Urban green growth for club of madrid josé antonio april 30, 2012
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Urban green growth for club of madrid josé antonio april 30, 2012
- 1. Best practices in green growth in Cities Experiences from the OECD Programme on Green Cities José Antonio Ardavín Head OECD Mexico Centre for Latin America Club de Madrid Roundtable: The G20 in the Post Crisis World: The Need for Green Growth
- 2. Introduction The OECD Green Cities programme OECD Green Growth Strategy seeks to assess how urban green growth has a specific approach to green and sustainability policies can growth in cities contribute to improve the economic • What is the Green Cities performance and environmental quality programme? of metropolitan areas from the Present key findingsand thus enhance the contribution of urban areas to OECD Conceptual Framework • Goals for this presentation national growth, Greenof life and on Cities and quality Growth: competitiveness. •What is urban green growth? •Why green growth in cities? The programme includes: •Conceptual framework on cities and be •What lessons and best practices can green growth worldwide experience? derived from •Case studies of select cities or national urban policies •Environmental indicators at the metropolitan level •Comparative report on cities and green growth
- 3. The OECD Green Growth Strategy www.oecd.org/greengrowth Not just about recovery… …a core economic strategy that leads to a different way of thinking about development. Defining green growth Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and ecosystem services on which our well-being relies. To do this it must catalyse investment, competition and innovation which will underpin sustained growth and give rise to new economic opportunities. OECD (2011), Towards Green Growth
- 4. What is urban green growth? Extending the scope of the OECD definition of green growth • A need for new sources of urban growth • The presence of policy complementarities at the local level • The importance of social equity to urban development Defining urban green growth Fostering economic growth and development through urban activities that reduce negative environmental externalities, the impact on natural resources and the pressure on ecosystem services. The greening of the traditional urban economy and expanding the green urban sector can generate growth (through increased supply and demand), job creation and increased urban attractiveness. These effects are in part the result of stronger interactions at the urban level among economic efficiency, equity and environmental objectives. OECD (2011), Cities and Green Growth: A Conceptual Framework
- 5. The logic of city-scale action Correlation between per capita CO2 emissions in transport and density in predominantly urban areas • Economic role of cities 6000 United States (urbanisation and income) 5000 Canada 4000 • Negative externalities Australia New Zealand Ireland (congestion, pollution, sprawl) 3000 Norway Spain Denmark Belgium Finland Austria SwedenSwitzerland United Kingdom 2000 Italy France Japan Korea • Contribution to climate Germany Portugal Czech Republic O o n u p C 2 a k g / Mexico t ) ( Hungary i l Slovak Republic Poland 1000 change Turkey m O o n p C 6 0 2 e a c s r t 0 i 0 1000 2000 3000 4000 5000 • Vulnerability to climate Urban density in 2005 (population/ km2) change impacts Change in attractiveness and pollution emissions across OECD metro-regions (2001-2030) 4.00% Osaka Fukuoka Opportunities for synergies 3.00% Stockholm 2.00% Rome and complementarities 3 0 2 ) Tokyo Seoul Paris 1.00% Dallas Zurich Atlanta Mexico city Istanbul - (attractiveness) New York Chicago Detroit Baltimore Los Angeles Busan Helsinki 0.00% Hanburg -140 -120 -100 -80 -60 -40 -20 0 20 40 60 80 Budapest Melbourne -1.00% Ankara Aichi Lyon NaplesAuckland -2.00% Lille Guadalajara London -3.00% m Monterrey w Madrid o h n u P 1 0 2 e a g s r t ( i l -4.00% Absolute change in attractiveness
- 6. A Policy Framework for an Urban Green Growth Agenda
- 7. Greening Opportunities and Challenges Ex. of potential economic impact Greening Opportunities energy; Challenges Energy: Local production/ purchase of renewable and Job creation, reduced district heating/cooling; retraining of workers for renewable energy costs, more energy sector reliable energy Mobility: Public transport investment; fees applied to Reduce congestion, personal vehicle use; support for low-carbon vehicle R&D; increase accessibility development oriented around public transport nodes and property values Natural resources: Pricing policies to manage water demand; Reduce cost of public investment in greywater systems; open-space preservation service delivery, and vegetation planting. increase attractiveness Buildings: Public building retrofitting, support for investment Job creation, reduce in renewable or energy efficient technologies, labelling, public energy costs retraining of workers for retrofitting Pollution prevention, treatment and abatement: investment Reduce cost of public in waste-to-energy plants, recycling and composting service delivery, job programmes, support for pollution abatement firms. creation, increase attractiveness Green services: environmental planning and permitting, Job creation, increase
- 8. Lowering CO2 emissions: urban form matters CO 2 emissions per capita in transport relative to the urbanised population density in a selection of major world cities Per capita carbon emissions tend to be reduced as urban areas become denser and rely to a greater extent on public transit, walking and cycling.
- 9. This is a particular challenge for developing countries Energy consumption OECD countries Non-OECD 81% of the growth of energy use will come from developing countries. The form they give to their cities now is crucial for determining the energy use.
- 10. Encouraging infill and brownfield redevelopment International best practices • Preferential property tax rate for multiple dwellings (Copenhagen; Sweden) • Two-rate property tax system (Sydney, Hong Kong, Pittsburg, Denmark, Finland) • Special Area Tax • Development fees Ending the incentives to urban sprawl. Property taxes and fees related to urban development can be reformed to incentivise compact development. But the rate structure must truly differentiate between desirable (compact, transit-oriented development) and undesirable (single-family auto-dependent sprawl) outcomes to be effective.
- 11. Encouraging infill and brownfield redevelopment International best practices • Brownfield redevelopment • Kalundborg eco-industrial park (Denmark) • Styrian recycling network (Austria) • Rotterdam Harbor & Industrial complex (Netherlands) • Eco-town programme (Japan) • Guigang industrial park (China) Brownfield redevelopment can increase the tax base and the asset value of the site and surrounding area. Eco-industrial parks show how industrial land-use planning can create synergies between employment and environmental outcomes.
- 12. Encouraging infill and brownfield redevelopment International best practices Urban growth boundaries • Portland, Oregon (US) • Zurich, Switzerland • Japan Size matters. If the containment area of a UGB is too large, there is no effect on limiting urban growth. If the area is too small to sustain development pressure, a UGB can lead to a rise in land prices, a reduction of affordable housing within the boundaries, and leapfrog development.
- 13. Improving the environmental impact of urban form International best practices • Hammarby Sjöstad (Stockholm) Linkages to transit are key. • Rosslyn-Ballston corridor Siting development around public transit and co-locating housing, industrial, office (Arlington, Virginia) and retail activities (mixed-use • Tokyo Midtown development development) can promote public transit, walking and biking by making different • HafenCity (Hamburg, Germany) urban services and functions more accessible.
- 14. Promoting public transportation and green mobility International best practices • Bus Rapid Transit BRP Cultural Change (Curitiba, Bogotá Transmilenio, Marked better quality services and time Mexico City Metro Bus) savings gradually promote a cultural change in favour of public transportation • Public Bicicle Services (Paris, and cleaner mobility. Linkages to other Lyon, Barcelona, Mexico City) modal transportation are an important feature
- 15. Improving the environmental impact of urban form International best practices • Royal Seaport (Stockholm) • BedZED (Beddington, UK) • New Songdo City (Korea) • Ile Saint Denis eco- neighbourhood (Paris-IDF) • Bo01 & Augustenborg (Malmö) • Vesterbro (Copenhagen) • Viiki (Helsinki) Eco-neighbourhoods can be effective testing grounds for smart technologies. But can projects be effectively scaled up? Are they socially exclusive?
- 16. Financing public transit International best practices • Value capture tax (Hong Kong, Miami, Milan, Bogota) • Congestion charges (Singapore, London, Stockholm, Milan) • High-occupancy toll lanes • Parking charges and fees Transportation-related fees and taxes can also be used to fund public transit and create disincentives for auto use.
- 17. Reducing building energy consumption and waste International best practices • Berlin ESCOs (Germany) • Toronto Mayor’s Tower Renewal Programme (Canada) • “Fifty-fifty” programme (Japan) 0 • Berkeley FIRST (US) Low interest loans and ESCOs lower the barriers for property owners to invest in energy efficiency and renewable energy technologies
- 18. Increasing energy efficiency of the built environment International best practices • Copenhagen district heating system (Denmark) • Toronto district cooling system (Canada) • Regulation for scaling up District heating and cooling systems increase the efficiency of energy delivery and facilitate the delivery of renewable energy sources
- 19. Increasing distributed renewable energy in cities International best practices • Barcelona Solar Thermal Ordinance (Spain) • Merton Rule (UK) Green building standards for new buildings increase the provision of renewable energy for commercial and residential buildings
- 20. Reducing industry energy intensity and pollution International best practices • Industrial Energy Efficiency Accelerator (UK) • Special fund for energy efficiency in SMEs (Germany) • Save Energy Now (US) Technical and financial support for industrial retrofits help reducing industrial energy consumption and air and water pollution
- 21. Reducing industry energy intensity, pollution and capture-to-energy initiatives International best practices • Eco-industrial zones (Denmark, Kalundborg (Denmark) Austria, Netherlands, New Hampshire, Guigan China) • Capture landfill methane gas to generate energy. (Sao Paolo and Monterrey) Gas collection at Bandeirantes Landfill , Sao Paulo Eco-industrial zones incorporating circular energy practices consume less energy and reduce air and water pollution and waste production
- 22. Conserving and treating water International best practices • Water pricing schemes (US and others) • Toronto WaterSaver Programme (Canada) • Melbourne purple pipes (Australia) Water pricing schemes and conservation programmes encourage water conservation and can provide funding for water treatment
- 23. Waste diversion, recycling, and waste-to-energy International best practices • San Francisco Zero Waste (US) • Chicago C&D recycling and reuse (US) • Horsholm waste strategy (Denmark) • Amsterdam waste-to-energy (Netherlands) Policies that increase recycling, food composting, material re-use, and state of the art waste-to-energy minimize landfilled waste
- 24. Spurring innovation through research cooperation International best practices • Milwaukee Water Council (US) • Øresund Environment Academy (Denmark/Sweden) • Solar Valley Mitteldeutschland (Germany) Facilitating connections between university research and private sector R&D for green technologies spurs green tech innovation
- 25. Facilitating the development of green tech clusters International best practices • Paris Enterprise Region (France) • Lahti Cleantech Cluster (Finland) • i6 Green Challenge Programme (US) Tax incentives and funding for green tech industrial zones and incubators drive entrepreneurship, innovation and commercialisation
- 26. Increasing demand for green tech firms’ products International best practices • Helsinki public procurement centre (Finland) • Hamburg hydrogen fuel buses (Germany, Spain, UK) • Calgary’s renewable energy purchasing (Canada) • Public-private-partnerships City governments can green regional growth by the purchase of or the investment in construction, transportation, ICT, renewable energy, etc.
- 27. Supplying skilled workforce for the green economy International best practices • Solar Valley Mitteldeutschland (Germany) • Massachusetts Clean Energy Center (US) Workforce development is an effective means to adapt skills to the emerging needs of the green economy
- 28. Planning and growing with green technology International best practices • São Paulo Action Plan for Mitigation and Adaptation to Climate Change (Brazil) • Portland Metro Climate Prosperity Greenprint (US) • National price signals for local green technology development The clean technology sector is becoming an important element of climate change plans and for growth through the green sector
- 29. In sum, Cities are crucial actors for achieving green growth since they have at hand many policy instruments to engage in a virtuous cycle of sustainability. • Rulemaking and regulatory oversight – Buildings, water use, recycling, zoning, urban form • Public spending – Infrastructure, transportation, • Financial tools – fees, property tax, feed-in tariffs, etc. • Information and advocacy – Promoting research, innovation, campaigns
Notas del editor
- It is a great pleasure to participate in this Roundtable “The G20 in the Post Crisis World: the Need for Green Growth” of the Club de Madrid We find very pertinent this particular panel on Geen Cities Trying to give a short answer to the question posted for the panel: How could we ensure that cities become green growth centers? Where should we place most emphasis: energy eficciency, transportation, connecting cities through green infrastructure systems? Let me give a quick answer, all of the above, green growth should be an integral strategy, and I will provide a good number of examples of good practices cities are already doing in each of these fronts.
- What is the OECD Green Cities Programme? The OECD Green Cities programme seeks to assess how urban green growth and sustainability policies can contribute to improve the economic performance and environmental quality of metropolitan areas and thus enhance the contribution of urban areas to national growth, quality of life and competitiveness. The programme includes: A conceptual framework on cities and green growth (defining urban green growth and what we currently know about green growth in cities) Case studies of select cities or national urban policies (Paris, Chicago; Stockholm, Kitakyushu) Environmental indicators at the metropolitan level (land cover and land cover change; air pollution and urban emissions; etc.) A comparative report on cities and green growth (expected 2013) CLICK TO NEXT SLIDE: What are the goals for this presentation? Introduce the OECD Green Growth Strategy and its approach to green growth in cities Present key findings from the OECD Conceptual Framework on Cities and Green Growth : What is urban green growth? Why green growth in cities? What growth scenarios can result from greening policies? What challenges and opportunities exist to advancing an urban green growth agenda?
- OECD Green Growth Strategy Green growth aims to steer economic growth in a different direction, addressing externalities and other factors poorly served by current measures of economic activity. It also recognises that environmental policies that do not support economic growth and wealth creation are not sustainable in the long term. Why green growth? Not just about recovery: a core economic strategy that leads to a different way of thinking about development Green and Growth are not mutually exclusive but go hand in hand Towards Green Growth , Towards Green Growth - Monitoring Progress: OECD Indicators and Tools for Delivering on Green Growth launched on 25 May at the OECD Ministerial Council Meeting. These reports respond to the request of Ministers from 34 countries who signed a Green Growth Declaration in 2009, committing to strengthen their efforts to pursue green growth strategies as part of their responses to the crisis.
- How does this apply to cities? The scope of the OECD definition of green growth be extended to urban areas in three ways, by taking into account: A need for new sources of urban growth. Urban areas have the opportunity to conduct environmental policies that can foster these new sources of economic growth. 2. Policy complementarities present at the local level There are more opportunities on the local level, as activities related to environmental protection and economic development are more integrated at the local level than at the national level. 3. The importance of social equity to urban development The implementation of green growth at the local level addresses social issues in a more direct way than at the national level. As such, the OECD defines URBAN green growth as follows : Fostering economic growth and development through urban activities that reduce negative environmental externalities, the impact on natural resources and the pressure on ecosystem services. The greening of the traditional urban economy and expanding the green urban sector can generate growth (through increased supply and demand), job creation and increased urban attractiveness. These effects are in part the result of stronger interactions at the urban level among economic efficiency, equity and environmental objectives.
- Why focus on cities? Economic role of cities (urbanisation and income) Home to negative externalities (congestion, air pollution, sprawl etc.) Contribution to climate change: cities are major consumers of energy (according to IEA representing 60-80% of world’s energy output) and major GHG emitters Vulnerability to environmental and climate change impacts, particularly coastal cities, where human and built infrastructure are at risk Opportunities for synergies and policy complementarities TOP FIGURE: Results of a modelling exercise demonstrate that higher densities in cities are associated with lower per capita carbon emissions from transport BOTTOM FIGURE: relationship between local pollution and attractiveness. Projection model shows that by 2030 the level of pollution in some cities will hamper their attractiveness Coordinated urban policies (e.g. integrating transportation and land use plans) can have important environmental impacts
- 3 fundamental factors of regional economic growth (human capital, infrastructure, innovation). Policies aimed at addressing these goals will serve as the first lens to view green growth policies. Middle of the diagram a set of sectors/fields which represent greening opportunities (energy, mobility, natural resources management including water, buildings, and pollution prevention treatment and abatement including waste management). They are represented in a cycle because of the strong interconnections between those sectors. To promote urban green growth, and thus implement growth policies to green sectors or fields of sectors, we propose a taxonomy of 4 policy levers/instruments (i) Rulemaking authority/regulatory oversight; ii) Public Spending; iii) Financial Tools; iv) Information and Advocacy). Because there is an underlying issue of policy competence or jurisdiction , we have displayed this diagram like a mirror to show that central governments and sub-national governments are interacting and engage in the same process. Finally, there are two important considerations: --you can read in the up left “ Policies goals and Values ”: this influence the choice of policy makers (eg the shared vision matters, the local culture, etc..) --and below the frame, you can read: baseline conditions , etc.. I will come back to this but this is related to a number of initial conditions that differ from one city to another (eg climatic conditions, industrial mix, etc..) All these elements interact in a system .
- We have identified six sectors that provide opportunities and challenges for green growth. They are: energy, mobility, natural resources, buildings, pollution prevention treatment and abatement, and green services. Within each, there are a range of opportunities for cities to stimulate green growth through job creation, improved attractiveness, increased demand for green products and services and reduced costs of public services
- Before we hear from your thoughts on those questions, I would like to share with you a few key OECD findings about urban land-use and transport. OECD research has found that the urban form is a critical factor that influences energy demand and GHG emissions. As urban areas become denser and rely more on public transport, walking and cycling per capita carbon emissions tend to be reduced. Chart above illustrates the relationship btw urban density (population/km2) and CO2 emissions from transport: We see that highest emissions per capita occur in low density cities (Denver, Los Angeles, Chicago, Toronto), rather than high-density cities (Shanghai, Barcelona, Beijing…). Urban form is not a necessary condition to attain lower per capita emissions – energy prices, the productive structure of urban areas or reliance on public transportation networks are critical factors as well…. But the probability of high emissions per capita is indeed much higher in low densely populated areas.
- In many OECD cities, property taxes often favour the development of single family houses, rather than denser, multi-family apartment buildings and other forms of compact-city development. - Nevertheless, some cities have implemented a preferential tax rate for multiple dwellings . -- In Greater Copenhagen, for example, housing co-operatives within multi-apartment buildings are not subject to the municipal property tax, in contrast to single family homes. -- In Sweden, the property tax rate for owner-occupied housing in twice as high as for rented properties. A two-rate property tax system that places a proportionally higher tax on land than on built structures incentivises compact, infill development by making it more costly to hold on to vacant or under-utilised centrally located sites. This two-rate system has been implemented in Sydney, Hong Kong, Pittsburg and cities in Denmark and Finland. A Special Area Tax can be applied to surburban properties, or a set of cascading taxes that gradually increase as one moves from the city centre toward the periphery could be implemented. - Development fees can be used to cover the costs of urban sprawl, such as costs incurred from extension of public infrastructure, but the fees need to take into account real costs of providing services to new developments and charge single-family homes higher than multi-family homes.
- Brownfield redevelopment can facilitate the re-use of industrial lots in cities , leading to higher-density urban development in city centres, rather than urban sprawl. Brownfield development can face a number of challenges : Land prices can be expensive (esp. compared to development in agricultural areas or “greenfields”) The demolition and clean-up of the existing facilities can be costly Land use may be limited by existing zoning regulations/ However, there are numerous potential benefits : Urban revitalisation Increased asset value of the site and surrounding area Increased tax base Increased employment Environmental protection Effective use of existing infrastructure Prevention of urban sprawl Public authorities can provide funding and incentives for brownfield redevelopment. The central government, for instance, can provide grants and technical assistance to municipalities to assist during the clean-up of industrial sites. Brownfield devt can also be used to leverage funds from the private and public sector: - in the US, brownfield devt has leveraged more than USD 6.6 billion in clean-up and development funding and created approx. 25,000 new jobs. ECO-INDUSTRIAL PARKS show how innovative industrial land-use planning can create synergies between employment and environmental outcomes. - The idea is to shift from the current wasteful linear model of production to a circular model, where wastes are converted into new inputs and energy cascaded through the local industrial network. In Kalundbord, Denmark, the diverse firms in the eco-park utilise each other’s surplus heat and waste products, with annual estimated savings of USD 12-15 million. Japan’s eco-town programme was inaugurated in 1997 to address the shortage of waste landfill sites and revitalise stagnating local industries whilst generating zero carbon emissions. The strategy was to transform traditional industrial clusters into circular, resource-recycling systems, which not only leads to waste reduction, but also stimulates the local economy (e.g. recycling businesses). By 2006, one of these eco-towns, Kitakyushu , registered nearly 65% of its total workforce in the recycling sector. The Guigang industrial park , one of the first eco-industrial parks to be developed in China, adopted an integrated resource management approach to its sugar complex, traditionally a heavily emitting industry. By creating a cluster of companies that re-use the by-products of the sugar plant, the project resulted in a 40% reduction in freshwater consumption and a 51% reduction in wastewater emissions. Several years after the project began, the secondary products accounted for 40% of company revenues.
- First – what is an urban growth boundary? An urban growth boundary (UGB) is a dividing line drawn around an urban area to limit encroachment into surrounding rural areas. (This is a similar approach to a greenbelt, which is a zone that divides a city from its surrounding countryside; strict land use regulations are designed to limit or prohibit development within the zone. Urban growth boundaries can be effective in : - promoting greater density within the built-up area Ensuring the efficiency of urban service provision (i.e. because service provision is only guaranteed within the urban area) Conserving quality agriculture and/or forestry land. However, UGBs have also been criticised for exacerbating, rather than resolving, some land use problems. What we do know: SIZE MATTERS: - If the containment area of a UGB is too large , the UGB has no effect on limiting urban growth. This occurred notably in Zurich, Switzerland, where overly optimistic population projections led to UGBs that were too large. And, once implemented, reducing the size of a UGB can be both politically difficult and costly: in Switerzland, the municipality is required to pay landowners for lost opportunity caused by the increased land use regulation. If the area is too small to sustain development pressure, a UGB can lead to a rise in land prices, a reduction of affordable housing within the boundaries, and leapfrog development. While the UGB in the Portland Metro Area is generally considered to have been successful in promoting denser development within the built-up area and preserving agricultural land ( see photo on slide ), it has been criticised for generating leapfrog development in neighboring urban areas. Leapfrog development has also been a problem with UGBs established in the UK and in the Netherlands.
- Siting development around public transit is key to improving the environmental impact of urban form: Common strategies include mixed-used development (co-locating housing, industrial, office and retail activities) and transit-oriented development Mixed-use development can promote the use of bikes, walking and public transit, by bringing different urban functions (home, work) and services closer together. Cities across the OECD are increasingly reforming zoning and building codes to allow for mixed-use development. Transit-oriented development can make urban functions and services more accessible via public transit, and often compels higher densities in order to ensure sufficient ridership. For example, the Hammarby Sjöstad neighborhood in southern Stockholm, developed in the 1990s with the goal of reaching 80% of trips to by public transit, foot or bicycle by 2010, is expected by 2015 to house 20 000 residents in 9 000 apartments. The development was close to reaching its goal by 2008, when the overall share of public transit, walking and bicycle trips had increased to 79%. In the suburbs of Washington, DC, the Rosslyn-Ballston corridor is a roughly 3.3-mile corridor of dense, mixed-use infill development along a metro line. This densely built transit-oriented corridor not only stimulated the development of over 21 million square feet of office, retail and commercial space and over 25,000 dwelling units -- it has also proven to be remarkably resilient during the economic downturn. In 2009, the office vacancy along the corridor was just 8.6% (compared to the U.S. national average of 18.3%), and just 3.5% for retail. Projects like Japan’s Tokyo Midtown development or Germany’s HafenCity in Hamburg illustrate the importance of designing quality public spaces and parks within dense, mixed-use projects. The Tokyo Midtown project reserved 40% of the project area for an expansive urban park (a counter-balance to the 564,000 m2 of floor area of mixed retail-office-and residential development). HafenCity’s dynamic urban activities centre in its expansive, well-designed public areas. In traditionally low-density neighborhoods, both mixed-use and transit-oriented devt can face political challenges (community resistance). Good design is key to ensuring greater public buy-in.
- Bogotá Transmilenio has the interesting characteristic that it has been partly financed with Clean Development Mechanism (CDM)-money, as one of the very few urban projects financed by CDM.
- Eco-neighbourhoods combine transportation, natural resources preservation, building, energy, waste and water policies to respond to climate change. As discussed earlier, the city of Stockholm developed the Hammarby Sjostad eco-neighborhood, a primarily residential development, which was very successful in altering the modal shift toward public transit, walking and biking. The city is now building on the Hammarby experience to develop the Royal Seaport , a much larger development (236 hectares; expected buildout 10,000 housing units; 30,000 new work spaces) that will incorporate housing, retail and offices, in addition to an innovation arena that will includes cutting-edge R&D projects. Finally, a learning platform will be developed onsite to help real estate developers develop their skills on sustainable solutions (passive house technologies, renewable energy, green roofs, building materials, climate adaptation and eco-cycles of materials). Among the successes of the BedZed (UK) eco-neighborhood in the UK is the continued low energy use of homeowners at BedZED – 45% lower electricity and 81% less hot water than the borough average – reducing carbon emissions as well as residents’ fuel cost. However, there was greater difficulty in finding a heating solution that met the needs of residents and the environmental targets. The project also reflects the need for strong partnerships and agreements between landlords, the government, utility firms and residents. Some eco-neigborhoods are taking a step further, with the intent of using the eco-development as a testing grounds for smart ICT technologies. New Songdo City in Korea will capitalise on Korea’s comparative advantage in broadband investment by combining ITC technologies and clean technologies to develop, widely diffuse and test the city’s computer-based technologies. These smart technologies could then be exported to other countries. While eco-neighborhoods can be effective “testing grounds” for experimenting with new green technologies and systems, there are concerns about effectively “scaling up” these projects and questions about the level of social exclusion (are these green developments accessible to the lower classes?).
- Transportation-related fees and taxes can also be used to fund public transit and de-incentivise auto use. Value capture taxes are frequently used; the base for this tax is an increase in property values arising from public infrastructure development. They can be levied as an ongoing tax or a one-time agreement, but can only be applied when the property tax value increase can be unambiguously attributed to the infrastructure investment. - Hong Kong, Miami, Milan and Bogota all have experience with Value capture taxes. Congestion charges , as have been implemented in Singapore, London, Stockholm or Milan, charge drivers entering the city centre (or a designated zone) an access fee. They can lead to reduce CO2 emissions from transport (up to 19.5% in London) and other air pollutants, reduce traffic volumes and congestion and lead to shifts in modal share. High-occupancy toll lanes are highway lanes in which only vehicles with a minimum number of occupants are allowed to drive, in order to encourage carpools. Many US cities use them. Parking fees and taxes are also increasingly popular, and, as price-elastic instruments, there’s ample evidence that they are effective in reducing car trips and decreasing the car share in the modal split: - parking charges have led to a 12% decrease in vehicle miles of commuters in the US... - ... A 13% reduction of car shares in modal splits in the UK - ... A 20% reduction in single car trips in Ottawa - ... And a 38% increase of carpooling in Portland (USA)
- Low interest loans and Energy Service Companies (ESCOs) lower the barriers for property owners to invest in energy efficiency and renewable energy technologies The City of Berlin has created the Berliner Energie Agentur in 1994, which manages energy efficiency retrofits for large public buildings in partnership with ESCOs and public banks. By 2011, 1400 public buildings have been retrofitted in Berlin, which creates EUR 2.9 million annual savings for the city and reduces CO 2 emission by 67 900 t per year. (The main financial partner is the public investment Bank KfW, which also offers low interest credits to private homeowners for retrofits. About a third of Berlin’s residential building stock has already been retrofitted with help of these public loans) The Toronto Mayor‘s Tower Renewal Programme brings broad economic, environmental, and social improvements to Toronto‘s older apartment towers and the neighbourhoods that surround them. The city helps building owners to reduce energy cost by more than 50%, increase water efficiency by more than 20%, and improve waste diversion rates by more than 30%. (The programme will create thousands of person years of employment in the construction sector with over CAD $ 2.1 billion in net wages. Implementation started in 2011 and runs until 2030) Osaka, Wakayama and Ube are among the Japanese cities that operate a “fifty-fifty” programme, jointly with public schools and energy service companies. Through this programme, public schools receive a subsidy equal to half of the money they have saved by reducing their consumption of electricity, fuel and water. The City of Berkeley’s Financing Initiative for Renewable and Solar Technology (FIRST) programme reduces up-front costs and unit costs of distributed energy technologies by providing loans to homeowners to purchase and install solar photovoltaic systems at interest rates and payback periods similar to those for home mortgages.
- District heating and cooling systems increase the efficiency of energy delivery and facilitate the delivery of renewable energy sources The Copenhagen district heating system provides 97% of the city’s total heating needs. The cities of Stockholm, Sweden and Mannheim, Germany, provide other examples of district heat generation, including the use of biofuels. The City of Toronto, Canada, has enabled the creation of a district cooling system by establishing a corporation that has connected most of the major downtown office buildings to a deep lake water cooling system and which has resulted in a significant decrease in electricity demand for air conditioning. Regulatory changes requiring buildings within a designated zone to connect to the system allow district heating and cooling projects to realise energy efficiency gains for a large number of energy consumers.
- Green building standards for new buildings increase the provision of renewable energy for commercial and residential buildings The Barcelona‘s Solar Thermal Ordinance requires all new buildings and major renovations to use solar thermal collectors to supply at least 60% of the energy used to heat water. It has led to similar ordinances in over 60 other Spanish municipalities. The Merton Rule is a prescriptive planning policy regulation introduced in the London Borough of Merton in 2003. It requires developers to plan that at least 10% of the new building’s energy is produced by renewable sources, integrated in the building or installed on site. (The concept has been taken up by the Greater London Council and many other municipalities across the United Kingdom. In some cases requirements of renewable energy provision go up to 20%)
- Technical and financial support for industrial retrofits help reducing industrial energy consumption and air and water pollution The Industrial Energy Efficiency Accelerator (IEEA) was designed by the UK Carbon Trust to work collaboratively with industry sectors to deliver energy savings in manufacturing processes. Working with key stakeholders in each sector innovations in equipment, processes and product strategy are identified. (In 2009-2011 fourteen industry sectors identified energy, carbon and cost savings typically averaging 25-30%) Since 2008, the German Special fund for improving energy efficiency in SMEs ( Sonderfonds Energieeffizienz für Kleine und Mittlere Unternehmen) subsidizes professional energy efficiency consultancy for SMEs (by 80%) and offers low interest loans for financing industrial retrofits of SMEs, in partnership with the public German investment bank KfW. Save Energy Now is a part of the US Department of Energy’s Industrial Technologies Programme. It provides plants with access to proven technologies, energy assessment, software tools; supports the commercialisation of emerging technologies; accelerates the adoption of energy-efficient technologies and practices; and promotes energy and carbon management. (For companies that sign a voluntary pledge to reduce their facilities' energy intensity by 25% in 10 years, a new LEADER programme provides companies personalized attention, tailored assistance, and priority access to technical and financial resources that will guide them through the critical steps necessary to becoming more energy efficient)
- Eco-industrial zones incorporating circular energy practices consume less energy and reduce air and water pollution and waste production Kalundborg in Denmark is the most well-known example of the economic gains that can be achieved by developing waste and energy exchanges in an eco-industrial park. The diverse firms in the eco-park of Kalundborg utilise each other’s surplus heat and waste products, with annual estimated savings of USD 12-15 million. ( Several other eco-industrial parks have followed this successful model and provide examples of how efficiency and sustainable use of resources can be integrated into business development programmes ( e.g. Styrian recycling network in Austria, Rotterdam Harbour and Industrial Complex in the Netherlands, Londonderry industrial park in New Hampshire, and Guigang Eco-Industrial Park in China) capture landfill methane gas to generate energy. Methane gas capture-to-energy projects have been started in a number of cities, notably Sao Paolo (where it was financed through a PPP) and Monterrey.
- Water pricing schemes and conservation programmes encourage water conservation and can provide funding for water treatment Water pricing schemes send a pro-conservation message to water consumers. Full-cost water pricing schemes separate water charges into fixed charges and commodity charges (which reflect actual water usage and the cost of providing it); such schemes have shown political viability. ( On average, in the United States, a 10% increase in the marginal price of water can be expected to diminish demand in the urban residential sector by about 3-4%) Toronto’s WaterSaver Program helps businesses that use a lot water to identify areas that may be “wasting” water and offers solutions and cash incentives. Industrial, commercial and institutional facilities that successfully reduce water use can receive a rebate (CAD 0.03 per litre of water saved). The programme allows Toronto to buy back water or sewer capacity that has been freed up by participants who have reduced water use in their operations. Melbourne installed purple pipes to transport Class A recycled water to more than 40 000 homes, which can be used for toilet flushing, for washing cars, or for watering outdoor landscaping. The delivery of recycled water in a distinct pipe allows to separate it from potable water and allows for significant savings in fresh water consumption. The city of Melbourne has achieved its first target to recycle 20% of its wastewater in 2010.
- Policies that increase recycling, food composting, material re-use, and state of the art waste-to-energy minimize landfilled waste Thanks to a comprehensive recycling and food composting programme the city of San Francisco diverts 77% of its waste from landfill and aims at zero waste to landfill by 2020. The actual amount of non-recyclable and non-compostable waste provided to collectors can be reduced through incentives in the waste collection rate structure. Since 2005 the City of Chicago requires general contractors to recycle at least 50% of the construction and demolition debris generated at larger construction or demolition projects, which are defined as new residential buildings of four units or more, or new non-residential buildings of more than 4 000 square feet. Compliance is monitored through voluntary reporting. (The City of Chicago also provides expedited permitting through its Green Permit programme for projects meeting certain green building requirements, including the on-site recycling of construction and demolition waste; although this step is not enough alone to earn an expedited permit. The reuse of building materials can also earn a mixed-income housing development project points towards eligibility for the Illinois Low-Income Housing Tax Credit Qualified Allocation Plan) Horsholm in Denmark recycles 61 % of its waste, incinerates 34 %, sends 4 % to landfill and can handle the remaining 1 % of hazardous waste safely instead of spreading it into landfills. In Denmark, waste-to-energy is socially well accepted, because plants are environmentally efficient and emit no more than 10 to 20 % of what EU standards for air discharges allow. The Afval Energie Bedrijf waste-to-energy plant in Amsterdam works with state of the art technology, which enables it to transform non-recyclable waste, biomass and sewage sludge into electricity, heat, metals and building materials. It processes almost 25 % of the Netherlands’ annual combustible waste, provides 285 000 households with electricity, 20 000 with district heating and hot water, and generates profits for the municipality that owns the plant.
- Facilitating connections between university research and private sector R&D for green technologies spurs green tech innovation The Milwaukee Water Council advances the interests of more than 150 companies and research institutions located in the greater Milwaukee region, all of whom produce goods, services, or research that relates to water in some way. The Milwaukee 7 identified a wide range of firms in the area that had at the core of their business an interest in water quality, water supply and distribution, water recreation, or water engineering; and facilitates partnerships with the Great Lakes Water Institute at the University of Wisconsin at Milwaukee which result in accelerated R&D, product development, showcasing and the commercialisation of cutting edge water technology. (The economic activity driven by these firms is sizable, as collectively they employ roughly 20 000 people in the immediate area. Five of the eleven largest water firms in the world have operations in the Milwaukee region, with their local operations doing USD 10.5 billion in business annually, the equivalent of 4% of the total global water market) Øresund Environment provides a regional forum for networking and knowledge exchange between businesses, universities and local governments – facilitating and promoting the development of new sustainable ideas and projects within energy, cleantech, eco-mobility, green healthcare, building processes, CSR and environmental leadership education. The goal of Øresund Environment is to promote innovation and the dissemination and commercialisation of research on eco-technologies. The solar Valley Mitteldeutschland is a solar industry cluster in central Germany, which combines industry, research institutions and universities working on solar photovoltaic . The region unites 35 global firms, 9 well known research institutions, 5 universities, as well as colleges and other education institutions, which together work on the entire PV value chain. The cluster is headed by a “cluster board” that coordinates all PV activities in the region and decides on strategic issues, including the allocation of resources.
- Tax incentives and funding for green tech industrial zones and incubators drive entrepreneurship, innovation and commercialisation Paris-IDF recently developed “Paris Region Entreprise” – a platform designed to provide unified services to local SMEs to facilitate R&D, innovation, etc. The Lahti Cleantech cluster supports the growth and internationalisation of cleantech companies by offering expert assistance in the identification of funding opportunities and in applying for funding. Companies are helped to create connections with capital investors, particularly at the growth stage. Strategic partners offer funding advice, opportunities, and a route to market familiarity, risk management and networking in China and India. (In China, strategic partners are identified through contacts of the FECC (Finnish Environmental Cluster for China) such as the private capital investment company, Juno Capital Group. In India, it is the sustainable development investment bank, Yes Bank) The US i6 Green Challenge programme, initiated by the US govt, will provide funding for the most innovative ideas to drive green technology commercialisation and entrepreneurship. The programme will lead to establishment of Proof of Concept Centers (CPC) in the areas of renewable energy, energy efficiency, and green building technology, which will help companies to test their innovations.
- Several experiences show that sustainability concerns can be successfully integrated in urban procurement practices through innovative tools evaluating the environmental impacts of the products or services delivered ( e.g. life cycle costing), and through institutional solutions. (Life cycle costing (LCC) is a structured approach that can be used to produce a spend profile of the product or service over its anticipated life-span) The city of Helsinki established a Procurement Centre, charged with developing operational models for managing markets through systematic dialogue with businesses. The centre is defining environmental criteria for different product groups and coordinating training programs to raise awareness among procurers. The City of Hamburg has sought to support the development of hydrogen-fuel buses by combining its purchasing power with other cities, Barcelona, Berlin, Cologne and London, with the goal of creating demand for 100-150 hydrogen buses. Cities and regions that are not municipal power producers can still use their regulatory authority to remove obstacles to local renewable energy production and district heating, and their self-governing authority to purchase renewable energy for city or regional operations (IEA, 2009b). The City of Calgary, Canada, purchases already over 75% of its electricity from renewable sources and will rise this share to a 100% by 2012. Within the variety of these public investments for green growth, four essential areas can be identified: housing and construction sector; transportation and information and communication technology (ICT); renewable energy; and recycling and pollution control. Private finance can be leveraged for public investments through public private partnerships (PPPs). Cities in many OECD countries increasingly use PPPs for the provision of infrastructure, such as transport infrastructure (which accounts for 472% of all PPPs planned and funded in the world since 1985) and for water (30%) and buildings (21%). Examples include Korea, France and the UK. (In China where PPPs have recently been introduced to finance wastewater infrastructure (in Beijing and Guangzhou) and solid waste management projects ( e.g. in Shenzhen and other cities in the Guangdong province)
- Workforce development is an effective means to adapt skills to the emerging needs of the green economy The Solar Valley Mitteldeutschland in Germany has a training needs co-ordination committee that includes a wealth of industrialists, research organisations, training centres, universities and the regional (Länder) authorities. Several master courses, eight academic chairs, and a centre of excellence for professional higher education have been established with the help of private foundations, as well as high-level training, all focused on solar energy. In order to provide the growing PV industry with qualified workforce, special attention is given to the link of education and professional formation. The Massachusetts Clean Energy Center has developed the Workforce Development Programme to promote collaboration and consistency in training programmes, to assist in the development of programmes for training students and to ensure the availability of skilled workers at each link in the value chain.
- The clean technology sector is becoming an important element of climate change plans and some cities have developed specific plans for growth through the green sector In 2005, the State of São Paulo and the State of California signed an agreement on technical co-operation between the two states. Recognising the need to act in climate change related sectors, the agreement also acknowledge the potential economical gains in working on emissions offset programmes through Kyoto Protocol’s CDM. In 2009, São Paulo became one of the first cities in the developing world to implement a city wide plan to fight climate change, which aims at reducing GHG emissions by 30% of 2005 levels by 2012 through several measures comprehensively focused on transportation, renewable energy, energy efficiency, waste management, construction and land use. The Portland Metro Climate Prosperity Greenprint provides a roadmap to accelerate the region’s leadership in green development and clean technology. The strategic priorities were developed in consultation with more than 200 business, higher education and workforce leaders and the Climate Prosperity Working Group, and are based on a combination of traditional economic development tools and targeted cluster work that will help to build and to diversify the Portland Clean Tech supply chain. Also, national price signals can make clean technology more competitive. National policies are essential to establish broad, cross-sectoral price signals to guide investment in green technologies, for example through a tax on carbon or establishment of national cap-and-trade regulations. More targeted, sector specific national policies or regulations can encourage large-scale investment in energy conservation and fuel switching or create the market conditions for other green technologies to thrive. In both cases, having a clear national policy framework is an important precursor that will determine the appropriateness and direction of different local strategies and policy instrument choice.
- Cities can make use of a range of policy instruments for stimulating green growth: Rulemaking and regulatory oversight : For example, pre-conditions to regulatory approval that provide incentives for denser development or greater energy efficiency or production of renewable. The ‘Merton rule” in London, which requires the on-site deployment of renewable energy technology as a precondition for building permit approval, is widely credited with boosting solar PV deployment around London (also local government play an enforcement role for policies established by higher levels, eg builiding codes) Public spending (70% - 50%) investments, subsidies, loans and tax breaks, procurement and PPP that facilitate green spending. Tax breaks can paly a role in reducing the upfront costs hurdles and units costs of distributed energy technology. Financial tools (fees, property tax, feed-in tariffs, etc.): While cities may be limited in their taxing powers (i.e. to reduce car use), yet other financial tools (i.e. congestion charges and parking fees) could be more widely applied. Singapore, Stockholm and London. Information and advocacy : local and targeted information has been shown to be more effective in increasing demand for green products and services. Cities are increasingly raising local awareness through consumer education programmes, eco-standards and eco-labelling, and best-practice demonstration sites. The use of multiple policy levers allows a local authority to adopt an iterative approach