Supporting energy equity

 

 The role of energy efficiency in tackling energy poverty and burden

By Bruna Backer, ICLEI World Secretariat. This blog post is also available on ICLEI’s CityTalk blog.

Amid rising living costs and the escalating impacts of climate change, cities are increasingly recognizing the critical role of energy efficiency in enhancing housing affordability. The Malmö Commitment pioneers are exploring how targeted energy efficiency measures can alleviate energy burdens and promote equitable access to energy, particularly for communities facing historical underservice. The successful energy efficiency strategies in Glasgow, Utrecht and other municipalities show how these measures can contribute significantly to making housing more affordable for everyone.

The unequal burden of energy poverty

Energy poverty occurs when households face high energy costs relative to their income, often in homes that are poorly insulated or inefficient. Structurally disadvantaged groups are disproportionately affected by energy poverty, including people of color, individuals with low incomes, youth, older adults, immigrants, and people with disabilities. These groups often face an unequal burden due to systemic racial and social discrimination, exclusion from financing, and disinvestment, which have historically concentrated marginalized communities in areas with poor housing, high poverty rates, negative health impacts, and fewer high-quality jobs. Because lower-income residents have fewer resources to invest in housing or rent, they tend to live in homes with outdated energy systems or inadequate insulation. This can lead to higher energy costs and poor living conditions, making it even more difficult for these households to afford basic services like heating and cooling.

Energy poverty extends beyond financial strain. It significantly impacts the physical and mental health of affected individuals. Inadequately heated or cooled homes can lead to chronic health conditions, increasing risk of cardiovascular diseases, winter mortality, reduced quality of life and poor mental health. The psychological stress from energy insecurity often results in lower productivity and social withdrawal, further diminishing the quality of life (Rana, 2023; Ballesteros-Arjona et al., 2022).

How can energy efficiency alleviate energy burdens

Increased energy efficiency is one of the most effective solutions for reducing energy burdens. By improving the energy performance of homes through retrofitting or implementing energy-saving technologies, households can dramatically reduce their energy costs while improving comfort and health. This is particularly important for households in socioeconomic vulnerability, who are often the most affected by high energy bills. Notably, Malmö Commitment pioneers Glasgow and Utrecht, ​​the Netherlands, have undertaken significant initiatives to address energy poverty and reduce energy burdens for households experiencing poverty, renters, older adults, and other groups facing high energy costs, offering valuable lessons for other cities to follow suit., offering valuable lessons for other cities.

As part of its strategy, Glasgow is improving energy efficiency in older housing stock, particularly in pre-1919 tenement buildings, which are often difficult and expensive to retrofit.                                                    Photo: ©George Kourounis / Unsplash.com

Making historic homes energy-efficient: Glasgow’s approach to reducing energy burden

Glasgow’s Local Heat and Energy Efficiency Strategy (LHEES) underscores the city’s commitment to ensuring that energy transition efforts prioritize equity and social justice. The strategy aims to make the benefits of decarbonization and energy efficiency improvements accessible to all residents, ensuring that vulnerable communities are not left behind. It looks in detail at areas with high levels of fuel poverty, aiming to provide affordable warmth and reduce energy costs for households experiencing poverty. This includes extensive domestic energy efficiency support programs and the deployment of heat networks and low-carbon heating systems to improve access to sustainable energy.

A strong emphasis is placed on community engagement, with solutions co-created alongside residents to ensure that local voices shape the planning and implementation of energy projects. This approach strengthens community resilience by delivering direct benefits to those most affected by energy poverty and climate impacts. The strategy also highlights the importance of a just transition, ensuring that the shift toward net-zero carbon is fair and inclusive. Addressing socio-economic disparities, it integrates measures to reduce fuel poverty while creating economic opportunities, particularly through job creation in the green energy sector.

To compliment the LHEES strategy, Glasgow has committed to upgrading insulation across the city. This initiative focuses on improving energy efficiency in older housing stock, particularly in pre-1919 tenement buildings, which are often difficult and expensive to retrofit. Glasgow has partnered with local housing associations and the Scottish Government to fund pilot projects, including retrofitting these tenements to Passivhaus standards—an energy-efficient design that drastically reduces energy use. These projects aim to provide comfortable, healthy living spaces for tenants while lowering their energy bills.

In addition to insulation upgrades, Glasgow is piloting infrared electric wallpaper as a clean heat solution for older buildings, testing it in 12 tenement properties with support from local universities, the West of Scotland Housing Association, and Glasgow City Council. The project evaluates its impact on energy costs, carbon emissions, and tenant comfort. Early results show positive tenant feedback, with Glasgow City Council seeing potential for scaling to the city’s 70,000 tenements.

By 2028, Utrecht aims to upgrade nearly 2,900 homes with inefficient energy labels E, F, and G, ensuring that more residents have access to energy-efficient and affordable housing.                                                Photo: ©Martin Woortman / Unsplash.com

Strengthening energy efficiency in Utrecht through resident consulting and strategic partnerships

Utrecht has been at the forefront of combating energy poverty through practical and immediate solutions like the “Energy Box” initiative. This program aims to reduce energy use for low income households by providing them with energy-saving advice, small energy-saving devices, and assistance with installation. According to evaluations, the inclusion of a coaching conversation with the delivery of each energy box significantly enhances the effectiveness of this intervention, allowing for immediate energy savings.

Additionally, in February 2023, Utrecht launched a white goods scheme for households with a U-pass, initially providing 983 households with energy-efficient refrigerators. The U-pass is a free discount card for residents with low incomes in Utrecht and neighboring municipalities. It provides financial support for sports, cultural activities, and everyday expenses, including discounts on essential goods and services.

The city also actively promotes energy efficiency through various campaigns tailored to different community needs. These include spring and autumn purchasing actions and free insulation campaigns targeted at vulnerable communities. Additionally, Utrecht organizes the Climate Fair, an innovative city-wide event aimed at educating residents about sustainable living. In 2023, specific editions of the fair focused on energy poverty, ensuring that those most affected could access relevant information and support.

Alongside these consulting efforts, Utrecht has built strong partnerships with housing associations to improve energy efficiency in the city’s housing sector. By 2028, the city aims to upgrade nearly 2,900 homes with inefficient energy labels E, F, and G, ensuring that more residents have access to energy-efficient and affordable housing.

To accelerate improvements, Utrecht supports housing corporations through a subsidy scheme to fast-track energy-efficient retrofits in homes most in need, such as those with poor insulation or outdated windows. In its inaugural year, this scheme was applied to 204 homes and has been extended through the end of 2025, demonstrating the city’s commitment to long-term sustainability in social housing.

Moving forward 

The examples of Glasgow and Utrecht illustrate how cities can play a direct role in reducing energy burden by making energy efficiency more accessible. Their approaches, whether through large-scale retrofits, targeted subsidies, or direct support for residents, offer practical lessons for other cities. Key factors for success are continued funding, collaboration with housing providers, and policies that center equity.

By learning from these examples and adapting strategies to their own contexts, cities can play a key role in making housing more affordable and comfortable for those most affected by high energy costs. Across the Malmö Commitment network, other members are also taking steps to promote equitable access to energy and essential services. For example, San Luis Potosí, Mexico, a recent addition to the network, has prioritized equitable access to public services and infrastructures, while Malmö Commitment supporter Niterói, Brazil, is developing housing policies to specifically support families in socio-economic vulnerability.

We invite other cities to join this growing movement for equity by supporting the Malmö Commitment.