Introduction to Megacities Challenges Confidential / Siemens Brazil 2011 Page 0 . rRio, September 2011 Sergio Boanada Cities, Infrastructure and Major Events
Introduction to Megacities Challenges
Confidential / Siemens Brazil 2011Page 0
.rRio, September 2011
Sergio BoanadaCities, Infrastructure and Major Events
São Paulo- Paulista Avenue - 1900
In 1920 5596 cars and 222 trucks cross São Paulo
streets.240.000 inhabitants
Regular rainfall-Terra da Garoa
Water supply close
Low emission society
Confidential / Siemens Brazil 2011Page 1
Tietê River still clean
Low energy comsumption.
Water supply close to the city
São Paulo- Paulista Avenue - 2011
Great São Paulo with more than 18,6 million inhabitants
25% of the national fleet (seven million cars). One car for each two persons
In 2008 CET reported 226 km oftraffic jams in one
day
Increase of strong rainfall (higher than 30 mm/day) by 50%
Industry and vehicles are responsible for 2.400.000 tons/year
emissions of
Confidential / Siemens Brazil 2011Page 2
38,7 million trips per day. 51% with
individual transportation.
Economic losses R$ 27 billion per
year. (FGV)
High concentrateddemand for energy
30 mm/day) by 50% in the last 50 years(INPE)
Tietê River polluted
emissions of pollutants Water sources
distances increasing
Low efficient buildings
São Paulo population increased 90% in the last 40 years.
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IBGE: 2010
Rio de Janeiro population increased 50% in the last 40 years
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Fonte: CETESBHistórico demográfico do município do Rio de Janeir o. Fonte: IBBGE: 2010
Urbanization
� 2007: for the first time in history, more people live in cities than in rural areas.
� Today 280 million people live in megacities (> 10 million residents)� 2030: 60 % of the world’s population will live in cities� Urban conglomerations contribute a high share of a nation’s economic
output: Tokyo provides 40% of Japan’s GDP, Paris generates 30% of
Megatrends shape our future
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Demographic Change
output: Tokyo provides 40% of Japan’s GDP, Paris generates 30% of France’s GDP.
� Average life expectancy worldwide will increase to 72 years in 2025 from 46.6 years in 1950.
� World population will grow from more than 6 billion now to 8 billion by 2025.
� 95% of the global population growth is taking place in developing countries.
� The 65+ generation will nearly double worldwide by 2030 (from 7% to 12%),
Climate Change
� The average global surface temperature has increased by 0.76° C compared to the 18th century.
� 11 of the 12 years between 1994 and 2005 rank among the 12 warmest since weather observations began.
� Greenhouse gas emissions haven risen dramatically since industrialization. Today we face the highest CO2 concentration in the
Megatrends shape our future
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Globalization
� From 1950 to 2004, the volume of global trade has increased 27.5-fold.
� The number of global players has grown from 17,000 in 1980 to over 70,000 today.
� Ocean freight has increased over the past four decades from less than 6,000 billion ton-miles to over 27,500 billion ton-miles a year.
industrialization. Today we face the highest CO2 concentration in the atmosphere for the past 350,000 years.
Megatrends
� Cities are competing globallyto make their urban areas attractive to live and to invest in
Cities are the growth engines for their national ec onomies
Megatrends imply significant challenges for city decision makers
Globalization & Urbanization� Global players / trade volume increase� 2030: 60% of population in cities� Energy / buildings / mobility / water
infrastructure are key
Sustainable Urban Development
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Compe-titiveness
Environment Qualityof Life
Governance
Demographic Change� 65+ generation will nearly double
by 2030 (from 7% to 12%)� Need for adequate infrastructures
as well as health- and elder care
Climate Change� Cities responsible for ~80% GHG� Need for resource efficiency
and environmental care
� Challenge to balance between competitiveness, environment and quality of life, and to finance infrastructure solutions
Concentration of GHG increased dramatically during the industrialization century.
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Natural Disasters is also increasing over the years N
umbe
r pe
r Y
ear
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Geophysical Events Metrologic Events Hydrologic Events
Global warming- Sea level –Effect in Rio de Janeiro
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Global warming- Climate change- Rain fall São Paulo
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(Source INPE,USP,UNICAMP)
Transportation is responsible for 55% of GHG emissions in São Paulo
2%
31%
1%
5%1% 3% 1%
Energético Amplo
Industrial
Transporte
Comercial
Residencial
Público
Agropecuário
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55%
Não Energético
Fonte: CETESB
Siemens insights into "how to become sustainable", jointly developed with major world cities
Perceptionstudies
Megacity Challenges� Comprehensive analysis based on interviews with over
500 city managers in 25 selected megacities
� Urban infrastructure trends and challenges as well as global best practices
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Comparativestudies
Green City Index (GCI)� Index compares cities across 8 dimensions of environmental sustainability : CO2, energy, buildings, transportation,
waste & land use, water, air, governance
� Started in Europe and Latin America, rollout in Africa and Asia
Implementation studies
Sustainable urban infrastructure series� “How to become a sustainable city" with focus on measures for resource efficiency and CO 2 abatement
� Examples:London, Munich, Yekaterinburg, Dublin, Trondheim, ...
Perception Study:The Sustainable Cities Challenges in Canada
Study by Siemens, David Suzuki Foundation and GlobeScan
Tom RandPractice Lead,
“The political fight of the century will be the pricing of energy.”
“There’s no question we have the capacity to do this intellectually; the question is whether or not our political systems can generate the intelligence that our scientists and engineers can."
73% of experts consider infrastructure renewal & upgrade, transportation issues , and infrastructure
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Practice Lead, Cleantech and Physical Sciences MaRS Discovery District
“At the foundation, we believe that investments to protect and enhance natural capital are urgently needed.”
“The David Suzuki Foundation encourages companies like Siemens Canada to continue their efforts to work towards a sustainable future.”
Peter RobinsonCEODavid Suzuki Foundation
73%
90%
69%
issues , and infrastructure funding to be the three most serious challenges facing their cities
90% of experts rated transportation as having the highest need for infrastructure investmentsover the next five to ten years69% of experts consider their city to be average or below average on adopting sustainable infrastructure solutions
Comparative Studies:How sustainable are cities worldwide?
� Comparison of leading cities in Europe, Latin America,Asia , and Africa in terms of their environmental performance and policies
� Independent research project by the EIU
� Assessment of different environmental categories – e.g. energy, transport, water, waste, buildings,…
� Set of quantitative indicators (measuring the cities’ current performance) and qualitative indicators
How this is achieved?Objective
The Green City Index series will provide answers…
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performance and policies
� Identify strengths and weaknesses of each city, compare performance with peers
current performance) and qualitative indicators (assessing the cities’ aspirations or ambitions to improve their sustainability)
� independent research and advisory firm with more than 40 offices worldwide
� well known for their country analysis on more than 200 markets
� has successfully conducted the European Green City Index
16 quantitative and 14 qualitative indicators in 8 categories were assessed
Green City Index – assessing the environmental impact of world’s major cities*
CO2 intensity
CO2 emissions
CO2 reduction strategy
Sulphur dioxide
OzoneParticulate matter
Nitrogen dioxide
Green action planGreen managementPublic participation
in green policy
CO2Green
GovernanceEnergy consumption
Energy intensity
Renewable energy consumption
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� Prioritization of measures through identification o f categories with performance below average
Congestion reduction policies
Water consumptionWater leakages
Waste water treatmentWater efficiency
and treatment policies
Municipal waste production
Waste reduction policies
Green land use policies
Particulate matterAir quality policies
EGCIEnergy
BuildingsWater
Waste &Land Use
Air
Renewable energy consumption
Clean and efficient energy policies
Transportation
Energy consumption of residential buildings
Energy efficient buildings standards
Energy efficient buildings initiatives
Use of non-car transportSize of non-car transport networkGreen transport promotion
EGCI
*) A research project conducted by the Economist Intelligence Unit, sponsored by Siemens
Overall ranking: Scandinavian countries score best, Copenhagen comes in first overall
Overall
87,3Copenhagen186,7Stockholm284,0Oslo383,3Vienna483,0Amsterdam582,3Zurich679,3Helsinki779,0Berlin878,0Brussels973,2Paris1071,6London11
ScoreCity9,6Oslo19,0Stockholm28,5Zurich38,4Copenhagen48,3Brussels5
CO2
7,8Paris67,6Rome77,5Vienna87,5Madrid97,3London10
ScoreCity8,7Oslo18,7Copenhagen27,8Vienna37,6Stockholm47,1Amsterdam5
Energy
6,9Zurich66,4Rome76,2Brussels85,8Lisbon95,6London10
ScoreCity9,4Berlin19,4Stockholm19,2Oslo39,2Copenhagen49,1Helsinki5
Buildings
9,0Amsterdam69,0Paris78,6Vienna88,4Zurich98,0London10
ScoreCity8,8Stockholm18,4Amsterdam18,3Copenhagen38,0Vienna47,9Oslo5
Transport
7,8Zurich67,5Brussels77,2Bratislava87,1Helsinki9
6,6Budapest10
ScoreCity
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71,6London1167,1Madrid1262,8Vilnius1362,6Rome1459,6Riga1559,0Warsaw1657,6Budapest1757,3Lisbon1856,4Ljubljana1956,1Bratislava2054,0Dublin2153,1Athens2253,0Tallinn2349,8Prague2445,2Istanbul2542,4Zagreb2640,0Belgrade2739,1Bucharest2836,9Sofia2932,3Kiev30
6,6Tallinn10
9,2Amsterdam19,1Vienna29,1Berlin39,1Brussels48,9Copenhagen5
Water
8,9Zurich58,6Madrid78,6London88,6Paris98,4Prague10
ScoreCity9,0Amsterdam18,8Zurich28,7Helsinki38,6Berlin48,6Vienna5
Waste andland use
8,2Oslo68,1Copenhagen78,0Stockholm87,3Vilnius97,3Brussels10
ScoreCity9,4Vilnius19,4Stockholm28,8Helsinki38,6Dublin48,4Copenhagen5
Air quality
8,3Tallinn68,3Riga77,9Berlin87,7Zurich97,6Vienna10
ScoreCity10,0Brussels110,0Copenhagen110,0Helsinki110,0Stockholm19,7Oslo5
EnvironmentalGovernance
9,7Warsaw69,4Paris79,4Vienna79,3Berlin99,1Amsterdam10
ScoreCity
Source: Economist Intelligence Unit: European Green City Index
Curitiba is the leading green city of the Latin Ame rican Green City Index
Ove
rall
Per
form
ance
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Ove
rall
Per
form
ance
November 2010 Latin American Green City Index
More details can be found in the report and on the website ( www.siemens.com/greencityindex )
Implementation Study – Pilot London 1)
� Two-third of all CO2- abating technologies pay back their invest
� ~75% of the abatement potential lies in the hands of individuals / businesses who make technological choices
� The total investment required constitutes less than 1% of London's total economic output until 2025
Results
4.5
2.7Buil -
Insulation
Heating efficiency 150
10.4
1.0
Abatement potential Mt CO2Levers
Average abatement
cost / savingsEUR/t CO2
Additional invest-ment
bn EUR
Findings (time horizon: 2025)
30
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1.4
1.3
0.7
1.2
0.5
0.3
0.2
0.9
3.7
2.1
Trans-port
Buil -dings
Energy
Lighting
Appliances
Other
Higher car efficiency
Biofuels
Hybrid passenger cars
Hybrid bus
Other
Energy mix
CHP
120
190
320
240
0.9
0.8
7.3
2.4
–
5.3
0.5
4.3
1.1
4.0
� Financial prioritization
� Broad technology expertise across infrastructure areas is mandatory to identify suitable combinations of solutions > roadmap
� Sustainability makes city decision makers to think and act as one
Conclusions
1) Siemens Sustainable Urban Infrastructure – London Study, a research project conducted by the McKinsey, sponsored by Siemens
90
40
460
1,700
140
230
Comprehensive future scenarios for our businesses
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Thank you!
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