Best practices in Best practices in green growth green growth in Citiesin Cities

Experiences from the Experiences from the OECD Programme on Green CitiesOECD Programme on Green Cities

José Antonio ArdavínHead OECD Mexico Centre for Latin America

Club de MadridRoundtable:

The G20 in the Post Crisis World: The Need for Green Growth

Introduction

• What is the Green Cities programme?

• Goals for this presentation

The OECD Green Cities programme seeks to assess how urban green growth and sustainability policies can contribute to improve the economic performance and environmental quality of metropolitan areas and thus enhance the contribution of urban areas to national growth, quality of life and competitiveness.

The programme includes:1.Conceptual framework on cities and green growth2.Case studies of select cities or national urban policies 3.Environmental indicators at the metropolitan level4.Comparative report on cities and green growth

OECD Green Growth Strategy has a specific approach to green growth in cities

Present key findings from the OECD Conceptual Framework on Cities and Green Growth:•What is urban green growth?•Why green growth in cities?•What lessons and best practices can be derived from worldwide experience?

Defining green growth

 Not just about recovery…

The OECD Green Growth Strategywww.oecd.org/greengrowth 

Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and ecosystem services on which our well-being relies. To do this it must catalyse investment, competition and innovation which will underpin sustained growth and give rise to new economic opportunities.

OECD (2011), Towards Green Growth

…a core economic strategy that leads to a different way of thinking about development.

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 development

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

Defining urban green growth

The logic of city-scale action

•Economic role of cities (urbanisation and income)

•Negative externalities (congestion, pollution, sprawl)

•Contribution to climate change

•Vulnerability to climate change impacts

Opportunities for synergies and complementarities (attractiveness)

Australia

Austria Belgium Denmark

Czech Republic

Canada

Finland

France

Germany

Hungary

Ireland

Italy Japan Korea

Mexico

New Zealand

Norway

Poland

Portugal

Spain

Slovak Republic

Sweden Switzerland

Turkey

United Kingdom

United States

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Urban density in 2005 (population/ km2)

Correlation between per capita CO2 emissions in transport and density in predominantly urban

areas

Atlanta

BaltimoreChicago

Dallas

DetroitLos Angeles

New York

Helsinki

Lille

Lyon

Paris

Hanburg

Budapest

Naples

Rome

Madrid

Stockholm

Zurich

Ankara

Istanbul

London

Melbourne

Aichi

FukuokaOsaka

Tokyo

Busan

Seoul

Auckland

Guadalajara

Mexico city

Monterrey

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Absolute change in attractiveness

Change in attractiveness and pollution emissions across OECD metro-regions (2001-2030)

A Policy Framework for an Urban Green Growth Agenda

Greening Opportunities and Challenges

Greening Opportunities and Challenges Ex. of potential economic impact

Energy: Local production/ purchase of renewable energy; district heating/cooling; retraining of workers for renewable energy sector

Job creation, reduced energy costs, more reliable energy

Mobility: Public transport investment; fees applied to personal vehicle use; support for low-carbon vehicle R&D; development oriented around public transport nodes

Reduce congestion, increase accessibility and property values

Natural resources: Pricing policies to manage water demand; investment in greywater systems; open-space preservation and vegetation planting.

Reduce cost of public service delivery, increase attractiveness

Buildings: Public building retrofitting, support for investment in renewable or energy efficient technologies, labelling, retraining of workers for retrofitting

Job creation, reduce public energy costs

Pollution prevention, treatment and abatement: investment in waste-to-energy plants, recycling and composting programmes, support for pollution abatement firms.

Reduce cost of public service delivery, job creation, increase attractiveness

Green services: environmental planning and permitting, green financial services, eco-tourism

Job creation, increase attractiveness

CO2 emissions per capita in transport relative to the urbanised

population density in a selection of major world cities

Lowering CO2 emissions: urban form matters

Per capita carbon emissions tend to be reduced as urban areas become denser and rely to a greater extent on public transit, walking and cycling.

This is a particular challenge for developing countries

81% of the growth of energy use will come from developing countries. The form they give to their cities now is crucial for determining the energy use.

Energy consumption

Non-OECDOECD countries

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 fees

Ending 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

practices

Urban 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)

• Rosslyn-Ballston corridor (Arlington, Virginia)

• Tokyo Midtown development

• HafenCity (Hamburg, Germany)

Linkages to transit are key.

Siting development around public transit and co-locating housing, industrial, office

and retail activities (mixed-use development) can promote public transit, walking and biking by making different

urban services and functions more accessible.

Promoting public transportation and green mobility International best

practices• Bus Rapid Transit BRP

(Curitiba, Bogotá Transmilenio, Mexico City Metro Bus)

• Public Bicicle Services (Paris, Lyon, Barcelona, Mexico City)

Cultural Change

Marked better quality services and time savings gradually promote a cultural

change in favour of public transportation and cleaner mobility. Linkages to other 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 transitInternational 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 upDistrict 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 reducing industrial energy consumption and air and water pollution

Reducing industry energy intensity, pollution and capture-to-energy

initiativesInternational best practices

• Eco-industrial zones (Denmark, Austria, Netherlands, New Hampshire, Guigan China)

• Capture landfill methane gas to generate energy.  (Sao Paolo and Monterrey)

Kalundborg (Denmark)

Eco-industrial zones incorporating circular energy practices consume less energy and reduce air and water pollution and waste production

Gas collection at Bandeirantes Landfill , Sao Paulo

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, and state 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 sector R&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 and incubators 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-partnerships

City governments can green regional growth by the purchase of or the investment 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 the emerging 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 development

The clean technology sector is becoming an important element of climate change plans and for growth through the green sector

In sum, Cities are crucial actors for achieving green growth since they have at hand many policy instruments to engage in a virtuous cycle of sustainability.

• 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