Energy and environment in the context of urban development

ABCDE Tokyo, may 2006

3 Key messages

1. The use of aid is legitimate dealing with energy issues, even in emerging countries

2. Rethinking and redesigning the long term urban planning process in order to reduce future energy demand is essential

3. Donors have to support new modalities of intervention, especially new financial instruments

1. Aid legitimacyA. Understanding elements

Paradox :

Industrialised countries are the most important energy consumers.

But most of energy savings to be done today are concentrated in emerging countries

The need for energy efficiency incentives :

Energy cost is the main incentive for energy efficiency

What mechanisms to maintain energy efficiency efforts in a context of low energy prices ?

1. Aid legitimacy

B. Main challenges

Energy resources exhaustion as a geopolitical concern

The increase of the energy bill as an economic concern

Climate global warming as an environmental concern

Energy efficiency is therefore a major thematic of sustainable development which comes to be a global concern. This calls on developed countries to react.

2. Implementation challenges

Developed countries

0

50

100

150

200

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

Exaj

oule

s Industrial

Buildings

Transport

Agriculture

Total

Developing Countries

0

50

100

150

200

1971

1975

1979

1983

1987

1991

1995

1999

Exajoules

Industrial

Buildings

Transport

Agriculture

Total

Main and more important energy consuming sectors are industries, buildings and transport in developing, the two latter closely related to urban development.

A. The context

2. Implementation challenges

Energy efficiency efforts in the three sectors :

Industrial sector : efforts in this sector are the most easy to implement (easily quantified)

Transportation sector : efforts mainly concern the development of technology innovation in less energy consuming materials

Building sector : efforts can be made in two areas :- the development of legal and regulatory frameworks in relation

with the construction of new buildings- rehabilitation in a sustainable perspective

B. What are the existing solutions ?

2. Implementation challenges

C. What is there to be done to help developing countries ?

Main impact measures

Industry - use of the Carbon Fund mechanisms (Clean Development Mechanism of Kyoto – but what to be done afterwards ?)

Transport -transfer of technology-new approaches and methodologies in urban planning (e.g Tranus)

Buildings - no « one best way » : institutional, operational and financial frameworks should be analyzed to find the best solutions

Densité (Hab/ha)

Density (cap/ha)0

10

20

30

40

50

60

70

80

0 50 100 150 200 250 300

GJ/ha

Houston

Phoenix

Denver

Los Angeles

San Fransisco

Boston

Washington DC

Chicago

New York

Detroit

TorontoPerth

Brisbane

Melbourne

Sydney

Hamburg Frankfurt

Zurich

Brussels

Stockholm

Paris

Copenhagen

London Munich

Vienna

Tokyo

Singapore

Moskow

Hong Kong

Amsterdam WestBerlin

80

70

60

50

40

30

20

10

0

Adelaide

Source: NEWMAN & KENWORTHY

2. Implementation challenges

Urban development and energy consumption

Urban development and energy consumption

2. Implementation challenges

The extreme case showed by Atlanta and Barcelona…

What will be the urban development model for developing countries ? The impacts in terms of energy and environment will certainly not be the same. Source : BERTAUD A.

Source: BERTAUD A.

3. The role of donorsA. Review aid mechanisms : conception and process of

projects

Implicate more developing countries in research programmes in order to find the most suitable solutions for them

Promote projects that focus more on institutional aspects, good governance and capacity building

Use various financial instruments : sovereign and non-sovereign financing, investment funds, guarantees,…

Support private sector investments in energy efficiency projects, including through public-private partnership

3. The role of donorsB. Some examples from AFD experience

In Asian emerging economies, China and Thailand, AFD was mandated to focus its action on promotion of energy efficiency and renewable energy.

AFD is funding projects of alternative energy production aiming to provide electricity to urban population : biogas, micro hydro and cogeneration in western part of China.

AFD is developing a research program on financial mechanisms for energy efficiency in the building sector, with a likely collaboration with an Asian research centre.

3. The role of donorsC. Some examples from the French Global Environment Facility experience (FGEF)

An energy efficiency programme for low cost housing projects in China :

A programme for the development of an integrated sustainable public transport system for Greater Hanoi :

- project to carry out feasibility studies for an integrated public transport system

- phase 1 (1999-2004) : 50% annual energy savings were achieved with less than 7% additional investment cost- phase 2 (2004-2007) : rehabilitation, rural housing, sustainable development at the district level

References

Giraud P-N., Lefevre B., Les défis énergétiques de la croissance urbaine au Sud. Le couple « Transport – Urbanisme » au cœur des dynamiques urbaines, Paris : CERNA, April 2006

International energy agency 2006 Energy week – World Bank Thomas Heller – Standford University Sustainable cities – Presentation by Canada Industry at

CSD 14 – New York May 2006