Why & How


Although the Covenant of Mayors (CoM) has been signed by a huge number of Local Authorities in the Med area, the overall impact of the local authorities is very diverse and the promotion of the renewable energy sources is still a challenge.

In the rural areas, the municipalities have little capacity to elaborate, implement and monitor consistent and effective Sustainable Energy Action Plans (SEAPs) required by the CoM.

The largest energy consumers in rural areas are mainly the residential sector and the services, as well as, at a lesser extent, the private transportation.

Access to more efficient solutions is limited (natural gas, district heating, etc.) in this area and rural areas could make a worthwhile contribution to reducing greenhouse gases if renewable energy sources are duly and specifically addressed.

In the context of budgetary and technical constraints, the municipalities cannot afford huge investments to promote the renewable energy sources.

Furthermore, the municipalities have not a direct control on the mentioned sectors, hampering their capacity of directly promote the renewable energy surces in the residential sector and the services.

Therefore innovative approaches are required and these conclusions can be extended to islands municipalities as well.

Innovative schemes of incentives should be implemented to engage the householders and the private sector to promote the renewable energy sources in such specific sectors and thus overcome the constraints of the rural areas and the islands.


Local taxation systems are important “drivers” to involve private sectors in renewable sources promotion, approaching “key” sectors (residential buildings, services, etc.) in which RES have a huge potential but the local authorities have not budget nor direct control to take action.

Some SEAPs have included such kind of local fiscal policies but the municipalities have technical constraints to implement them.

Furthermore, many other municipalities have not considered yet the potential of the Local taxation systems to involve the private sector in renewable sources promotion.

In general, many efforts are being done to promote state level green fiscal policies as a tool for a green economy transition but the potential of the green taxation systems at local level has not been explored.

Potential RES promotion capacity of local fiscal policies is quite high, because they do not require major investments and they are able to engage private sector and households, scaling up easily and quickly the extent of local small sized RES facilities.

LOCAL4GREEN has designed and tested green local fiscal policies intended to promote RES.

Afterwards, the best practices of the pilots has been disseminated, to encourage more local authorities to apply new fiscal tools and make LOCAL POLICIES work for GREEN ENERGY.