Financing Green Cities - the Concept

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Financing Green Cities- The Concept -

Konrad Otto-ZimmermannSecretary General

ICLEI  – Local Governments for Sustainability 

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Cities on the globe

1.2% of the Earth’s surface 

50% of the population

75% of energy consumption

and CO2 emissions

Hubs of the global economy:

100 largest cities produce30% of the global GDP

1 Megacity like Beijing is largerthan each of the 150 smallestUN member states

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Global trends

Meadows, Donella & J. Randers, D. Meadows – Limits to Growth: The 30-Year U date 2004

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Challenge 1:Greenhouse gas emissions

© Guardian

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Unbrokenglobal trend

Challenge 2:Climate change

The 1:100challenge

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Unbrokenglobal trend

„By 2050, within 40 years,we must build once more the sameurban capacity as we have builtover the last 4000 years.“

Challenge 3:rapid urbanization

The 1:100challenge

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Challenge 4:Ecological footprint

Source: Global Footprint Network, Wackernagel, Peak Everything (2009)

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Challenge 5:Well-being

• Air pollution

• Water and sanitation

• Access to nature / greenspace

• Mobility

•

Jobs• Community life

• … 

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Green city – ecocity

Eco-city:"a human settlement modeled on the self-sustaining resilient 

structure and function of natural ecosystems. … provides

healthy abundance to its inhabitants without consuming more

renewable resources than it replaces in its bioregion” 

Ecocity Builders, IEFS, 2011 

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• Healthy & happy city

• Integrated sustainability policy &

planning• Green infrastructure

• Low-carbon and climate-neutral city

•

Disaster- and climate-resilient city• Resource-efficient city

• Bio-diverse city

• Green economy

Urban investment goals

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Urban investment

• Huge demand for

infrastructures worldwide:

 – Housing, – transport,

 – water,

 –sewerage,

 – power, …

• Retrofit of old cities

• New cities

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• Local renewables

• Green buildings

• Waste management

• Water & sanitation

• NMT and public transport

• Green fleets

• Ecosystems and parks

•

Resilience and risk reduction

Urban investmentexamples

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From project focus to«urban area performance»

www.globalsecurity.org

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Improved

solid waste

management

Storm

drain

maintenance

Rainwaterstorage tank

Emergency(district?)

power supply

Retail space

development

Housing

developmentPotable

water

supply

Storm drain

construction

Healthy

services

Back-up

power

supplyNew

office/hotel/

residential tower

Road grade/

egress redesign

Rainwater

storage tank

HVAC

upgrading

Resilience performance

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Transport performance

Proximity to

other modes

of transport

Mixed LandUse

Accessible

Infrastructure

RapidBus Lane

Traffic control

system

Rapid Bus

Transport Stop

Cycling and

walking paths

Rapid rail

system

Bike sharing

station

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Energy performance

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Governance

Who…

… has what mandate and powers 

… and which means

… and cooperates with whom

… to fulfil which task 

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Responsibilities forinfrastructure & services

National

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Capacity for performanceenhancement

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Resilience upgrade

Technology

Know-how

Money

Area-wide bundeling

Policies

Institutions

Projects 

New financial

instruments

New planning

routines

?

?? ?

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Where the money is

2005-2025

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Local capacity neededto create a market

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Bottom-up Financefor Resilience Initiativelaunched at Resilient Cities 2011, Bonn

Call for inclusion of LocalGovernment in development of funding/financing rules

Call for flexible finance of performance upgrade projectsdevloped bottom-up

Call for priority use of public fundsfor capacity+institution building

for demand-driven market

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Thank you

www.iclei.org

[email protected]