OECDGREENGROWTHANDSUSTAINABLEDEVELOPMENTFORUM

Howcities andother levels ofgovernment canworktogethertofoster greengrowth through innovativepolicyapproaches

Edoardo CrociIEFEBocconiUniversity

edoardo.croci@unibocconi.it

OECD,Paris– 9/10November2016

1

Ongoing processes on urban sustainability

• The Encyclical “Laudato Si” by Pope Francis is published in May 2015. The Pope makesa strong call for action by all levels of governments, including local, on globalenvironmental challenges linked to poverty.

• The Addis Ababa Action Agenda (AAAA) adopted at the Third International Conferenceon Financing for Development in July 2015 calls for greater international cooperation“to strengthen capacities of municipalities and other local authorities”.

• The Sustainable Development Goals (SDGs) adopted by the UN in September 2015,include a specific goal on cities (SDG11, Sustainable cities and communities: “Makecities inclusive, safe, resilient and sustainable”) ;

• The Paris Agreement adopted at UNFCCC COP21 in Paris in December 2015,acknowledges the importance of engagements of all levels of government inaddressing climate change.

• The New Urban Agenda approved in Quito in October 2016 at the UN Conference onHousing and Sustainable Urban Development (Habitat III), links sustainableurbanization with development;

Definition and measurement of cities’ performances

• Differentdefinitionsfordifferentpurposes:Administrative,Functional,Morphological

• Emergenceofmetroregions(evencrossingnationalborders)• Dataavailability(commonmethodologiesandstandards- ISO37120?-,

periodicofficialstatistics)• Indicators(financial,economic,environmental,social,well-being,spatial)• Measurementofagglomerationeconomiesanddiseconomies• Urbanmetabolism(modellingandassessingkeyrelationships)

TheOECDdefinitionoffunctionalurbanareas“consistsofhighlydenselypopulatedurbancentersandadjacentmunicipalitieswithhighlevelsofcommutingtowardsthedenselypopulatedmunicipalities”withaminimumpopulationsizeof50.000inhabitants.“Metropolitanareasaredefinedasthefunctionalurbanareaswithapopulationabove500.000inhabitants.”

•TOBETTERMANAGE•TOASSESSPROJECTS•TOPLAN•TOMONITOR•TOBENCHMARK•TOBUILDCREDITWORTHINESSANDLEVERAGEFUNDING•TOFOSTERINFORMEDPUBLICPARTICIPATION•TOMODELANDFORECAST•TOIMPROVECITYGOVERNANCE

Purpose of standard urban indicators

Ex.: modelling city metabolism: IEFE-Bocconi research framework on urban GHG emissions

Determinants

Geographical andmorphological

Technological

Economic

Social

FactorsUrbanmobility• passengertrips• freightvehiclestrips• averagelengthoftrips•modalsplitoftrips• emissionfactors

Residential&commercialbuildings• energydemand• energy mix• floorspace• emissionfactors

GHGemissions

Others

Financing urban sustainable development.

Traditional• Europeannational,regional/provincial

transfers• Localgovernmentfiscalrevenues(including

fines)• Localchargesforprovidingpublicservices• LocalgovernmentdebtInnovative• CapitalizationandSecurization ofmunicipal

tangibleassets• Greenmunicipalbonds• Localcarbonmarkets• Leviesbasedlocalgreenfiscalreforms

(valuecapturetaxes,tourismlevies,congestionchargesetc.)

Traditional• Financialsystem (equityandloans)

Innovative

• Multinationalandnationaldevelopmentbanks(grantsandloans)

• Localprojectpurposetaxes

• Public-PrivatePartnershipmodels

• Socialimpactbonds

• Crowdfunding

• Thirdpartyfinancing(ex.ESCOs)

• PaymentsforEcosystemServicesschemes

Municipal budget Projectfinancing

Multilevel governance for sustainable energy: key dimensions and recommendations

• Structured andparticipative process• Integrated multi-level andinter-sectorial process• Evidence-based planning(monitoring andevaluation)

Modelling,Planning,Monitoring

• Createfinancial synergies withexisting activities• Activate avariety oftargeted funding sources• Designbankable projects

Financialinstruments

• Stimulate creativity andideas• Structuretheparticipatoryprocess• Showtangible results

Awarenessraisingandstakeholdersinvolvement

Source:CrociE.adapted fromCoopenergy project

Urban innovation in Milan mobility:2 case studies

1. Urban road pricing. Launched in 2008.2. Innovative bike and car sharing. Launched in 2008.

Regulatory, Technological, Financial, Political and Social innovation characterizedthe experiences.Sharing of experiences with other city was a relevant success factor.Ex ante evaluation, ongoing and ex post evaluation were performed.