rutu dave_urban development and climate change
DESCRIPTION
Panel 2- UKP South Asia workshopTRANSCRIPT
Urban Development and Climate Change
• Rutu Dave, Climate Change Specialist• The World Bank • South Asia Urbanization Knowledge
Platform, March 2012
Cities’ contribution to climate change will grow
67% of world's energy supply
70% global GHG
emissions
NOW Cities have large impact on climate change
2050 Impact grows as urban population doubles
Source: Cities and Climate Change: An Urgent Agenda - The World Bank
Cities are vulnerable to climate change impact
Floods • 70% largest cities vulnerable to rising sea levels • 360 million urban residents vulnerable to flooding
Droughts • 70,000 deaths in Europe from severe heat wave in 2003• Vulnerability to disruption of food supplies
Pollution • Many cities have higher emissions than allowed by WHO• 1 in every 10 school children in New Delhi has asthma
Source: Cities and Climate Change: An Urgent Agenda, - The World Bank Global Urban Observatory - UN-HABITAT The Impact of Delhi’s CNG Program on Air Quality - Resources for the Future
Climate-smart planning helps city developmentAlternative 1 Alternative
2Capital-Intensive Alternative 2 Paradigm Shift
• High costs of heating and cooling inefficient buildings
• Investment in road network capacity to relieve traffic congestion
• Health care costs for pollution-related illnesses
Paradigm change requires special
attention in planning, incentives, education
• Lower energy costs from energy efficiency programs
• Improved air quality for residents• Public transportation systems and
increased walkability• Greater attraction for human capital and
private investments• Larger potential for growth
Cities lock-in form they grow into
Infrastructure created today will have 50-60 year life span
BUT: cities in 2060 and beyond will have very different needs than today!
Carbon finance as ‘icing on the cake’ for development
•Carbon finance speeds up repayment period • Win-win situation
•Cost savings•Revenue from CERs •Growth•External benefits
Opportunity
Challenge
Solution
• Green infrastructure projects have attractive repayment periods
•BUT development planning needs financing for up-front investment
•Access to funds through tools such as CIF and SREP
Bonus ‘icing’
Public
Private
Examples of successful climate-smart city programs
•Bus Rapid Transit system •Capital costs repaid through operating savings, CERs, and economic benefits
•Eliminated traffic gridlock •Public opinion improved
Case study: Transport - Guangzhou, China
•World Bank sponsored study on energy efficiency•Lessons learned from Paris applied to Bangkok Metropolitan Authority climate plan
•Climate plan was incorporated into Clean Technology Fund application
Case study: Energy Efficiency in Paris & Bangkok
Source: Guangzhou, China Bus Rapid Transit - Emissions Impact Analysis - Institute for Transportation and Development Policy
Source: Twinning Cities Project: Paris and Bangkok - The World Bank Institute
Examples of successful climate-smart city programs
•Common practice is open dumping of waste
•Up to 50% of waste is compostable• IRR of 21.2% with CERs•Reduces methane emissions and need for incinerators and landfills
•Creates agricultural product
Case Study: Waste – Lahore, Pakistan
•99% of households have solar heaters
•Solar heaters cost less than running conventional electric heaters, saving funds
•Traffic signals and public lighting powered by solar panels
Case Study: Solar Systems – Rizhao, China
Centralized vs. Distributed Generation
Sources: Good Practices in City Energy Efficiency: Lahore, Pakistan – ESMAP
Environmentally and Economically Sustainable Urban Development – ESMAP
WBICC programs help cities with smart development
CFCB E-learning City-Wide
Objective of World Bank Institute Climate Change Practice:help cities integrate low carbon and climate finance into
development planning via integrated programs
Carbon Finance Capacity Building
• 3 year relationship through city task team
• Technical assistance through workshops
• Feasibility study and project identification
• Advice on project development
E-Institute for Development
• Online courses for practitioners
• Cities & Climate Change• Procurement of Energy
Efficiency Services• Tapping Carbon Markets
and Energy Efficiency Projects in Public Buildings
City-Wide Approach to Carbon Finance
• Methodology aggregates GHG mitigation reductions
• Gives cities greater flexibility through holistic approach
• Covers 5 sectors
Carbon Finance Capacity Building in 4 Megacities
Dar es Salaam, TanzaniaSolid waste management program
Project Idea Note (PIN) completed
Jakarta, IndonesiaUrban greening program
Project Idea Note (PIN) completed after feasibility study
Sao Paulo, BrazilFavela waste management program
Pilot project started
Quezon City, The PhilippinesEnergy efficient street lighting
Programme of Activities (PoA) Idea Note completed
São Paulo: PoA on waste managament in favelas• 15tons of garbage daily: • 59% from households•Organic material is 60%•Only 1% of waste recycled• Environmental problems from building rubble dumped illegally
•Landfills at capacity•Methane emissions
Problem
Solution• Engage community via campaign• Focus on waste separation• Treat organic waste on site through composting plant
•Collect methane and burn for electricity
Outcomes
€26 million from CER auction
370,000 MWh clean electricity / year
GHG reduction by 20%.
Investment in better housing for favela residents
Source: Sao Paulo Project Report – The World Bank Institute
Quezon City: Energy efficient street lighting
• City covers ¼ expanse of Metro Manila and is most populated in Philippines
• Street lighting is 64.8% of City government’s total electricity costs
• Need scalable model for other Philippine cities with high energy costs
Problem
Solution•Street Lighting Taskforce coordinates efficient lighting implementation
•Deploy Light Emitting Diode (LED) – energy efficient lights, easily controlled and dimmed
Outcomes$51M investment has $4.5M annual savings and $.7M income from CER auction – payback period reduced
21,700 MWh saved per year
10,700 tCO2e per year saved
Reduction of city costs, improved visibility, and additional funds for poverty prevention
Source: Quezon City Project Idea Note – The World Bank Institute
Dar es Salaam: Waste management program
• 5,000 tons of waste per day by 2015•Up to 81% of solid waste is organic•Waste is central problem: rots in streets and landfill. generating methane•Lack of infrastructure•Poor hygienic condition of urban poor•Difficulty with procuring investment
Problem
Solution•Waste management is lowest-hanging fruit in carbon finance
• Investment in waste stations & trucks•Landfill gas capture system and flaring•Community involvement in educational campaign
Outcomes•$51M investment with $115M revenue from CERs over 21 years
Captured biogas can generate 3500 MWh per year
7M tCO2-e over life of project
Improved hygiene conditions, community involvement in project
Total investment (CapEx + OpEx)
CER revenue (2014-2035)
$-
$20
$40
$60
$80
$100
$120
$140
Source: Dar es Salaam Project Idea Note – The World Bank Institute
Jakarta: Ambitious Urban greening project
• Land overcrowding, pollution of air and water supply
• Green open space (GOS) at 11% but 30% needed for quality of life
• Budget for green space is not sufficient to scale
Problem
Solution•Establish green areas•Regulation for buildings and industrial parks to include 30% green space
•Greening links adaptation and mitigation approaches
• Immediate impact : citizens can observe green space, cleaner air
Outcomes
Absorb >1M tons tCO2 per year
Improved quality of life for residents
Source:DKI Jakarta
Realized: 8,890 ha
Wetland Restoration: 1,000 ha
Private buildings: 6,000 ha
State Land Mgmt: 2,500 ha
Industrial Park: 835 ha
Buffers (railway,
road, other):
1,000 ha
Total new green space: 1136 ha
Target: 30% Green Open Space at 20,225.79 ha
Benefits of City-Wide MethodologyProblem
• Poor access by cities to carbon market mechanisms:
Components
Focus climate change action taken at national level
Scaleindividual city-level GHG emission reduction activities, are not large enough to warrant transaction costs associated with carbon finance
Priorities limited financial resources channeled to improving access to basic urban services
Solution
Greater flexibility for GHG program covering one, a few, or all sectors, as part of a single comprehensive effort.
Flexibility
Dynamic individual sector departments could propose new interventions over program lifetime
Source: A City-Wide Approach to Carbon Finance– The World Bank
Transportation of Waste WasteTransport
Urban Forestry
Water
Grey water reuse
Sludge treatmentPedestrian
comfortEnergy
Traffic mgt Biogas-to-energy
Efficient water
pumping
Heat island effect
Carbon markets
Climate finance
National/local institutions
Bi-lateral agencies
Private sector
Local jobs
Pollution reductionAir quality Energy
savingQuality of life
GHG mitigation
Financing
Benefits
Sectors
City-Wide Approach
Source: A City-Wide Approach to Carbon Finance– The World Bank
Creating a City-Wide Program
1 •Establish a coordination office for the program
2 •Establish the geographical and sector boundary for the program
3 •Create an inventory of GHG emissions in the boundary
4 •Identify responsible departments and agencies
5 •Create appropriate incentives for relevant stakeholders (good practice)
6 •Identify interventions (technology/measure) and establish eligibility
7 •Establish system for documentation and quality control
8 •Implement and monitor the interventions
9
10
• Quantify emission reductions using established methodology
• Validate and verify GHG Emission Reduction benefit Source: A City-Wide Approach to Carbon Finance– The World Bank
city sells or retires assets toward target
integrates with existing data collection
City-Wide Approach in Rio de Janiero and Amman
projects from all relevant urban sectorsSCOPE
allow for methodologies from different carbon standards
FLEXIBLE
MRV
SALE
database of all carbon assets; vertical integration to state, national level
REGISTRY
reinvest revenue in low-carbon projectsSUSTAIN
InvestmentsWaste TransportEnergy Urban Forest
High potential of GHG savings
~$ 2.8 B over 28 yrs
PolicyDensification principle - Building code- Zoning-Public transport-Rooftops
CapacityProgram mgmt. teamDonorsContractingTrainingData management
Financing1. Max. green funding2. Leverage private
sector investment3. Ensure long term4. Cross finance projects
AmmanRio
City-wide link to broader climate change work
City-wide holistic
approach Development goals
Sector-specific infrastructure
needs
Nationally Appropriate
Mitigation Actions(NAMAs)