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Energy and environment in the context of urban development

This article discusses the legitimacy of aid in dealing with energy issues, the importance of rethinking long-term urban planning to reduce energy demand, and the need for new financial instruments. It explores the challenges of energy resources exhaustion, increasing energy bills, and climate change, and examines existing solutions in the industrial, transportation, and building sectors. The role of donors in supporting projects and promoting institutional aspects and capacity building is also explored.

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Energy and environment in the context of urban development

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  1. Energy and environment in the context of urban development ABCDE Tokyo, may 2006

  2. 3 Key messages • The use of aid is legitimate dealing with energy issues, even in emerging countries • Rethinking and redesigning the long term urban planning process in order to reduce future energy demand is essential • Donors have to support new modalities of intervention, especially new financial instruments

  3. 1. Aid legitimacy A. 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 ?

  4. 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.

  5. 2. Implementation challenges A. The context Main and more important energy consuming sectors are industries, buildings and transport in developing, the two latter closely related to urban development.

  6. 2. Implementation challenges B. What are the existing solutions ? 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

  7. 2. Implementation challenges C. What is there to be done to help developing countries ?

  8. GJ/ha 80 80 Houston 70 Phoenix 70 Detroit Denver 60 60 Los Angeles San Fransisco Boston 50 Washington DC 50 Chicago New York 40 40 Perth Toronto 30 Brisbane 30 Melbourne Adelaide Sydney 20 20 Hamburg Frankfurt Stockholm Zurich Paris Brussels London Munich 10 10 Copenhagen Vienna Amsterdam West Tokyo Berlin Hong Kong Singapore Moskow 0 0 0 50 100 150 200 250 300 2. Implementation challenges Urban development and energy consumption Densité (Hab/ha) Density (cap/ha) Source: NEWMAN & KENWORTHY

  9. 2. Implementation challenges 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. The extreme case showed by Atlanta and Barcelona…

  10. 3. The role of donors • 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

  11. 3. The role of donors • B. 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.

  12. 3. The role of donors • C. 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

  13. 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

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