Current Situation & Development Framework of Sino-Foreign Eco-Cities

© 2016 SEC. All rights reserved.
Current Situation & Development Framework of
Sino-Foreign Eco-Cities
Paris, March 2016
“Smarter, Greener, Together!”
Er-Ti Chen 陈尔迪
SEC, Associate
www.smartecocity.com
1

AGENDA
3. Bilateral Framework of Sino-Foreign Eco-City: Three Case-studies
2. Eco-City Trend In China
1. Executive Summary
4. Success Factors of Sino-Foreign Eco-City
2

Executive Summary
Current state
•  Due to the challenges of climate change, creating eco-cities has
gradually become the paramount goal of global urban construction.
•  As the primary region of urban construction in the world, China has a
significant impact on sustainable development: 80% of prefecture-level
cities have a minimum of one eco-city being considered for construction.
•  Various versions of the eco-city model are being developed in China, all of
which seek to impose change at a rapid pace and on a vast scale.
•  An underlying bilateral partnership framework has led to the success of
several Sino-Foreign eco-city projects.
•  According to research, the three key components for developing a
successful Sino-Foreign eco-city are: an inclusive political framework, a
comprehensive organizational and financial structure and robust technical
solutions.
3

AGENDA
2. Eco-City Trend in China
4

Eco-City Trend in China
Study based on 200 eco-city projects, there are several unique
versions of eco-city developments in China
Industry or high-tech
zones
•  Mostly industry
focused, for instance
on trade, research
and technology
•  Average planning
area: 34 km2
Residential projects
area: 3 km2
New locations for future
city development
•  High quality public
service facilities
•  Residential projects
with high-tech
industry features
area 152.8 km2
D I A G R A M O F V A R I O U S E C O - C I T Y
D E V E L O P M E N T T Y P E S
Leisure and entertainment
•  Conference centers, exhibition
venues and hotels
•  Residential villas
•  Average planning area: 22km2
57%
17%
9%
9%
5%
3%
New Urban District
Resort Region
Real Estate Project
High Tech Park
Eco-Town
Exisit Urban District
5

Eco-city developments are viewed as the means of establishing a
sustainable future in China
•  2007 marked a turning point in
the development of Chinese
eco-cities, with a steady
increase in numbers
detectable from this point
onwards.
•  This rapid rise in development
projects continued between
2009 and 2011.
•  According to CSUS (2015), 56%
of eco-city projects in China
were already under
construction by 2013, with the
remaining 44% still being
carefully planned.
1
1
2
9
8
17
41
23
0
10
20
30
40
50
2001
2002
2006
2007
2008
2009
2010
2011
NumberofChineseeco-city
G R O W T H O F C H I N E S E E C O - C I T Y
Sourcecompiledthroughresearch,imagebyauthor
6

80% of prefecture-level cities have a minimum of one eco-city
being considered for construction
•  In 2015, it was estimated that
more than 200 proposed eco-
city projects were either under
construction, or had already
been partly or fully
implemented (CSUS, 2015).
•  “Years of ingenuity has resulted
in the development of eco-
cities becoming more
rationalized, however, damage
to the environment continues
to exist and grow as the
number of new cities expands,”
said Mr. Li Hailong, CSUS.
Source: The Cases of Chinese Eco-City, (Chinese Society for Urban Study, 2014)
Northeast China Plain
Beijing, Tianjin, Hebei
Sichuan & Chongqing
Hubei & Hunan
Pearl River Delta
Yangtze River Delta
Various proposed name for Eco-City
•  Eco-City •  Green Eco-City •  Livable Eco-City •  Other suggested name for Eco-City
Geographical Location of Current
Eco-City Development in China
7

An inclusive bilateral partnership framework is crucial for the
success of developing eco-cities in China
"China's eco-city constructions
should have the interests of the
people at their core. Some
European cities and practices
have resulted in positive eco-
city projects, and we can learn
from some of their
experiences,” said Mr. Li
Hailong, CSUS.
WUXI SINO-SWEDISH
LOW-CARBON ECO-CITY
QINGDAO SINO-GERMAN ECO-CITY SINO-SINGAPORE TIANJIN ECO-CITY
中新天津生态城唐
首批8个获得国
The first eight green e
津生态城唐山湾生态城无锡市太湖生态城昆明市呈贡新区
绿色生态城深圳市光明新区贵阳中天未来方舟生态城长沙市梅溪湖新城
8

AGENDA
1. Exclusive Summary
9

Bilateral Framework of Sino-Foreign Eco-City: Case-study 1
Sino-Singapore Tianjin Eco-city gains significant political attention
and involvement from both governments
Former Prime Minister Wen Jiabao of
China and Senior Minister Goh Chok
Tong of Singapore oversaw the
creation of Tianjin Eco-city, as a sign of
both countries’ commitment to
sustainable solutions in urban areas.
Success Factors: A clear organizational structure;
strong political support and the relatively balanced
power positions of collaborating parties.
Advantages: Built stable political relations; close
economic connections; strong resource
interdependencies; capacity potential for Tianjin
Binhai New Area.
M A S T E R P L A N O F S I N O - S I N G A P O R E
T I A N J I N E C O - C I T Y
Source: Master plan (IE Singapore)
Key political framework:
•  Joint Steering Council at Prime Ministerial
level
•  Joint Working Committee at ministerial
level
•  Financial subsidy and preferential policies
for Singaporean firms to locate
successfully to the area
•  Involvement of both local and national
politicians and businessmen
•  Multiple governmental agencies acting
as promoters
•  Focus on Singaporean technology and
the export of knowledge
10

The public private partnership framework provides a sustainable
model for eco-cities
B I L AT E R A L F R A M E W O R K O F S I N O -
S I N G A P O R E T I A N J I N E C O - C I T Y
Successful Factors: Tianjin Eco-city
offers many attractive incentives for
foreign companies hoping to invest in
the area. Aided by a successful
organizational structure, these
incentives extend to public as well as
private sector businesses, and thus far
have created sustained financial
subsidies for investors.
Key Advantages:
•  Tailor-made investment solutions for
individual investors
•  Special voluntary tax settlement
policy
•  Start-up rental subsidy up to 80% of
the total
•  Up to 100% rebate on local portion
of Corporate Income Tax over a
period of five years
11

The key performance indicators provide a continuous guide for
the success of technical solutions
K E Y T E C H N I C A L S O L U T I O N S

Key performance indicators
(KPI) include 22 quantitative
and 4 qualitative indicators.
Key technical solutions:
•  100% Green building
•  ≥20% Renewable energy
on site
•  ≥90% Green
transportation
•  ≥60% Waste recycling
•  ≤ 150T Carbon emission
per million $ GDP
12

Wuxi Sino-Swedish low-carbon Eco-city receives significant
political support
The Sino-Swedish Low-Carbon Eco-City
memorandum of understanding
between the Wuxi municipal
government and the Swedish Ministry of
the Environment was created following a
meeting between Sweden’s State
Secretary Elisabeth Falemo and officials
from Jiangsu Province and Wuxi City.
Success Factors: Collaboration based on a client-
provider model, accompanied by political support
from both nations; a complete package of
solutions offered by Sweden; the establishment of a
special government agency for the promotion of
Swedish firms.
Advantages: Continuing the pre-established
relationship between Sweden and Wuxi makes
close economic connections possible.
M A S T E R P L A N O F W U X I S I N O -
S W E D I S H L O W - C A R B O N E C O - C I T Y
Source: Master plan (TENGBOM)
•  Sino-Swedish working group involving the
Wuxi municipal government and the
Swedish Ministry of the Environment to
identify relevant parties to join the
collaboration team
•  Joint Steering Committee
•  Joint Technical Committee
•  The long-term promotion of Swedish
technology and knowledge transferal via
education by the Center for
Environmental Technology at the Swedish
Embassy in Beijing 13

The bilateral organization framework consists of key players from
both nations
B I L AT E R A L F R A M E W O R K O F S I N O - S W E D I S H
L O W - C A R B O N E C O - C I T Y
The initial investment of $ 5.9
million was primarily committed
to the project by the local Wuxi
government, leaving their
Swedish partners with the main
role of contributing to the
establishment of environmental
standards and providing relevant
technical advice for the project.
Key Advantages: Swedish Center for Environmental
Technology (CENTEC) promotes and facilitates Swedish
best practice in sustainable urban planning and
environmental technology. CENTEC plays an important
political role in ensuring future Sino-Swedish collaborations.
Success Factors: Collaboration
founded upon the Memorandum of
Understanding provides strong public
support for and presence in the
collaboration based on a client-
provider model.
14

Strong economic agreements create the foundations for
implementing the Swedish Symbio City concept
The trademarked Symbio
City model represents
Sweden’s interpretation of
the eco-city concept and
resulting interdisciplinary
solution for sustainable
urban development. Using
the Symbio City model as a
prototype, development
guidelines were established
based on seven key factors.
•  Urban function and urban space;
•  Natural environment;
•  Energy utilization and solar energy;
•  Green building;
•  Water recycling;
•  Waste treatment;
•  Public transport with
clean energy.
15

Qingdao Sino-German Eco-Park establishes long term bilateral
cooperation in the fields of energy and technology for both nations
A pledge for long-term international
cooperation was marked by the signing
of A Memorandum of Understanding
between China’s Ministry of Commerce
and German’s Federal Ministry of
Economics and Technology. This was
followed by the Joint Declaration on
Cooperation for sustainable mobility,
energy efficiency and innovative
transportation technology.
Success Factors: Privately financed project
accompanied by political support; experienced
company used as a spearhead.
Advantages: Client-provider model with high level
of political support; BMWI acting as the promoter
and safety net to encourage more active
participation from private sector companies.
M A S T E R P L A N O F Q I N G D A O S I N O -
G E R M A N E C O - PA R K
Source: Master plan (Sino-German United Group)
•  Privately financed project, supported
politically by the Federal Ministry of
Economics and Technology (BMWI) and
Ministry of Commerce (MofCOM)
•  Close involvement of leaders at ministerial
level, supported by meetings between
both nations every six months
16

The client-provider framework with strong public support is the key
to success
B I L AT E R A L F R A M E W O R K O F S I N O - G E R M A N
E C O - PA R K
In 2015, the Sino-German
United Group Co. Ltd became
the official developer and
manager of the Qingdao Sino-
German Eco-Park. Within the
organizational structure, the
German consortium is mainly
comprised of the German
Industry and Commerce Co.
Ltd and the Far Eastern
Consulting company.
Key Advantages: Having a highly
experienced partner with extensive
contextual knowledge and
consistent contact with policy
makers allowed the two ministries
to provide support in the most
beneficial manner.
17

The key technical solution is the structure provided by the
comprehensive German Eco-city standards
The German eco-city standards
and indicator system (40
indexes) is provided by TÜV Nord.
•  Economic optimization: carbon
emission per GDP≤ 180t CO2 /
million by 2020
•  Resource saving: 100% green
building by 2020
•  Environmentally friendly: green
areas per capita - 30 m2
•  Inclusive development: 100%
standardization of five-minute
walk time between residential to
green areas
K E Y T E C H N I C A L S O L U T I O N S
18

AGENDA
19

Success Factors of Sino-Foreign Eco-City
There are various successful Sino-Foreign eco-city frameworks
C I T I E S
F R A M E W O R K S
B I L A T E R A L
P O L I T I C A L
F R A M E W O R K
F I N A N C I A L &
O R G A N I Z A T I O N A L
F R A M E W O R K
K E Y T E C H N I C A L
S O L U T I O N S
S I N O - S I N G A P O R E
T I A N J I N E C O - C I T Y
Government-to-Government
collabora=on with significant
poli=cal support from both na=ons.
Joint Steering Council (Deputy Prime
Minister Level) & Joint Working
CommiWee (Ministerial Level).
Firm, sustainable financial & business
models incorpora=ng both na=ons. A
50%-50% consor[um-based joint venture
(SSTEC) as the eco-city developer.
Established one of the first Key
Performance Indicators for eco-ci=es
in China. Lessons drawn from
Singapore’s experience, indicators cover
environment, society and economy as an
implementa[on and evalua[on guide.
W U X I S I N O -
S W E D I S H L O W -
C A R B O N E C O - C I T Y
Intergovernmental agreement
between Wuxi municipal government and
the Swedish Ministry of Environment.
Ini=al investment of 5.9 million USD
commiLed primarily from the local
Wuxi government. The Swedish Trade
Council acts as the promoter to bring
more Swedish companies into the
collabora[on.
Implemented the Swedish
trademarked concept of Symbio City,
which represents the Swedish
interpreta[on of the eco-city concept and
emphasizes the integra[on of various
urban systems and synergies.
Q I N G D A O S I N O -
G E R M A N E C O -
P A R K
A Memorandum of Understanding
for the joint development of a Sino-
German Eco-park was signed by China’s
Ministry of Commerce and German’s
Federal Ministry of Economics and
Technology.
Financed by the Chinese state-owned
Sino-German United Group Co. Ltd.
(SGUG) with registered capital of
900million RMB. In May 2015, SGUG
successfully acquired a German listed
company - German Brokers AG.
Comprehensive and robust technical
standards and indicators (40 indexes)
derived from German examples provided
by TÜV NORD.
20

The collaborative model contributes to the success rate of eco-city projects
C O L L A B O R A T I O N
T Y P E S
I N T E R G O V E R N M E N T A L
A G R E E M E N T - B A S E D
J V - B A S E D C O L L A B O R A T I O N
U N D E R J O I N T S U P E R V I S O R Y
B O A R D
I N T E N S I T Y
Medium Strong
M A I N F E A T U R E S
Permanent poli=cal support based on structural
coopera=on framework between governments;
package solu[ons offered by foreign partners;
assistance from promo[onal government agency or
experienced companies.
Government-togovernment collabora=on; Consor=um-based
Joint Venture as master developer; supervisory board consis[ng
of joint steering commiWee and joint working commiWee with control
over JV; package solu[ons offered by foreign partners; wide
par[cipa[on of government agencies, companies and knowledge
ins[tutes from both partners.
S U C C E S S
F A C T O R S
Economic connec=ons; poli=cal support; resource
interdependencies; company strength; match of
expecta[ons; commitment of leaders and ini[ators.
Economic connec=ons; poli=cal support; investment capacity;
trust; company strength; match of expecta[ons; commitment of
leaders and ini[ators; balanced power rela[ons.
I N I T I A T O R S
Local government, na=onal ministries, engineering
firms and consultants.
Local government, na=onal government at Prime Ministeral
level.
E X A M P L E
Wuxi Sino-Swedish Low-Carbon Eco-City
Qingdao Sino-German Eco-Park
Sino-Singapore Tianjin Eco-City
21

Three key components in the development of a successful
Sino-Foreign eco-city
D I A G R A M O F A S U C C E S S F U L M O D E L
22

Conclusion
23
Economic connections
The financial viability as a central component of eco-city provides the economic context of the study. Base on
the study, foreign direct investment from abroad is a vital part of generating competitive strength for regional
progression in the context of numerous eco-city plans. It is clear to note that, because urban planning and
evolution entails the movement towards strategic objectives over long periods of time, healthy relationships, in
terms of politics and economics, can contribute to the longevity and security of the collaborative project. Of
the 3 case-studies in the present report, Sino-Singapore Tianjin Eco-City demonstrates the strongest economic
connections among the two nations.
Political relation
Given the common thread relating to Sino-foreign collaborative projects in the context of eco-cities, joint
collaborative projects will invariably be impacted by the nature of the governmental connections that exist
between the nations. The case studies indicate that the notion of a cooperative enhancement for eco-cities
tends to result initially from political figures’ visiting foreign nations. In the context of developments to eco-cities
that are first independently pursued, the extent to which an entrepreneur is successful in scaling the enterprise
to the country-wide level frequently necessitates bilateral support from the respective governmental and
ambassadorial bodies. In this way, it is clearly seen that governmental relationships perform a crucial part in
facilitating conversation between political agencies, generating prospects, and influencing the nature of the
collaborative project. Of the 3 case-studies in the present report, Sino-Singapore Tianjin Eco-City demonstrates
the strongest political relationship among the two nations.
Knowledge transferring
The availability of bring foreign expertise present a common thread throughout the case-studies. Rigorous
technical key indicators or foreign success case as technical guideline indicates the success of the project. In
this case, all 3 case-studies demonstrate a strong case of knowledge transferring.

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Er-Ti Chen 陈尔迪
ec@smartecocity.com
24

Thank you!
谢谢!
25

Current Situation & Development Framework of Sino-Foreign Eco-Cities

Current Situation & Development Framework of Sino-Foreign Eco-Cities

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