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The LIS-platform, a BIM-based software platform, is being developed to monitor various aspects of buildings. This platform provides a comprehensive overview of structu...

R.E.A.L.L. Athens

Regulatory learning in 'experimentation spaces' adapts regulations, ensuring competitive development. Arsinoe's "Regulatory Sandbox" in Athens co-designs regulations in the Living Lab, supporting climate adaptation and innovative regulatory practices.

Controlled environment in the Living Lab to live testregulations based on new products, technologies, orbusiness models together with financial regulators
An institutional framework for experimentation ensuringbetter management and more widespreadcommunication of the knowledge gathered in thedifferent trials of the innovations
Providing the most appropriate regulatory instrument toaddress cross-sectoral considerations

- One of the objectives of a living lab can be to create a favorable environment for different technological and non-technological solutions to have a legislative resolution, according to the problems mentioned by the stakeholders, tools are needed to facilitate the decision-making capacity, using a sandbox we can work in this direction to test new legislation in the field of innovation
- Work towards integrated policy frameworks including vulnerable areas.
- Regulators often lack the opportunity to base regulations on the results of innovations. A regulatory sandbox overcomes this problem by providing regulators the ability to base regulation on the results of live experiments.

TRL1. Basic research: basic principles are observed and reported

See more information about this level and the TRL and SRL levels.

The system’s main components have been individually tested, and an initial integration has been completed.

Credits
CREDITS
Partner and Socio-Environmental Expert - Beatriz Medina
Collaborators
COLLABORATORS
No collaborator

How does it work?

The vulnerable population in Athens also concerns the energy poverty of certain communities that are increasing vulnerable to heatimpacts and who are economically weak and thus cannot afford cooling. Thus the regulatory sandbox with live experimentationscan accelerate the implementation of the technological and non-technological options proposed in Arsinoe, creating competenciesamong stakeholders in a consensus and bottom-up process, providing the necessary evidence for policy makers to make moreappropriate and effective decisions on the required regulatory changes, ensuring that nobody is left behind and generating aneffective governance model.

WE&B has over 10 years’ experience in the practical application of social innovation. Participating in research and innovation projects we have identified the gap between technical innovation and regulatory support. We first saw the use of regulatory sandboxes as an innovation tool to provide better informed decisions on how to appropriately regulate new innovative solutions and services that reach the marketplace quicker in the energy sector. Through our analysis and participation in cutting-edge innovative Horizon Europe R&D projects, we have identified a gap for the use of regulatory sandboxes as a viable tool to overcome the regulatory challenges in the climate adaptation space. WE&B would certainly provide the methodological basis and guidance for the activity to take place, acting as enablers of the activity, but we would need the partners associated to the SC to be strongly involved in the process.

The process of setting-up and running a regulatory sandbox requires local buy-in and support. Firstly, we would need to define who owns the sandbox. The sandbox team should have a high profile in the organizations they represent and be visible to market stakeholders. The team should be identified and given a clear mandate. Although the number of team members can range from 1 to 30, in most cases, three to five members are adequate. There should be sufficient economic resources. The operating budget must allow for a dedicated sandbox team that can focus on its work and not be distracted by other responsibilities. There should be a well-defined internal organisation and working process, with clear mandates for each sandbox member. There should be a clear coordinationwith external stakeholders, for instance, there should be a process in place to cover at least the instances where sandbox participants fall under the mandate of different regulators. Finally, the conditions for the effectiveness of the regulatory sandbox innovation is to frequently generate interest from market participants who contact the regulator to learn more about the process or inquire about their eligibility for sandbox testing. Most of these inquiries do not require sandbox testing, but the regulator should build organizational and reporting structures to take advantage of these interactions to learn more about the marketplace, emerging risks, and perceptions of the regulatory process.It is necessary to set up a transparent and well-defined stakeholder recruitment procedure. The sandbox needs to have an organisation and a process to set up its managers, who have the capacity and solvency to run it. This organization in the CS must align with the regulator’s statutory mandate and background legal and regulatory requirements. Therefore, threshold legal feasibility analysis is necessary to confirm permissible sandbox objectives (mandate), eligible participants, testing constraints, and regulatory relief available.

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