rutu dave_urban development and climate change

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Urban Development and Climate Change Rutu Dave, Climate Change Specialist The World Bank South Asia Urbanization Knowledge Platform, March 2012

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Panel 2- UKP South Asia workshop

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Page 1: Rutu Dave_Urban Development and Climate Change

Urban Development and Climate Change

• Rutu Dave, Climate Change Specialist• The World Bank • South Asia Urbanization Knowledge

Platform, March 2012

Page 2: Rutu Dave_Urban Development and Climate Change

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

Page 3: Rutu Dave_Urban Development and Climate Change

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

Page 4: Rutu Dave_Urban Development and Climate Change

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!

Page 5: Rutu Dave_Urban Development and Climate Change

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

Page 6: Rutu Dave_Urban Development and Climate Change

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

Page 7: Rutu Dave_Urban Development and Climate Change

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

Page 8: Rutu Dave_Urban Development and Climate Change

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

Page 9: Rutu Dave_Urban Development and Climate Change

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

Page 10: Rutu Dave_Urban Development and Climate Change

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

Page 11: Rutu Dave_Urban Development and Climate Change

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

Page 12: Rutu Dave_Urban Development and Climate Change

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

Page 13: Rutu Dave_Urban Development and Climate Change

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

Page 14: Rutu Dave_Urban Development and Climate Change

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

Page 15: Rutu Dave_Urban Development and Climate Change

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

Page 16: Rutu Dave_Urban Development and Climate Change

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

Page 17: Rutu Dave_Urban Development and Climate Change

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

Page 18: Rutu Dave_Urban Development and Climate Change

City-wide link to broader climate change work

City-wide holistic

approach Development goals

Sector-specific infrastructure

needs

Nationally Appropriate

Mitigation Actions(NAMAs)

Page 19: Rutu Dave_Urban Development and Climate Change

Thank You!

• Rutu Dave• Climate Change Specialist• [email protected]