Best practices ingreen growth in Cities Experiences from the OECD Programme on Green Cities José Antonio Ardavín Head OECD Mexico Centre for Latin America Club de Madrid Roundtable: The G20 in the Post Crisis World: The Need for Green Growth
Introduction The OECD Green Cities programme OECD Green Growth Strategy seeks to assess how urban green growth has a specific approach to green and sustainability policies can growth in cities contribute to improve the economic • What is the Green Cities performance and environmental quality programme? of metropolitan areas from the Present key findingsand thus enhance the contribution of urban areas to OECD Conceptual Framework • Goals for this presentation national growth, Greenof life and on Cities and quality Growth: competitiveness. •What is urban green growth? •Why green growth in cities? The programme includes: •Conceptual framework on cities and be •What lessons and best practices can green growth worldwide experience? derived from •Case studies of select cities or national urban policies •Environmental indicators at the metropolitan level •Comparative report on cities and green growth
The OECD Green Growth Strategy www.oecd.org/greengrowth Not just about recovery……a core economic strategy that leads to a different way of thinking about development.Defining green growthGreen growth means fostering economic growth anddevelopment while ensuring that natural assetscontinue to provide the resources and ecosystemservices on which our well-being relies.To do this it must catalyse investment, competitionand innovation which will underpin sustainedgrowth and give rise to new economic opportunities. OECD (2011), Towards Green Growth
What is urban green growth?Extending the scope of the OECD definition of green growth • A need for new sources of urban growth • The presence of policy complementarities at the local level • The importance of social equity to urban developmentDefining urban green growth Fostering economic growth and development through urban activities that reduce negative environmental externalities, the impact on natural resources and the pressure on ecosystem services. The greening of the traditional urban economy and expanding the green urban sector can generate growth (through increased supply and demand), job creation and increased urban attractiveness. These effects are in part the result of stronger interactions at the urban level among economic efficiency, equity and environmental objectives. OECD (2011), Cities and Green Growth: A Conceptual Framework
The logic of city-scale action Correlation between per capita CO2 emissions in transport and density in predominantly urban areas• Economic role of cities 6000 United States (urbanisation and income) 5000 Canada 4000• Negative externalities Australia New Zealand Ireland (congestion, pollution, sprawl) 3000 Norway Spain Denmark Belgium Finland Austria SwedenSwitzerland United Kingdom 2000 Italy France Japan Korea• Contribution to climate Germany Portugal Czech Republic O o n u p C 2 a k g / Mexico t ) ( Hungary i l Slovak Republic Poland 1000 change Turkey m O o n p C 6 0 2 e a c s r t 0 i 0 1000 2000 3000 4000 5000• Vulnerability to climate Urban density in 2005 (population/ km2) change impacts Change in attractiveness and pollution emissions across OECD metro-regions (2001-2030) 4.00% Osaka FukuokaOpportunities for synergies 3.00% Stockholm 2.00% Rome and complementarities 3 0 2 ) Tokyo Seoul Paris 1.00% Dallas Zurich Atlanta Mexico city Istanbul - (attractiveness) New York Chicago Detroit Baltimore Los Angeles Busan Helsinki 0.00% Hanburg -140 -120 -100 -80 -60 -40 -20 0 20 40 60 80 Budapest Melbourne -1.00% Ankara Aichi Lyon NaplesAuckland -2.00% Lille Guadalajara London -3.00% m Monterrey w Madrid o h n u P 1 0 2 e a g s r t ( i l -4.00% Absolute change in attractiveness
A Policy Framework for an Urban Green GrowthAgenda
Greening Opportunities and Challenges Ex. of potential economic impactGreening Opportunities energy; ChallengesEnergy: Local production/ purchase of renewable and Job creation, reduceddistrict heating/cooling; retraining of workers for renewable energy costs, moreenergy sector reliable energyMobility: Public transport investment; fees applied to Reduce congestion,personal vehicle use; support for low-carbon vehicle R&D; increase accessibilitydevelopment oriented around public transport nodes and property valuesNatural resources: Pricing policies to manage water demand; Reduce cost of publicinvestment in greywater systems; open-space preservation service delivery,and vegetation planting. increase attractivenessBuildings: Public building retrofitting, support for investment Job creation, reducein renewable or energy efficient technologies, labelling, public energy costsretraining of workers for retrofittingPollution prevention, treatment and abatement: investment Reduce cost of publicin waste-to-energy plants, recycling and composting service delivery, jobprogrammes, support for pollution abatement firms. creation, increase attractivenessGreen services: environmental planning and permitting, Job creation, increase
Lowering CO2 emissions: urban form matters CO 2 emissions per capita in transport relative to the urbanised population density in a selection of major world citiesPer capita carbon emissions tend to be reduced as urban areas becomedenser and rely to a greater extent on public transit, walking and cycling.
This is a particular challenge for developing countries Energy consumption OECD countries Non-OECD81% of the growth of energy use will come from developing countries. Theform they give to their cities now is crucial for determining the energy use.
Encouraging infill and brownfield redevelopment International best practices• Preferential property tax rate for multiple dwellings (Copenhagen; Sweden)• Two-rate property tax system (Sydney, Hong Kong, Pittsburg, Denmark, Finland)• Special Area Tax• Development feesEnding the incentives to urban sprawl. Property taxes and fees related to urban development can be reformed to incentivise compact development. But the rate structure must truly differentiate between desirable (compact, transit-oriented development) and undesirable (single-family auto-dependent sprawl) outcomes to be effective.
Encouraging infill and brownfield redevelopment International best practices• Brownfield redevelopment• Kalundborg eco-industrial park (Denmark)• Styrian recycling network (Austria)• Rotterdam Harbor & Industrial complex (Netherlands)• Eco-town programme (Japan)• Guigang industrial park (China) Brownfield redevelopment can increase the tax base and the asset value of the site and surrounding area. Eco-industrial parks show how industrial land-use planning can create synergies between employment and environmental outcomes.
Encouraging infill and brownfield redevelopment International best practicesUrban growth boundaries• Portland, Oregon (US)• Zurich, Switzerland• Japan Size matters. If the containment area of a UGB is too large, there is no effect on limiting urban growth. If the area is too small to sustain development pressure, a UGB can lead to a rise in land prices, a reduction of affordable housing within the boundaries, and leapfrog development.
Improving the environmental impact of urban form International best practices• Hammarby Sjöstad (Stockholm) Linkages to transit are key.• Rosslyn-Ballston corridor Siting development around public transit and co-locating housing, industrial, office (Arlington, Virginia) and retail activities (mixed-use• Tokyo Midtown development development) can promote public transit, walking and biking by making different• HafenCity (Hamburg, Germany) urban services and functions more accessible.
Promoting public transportation and green mobility International best practices• Bus Rapid Transit BRP Cultural Change (Curitiba, Bogotá Transmilenio, Marked better quality services and time Mexico City Metro Bus) savings gradually promote a cultural change in favour of public transportation• Public Bicicle Services (Paris, and cleaner mobility. Linkages to other Lyon, Barcelona, Mexico City) modal transportation are an important feature
Improving the environmental impact of urban form International best practices• Royal Seaport (Stockholm)• BedZED (Beddington, UK)• New Songdo City (Korea)• Ile Saint Denis eco- neighbourhood (Paris-IDF)• Bo01 & Augustenborg (Malmö)• Vesterbro (Copenhagen)• Viiki (Helsinki) Eco-neighbourhoods can be effective testing grounds for smart technologies. But can projects be effectively scaled up? Are they socially exclusive?
Financing public transit International best practices• Value capture tax (Hong Kong, Miami, Milan, Bogota)• Congestion charges (Singapore, London, Stockholm, Milan)• High-occupancy toll lanes• Parking charges and feesTransportation-related fees and taxes can also be used to fund public transit and create disincentives for auto use.
Reducing building energy consumption and waste International best practices• Berlin ESCOs (Germany)• Toronto Mayor’s Tower Renewal Programme (Canada)• “Fifty-fifty” programme (Japan)0• Berkeley FIRST (US) Low interest loans and ESCOs lower the barriers for property owners to invest in energy efficiency and renewable energy technologies
Increasing energy efficiency of the built environment International best practices• Copenhagen district heating system (Denmark)• Toronto district cooling system (Canada)• Regulation for scaling up District heating and cooling systems increase the efficiency of energy delivery and facilitate the delivery of renewable energy sources
Increasing distributed renewable energy in cities International best practices• Barcelona Solar Thermal Ordinance (Spain)• Merton Rule (UK) Green building standards for new buildings increase the provision of renewable energy for commercial and residential buildings
Reducing industry energy intensity and pollution International best practices• Industrial Energy Efficiency Accelerator (UK)• Special fund for energy efficiency in SMEs (Germany)• Save Energy Now (US)Technical and financial support for industrial retrofits help reducingindustrial energy consumption and air and water pollution
Reducing industry energy intensity, pollution and capture-to-energy initiatives International best practices• Eco-industrial zones (Denmark, Kalundborg (Denmark) Austria, Netherlands, New Hampshire, Guigan China)• Capture landfill methane gas to generate energy. (Sao Paolo and Monterrey) Gas collection at Bandeirantes Landfill , Sao Paulo Eco-industrial zones incorporating circular energy practices consume less energy and reduce air and water pollution and waste production
Conserving and treating water International best practices• Water pricing schemes (US and others)• Toronto WaterSaver Programme (Canada)• Melbourne purple pipes (Australia) Water pricing schemes and conservation programmes encourage water conservation and can provide funding for water treatment
Waste diversion, recycling, and waste-to-energy International best practices• San Francisco Zero Waste (US)• Chicago C&D recycling and reuse (US)• Horsholm waste strategy (Denmark)• Amsterdam waste-to-energy (Netherlands)Policies that increase recycling, food composting, material re-use, andstate of the art waste-to-energy minimize landfilled waste
Spurring innovation through research cooperation International best practices• Milwaukee Water Council (US)• Øresund Environment Academy (Denmark/Sweden)• Solar Valley Mitteldeutschland (Germany)Facilitating connections between university research and private sectorR&D for green technologies spurs green tech innovation
Facilitating the development of green tech clusters International best practices• Paris Enterprise Region (France)• Lahti Cleantech Cluster (Finland)• i6 Green Challenge Programme (US)Tax incentives and funding for green tech industrial zones andincubators drive entrepreneurship, innovation and commercialisation
Increasing demand for green tech firms’ products International best practices• Helsinki public procurement centre (Finland)• Hamburg hydrogen fuel buses (Germany, Spain, UK)• Calgary’s renewable energy purchasing (Canada)• Public-private-partnershipsCity governments can green regional growth by the purchase of or theinvestment in construction, transportation, ICT, renewable energy, etc.
Supplying skilled workforce for the green economy International best practices• Solar Valley Mitteldeutschland (Germany)• Massachusetts Clean Energy Center (US)Workforce development is an effective means to adapt skills to theemerging needs of the green economy
Planning and growing with green technology International best practices• São Paulo Action Plan for Mitigation and Adaptation to Climate Change (Brazil)• Portland Metro Climate Prosperity Greenprint (US)• National price signals for local green technology developmentThe clean technology sector is becoming an important element ofclimate change plans and for growth through the green sector
In sum, Cities are crucial actors for achieving greengrowth since they have at hand many policyinstruments to engage in a virtuous cycle ofsustainability. • Rulemaking and regulatory oversight – Buildings, water use, recycling, zoning, urban form • Public spending – Infrastructure, transportation, • Financial tools – fees, property tax, feed-in tariffs, etc. • Information and advocacy – Promoting research, innovation, campaigns