The Udine Climate Fund: another step towards a sustainable energy city

From its central position just in the middle of Friuli historical region, Udine has always renewed, year by year, its commitment towards the environmental sustainability in general and the reduction of CO2 emissions in particular.

It has been a long successful story: from the Municipal Environmental Management (first EMAS registration and ISO 14001 certification in 2008) through the Municipal Energy Action Plan and the signature of the Covenant of Mayors (2009) to the adhesion to the new Covenant of Mayors, embracing the new challenge of the adaptation to climate change (2015). Last year, Udine set up a revolving fund – The Climate Fund – to finance energy efficiency actions on public buildings and equipment.

By the City Council Decision 289/2015 Udine political representatives agreed to encompass a new revolving fund in the architecture of the City General Budget. The initial fund size is EUR 32,000.

Its technical management is assigned to the Municipal Agency for Environmental Policies that plays the role of an Energy Service Company (ESCO). Other municipal units & departments are invited to propose energy efficiency measures to be financed. The proposals are evaluated subject to a cost-benefit analysis, mandatory criteria and the Fund availability. The Agency implements the measures and calculates the achieved financial savings which are redirected back to the Fund.

Three sources aim to recapitalize the Fund:

• financial savings resulting from lower energy bills and maintenance costs;
• incomes from the Energy Efficiency Credits placement on the energy market;
• additional money from the SEAP investments yearly foreseen within the City General Budget.

The City Administration decided to start the Fund with energy savings generated by four pilot actions implemented in 2015. Energy saving incomes from these measures are to feed the Fund even if they were not financed through the Fund itself.

In 2015, three new interventions were evaluated and financed through the Fund. They will be completed in 2016:

Financing retrofit actions through the Fund is not the only result of the City Council Decision. Last but not least, there are to be highlighted new know-how, expertise and skills developed both by Udine’s municipal staff and other Italian local authorities the Agency is cooperating with. Moreover, a set of new data and information on energy consumption of the municipal buildings, equipment and facilities allows for better use of public buildings and facilities.

Coming back to the house of sustainability concept, Udine’s Administration is aware that there will always be new bricks to add, but up till now the Climate Fund has offered an outstanding chance to review the municipal decision processes and implementation procedures that improved the way energy investments are planned, designed and carried out.

The city of Udine is implementing these actions in the framework of the EU-funded INFINITE Solutions project, developed and led by Energy Cities.