building sustainable and climate-smart -...

May 17th, 2010

Building

Sustainable and

CITIES in Europe andCentral Asia

THE WORLD BANKEUROPE AND CENTRAL ASIA REGIONSUSTAINABLE DEVELOPMENT DEPARTMENT

Climate-smart

What do we mean by “sustainable cities”?

EconomicSocial

Context

• demographic decline

• global market competition

• economic restructuring/transformation

• environmental legacy and climate change

Relevance

Why “Sustainable Cities”?

• cost saving & resource mobilization

• re-positing & improving quality of living

• attracting investments and talents

• contributing to global goods

China

Brazil

Germany

India

Japan

United States

Sweden

Korea, Rep.

South Africa

0

5

10

15

20

25

15 25 35 45 55 65 75 85

Urban population (% of total)

Source: World Development IndicatorsBubble size corresponds to total carbon dioxide emissions (kilotons)

Carbon dioxide emissions per capita, 1967-2005 (metric tons per person)

Why are We here?

Key elements of successful sustainable development

What Have We Learned

• strong leadership, vision, and long term strategy

• enabling policy environment

• integrated planning, across sector approach

• innovative project ideas, backed by financing

• implementation, enforcement, and good governance

Principle

• a multi-level framework for policy formulation and implementation

• a city-based, cross-sectoral and multi-stakeholder approach

• an investment prioritization based on long term planning

Shaping Sustainable Cities Together

Modality

• capacity building for comprehensive strategy, integrated planning,

and M&E for urban sustainability

• financing investments in priority areas

• sustainable urban development strategy and green growth action

plan

• standardized city sustainability assessment and benchmarking

• legislative, regulatory, and policy advice

Shaping Sustainable Cities Together:Modality: Capacity building

National level

• city-wide sustainable/low carbon urban development strategy and

action plan

• city-level energy audit and GHG inventory, and city vulnerability

assessment

Sub-national level

Sofia City Development Strategy

Modality

Capacity building: Upstream Assessment, Policy, Strategy, and Action Plan

BUILDINGS

TRANSPORT

WATER and WASTEWATER

ENERGY (district heating and street lighting)

SOLID WASTE MANAGEMENT

URBAN FORESTRY

Shaping Sustainable Cities Together:Modality: Priority Investment

Multi-sectoral interventions

Sectoral interventions

Priority Investment: multi-sectoral interventionsHammarby Sjöstad Model

Priority Investment: multi-sectoral interventionsBangkok Metropolitan Area (BMA) Urban Transformation Project

Project Objective

• support implementation of BMA GHG reduction target (15% from 2007 to 2012)

Project Scope

• expand public urban transport (Promote urban transport integration and

accelerate further BRT routes)

• promote the use of renewal energy

• improve building energy efficiency

• improve solid waste management and wastewater treatment efficiency

• expand park area

Financing

Clean Technology Fund: $70mGovernment of Thailand: $1,127mWorld Bank IBRD: $70m

Bu

ild

ing

s

Priority Investment: sectoral interventionsHousing Energy Efficiency Pilot Project in Lithuania (1996-2001)

Project Objective

• support private initiative in improving residential energy efficiency

• support public initiative in improving energy efficiency in schools

• support the implementation of Government policies on housing privatization

• enable increased private initiatives in housing maintenance

Project Scope

• credits for residential energy efficiency rehabilitation, through commercial banks, with incentives for homeowner to participate

• energy efficiency retrofit of schools in selected municipalities

• setting up advisory centers for homeowners and HOA’s

• further policy reform in demand side energy use and the energy and housing sectors.

World Bank IBRD: $9.9mGovernment of Lithuania: $4.9mCOF: $2.57mTotal: $18.46m

Financing

Outcomes

• 264 apartment buildings renovated; 25 SFHs renovated

• Average savings of 20% of heating consumption for HOA’s

• Average Energy savings of 62% for schools

• Rehabilitation of 43 schools, benefiting 26,745 pupils

• HOA law improvements made

• Lithuanian Energy Consultants Association formed

Priority Investment: sectoral interventionsHousing Energy Efficiency Pilot Project in Lithuania (1996-2001)

Tra

ns

po

rt

Project Objective

Project Scope

:India Sustainable Urban Transport Project (2009)IBRD: $105m, GoI: 223, GEF: 20. Total: $348m

• Capacity building

• Development of action plans to implement key urban transport reforms envisioned in the NUTP

• Piloting urban transport database

• City demonstration projects

• Transit-oriented development• Pilot intelligent transport system• Non-motorized transport development (bike path and pedestrian)

• Support the implementation of the India National Urban Transport Policy (NUTP) by improving environmentally friendly transport modes in selected pilot cities

Priority Investment: sectoral interventions

Wate

r an

d W

aste

wate

r

Project Objective

Project Scope

South Africa: Sebokeng/Evaton Pressure Management Project (2005)

• Introduction of an advanced pressure management system

• Public Private Partnership

• private firm provided capital, design, implementation, training, and O&M

• Private firm paid by sharing the resulting savings in water purchases

• Reduce high water supply costs (including significant energy costs) and improve the utility’s financial status by implementing leakage and pressure management in bulk water supply.


Financing

Project Outcome


South Africa: Sebokeng/Evaton Pressure Management Project (2005)

• financial savings from both energy use and water loss reduction at $3.8 m/year for 20 years

• municipality retains 80% of the saving for the first 5 years, and 100% afterwards

• annual saving of 14,250 MWH of energy produced with fossil fuel

• GHG emission reduction of 12,000 ton/year

• Payback time: 3 months

• Private firm: $800,000

En

erg

y

Project Objective

Project Scope


Bulgaria: District heating and energy efficiency services (2003-2008)

• Network rehabilitation

• substation rehabilitation

• General plant rehabilitation

• Assist the Sofia District Heating Company (TS) and Pernik District Heating Company (TP) to improve the quality of services, financial viability, and increase environmentally friendly operations

Financing

Project Outcomes

• Increased percentage of connection to district heating

• Demonstrated positive fiscal impact

• Improved working ratio

• Reduced network heat loses

• Decreased energy consumption

• Demonstrated environmental benefits

• World Bank IBRD: $ 40.7 m; TS: $ 6.6 m; KIDSF: $ 31.4 m

• EBRD: $31.4 m; USAID: $ 1 m


Bulgaria: District heating and energy efficiency services (2003-2008)

Project Objective

Project Scope/Outcome expected

• Facilitate GHG emission reduction and support the development of the international market mechanism for trading Emission Reductions (ERs).

• Sale of 123,696 Certified Emission Reduction (CERs) resulting from improvements in the energy efficiency of street lighting at 8 municipalities in India

• Build own operate transfer basis through ESCO

• Replacement of T12 fluorescent and mercury/sodium vapor fixtures with energy efficient T5 and high pressure sodium lamps


India: Energy Efficient Street Lighting Carbon Offset Project (2009)

Financing

• IFC Equity: $1.75 m

• Local financial institution: $ 4.08 m

Priority Investment: sectoral interventions:

India: Energy Efficient Street Lighting Carbon Offset Project (2009)

CER Purchaser

Community Development

Carbon Fund

CDM Projects Bundling

Agent

Asian Electronic Ltd

(ESCO)

Street Lights Owners

Municipal Corporations

CER

Project financing,

Implementation, Monitoring,

and management

Share of CERs revenues

Carbon

Sales

Assets CDM Executive

Board

Projects reimbursement

Communication

So

lid

Waste

Project Objective

Project Scope

• Institutional strengthening and capacity development• Strategic planning in SWM systems• Piloting private sector participation in SWM• Development of information system to track performance of MSW

• Infrastructure development• Landfill construction and upgrading leachate treatment facility• Construction of two transfer stations• Design, Build and Operation of an LFG recovery system

• Carbon finance attachment

• Strengthen the operational, financial, and environmental performance of MSWM in Amman


Amman Solid Waste Management Project (2008)

Financing

Project Outcomes


Amman Solid Waste Management Project (2008)

• Increased percentage of municipal solid wastes managed in a sanitary landfill from 0 to 80%

• 160,000 MWh generated through the lFG recovery system by 2013

• Cost recovery ratio for SWM improved from 63% to 75% by 2013

• 950,000 tons of CERs (CO2 equivalent) generated by 2013

• World Bank IBRD: $ 25 m

• Amman, Jordan: $15.5 m

Tools

Shaping Sustainable Cities Together: Innovations

• City-based GHG inventory methodology

• City-wide approach to Carbon Finance

(being piloted in Amman, Jordan)

• Energy Efficient City Initiative (Ukraine, Turkey, and Russia)

• Urban Sustainability Index (WB, UNEP, UN-Habitat)

Tools

Adoption of policy and regulatory measures

Materialization of the targets such as carbon reduction

Urban Infrastructure

Policy and Regulatory Measures

Infrastructure Investment

Financial Instruments

IBRD DPL

IBRD DPL

Carbon Finance

Climate Investment Funds (CTF, SCF)

GEF Finance

Carbon Finance

IFC

MIGA Guarantee

IBRD SL Loans/

grants

Donor Co-Financing

ECA Cities at the Crossroads

SHORT-TERM PLANNING

Moving Forward

WHICH WAY FORWARD?

Yo

ur

Ch

oic

e

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