing development.

CONAVI – Mexico’s National Housing Agency

Fuente: CONAVI

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50,000

100,000

150,000

200,000

250,000

300,000

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200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Investment

Financings

Since the 90´s, the housing sector has grown at an annual rate of 17% creating a “boom” in housing…

Housing Mortgages

- Nearly 1.6 million new houses are expected to be built from 2009-2012 period. This represents a real energy and environmental challenge.

Housing Public Policy

• Urban Redensification

• DUIS.- Integrated Sustainable Urban Developments

•Technical Criteria for Sustainable Housing

TERRITORIAL PLANNING

URBAN DEVELOPMENT

SUSTAINABLE HOUSING

Promote sustainability policy for housing and urban development

Strategic Programs

Technical Criteria for Sustainable Housing Developments

Clean Development Mechanism (CDM) of the Kyoto Protocol. Methodology for sustainable housing

To implement a Residential Building Code, that will include regulations for a safe, reliable and habitable construction in an urban context

Federal subsidies for new houses and Green Mortgage

• International Code CouncilIn the year 2004, CONAVI and the ICC worked together to develop the Residential Building Code. The Code was based on the code system model of the United States as well as it´s implementation.

• Residential Building CodeThe code regulates for a safe, reliable and habitable

construction in an urban context, and technical criteria for sustainability.

These includes:

• Site selection and urban design• Development of infrastructure and urban services• Housing design, energy efficiency solutions, water

management and solid waste• Construction systems and specifications• Building materials• Home maintenance

Source: Secretariat of Energy

Residential Building Code

CONAVI promotes and coordinates the first CDM program in Mexico on Sustainable Housing.

This program allows projects that individually would not be feasible for CDM, to have access to Carbon Stock Certificates.

The methodology was approved by the Executive Board of the

Clean Development Mechanism of UNFCC on July

17th

Clean Development Mechanism Program (CDM)

Methodology (CDM) for Sustainable Housing

This methodology is applied to large housing developments with common characteristics, such as built area, building materials, cost, and socio-economic level of occupants.

It incorporates different combinations of technological elements: • efficient lighting • thermal envelope • solar water heating • photovoltaic electricity • efficient air conditioning • systems for water saving

It requires the development of a database to provide information about gas emissions from houses.

It requires establishing a monitoring system between the traditional housing as the baseline and sustainable housing.

Sustainable housing

8%

1%2%

3%

54%

32%

Commercial Public Agricultural

Transport Industrial Residential

• Energy Efficiency- The residential sector represents 32% of the energy consumption - Energy in the residential sector is mainly used for lighting, gas, space heating and

cooling, use of appliances.-Consumed electricity per home in a temperate climate is approximately

of 2.4 KWh per year Residential

Industrial

Energy includes: Natural Gas, LP Gas and Electricity. Source: Secretariat of Energy

- CO2 Reduction

- If we consider 100,000 new sustainable homes per year and reductions in emissions of 1.5 Ton of CO2 / per house / per year, we could generate 150,000 CER´s ( certified emission reductions) per year.

- Each CER could be sold in approximately 10 USD.150,000 CER’s x 10 USD = 1,150,000 USD / per year

- The methodology was developed to estimate reductions in emissions as a result of efficient use of energy in homes.

Sustainable housing

UNFCC: United Nations Framework Convention on Climate Change

2009 • The Executive Board of the Clean Development

Mechanism of UNFCC approved the methodology to estimate emissions reductions as a result of efficient use of energy in homes in July 17th.

2010• Elaboration of Program of Activities Design

Document and registration of new projects

2011-2012 • Consolidation of MDL Program, calculation of

emission reductions and its• certification CER’s

Next steps…

Housing Subsidies

Federal Government contributes 4.5 million dollars in housing subsidies for low-income families.

Subsidies for:

Purchasing new homes

Existing homes Lots with services Home Improvement Promotion of social house production Construction of new home by the owner

Homes have to include

the basic sustainable

technical criteria

Sustainable housing

• Green Mortgage and Federal SubsidiesGreen mortgage given by Infonavit is based on additional credit capacity to payfor the eco-technologies. The buyer is able to afford this larger credit capacity bysaving in the consumption of electricity, gas and water result of the new technologies.

The federal government through the program “Esta es tu casa”, contributes tothe building of sustainable housing by giving subsidies to low income housingbuyers that are not able to cover financing granted. The house owner will be saving on:- Energy consumption- Utility payments (gas, electricity and water)- CO2 emissions

Technology usedConsumption without

saving measures (kWh)Consumption with saving

measures (kWh)Savings in consumption

(kWh)Energy savings

(%)

Lighting 1,231 331 901 73%Fridge 633 360 273 43%Appliances 559 559 0 0%Annual Average 2,423 1,250 1,174 48%

Final remarks

• Through federal programs, home builders are encouraged to build low income housing that includes sustainable characteristics.

• The manufacturer sector of green technologies has grown to offer home builders, the products they need at a much more competitive price.

• The challenge is that every new house that is built in Mexico, it's built with sustainable criteria that will be traduced in energy savings and CO2 reductions to the atmosphere among others.

National Housing Comission

www.conavi.gob.mx

Evangelina Hirata Nagasako

[email protected]