March 29, 2024
In Korea, the government carried out green renovation through green remodeling of public sector buildings and interest support projects for private buildings, one of the core projects of the Korean version of the New Deal project. Still, the government recently announced the suspension of interest support projects in the private sector, and there is currently no follow-up policy for green remodeling. On the other hand, overseas green remodeling projects, such as in Europe and the United States, are growing with active government support and regulations. Overseas, green remodeling, which enables energy efficiency and performance improvement through converting old buildings into green buildings, is also called Retrofit.
European Union(EU) countries are the most active and systematic implementers of green remodeling. The EU announced a 'Renovation Wave' policy in the building sector, aiming to reduce greenhouse gas reduction targets by 55% compared to 1990. This policy focuses on green remodeling of public buildings, decarbonizing heating and cooling, and energy welfare for low-income families. Based on this, each EU country implements green remodeling policies based on a mid-to-long-term roadmap according to its region and economy.
Germany has set a goal of reducing greenhouse gas emissions in the building sector by 66-67% compared to 1990 by 2030 and reducing primary energy demand in the building sector by 80%. Accordingly, the German government supports benefits such as low-interest loans, subsidies, and tax cuts for the green remodeling of old buildings. These green remodeling government projects increase the proportion of green remodeled buildings by 2% yearly. In addition, the energy performance of the building is evaluated by dividing it into 40, 55, 70, 85, 100, and 115 grades, which are used for green remodeling subsidies and low-interest loans based on the evaluation grade. These financial support projects, together with the Bank of Germany, provide debt relief or subsidies depending on the energy level and low-interest loans of about 1% of the cost of green remodeling construction. It supports not only the entire level of building repair but also some of it.
France aims to implement green remodeling of 500,000 old residential facilities annually by 2050 to convert the building sector's energy. To this end, a policy that makes green remodeling mandatory for buildings with low energy efficiency below a certain level is implemented. The government provides subsidies and tax benefits to old buildings subject to green remodeling. In addition, interest-free loan projects are also being carried out to support green remodeling.
The U.S. green remodeling policies vary from federal and state to state. Twenty states, including Washington, D.C., and California, in the United States lend out facility installation costs for green remodeling through a project to finance building energy efficiency improvements and repay the debt through property taxes on the property. In addition, it supports the improvement of energy efficiency of vulnerable housing through the WAP for low-income families. In addition, the Biden administration recently announced that it will invest $2 billion in more than 150 construction projects using low-carbon building materials.
Green remodeling creates not only the environmental and social effects of reducing greenhouse gas emissions and enhancing public health but also the economic effects of job creation and economic growth. Even before carbon neutrality received worldwide attention in the 2000s, the United States recognized its financial effects. It carried out the green remodeling project to reduce heating charges for low-income families after the oil crisis 1973. Even after the 2009 financial crisis, the United States raised a green remodeling card - a home renovation to create jobs, improve the income of low-income households, and reduce energy consumption. Compared to overseas countries, domestic green remodeling performance still needs to be improved. Even for economic improvement, support for green remodeling with effective policies must be made with a thorough roadmap reflecting the domestic state.
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