Presentation made at the 6th Asia Pacific Forum on 20 October, Jakarta, Indonesia by Tadashi Matsumoto, Project Manager, Green Growth/Knowledge Sharing Southeast Asia, OECD Regional Development Policy Division.
www.oecd.org/regional/regional-policy/
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Governance for Urban Green Growth: Indonesia
1. GOVERNANCE FOR URBAN
GREEN GROWTH: THE CASE
OF INDONESIA
Tadashi Matsumoto, OECD
APUF 6
20 October 2015, Jakarta
2. • One third of GDP growth during
1995-2007 was produced by just 2%
of OECD regions.
• Cities account for 67% of global
energy use and 71% of global
energy-related CO2 emissions.
• Cities account for 70% of public
direct investment (on average at
the OECD).
2
Cities are focal points for growth but also for
environmental externalities and vulnerabilities:
Urban Green Growth: Cities Matter!
3. 3
Urban Green Growth in Dynamic Asia –
Conceptual Framework
Opportunity Areas
1.
Enabling Strategies
Energy
Land Use and
Transport
Housing and
Buildings
Solid Waste
Management
Green Goods
and Services
Water Resource
Management
National-Local Integration Financing
Policy Instruments
Horizontal Cooperation and
Community Engagement
International Cooperation Capacity-building
4. • How to “enable” Asian cities to implement
urban green growth?
• Policy practices in Indonesian cities and
beyond?
4
Objective of the session
5. • Integrating local green growth actions into
national strategies
• Co-ordination across provincial and local
jurisdictional boundaries
• Effective metropolitan governance mechanism
• Diversify local revenue base and mobilise private
finance – role of the central government?
• Community-based approaches
• Capacity development
5
Key discussion points
What is green growth in cities?
Fostering economic growth and development through urban activities that reduce negative environmental externalities and the impact on natural resources and environmental services
“Green”: urban activities (public and private) that reduce negative environmental impact (land-use, transport, buildings, energy, waste, and water)
“Growth”: GDP growth primarily, but also urban quality of life
Cities are part of the problem:
Cities play a critical role in national growth: during 1995-2007, 2% of OECD regions (mainly large urban areas) produced roughly one third of GDP growth in the OECD
But they also generate environmental externalities: cities account for 67% of global energy use and 71% of global energy-related CO2 emissions
Average global flood losses, estimated at about USD 6 billion per year in 2005, could reach USD 1 trillion (per year) by 2050 in 136 of the world’s largest coastal cities. (this figure is if no adaption policies are taken. If adaptation policies are taken (i.e. flood probability is maintained constant from 2005 to 2050), losses would still reach USD 60 to USD 63 billion a year in these 136 cities (mainly due to socio-economic change, in this scenario)).
Cities must be central to the solution:
Urban policies can lower the costs of national environmental policies.
Cities account for 70% of public direct investment and 50% of public procurement (on average at the OECD).
Cities offer economies of scale for measures that address climate change adaptation.