74789 Sustainable Urban Energy and Emissions Planning Guidebook a guide for cities in east asia and pacific © 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not neces- sarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judge- ment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Cover photo credit: Luciano Mortula, Shutterstock Table of Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi Abbreviations and Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Chapter 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 2: Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Step 1: Create a Vision Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Step 2: Establish Leadership and Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Step 3: Identify Stakeholders and Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Chapter 3: Urban Energy and Emissions Diagnostics . . . . . . . . . . . . . . . . . . . . . . 17 Step 4: Inventory Energy and Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Step 5: Catalog Existing Projects and Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Step 6: Assess Potential Energy and Emissions Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Chapter 4: Goal Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Step 7: Make the Case for SUEEP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Step 8: Establish Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Step 9: Prioritize and Select Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Chapter 5: Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Step 10: Draft the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Step 11: Finalize and Distribute the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Chapter 6: Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Step 12: Develop Content for High-Priority Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Step 13: Improve Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Step 14: Identify Financing Mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Step 15: Roll Out Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Chapter 7: Monitoring and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Step 16: Collect Information on Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Step 17: Publish Status Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 iii CD-ROM SUEEP Toolkit Organizational Toolkit Documents Stakeholder Documents 1 SUEEP Stakeholder Contact Sheet.doc 2 Stakeholder Consultation Record.doc Sample Letters for SUEEP Process 3 Sample SUEEP announcement from the Mayor.doc 4 Sample letter for data request to Electricity Company.doc Project Assessment Template 5 Blank Project Assessment Sheet.doc 6 Example Project Assessment Sheet.doc Sample Consultant Terms of Reference 7 Sample Consultant TORs.doc a Energy and Emissions Inventory Consultant b Project Assessment Consultant c Energy Planner for Scenario Development Consultant d Project Prioritization Consultant e Graphic Design and Report Writing Consultant f Public Relations and Press Release Consultant g Energy Project Development Consultant Technical Toolkit Spreadsheets A Energy Balance and GHG Inventory Spreadsheet.xls B Project Assessment and Prioritization Toolkit.xls iv | Table of Contents Preface This Guidebook builds on the World Bank’s indicative step-by-step guide are intended to sup- report “Energizing Green Cities in Southeast Asia: port cities’ efforts to develop their unique energy 3 City Synthesis Report,� which is a product of and emissions plans. the AusAID-supported Sustainable Urban Energy The World Bank will be using this Guidebook and Emissions Planning (SUEEP) program in the as a tool to support cities in sustainable urban East Asia and Pacific (EAP) region. The SUEEP energy and emissions planning. The Guidebook program seeks to help EAP city governments to will be revised after subsequent phases of the formulate long-term sustainable urban energy and SUEEP process are implemented and the lessons low-carbon development strategies that can be learned are reviewed. We look forward to provid- integrated into existing development plans. The ing support to EAP cities that are keen to embark Guidebook aims to help cities to establish and on the journey toward sustainable development implement a road map for achieving a sustainable for the benefit of future generations. energy future. Its comprehensive framework and v Acknowledgments This Guidebook was produced by the Infrastructure government officials, nongovernmental organiza- Unit of the Department for Sustainable Develop- tion and civil society representatives, and the pri- ment in the East Asia and Pacific Region (EAP) vate sector. We would like to express particular of the World Bank under the guidance of John appreciation and gratitude to municipal officials in Roome, Director, and Vijay Jagannathan, Sector Cebu City, Da Nang, and Surabaya for their active Manager. participation in the pilot studies and numerous The core team, which was led by Dejan Ostojic, comments and suggestions that were invaluable for Energy Sector Leader, EAP, comprised Ranjan K. the development of this Guidebook. Bose, Holly Krambeck, Jeanette Lim, and Yabei The team acknowledges the valuable contribu- Zhang. tions of the Energy Sector Management Assistance The team would like to give special recognition Program (ESMAP, jointly sponsored by the World to the following World Bank staff for their help Bank and the United Nations Development with the peer review process and for providing Program) and Buro Happold Ltd. insightful feedback: Jan Bojo, Feng Liu, Jas Singh, The team would also like to thank Sherrie Monali Ranade, and Om Prakesh Agarwal. The Brown for editing the document, Laura C. Johnson team also wishes to acknowledge Luiz T.A. Maurer for providing the graphic design work, and Laurent of the International Finance Corporation as well as Durix for his contribution on the dissemination David Hawes, Advisor, AusAID, for his contribu- process. tion as external peer reviewer. The team would like to acknowledge the con- Important comments and suggestions were tinued generous support from the government of also received from Dean Cira, Arish Dastur, Franz Australia, which funds the EAP Energy Flagship Gerner, Franz Drees Gross, Ky Hong, Paul Kriss, Report series. This series includes Winds of Change: Nguyet Anh Pham, Dhruva Sahai, Victor Vergara, East Asia’s Sustainable Energy Future (2010); One Xiaodong Wang, Paul Wright, and Yijing Zhong, to Goal, Two Paths: Achieving Universal Access to whom we would like to express our appreciation. Modern Energy in East Asia and the Pacific (2011); During the course of the project, the team gained and the present volumes, Energizing Green Cities considerable knowledge and benefited greatly from in Southeast Asia: 3 City Synthesis Report and a wide range of consultations in Indonesia, the Sustainable Urban Energy and Emissions Planning Philippines, and Vietnam and wishes to thank the Guidebook: A Guide for Cities in East Asia and participants in these consultations, who included Pacific. vi Abbreviations and Acronyms AusAID Australian Agency for International kWh kilowatt-hour Development LED light-emitting diode BRT bus rapid transit LEED Leadership in Energy and BTU British thermal unit Environmental Design CDM Clean Development Mechanism LPG liquefied petroleum gas CER Certified Emission Reduction MMBTU million Btu CFL compact fluorescent lamp MW megawatt CNG compressed natural gas NCCS National Climate Change Secretariat CO2 carbon dioxide NGO nongovernmental organization DOE Designated Operational Entity OECD Organisation for Economic EAP East Asia and Pacific Co-operation and Development EB Executive Board PFC perfluorocarbons ESCO Energy services company PMEB Barcelona Energy Improvement Plan ESMAP Energy Sector Management Assistance PLN Perusahaan Listrik Negara Program (state-owned electricity company) GDP gross domestic product PoA programs of activity GHG greenhouse gas PPP public-private partnership GTZ German Technical Cooperation ROI return on investment HFC hydrofluorocarbons SEAP Sustainable Energy Action Plan ICLEI Local Governments for Sustainability SED Sustainable Energy Development IMCCC Inter-Ministerial Committee on SET Sustainable Energy for Tshwane Climate Change SUEEP Sustainable Urban Energy and IPCC Intergovernmental Panel on Climate Emissions Planning Change toe ton of oil equivalent KPI Key Performance Indicator TRACE Tool for Rapid Assessment of kW kilowatt City Energy vii Chapter 1 Introduction Cities currently account for about two-thirds of the world’s annual energy consumption and about 70 percent of the world’s greenhouse gas (GHG) emissions. In the coming decades, urbanization and income growth in developing coun- tries are expected to push cities’ shares even higher. Urban growth will be particularly notable in Asia, where the urban population is expected to increase by 50 percent between 2000 and 2030, and the urban share of East Asia’s total popu- lation is expected to rise from 46 percent in 2011 to 60 percent by 2030. To this end, the AusAID-supported Sustainable A strong SUEEP process links these aspirations with Urban Energy and Emissions Planning (SUEEP) actionable initiatives to improve energy and emissions program in the East Asia and Pacific region (EAP) performance. It also enables benefits such as local air seeks to help city governments in the EAP region quality improvements, financial savings, new jobs, to formulate long-term sustainable urban energy local economic development, and new partnerships and low-carbon development strategies that can across city agencies and the private sector. be integrated into existing development plans. Green Growth Similarly, the SUEEP process is closely related Why Engage in the to the fundamentals of “green growth,� that is, SUEEP Process? economic growth centered on sustainable use of Today’s rapid population growth coupled with natural resources. Green growth is about making the increase in per capita energy consumption and growth processes resource-efficient, cleaner, and urbanization taking place in the EAP region mean more resilient without necessarily slowing them. that now is the time for government leaders to Many cities around the world are now referenc- take action and “future proof� their cities against ing the green growth model as they develop their an unsustainable energy future. Current baseline economic plans. Fully addressing green growth projections for the region show a startling spike strategies is beyond the scope of this Guidebook, in energy demand on the horizon. However, the but many green growth principles are demon- EAP region’s rapid pace of construction, quickly strated in the SUEEP process and can be consid- shifting transportation sector, and growing indus- ered comprehensively by city authorities. tries give cities the unique opportunity to rein in energy-intensive development and nurture pro- gressive energy and emissions policies that can help prevent the overly energy-dependent develop- ment suffered by many cities around the world. Overarching City Aspirations Energy use and GHG emissions are inextricably linked with how well a city works overall. The SUEEP process is designed so that energy and emissions planning are aligned with overarching city goals, including n improved quality of life, n economic growth, and n environmental protection. 1 2 | Sustainable Urban Energy and Emissions Planning Guidebook About This Guidebook It is unlikely that a city will be able to use just these guidelines to undertake the complex, long- What Is the SUEEP Process? term process of energy planning. Many references The purpose of the SUEEP process is to provide are provided and components of the process that a comprehensive approach to planning to maxi- may require special support from local or interna- mize energy efficiency across city sectors. The tional organizations are identified. intent is to help cities to develop their own ini- tiatives using different mechanisms and to help Why Is This Document Focused on the them to define a governance system for imple- EAP Region? mentation, monitoring, and reporting. These Growing energy demand in EAP is expected to dou- are important outcomes because they improve ble the region’s total carbon dioxide emissions by energy governance in the city and create a com- 2030. EAP is also home to the world’s most rapidly mon platform for collaboration between the city expanding urban population. The region’s growing and donors, civil society, and the private sector. middle class is accelerating the pace of construc- The SUEEP process also provides a framework tion and urban expansion. Energy use efficiency is that helps city governments prepare a series of influenced directly and permanently by urban form investments in energy efficient infrastructure as and density and by investment choices made today well as mobilize “green financing� support. The about urban infrastructure (transportation, water, strategic framework for sustainable urban energy energy) and capital, all of which will have a major development and the pipeline of bankable proj- impact on both energy demand and associated ects are to be identified in the city’s energy and GHG emissions. For example, the recent explosive emissions plan. growth in personal motor vehicles and low-density Core components of an SUEEP process include housing, if untempered, foreshadows future devel- the compilation of data on the city’s energy and opment of high-energy-intensity urban scenarios emissions baseline, involvement of stakehold- as the energy demands of the middle- and upper- ers throughout the process, implementation of income residents increasingly mimic those of their prioritized projects, and monitoring and report- counterparts in the developed world. ing of outcomes. The data are used to set energy This Guidebook recognizes the unique condi- and emissions targets in line with the city’s overall tions of EAP cities and provides information tailored vision and goals. to the region to enable cities to establish the pro- grams and policies that can secure their energy and What Is the Purpose of This Document? emissions futures. This document covers the entire This document is meant to provide a broad frame- planning process, starting with detailed guidance on work and an indicative step-by-step guide to help articulating a vision, establishing energy governance, a city to develop its own energy and emissions and engaging stakeholders—three components of plan. These guidelines are based on experiences sustainable urban energy typically not firmly estab- in three pilot cities (Da Nang, Vietnam; Surabaya, lished in EAP cities. In addition, special emphasis Indonesia; and Cebu City, Philippines) combined is given to the Clean Development Mechanism and with best practices in sustainability planning in alternative financing methodologies relevant to Asia other cities. This document will undoubtedly be because these incentives for green growth are strong revised in the future after subsequent phases of the opportunities for the region. Reference guides from SUEEP process are implemented and the lessons Europe and the United States also provide techni- learned are reviewed. cal guidance for specific challenges of the SUEEP process, and case studies from the EAP region and from around the world provide examples of how other cities have tackled the challenges of sustain- able urban energy planning. CHAPTER 1: introduction | 3 Audience for This Guidebook The city’s role as regulator gives it the most clout This document is targeted at mayors and city plan- to manage energy and GHG on a citywide basis, ning agencies in the EAP region, but it is also rel- but all four of the city’s roles are important in the evant for people working in government who are SUEEP process. For example, the city as energy involved with consumer leads to an approach focused on inter- nal operations, and may include measures such n utility services delivery, as establishing an energy and GHG “champion,� n transportation, devising a sustainable procurement policy, retrofit- n economic development, ting buildings with energy-saving equipment, and n housing, educating employees about energy-saving prac- n poverty alleviation, tices. But for the city’s role as energy producer and n environmental management, n government facilities management, supplier, SUEEP activities might focus on develop- n government procurement, ing efficient generation and distribution technolo- n financial planning, gies, rolling out progressive tariff structures, and n risk assessment, and establishing effective city utility governance struc- n public health. tures for energy efficiency and GHG management. In addition to the city government’s multiple What Is in This Guidebook? internal roles, city leaders also need to work closely The Guidebook outlines the SUEEP process and with the national government—many energy policies, describes a methodology cities can use to develop plans, and programs implemented at the national their own plans. The methodology is divided into level could affect local policies and investments. six main chapters, which are further divided into steps. SUEEP Process Overview How to Use This Guidebook The SUEEP process is divided into six main stages Each chapter and step describes the SUEEP process (see figure 1.1): for the development of an energy and emissions n Commitment plan. A number of examples, tips, case studies, and n Urban Energy and Emissions Diagnostics resources help focus the reader on specific aspects n Goal Setting of the process. Explanations of each of these types n Planning of supplemental information are provided at the n Implementation end of this chapter. n Monitoring and Reporting The processes and steps in this Guidebook are interrelated. Parts of the process sometimes rely The steps within each stage, and the stages them- closely on future or previous steps. See page 5 for selves, overlap on occasion—planning is not a neatly the icons that point the reader to the related steps to linear process. The SUEEP process is meant to give help track associated information in the Guidebook. cities a framework for their energy- and emissions- planning activities, and is not designed to be overly Role of the City and rigid or formulaic. A city should work through the SUEEP Scope process in any way that suits its unique conditions. The city plays a wide range of roles with respect to The process begins with Commitment, the first energy planning, including stage in securing political and stakeholder support n energy consumer, for the energy and emissions plan. A strong com- n energy producer and supplier, mitment from local leaders is essential to the plan’s n regulator, and long-term success and lays the groundwork for n motivator. future action. 4 | Sustainable Urban Energy and Emissions Planning Guidebook Figure 1.1 The Phases and Steps of the SUEEP Process MJ 2 Urban energy and $ CO2 GHG emissions diagnostics 3 Goal setting (CO2) Step 4: Inventory energy and emissions Step 7: Make the case for SUEEP Step 5: Catalog existing projects Step 8: Establish goals and initiatives Step 9: Prioritize and select projects Step 6: Assess potential energy and emissions projects Our City Energy 1 Commitment Plan Step 1: Create a vision statement Step 2: Establish leadership and organization 4 Planning Step 3: Identify stakeholders and links Step 10: Draft the plan Step 11: Finalize and distribute Status Report the plan 6 Monitoring 5 Implementation and reporting Step 12: Develop content for high-priority projects Step 13: Improve policy environment Step 16: Collect information on projects Step 14: Identify �nancing mechanisms Step 17: Publish status report Step 15: Roll out projects During the second stage, Urban Energy and financing, or a hostile policy environment do not Emissions Diagnostics, a city collects the basic derail implementation. data needed to understand its energy and emis- The Monitoring and Reporting stage takes sions baseline and identify areas of activity that are stock of SUEEP progress and identifies components important and have the potential for improvement. of the plan that need readjusting. This stage is cru- The third stage, Goal Setting, involves combin- cial for establishing accountability and for refin- ing the city’s overarching political priorities with the ing the plan to continually improve its approach to findings of the second stage to develop energy and energy efficiency and emissions reduction. emissions goals relevant to the city. Establishing a The Monitoring and Reporting stage provides convincing story about the importance of energy crucial inputs into each successive SUEEP pro- and emissions planning and how the city will benefit cess—which ideally would occur every two to are crucial to the success of the process. three years. After the first iteration of the process, The fourth stage, Planning, brings together all the city will be able to reaffirm or revise its com- the knowledge and thinking developed thus far mitment, recast its vision and goals, if necessary, into a documented plan that clearly expresses the and begin the diagnostics to lay the foundation for city’s strategic focus on energy, the initiatives that its next energy and emissions plan. will help the city achieve its goals, and how prog- ress will be monitored. Multiple Levels of Engagement Implementation is the longest-running stage of The SUEEP process provides a comprehensive the process, and will overlap with future iterations approach to integrating energy efficiency measures because some initiatives from this stage will span into a city’s character, but cities have different lengthy periods. The success of this stage directly capacities, resources, and priorities. To accom- depends on robust planning in the previous stage modate the individuality of cities, three levels of so that inadequate governance structures, a lack of engagement are possible: CHAPTER 1: introduction | 5 A high-level and quick assessment of a city’s n TRACE, see technical assistance opportunities energy efficiency measures. The Tool for 3.2 and 4.2). Rapid Assessment of City Energy (TRACE), n Deeper sectoral engagement in selected areas to developed by the World Bank’s Energy Sector help finance energy projects and to bring tech- Management Assistance Program, offers city nical expertise to projects (for example, public- governments quick diagnoses of energy effi- private partnerships). ciency performance across their systems and n Implementation of all stages of the SUEEP sectors. TRACE prioritizes sectors and pres- process, the success of which will depend on ents a range of potential solutions. The tool a city government’s interest, commitment, and includes embedded implementation guidance ownership. and illustrative case studies (for more details on icons used in this guidebook Case Study: The case studies presented throughout this document illustrate how cities and organizations around the world have implemented either part or all of the SUEEP process. Example: Illustrative examples of key concepts or activities are provided throughout the Guidebook. Examples cover a wide range of information, but generally include information from cities that have already begun developing a component of an energy and emissions plan. Resources: The Guidebook recognizes that some aspects of planning require more detailed implemen- tation guidance. Resources point to various books, articles, references, and websites that provide further detail on a specific aspect of the SUEEP process. Technical Assistance Opportunity: If technical assistance is available for complicated or special- ized aspects of the SUEEP process, the Guidebook points the reader to resources for engaging assistance from external organizations. Tip: The tips are short suggestions to help cities successfully implement the SUEEP process. Tips include lists of considerations, common pitfalls, key success factors, and the like. Toolkit Reference: An Excel-based toolkit supplements Chapter 3: Urban Energy and Emissions Diagnostics and Chapter 5: Planning. The reader will be pointed to the specific tool referenced in the Guidebook. The applicable spreadsheets and templates are contained in the CD-ROM SUEEP Toolkit. 6 | Sustainable Urban Energy and Emissions Planning Guidebook References The Climate Compass Compendium of Measures for Local Climate Change Policy This Guidebook is built on the following documents: Developed by Climate Alliance (the European City Network). Full document and further information Sustainable Urban Energy Planning: A Handbook for available at www.climate-compass.net. Cities and Towns in Developing Countries, 2009 Municipal Energy and Climate Planning: A Guide to Developed by ICLEI (Local Governments for the Process, 2008 Sustainability), UN-Habitat, and UNEP (United Nations Environment Programme). Full document and further Developed by ENOVA / 3-NITY. Full document and information available at www.iclei.org. further information available at www.managenergy.net. How to Develop a Sustainable Energy Action Plan Regional Energy Efficiency Workshop: Handout on (SEAP), 2010 Energy Efficiency Action Plan Approaches and Resource, 2011 Developed by The Covenant of Mayors, European Union. Full document and further information available at Developed by the U.S. Department of Energy National www.eumayors.eu. Renewable Energy Lab for the International Partnership for Energy Efficient Cooperation. Full document Municipal Energy Planning: Guide for Municipal available at http://www.iea.org/work/2011/IPEEC_ Decision Makers and Experts, 2010 WEACT/Day1_SessionI/Benioff.pdf. Developed by EnEffect, the Bulgarian Centre for European Energy Award, 2011 Energy Efficiency, in the framework of the MODEL Project, financed by the European Commission under Developed by European Energy Award. Further informa- the Intelligent Energy - Europe Programme. tion available at www.european-energy-award.org. Full document and further information available at Climate Protection Manual for Cities, 2007 www.energy-cities.eu. Developed by Natural Capitalism Solutions. Energy Planning Guidance: An Introduction, 2009 Further information available at www.climatemanual.org. Developed by the Malmo Municipality, Skane Energy Eco2 Cities Guide. Ecological Cities as Economic Agency, Manchester: Knowledge Capital Eurocities. Cities, 2012 Full document and further information available at www.pepesec.eu. Developed by the World Bank. Full document available at http://siteresources.worldbank.org/ BELIEF: Involve Stakeholders and Citizens in INTURBANDEVELOPMENT/Resources/ 336387- Your Local Energy Policy, 2008 1270074782769/Eco2_Cities_Guide-web.pdf. Developed by Energie-Cities, with the support of Green Infrastructure Finance: Framework Report, 2012 Intelligent Energy Europe, Sustainable Energy Europe. Developed by the World Bank. Full document avail- able at http://www-wds.worldbank.org/external/default/ WDSContentServer/WDSP/IB/2012/05/03/000333038_2 0120503032127/Rendered/PDF/684910PUB0EPI00679 26B09780821395271.pdf. Chapter 2 Commitment Commitment sets the stage for successful energy and emissions management by establishing high-level political buy-in to propel the rest of the process. Establishing political and stakeholder commitment to SUEEP by developing the city’s vision for energy and emissions is important, as is setting up governance structures for development and implementation of the plan. The key to success during the Commitment stage is communication. Step 1 Example 2.1 Create a Vision Statement Vision Statements “A climate resilient global city that is well positioned for Articulating a clear and convincing vision state- green growth.� • Singapore’s National Climate Change Strategy 2012, as quoted in ment for sustainable energy and emissions plan- “Climate Change and Singapore: Challenges. Opportunities. Partnerships� ning sets the political stage for securing buy-in “A greener, greater New York.� from the wide array of stakeholders who play a • New York Mayor, Michael R. Bloomberg, in “PlanNYC 2030,� 2007 part in the success of the SUEEP process. “A clean, green, compact and connected city with an innovative smart economy and with sustainable Developing Your Vision neighbourhoods and communities.� • Dublin City Development Plan, 2011–2017, as quoted in the What Is a Vision Statement? “Dublin City Sustainable Energy Action Plan 2010–2020� A vision is a concise statement that provides a pic- ture of an ideal future condition the city may one day realize. A city’s vision will generally include and utilities that are contributing to a city’s energy a vision statement (see example 2.1) and a lon- and emissions plan. See case studies 2.1 and 2.2. ger, more detailed explanation of why the vision Sustainable energy and emissions programs yield is important and how it relates to the city. New benefits beyond energy management and emissions York’s PlaNYC contains a good example of an mitigation, and these ancillary benefits can enhance SUEEP vision statement in its introduction (http:// the SUEEP vision. Espousing these benefits will help www.nyc.gov/html/planyc2030/html/home/home to gain stakeholder support for the program. .shtml). Economic Development Developing a vision is a political process and A stable and reliable energy supply is essential for should therefore link energy and emissions goals attracting businesses and growing city economies. to the city’s overall political priorities. Energy and emissions initiatives have the potential Why Is an Energy and Emissions Vision to create new, green jobs and to promote the devel- Important? opment of new businesses such as energy services The vision provides the principles underpinning companies. development of the energy and emissions plan. An Environmental Protection inspiring vision statement has the power to engage Improved energy and emissions management stakeholders by clearly communicating the purpose encourages the use of more efficient technologies of the SUEEP process. A vision statement also pro- and best practices that will strengthen environ- vides a clear, ultimate goal that aligns the people, mental protection and contribute to the improve- departments, organizations, academic institutions, ment of citizens’ health. 7 8 | Sustainable Urban Energy and Emissions Planning Guidebook Case Study 2.1: Da Nang, Vietnam Da Nang — the Environmental City As part of its recent development efforts, the city of Da Nang established a vision for future devel- opment that focuses on remediating and celebrating the natural environment. The plan sets forth specific goals that link to the global sustainability agenda and the city’s economic, social, and envi- ronmental aspirations. The three overarching goals leading the plan include n establishing Da Nang as an environmental city, emphasizing land, water, and air quality while providing a safe and healthy environment for people, investors, and domestic and foreign tourists; n preventing environmental pollution and degradation while encouraging environmental rehabilitation; and n facilitating awareness of environmental issues among Da Nang’s residents, international and local organizations, and individuals working in Da Nang. The city developed its vision by collaborating with the German Organization for Technical Cooperation (GTZ) as part of a €1.5 million project implemented between mid-2010 and the end of 2012. For more information on the city and administration of Da Nang, see www.danang.gov.vn. The environmental planning document is not available online, but is published in hard copy by the Da Nang Office of Natural Resources and Environment. Social Equity Demonstrating Value to Society Energy and emissions programs improve city Energy and emissions programs enable cities to energy operations and infrastructure, which are communicate to citizens the added value of energy- often linked to accessibility and reliability of sup- related government activities and clarify the ratio- ply for citizens. nale behind energy governance and rulemaking. City Branding Energy and emissions programs can be used to Creating an Inspiring Vision attract investments through positive city branding. The SUEEP vision should relate to the city’s char- acter as well as its wider environmental, economic, Improving Risk Management social, and energy goals. The vision is critical to The data collection exercise required to develop garnering support and maintaining stakeholder the energy and emissions plan enables the city to motivation to follow through with the energy and better understand its current and projected energy emissions plan in the long term. The elements of use and take action to mitigate specific risks. an inspiring vision are unique to each city and no prescriptive process can be used. See resources 2.1 for guidance. Resources 2.1 Creating a Vision A number of useful resources illustrate the process of developing a vision: n BELIEF is a European project cofinanced by the European Commission under the Intelligent Energy–Europe program. BELIEF has published a document that gives cities guidance on establishing and running an Energy Forum. For further information, see http://www.managenergy.net/resources/916. n Dialogue with the City, Perth, Australia. For more information, see “A Case Study in Deliberative Democracy: Dialogue with the City,� Janette Hartz-Karp, 2005, Journal of Public Deliberation, Vol. 1, No. 1, Article 6. n “Singapore Green Plan 2012� is a good example of a comprehensive vision document. See http://app.mewr.gov.sg/web/ Contents/Contents.aspx?ContId=1342. CHAPTER 2: commitment | 9 Case Study 2.2: North Vancouver, Canada 100 Year Sustainability Vision The City of North Vancouver and the University of British Columbia Design Centre for Sustainability worked together to pre- pare the city’s 100 Year Sustainability Vision: “To be a vibrant, diverse, and highly livable community that provides for the social and economic needs of our community within a carbon neutral environment by the City’s 200th birthday in 2107.� Operating under the themes of livability, sustainability, and resilience, this 100-year plan looks at likely scenarios, challenges, and opportunities in the coming decades, allowing the city to develop more forward-thinking policy planning and to be a bet- ter, stronger advocate for regional, provincial, and federal sustainability legislation. This long-range vision aims to guide the city toward carbon-neutral status by 2107, the city’s 200th anniversary. Source: http://www.cnv.org/c//data/3/541/100%20Year%20Sustainability%20Vision.pdf. Engaging Stakeholders to n consultations and meetings; Create a Vision n requests for feedback through traditional When developing the vision, a city should identify media, for example, newspapers; the energy and emissions plan’s potential stake- n town hall meetings; holders and engage them early on to create buy-in n energy forums; and for the ideas and support for the implementation of n Internet, mobile-based platforms, and texting. sustainable policies. The city’s energy vision can be developed with stakeholders in a number of ways: Step 2 Establish Leadership and Organization A city government’s ability to formulate and imple- highlights agencies and individuals integral to the ment sustainable energy policies will depend on its energy planning process. institutional structure, governance, and oversight function. Influence on stakeholders and specific The City Government’s Roles sectors (for example, waste) provides cities with and Responsibilities the capacity to implement climate change policies Energy efficiency cuts across sectors and extends and action plans that can reduce energy use and through most areas of public service provision GHG emissions. With strong leadership and good and private enterprise. Cities often have the most governance, city governments can encourage an direct line of public communication to residents, inclusive approach in the SUEEP process and gar- businesses, and industries, which means that edu- ner wide support for its policies to tackle climate cation and incentives are most efficiently delivered change. through city governments. These factors, com- bined with the city government’s overall picture of Mapping Institutional city development and its possession of the tools to Structures influence or regulate sectors, means that it should Establishing good energy governance requires be responsible for developing a comprehensive, first understanding how energy issues are dealt sustainable plan for the city. The city govern- with internally and which lines of communica- ment should take the lead in energy and emissions tion are most important. This understanding can planning and in advocating for and implementing be achieved through an institutional map that changes that advance the city’s goals. One of its 10 | Sustainable Urban Energy and Emissions Planning Guidebook responsibilities would thus be to set up an organi- should work closely with city governments. For zational structure for energy planning that includes example, the Ministry of Energy, Ministry of national, regional, and sublocal governments as Transportation, and Ministry of Environment well as the key stakeholders in the SUEEP process. should be included in city-level SUEEP discussions. In development planning, the government must The national government should provide recognize the influence it has in implementing poli- clear guidance to cities about the direction it will cies at the city level. The city government has to take with regard to sustainable development to be fully responsible for sectors it has significant allow cities to plan and, where possible, cooper- influence over (for example, street lighting, water ate in spheres in which national and city goals are supply, and wastewater treatment). For sectors aligned. In these areas, policies implemented by the in which national policies affect the city, the city city and national governments can serve to rein- government should work closely with the national force each other, making efforts to develop the city government to seek support or financing for mea- sustainable and more effective. sures that are aligned with national goals or to ensure that city policies are not negatively affected Establishing Energy by national ones. Governance Adapting City Structures The National Government’s Establishing city structures that support energy Roles and Responsibilities governance helps cities manage their energy plan- Many aspects of energy consumption, such as ning process and increases the likelihood of a suc- power sources, gasoline subsidies, household cessful outcome. See case study 2.3. Good energy appliance energy efficiency standards, and vehicle governance includes fuel efficiency standards, are influenced by national energy policies. The expected increase in energy n an energy and emissions champion; consumption caused by rapid urbanization in the n formal city groups dedicated to the SUEEP EAP region means that national governments will process, for example, a steering committee and have to take the lead in implementing policies working groups; (through regulations or incentives) to promote the n a communications strategy to inform govern- efficient use of energy. However, the efforts of city ment employees of the SUEEP process; and governments will be essential to achieving national n training opportunities with links to local educa- policy goals and targets, so national governments tional institutions where required. Case Study 2.3: barcelona, spain the barcelonA local energy agency The Barcelona Local Energy Agency came into being on May 14, 2002, in response to the European Union’s Green Paper and White Paper on Energy. These documents recognized the role of local authorities in energy administration and the positive value of exchanging experiences. The agency comprises city agencies involved in energy and environmental management, along with local educational institu- tions. The Barcelona Local Energy Agency aims to promote Barcelona as an exemplar city with respect to energy and environ- mental protection. The Energy Agency is the focal point of Barcelona’s Energy Improvement Plan, which sets forth a series of ambitious targets for energy management in the city. For further information, see www.barcelonaenergia.cat. CHAPTER 2: commitment | 11 Case Study 2.4: Singapore Inter-Ministerial Committee on Climate Change Singapore’s Inter-Ministerial Committee on Climate Change (IMCCC) was established in 2007 to oversee interagency coordina- tion on climate change. As of January 2012, the IMCCC was chaired by Mr. Teo Chee Hean, Deputy Prime Minister, Coordinating Minister for National Security and Minister for Home Affairs. The other members of the IMCCC are ministers from the Finance, Trade and Industry, National Development, Environment and Water Resources, Foreign Affairs, and Transport ministries. The IMCCC is supported by an Executive Committee (Exco) comprising the Permanent Secretaries of these ministries. The secretariat is from the National Climate Change Secretariat (NCCS), which was set up as a dedicated agency under the Prime Minister’s Office in July 2010 to coordinate Singapore’s domestic and international policies, plans, and actions on climate change. The Exco oversees the work of three working groups: n The International Negotiations Working Group defines Singapore’s strategy in the international climate change negotiations under the UN Framework Convention on Climate Change. n The Mitigation Working Group establishes the suite of domestic measures to mitigate carbon emissions. Members include the permanent secretaries of ministries such as Trade and Industry, Transport, National Development, Environment and Water Resources, as well as management from statutory boards such as the Energy Market Authority, the National Environment Agency, and the Economic Development Board. n The Resilience Working Group studies Singapore’s vulnerability to the adverse effects of climate change and develops long-term plans to ensure that Singapore is able to cope with climate change. Members include the deputy secretaries of ministries such as National Development, Environment and Water Resources, Finance, and Health as well as management from the Inter-Ministerial Committee Building and Construction Authority, Maritime and Port Authority of on Climate Change Singapore, Energy Market Authority, and the Public Utilities Board, among others. In addition, NCCS uses two platforms, the Climate Change Network IMCCC Executive Committee and the Climate Change Forum, to nurture dialogue on climate change– related issues. The Climate Change Network, which comprises distin- guished members from the media, business, and academic communities, serves as a platform for representatives from the public and private sectors to meet, network, and exchange information on climate change issues. International Mitigation Resilience Negotiations The Climate Change Forum allows government agencies to exchange Working Group Working Group Working Group information, share best practices, and update each other regularly on climate change–related events or forums they host or participate in. Basic Structure of Singapore’s Climate Change Framework City departments such as planning, land use plan- Steering Committee and Working Groups ning, and transportation planning will want to The steering committee is made up of city admin- integrate energy and emissions planning into their istrators and stakeholders. These people provide functions—after all, they will be affected by it. strategic direction and technical support to the Energy and Emissions Champion SUEEP process. See case studies 2.4 and 2.5. Other The energy and emissions champion will be stakeholders (for example, nongovernmental orga- responsible for overseeing the SUEEP process and nizations and representatives of the private sector) making the high-level decisions associated with it. should also be given the opportunity to be part This person should be assigned a team of direct of the steering committee because this will enable reports or should be given the authority to coordi- them to buy into and take ownership of the recom- nate various groups undertaking the SUEEP work. mendations put forward by these committees. The energy and emissions champion must advocate Working groups are made up of skilled people for the benefits of the SUEEP process and under- from the various city departments, public agen- stand the various roles that stakeholders can play cies, and potentially, utilities. Other stakeholders in providing inputs to the planning process. can be included, especially those who would be 12 | Sustainable Urban Energy and Emissions Planning Guidebook educated about what it involves so they have Case Study 2.5: Bangkok, Thailand the opportunity to point out synergies or con- Bangkok’s Steering Committee for flicts that may arise within their areas of work, Global Warming and Bangkok’s Steering Committee for Global Warming and its five n politicians and administrators who are directly working groups have been leading the way to developing a sus- part of the SUEEP process have a broad aware- tainable approach to emissions planning for the city. ness of the issues involved in energy planning As part of the city’s commitment to improved mitigation of cli- and understand their colleagues’ roles, includ- mate change, Bangkok established a global warming steering ing points of contact if questions or issues arise. committee supported by five working groups (WGs): the WG for Improvement of Transportation System, the WG for Promotion of Internal communication can be difficult in large Renewable Energy, the WG for Energy Conservation and Building Retrofit, the WG for Solid Waste and Wastewater Management, organizations such as governments—one of the and the WG for Expansion of Green Areas. These five groups pro- energy champion’s most important responsibili- vide the steering committee with technical and policy advice to ties is to take a strategic approach by establish- support its decisions about sustainability in the city. ing a communications plan early on. There is no Part of the steering committee’s core responsibility is the city’s specific formula for a communications plan, but it 5-Year Action Plan for Global Warming Alleviation. The plan can include actions such as periodic team meetings, includes concrete goals and actions to ensure the goals are met. information sharing, using email lists, and so on. Training Steering Committee A common challenge in the energy and emissions planning process is that skilled personnel and other resources are not available within the city govern- ment. A city can find creative ways to augment its WG for improvement of transportation WG for promotion of WG for energy conservation and capacity, such as internal resourcing adjustments, renewable energy system building retro�t training programs, reaching out to other cities, partnering with academic institutions, or forming WG for solid waste and wastewater WG for expansion of green areas internal groups for workshop activities. management Energy and Emissions Task Force An energy and emissions task force is a small team For more information, see http://lcc.ait.asia/upload/activities/BMA_20May2011.pdf. of dedicated city government staff whose pre- dominant job is to develop the energy and emis- sions plan and manage its implementation. (See most affected by policies arising from the SUEEP figure 2.1 for a possible organizational structure process, as well as those whose support would be for such a task force.) Whether the task force leads required in implementing policies. Working groups the SUEEP process depends on the city’s organiza- are responsible for the technical and production tional structure and specific requirements. The task work required for the SUEEP process. force’s scope of responsibility can be determined based on the city’s needs, but generally will include Internal Communication overseeing and executing data collection and anal- Energy and emissions planning is a multidisci- ysis, ensuring the appropriate stakeholders are plinary exercise and requires coordination and brought into the SUEEP process, taking on city-led communication among numerous internal govern- project development and project implementation, ment agencies so that and monitoring and reporting. This list of respon- n politicians and administrators who are not sibilities is not exhaustive and will be determined directly part of the SUEEP process can be based on the needs of the city. CHAPTER 2: commitment | 13 Figure 2.1. Potential Structure for an Energy and Emissions Task Force Of�ce of the External City Mayor Agencies Boards, Commissions, and Special Bodies External Utilities Traf�c Energy and Emissions Environment Energy Task Force Management Transportation Authority Internal Transportation Operations Urban Planning Working Group Working Group Working Group Utilities Working Renewables Group Working Group Step 3 Identify Stakeholders and Links Engagement of stakeholders underpins the long- Mapping Stakeholders term success of the SUEEP process in several ways. During Step 1, the city identified and made a list First, it improves the quality, effectiveness, and of appropriate stakeholders to provide inputs legitimacy of the plan by allowing a broad consen- to the city’s vision. In Step 2, the city considered sus to be reached. Second, it encourages transpar- which stakeholders (both government and exter- ency and innovation by incorporating inputs from nal) should be part of the steering committees, stakeholders with different perspectives. Finally, working groups, and the energy and emissions it ensures the long-term acceptance, viability, and task force. This mapping of stakeholders will con- support of strategies and measures recommended. tinue throughout the development of the energy See tip 2.1. and emissions plan as city governments identify Given the importance of stakeholder engage- parties who could provide the necessary data and ment to the SUEEP process, a city will find it information. essential to create a methodical and comprehen- Stakeholders can be involved in the SUEEP pro- sive strategy to engage stakeholders and pro- cess to varying degrees (see tip 2.2). When develop- vide sufficient budgets to carry out that strategy. ing an energy and emissions plan, an engagement Stakeholders should be brought on board early in strategy should be devised that determines the the SUEEP process because gaining understanding level of input needed from each stakeholder. This and buy-in up front will help to break down the strategy should identify the key audience, specify barriers that can lead to failed projects. the message to be transmitted and the desired 14 | Sustainable Urban Energy and Emissions Planning Guidebook outcome, and establish a set of indicators to evalu- Tip 2.1 ate the impact of the communication (headcount, Characteristics of Inclusive surveys, website hits, feedback, and the like). In Governance addition, the city’s unique circumstances will have According to the UN Economic and Social Commission for Asia to be considered and the strategy tailored to meet and the Pacific, good governance is characterized by eight traits the needs and desires of the audience. Details on (http://www.unescap.org/huset/gg/governance.htm). key elements of a communication strategy, includ- City leadership should bear these characteristics in mind when ing everything from background notes to case designing the SUEEP governance structure. studies, can be found at The Covenant of Mayors website (www.eumayors.eu). Consensus oriented Accountable Engaging Internal Support Building strong internal political support for the Participatory Transparent SUEEP process is just as important as establishing external support. See case study 2.6. The mayor and SUEEP team must drive the SUEEP process Directed by the Responsive and develop an environment that enables city rule of law government agencies to understand their roles in attaining the city’s goals and vision. Effective and Equitable ef�cient and inclusive Case Study 2.6: Tshwane, South Africa Tip 2.2 Joint Stakeholders understanding stakeholders Partnership Understanding your stakeholders will allow you to Since August 2003, Tshwane has participated in the Sustainable Energy for Environment and develop the best consultation strategy for their varying degrees of Development program, an initiative that focuses influence and interest. A stakeholder map is a useful way to define on building capacity in cities to address energy your city’s different types of stakeholder as the basis for your con- issues. This program aims to promote the inte- sultation strategy. Stakeholders with low levels of influence and gration of sustainable energy and environmental low interest should be kept informed of the SUEEP process but do approaches and practices into all operations of not need to be involved further. However, stakeholders with high the city. levels of influence and strong interest are key players and need As part of the program, Tshwane established to be persistently and actively engaged. Stakeholders that fall in an interdepartmental steering committee to run between can be engaged with varying levels of participation. activities of the Sustainable Energy for Tshwane (SET) program. SET received political support from high-level officials and technical assistance High C Ke from Sustainable Energy Africa. In addition, the D G y pl city brought in a political champion, a lead city ay er government agency, the SET committee, and a Ac s B tiv Non-Conventional Energy Forum to help create Interest in project e co awareness of energy approaches and practices in ns E ul city operations. ta M tio ai n The SET program initially faced challenges from nt ai n in a lack of commitment by some departments that te Ke re did not have decision-making powers to advance st ep the agenda. These challenges were overcome in A fo rm H F through interdepartmental communication, and ed the steering committee’s success has been main- tained through ongoing strategic workshops. Low For more information, see the SET website: http://www.tshwane Low High .gov.za/Services/EnvironmentalManagement/Pages/default.aspx. Influence on project CHAPTER 2: commitment | 15 Engaging internal support involves establish- Engaging External Support ing a suitable institutional structure and building Establishing external support for the SUEEP pro- internal knowledge through communication and cess needs to be undertaken on a larger scale, given personal relationships. the wide spectrum of stakeholders that the city Strategies to attain support for the energy and government will have to engage. Significant time emissions plan include the use of informational and resources will need to be allocated to gaining presentations, email, postings, and gatherings; external support. establishing an internal forum or task team; and Stakeholders have different aspirations, expec- getting government funding for training activities tations, and needs, so a considered approach needs associated with the energy and emissions plan. to be taken on the strategies to be used in engag- See example 2.2 for potential internal and ing them. The strategy will ultimately depend on external stakeholders. the city’s context, but some of the most commonly used strategies include n task and partnership teams, Example 2.2 n meetings with key leaders, Potential Stakeholders n focus group workshops and public meetings, n energy forums, and Internal n media. n City mayor n City-controlled utilities n City planners and zoning committee Partnerships n Department of transportation Bringing in the right external partners helps fill n City procurement office gaps in city capacity and adds valuable knowledge n Department of construction and experience to the SUEEP process. See case n Chamber of Commerce studies 2.7 and 2.8. n City budget office n Department of economic development The right partnerships can be established if you n Civil servants from relevant city carefully consider which external parties can be administrations most helpful and make sure there is no conflict of n Representatives from city neighborhoods interest (for example, a supplier or manufacturer or divisions of energy efficiency equipment could influence the External Government institutions n National and regional politicians n Planning managers Case Study 2.7: london, united Kingdom n Energy utilities in the city n Regional and local energy agencies london Energy Partnership Industry The London Energy Partnership is a crucial element in London’s n Industrial energy experts response to the challenges of climate change, reliability of energy n Consultants supply, and fuel poverty. It aims to transform London into a world- n Business community class city for sustainable energy by bringing together a range of n Trade unions sectors and organizations to deliver energy more effectively. The n Developers partnership is made up of a consortium of businesses, govern- External organizations ment, and public bodies. Acting as an independent organization, n Representatives from cooperatives and it uses the power of partnership to promote sustainable energy foundations solutions in London. n Representatives from relevant interest For example, the London Energy Partnership worked with the organizations London Borough of Dagenham to develop “A Guide to the n Academic institutions Barking Town Centre Energy Action Area,� an implementation n Schools plan that sets out a strategy for reducing carbon emissions from n Nongovernmental organizations new developments. This is one of many partnerships that the The Public London Energy Partnership has engaged in. For more information, n Citizens see their website: www.lep.org.uk. 16 | Sustainable Urban Energy and Emissions Planning Guidebook SUEEP process toward their specific product or Case Study 2.8: Surabaya, Indonesia service). A city needs to consider partnerships with Bappeko people and organizations that may lie outside its Bappeko is the long-term planning agency for the city government usual set of contacts. of Surabaya. The head of the agency reports directly to the mayor, Technical assistance through nongovernmental and the purpose of the agency is to create long-term plans with organizations or development aid projects, capac- the participation of multiple city agencies through wide stake- ity building in conjunction with other cities that holder engagement. This agency creates the integrated land use plan, which requires input from the Department of Transportation have already undertaken the energy planning pro- (traffic, public transportation), the City Water Company, Cleansing cess, and participation in national and international and Park Department (street lighting, waste, wastewater), and a energy and climate change programs are useful number of other city agencies. Bappeko also works externally with local universities, neighborhood leaders, and private sector busi- strategies. In addition to partnering with official nesses and developers. organizations, public-private partnerships have Source: bappeko.surabaya.go.id. been gaining popularity and innovative financing mechanisms are available to harness their potential. Resources Resources Stakeholder Engagement External Resources n Bristol Environment Agency guidance on public participation for Assistance techniques: Petts, Judith, and Barbara Leach. 2000. “Evaluating n World Bank Group Methods for Public Participation: Literature Review,� Bristol n Asian Development Bank Environment Agency. n UN Habitat—Sustainable Urban Development n Partners Foundation for Local Development, Handbook 4, see  Network http://www.fpdl.ro/publications.php?do=training_manuals n ICLEI—Local Governments for Sustainability &id=1. n United States Energy Association Energy n For a comprehensive guidebook produced by the Energy Model Partnership Program Project, see http://www.energymodel.eu/spip.php?rubrique100. n South Asia Regional Initiative for Energy Source: Covenant of Mayors (www.eumayors.eu). n Private energy services companies Chapter 3 Urban Energy and Emissions Diagnostics This chapter summarizes the creation of baseline diagnostics that provide the foundation for deciding which projects to implement. Creating the energy balance and GHG emissions inventory, as well as cataloging past and ongoing energy efficiency and energy planning initiatives, helps a city to identify major trends and opportunities. This information allows a city to assess the potential for energy and emissions reduction projects so its sustainability goals can be achieved. This chapter also refers to the CD-ROM SUEEP Toolkit spreadsheets and templates that explain how to assess the potential of projects to reduce energy and emissions. Suggestions on how to collect the data, do the calculations, and bring the data together as a whole—as well as common pitfalls—are also discussed in this chapter. Step 4 Example 3.1 Inventory Energy Typical Fuel Categories for Energy and Emissions Diagnostics and Emissions Transportation n Diesel and gasoline The energy and emissions baseline inventory pro- n Compressed natural gas (CNG) vides the foundation of data on which the energy n Liquefied petroleum gas (LPG) and emissions plan is based. Major trends and n Electricity (for electric bus or rail) opportunities are quantified during the baseline Industrial inventory and subsequent monitoring inventories. n Electricity The energy and emissions inventory gathers the n Diesel and gasoline technical information and data needed to develop n Natural gas two key components of the energy planning pro- Commercial cess: the Energy Balance and the Greenhouse Gas n Electricity n Natural gas (GHG) Inventory. Residential Methodology for the Baseline n Electricity n Natural gas and LPG Inventory n Other cooking fuels The methodology used in this Guidebook is based on the ICLEI “International Local Government Greenhouse Gas Emissions Analysis Protocol,� which follows principles of the Intergovernmental the C40 Cities Climate Leadership Group (C40; Panel on Climate Change’s (IPCC’s) “2006 a network of 40 of the world’s large cities, plus Guidelines for Greenhouse Gas Inventories� and affiliate cities, committed to implementing mean- has been revised by the authors for application ingful and sustainable local climate-related actions by cities. Further elaboration on the methodology that will help address climate change globally) to can be found in the Covenant of Mayors “How to develop a consistent protocol for determining the Develop a Sustainable Energy Action Plan (SEAP) urban GHG inventory and energy balance. – Guidebook� (http://www.eumayors.eu/IMG/ Typical categories for the inventories are out- pdf/seap_guidelines_en.pdf). The World Resources lined in example 3.1, though some cities may con- Institute and the World Business Council for sume other types of fuel in addition to those in the Sustainable Development are also working with example. 17 18 | Sustainable Urban Energy and Emissions Planning Guidebook The broad methods for calculating the energy bal- aspects of GHG inventory methods (such as life- ance and GHG inventory follow: cycle assessments and embodied energy of materi- als) are not included. For the energy balance Data Collection n Define the city and data boundary Data collection is an iterative process requiring n Define the baseline year multiple requests, clarifications, and approvals n Define the sectors of study before an energy and emissions inventory is com- n Define fuels for each sector pleted. This section provides direction on what n Collect fuel sales and consumption data information to request and where data can usually be found. Further details on calculation methods, For the GHG inventory specific data elements, and conversions can be found in the “Energy Balance and GHG Inventory n Gather the information from the energy balance Spreadsheet� in the CD-ROM SUEEP Toolkit. n Define emissions factors for each fuel The most common source of base energy data n Define sectors whose emissions are not related is information for electricity, gas, and fuel sales by to the use of fuel utilities and national fuel companies. A national n Define emissions factors for nonfuel sectors regulatory body that oversees multiple private n Collect data as defined above for nonfuel energy providers can also be a good source of con- sectors sumption data. Beyond fundamental energy and The inventory should be as complete and accurate fuel consumption data, a variety of contextual an assessment of the city’s energy and emissions as data, such as power plant fuels and regional elec- possible so that short-term and long-term energy trical grid distribution, is required to provide accu- policies can be developed to support the city’s eco- rate emissions factors. nomic development and enhance the quality of life Step 6, during which energy and emissions of its citizens. Because the focus of this Guidebook reduction projects are assessed, requires a much is on supporting cities that have not begun the broader mix of data, such as power plant combus- inventory process, more detailed and complex tion technology, motor vehicle fleet data, street lighting lamp type inventory, and many other behavioral and technological data. So collecting Example 3.2 these types of data while you are collecting the base Typical Sources for Data energy and fuel sales data can save you some time. Transportation: National petroleum company Data Reliability Department of Transportation Data collected for all sectors should use the same physical boundaries, calendar year, and collection Industrial: Electrical utility, industrial customers methodology to provide the level of accuracy and Natural gas utility, industrial customers reliability required to meet global standards for National petroleum company energy planning and GHG inventories. This allows Commercial: Electrical utility, commercial customers comparability between cities and better sharing Natural gas utility, commercial customers of data and projects, in addition to consistency (Natural gas, LPG, liquified natural gas between your own inventory years. [LNG]) Data Collection Process Residential: Electrical utility, residential customers To collect energy data, you will need diligence and Natural gas utility, residential customers perseverance because there are multiple sources of (Natural gas, LPG, LNG) data and they are often not in the format, units, City: Electrical utility, city as customer year, or boundary definition needed for an inven- Natural gas utility, city as customer tory. You can ease the data collection process by (Natural gas, LPG, LNG) developing relationships with key individuals in CHAPTER 3: Urban Energy and Emissions Diagnosis | 19 each organization (see example 3.2 on typical organizations) to minimize the number of contacts Technical Assistance Opportunity 3.1 (or even narrow it down to a single point of con- Energy and Emissions Data Collection tact within each organization) required to collect Technical consultants who specialize in the energy field can the variety of information needed. Organizations be hired to collect and analyze the data for the energy balance and often ask for an initial meeting at which you will GHG inventory. Although specialists can calculate the energy bal- make the data request before they will begin to ance in their respective sectors, it is important for one individual to collate the base consumption and sales data and be in charge of collecting and synthesizing all data. The consultant who conducts the first inventory may train a member of the energy the contextual data. A follow-up meeting is often task force to do future inventories. Some cities eventually employ necessary to confirm the context, boundary, detail, full-time staff to do the annual energy balance and GHG inventory. and subtleties of the data provided. It is impor- tant that you pin down any areas of uncertainty, for example, physical boundaries, calendar year, from these organizations are often more aware of and collection methodology, to make sure that the how to gain approvals from within the organization data are reliable. A letter from the mayor’s office is and know the right people to approach to collect and often helpful for explaining the purpose of the data summarize the requested data. On top of this, utilities requests and to reassure the data provider that the and departments who provide energy and emissions information will be kept confidential and will not data may also be the entities that will eventually roll be used for any purpose other than for energy out energy projects. In light of these factors, engaging planning and policies. stakeholders is critical. Boundary Issues Clear and consistent boundary definitions for the The Energy Balance The energy balance illustrates the flow of energy collected data will provide more accurate con- into and out of a city. It is presented in a constant sumption and emissions totals. Cities often choose unit, typically joules (megajoules, MJ; gigajoules, the mayoral geopolitical jurisdiction as the bound- GJ; terajoules, TJ; or petajoules, PJ), even though ary for the energy and emissions plan. However, the data are generally collected in the same units in boundaries should be extended given that local which the energy is sold (kilowatt-hours [kWh] of governments are responsible for policies of subna- electricity, liters of gasoline, cubic meters of lique- tional regions that influence the flow of energy and fied petroleum gas [LPG], and so on). So you will materials and because a city’s energy consumption need to convert energy sales data into a consistent is affected by national and regional decisions and unit of energy to be able to compare the scale of policies. Although this approach is preferred, col- energy provided by each fuel type. lecting data on cross-boundary flows of vehicles, An energy balance shows energy by primary fuels, and energy can be difficult for cities because fuel, purchased energy, and useful energy, as well vehicle fuel purchases occur both inside and out- as wasted energy from conversion processes, and side city boundaries. It is recommended that each is often summarized in a Sankey diagram as shown city that embarks upon a GHG inventory process for Surabaya, Indonesia, in figure 3.1. identify the most reliable data source for each cause The energy balance helps to identify the largest of cross-boundary emissions and use these sources energy users, which will help in the goal setting and consistently for every GHG inventory update. the prioritization of projects in Step 9. The energy Stakeholder Engagement balance also shows the primary fuel types and will Most data come from stakeholders outside the city inform the GHG inventory calculations. government’s authority, such as the electrical utility and the natural gas utility. Bringing these stakehold- Calculating the Energy Balance ers into a technical working group or even the energy The energy balance calculation is summarized task force to gain their buy-in and understanding of below. This process requires familiarity with tech- the context of the data requests can be helpful. (See nical energy unit conversions and an understand- technical assistance opportunity 3.1.) Representatives ing of site energy versus source energy (see tip 3.1). 20 | Sustainable Urban Energy and Emissions Planning Guidebook Figure 3.1. energy balance sankey diagram Commercial Electrical Power Electrical Power 5.5 PJ Oil Generation Losses Natural Gas 0.03 PJ 34.9 PJ 43.4 PJ Residential Electrical Power 7.5 PJ LPG 4.3 PJ Electrical Power Natural Gas 0.01 PJ Distribution Losses 2.3 PJ Public Electrical Power 1.6 PJ Coal 31.1 PJ Electrical Power Gasoline and diesel 0.05 PJ Delivered to Substations 26.8 PJ Industrial Electrical Power 10.6 PJ Natural Gas 2.2 PJ Nat. gas Losses LPG 0.9 PJ Gasoline and diesel 0.7 PJ 0.8 PJ Natural Gas Natural Gas 3.0 PJ 7.3 PJ LPG LPG 6.5 PJ 6.5 PJ LPG Losses 1.3 PJ Transportation Diesel Gasoline and Diesel 5.8 PJ 10.0 PJ Gasoline and Diesel 27.4 PJ Gasoline 17.4 PJ Gasoline and Diesel Combustion Losses 21.1 PJ Primary Energy Electrical Power Energy Supplied Electrical Power Fuel Combustion Productive Energy Supply Delivered to Substations to the City Distribution Losses Losses Used by Customers 107.3 PJ 26.8 PJ 62.4 PJ 2.3 PJ 23.2 PJ 39.2 PJ 1. Determine all significant fuel types for each A Sankey diagram illustrates a city’s energy end-use sector (example 3.1). balance and gives a snapshot of the largest energy 2. Collect fuel sales data for each fuel type for consumers and the city’s primary fuels. The dia- each end use (example 3.1). gram reads from left to right, with the width of 3. Convert fuel sales data into a common energy each bar showing the amount of energy for that unit (MJ, TJ) (see tip 3.2). end use or fuel type. Energy coming into the city 4. Calculate total site energy consumption by fuel or into power plants as primary source energy is type. shown on the left and is typically categorized by 5. Calculate (or estimate) primary source energy fuel type. The bars flow to the right and show how fuel consumption for electricity consumption fuel is used. For example, some natural gas flows (see tip 3.1). directly to industrial customers for useful heating 6. Calculate total primary fuel type energy con- energy, but some natural gas flows and merges into sumption. the primary input energy for electrical power gen- eration, along with coal and oil. This process is elaborated in the “Energy Balance Energy conversion in the thermodynamic cycle and GHG Inventory Spreadsheet� in the CD-ROM of electrical power generation, resulting in the loss SUEEP Toolkit. See toolkit reference 3.1. of 60–70 percent of the energy value of primary See case study 3.1 for one city’s experience fuel, is also illustrated on the top left of the diagram. determining its energy balance. CHAPTER 3: Urban Energy and Emissions Diagnosis | 21 Tip 3.1 Toolkit Reference 3.1 Site Energy versus Source Energy Balance and GHG Energy Inventory Spreadsheet One of the most common mistakes The energy balance spreadsheet lays out the step-by- in energy planning is disregarding the differ- step process for calculating the energy balance and ences between source energy and site energy. includes sample calculations for converting input data into energy Site energy is electricity or fuel consumed within balance flows in a single common unit (MJ). Typical conversion a property boundary or vehicle. Source energy is factors for major fuel types are provided. A template for the cal- the initial fuel consumed to produce either elec- culation method used to determine the values for the Sankey dia- tricity or transportation fuel. Typically, three units gram for Surabaya (figure 3.1) is also included in the spreadsheet. of source energy are consumed to produce one The spreadsheet requires some limited knowledge of energy units, unit of site electricity for electricity generated by conversions, and how to use a spreadsheet program, but other- fossil fuels. So 1 MJ of site electricity is not equiva- wise, it provides an easy-to-use way to do the complex calcula- lent to 1 MJ of transportation fuel because it takes tions for the Sankey diagram. 3 MJ of source fossil fuel energy to generate 1 MJ of site electricity energy. For example, Electricity consumption in kWh, or Tip 3.2 energy conversions Coal consumption in tons (t). Another common mistake in energy Emissions Factor = Factor based on the carbon planning occurs when the original data content of the fuel or material. for energy sold, which comes in a wide variety of For example, units, is converted into a common unit such as MJ. Carbon content of electricity in kgCO2/kWh, or Fuel sales data may be in units of volume (liters of Carbon content of coal in kgCO2/ton coal. gasoline, cubic meters of natural gas, and so on) or units of weight (tons of LPG, or kilograms [kg] of coal). Average energy densities must be used to convert volumetric or weight-based units (MJ Case Study 3.1: surabaya, indonesia per liter of gasoline, MJ per kg of coal) into units Surabaya Energy Balance 2010 of energy (MJ, GJ, TJ). Converting from kWh or thousands of British thermal units (Btu) to MJ is The city of Surabaya developed an energy balance and GHG inven- also necessary. These conversions require care and tory in 2010 with the support of the World Bank under the first phase of the SUEEP process. Bappeko, an agency that develops attention to detail—particularly if data are pro- long-term plans for the city, was appointed to be the lead agency. vided in monthly or daily rates—to ensure that the A local external consultant was hired to support the data collec- energy balance is in MJ for the entire year. tion across city agencies and utilities. These agencies contributed data to the Surabaya energy balance and GHG inventory: Surabaya Department of Transportation The GHG Inventory n n PERTAMINA—state oil company A GHG inventory is a snapshot of all of the GHGs n DKP—Cleansing and Park Department emitted by a city in a year. It includes emissions n PLN—state electricity utility n Department of Finance from fossil fuel combustion in electrical power n PDAM—regional drinking water utility plants, cars, and trucks as well as other emitted n PGN—state-owned natural gas company GHGs such as methane and hydrofluorocarbons. In addition to input from the city agencies, the Japan International The governing equation for calculating a GHG Cooperation Agency performed a transportation study in 2009. inventory is below. Each relevant activity is calcu- Figure 3.1 summarizes Surabaya’s energy balance. It shows that lated separately. electricity is generated mainly from oil and coal, as well as a small amount of natural gas. It also shows that the predominant trans- Activity Data × Emissions Factor = Emissions portation fuels are gasoline and diesel. Source: http://www.iea.org/work/2011/IPEEC_WEACT/Day3_SessionV/Ostojic.pdf. Activity Data = fuel or material consumption. 22 | Sustainable Urban Energy and Emissions Planning Guidebook Activities include the combustion of fossil fuels, Toolkit Reference 3.2 emission of methane from solid waste landfills or Energy Balance and GHG the sanitary wastewater treatment processes, emis- Inventory Calculator sion of hydrofluorocarbons from industrial activi- The GHG inventory calculator provides a step-by-step ties, and others. Emissions factors can be found in process for determining the city’s annual carbon emis- the UN Framework Convention on Climate Change sions following ICLEI’s industry standards for an urban GHG inven- or the IPCC 2006 Protocol for GHG Inventory. If tory. This method relies on the data gathering and calculations in sufficient data are available, the actual emissions the energy balance calculator, so these two operations must be factor for the mix of electricity generation for a city done consecutively. The output from this spreadsheet provides the city’s total CO2 equivalent emissions by end use and by fuel type. can be calculated. The Energy Balance and GHG Inventory Spreadsheet in the CD-ROM SUEEP Toolkit provides a framework for the required data inputs. See toolkit reference 3.2. An important aspect of the GHG inventory is Tip 3.3 Co2 equivalent identifying Scope 1, Scope 2, and Scope 3 emis- sions, which are outlined below: Another commonly overlooked technical aspect of a GHG inventory is the common unit of “CO2 equivalent.� Many Scope 1. GHG emissions that occur within the gases can cause a heat-trapping phenomenon similar to that physical boundary established for the inventory. caused by CO2, but they have varying degrees of what is called “global warming potential� (GWP). CO2 is the most common GHG, so all other GHGs are converted to the common unit of CO2 Scope 2. Indirect emissions that occur outside the equivalent. city boundary as a result of activities that occur The GHG inventory should include measurement for the follow- within the city, limited to electricity consumption, ing gases according to the UN Framework Convention on Climate district steam, and district cooling. Change: GHG Formula GWP Scope 3. Other indirect emissions and embod- Carbon dioxide CO2 1 ied emissions that occur outside the city bound- ary as a result of activities conducted by the city, Methane CH4 25 Nitrous oxide N2O 298 Sulphur hexafluoride SF6 22,800 Case Study 3.2: seoul, republic of korea Hydrofluorocarbons (HFCs) GHG inventory 2008 HFC-23 CHF3 14,800 In 2008, Seoul undertook a citywide GHG inventory HFC-32 CH2F2 675 exercise for “planning to realize all-around green innovation ranging from building, urban planning and transportation to daily life by 2030 to become Perfluorocarbons (PFCs) a city with world-leading green competitiveness.� Perfluoromethane CF4 7,390 The energy and GHG information has been used to Perfluoroethane C2F6 12,200 develop better building codes and a more energy efficient transportation network, to justify the Perfluoropropane C3F8 8,830 increase in the share of renewable energy sources, Perfluorobutane C4F10 8,860 and to streamline the waste collection operations Perfluorocyclobutane C4F8 10,300 of the city. Source: “CDP Cities 2011: Global Report on C40 Cities.� http:// Perfluoropentane C5F12 13,300 c40citieslive.squarespace.com/storage/CDP%20Cities%20 Perfluorohexane C6F14 9,300 2011%20Global%20Report.pdf. CHAPTER 3: Urban Energy and Emissions Diagnosis | 23 including electrical transmission and distribution its GHG inventory. The actual single data point of losses; solid waste disposal; waste incineration; emissions in one year does not tell a story or show wastewater handling; aviation and marine activi- levels of performance. This datum becomes more ties; and embodied emissions in fuels, construction relevant and meaningful only if it can be compared materials, water, imported food, and upstream of with data for previous years. power plants (such as emissions from fossil fuel Benchmarking Results extraction). Comparing energy and emissions results with other cities’ results or global averages can provide signifi- Output from a GHG Inventory cant insights into how a city uses energy and how The result of a GHG inventory is a city’s total it stacks up against its peers or against other cities annual GHG emissions in tons of CO2 equivalent that governments aspire to emulate. Benchmarking (see tip 3.3 for an explanation of CO2 equivalent). can be based on citywide metrics such as tons of The inventory results provide a breakdown of the CO2 per capita or tons of CO2 per unit of GDP total emissions into end-use sectors, fuel types, and to show macro trends and comparisons. A sectoral month-by-month or even daily data (example 3.3). comparison of energy use and emissions across cit- See case study 3.2 for how Seoul used the data from ies is a useful indicator of the efficiency of a city’s Example 3.3 Typical Results from a GHG Inventory The total emissions for a city are often broken down by end-use sectors and fuels as shown in the figures below. 10 10 9 9 8 8 Other sources Million tons of CO2 equivalent Solid waste 7 Wastewater gas 7 emissions Water and wastewater Solid waste gas 6 Commercial 6 emissions Transportation Electricity 5 5 LPG Residential Natural gas Industry 4 Diesel 4 Gasoline Oil 3 3 Coal 2 2 1 1 0 0 End Use Fuel Source 24 | Sustainable Urban Energy and Emissions Planning Guidebook Technical Assistance Opportunity 3.2 Resources 3.1 trace benchmarking tool Energy and Emissions Diagnostics The TRACE online web tool developed by the World Bank Energy Sector Management Assistance Program group allows These resources can be consulted for further infor- a city to enter its energy consumption data and see how it ranks mation on diagnostics. against a database of more than 64 cities and 28 Key Performance Indicators. This database is based on publicly reported energy con- n 2009 ICLEI International Local Government sumption figures and GHG inventory data along with background GHG Emissions Analysis Protocol (IEAP) (http:// www.iclei.org/index.php?id=ghgprotocol). data such as population, GDP, and so forth. A wide variety of cities n 2006 IPCC Guidelines for National Greenhouse from around the world are included, which allows comparisons Gas Inventories (http://www.ipcc-nggip.iges. to be made with cities of similar size, region, level of develop- or.jp/public/2006gl/index.html). ment, and institutions. Information on larger, more developed cit- n Covenant of Mayors, “How to Write a Sustain- ies that a city may aspire to emulate is also included in TRACE. able Urban Energy Plan, Part II, Baseline emis- Benchmarking provides an important snapshot of sectors that are sions inventory� (http://www.eumayors.eu/ performing well and of those that have the opportunity to improve IMG/pdf/004_ Part_II.pdf). and thereby change the course of a city’s energy consumption. Source: TRACE, http://www.esmap.org/esmap/node/. Benchmarking can be done against peer cities, or against cities that have been working to reduce sectors in energy use and emissions. In Step 16: carbon emissions for many years or have higher Collect Information on Projects, results from indi- levels of economic development (see technical assis- vidual energy and emissions reduction projects can tance opportunity 3.2). The guidance in resources be compared with the results of similar projects in 3.1 provides additional detail on energy diagnostics. other cities. Step 5 Catalog Existing Projects and Initiatives Once the inventories of energy consumption and Survey Stakeholders GHG emissions are complete, you will want to The best way to catalog past energy projects is catalog current and past energy initiatives to learn through face-to-face interviews. The energy task about the factors that enabled past projects to suc- force should interview relevant stakeholder agen- ceed and the hurdles they faced. This step is an cies—including those employees who have an important learning exercise for SUEEP leadership interest in energy issues as well as those who have and for the energy task force. They will be able to been at the agencies for many years and have built take actions to build on current and past successes, up stores of institutional knowledge about past address roadblocks in future projects, and avoid projects. Interviewing multiple representatives the mistakes made in the past. But care should be within an agency is useful because departments taken not to discount a project because it was not often work independently and may not be aware implemented or not successful; circumstances may of projects undertaken by other departments in the have changed. same agency. CHAPTER 3: Urban Energy and Emissions Diagnosis | 25 Stakeholders should be asked the following The CD-ROM Project Assessment and questions to get a sense of the context and circum- Prioritization Toolkit (Tab 3) outlines assessments stances they faced when previous projects were of 78 typical energy and emissions reduction proj- implemented. These questions will help you find ects undertaken by cities. These assessments are out the critical success factors or failure points: based on an understanding of urban energy issues common in the EAP region and on experiences a) Which agency led the project? with similar projects implemented around the b) Who were the stakeholders? world. If a project that your city has undertaken is c) Which stakeholders should have been involved not among the 78 projects, it can be assessed and but were not? considered for inclusion as part of your energy and d) How much time was spent implementing the emissions plan. project? e) How much money was spent on the project? Local Energy Initiatives f) Was funding sufficient? Virtually all cities have undertaken energy effi- g) What data on the impact of the project were ciency projects of some sort (for example, street collected? lighting lamp replacement and vehicle emissions h) Did social or cultural norms prevent uptake of standards and testing). To learn the most about the project? If so, what were they? these past and current projects, identify individuals i) Which stakeholders benefited the most and who linked to every sector that potentially has under- lost out from the project? taken energy projects, such as transportation, In addition to interviews, gather project implemen- buildings, industry, and city operations. If your city tation plans, status reports, and any other project already has dedicated energy teams or energy effi- documentation you can find. Collate and organize it ciency champions in each department, identifying so the information will be useful for future projects. the people who will be able to provide a complete list of projects undertaken by their departments Extract the Lessons Learned will make the process of collating the information After collecting the data and identifying factors on projects much more efficient. that contributed to the success or failure of past projects, the energy task force should summarize National Energy Initiatives its findings and highlight both positive and nega- National initiatives are generally broader and tive themes. Examples of lessons learned include affect cities at various levels. Examples of national the benefits of a thorough cost-benefit analysis; the initiatives include subsidies on gasoline, diesel, or importance of following city procurement guide- electricity, and nationally funded energy research lines; the delays caused by insufficient staff time projects on renewable energy, transportation, or allocated to implementing the project; and the dis- buildings energy efficiency (see case study 3.3). incentives arising from the creation of too much Although a city may not be able to replicate or documentation to prove that energy efficiency directly improve a national program, it may be equipment was actually installed. able to participate in the program, expand imple- mentation in its jurisdiction, or even obtain fund- Document in Project ing. Thus, city governments need to be aware of Assessment Sheet national policies on urban energy. City programs The results of the interviews should be documented can build upon national ones and can even set a in the Project Assessment Sheet (discussed in detail higher regulatory standard. in Step 6, and available in the CD-ROM SUEEP Some countries are taking on carbon emissions Toolkit), which will contribute to the prioritization reduction targets following the Kyoto Protocol and and development of all projects in Step 9. the outcomes of recent Conference of the Parties summits, such as Durban 2011. Such actions can help support Step 7: Make the Case for SUEEP. 26 | Sustainable Urban Energy and Emissions Planning Guidebook Case Study 3.3: Quezon City, Philippines National Standards that Influence the City During a 2009 World Bank mission to test the TRACE audit tool, a GHG inventory and energy initiative stock-taking were per- formed in Quezon City. A wide variety of energy initiatives developed by numerous stakeholders were discovered during the process: n A national vehicle emissions standard was imposed by the Department of Transportation. n A national building code existed and was to become the baseline for a local green building guideline. n A national refrigerator energy code required energy consumption standards for all imported refrigerators. n National funding was used for the expansion of a bus rapid transit line through Quezon City. n A national gasoline subsidy still existed, but was gradually being reduced. n National goals and funding for street lighting expansion for new and existing streets applied. Source: “Quezon City Energy Efficiency Report 2010,� World Bank Energy Efficient Cities Initiative—Rapid Assessment Framework (Washington). Non-Energy Initiatives those policies for the use of high-capacity public Many of the drivers of energy consumption growth transportation versus personal cars. Initiatives to may not be directly related to energy, for example, increase the safety and comfort of walking and bik- land use planning, transportation planning, and ing should be inventoried. This exercise should be cultural habits and norms. Many projects and poli- undertaken for all sectors, but the focus should be cies pursued by cities and countries have significant on the transportation sector because it often has impacts on the future energy path of a city. It is the most energy implications from non-energy- important for a city to assess its land use planning related policies. and transportation policies and the implications of Step 6 Assess Potential Energy and Emissions Projects This step creates an inventory of the qualities of been identified in Step 8: Establish Goals, can the potential energy projects and ranks the projects projects be prioritized in Step 9. The assessment based on their relevance to city energy goals and does not require detailed technical development, likely performance levels. This is a diagnostic exer- budgeting, and research. Each project just needs to cise, not a decision step or a prioritization step, be put into general categories. which are discussed in Step 9. In this step, projects The projects and assessments provided in this need to be carefully examined to ensure the assess- Guidebook are meant to be a starting point, and ment is accurate for your city’s energy and emis- not a definitive analysis of projects for all cities. sions plan. Details about each pre-developed project can be changed to suit your city, and the pre-set assess- The Purpose of the Assessment ment fields that define project characteristics can The purpose of the assessment is to help you to be revised to be more specific and relevant for your start building your list of high-priority projects city’s energy and emissions plan. See toolkit refer- from a long and varied list of possible projects. ence 3.3. The assessment provides the input data required Brief descriptions of each assessment category for Step 9: Prioritize and Select Projects. Only after follow. (See example 3.4 and technical assistance the projects’ characteristics (energy savings poten- opportunity 3.3.) These fields provide criteria to be tial, implementation cost, level of city control, and evaluated according to the goals that will be estab- so forth) have been determined and goals have lished in Step 8. CHAPTER 3: Urban Energy and Emissions Diagnosis | 27 Project Description Describe the project briefly to give a general under- Technical Assistance Opportunity 3.3 standing of what changes the project will make to project assessment consultant reduce or change the path of energy consumption Highly specialized knowledge is required to assess the in the city. wide variety of energy efficiency and energy reduction projects referenced in this Guidebook. Few cities have in-house staff with Sector knowledge of the cost, difficulty, and potential impact to be able Assign the project to one of the five major sectoral to complete the project assessments necessary for the projects to categories. Some projects may seem to fall into be prioritized. Universities, energy consultants, or energy-focused more than one category (for example, an industrial NGOs can often be tapped to help make the preliminary assess- truck emissions reduction project). In these cases, ments suggested in this step of the SUEEP process. it is helpful to choose the sector in which imple- mentation is likely to happen. For industrial truck It only needs to show low, medium, or high energy emissions, the “industry� sector would be used savings. The values in the Project Assessment Sheet instead of the “transportation� sector because the are recommended, but can be revised based on project would be rolled out by working directly local experience or issues local to the city. Choose with industrial businesses. a time horizon for the savings that includes full Project Type implementation (for example, two to five years), Assign the project to one of the four types of proj- but take care to use the same time horizon for the ect categories. This will give the city a sense of the cost of the project. Not all projects will use the expertise required to develop the project. same time horizon. Some projects can be com- pleted in one year while others will need 10 years Energy Savings Potential of planning and implementation to achieve their Estimate the project’s potential annual energy sav- full energy savings potential. ings by referencing case studies similar to the par- ticular project, or by using a calculation method Fuel Type Savings in which end-use energy consumption (residential Identify the type of fuel that is reduced or affected lighting energy in the city, for instance) is multi- by the project. For electricity savings, mark grid plied by the capture rate of the project (households electricity, not the underlying primary fuel for per year) and efficiency savings per household (30 power plants in the region. percent lighting savings). An estimate of potential GHG Savings Potential annual energy savings does not need to be precise. Using emissions factors from the GHG inventory spreadsheet in the CD-ROM SUEEP Toolkit, mul- tiply the energy or fuel savings estimated in the Toolkit Reference 3.3 previous categories by the fuel emissions factor. Project Assessment and The estimate for this category does not need to be Prioritization Toolkit precise because this step is only meant to categorize The Project Assessment Toolkit in the the savings potential as low, medium, or high so as CD-ROM SUEEP Toolkit contains a list of to rank the potential projects. 78 common energy projects and an initial rank- ing of the assessment categories. It also includes Implementation Cost calculation methods to help estimate energy, cost, Mark the cost to implement the project. The esti- and GHG savings potential. All projects in the mate should include costs incurred by both the toolkit can be seen at once, and each project has public and private sectors where applicable. An examples and case studies for further reference. estimate of potential annual costs incurred does This list is meant to be a starting point—be pre- not need to be precise. It only needs to show low, pared to add projects, adjust them, and make dif- ferent calculations. medium, or high costs. 28 | Sustainable Urban Energy and Emissions Planning Guidebook Example 3.4 Project Assessment Sheet Project Name: Street Lighting Audit and Retrofit Project Sector: Project description: Existing public lighting is often highly inefficient, using high q Transportation energy consumption technologies, and lacking strategic coordination of placement q Industry and operation. An audit of the existing stock and an assessment of operations and maintenance will help identify appropriate measures to significantly increase energy q Commercial efficiency. Interventions that include new technologies and retrofitting will also q Residential increase the design life of luminaires, which reduces both the requirements and costs of q City maintenance. The aim of this recommendation is to enable a comprehensive assessment of the lighting system to identify areas for improvement across the network. Project type: Energy savings Fuel type savings: GHG savings potential: q Incentive project potential: q Grid electricity q High q High ( >10,000 tons/yr) q Major project q Motor gasoline/diesel ( >10,000,000 MWh/yr) q Medium q Organizational q Natural gas q Medium (1,000–10,000 tons/yr) development project (10,000–10,000,000 MWh/yr) q LPG q Low q Policy project q Low ( <1,000 tons/yr) ( <10,000 MWh/yr) Implemention cost: Estimated cost Recipient of savings: q High savings: q City government ( >$5,000,000/yr) q High q City residents ( >$100,000/yr) q Medium q Energy services company ($100,000–$5,000,000/yr) q Medium ($10,000–$100,000/yr) q Utility or private entity q Low ( <$100,000/yr) q Low ( <$10,000/yr) Stakeholders: Likelihood of funding: Ease of • Cleansing and Park Department q High implementation: • Department of Transportation q Easy q Medium • PLN, National Electricity Company q Medium q Low • Leaders of barangay communities without street lighting q Hard • Mayor’s office Potential funding: • Annual budget for Cleansing and Park Department • Annual budget for Department of Transportation Timing of project Level of city control: implementation: • Mayor’s office discretionary budget q High: q <1 year Budget, regulatory • Donor funded loan program for energy efficiency q 1–10 years q Medium: • Clean Development Mechanism Regional stakeholder q >10 years q Low: Previous attempts at similar projects: National stakeholder • None CHAPTER 3: Urban Energy and Emissions Diagnosis | 29 Estimated Cost Savings Timing of Project Implementation Based on the energy savings potential, energy saved Estimate the length of time required to design, for that sector should be multiplied by the cost implement, and collect data on the effectiveness per unit of energy. Keep in mind that the price of of each project. This is not meant to be a specific electricity for city governments is often lower than time schedule, but a way to identify each project commercial rates, and diesel fuel purchased by large as either short or long term. In the prioritization industries can sometimes be purchased at bulk rates process you will want to have a mix of quick-win that are lower than rates at public gas stations. and long-term projects. Recipient of Savings Level of City Control Mark the recipient of savings from the project. Identify whether the project lies within the juris- This is a critical aspect of energy planning and is diction of the city government, or if it will require often not recognized. Many projects are funded by approvals, financing, or involvement from the one source but the benefits accrue to another. This private sector, national government, international is acceptable as long as all parties acknowledge this donor agencies, or other stakeholders over which situation. the mayor has limited direct authority or control. Likelihood of Funding Stakeholders Taking stock of all the previous assessment catego- Identify the project’s major stakeholders. The ini- ries and an initial review of costs, benefits, control, tial list of stakeholders will consist of departments timing, and stakeholders, assess the likelihood of and organizations; specific stakeholders should be obtaining funding for the project. Step 14 provides added later. an extensive discussion on funding and financing. Potential Funding Ease of Implementation Identify the potential sources of funding. The initial Based on case studies and direct knowledge of list could comprise local departments, the national implementing projects within a particular sector or government, or NGOs. city agency, identify whether the project is likely Previous Attempts at Similar Projects to be relatively easy or difficult to implement. This Describe any previous energy efficiency projects evaluation can include a variety of factors such as that the city or electrical utility or national govern- (a) the requirement for legislation (for example, ment has studied or implemented that are similar building codes); (b) the requirement for national to the project. Note whether the project was suc- government investment (for example, a new bus cessful. If it was not successful, describe the factors rapid transit line or power plant); and (c) the city’s that made the project difficult. ability to fully develop, finance, and implement the See resources 3.1 for additional information. project. Chapter 4 Goal Setting Armed with an inventory and an understanding of potential projects, city leaders can establish a direction for the city. Projections of energy use and emissions will need to be made based on the city’s growth and urbanization forecasts, and various energy scenarios should be compared with status quo policies and organization. This will help city leaders make the case for committing time and resources to an energy and emissions program. Clear goals will need to be set that outline energy and carbon emissions savings, along with mechanisms for verifying and reporting success. Once projects are assessed, the next task is to prioritize them for implementation and begin to line up the resources needed to tackle the initiatives that align most closely with the city’s aspirations, targets, and goals. Step 7 Resources 4.1 Make the Case for SUEEP Winds of Change, World Bank 2010 This report lays out alternative future scenarios for energy con- Once the energy and emissions diagnostic infor- sumption. Based on these scenarios, the report posits a number of conclusions relevant to this Guidebook: mation is complete, the next step in the SUEEP process is to develop the arguments about why 1. It is within the reach of East Asia’s governments to maintain economic growth, mitigate climate change, and improve an alternative energy pathway is important to the energy reliability. city’s wider vision and goals. This step lays out 2. To achieve these goals, governments must take immediate common arguments that can be adapted to each action to transform their energy sectors toward much higher city’s particular needs. energy efficiency and more widespread use of low-carbon technologies. 3. This shift to clean energy requires major domestic policy and Areas of Concern in the institutional reforms. EAP Region 4. Developed countries need to transfer low-carbon technologies and provide substantial financing for these technologies. Carbon dioxide (CO2) levels in our planet’s atmo- sphere have reached the highest levels in recent The World Bank is committed to scale up policy advice, knowledge sharing, and financing in sustainable energy to help the region’s history. The burning of fossil fuels such as oil, governments make such a shift. The combination of the Winds of coal, and natural gas is the main reason behind Change, this Guidebook and its accompanying CD-ROM SUEEP the increase in CO2. Increases in global tempera- Toolkit, and direct technical and economic assistance are key inter- ture associated with these human-caused releases ventions to help EAP cities build a sustainable energy future. of CO2 and greenhouse gases (GHGs) are now better understood, and the questions that global entities such as the World Bank are asking are no energy consumption—and corresponding GHG longer “what is causing it,� but “what can we do emissions—particularly pressing. In May 2010, to curb it.� More evidence of changing climatic the World Bank and AusAID released Winds of conditions, such as increased flooding, drought, Change, East Asia’s Sustainable Energy Future, and hurricane activity, is visible, further elevating which outlined issues faced by the EAP region, climate change concerns to the top of geopoliti- underscoring the need for energy planning in the cal agendas. These factors will affect energy, urban region. See resources 4.1. growth, and economic policies given their impact For the last three decades, the region has on the growth of GHG emissions. experienced the strongest economic growth in The rapid urbanization rate in the East Asia the world, with a 10-fold increase in GDP. This and Pacific region (EAP) makes the increase in growth is expanding urban centers, creating 31 32 | Sustainable Urban Energy and Emissions Planning Guidebook new growth in suburban areas, and significantly environmental factors, economic development, increasing the demand for energy. Although GHG and healthy social networks (figure 4.1). See case emissions per capita are still low compared with study 4.1. For example, a project established under developed countries, the region is expected to catch triple bottom line thinking might include the fol- up, resulting in significant impacts on the local and lowing components: global environment. Economic: Distributed generation techniques reduce The Winds of Change report sends a clear energy costs for developers, creating more attractive message that the region has options for mitigating long-term leases. emissions growth without sacrificing economic competitiveness. If this path can be followed, the Social: Reduced numbers of four-wheel vehicles impact of fast-growing economies and urban- results in cleaner air and reduces asthma cases in ization can be balanced against the increasing children. need for energy reliability and environmental Environmental: Reduced cooling demand in build- sustainability. ings will reduce water consumption and align with In the EAP region, long-term energy plan- future water-reduction goals. ning must be integrated with the wider planning processes for the land use, transportation, and buildings sectors. These are the major sources of Establish Links to energy and emissions growth in the region, and Citywide Goals cities hold the key for regulating and changing Gaining support for the SUEEP process can be the direction of growth toward a lower carbon accomplished by developing synergies between pathway. energy savings and the qualities of a successful city. Find those interconnections, and give voice to the Triple Bottom Line Thinking idea that this energy plan is not just about a greener Making the case for an energy and emissions plan planet, but that it is about the city’s aspirations and is not only about justifying reduced energy costs its unique qualities. See example 4.1. and lower emissions. To capture citizens’ hearts These synergies and links can alter the per- and minds, the SUEEP process will have to estab- ceived definition of an “energy� project (a project lish a connection to the city’s larger plan, tying into in which the benefits are mainly reduced energy its aspirations across a variety of sectors. costs) to one that enables the city to attain its This concept is called “triple bottom line vision. These links may be internal to the city, but thinking.� The idea is to establish ties not only to might also reach beyond its boundaries. Stories climate change aspirations (reduced carbon emis- about the extent of the project’s reach may be most sions) but also to align the initiatives with other beneficial politically. Case Study 4.1: philadelphia, pennsylvania, usa mayor nutter makes the case In Mayor Michael Nutter’s January 2008 inaugural address, he pledged to make Philadelphia the number one green city in America. His energy goal was “to reduce Philadelphia’s vulnerability to rising energy prices.� To make good on his pledge, he created the Mayor’s Office of Sustainability. The Mayor’s Office of Sustainability spent a year researching city sustainability, talking with residents, and drafting Greenworks Philadelphia. The ambitious plan sets 15 sustainability targets in the areas of energy, environment, equity, economy, and engage- ment to make Philadelphia the greenest city in America by 2015. Greenworks Philadelphia was released in spring of 2009, and in the first year of implementation the Mayor’s Office of Sustainability and its partners made great strides toward making Philadelphia more sustainable. Source: www.phila.gov/green/greenworks. CHAPTER 4: goal setting | 33 Policies and Aspirations Figure 4.1. Triple bottom line returns City agencies have wide-ranging agendas and often Access to Climate change inconsistent messages between departments. The services and adaptation and infrastructure disaster resilience creation of an energy and emissions plan can align goals across departments, for example, Pollution Historic and control and Economic: A bus rapid transit (BRT) project cultural conservation needs more momentum and organization than just preservation, of natural social resources Social Environmental the Department of Transportation to obtain the infrastructure inclusion sustainability required funding, so linking to energy and carbon can provide the support needed for implementation. Lower risk Commercial Energy and viability ef�ciency and Social: The Departments of Parks, Transit, valuation reduced Buildings, and Health all agree that air quality stability GHG emissions concerns are important. The energy and emissions plan can serve as a bridge between these depart- Better Lower ments to provide unity and consistency. top line operating performance expenses Environmental: Poor water quality in visible public Source: http://smartcitiesadvisors.com/mission.php. places is recognized as a detriment to businesses near the contamination. An energy and emissions plan can be a vehicle for driving wider environ- mental issues to the top of policy agendas. occur in the upcoming years and decades. The costs of the SUEEP process and its organization and Understanding Current implementation may at first appear out of reach; Progress however, the costs of business as usual will likely Cities may not realize that existing policies already be much higher. The impact of doing nothing is employ some form of triple bottom line thinking. considerable. The first task in making the case for For example, congestion taxes may have been put an SUEEP process is understanding existing prac- in place as a result of scarce public parking, but tices and what those practices are likely to lead to the taxes, in turn, increase demand for more public if maintained. See example 4.2. transportation, which reduces overall GHG emis- sions, improves air quality, and reduces congestion on the city’s roads. Example 4.1 sample links to wider city goals Establishing connections to what has already been done will not only help tell the story, but may The following are a few examples of connections between also reveal data that can be used to assure stake- energy projects and other city initiatives or aspirations. holders that the projections for various scenarios 1. Bus Rapid Transit (BRT) Boosts Local Businesses are accurate. City governments should engage Markets, shops, and restaurants on the new BRT lanes have prospered in cities because bus riders are more with various department leaders and local orga- likely to patronize shops than are drivers of cars who are nizations to understand the current progress and, unable to find parking spots. where politically appropriate, make the case for 2. Street Lighting Saves Lives the energy and emissions plan by aligning it with Crime rates have decreased dramatically in areas with successful initiatives and declaring that the plan new street and site lighting, making energy savings a secondary issue to the increased safety associated with will create continued synergies with these projects. this project. 3. Parking Restriction Cleans up City The Price of Doing Nothing: New parking projects have allowed for more efficient Scenario Analysis trash collections, with greater access at lower costs. Making the case for a sustainable energy future Besides reduced congestion and lower emissions, the streets have become cleaner and more walkable. requires an understanding of the issues that will 34 | Sustainable Urban Energy and Emissions Planning Guidebook What influence does the city government have with Example 4.2 suppliers of energy and drivers of national and winds of change GHG scenarios regional energy policies? The study underpinning this Guidebook examined two Increasing Energy Intensity energy scenarios up to 2030: (1) a reference scenario, which features a continuation of current government policies (REF Assess the impacts on the city of economic growth scenario); and (2) an alternative scenario of sustainable and urbanization. Will economic growth comprise energy development (SED scenario), which aims to put the more-energy-intensive businesses that replace less- energy sectors on a sustainable path. energy-intensive business or industrial sectors? Two separate studies projected the growth of energy demand in the transportation and household sectors. The What will the urbanization trends mean for trans- transportation study examined the potential to reduce portation end uses? transportation fuel consumption through fuel economy standards, public transportation, urban planning, and Qualities of the City pricing policies. The household study explored the potential Determine the social aspects of the city that are to reduce residential electricity consumption through attractive and must remain, as well as the aspects appliance efficiency. The potential emissions reduction is shown in the figure. that are unattractive or harmful and must be addressed. Will urbanization and increased energy Emissions Gap between REF and SED is Large, but Can Be Bridged consumption affect the livability of the city if poli- by Energy Conservation and Low-Carbon Technologies, 2009–30 (Gt) cies and practices are unchanged? 16 Energy Risks Energy ef�ciency 14 Low-carbon technologies REF Document the potential risks facing the city if cur- 12 rent practices continue. What are the energy reli- ability concerns associated with regional growth 10 SED and urbanization? Will increased carbon emissions 8 diminish the attractiveness of the city to various 6 business entities? 4 With a grasp of these issues, city governments can tell a “story� about where the city currently 2 stands, the direction of energy use and emissions 0 in the city if current practices remain unchanged, 2009 2012 2015 2018 2021 2024 2027 2030 and where it could potentially go if actions were Source: Author’s calculations. taken to tackle energy use. (See technical assis- Note: Gt = Gigatons. tance opportunity 4.1.) The adverse outcomes that accompany inaction will help to garner support for the SUEEP process. Understanding Existing Policies Gather information from administrative and sec- toral leaders about current policies as they relate Technical Assistance Opportunity 4.1 to energy and carbon concerns. Has anything Energy planner for changed in recent years? scenario development Forecasting Growth Developing models to project energy growth under Gather best estimates of the city’s population various development scenarios may not be within growth. What are the demographic expectations the current skill sets and resources available to city for the new population? administrations. Energy planning consultants from local technical universities or international energy Recognizing Supply-Side Practices consultants can undertake the technical calcula- Review current supply-side energy approaches. tions and work with city leadership to define vari- How is the fuel mix likely to change? Will sur- ous development scenarios, including the business rounding population growth and changes in city as usual base case. boundaries affect supply distribution in the region? CHAPTER 4: goal setting | 35 Find Compatible National transformative practices and supply-side projects. Energy and Emissions Goals Politically speaking, establishing connections with Most countries in the EAP region have signed and these groups can align a city with these causes, giv- ratified the Kyoto Protocol and adopted climate ing the entire process momentum and high-level action plans. Most large-scale utility providers in national support. the region recognize the risks associated with busi- These ties will also help to create change when ness as usual but do not have a clear understanding implementation funding, resources, or partnerships of the steps needed to change their trajectory. are needed. A mayor’s sphere of influence extends Many nonprofit groups and climate change far beyond the city walls. advocates are making the case for region-wide Step 8 Establish Goals Now that the energy inventory is complete and projections for future growth of energy use Tip 4.1 have been made, the next step is to create goals. McKinsey GHG Abatement Cost Curve Although the primary objective of the SUEEP pro- McKinsey’s global GHG abatement cost curve provides cess is to improve energy efficiency across sectors, a quantitative basis for discussions about actions that the SUEEP process provides flexibility should a city would most effectively deliver emissions reductions, and what they decide that its goal is to minimize GHG emissions. might cost. The cost curve in the figure shows the range of emis- In such cases, other tools, such as the McKinsey sion reduction actions possible with current technologies or with cost curve (see tip 4.1), would need to be used to technologies likely to be available between now and 2030. The height of each bar represents the average cost of avoiding one perform a cost-benefit analysis. ton of CO2 emissions by 2030 through that technology. The width The intent of establishing goals is to articulate of each bar represents the potential of that technology to reduce targets based on key performance indicators in GHG emissions in a specific year compared with business as usual. critical energy use sectors. Achieving the targets will define success. The goals should support the Global GHG abatement cost curve beyond business as usual—2030 vision statement developed in Step 1, and should Gas plant CCS retrofit Abatement cost Coal CCS retrofit use simple overarching statements to frame a 60 e Low penetration wind Iron and steel CCS new build Coal CCS new build Cars plug-in hybrid desired direction. Power plant biomass 50 Residential electronics Degraded forest reforestation co-firing Nuclear Reduced intensive 40 Residential appliances agriculture conversion Retrofit residential HVAC Pastureland afforestation High performance wind 30 Degraded land restoration Solar PV Tillage and residue mgmt Aggressive but Viable 20 10 Insulation retrofit (residential) Cars full hybrid 2nd generation biofuels Building efficiency new build Solar CSP Waste recycling Targets must be based on city-specific empirical 0 5 10 15 20 25 30 35 38 -10 Organic soil restoration data and analysis rather than simply the numbers -20 Geothermal Grassland management Abatement Potential GtCO2e per year used by neighboring or peer cities. Based on pro- -30 Reduced pastureland conversion Reduced slash and burn agriculture conversion -40 Small hydro jections of various scenarios and assessments of -50 1st generation biofuels Rice management -60 Efficiency improvements other industry either existing or potential projects, a city govern- -70 Electricity from landfill gas Clinker substitution by fly ash ment would have a range of targets that it could -80 Cropland nutrient management Motor systems efficiency -90 Insulation retrofit (commercial) strive to achieve. -100 Lighting—switch incandescent to LED (residential) The targets should be aggressive but viable and Note: The curve presents an estimate of the maximum potential of all technical GHG abatement measures below e60 per tCO2e if each lever was pursued aggressively. It is not a forecast of what meaningful to stakeholders. See case study 4.2. role different abatement measures and technologies will play. Although cities are expected to stick to their tar- Source: McKinsey, “Pathways to a Low-Carbon Economy, Version 2 of the Global Greenhouse Gas Abatement Cost Curve, 2009,� https://solutions.mckinsey.com/ClimateDesk/default.aspx. gets, changes to energy targets and goal statements are acceptable if new data come to light, or if exter- nal factors suggest that targets need to change. 36 | Sustainable Urban Energy and Emissions Planning Guidebook Case Study 4.2: shanghai, china Shanghai Sticks to Energy Goals Shanghai’s target is to reduce energy usage by the equivalent of 800,000 tons of standard coal in 2010 with the eventual aim of cutting the standard coal equivalent by as much as 1 million tons. The city government will strictly control the number of new projects with high energy consumption and curb excessive growth of industries with high emissions. Projects not in line with energy efficient standards will not be approved. “It is austere to achieve 2010 targets to reduce emissions and save energy,� Mayor Han said. “We have to rigorously stick to this goal and ensure the implementation of rules.� In 2010, Shanghai reduced energy use by 6.2 percent, beating a 3.6 percent target set at the start of the year. Source: http://www.shanghai.gov.cn/shanghai/node27118/node27386/node27387/node27388/userobject22ai38370.html. Choosing Energy Units Vision Statement Versus Target statements used for quantifying a city’s Target Statements energy future can use several different units depend- The city government should align its energy vision ing on whether energy costs, energy usage (such with its larger aspirations. Although the vision as MMBTU or MJ), or carbon emissions are the statement can be general, target statements should important factors for the city. Remember that be quantifiable, trackable, and measurable. See GHGs are emitted from a variety of sources, not just examples 4.3 and 4.4. the energy sector (for example, methane from agri- cultural practices is typically excluded from energy Interim Targets action plans), so noting the extent of the carbon Goal statements look toward long-term targets, commitment and the emissions sources used in the but short-term and mid-range targets ensure that analysis are important when developing the SUEEP. long-term targets are met. These targets might be linear, that is, if the goal is a 20 percent reduction in 20 years, then 10 percent in 10 years might be Example 4.3 appropriate. However, it is more likely that exter- Vision Statement versus target statement nal factors and project momentum will build over time, and a project’s effects may be compounded. VISION: A statement of the city’s aspirations: The path from current energy use to future projec- “A greener, greater city.� tions will probably not be linear, so understanding synergies between projects and the compounding GOAL: A qualified statement beginning with an action: of benefits are necessary for city governments to “Maximize use of renewable energy.� set realistic interim goals. See case study 4.3 and TARGET: A quantifiable objective aligned with the goal: example 4.5. “Reduce GHG emissions by 40 percent by 2030.� Feasibility of Targets What makes a good target statement? A host of factors affect the city’s ability to meet its The following qualities have led to successful target established targets, including changes in who holds statements: the position of mayor from the time the SUEEP Clear and concise: Avoid verbose statements that are process commences to the future year in which tar- difficult to follow. gets should be attained. It is in the interest of the Not too technical: Keep it simple. Use terms and units that city government to establish targets that are within the general public understands. its means and that will be just as feasible for future Add target date: Establish a year that is practical for leaders. achieving the target. CHAPTER 4: goal setting | 37 Example 4.4 Disseminating Energy Goals throughout a City’s Sectors The figure represents a sample city’s concept of organization. The energy and emissions plan derived from the SUEEP process is a critical part of the city’s overall vision, but it is not inclusive enough for the city as a whole. This Guidebook outlines an energy planning framework that ties into other aspects of a city through linkages and synergies, but focuses on energy. The energy framework will have its own process and organization. Energy goals are outlined for the city as a whole and should be connected to the city’s vision. Energy goals should lead with an action word such as “Reduce,� “Minimize,� or “Align� and should support the city’s vision. Targets should be established that commit to achievement of quantifiable objectives by a certain date. Key performance indictors should be created to ensure that targets are monitored and the city is on track to achieve them. YOUR CITY’S VISION Improve quality of life and encourage economic development. Success requires a comprehensive approach across all sectors and organizations. The SUEEP process outlines a strategic plan for tackling the energy and GHG emissions in support of this vision. SUEEP ENERGY PROCESS and ORGANIZATION To drive vision and goals and create ownership and Key accountability ENERGY TARGETS KPIs performance indicators To support the city’s vision Based on goals SECTORS T I C R M Sector vision To achieve the energy goals Key SECTOR performance TARGETS indicators Measure success based on targets SECTOR STRATEGIES PROJECTS Sector key: T = Transportation; I = Industry; C = Commercial buildings; R = Residential buildings; M = City buildings, site lighting, water, waste. 38 | Sustainable Urban Energy and Emissions Planning Guidebook Case Study 4.3: Barcelona, spain Targets for GHG emissions reductions The Barcelona Energy Improvement Plan (PMEB) forms the general framework for the work of the Barcelona City Council in matters of energy policy and its environmental impact on the city. Within this context, the Energy Plan includes an energy-related and environmental diagnosis of the present-day Barcelona and its future trends (to 2010), which allows the prediction of the increase of the city’s energy consumption and its repercussions according to different scenarios. As a result of this analysis, the PMEB established a set of local action measures addressed to the achievement of a more sustainable city model, while reducing the environmental impact through energy savings, an increase in the use of renewable energies, and energy efficiency. In the Target Scenario, GHG emissions were to be reduced by 30.3 percent compared with the Trend-Based Scenario for 2010, resulting in emission cuts of 2.76 tons of CO2 equivalent per capita. To achieve this, the city rolled out the PMEB, which com- prised 55 projects that were assessed from the energy-related, environmental, and economic standpoints. Source: www.barcelonaenergia.cat/document/PMEB_resum_eng.pdf. Example 4.5 City Boundaries sample reduction targets Boundary issues were discussed in Step 4. Several factors will lie outside the control of a city’s SUEEP The figure shows examples of city energy reduction targets from the Carbon Disclosure Project. The bars in the figure process, given the flow of energy across boundaries show the dates the projects were initiated and their target and sectors: completion dates; the number in the bar is the percentage reduction. n Energy grids will be affected by regional energy The figure illustrates the wide range of reduction targets policies (for example, regional-level promotion and time scales for the various cities. of renewable energy and more-efficient and Understanding the diversity of commitments is important. less-GHG-emitting technologies). n Transportation networks are funded and main- Austin 100% Bangkok 15% tained by national resources but affect the com- Buenos Aires 33% muting patterns of a city because they cross city Changwon 20% Chicago 6% boundaries. Copenhagen Heidelberg* 20% 20% n Water and wastewater treatment facilities Jakarta 30% in outlying areas of a city may be outside a London 80% Los Angeles 35% city government’s physical and jurisdictional Melbourne 100% boundaries. Milan 20% New Orleans 30% New York 30% Understanding these external effects on energy use Portland 10% and emissions in the city will be useful. Similarly, Rotterdam 100% Sydney 70% adjacent cities that are altering their emissions and Philadelphia 12% physical or political connections will affect the Tokyo 10% Toronto 20% boundary. Projections will need to be based on the Warsaw best assumptions that can be made about these 20% Yokohama 25% ‘85 ‘90 ‘95 ‘00 ‘05 ‘10 ‘15 ‘20 ‘25 ‘30 ‘35 ‘40 ‘45 ‘50 external policies and regulations. Timescale for reduction: *City did not disclose a baseline 0–10 years 10–25 years > 25 years How Granular Should © 2011 Carbon Disclosure Project Targets Be? City government operations emission Although the level of detail contained in goals reduction targets by city established under the SUEEP process will vary, all Source: “CDP Cities 2011. Global Report on C40 Cities.� C40 Cities. Figure 16. (http:// successful plans rely on measurable targets. For content.yudu.com/A1sdst/CDPCities2011/resources/index.htm?referrerUrl= ). the first effort at an energy and emissions plan, CHAPTER 4: goal setting | 39 Example 4.6 bending the curve The city’s overall SUEEP target is to reduce primary energy consumption by 18 percent from 2010 levels by 2020. The figure illustrates how “bending the curve� is possible by reducing projected energy use across various sectors. How Is the Target Set? Energy growth by sector was projected based on forecasts of economic trends and population growth. Assuming that the city government continues with current policies, a business as usual scenario is established. Based on policies that the city government has the ability and influence to enact, a “moderate� projection was established that determined the potential energy savings that could be expected across sectors (that is, buildings, transportation, and so forth). This was then used to guide the target statement. Why 2020? Based on the task force’s work with utility providers and key stakeholders, 2020 was set as the target because the parties could envision results from policies to stem energy growth coming to fruition by then. The targeted year was also far enough in the future that projects could be planned and implemented—but not so far that the year seemed out of reach and too long term. 107,000 M MJ 110,000 100,000 18% Savings target usual s as Total annual primary energy consumption (M MJ/year) es 88,000 M MJ 90,000 busin issions plan 80,000 energy and em 62,850 M MJ 70,000 39 60,000 40% 50,000 Transportation Percent 25,500 M MJ 21 40,000 28% Industry 30,000 17,300 M MJ 15 20,000 Commercial buildings 11% 7,050 M MJ 25 10,000 Residential buildings 21% 13,000 M MJ 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Base year targets should be overarching (that is, applicable n Reduce waste vehicle fleet petroleum consump- to sectors, not to specific projects) until more is tion by 20 percent by 2030. understood about the potential opportunities and See example 4.6 for an illustration of one city’s constraints in each sector. sector-level targets that will help it to “bend the Good examples of measurable targets follow: curve� of citywide energy consumption. n Reduce energy consumption by 20 percent by 2030. n Reduce city transportation energy consumption by 20 percent by 2030. 40 | Sustainable Urban Energy and Emissions Planning Guidebook Step 9 Prioritize and Select Projects Inventories have been established, existing condi- will likely lead to misuse of resources and long- tions and policies have been reviewed, potential term failure to achieve the energy goals. All three projects have been assessed, and goals have been should be undertaken using a combination of anal- stated. The case has been made for change rather ysis and judgment: than a business as usual approach. Now initiatives n Stage 1. Eliminate: Remove obvious projects and projects must be implemented to get the city from priority list. from Point A (today) to Point B (a target tied to the n Stage 2. Prioritize: Create an analytical goal statement). approach to understanding which projects have Prioritizing projects takes a combination of the highest potential to meet the city’s goals and common sense, quantifiable targets aligned with targets and rank them. goals, and judgment by city leaders who under- n Stage 3. Select: Qualitatively review the priori- stand the city’s issues and politics. tized projects to select the ones to implement. This section outlines a three-stage approach to project prioritization. (Also see technical assistance See figure 4.2 for an illustration of this process. opportunity 4.2.) Any of these stages in isolation Technical Assistance Opportunity 4.2 multiple levels of engagement The SUEEP process is based on a comprehensive approach, but the process outlined in Step 9 could be perceived by cities to be too detailed or more complex than necessary for a city’s current stage of energy planning. Depending on a city’s capacity, resources, and priorities, it could engage in energy planning at levels other than the SUEEP. A high-level, rapid assess- ment could be performed as an introduction (for example, the World Bank’s Tool for Rapid Assessment of City Energy [TRACE]) or deeper sectoral engagements in a few selected areas (for example, public-private partnerships and sector-wide interventions). TRACE, developed by the World Bank’s Energy Sector Management Assistance Program, offers cities a quick and easy way to assess their energy efficiency and identify underperforming sectors for possible improvement. This tool prioritizes sectors with significant energy savings potential, and identifies appropriate energy efficiency interventions across six city services—urban pas- senger transportation, buildings, water and wastewater, public lighting, solid waste, and power and heat. The opportunities for energy efficiency in individual sectors are determined on the basis of the product of the following three factors built into the TRACE software: n Energy spending information. This information is obtained either directly from the six sectors and city budget offices or through the conversion of energy use across the city into energy spending per sector. n Energy efficiency opportunity. Opportunities to increase energy efficiency are determined using key performance indicators chosen from the TRACE benchmarking process that are most indicative of energy use across a particular sector or subsector. To define opportunity, the mean value of sectoral energy use of the better-performing cities in the peer group is calculated, and the difference between this value and the city’s current performance provides an improvement target for the city; this is termed the “relative energy intensity� of the sector. n The control or influence of the city government. This is determined by establishing the extent of influence that the city gov- ernment has in each sector. This ranges from minimum (national government has greater or even full control) to maximum (city has full budgetary and regulatory control). The sector prioritization process in TRACE is quick and automatic, but not as flexible as the one in the CD-ROM SUEEP Toolkit in this Guidebook. TRACE identifies sectors that a city should prioritize, as compared with the SUEEP Toolkit, which identifies high-priority projects across sectors. It is not possible to change or add projects in the TRACE software as can be done in the Project Assessment and Prioritization Toolkit. So TRACE is not compatible with the comprehensive SUEEP process, but it may be a realistic alternative that can move the energy planning process forward. (See http://www.esmap.org/esmap/node/235 for details of the TRACE process.) CHAPTER 4: goal setting | 41 Most cities will categorize projects and targets into (S) = Supply sectors, therefore, five sectors are used on the energy (P) = Process demand side (the letter in parentheses will be used throughout this section to denote a specific sector): Toolkit Reference Project Assessment and Prioritization (T) = Transportation Toolkit (I) = Industry The CD-ROM Project Assessment and (C) = Commercial buildings Prioritization Toolkit outlines 78 projects across (R) = Residential buildings the five demand-side sectors, as well as supply and (M) = City buildings, site lighting, water, waste process projects. Project characteristics are pro- vided along with the formulas that allow the user Two other sectors can be useful in organizing to calculate a Project Score (explained in this Step). projects associated with the supply of energy and the process or organizational structure for devel- oping the energy and emissions plan: Figure 4.2. Elimination, Prioritization, and Selection Process (T)-1 (T)-1 (T)-1 1 (T)-2 (T)-2 (T)-2 (T)-3 (T)-3 (T)-12 (T)-4 (T)-4 (T)-4 (T)-6 (T)-5 (T)-5 (T)-5 (T)-6 (T)-6 (T)-6 (M)-2 (T) 14 (T)-7 (T)-8 (T)-7 (T)-8 (T)-8 (C)-2 (T)-2 11 (T)-9 (T)-9 (T)-9 (T)-10 (T)-10 (R)-5 (T)-11 (T)-11 (T)-11 (C)-7 (T)-12 (T)-12 (T)-12 (T)-1 (T)-13 (T)-13 (T)-13 (T)-14 (T)-14 (T)-14 (I)-3 (P)-2 (T)-12 (S)-1 (M)-2 (I)-1 (I)-1 (I)-1 (I)-2 (I)-2 (I)-2 (R)-3 9 (I)-3 (I)-3 (I)-3 (I) (P)-3 (I)-4 (I)-4 (C)-2 7 (I)-5 (I)-5 (I)-5 (T)-5 (I)-6 (I)-6 (I)-6 (I)-1 (I)-7 (I)-8 (I)-7 (I)-8 (I)-8 (C)-5 (T)-2 (C)-3 (I)-9 (C)-1 (I)-9 (C)-1 (I)-9 (R)-2 (R)-5 (C)-2 (C)-3 (C)-2 (C)-3 (C)-2 (C)-3 (T)-8 (T)-4 (T)-1 (C)-4 (C)-4 (C)-5 (C)-5 (C)-5 (P)-6 (P)-2 (C) 14 (C)-6 (C)-6 (C)-6 (T)-13 (S)-1 8 (C)-7 (C)-7 (C)-7 (C)-6 (C)-8 (C)-8 (C)-9 (C)-9 (T)-9 (C)-10 (C)-11 (C)-10 (C)-11 (C)-10 (C)-11 (I)-2 (T)-11 (T)-8 (C)-12 (C)-12 (C)-13 (C)-13 (T)-14 (S)-6 (S)-9 (R)-1 (R)-1 (R)-1 (S)-7 (R)-2 (R)-2 (R)-2 (R)-3 (R)-3 (R)-3 (S)-8 (R) 9 10 (R)-4 (R)-4 (S)-9 5 (R)-5 (R)-5 (R)-5 (S)-10 (R)-6 (R)-6 (R)-7 (R)-7 (P)-1 (R)-8 (R)-8 (R)-8 (P)-5 (R)-9 (R)-9 (P)-7 (M)-1 (M)-1 (M)-1 (P)-8 (M)-2 (M)-2 (M)-2 (P)-9 (M)-3 (M)-3 (M)-3 (M) 10 (P)-11 (M)-4 (M)-4 8 (M)-5 (M)-5 (M)-5 (C)-11 (M)-6 (M)-6 (M)-6 (M)-7 (M)-7 (M)-7 (M)-7 (M)-8 (M)-8 (M)-8 (R)-1 (M)-9 (M)-9 (M)-9 (R)-8 (M)-1 (S)-1 (S)-1 (S)-1 (S)-2 (S)-2 (S)-2 (M)-3 (S)-3 (S)-3 (M)-5 (S) (S)-4 (S)-4 (M)-6 10 (S)-5 (S)-6 (S)-7 (S)-5 (S)-6 (S)-7 6 (S)-6 (S)-7 (M)-8 (M)-9 (S)-8 (S)-8 (S)-8 (P)-12 (S)-9 (S)-9 (S)-9 (S)-10 (S)-10 (S)-10 (C)-10 (I)-5 (P)-1 (P)-1 (P)-1 (I)-6 Stage 3 55 (P)-2 (P)-2 (P)-2 (P)-3 (P)-3 (P)-3 (I)-8 (Select) (P)-4 (P)-4 (I)-9 (P) 12 (P)-5 (P)-5 (P)-5 (P)-6 (P)-6 (P)-6 10 55 (P)-7 (P)-7 (P)-7 (P)-8 (P)-8 (P)-8 (P)-9 (P)-9 (P)-9 (P)-10 (P)-10 (P)-11 (P)-11 (P)-11 (P)-12 (P)-12 (P)-12 78 55 Stage 1 Stage 2 (Eliminate) (Prioritize) 42 | Sustainable Urban Energy and Emissions Planning Guidebook Stage 1: Eliminate Shift to nonmotorized transportation (T)A:  Remove obvious projects from priority list. modes Shift to public transportation (T)B:  This first step is a nontechnical rejection of proj- (T)C: Improve efficiency of existing vehicles ects that are obviously inapplicable to the city or (T)D: Improve efficiency of new vehicles are clearly nonstarters (for example, because of a lack of resources or funding). This stage results in Table 4.1 shows the possible projects associated an immediate elimination of approximately 30 per- with the strategies for the transportation sector. The cent of the projects (78 down to 55). city may have lists of potential projects or it can Through all three stages, the city’s goals and use the list in the CD-ROM Project Assessment and the energy goals for each sector should be clearly Prioritization Toolkit. The table shows which proj- understood and kept in mind. For example, assume ects were eliminated in this example, and why. This the goals in the transportation sector are as listed: stage reduces potential projects in the transporta- tion sector to 11. These 11 now move to Stage 2. Transportation Sector Goals 1. Reduce the cost of energy used for transportation Stage 2: Prioritize 2. Minimize GHG emissions from transportation Use an analytical approach to understand which 3. Maintain reliable energy supply to the trans- projects have the highest potential to meet the portation sector city’s goals and targets. Strategies for Achieving the Sector Goals This stage is more detailed and can take several forms. The Project Assessment and Prioritization Toolkit This Guidebook contains a framework for quantifying outlines strategies for enhancing energy efficiency the usefulness of the remaining projects for achieving across different sectors. Strategies in the transpor- the goals and aligning with the unique qualities of the tation sector comprise the following: city. This methodology ranks (from 1 to 55) projects across all sectors based on the set of characteristics Table 4.1. Elimination of Projects in Stage 1 Transportation sector projects Eliminate in Stage 1? A. Shift to (T) A.1 Bike lane expansion and improvement project Keep nonmotorized transportation (T) A.2 Mixed use planning initiatives Yes—This exercise was completed recently and modes politically, it cannot be revisited. (T) A.3 Streetscape improvement project Keep B. Shift to public (T) B.1 Bus rapid transit lines Keep transportation (T) B.2 Expand rail services Keep (T) B.3 Carpool project Keep (T) B.4 Parking restriction project Keep (T) B.5 Park and ride project Keep (T) B.6 Improve and expand ferry service Yes—Landlocked city with no ocean or rivers. C. Improve (T) C.1 Vehicle emissions testing and compliance Yes—Resources needed to administer and efficiency of enforce this are not available. existing vehicles (T) C.2 Motorcycle (2–4 stroke) upgrade Keep D. Improve (T) D.1 Angkot replacement project Keep efficiency of new vehicles (T) D.2 4-wheel vehicle fuel efficiency tax Keep (T) D.3 Taxi replacement and efficiency project Keep CHAPTER 4: goal setting | 43 reviewed in Step 6. More on this process and examples (C6) Recipient of savings are included in the following pages. The characteris- (C7) Likelihood of funding tics discussed in Step 6 are listed below: (C8) Ease of implementation (C9) Timing of project implementation (C1) Energy savings potential (C10) Level of city control (C2) Fuel type savings (C3) GHG savings potential (C4) Implementation cost Review Project Score Criteria (C5) Estimated cost savings Table 4.2 shows that a Project Score (PS) Criteria score has been assigned to each characteristic. The Table 4.2. Project Score Criteria Project Score (PS) Criteria (0–10) The higher the PS the better the project Characteristic (C) is aligned to meet the city’s SUEEP goals (C1) rank Low Medium High Energy savings potential definition <10,000 kWh/yr 10,000–10,000,000 kWh/yr >10,000,000 kWh/yr PS 0 1–9 10 (C2) fuel Motor LPG Grid electricity Natural gas Fuel type savings gasoline/diesel PS 4 2 2 4 (C3) rank Low Medium High GHG savings potential definition <1,000 tons/yr 1,000–10,000 tons/yr >10,000 tons/yr PS 0 1–9 10 (C4) rank High Medium Low Implementation cost definition >$5,000,000 $100,000–$5,000,000 <$100,000 PS 0 1–9 10 (C5) rank Low Medium High Estimated cost savings definition <$10,000/yr $10,000–$100,000/yr >$100,000/yr PS 0 1–9 10 (C6) saver Energy services Utility or private entity City residents City Recipient of savings company government PS 1 3 6 8 (C7) rank Low Medium High Likelihood of funding PS 0 1–9 10 (C8) ease Hard Medium Easy Ease of implementation PS 0 1–9 10 (C9) Timing of project timing Slow Medium Fast implementation definition > 10 years 1–10 years < 1 year PS 0 1–9 10 (C10) rank Low Medium High Level of city control definition National Regional Budget and stakeholder stakeholder regulatory PS 0 5 10 44 | Sustainable Urban Energy and Emissions Planning Guidebook PS criteria will be used to rate projects on each Calculate a Total Weighted Project Score characteristic, from 0 (low) to 10 (high). Taking (TWPS) the energy savings potential characteristic as an Each PS is multiplied by the CW, then summed to example, projects with the potential to provide sav- provide a Total Weighted Project Score (TWPS). ings of more than 10,000,000 kWh/yr are scored Table 4.5 shows the process and calculations, lead- “10� whereas those with the potential to provide ing in this example to prioritization of Projects 2, savings of less than 10,000 kWh/yr are scored “0.� 1, and 3 (from greatest to least TWPS). Table 4.5 For the fuel type savings characteristic, a lower shows only three characteristics (of 10) to clarify score is given if availability of primary fuel is not the process for calculating the TWPS. A more com- an issue in the city. For example, LPG is given a prehensive example appears in example 4.7. low score of 2 because there is no shortage of LPG In addition to a sector-by-sector calculation, a in the city, which means that projects that could PS should be determined for each project across all affect the use of LPG are not as important as those sectors in Stage 2, that is, run two exercises: First, that could affect natural gas, the supply of which prioritize projects by individual sector, which will is more limited. allow you to select the top two or three projects in each sector. Second, combine all projects from Assign Project Scores all sectors into one larger grouping and prioritize Table 4.3 shows the process for assigning scores across sectors. The projects with the highest scores to a specific project. As an example, the table uses from each of these prioritization exercises are the Project (T) A.1 Bike lane expansion and improve- projects that should advance to Stage 3 for final ment project. selection. The methodology should be applied to each It is not unusual for a single sector to be heav- project. Rating the projects according to a stan- ily weighted in the TWPS process. For example, dard set of characteristics ensures that all projects if 11 Transportation projects and 7 Industry are rated consistently. projects make it past Stage 1 (Eliminate), it may Assign a Weight to Each Characteristic prove in Stage 2 that all 11 Transportation proj- Table 4.4 is a characteristic weighting table, which ects score higher than any of the Industry projects. provides a way to emphasize the importance of var- Understanding the reasons for this as well as the ious characteristics for achieving the city’s goals. drivers that lead to this ranking in Stage 2 is impor- Because the PS will be multiplied by the character- tant. City governments should take a comprehen- istic weight (CW), the higher the number, the more sive view of the projects, considering the unique the city values the characteristic. attributes of their cities (including constraints faced Table 4.3. Assigning Scores to Project (T) A.1 Bike Lane expansion and improvement Characteristics Project score and description (C1) Energy savings potential 4—Estimated to be 100,000 kWh/yr (C2) Fuel type savings 4—Motor gasoline/diesel (C3) GHG savings potential 4—Roughly 4,000 ton/yr (C4) Implementation cost 5—Estimated to be ~$1 million (C5) Estimated cost savings 4—Roughly $40,000/yr (C6) Recipient of savings 6—City residents (C7) Likelihood of funding 8—Support groups have been raising funds (C8) Ease of implementation 4—Resources are in place, and this is moderately easy (C9) Timing of project implementation 5—Estimated total of 2–5 years for entire project (C10) Level of city control 8—Mostly within the city’s control, with some minor private entity collaboration. CHAPTER 4: goal setting | 45 and the structure of their economies) to achieve example 4.7 were calculated to have the highest a deeper understanding of the factors that could potential to meet the city’s goals. The ultimate result in the outcomes of Stage 2. A lower-ranked rankings are shown in table 4.6. project (an Industry project that does not score as Now doing the analysis across all sectors will high as a Transportation project) may ultimately result in the ranking of projects across a wide be selected for implementation based on the judg- ment of city leaders. This process occurs in Stage 3. Based on the analytical exercise in Stage 2, Table 4.5. Calculating TWPS the transportation sector projects in the table in (C1) (C2) (C3)… Characteristic Table 4.4. Weighting Characteristics 5 2 3 Weight (1–5) Total Weighted Program Score (PS) Project Score Characteristic weight (CW) Importance (1–10) (TWPS) 0 No importance Project 1 (Ex. (T) A.1) 4 4 4 (5x4)+(2x4)+(3x4) = 40 1–4 Increasing importance Example—Project 2 9 3 3 (5x9)+(2x3)+(3x3) = 60 5 Critical to the city Example—Project 3 3 5 2 (5x3)+(2x5)+(3x2) = 31 Example 4.7 Prioritization of Transportation Sector Projects Using the Total Weighted Project Score Method (C1) (C2) (C3) (C4) (C5) Estimated cost savings (C6) (C7) (C8) (C9) (C10) GHG savings potential Total weighted project score (TWPS) Likelihood of funding Implementation cost Recipient of savings Fuel type savings Timing of project implementation implementation Energy savings city control potential Level of Ease of Characteristic weight 5 2 3 4 3 2 3 4 2 2 Transportation sector projects Project scores (T) A.1 Bike lane expansion and improvement 4 4 4 5 4 6 8 4 5 8 150 project (T) A.3 Streetscape improvement project 2 4 2 3 2 3 9 2 3 7 103 (T) B.1 Bus rapid transit lines 6 4 6 2 6 3 6 2 3 7 134 (T) B.2 Expand rail services 8 4 8 1 8 3 2 1 1 8 134 (T) B.3 Carpool project 4 4 4 8 4 3 7 8 9 5 171 (T) B.4 Parking restriction project 3 4 3 8 3 3 4 7 7 5 143 (T) B.5 Park and ride project 3 4 3 8 3 3 3 8 8 7 150 (T) C.2 Motorcycle (2-4 stroke) upgrade 3 4 3 6 3 3 2 6 1 3 109 (T) D.1 Angkot replacement project 3 4 3 5 3 8 3 5 5 3 122 (T) D.2 4-wheel vehicle fuel efficiency tax 2 4 2 7 2 3 3 8 7 3 125 (T) D.3 Taxi replacement and efficiency 3 4 3 6 3 8 2 7 7 5 139 project 46 | Sustainable Urban Energy and Emissions Planning Guidebook variety of end uses, demand sectors, and organiza- Table 4.6. Ranking by TWPS tions. See technical assistance opportunity 4.3. Project TWPS Rank Stage 3: Select (T) B.3 Carpool project 171 1 Provide a qualitative review and select high-prior- (T) B.5 Park and ride project 150 2 ity projects. (T) A.1 Bike lane expansion and 150 2 improvement project After eliminating (Stage 1) and prioritizing using (T) B.4 Parking restriction project 143 4 quantitative analysis (Stage 2), it is time to select (T) D.3 Taxi replacement and 139 5 high-priority projects (Stage 3). This stage requires efficiency project the judgment of city leadership (mayor, task force, (T) B.1 Bus rapid transit lines 134 6 stakeholders, consultants) to choose projects based (T) B.2 Expand rail services 134 6 on the political and socioeconomic realities of the city. (T) D.2 4-wheel vehicle fuel 125 8 efficiency tax Highly ranked projects emerging from Stage 2 (T) D.1 Angkot replacement 122 9 may not necessarily be implemented because inter- project nal and external forces can compel the selection of (T) C.2 Motorcycle (2–4 stroke) 109 10 lower-ranked projects. Such forces will be based on upgrade the challenges, constraints, and pressures that the (T) A.3 Streetscape improvement 103 11 city faces. Sometimes these forces are so powerful project or important to the city that an additional “char- acteristic� should be added to Stage 2 to address Finding the Balance these concerns. The city’s aspirations and the project opportunities For example, in the hypothetical city’s selection should both be clear after completion of the previ- process in table 4.7, (T) A.1 Bike lane expansion ous steps. Complementarities between the energy and improvement project received the second- sector and broader-reaching engagements will have highest TWPS of all the projects considered. (C) come to light. Most cities will begin by implement- E.3 Public office buildings audit and retrofit was ing low-cost, easy-win projects that require rela- ranked 21, but the mayor believes that this is a cru- tively minimal resources and have traditionally led cial first step, despite its score. to high energy reductions in a short time. Examples A number of these guiding principles apply to include the EAP region, and are outlined in the Winds of n congestion pricing, Change, referred to in Step 7. See example 4.8 for n building codes, and some of the principles city leadership may use in n street lighting. project selection. However, all cities’ aspirations, resources, and commitments are different, so the choice of proj- ects to meet energy goals will be unique to the city. Technical Assistance Opportunity 4.3 If carbon reduction is a priority, resources should prioritizing projects focus on shifting fuel types, providing incentives City governments, task forces, and stakeholder groups for distributed generation, and perhaps encourag- are the best people to provide the details for developing proj- ing renewable energy solutions. If air pollution is ects because they understand the internal issues, challenges, and a major issue, projects could be focused on con- opportunities of each project. But technical advisers who have gestion pricing, constructing new bike lanes, or gone through the project prioritization and selection process upgrading building codes for exhaust locations. before have the best skills and experience for estimating energy savings, costs, and the impacts of each project and thus for assist- Stick to the Vision ing with prioritizing projects. Support from industry experts and Prioritizing means choosing what is right for the planners should also be sought. city within the resources available. When in doubt, CHAPTER 4: goal setting | 47 Example 4.8 Some guiding principles in the Selection stage 1. Fuel type stress External supply constraints on a particular fuel may lead to the prioritization of projects that address this constraint, despite potentially higher capital costs. The costs of not implementing these projects will be higher than taking on projects that may have scored high in Stage 2. Example: Natural gas constraints drive a low-ranked energy efficiency residential air conditioning project. 2. Political expedience Sometimes people speak out, protest, or petition, and selection of a lower-ranked project is the politically wise action. The selection and successful implementation of one project instead of another may allow for political leverage. Example: Concerns about air quality around a school yard leads to support for regulations to ensure industrial process efficiency. 3. Strong donor opportunity A third-party group or private investor may push for a public-private partnership in which both groups benefit economically and the city grows closer to reaching its goals. Example: A developer wants to invest in a transit hub on its new property, supporting transit projects that could not previously be funded. 4. Synergy with other urban problems The mayor or other senior leader recognizes connections with other city qualities that can benefit from the implementation of projects. Example: Safety issues drive a streetscape plan that includes street lighting and bike lanes. the city government should return to its vision their resources, knowledge base, and influence. and goal statements. Projects should be chosen The success of the projects and the overall SUEEP to achieve the goal and communicate the success process will be determined by the groups desig- using the goal statement; for example, nated to lead and administer these projects. Understanding the current strengths of the “New Dedicated Bike Lane Project Positions departments, the public sector, or nonprofit pres- City to Achieve Carbon Emissions Reduction ences should influence project prioritization. Targets.� Relying on an unmotivated or unqualified indi- vidual to lead a priority project will not work. Easy Wins Versus Repositioning Empowering strong leaders will increase the odds for Change of success. Short-term wins make for good press. They give credibility to the SUEEP process and to the city’s goals. Quick achievements should continue to be exploited, discussed, and communicated as suc- cesses. But prioritizing projects should not just mean selecting projects that give the best short- term results—those that position the city for long- term success are also crucial. Know the Strengths of the City and the People What can finally be implemented depends on what the administrative groups can achieve based on 48 | Sustainable Urban Energy and Emissions Planning Guidebook Table 4.7. Project Selection Rank Project TWPS Selected at Stage 3 1 (T) B.3 Carpool project 171 Yes 2 (T) B.5 Park and ride project 150 Yes 3 (T) A.1 Bike lane expansion and improvement project 150 No 4 (C) C.1 Commercial building operator awareness training 148 Yes 5 (T) B.4 Parking restriction project 143 Yes 6 (C) D.1 Tenant metering project 140 Yes 7 (T) D.3 Taxi replacement and efficiency project 139 Yes 8 (R) B.3 Code compliance improvement project 137 Yes 9 (T) B.1 Bus rapid transit lines 134 No 10 (T) B.2 Expand rail services 134 Yes 11 (R) C.1 Residential unit metering project 130 No 12 (T) D.2 4-wheel vehicle fuel efficiency tax 125 No 13 (T) D.1 Angkot replacement project 122 No 14 (C) B.3 Code compliance improvement project 118 No 15 (C) E.1 Schools audit and retrofit project 111 Yes 16 (T) C.2 Motorcycle (2–4 stroke) upgrade 109 Yes 17 (M) A.1 City building audit and retrofit project 106 No 18 (T) A.3 Streetscape improvement project 103 No 19 (C) B.1 Update commercial building energy code 100 No 20 (P) A.1 City government energy task force 98 Yes 21 (C) E.3 Public office buildings audit and retrofit project 98 Yes 22 (P) D.4 Partner with grants-funding agencies 98 No 23 (C) D.2 Tenant behavior and energy efficiency awareness 98 No 24 (R) C.2 Residents behavior and energy efficiency awareness 96 No Chapter 5 Planning This chapter outlines the process for compiling the energy and emissions plan. This document will represent the city’s vision and will be what the public and the international community will see. Therefore, the document should be clearly written, summarizing the city’s current situation and its aspirations for achieving a sustainable energy future. The energy and emissions plan should summarize why an alternative energy future is important, and it should make the case for the specific initiatives and projects that will be implemented in the coming years. A good energy and emissions plan can garner city’s sophistication and organization to interna- internal support from throughout the city govern- tional funding agencies and private sector energy ment and help to motivate city workers to support businesses. This is a critical part of the SUEEP the mission and the purpose of new programs. A process and should be developed with care and good energy and emissions plan can convey the attention. Step 10 Draft the Plan This section describes the crafting of the SUEEP projects are implemented and sets out the long- process into a public document that summarizes term vision, goals, and strategies of the city’s and synthesizes the planning efforts made thus leadership. In contrast, the status report provides far. The energy and emissions plan is the midpoint updates about progress toward the goals set out in of the planning process—it marks the end of the the energy and emissions plan. analysis and inventory phase and the beginning of the implementation and action phase. Audience for the Energy and Emissions Plan Purpose of the Energy and The energy and emissions plan has a wide audience Emissions Plan including city residents, city workers, private sec- The energy and emissions plan synthesizes the tor businesses, international energy services com- work undertaken on energy planning and outlines panies, financial institutions, international donor the steps a city will take to alter the course of its agencies, and peer cities that may follow in your energy consumption. city’s footsteps. Because this audience is wide and The document should inform the public of new diverse, the document must be straightforward initiatives, explain convincingly why an alterna- and intelligible, not heavily weighted with data, tive energy future is important, inspire city resi- but also not simply a compendium of generalities dents and businesses to take action and contribute and platitudes. It should be easy to read and con- to improving the city, and show the international tain specific goals and targets that are achievable donor community that the city is organized and and relevant to stakeholders. serious about implementing energy projects. The energy and emissions plan is typically not a legal Who Should Write the Energy document, although the energy plans it espouses and Emissions Plan? may be formally adopted by legislative bodies. The lead agency or energy task force within the The energy and emissions plan is different mayor’s office will be the central point of contact from the SUEEP status report outlined in Step 17. and coordination for the entire SUEEP process. The energy and emissions plan is created before Thus, this lead agency should pull together all the 49 50 | Sustainable Urban Energy and Emissions Planning Guidebook data, projects, benchmarking, and background Contents of an Energy and required for the energy plan. This agency should Emissions Plan also have close ties to the mayor or the city council, All SUEEP processes are different, and as it devel- who will ultimately approve the energy and emis- ops, the contents of the energy and emissions plan sions plan. The agency should also seek stakeholder will evolve to fit the process. See resources 5.1 and input on the document before it is finalized. The case study 5.1. Some energy and emissions plans actual writing of the energy and emissions plan may will be produced earlier, during the data collec- be done by staff of the agency, or a local or interna- tion and analysis steps, and some cities will have tional consultant may write and compile the docu- done significant background research and planning ment depending on the capacity, budget, and time before writing the document. Example 5.1 pro- available to the agency. The first energy and emis- vides a general template of the contents of a typical sions plan is more likely to be written by nonper- energy and emissions plan. Although a city’s first manent staff, whereas future energy and emissions energy and emissions plan may not be a fully com- plans may be written in house once city government prehensive document, it should at the very least officials become more familiar with the process and incorporate the results of the energy balance and can tailor the plan to local experiences. GHG inventory to profile the city’s energy use, out- line its targets and projects to change energy use Style and Length patterns, and flesh out an action plan to demon- Because the energy and emissions plan is meant to strate the steps the city will take to begin to imple- be public and easily comprehended by a wide vari- ment the energy and emissions plan. ety of stakeholders, it should be a graphically com- pelling document that illustrates data and policies using figures and diagrams that make energy data interesting and easy to read. (See technical assis- ResourceS 5.1 tance opportunity 5.1.) It should contain compari- sample energy and sons with other cities and should refer to aspects of emissions plans for everyday life that help nontechnical readers under- reference stand the targets and how the goals can be reached. Examples of how other cities have developed their Its description of the urgent need to change the plans are in the references below: course of the city’s energy consumption should be Singapore: “Climate Change and Singapore: inspirational and should showcase the thought and Challenges. Opportunities. Partnerships� efforts put into setting the goals, targets, and strat- New York, New York, USA: “PlaNYC� egies. These elements of the document should be Birmingham, UK: “Birmingham 2026, Our Vision tailored to the city so that readers believe that they for the Future� are achievable. Most energy plans are between 50 Toronto, Canada: “Climate Change, Clean Air and 100 pages and are produced in both digital and Sustainable Energy Action Plan: Moving from format and hard copy. Framework to Action� Huntington Beach, California, USA: “City of Huntington Beach Energy Action Plan� Technical Assistance Opportunity 5.1 Dublin, Ireland: “Dublin City Sustainable Energy Graphic Design and Report Writing Action Plan 2010–2020� Some city governments have graphics departments that can pub- Tbilisi, Georgia: “Sustainable Energy Action Plan – City of Tbilisi for 2011–2020� lish a compelling document, but even large cities such as Chicago and London hire external consultants to put the SUEEP information Cape Town, South Africa: “Moving Mountains: into a format and style that is attractive and readable. Conveying Cape Town’s Action Plan for Energy and Climate technical data in graphically simple ways requires graphic design Change� software and unique experience. This may also be a resourcing Christchurch, New Zealand: “Sustainable requirement because permanent staff may already be busy with Energy Strategy for Christchurch 2008–18� existing obligations and the SUEEP process is a biannual activity. CHAPTER 5: planning | 51 Chapter Summaries Case Study 5.1: dublin, ireland 1. Inventory and Benchmarking Sustainable Energy Action Plan The first chapter of the energy and emissions plan Dublin published its “Sustainable Energy Action Plan 2010–2020� (after an executive summary) should summarize in a 45-page document. The document includes the city’s energy the energy balance and GHG emissions inventory vision, a summary of the GHG inventory, and the energy planning and highlight the major energy users by sector. actions the city will take to reduce its GHG emissions. The docu- ment is full of graphs, tables, charts, and examples of ongoing Data should be put into context using historical energy projects, and it reads easily and provides information to a trends and previous goals set by the mayor relating wide variety of readers. to the use of energy. Progress indicators for spe- Source: http://www.codema.ie/news-article/date/2012/01/04/dublin-sustainable-energy- cific sectors should also be compared with those community.html. for similar cities and peer cities. Data should be illustrated in an interesting and informative man- ner using graphs and charts. This chapter should also describe likely oppor- 3. Energy and Emissions Goals tunities for improvement. The energy and emissions plan should state the (Collecting data for and calculating the energy city’s goals and priorities for an alternative energy balance and the GHG inventory are described in future to clarify the vision and to set targets for Step 4 of this Guidebook.) energy and emissions reductions. These goals should coincide with the mayor’s agenda, helping 2. Energy and Emissions Growth to prioritize projects and make decisions about Projections which investments will create the most significant This chapter describes the wide variety of future change in pursuit of the desired goals. Goals and energy consumption scenarios that a city could targets are specific and should apply to citywide face. Using the diagnostics of the current inven- performance as well as to each sector. tory year, it makes a number of assumptions (Setting goals is described in Step 8 of this about how energy consumption will change in the Guidebook). coming 10 to 20 years. Such assumptions should take into account trends that accompany eco- 4. Priority Projects nomic growth in the East Asia and Pacific region, The final three chapters set out the specific steps for such as the growth of energy consumption as a achieving the city’s goals. This chapter summarizes result of shifts from two-wheel vehicles to cars; how all possible projects were evaluated and which from industrial manufacturing to tourism and were given priority. The mix of high-priority proj- knowledge work; from multigenerational hous- ects should include some quick and easy projects ing to higher quality single family housing; and from traditional naturally ventilated buildings that use relatively little energy to higher quality, international-style office space with air condition- Example 5.1 ing, computers, and overhead lighting. Table of Contents of an Energy and Because growth and trends for the future are Emissions Plan uncertain, a number of alternative scenarios All SUEEP processes are different, but a starting place for for high and low growth should be examined. the contents of an energy and emissions plan follows: Assumptions should also include trends such as 1. Inventory and Benchmarking densifying urban centers versus city expansion via 2. Energy and Emissions Growth Projections low-density development on the outskirts of town. 3. Energy and Emissions Goals (The process for developing growth projec- 4. Priority Projects 5. Financial Resources tions and scenarios is described in Step 8 of this 6. Action Plan Guidebook.) 52 | Sustainable Urban Energy and Emissions Planning Guidebook for quick wins, some long-term big picture projects, (Prioritizing and selecting projects can be found and projects that cut across all sectors. This chap- in Step 9 of this Guidebook.) ter will briefly describe each project. Projects can 5. Financial Resources range from energy efficiency to organizational or This chapter summarizes the costs and benefits of institutional development projects. Some projects proposed high-priority projects. It also shows how may also be the establishment of policies that set the city plans to pay for each project, but it is not the stage for the viability of future energy projects. Example 5.2 Sample 10-Year Energy and Emissions Action Plan Organization Explore synergies with other citywide initiatives Allocate staff and resources for the SUEEP process Leadership and Management Align Priority 1 initiatives and implementation plan Establish a regional energy planning board FIRST YEAR Establish energy task force Partner with funding agencies 2011 2012 2013 2014 Process and Reporting Planning, Implementation, and Reporting # # GHG GHG STATUS EEP #1 EEP #2 Allocate city budget resources for energy planning $ # GHG inventory GHG Implement Priority #1 projects Energy and Emissions Plan EEP $ Energy Budget Review Status Report STATUS EEP #1 Implementation Phase CHAPTER 5: planning | 53 meant to be a detailed cost exercise with exten- strong financial case for the plan’s benefits to the sive figures or analyses. Because costs and benefits city’s macroeconomic situation and how it will of various projects accrue to multiple stakehold- boost rather than hinder economic growth. ers, including those outside the city, the energy (Financing mechanisms for energy projects can and emissions plan should address this issue in a be found in Step 14 of this Guidebook.) compelling way. This chapter should also make a Partner with energy services companies 2015 2016 2017 2018 2019 2020 # GHG STATUS STATUS EEP #3 Long-term capital planning for city building assets $ Implement Priority #2 projects Implement Priority #3 projects EEP #2 Implementation Phase EEP #3 Implementation Phase 54 | Sustainable Urban Energy and Emissions Planning Guidebook 6. Action Plan Components of the Action Plan The final chapter outlines the short- and long-term The action plan has two major components: actions required to implement the plan using a n the institutional or organizational activities time-based sequence of activities. The action plan required for implementation, and will show the institutional and policy changes nec- n actual project implementation phasing, annual essary as a result of the SUEEP process. Seeing the monitoring and reporting activities, and cycles 1-year action plan as well as a 10-year outlook of financial planning and recalibration of imple- helps to put the process into perspective for readers mentation plans. who want to know what is happening and when it is happening. Example 5.2 shows an action plan with major An action plan must be time-based and a sched- milestones set out over a 10-year horizon along ule must be set for meeting major milestones. The with regular GHG inventories, budget allocations, energy and emissions plan is only one step along and status reports. the path, but it should include an action plan summary. Step 11 Finalize and Distribute the Plan Once the energy and emissions plan has been Revise and Synthesize the Plan drafted, it must go through a stakeholder review All comments should be collected, recorded, and and input process. This review has many purposes, evaluated to ensure that all inputs are considered. including getting technical corrections and clarifi- Comments should be prioritized based on rel- cations. Most important, the review serves to get evance, the technical or experiential basis of the buy-in from stakeholders. It may be difficult to comment, the priority of the stakeholder making get support for the plan if a stakeholder who is the comment, and compatibility of the comment expected to implement high-priority projects has with the city’s broader goals. Once the changes to not seen the plan or agreed to implement the proj- the plan have been determined, it can be revised to ects. In contrast, stakeholders who have been in incorporate the most important comments. regular dialogue with the energy task force and have been involved in project review and assess- Finalize the Plan ment would likely support initiatives that are The final step in developing the energy and emis- related to or need to be implemented by them. sions plan is to gain approval from the mayor and the energy task force. Finalizing the document Receive Input on the Draft Plan should be straightforward once the diagnostics Once the draft energy and emissions plan is com- have been completed, goals have been set, projects pleted and distributed to all stakeholders for review, have been prioritized, and stakeholders have been it is important to meet with each stakeholder to consulted. However, if the mayor has not been walk through project prioritization and selection. involved in the day-to-day SUEEP process, time This is particularly important if the stakeholder is should be taken to explain the process and its out- expected to implement one or more of the high- comes to the final decision makers. priority projects. If a formal meeting is not possible Most energy and emissions plans begin with or if a stakeholder will not have direct responsibil- a personal letter from the mayor introducing and ity for implementing a high-priority project, writ- supporting the plan. Once the plan has received ten input will suffice. final approval, it should be printed for distribution and published digitally for uploading to the city’s website to be accessible to a wider audience. CHAPTER 5: planning | 55 Get the Word Out—Locally Once the energy and emissions plan has been pub- Technical Assistance Opportunity 5.2 public relations press release lished and posted on the city’s website, the pub- lic, private businesses, local NGOs, and all other Once the energy and emissions plan is complete, pro- stakeholders who will be interested in participat- fessional support may be needed for getting the word out. Some ing and benefiting from the SUEEP projects should cities have strong public relations and community outreach capa- bilities, but these are often confined to the city itself. Professional be informed. News articles in local papers, press public relations firms can help to expand the reach of publicity for releases, events to introduce aspects of the plan, the energy and emissions plan regionally, nationally, and interna- and other publicity-generating activities should tionally. This is particularly important if a city is looking for inter- be pursued. (See technical assistance opportunity national donor funding and needs to show how serious the SUEEP 5.2.) One of the main reasons that mayors develop process is to the mayor. Publicity may even attract funding that energy plans is that they believe such plans will sup- was not in the picture before the press release. port the public’s expectations for improved quality of life and environmental stewardship of the city. Therefore, if the plan is written and implemented, planning demonstrate the city’s capability to imple- but the public remains unaware of it, much of its ment a progressive agenda and could make the city benefit will be lost. more economically competitive. If the energy and emissions plan is credible, it can attract financial, Get the Word Out— technical, and political support for implementing Internationally the projects. A well-written energy and emissions Because some of the stakeholders in the SUEEP plan will also attract interest from international process are international businesses, donor agen- organizations, which are on the lookout for good cies, and peer cities, the energy and emissions plan projects and cities’ capacity and ability to imple- needs to be publicized beyond the city and even the ment the projects. country. The commitments made and thoughtful Chapter 6 Implementation The implementation stage is where good planning pays off. The strong foundation for city action established in the pre- vious steps enables the city to take on the challenges associated with SUEEP. The information presented in this chapter will help address the basics of overcoming policy and financing barriers. Because this Guidebook maintains a high-level overview of the issues associated with implementation, numerous external resources are referenced in the text. The refer- ences provide valuable information and would be useful sources of information during project implementation. Step 12 Technical Assistance Opportunity 6.1 Develop Content for project development High-Priority Projects The variety of energy projects in this Guidebook show the range of expertise required to develop any particular project. Most of the projects described in the Project Assessment and This section outlines issues to consider when Prioritization Toolkit have been implemented somewhere in the developing the most common types of energy effi- world, but probably not in your city. It is helpful to bring in tech- ciency and energy planning projects. The high- nical expertise in either a peer review role or an advisory role to priority projects were selected in Step 9 of the help identify pitfalls and develop the details of specific aspects of SUEEP process to be implemented first. The details a given energy project. For example, a bus rapid transit manufac- of every energy project are different, so a consider- turer or transport consulting firm could be brought in to support the design and feasibility steps. able amount of experience and time are required to turn a project idea into a project that can be fully implemented. See technical assistance oppor- tunity 6.1. The following descriptions provide greater circumstances of the city. The advantages of, for detail for four common types of projects: instance, particular lights, pump motors, or air conditioners over typical equipment should be n incentive projects, determined. n major single projects, n organizational development, and Target Customers n policy projects. Businesses, residents, or manufacturers that would be interested in an incentive project should be (See resources 6.1 for more information on devel- identified. Interviews to understand what would oping a policy-based energy and emissions plan.) motivate them to engage in the project, and factors that would dissuade them, should be conducted. Incentive Projects The number of customers that could plausibly Many energy efficiency projects encourage uptake participate in the project should be estimated and of better, more expensive equipment by pay- targets for the uptake of the project set (for exam- ing the purchaser the difference between the low ple: 1,000 incentives [rebates, discount coupons] cost–high energy product and the high cost–low for very high efficiency scooters will be distributed energy one. Examples include high-efficiency air every year for five years). conditioners, boilers, lighting, and pump motors, or fuel-efficient cars. Set Incentive Levels Incentive levels can be set once the available Technology Assessment energy efficient technologies are understood, The first step is to rigorously assess the technolo- including how much they cost and how much gies to find the ones that are better suited to the energy can be saved. Typically, incentive levels 57 58 | Sustainable Urban Energy and Emissions Planning Guidebook Resources 6.1 Policy and Energy and Emissions Plans “Energy Efficiency Governance Handbook� International Energy Association. 2010. “Energy Efficiency Governance—Handbook.� OECD/IEA, Paris. Eco2 Cities: Ecological Cities as Economic Cities Suzuki, Hiroaki, Arish Dastur, Sebastian Moffatt, Nanae Yabuki, and Hinako Maruyama. 2010. Eco2 Cities: Ecological Cities as Economic Cities (Washington, DC: World Bank). “Energy Efficiency Indicators: Best Practice and Potential Use in Developing Country Policy Making� Phylipsen, G.J.M. 2010. “Energy Efficiency Indicators: Best Practice and Potential Use in Developing Country Policy Making.� Phylipsen Climate Change Consulting, commissioned by the World Bank. “Cities and Climate Change� OECD. 2010. “Cities and Climate Change.� Paris, OECD Publishing. “Pathways to a Low-Carbon Economy: Version 2 of the Global Greenhouse Gas Abatement Cost Curve,� McKinsey & Company. 2009. https://solutions.mckinsey.com/ClimateDesk/default.aspx. “Shanghai Manual: A Guide for Sustainable Urban Development in the 21st Century,� United Nations, Bureau International des Expositions, Shanghai 2010 World Exposition Executive Committee. are set at 50–100 percent of the difference in cost based on need, speed of implementation, and other between baseline equipment and high-efficiency characteristics that make them attractive. equipment. The energy and emissions task force Validate Installation will have to set the level of incentives based on Most incentive projects require that the purchase, the group of consumers being targeted. If the time installation, and correct use of the equipment be consumers spend in the application and valida- validated. This follow-up also ensures that the tech- tion process is greater than the energy cost savings nology is appropriate and delivers the energy sav- they expect to accrue, they will have no incentive ings predicted in the initial technical assessments. to become more energy efficient. For example, if the incentive for a dimmable T5 light bulb does Major Single Projects not completely cover the cost differential with a Some projects are potent enough to change the typical T12 light bulb, consumers will need to way a city uses energy. Examples include a large- believe that the energy savings will pay for the scale district combined heat and power facility, a additional cost within a short time. bus rapid transit line, or a citywide water network Allocate Funding leak detection and reduction program. These proj- Once incentives, target rollout volumes, and project ects do not need to engage a large number of busi- administrative staffing levels have been estimated, nesses or residents but do require the involvement a total project budget can be developed. Armed of many intergovernmental agencies and funding with a solid plan that identifies the budget, the sources, as well as substantial planning, approvals, projects, and the potential energy or GHG savings, and political support. you can approach the city council, donor agen- Conceptual Design cies, and specialized financing bodies (for example, The ideas behind a project with the potential to energy efficiency funds) for financing support. Step achieve one or more of the city’s energy goals 14 provides details on financing options. should be refined to provide a high-level under- Develop Application and Selection standing of its primary concepts. A firm grasp of Process major characteristics—overall cost of construction A good incentive project could be oversubscribed, and operation; annual revenue potential; stake- so a process should be developed to select recipients holders involved (including property owners, local CHAPTER 6: implementation | 59 businesses, residents, NGOs, and city agencies); Organizational Development and timeline for full design, construction, and Successful energy planning goes beyond identify- implementation—is critical. ing and developing incentive projects or major Project Feasibility impact projects. Good energy planning increases With a conceptual design, a project feasibility study the capacity within the city government to imple- can be undertaken. Analyses should include costs ment future projects. Increasing energy-related and benefits, technical components, environmen- capacity includes building knowledge of success- tal and social considerations, political roadblocks, ful projects from throughout the region, building and financing issues. a network of contacts for technical support and advice, and changing the mindset of city employ- Project Approvals ees to work collaboratively toward the city’s wider If a project is deemed feasible, a more detailed energy goals. design should be formulated and approved by the regional or national electrical, regulatory, New or Improved Organization and environmental bodies. For example, a large- Whether formation of a new agency or group to scale renewable power generation facility (wind, undertake responsibility for the SUEEP process and solar, geothermal, biomass, or the like) should be status reports is required, or an existing organiza- approved by the regional or national electrical reg- tion could simply be improved to be more effective, ulatory body, and should gain environmental and should be determined. The city government should legislative approvals. ensure that the new or existing agency, groups, or organization is properly funded and provided with Project Financing the authority to make decisions and implement Throughout the development of a major project, projects; otherwise, the initiative will be ineffective. the project leader should be aware of different financing structures, and engage lenders, partners, Staffing Requirements and donor agencies. Many of the major project The minimum number of staff required to make examples shown in this Guidebook were imple- the organizational improvement should be deter- mented using innovative financing methods such mined. Keeping staffing cost low is critical to mini- as public-private partnerships (PPPs), design-build- mizing project administration overhead. transfer, design-build-operate-transfer, and other Training Requirements methods to bring in private sector technical and The most cost-effective available training (includ- financial expertise and risk sharing. ing conferences for key staff, professional consul- Project Bidding tancy, training programs for energy services, and Once the project is approved and the procurement donor-funded capacity-building activities) should strategy has been designed, the project should be be identified. Many donors look for opportunities put through a competitive bid process. The request to provide technical assistance through capacity for bids should be publicized as widely as possi- building rather than direct consultancy, so cities ble to bring in a large pool of potential bidders. should take advantage of these opportunities. The bidding process may require multiple stages; the initial stages might request only statements of Policy Projects capabilities and team structure, with subsequent Finally, policy projects can lay the groundwork to stages requesting more detail about finances and ensure that tactical energy projects are successful. implementation plans. For example, fuel subsidies for private vehicles could be decreased or eliminated in tandem with Project Implementation Plan access and affordability improvements in public Before a final bidder is selected, a rough implemen- transportation. tation plan should be drawn up by the city and circulated to all stakeholders to ensure they have Policy Analysis been consulted on implementation hurdles. The cost of the new policy or regulation to stake- holders should be assessed; this analysis should be 60 | Sustainable Urban Energy and Emissions Planning Guidebook used to ensure that its benefits outweigh the costs. Legislation, Regulation, and Finding the right balance between regulation or Enforcement policy changes and economic development and Sometimes incentives are insufficient to bring the improvement in citizens’ quality of life, safety, and energy efficiency agenda to fruition. In these cases, security is critical. city governments may choose to put in place legis- lation or regulations; for example, building codes Stakeholder Consultation may need to be formalized to make it compulsory for Changes to the existing policy environment will buildings to be designed in an energy efficient manner. affect residents and businesses, so it is important A regulatory policy must be both enforceable to gain buy-in on the changes before they are and enforced to create change, so ensure resources implemented. are allocated and a reasonable process is set up to monitor compliance. Step 13 Improve Policy Environment Cities need to recognize the close relationship Current Policy and Project Review between the policy environment and the success The first step in the review is to take stock of exist- of the SUEEP process. Each city is shaped by its ing policies, initiatives, projects, and programs at unique political environment, which means that the national, regional, and city levels (see example the intricacies of adapting policies to the SUEEP 6.1). Initiatives and projects developed by utilities, process will be similarly specific. This step aims to NGOs, and other organizations should be included help a city understand how its current policy envi- in the review. ronment will affect the SUEEP process, the policy options that are potentially beneficial to the SUEEP Other Government Utilities NGOs organizations process, and how policy recommendations can be established. This step also describes the process a city can use to analyze how current policies can Existing policy | Initiatives | Programs be improved to streamline energy and emissions– related policy, remove potential bottlenecks or con- The results of the review can be presented as a flicts with the SUEEP process, and preempt issues list, table, memo, presentation, or any other suit- arising from mismatched policy. This is achieved able format. This review will serve as the basis for through a three-stage process: policy analysis, so the information should be clear and easy to analyze. Review Develop Establish baseline policy policy Policy Support and Conflict policy options recommendations Once the policy and project review is completed, it is important to identify how the policies interact. Review Baseline Policy A baseline review will clarify the strengths, weak- nesses, and gaps in existing policies and policy Example 6.1 LEVEL OF GOVERNMENT AND instruments related to the SUEEP process. The POLICY TYPE review provides an understanding of current poli- cies enacted at national, regional, and local levels; National level: Renewables policy the way in which policies can complement or con- Regional level: Mass transit flict with each other; the city’s role as it relates to City level: Building codes energy; and the capacity of the city to act. CHAPTER 6: implementation | 61 Case Study 6.1: curitiba, Brazil transportation planning Curitiba is the capital of the state of Parana in the south of Brazil and is home to 1.83 million people. The city occupies a strategic location along Brazil’s economic corridor, which includes Brasilia, Porto Alegre, Rio de Janeiro, and São Paolo, and other major South American cities such as Buenos Aires and Montevideo. Curitiba has encouraged a lively and thriving downtown area through the city’s efficient transport system and a holistic approach to city planning. Curitiba’s city planning integrates strategic transport corridors, land use zoning, and its comprehensive master plan to encourage high density growth in close proximity to public transportation. This integrated approach has resulted in numerous benefits. Bus ridership has reached 45 percent, the city’s air quality has improved, traffic congestion has decreased, and green space has been added to the city. The center of the city has been pedes- trianized, resulting in a vibrant downtown area and a reduction in crime. The Institute for Research and Urban Planning of Curitiba (IPPUC) is responsible for monitoring, implementing, and updating Curitiba’s master plan. The delegation of this authority to the IPPUC is one of Curitiba’s key successes. The organization is a largely independent institute, and therefore less susceptible than a government department to political pressures and changes. Source: Suzuki, Hiroaki, Arish Dastur, Sebastian Moffatt, and Nanae Yabuki. 2010. Eco2 Cities: Ecological Cities as Economic Cities (Washington, DC: World Bank). A supportive policy relationship allows different city understand the relationships between differ- policies to augment each other’s desired effect. For ent policies. Some instances of policy symbiosis example, for a densely populated city, Singapore has and conflict may arise with policies that are not remarkably low traffic congestion and good air qual- related to energy and emissions, and these relation- ity. These attributes resulted from the implementation ships should be noted for reference because they of a number of policies that work together, includ- may prove to be important later on. See example ing a high tax on gasoline, congestion charging, and 6.2 for a suggested framework for assessing policy stringent automobile standards. See case study 6.1 support and conflicts. for another example of mutually reinforcing policies. Gap Analysis However, policies also have the potential to A gap analysis builds on the policy and project conflict with each other if they have not been for- review to understand the arenas in which further mulated strategically. For example, a city might policy action is required for the effective imple- want to improve the fuel efficiency of its vehicle mentation of projects identified by the SUEEP pro- fleet and has identified fuel mileage as a key con- cess. A gap analysis consists of mapping current cern. However, existing procurement guidelines policies and projects against a set of categories or might preclude the use of fuel efficiency as a prod- areas that need to be addressed to plan for effective uct selection criterion. In this case, the city may energy and emissions management. need to consider updating its vehicle procurement Tip 6.1, “Common Policy Gaps,� lists areas guidelines to enable achievement of its goal. that are typically not fully covered by energy and In addition, when considering policy support emissions policies. This list is useful as a starting and conflict, pointing out the many additional ben- point, but an individual analysis is essential for efits that come along with energy and emissions each city given the wide variability in activity. policies is important. For example, energy and emissions policies can result in Develop Policy Options n public health improvements, The outcome of the baseline policy review sets the n cost savings and increased efficiency, stage for the development of policy options with n reliability of energy supply and infrastructure the potential to achieve the city’s goals. The aim improvements, and is to identify a wide range of alternatives and then n improved quality of life. narrow them down to those that are most suited to the city’s situation. Using the baseline policy review as a way to cross- check policies against each other will help the 62 | Sustainable Urban Energy and Emissions Planning Guidebook Example 6.2 Policy Support and Conflict Analysis Supported by existing regional Supported by and national Conflict with Conflict with Existing city level (CL) existing CL (RNL) policies? existing RNL existing CL Existing RNL energy- energy-related policies policies? Which? Which? policies? Which? policies? Which? related policies Rulemaking and Rulemaking and enforcement enforcement 1. … q q q q 1. … 2. … q q q q 2. … 3. … q q q q 3. … 4. … q q q q 4. … 5. … q q q q 5. … Direct capital expenditure Direct capital expenditure 1. … q q q q 1. … 2. … q q q q 2. … 3. … q q q q 3. … 4. … q q q q 4. … 5. … q q q q 5. … Financial incentives Financial incentives 1. … q q q q 1. … 2. … q q q q 2. … 3. … q q q q 3. … 4. … q q q q 4. … 5. … q q q q 5. … Awareness and knowledge Awareness and knowledge sharing sharing 1. … q q q q 1. … 2. … q q q q 2. … 3. … q q q q 3. … 4. … q q q q 4. … 5. … q q q q 5. … Consider Multiple Policy Approaches objective, then a two-prong policy approach that Establishing multiple policy approaches to achieve includes fixture flow rate requirements in build- a desired outcome is a good strategy for policy ing codes and public education initiatives on water reinforcement. For example, if the city has iden- savings is an effective way to achieve the city’s tified reduced water use in buildings as a policy goals. Although this is a simplistic illustration, all the potential avenues available to the city to establish, reinforce, and support change should be considered. Tip 6.1 In developing multiple policy approaches, common policy gaps potential measures should be aligned with the desired outcome. This will allow policy planners to match the policy’s goal with the means available n City governance structures, for example, institutions not orga- to achieve it. nized to address energy and emissions n  Procurement policy, for example, procurement guidelines pre- Stakeholder Engagement clude selection of goods based on energy efficiency n Barriers to partnerships with the private sector As discussed in Step 3: Identify Stakeholders and n Data availability Links, gaining policy insights from stakeholders and n Public health, for example, policy does not recognize the ben- securing stakeholder buy-in are essential to devel- efits of energy and emissions planning on human health oping energy and emissions policies. Stakeholders n Economic development, for example, policy does not link the SUEEP process and energy and emissions plan to growth contribute to the city’s understanding of the nec- strategies essary policies and enable a multidisciplinary CHAPTER 6: implementation | 63 approach to policy development. They also play (Further discussions of stakeholders and how a variety of roles related to energy efficiency and they can be engaged can be found in Step 3.) emissions policy development, including Establish Policy Recommendations n developing and writing policies (for example, Establishing policy recommendations for the Department of Energy), energy and emissions plan requires that the list of n enabling project delivery (for example, energy policy options identified in the previous steps be services companies [ESCOs]), reduced. This reduction will be based on an anal- n coordinating strategic planning (for example, ysis of the city’s capacity to act, the partnerships city Chamber of Commerce), that may enable policy implementation, and the n implementing projects (for example, building empirical database underpinning development of operators), the energy and emissions plan. n receiving services from the city and participat- ing in public consultation (for example, citi- Capacity to Act zens), and The first consideration in establishing policy n enabling knowledge sharing (for example, local recommendations is the city’s capacity to act. academic institutions). Capacity to act refers to the city’s scope of influ- ence with respect to energy and emissions policy. In particular, engagement with the national govern- For example, cities generally have the power to ment is key, given that national policies, especially regulate, enforce regulations, invest in infrastruc- those that cut across sectors, affect policies imple- ture upgrades, provide subsidies, and educate the mented at the city level. For example, electricity tar- public. See example 6.3 for more information on iffs, which are usually determined by the national how cities can classify their powers to accomplish government, could potentially impede the city’s the goals of the energy and emissions plan. efforts to enhance energy efficiency should the price of electricity be subsidized or set particularly low. Example 6.3 capacity to act A city’s capacity to act and its level of influence determine how it can affect the energy and emissions plan. This matrix can be used to classify initiatives and clarify how they can best be implemented. Provincial Households Type of Mayoral Local or state National Private and NGOs and Lever authority government government sector individuals others Rulemaking Regulatory oversight Direct expenditures and procurement Financial incentives Information gathering, dissemination, convening, facilitation, advocacy Source: Hammer, Stephen A. 2009. “Capacity to Act: The Critical Determinant of Local Energy Planning and Program Implementation.� Columbia University Center for Energy, Marine Transportation and Public Policy, New York, NY. 64 | Sustainable Urban Energy and Emissions Planning Guidebook However, as a regulator, the city’s control Example 6.4 is more limited. For example, if the city aims to policies according to city role reduce per capita energy consumption in homes, Energy Consumer the available policy levers are generally informa- Air conditioning turned off during certain hours tion dissemination through educational campaigns City building retrofit project or regulation through building codes. (See case Regulator study 6.2.) These are not likely to be as effective as Building codes policies that are outside the city’s authority, such as City planning requirements a progressive electricity tariff structure. Energy Producer and Supplier Each policy in the baseline review will relate to Tariff structure one of the city’s roles. Identifying the extent of the Fuel procurement policy city’s influence and its policy levers in the proposed Motivator projects will allow it to determine if it is using its Energy efficiency publicity campaigns full capacity to act within each role, or whether Energy efficiency pilot projects some policy levers should be favored over others. Source: Management of Domains Related to Energy in Local Authorities (MODEL), 2010 (http://energy-cities.eu/MODEL). (See example 6.5 for a description of available pol- icy levers.) This review will also enable a city to consider indirect methods of enacting change if the analysis shows that some outcomes it desires are There are four major roles that a city can take not within its scope of influence. with respect to energy and emissions (see example 6.4): Example 6.5 n energy consumer, Available Energy Efficiency n regulator, and GHG Policy Levers n energy producer and supplier, and n motivator. Below are examples of policy levers available to city leadership: For each role, the city’s capacity to act is limited Rulemaking and enforcement in a specific way. For example, the city should Building performance standards and green have significant control over its own energy con- building codes sumption and can introduce policies to retrofit city Industrial efficiency standards Green procurement policy building stock, develop procurement policies that Direct capital expenditure prioritize energy efficiency, and educate civil ser- Improved vehicle testing vants on energy efficient behavior. Audit and upgrade for different building types Efficient technologies program Efficiency in government operations Demonstration projects Case Study 6.2: mexico green building codes Financial incentives Subsidies, tax deductions, or loans with favorable Mexico has had a mandatory building energy standard for com- rates for energy efficient products, for example, mercial buildings since 2001 that was developed by CONUEE, roof insulation the national energy conservation agency, with support from the Renewable technology rebates Lawrence Berkeley National Laboratory. The code has not yet been incorporated into the country’s construction regulations, but Awareness and knowledge sharing it is recognized that this is necessary to encourage its effective Online information portal implementation. Consumer guide to energy efficient products Energy efficiency, GHG mitigation awards For additional detailed information, see Feng, Liu, Anke S. Energy efficiency partnerships Meyer, and John F. Hogan. 2010. Mainstreaming Building Energy Training for energy efficiency professionals Efficiency Codes in Developing Countries: Global Experiences and Lessons Learned from Early Adopters. Working Paper No. 204 Funding (Washington, DC: World Bank). Energy efficiency and GHG funds CHAPTER 6: implementation | 65 See case study 6.3 for an illustration of many of approach to energy and emissions management the concepts in this section. by eliminating unsuccessful or redundant policies. The empirical base of the SUEEP process can be External Partnerships leveraged by a city to analyze its policy structure, Some policies cannot be implemented without the especially after one iteration of the SUEEP process help and support of external partnerships. ESCOs has been completed. and PPPs are good examples of external partner- ships that have enabled energy efficiency policies to be successful in cities across the world. SUEEP Policy Process In addition, development banks, international This section covers the key factors that enable the organizations, and NGOs can potentially help plan development and implementation of the energy for a rollout of the energy and emissions plan. The and emissions plan to be successful. potential for external partnerships is discussed in Transparency more detail in Step 3: Identify Stakeholders and Transparency is a critical part of policy develop- Links. ment because a process that is communicated well Empirical Base to all stakeholders builds support and ensures The foundation of the SUEEP process is an empiri- widespread understanding of the city’s intent. cal base of periodic energy and emissions data Transparency is also strongly linked to perceived collection and analysis, enabling systematic mea- regulatory risk from the perspective of potential surement and monitoring of policy successes and investors. By improving transparency, the city is failures. This information allows a city to adjust reducing this perceived risk and improving its posi- policies where required and develop an efficient tion to attract financing. Case Study 6.3: seattle, washington, USA green building program Through a collection of successful regulatory standards, measures, and incentives for the building industry, Seattle now has one of the highest concentrations of sustainable buildings in the United States and a powerful sustainable building industry worth $671 million. Having initially established a Green Building Team in 1999, Seattle regrouped its green building experts to form a single business unit called City Green Building in 2005. Its main program is funded through interdepartmental resources and staffed by green building experts in residential, commercial, institutional, and city capital projects. Using its strong relationships with the city’s water and energy utilities and their incentive programs, it connects developers, design teams, and building permit applicants with green building resources and helps eliminate code barriers to building green. A fundamental element of the city’s green building program is the promotion and measurement of the environmental impact of buildings and third-party verification. Seattle’s successful programs include the following: Sustainable Building Action Plan. The action plan identified key strategies for promoting green buildings in the marketplace. The two most important strategies identified were to lead by example and to develop a standard for green building. Sustainable Building Policy. This policy requires new municipal buildings of more than 5,000 square feet to meet a minimum Leadership in Energy and Environmental Design (LEED) Silver standard. Through 2011, an investment in state-of-the-art sus- tainable buildings of more than $500 million has resulted in 10 LEED Certified projects owned by the city (5 Gold, 3 Silver, 2 Certified), with a further 28 projects planned or in development. City LEED Incentive Program 2001–05. The city of Seattle provided support to green buildings through its City LEED Incentive Program, with incentives of more than $2 million for energy conservation, more than $2 million for natural drainage and water conservation, and more than $300,000 for design and consulting fees for LEED projects. The program was launched in 2001 as a joint program of Seattle City Light and Seattle Public Utilities. It provided up-front soft-cost assistance to projects committing to LEED. Funds can be used for additional design and consulting fees and for participation in the LEED program. Funding levels were $15,000 for LEED Certified, and $20,000 for LEED Silver or above. Density Bonus. The density bonus offers downtown commercial, residential, and mixed-use developments greater height or floor area (or both) if a green building standard of LEED Silver or higher is met. Projects must also contribute to affordable housing and other public amenities. Three projects have so far registered, and five projects are currently considering registration as of 2011. Source: C40 Large Cities Climate Summit (2007 Case Study), “Seattle Sets the Standards for Green Buildings.� 66 | Sustainable Urban Energy and Emissions Planning Guidebook Codification of the Energy and example, New York’s PlaNYC has been codified, Emissions Plan cementing the city’s commitment to take on the Formalizing the legal status of the energy and emis- actions identified in the plan. Although codifica- sions plan embeds it into the long-term citywide tion of PlaNYC has been effective in New York, strategy. The projects are no longer at the mercy cities in the EAP region will have to consider if a of political cycles and the responsibility to follow similar approach would be effective in entrenching through on the plan must be taken seriously. For the SUEEP process in city planning. Step 14 Identify Financing Mechanisms This section provides a high-level overview of the This section is structured according to a general basics of energy efficiency and emissions project process a city can use to assess a project’s financial financing. Energy efficiency and emissions reduc- viability as shown in the diagram below: tion projects tend to suffer from a financing viabil- Determine ity gap when compared with conventional projects. Consider Perform Categorize project The information presented here will help you �nancing due projects �nancial options diligence address this challenge. However, because energy viability efficiency and emissions projects cover a diverse range of sectors, stakeholders, and technologies, Categorize Projects developing financing strategies for these projects Once a collection of projects has been identified is complex and cannot be fully addressed in this and prioritized by a city, the projects must be cat- Guidebook. To augment the information presented egorized according to specific criteria that will here, a selection of supplementary information is streamline the approach to financing. Projects in presented in resources 6.2. different categories may be eligible for different forms of investments and incentives. The matrix Resources 6.2 further reading Financing Energy Efficiency: Lessons from Brazil, China, India, and Beyond. World Bank. 2008. “Financing Energy Efficiency: Forging the Link between Financing and Project Implementation.� Joint Research Centre of the European Commission. May 2010. “Energy Efficiency and the Finance Sector: A Survey on Lending Activities and Policy Issues.� A report commissioned by UNEP Finance Initiative’s Climate Change Working Group. 2009. Public Procurement of Energy Efficiency Services: Lessons from International Experience, Jas Singh, Dilip R. Limaye, Brian Henderson, and Xiaoyu Shi. World Bank. 2009. “Energy Efficiency Indicators: Best Practice and Potential Use in Developing Country Policy Making.� G.J.M. Phylipsen, commis- sioned by the World Bank. 2010. “Shanghai Manual: A Guide for Sustainable Urban Development in the 21st Century.� United Nations, Bureau International des Expositions, and Shanghai 2010 World Exposition Executive Committee. 2011. Green Infrastructure Finance: Framework Report. AusAID and the World Bank. 2012. CHAPTER 6: implementation | 67 shown here is a generic approach to categoriz- available. Planners should consider the impacts ing projects by size (small or large) and nature of the most common financial barriers to energy (centralized or decentralized); however, if a city’s efficiency initiatives (“Financing Energy Efficiency: prioritized projects tend to fall into the same cat- Forging the Link between Financing and Project egory, more detailed levels of categorization may Implementation,� Joint Research Centre of the be required, for example, breaking down projects European Commission, May 2010). These barriers by infrastructure capital investment versus opera- include the following: tional measures. n high development and transaction costs for Large Scale Small Scale small projects, n lack of awareness of energy efficiency projects Decentralized and technologies on the part of investors, Green building codes Efficient lighting n lack of energy efficiency financing experience, Improved public Household solar transportation hot water n high perceived end-user credit risks, n long marketing cycles, n low collateral asset value, Renewables energy savings not considered a revenue source, Centralized n development Biomass energy n high up-front costs, Water treatment system Landfill gas capture n short payback period requirements, location n budgetary rules that make it difficult to finance projects from energy savings, Using a categorization matrix is helpful for n energy efficiency financing coming from the mapping projects to a city’s investment environ- investment budget whereas savings are credited ment. This will enable viable projects to be matched to the operational budget, to available financing and ensure that a financial n lack of consideration of life-cycle costs, and analysis can be undertaken within each category’s n ambiguous ownership and operation of major market segment. Unless additional energy-specific energy assets. incentives are provided to investors, projects will Not all of these barriers will apply to every proj- be evaluated head-to-head against non-energy ect category and, conversely, some categories projects—but the energy projects will be perceived may experience additional challenges. However, as having a higher risk profile because financial addressing these potential impediments during the institutions tend to be unfamiliar with energy effi- planning process will reduce the risk that they later ciency projects. prevent the implementation of an energy efficiency Financing Barriers or emissions mitigation project. From a banking perspective, financial attractive- Using the categorization matrix, a like-for-like ness boils down to risk and return on investment comparison of financial risks and attractiveness is (ROI). Financing decisions are based on compari- possible within each project category. Comparing sons of investment options and an analysis of the projects across categories does not necessarily pro- trade-offs between the risks and returns expected vide insight into the best potential project options from those projects. However, the public sector because the criteria for financial viability will differ. must also incorporate socioeconomic goals into the decision-making process when considering the Determine Project Financial financial viability of a project. It is important that Viability this additional layer of complexity be acknowl- Broadly speaking, projects are financially viable edged when pursuing project financing. if the ROI reaches an agreed-on threshold, or Because sustainable energy and emissions “hurdle rate,� and the identified risks are tolerable management is still novel, streamlined mecha- and might be mitigated during implementation. nisms for financing associated projects are not yet Therefore, before financing options are identified, 68 | Sustainable Urban Energy and Emissions Planning Guidebook a thorough risk assessment and financial analysis must be undertaken. Tip 6.2 Technology Diffusion Risk Assessment Curve The level of risk associated with a project influ- ences the hurdle rate required to make the proj- ect viable. A city can encourage private sector investment by mitigating certain risk elements of a prioritized project, for example, by providing Innovators loan guarantees for initial seed funding of invest- Early Early Late ments or by fast-tracking regulatory permits. In adopters majority majority Laggards developing-world economies, the perceived risks Perceived Perceived higher risk lower risk are elevated, especially for newer technologies in the energy efficiency sector, and can lead to higher hurdle rates. Therefore, a city would be well served by developing favorable investment policies early Unique risks, by category, might include the in the project assessment phase that will mitigate following: key risks and thereby help to channel private sector n Technology risk: Is the technology proven? capital into prioritized projects. Technologies that appear in the early stages of Risk assessment is a critical component of proj- the adoption curve will incur higher risk premi- ect financing, but generic methodologies may not ums and inflated hurdle rates (see tip 6.2). apply to energy efficiency projects. The risk pro- n Timing risk: Is the project planning and con- file of the different categories of projects will also struction time too long or too short to attract vary considerably, so a custom approach will be the type of financing required? The availability required for each category. of financing must meet the timeline require- Generic risks commonly associated with energy ments of project cash flows. efficiency projects that should be considered during n Country risk: How does the perceived risk of the SUEEP process include (Covenant of Mayors, deploying capital in the host country impact 2010; and author’s experience) the following: investment decisions? The host country risk n Project-related risks: cost and time overruns, profile (credit ratings, GDP, consumer price poor contract management, contractual dis- index, corruption perceptions index, and the putes, delays in tendering and selection pro- like) will have an impact on the hurdle rate. cedures, poor communication between project n Regulatory risk: If incentives are offered, are parties they sustainable? What is the likelihood that n Government-related risks: inadequate approved regulation will be consistent into the future? project budgets, delays in obtaining permits, Risk assessments will incorporate a multitude of changes in government regulations and laws, lack project-specific elements that are difficult to gener- of project controls, administrative interference alize. Elements of the assessment identified above n Technical risks: inadequate design or technical will give a reasonable picture of the level of risk specifications, technical failures, poorer-than- attributable to each project type and therefore an expected performance, higher-than-expected understanding of the likely hurdle rate for each operating costs project. Once this is known, project-specific ROI n Contractor-related risks: poorer-than-expected analyses should be undertaken to enable bench- performance, higher-than-expected operating marking of project ROI rates versus investors’ costs required hurdle rates. This will determine the pro- n Market-related risks: increases in wages, short- posed project’s financial viability. ages of technical personnel, materials inflation, shortages of materials or equipment, variations in the price of energy carriers CHAPTER 6: implementation | 69 Return on Investment of financing. Although not comprehensive, and ROI analysis is typically undertaken to determine varying from country to country, examples of types whether investment capital deployed will deliver of financing available for certain project categories a return that meets an agreed-on hurdle rate. The are shown in the following diagram. ROI should be analyzed for every proposed proj- ect. The analysis will map project cash flows (costs Large Scale Small Scale vs. receipts) over the project’s lifetime to determine Decentralized Government intervention Development funding its overall profitability. Multistage or mezzanine Carbon finance Hurdle rates acceptable in the private sector, financing (Clean Development to a bank or financial institution, for example, are Mechanism) Initial public offering often different from those acceptable to a city. A private financial institution would not typically Structured finance accept an ROI lower than a government bond rate, Centralized (internal investment, Private equity whereas a city authority might consider invest- bond sale, or the like) Carbon finance ments with very low or even negative returns if the Traditional project finance socioeconomic benefits are significant. (debt or equity) If a project exceeds market-wide benchmark ROI, project financing options will be more plen- tiful. If it does not, additional incentives will be required to attract investments (see example 6.6). Example 6.6 Energy Efficiency Project Considerations In the majority of cases, the ROI for energy effi- ciency projects will not meet market-wide hurdle Project revenue Project return on investment (ROI) % rates because of the inherently high levels of per- Incentive (for example, carbon �nance) ceived risk. However, additional incentives might be available to these projects that do not exist in Hurdle rate (%) the wider market. These incentives may include The additional structured and nonstructured climate or energy incentive allows Technology 2 to efficiency schemes promoted by regional, national, surpass the hurdle or supranational governments, for example, car- rate and offer a more attractive bon credits or subsidies. Further information on revenue stream bridging the hurdle rate gap can be obtained from than Technology 1. the World Bank publication, Green Infrastructure Technology 1: Technology 2: Energy intensive Energy ef�cient Finance: Framework Report, 2012. Once the ROI analyses are complete, like-for- like comparisons of projects’ financial attractive- ness within categories may be undertaken and the Case Study 6.4: Maldives financing options can be considered. PUBLIC-PRIVATE PARTNERSHIP Consider Financing Options In May 2011, the government of Maldives, with the help of the World Bank as lead transaction adviser, implemented a solid waste City decision makers will use risk and ROI analy- management public-private partnership. The transaction was ses to assess proposed projects and determine how structured as a 20-year build-operate-transfer project and mobi- projects can best be financed. In some cases, the lized $50 million in private investment that will improve waste analysis will show that certain projects are not collection, transportation, and disposal; reduce marine and air pol- lution; and generate power through a 2.7 MW waste-to-energy viable. For those that are, cities must determine the plant. The project will benefit 120,000 people, process up to 70 most attractive sources of financing available to percent of the country’s solid waste, and reduce annual GHG them, plus the incentives that may be available (see emissions by 16,000 tons. This project supports the Maldivian gov- case study 6.4). The categorization of projects is ernment’s goal of becoming carbon-neutral by 2020, while help- ing it to comply with good global practices for the treatment and important for subsequent identification of sources disposal of solid waste. 70 | Sustainable Urban Energy and Emissions Planning Guidebook Case Study 6.5: TOKYO, Japan waterworks MAINTENANCE PLANNING Fees and charges are important to revenue-generating enterprises, such as water companies, in considering an appropriate level of reserve funding. (Reserve funds are used to meet unexpected costs that may arise, for example, emergencies, and for future needs.) The Tokyo Waterworks, which serves 12.5 million people in metropolitan Tokyo, finances operating expenses and capital expenditures by relying on water tariff revenues. Various reserve funds have been set aside to cover fluctuations in these costs. In 2011, the utility was facing the daunting task of replacing old water pipes. The project was to begin in nine years. The total investment is estimated to be ¥1 trillion (US$10 billion), which represents 40 percent of the utility’s total assets of ¥2.5 trillion (US$25 billion) in current yen. To meet this challenge, Tokyo Waterworks started identifying ways to level out the ¥1 trillion planned investment over a reason- able period by planning for maintenance and rehabilitation well ahead of the project and establishing a detailed construction plan. Meanwhile, the utility has already started accelerating debt repayments so that outstanding debt can be maintained at the current level of ¥0.5 trillion even after project financing has been undertaken. The accelerated repayments are being covered by water tariff revenues even though the Tokyo metropolitan government lowered the water tariff on January 1, 2005. The utility plans to finance the ¥1 trillion replacement project by implementing a reasonable tariff adjustment. Source: Suzuki, Hiroaki, Arish Dastur, Sebastian Moffatt, and Nanae Yabuki. 2010. Eco2 Cities: Ecological Cities as Economic Cities (Washington, DC: World Bank). Self Funding activities, privatization of city property, and state In many circumstances, self funding by a city may budget subsidies. See case study 6.5. appear simpler and less time consuming than Self-funded projects give a city the greatest level seeking outside funding. But if sources of price- of control over implementation, but also require competitive financing are available on the open the highest level of involvement and use of internal market, supported by risk-mitigating incentives, it resources. See case study 6.6. is often more efficient to take advantage of these funds. Then, city budgetary funds can be used for Generating Alternative Funds high-priority projects that were demonstrated to be City funds and resources are often not sufficient financially untenable. for energy efficiency projects requiring high capital If a city decides to implement energy efficiency expenditure or risk. In these cases external funding and emissions reduction projects using its own will be required and other means of financing must funds, financing most often will be drawn from be sought, such as credits, PPPs, leasing and con- revenues derived from fees and taxes, business cessions deals, third-party financing, donations, Case Study 6.6: VARIOUS CITIES LAMP ROLLOUT Many governments simply use their own funds to implement domestic compact fluorescent lamp (CFL) projects. These projects can be a “quick win� under energy efficiency and climate change policies. Cuba and South Africa, to name just two, have adopted this approach. However, international carbon finance can also be leveraged without the need for self-funding. CFL projects fall under the CDM methodology “AMS-II.C. ver. 9 - Demand-side energy efficiency activities for specific technologies.� So CFL projects are eligible for registration with the UNFCCC and can deliver Certified Emissions Reduction credits (CERs) equivalent to the emissions reduc- tions achieved. OSRAM lighting company and RWE Power registered three small-scale CFL CDM projects in 2009 using this methodology. The projects are all located in India, and will result in the issuance of approximately 27,000, 40,000, and 30,000 CERs per year. The development of the CDM Programmes of Activity (PoA) mechanism has further encouraged CFL projects. The first PoA registered with the CDM Executive Board, CUIDEMOS Mexico (Campana De Uso Intelegente De Energia Mexico, or Smart Use of Energy Mexico), was undertaken by a UK and Australian partnership and will lead initially to the issuance of 24,283 CERs per year. The PoA includes within the umbrella design document the capacity to deliver 520,365 CERs per year. CHAPTER 6: implementation | 71 and so forth. A key consideration for generating alternative or external funds is the time horizon for Resources 6.3 the availability of financing. Timing may be estab- finding financing resources lished in the early analysis of funding options. If funding timelines do not match project timelines, Numerous climate funds are available for carbon mitigation proj- ects but no single portal contains links to them all. However, some these sources should be discarded at an early stage good resources can be found on the internet: unless guarantees can be obtained from project www.climatefinanceoptions.org implementers that project-related timelines will be www.climateinvestmentfunds.org adhered to. If an ROI analysis shows that returns from a project will exceed a market-linked hurdle, private sector financing may be sought at prevailing mar- n funding timing and project milestones, ket rates. Private sector financing is often prefer- n required project delivery vehicle, able to energy efficiency–specific financing that has n credit ratings of potential investors and lenders, links to incentives, which may prove more time n securities required, consuming and costly to attain. n equity demands, and If an ROI analysis demonstrates that the pro- n ethical considerations. posed project is not competitive with projects in Project Delivery Vehicle nonenvironmental sectors, tailored financing may Thought should be given to the appropriate vehi- be sought from investors experienced in envi- cle for delivery of each project. This entity will be ronmental project risk and who have obligations linked to the method of financing; for example, to direct capital into certain market segments. if funds are sought for decentralized, small-scale Socially responsible investing (SRI) funds are a projects, a project-specific NGO might make the good example. SRI funds deploy capital according most efficient use of the funds because it would be to criteria that include environmental and social able to take advantage of particular tax-efficient performance indicators. The managers of these benefits. A cost-benefit analysis should be made of funds, although still hoping to achieve a good each delivery vehicle to ascertain the most efficient ROI, are more cognizant of project risk in the mechanism for the project category. Vehicles might environmental sector (see SRI Fund Portal Asia: include the following: www.asria.org). The SRI sector includes climate- specific and ecology funds (for example, Jupiter Large Scale Small Scale Ecology Fund, HSBC Global Investment Fund – Decentralized Climate Change), and fund managers have a more detailed understanding of energy efficiency project ESCO NGO risk, which can save valuable time. See resources Limited liability company Development organization 6.3 for additional options. Although it is not possible to list all options in this Guidebook, a few examples of alternative Centralized arrangements are identified in example 6.7. Special purpose vehicle ESCO (linked to utility or city) Private company Criteria for Assessing Funding Arrangements A wide variety of potential funding mechanisms are available for energy efficiency projects. A city Incentives must understand the criteria important to its assess- To counter any time or cost impacts of obtain- ment of financing options, which may include the ing financing specifically for environmental proj- following: ects, available incentives—which will vary by n cost of capital, project category—should be fully assessed. These n transaction costs, incentives can mitigate project risk and increase 72 | Sustainable Urban Energy and Emissions Planning Guidebook Example 6.7 alternative funding schemes Financing strategies commonly used to fund energy efficiency and emissions projects include the following: n Debt financing: The acquisition of funds by borrowing. n Equity financing: Funds are acquired by issuing shares of common or preferred stock in anticipation of income from dividends and capital gains. n Subordinated debt financing (mezzanine financing): Financing using capital that sits midway between senior debt and equity and has features of both kinds of financing. n Project financing: Project financing relies on a project’s cash flow expectations and spreads risk between different actors involved in the project. n Supplementary mechanisms: Governments close financing gaps, catalyze private investment, and accelerate energy effi- ciency market uptake via financial and nonfinancial interventions. n Revolving funds: These can include loans or grants and aim to be self-sustaining after the first capitalization. n Third-party financing schemes: An external party funds the energy efficiency scheme and takes on the risk. n Leasing: The city makes payments of principal and interest to the lending financial institution. This type of scheme includes capital leases and operating leases. n ESCOs: ESCOs finance energy savings projects and recover the investment through the contract period energy savings. n Public internal performance commitments: A department in the public administration acts similarly to an ESCO for another department. n Public-private partnerships: The public authority uses a concession scheme to enable the private sector to contract public projects. n Bonds: Energy efficiency and emissions projects are funded through city-issued bonds. n Commodity or commercial credits: A delay of payment is accepted in exchange for raw materials or goods. n Leasing of equipment: Equipment is leased to generate additional funds. n Climate Investment Funds: A US$6.4 billion facility that draws on the expertise of several multilateral development banks to help developing countries pilot low-emission and climate-resilient development (http://www.climateinvestmentfunds.org/ cif/). n Clean Development Mechanism: See example 6.8 Clean Development Mechanism and resources 6.4. n Global Environment Facility: Provides grants to developing countries and those with economies in transition for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and organic pollutants. n Policy-oriented private equity fund-of-funds: These are funds such as the Global Energy Efficiency and Renewable Energy Fund (GEEREF). GEEREF provides global risk capital through private equity investments for energy efficiency and renewable energy projects in developing countries. n Partial risk guarantees (PRGs): PRGs are particularly helpful in supporting energy efficiency projects that do not fall under traditional lending categories. This instrument is offered by the World Bank and covers private lenders or investors against the risk of a government (or government-owned) entity failing to perform its obligations with respect to a private project. In the case of default resulting from the nonperformance of contractual obligations undertaken by governments or their agen- cies in private sector projects, PRGs ensure payment and thereby significantly reduce the risk assumed by investors. PRGs are available for projects with private participation dependent on certain government contractual undertakings such as build- operate-transfer and concession projects, PPP projects, and privatizations. PRGs are available for both greenfield and existing projects. Sources: Adapted from Covenant of Mayors, 2010 (http://www.eumayors.eu/actions/sustainable-energy-action-plans_en.html); Joint Research Centre of the European Commission, 2010, “Financing Energy Efficiency: Forging the Link between Financing and Project Implementation;� MODEL, 2010 (http://energy-cities .eu/MODEL); AusAID; and the World Bank, 2012, Green Infrastructure Finance: Framework Report. the likelihood of attracting additional external 6.4), whereas nonstructured incentives might financing. Incentives often take the form of mez- include ad hoc loan guarantees from development zanine financing that ensures the project’s develop- organizations. ment while longer-term, more substantial project Incentives may be available at many levels, financing is sought. Incentives can originate from ranging from local tax incentives to national gov- regional, national, and supranational sources ernment subsidies and international development and be on a structured or nonstructured basis. seed funding. Technical assistance for accessing Structured incentives might include carbon cred- financing is also available, such as the CTI Private its, such as those from the Clean Development Finance Advisory Network (www.cti-pfan.net), Mechanism (CDM) (see example 6.8 and resources supported by the UN Framework Convention on CHAPTER 6: implementation | 73 Example 6.8 clean development mechanism project development The CDM is a specific alternative financing approach developed for projects that address climate change in developing nations. The CDM is an arrangement under the UNFCCC allowing industrial countries with GHG reduction commitments under the Kyoto Protocol to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries (ICLEI, 2009, Sustainable Urban Energy Planning: A Handbook for Cities and Towns in Developing Countries). (CDM is addressed separately from other alternative funding sources because it is applicable to many of the priority projects identified in energy and emissions plans.) The CDM allows emissions reduction projects in developing countries to earn CER credits, each equivalent to one ton of carbon dioxide. These CERs can be traded and sold, and can be used by industrial countries to meet a part of their emissions reduction targets under the Kyoto Protocol (UNFCCC at http://cdm.unfcc.int/faq/index.html). The CDM provides an additional incentive for financing environmental projects by allowing CERs to be traded at a market-determined price, as well as indirect advantages such as publicity value and lower risk perception, hence, lower cost of capital. Procuring CDM funding takes a number of stages, each involving different stakeholders. The CDM Executive Board (CDM EB), under the UNFCCC, plays a vital role at the registration and CER issuance stages. Projects must apply a preapproved project methodology (see figure), obtain an approval from the host party government, and undergo a series of independent audits by UN-approved designated operational entities (DOE) before registration by the CDM EB. This process is exceptionally transparent—all project design documents, including ROI analyses, must be published on the UNFCCC’s public website for review and comment by global stakeholders. Development consortium Project development channel Carbon development channel Project concept and �nancing Technology procurement Project Identi�cation Note Finance arrangement Project Design Document Commissioning plan and logistics Emission Reduction Purchase Agreement Government approvals Designated Operational Entities Construction Validation Commissioning Registration CDM Executive Board Performance monitoring Maintenance Veri�cation Sales Certi�cation Project revenue CER issuance The ongoing monitoring of emissions reductions is emphasized in CDM projects, and monitoring plans are core to any project design. The application of monitoring plans is central to the issuance of CERs. Verification of emissions reductions by DOEs are completed at the end of every monitoring period, and it is the DOE’s verification report that forms the basis of CER issuance requests made to the CDM EB. (continued on the following page) 74 | Sustainable Urban Energy and Emissions Planning Guidebook Example 6.8 (Continued) clean development mechanism project development Additionally, CDM PoAs allow project concepts to be registered with preapproved approaches to additionality assessments,a monitoring plans, emissions reductions calculations, and so forth. During the period in which the PoA is accruing credits, individual program activities can be included as separate small-scale projects. PoAs are intended to reduce transaction costs and development time for smaller-scale projects. Different program activities can be coordinated and managed by separate entities on the ground, but included in the same PoA. This is an efficient approach to implementing decentralized, small-scale energy efficiency projects while taking advantage of available carbon finance. Typically, carbon finance available for CDM projects will hinge on the project developer’s ability to secure an Emissions Reduction Purchase Agreement with a CER buyer. These agreements often consist of an agreed-on price for the future delivery of a stated volume of CERs during the project’s crediting period. If the agreement contains either a fixed price or a floor price for CERs, cash flows can be extrapolated for the project’s ROI analysis because emissions reduction estimates are available from the project design documents (taking into account monitoring and issuance risks). Many CER buyers are willing to make risk-adjusted, up-front payments for future CER deliveries, depending on the forward CER price curve. At present, the majority of CER demand originates in the European Union’s Emissions Trading System. The third phase of this scheme will begin in 2013 and conclude in 2020. The number of CERs eligible to enter the scheme is limited, but during the third phase any new CDM project that delivers CERs into the scheme must originate in a developing country. When considering CDM, cities must be aware of the exposures inherent in the process: n Conventional project exposures: cost overruns, market risks, counterparty credit risk, underperformance, currency risk, and force majeure n Host country exposures: confiscation, expropriation, and nationalization; civil war; contract repudiation or frustration; host country sovereign risk; administrative barriers; lack of institutional capacity in host country n CDM process exposures: CDM EB nonapproval; timing and delays; CER supply-demand dynamics; monitoring and verification risk; institutional barriers; CER legal ownership a. Additionality assessments demonstrate that a carbon reduction project actually reduces carbon emissions and that it would not have already been performed without the project’s intervention. Climate Change (UNFCCC). Such support can be consider what levels of incentives would attract quantified financially in ROI assessments. The level private sector financing into prioritized projects to of incentive will also vary by project category and achieve the goals set out in the sustainable urban potentially by market forces that dictate pricing. energy and emissions plan. Limited city financial Incentives may also be shaped to some extent resources can thus be leveraged to draw larger by the city itself to widen the availability of pri- external private sector investment. The diagram vate financing. City policy development should illustrates the incentives a city might offer. Large Scale Small Scale Resources 6.4 Soft loan CDM Funding Sources Grant Loan guarantee Subsidy Environmental credits The United Nations Adaptation Fund: The Adaptation Fund is financed through CDM project activities and other sources of funding. The share of proceeds amounts to 2 percent of CERs issued for a CDM project activity. Perform Due Diligence Once financing options have been considered and a Pure carbon funds: World Bank Prototype Carbon Fund; Certified finance provider engaged, due diligence will likely Emission Reduction Unit Procurement Tender; GTZ fund (German government development fund). be required by investors. Transparency in docu- mentation and process is essential to give a poten- Carbon equity funds: FE Clean Energy Group, Inc.’s Asian Clean Energy Services Fund; Asia Pacific Carbon Fund of the Asian tial investor confidence in claims that were made at Development Bank. the project financial viability stage. CHAPTER 6: implementation | 75 For example, investors are usually unfamiliar reliable methodologies, incentives are unlikely to with energy efficiency projects. If the methodology be granted. used to establish potential energy savings is not Parameter values used in ROI analyses must transparent and well documented, investors will be supportable with clear documentary evidence, not be able to understand the risks of the project preferably audited by reliable third parties. This and might well respond by withdrawing funds or will help to educate investors who are unclear requiring a higher hurdle rate to mitigate the per- on the specifics of energy efficiency projects and ceived risk. thereby help to mitigate perceived investment risks. Similar documentation will be necessary in Due diligence is the final step in identifying applying for incentives if the incentive is linked financing mechanisms and will be used by poten- to energy savings or GHG emissions reduction. tial investors to scrutinize management control Without clear documentation and application of over the project and the concomitant risk profile. Step 15 Roll Out Projects This step describes the process of rolling out proj- Developing Skills and Manpower ects once they have been identified, developed, and The planning and analysis for the SUEEP process funded. This is the last step in the implementation up to this point may have been accomplished by phase and may require months or years to accom- a few people in the energy task force, or by tech- plish, particularly for a major project. Although nical consultants. However, city government staff implementation processes for the various types of projects may differ (for example, incentive proj- ects, major projects, organizational development Example 6.9 programs, and policies and regulations), several Typical Incentive Project RollOut Plan standard factors should be considered as projects Publicize Project Availability are being rolled out. These are explored in Step 15. Set a level of publicity appropriate to the attractiveness of the See example 6.9 for a high-level rollout plan. incentive and demand for the project. Conduct radio ads for residential projects with large funding, for example. Or simply Identifying Needed Skills reach out directly to large industrial customers that might best It is important to acknowledge that new skills and take advantage of a small industrial energy project. time are critical to roll out and deliver the energy Select Applicants and emissions projects. City government depart- Develop an application submission and selection process that ments should not be expected to undertake new complies with city procurement rules. Be careful not to make the application process too onerous—you do not want the cost to projects on top of their existing tasks without train- apply to outweigh the benefit of the incentive. ing and additional manpower. The skills needed to Confirm Specifications implement each project should be identified. For Review final designs or purchase orders to confirm that the example, the personnel required to inventory street energy efficiency equipment conforms to the list of equipment lamps, research lamp types, and update a database for which incentives are provided. to implement a street lighting audit and retrofit Perform Audits project should be identified. Afterward, additional If the incentive project is based on a series of audits, for example, manpower requirements—beyond the standard hospitals or electrical substation transformer upgrades, perform street lighting maintenance team—to replace old the audits quickly and efficiently. You do not want to lose the best customers and you do want to capture the benefits. lamps with new high efficiency lamps should be estimated. Personnel requirements should also con- Validate Installation and Distribute Incentive Most incentive projects require a validation process in which the sider the qualifications and experience needed for managing organization verifies that the new equipment was each position. installed correctly so that the energy savings will actually occur. 76 | Sustainable Urban Energy and Emissions Planning Guidebook However, if they lack equipment, funding, or time Resources 6.5 to implement projects, even the best staff will not further reading on implementing be effective. It is therefore important to acknowl- projects edge that both resources and time are necessary to undertake new projects, and to make provisions to Financing Energy Efficiency: Lessons from Brazil, China, India, and Beyond. Taylor, Robert P., Chandrasekar Gavindarajalu, Jeremy enable adequate staffing to implement the sustain- Levin, Anke S. Meyer, and William A. Ward. 2008. able urban energy and emissions plan. Project Management will have primary responsibility for implementation An execution plan for each project and an over- and validation of projects—they are experts in their sight process that will ensure each step is delivered own systems and may need only minimal training on time and on budget should be developed. In to become project champions. More important, particular, managers should be made responsible they know how to get the bureaucracy to run. for the success of the project to ensure that agen- Staff may need one-on-one training from cies prioritize its implementation, rather than leave experts in the region who have implemented simi- it on the back burner while administering impor- lar projects. They may also attend relevant confer- tant day-to-day city services. ences and embark on study trips to learn about Communication Plan similar projects in the region. Communication with stakeholders occurs through- In-house training also provides an opportunity out the project development and implementation for city government staff from different disciplines stages. Affected stakeholders should be informed of and agencies to network, serving as a platform for their roles before projects are rolled out. To increase future collaboration. buy-in for the policy or to increase the uptake of Bringing in Skills and Manpower an incentive project, public outreach efforts can be Hiring new staff with special energy programming or extended even while the project is midway through sector experience may be the least expensive way to the implementation phase. Just as important, projects build capacity. Part of the new staff members’ assign- that are successfully completed should be publicized. ments could be to train those around them in new ways Monitoring and Reporting of thinking, procurement methods, or technologies. Project monitoring should be part of project design To keep a lid on budgets, contract staff may be and should commence, together with the collection the lowest-cost option for when a large number of of data and assessment of performance, when the employees are needed for a short time to execute a project is rolled out. Stakeholders should be aware portion of a project, such as an audit or equipment of the metrics used to measure success. inventory. Stay Positive Identifying Needed Resources Defining the “successful implementation� of the Skilled and motivated people are the most impor- project will be something only you can do, as the tant factors for the success of a rollout plan. leader of the city’s energy and emissions plan. Stay optimistic about the ways these projects can Tip 6.3 affect your city and that optimism will resonate critical success factors for projects with the stakeholders and community. Remember, although this is an “energy� plan, the wide reach Be sure to consider the following aspects when rolling and positive impacts of successful projects will be out each energy project: felt throughout your city, well beyond the realm of n Adequate skills and experience of staff energy and emissions. n Adequate funding Tip 6.3 summarizes the “must haves� of suc- n Clear success metrics n Clear line of responsibility for delivery cessful projects. n Time-based performance targets See resources 6.5 for additional information on n Political support and commitment implementing projects. n Communication plan for sharing successes and experiences Chapter 7 Monitoring and Reporting Regular collection, compilation, and understanding of the progress of the plan is critical to its success. The tasks outlined in this chapter focus on engagement with the leaders of the projects, working together to collect various levels of data and to understand what the data are revealing about the projects and the status of the city beyond just “energy.� Using the data, and the feedback from leaders of the projects and industry stakeholders, a city evaluates the progress of its program and decides on the stories to communicate in a status report to the city, stakeholders, and all interested parties. Step 16 Example 7.1 Collect Information three sample projects on Projects Three examples are used throughout this chapter to demonstrate how particular projects can be monitored and reported. The lead agency for the energy and emissions plan Project 1. Commercial Building Energy Code should continuously monitor the city’s overall The rollout, adoption, and enforcement of a commercial energy program and evaluate each project annu- building energy code, to mandate energy efficient ally. Coordination with implementing agencies and construction practices for new buildings and retrofits. Project 2. Bus Rapid Transit (BRT) System stakeholders is no small task, so successfully gath- The phased installation of a BRT line from a popular ering performance data will require planning and suburban residential neighborhood into the downtown, organization. Although progress will be monitored financial district of the city. in a variety of ways across projects and cities, the Project 3. Street Light Efficiency Project information will consist of hard data, anecdotes The phased installation of more efficient and well- designed (spaced and implemented) street lighting from end users, and stakeholders’ observations of throughout the city. outcomes as a result of the implementation of spe- cific projects. This section describes a series of tasks and Comparability of Data organizational actions that will lead to successful Chapter 3 described the need to establish data collection of data from the various projects. The trends and to ensure clarity about the source of examples can be referred to for clarity. See exam- data. This step builds on chapter 3 and requires the ple 7.1 to start. collection of data over similar time scales, bound- aries, and users so that trends can be established to Collect Project Data enable a city to assess its progress in implementing Specific hard data will have to be collected in each energy and emissions projects. See example 7.2. project operations phase. In some cases, data will be collected in the natural course of running the Creating Key Performance Indicators project (requiring little effort) and the annual data Chapter 3 describes how key performance indica- for that project can be collected in one meeting tors (KPIs) are established to track energy perfor- or report. In other cases, a variety of resources mance over time. Project-specific KPIs should also and additional data collection processes will be be established to demonstrate the performance of required to ensure that project data are sufficient individual projects. to measure progress. KPIs may be energy specific, but they should also be related to the underlying drivers of energy 77 78 | Sustainable Urban Energy and Emissions Planning Guidebook External Data Example 7.2 Although a city’s primary efforts will be to collect Data Collection for the Three Sample useful and accurate data and information from its Projects constituencies and stakeholders, data from external Project 1. Commercial Building Energy Code parties will also be needed. Priority projects could Electrical utility provides total electricity sold to affect not only the city, but regional or national commercial customers. The Department of Buildings policies and actions. Thus, the city will also have provides number of new buildings that have issued Building Code Compliance Forms and the total square to work with utility providers, national organi- footage of floor space. zations, and external stakeholders to ensure that Project 2. BRT System regional data (for example, electricity fuel mix, The Department of Transportation provides annual transportation trends, and larger-scale economic ridership counts, total annual passenger-kilometers, growth and trends beyond the city’s boundary) are annual fuel consumption and expenditure, and kilometers of new BRT operating in the year. collected as well. Project 3. Street Light Efficiency Project Street Lighting department provides an annual Assess KPIs against Targets inventory of all street lights, lamp types, total electricity Assessing KPIs regularly is critical to understand- consumption and expenditure, percentage of city streets ing the results of either a specific project or the lit, and total kilometers of streets lit. energy and emissions plan overall. See case study 7.1. KPIs should be assessed to determine whether or other city qualities, such as health or economic they meet the targets for a particular year. If the KPI development. The challenge for the energy task suggests that the targets will not be met, an effort force is to acknowledge these links between vari- should be made to find out why. Alternatively, if ous metrics and understand how they measure KPIs are easily met, then perhaps more aggressive progress in the context of the unique circumstances targets should be set. of the city. See example 7.3. Remember the Context Sometimes KPIs will require that data be com- Data alone do not indicate success or failure. Data bined in a way that ensures the appropriate metrics and KPIs have to be put into context. For exam- are used to track success, for instance, the denomi- ple, external factors such as population increases nator of a KPI, which allows for consistency over or boundary changes may have prevented targets time, such as area (gross square meters) or occu- from being met, affecting the KPI of a specific pants (riders). To be consistent with other KPIs that project. In such a case, insufficient efforts from the use similar denominators, the energy task force implementing agency were not the cause of the fail- should ensure that the denominator (for example, ure to make progress. Hence, establishing connec- occupant or area) is consistent for various metrics. tions between targets and the city’s context is key to assessing progress. See example 7.4. Example 7.3 Engage Stakeholders KPIs for the Three Sample Projects Although data are necessary for an understanding of performance levels and trends, qualitative infor- Project 1. Commercial Building Energy Code mation and feedback from stakeholders are crucial n Total megajoules per city occupant to assessing the success of a project. A city needs n Consistent census data for city population to consider which stakeholders to engage and to Project 2. BRT System what extent, based on the stakeholders’ influence n BRT riders per day, wait times, energy consumption per BRT passenger-kilometer on projects and on the effect projects have had on Project 3. Street Light Efficiency Project them. Feedback from a good sample of users, orga- n Megajoules saved (compared with business as usual) nizations, and industry leaders will help a city to n Total electric site lighting (calculated estimates in kWh understand and implement measures to improve of electricity per year) projects. See example 7.5. CHAPTER 7: monitoring and reporting | 79 Case Study 7.1: london, united kingdom congestion charging In 2003, London introduced a daily congestion fee for vehicles traveling in the city’s central district during weekdays. This fee was meant to ease traffic congestion, improve travel time and reliability, and make central London more attractive to busi- nesses and visitors. According to the city’s analysis, the program largely met its objectives. After four years of operation, traffic entering the charge zone was reduced by 21 percent; congestion, measured as a travel rate (minutes per kilometer), was 8 percent lower; and annual fuel consumption fell by approximately 3 percent. These changes translated into annual reductions of 110,000–120,000 tons of CO2, 112 tons of nitrogen oxides, 8 tons of particulate matter, and some 250 fewer accidents. The identified benefits exceeded the costs by more than 5 percent. In addition, the scheme brought a steady net revenue stream for transport improvements, of which 80 percent was reinvested in improving public bus operations and infrastructure. The city proved to be innovative and resourceful by ensuring key elements of the congestion-charging project were in place, including technical design, public consultation, project management, an infor- mation campaign, and impact monitoring. These factors led to the successful implementation of the project. Source: http://www.esmap.org/esmap/node/1279. Summarize and Learn encourage parties implementing projects to inten- A city selects projects not only to reduce energy use sify their efforts in attaining targets and goals. And or carbon emissions, but also because the projects success stories need not be based exclusively on the have the potential to contribute to realization of reduction of a city’s energy use and carbon emis- the city’s vision. It is important to emphasize the sions—contributions to a healthier and more eco- links between energy projects and the city’s wider nomically prosperous city can also be highlighted. goals and objectives. With data and feedback from See case studies 7.2 and 7.3. stakeholders in hand, key lessons can be learned and projects could be revamped to contribute to the overall success of the energy and emissions plan. Example 7.4 what data may reveal Find the Lessons Learned Data alone may show trends, but putting it into context for The energy leadership should now have a good idea stakeholders and end users will help to provide a clearer of the project’s challenges (planning, implementa- understanding of the drivers behind the data. tion, and enforcement) as well as of the factors Project 1. Commercial Building Energy Code that contributed to its success. Such information, Increased energy demand without an increase in the including key messages from the information col- number of commercial customers may be symptomatic of an increase in energy intensity for the city. Growing lected, should enable a city to draw lessons from economic development leads to lower-quality each project. commercial space being upgraded to higher-quality Although experiences differ across projects, les- (and higher-energy-using) commercial office space. sons learned from experiences in specific projects A moderate increase in energy demand accompanied by an increase in the number of customers suggests are at times relevant to other projects and differ- that lower-energy-using commercial clients are being ent audiences. Thus, sharing these lessons across attracted. relevant organizations will enable the city to ben- Project 2. BRT System efit from an all-encompassing view of the lessons Rider surveys may reveal whether an increase in public transportation has resulted in reduced energy use per learned across projects. Compiling the lessons person. learned and communicating them clearly to current Air quality reports in areas in which the BRT was and future leaders will drive future successes. implemented show that emissions are lower, based on records for the period before the BRT, suggesting that Highlight Key Success Stories car usage has been reduced. A well-executed plan to implement priority projects Project 3. Street Light Efficiency Project is likely to bear fruit. Although accomplishments As more streetlights are retrofitted with the new lamps, energy usage decreased. As an added benefit, areas during the first year of the energy and emissions with new lighting show safety increases. plan may be limited, sharing success stories will 80 | Sustainable Urban Energy and Emissions Planning Guidebook conversion factors should be clearly stated either in Example 7.5 the body of the report or in an appendix. Industry stakeholder engagement for sample technical leaders and even international groups projects referring to the energy and emissions plan and sta- Examples of stakeholders to interview when understanding tus reports will notice inconsistencies or alterations the impacts of these projects: to the data that falsely show successes, resulting Project 1. Commercial Building Energy Code in the loss of credibility of the city’s efforts in the n Real estate owners who have adopted the code or SUEEP process. advocacy groups who have agreed to support the code n Department of Buildings, which manages the project (Re)Defining Success n Utility providers Although data and information on projects in their n Local associations (American Society of Heating, Refrigerating and Air-Conditioning Engineers [ASHRAE], first year of implementation may be limited, efforts local professional engineering organizations, and should be made to collect as much as possible from others) all projects to provide snapshots of progress and to Project 2. BRT System evaluate the status of the overall energy and emis- n Department of Transportation, which manages the project sions plan implementation efforts. n Users (commuters) KPIs should be reviewed in conjunction with n Local businesses on the streets through which the BRT the wider city projections of growth and economic lanes run development, and vision and goal statements Project 3. Street Light Efficiency Project should be revisited. This may not be the time to n Parks department actually amend them—this task is a better fit for n Police department n Businesses on streets an upcoming version of the larger energy and emis- n General public sions plan. The data and information collection process will be a time to understand the congru- ity of “reality� (the current and trending quanti- Be Transparent and Honest, ties and qualities of the city) with the exercise of but Find the Wins projecting energy use based on the impact of the Stakeholders respect transparency and honesty. SUEEP team’s actions. Packaging the data will require significant effort, With a better understanding of the city’s capa- and assumptions on boundaries, time scales, and bility to achieve its target KPIs, previous definitions Case Study 7.2: curitiba, brazil bus rapid transit network The popularity of Curitiba’s BRT has effected a modal shift from automobile travel to bus travel. Based on 1991 traveler survey results, it was estimated that the introduction of the BRT had caused a reduction of about 27 million auto trips per year, saving about 27 million liters of fuel annually. Other policies have also contributed to the success of the transit system. Land within two blocks of the transit arteries is zoned for high density, because high density generates more transit ridership per square foot. Compared with eight other Brazilian cities of similar size, Curitiba uses about 30 percent less fuel per capita, resulting in one of the lowest rates of ambient air pollution in the country. As of 2010, about 1,100 buses were making 12,500 trips every day, serving more than 1.3 million passengers—50 times the number of 20 years ago. Some 80 percent of travelers use the express or direct bus services. Best of all, Curitibanos spend only about 10 percent of their income on travel—much lower than the national average. All data were provided by 10 private bus companies in partnership with the local department of transportation. This illustrates a multidisciplinary, comprehensive approach to an energy- and carbon-saving solution. Source: http://urbanhabitat.org/node/344. CHAPTER 7: monitoring and reporting | 81 Case Study 7.3: seattle, washington, USA street lighting efficiency program The publicly owned utility Seattle City Light successfully installed more than 6,000 street lights. The project is part of a plan to replace 41,000 residential street lights in Seattle by the end of 2014, a program that is already saving the city $300,000 per year (www.ledsmagazine.com/news/8/7/11). Once completed, the city council estimates a $2.4 million reduction in operating costs will be achieved. Edward Smalley, manager of streetlight engineering at Seattle City Light, said the decision to install light-emitting-diode-based street lighting was the result of the technology’s demonstrated illumination performance, controllability, and operational effi- ciency (48 percent energy savings), all needed to satisfy the city’s lighting needs. Council members were also swayed by the tre- mendous savings in maintenance costs. “Every two years, we would pay workers overtime to quickly replace the high-pressure sodium lamps before the winter came,� Smalley said. “Now that cost has been essentially eliminated.� Source: http://www.ledsmagazine.com/features/8/9/4. of success should be revisited to determine whether information are obtained—it is recommended that the data, trends, and information collected are suf- the vision or goal statements not be altered in haste. ficient and whether the original targets had been Now with the data and feedback in hand, the too ambitious or not ambitious enough. It may be story of the energy and emissions plan success can too early to redefine success until more data and be told. Step 17 Publish Status Report Data and information have been collected and suc- success stories and produce a report that attracts cesses have been outlined. This step now describes stakeholders’ (including financial institutions’) how to write and release an SUEEP status report. attention. If a third party is used, it will have to report to a representative on the energy task force Identify Reporting Entity or high-level mayoral staff member to ensure that Compiling information into a concise, well-format- the report is accurate and conveys messages that ted, and organized document requires significant the city government wants to spread. Production resources. To ensure responsibility for delivery of of the report commences once there is clar- the document, a group or an individual should be ity on the party responsible for delivery of the assigned to prepare the report. document. The most appropriate entity to lead prepara- tion and production of this report will depend on Scheduling the Report a city’s internal resources, skill sets, and structures. Many cities publish an annual status report for the This status report is jointly owned by the energy energy and emissions plan that reviews the out- task force and the person or agency that has been comes resulting from implementation of selected assigned to prepare it, with the latter acting as projects. If a city does not have the resources to “lead� to oversee all contributions and resourcing. publish an annual report, it could vary the format Sometimes a city hires third-party organiza- and timing for the release of data to still provide tions to compile the data, information, and key useful indicators of progress. 82 | Sustainable Urban Energy and Emissions Planning Guidebook Select Data and Draft Pull It All Together the Report Tip 7.1 gives an indicative list of contents generally expected in a successful status report. Although Use Illustrative Data formatting and style make the report more attrac- The task force should use appropriate metrics to tive, ensuring that the messages are clear and communicate the progress of the energy and emis- understood by the general public is key. Technical sions plan. An example may be the communica- terms should be explained and jargon should be tion of data at a project level (the results of a street minimized. The more important messages should lighting project, for instance). Alternatively, the be clear enough for a grade school student to task force may want to provide overarching infor- comprehend. mation on the energy and emissions plan (such as citywide reductions in carbon emissions). Release, Follow-Up, and This Guidebook suggests the type of data to Future Actions report, but an appropriate set of city-specific indi- cators should be used to communicate progress of Finalize and Release the Status Report The draft report should be reviewed and approved the energy and emissions plan, its component proj- before it is published. After all reviewers’ com- ects, and their impact on the city. ments have been dealt with, the report can be made Acknowledge Lessons Learned available in a variety of forms (see tip 7.2). The report should showcase success stories but Follow Up with Stakeholders also highlight the hard lessons learned and hurdles Stakeholders are crucial to the SUEEP process, and the city had to overcome. The report should then the release of the status report can be used as an propose actions to remediate shortcomings in the opportunity to strengthen relationships with them. plan. Special invitations to events, or photo opportunities Tip 7.1 typical contents of an SUEEP status report Every SUEEP status report is different, but the following is a typical table of contents covering the primary components of the report. Overview Project Updates Background and executive summary of the status of the plan. Elaborate on the success of the priority projects and perhaps Introduce goals, objectives, and important messages. discuss future actions. Energy Balance and GHG Inventory Lessons Learned Include the numbers, and tie them to the overarching goal state- Share challenges and obstacles that were overcome, as well ment. Details of the inventory should be included in an appendix. as key messages and “stories from the trenches.� Key Performance Indicators Appendices Link the GHG inventory and data collected for each project to n Inventories of processes and data the sector and project KPIs (as you see fit). Acknowledgment of reporting team and stakeholders n  who contributed to the report Major Highlights Document the fun facts, links to successes in other sectors, and qualities of the city that are changing for the better as a result of the energy and emissions plan. CHAPTER 7: monitoring and reporting | 83 with high-level staff, will reinforce the city’s appre- ciation of their participation in the SUEEP process. Tip 7.2 Media Outlets for Distribution of the Give Credit Where Credit Is Due Status Report Appreciation should be shown to city staff, includ- ing the members of the energy task force, who have There are several ways to communicate the results of the report and to release it: spent countless hours on the SUEEP process and implementation of the plan. Although city govern- Post report on website ments may not be able to match private sector sala- Prepare a PDF version of the report and post it on the city website. The website can highlight important messages and stories. ries, acknowledging the efforts of public employees helps to motivate the individuals who have chosen Hardcopy reports to drive change. Published copies should be sent to major stakeholders. Plan for Future Actions Public announcements Messages can be shared through press conferences, public The release of the first status report is a solid step, announcements, and on-site public engagement with stakeholders. but it is only the beginning of the city’s long and continuing journey toward attaining its vision of a Press releases Important stories, using testimonials about the impact of these sustainable future. City governments should main- projects, should be released to newspapers and local radio and tain the momentum and develop programs and TV stations. projects to ensure that future challenges can be tackled. See case study 7.4. Social media Popular social media platforms such as Facebook and Twitter can See resources 7.1 for more information on be used to spread important messages. monitoring and reporting. Case Study 7.4: portland, oregon, usa Reporting one year after the climate action plan Portland released a report showing the city’s progress toward reducing local carbon emissions and the status of efforts made in the first year of implementing the Climate Action Plan. The report outlines improvements in several sectors, and in the specific focal area of buildings and energy, the city’s Climate Action Plan contains four objec- tives for 2030: 1. Reduce total energy use of all buildings, 2. Achieve zero net GHG emissions in all new buildings, 3. Produce some energy from on-site renewable and clean district energy systems, and 4. Ensure that buildings can adapt to a changing climate. The “Highlights� section of the plan describes successes and ties program status to the objectives. The city also created an easy way to track the status of all the projects (or “Actions�) by developing a rating system, using col- ored dots to signify the following: RED: Action has not yet been initiated and/or little progress has been made YELLOW: Action is under way, but may face obstacles GREEN: Action is on track for completion by 2012 BLUE: Action is completed Source: http://www.portlandonline.com/bps/index.cfm?c=49989. 84 | Sustainable Urban Energy and Emissions Planning Guidebook Resources 7.1 monitoring and reporting references The following resources can help you to determine effective performance metrics and reporting processes. Examples of other cities’ annual status reports are given below. Singapore: Singapore Green Plan Measurement, Reporting and Verification (http://app.mewr.gov.sg/data/ImgCont/1342/sgp2012.pdf) City of Berkeley, CA: Climate Action Plan Metrics and Website Communication (http://www.cityofberkeley.info/climate/) New York, NY: PlaNYC Greenhouse Gas Inventory and Status Reports (http://www.nyc.gov/html/planyc2030/html/publications/publications.shtml) City of Fort Collins, CO: Climate Action Plan 2009 Status Report (http://www.fcgov.com/airquality/pdf/2009capstatus-sept2010.pdf) Papers Measurement, Reporting and Verification (MRV) of GHG mitigation (http://www.oecd.org/document/50/0,3746,en_2649_34361_42546674_1_1_1_1,00.html) “Mitigation Actions in China: Measurement, Reporting and Verification,� Fei Teng, Yu Wang, Alun Gu, Ruina Xu, Hilary McMahon, and Deborah Seligsohn. 2009. (Beijing, China: Institute of Energy, Environment and Economy, Tsinghua University; and Washington, DC: World Resources Institute). A Protocol The GHG Protocol is the most widely used accounting tool for government and business leaders for understanding, quantifying, and managing GHG emissions. (www.ghgprotocol.org) The Beginning As this Guidebook reaches your desk, proj- This Guidebook outlines a pathway, a framework, ects within your city are probably already ongo- and relevant tools that a city could use to effect ing—some version of an inventory may have been changes to promote a sustainable future. undertaken and leadership frameworks might have The steps summarized here are based on experi- been outlined. Only you, as a leader in your city ences gained through pilot studies and on industry will be able to outline a process, schedule, and an knowledge. This Guidebook serves as a platform overall energy and emissions plan that is compat- for cities to commence their own SUEEP processes, ible with your city’s needs and aspirations. It is a but the Guidebook alone is insufficient—each city big task, and help is available. must tailor its program to its own needs.