Interactive textbook at 54432 www.worldbank.org/pdt 2 Eco Cities Ecological Cities as Economic Cities Hiroaki Suzuki Arish Dastur Sebastian Moffatt Nanae Yabuki Hinako Maruyama Eco2 Cities 2 Eco Cities Ecological Cities as Economic Cities Hiroaki Suzuki Arish Dastur Sebastian Moffatt Nanae Yabuki Hinako Maruyama Washington, DC ©2010 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 E-mail: feedback@worldbank.org All rights reserved 1 2 3 4 :: 13 12 11 10 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 necessarily 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 judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. Eco2 Cities : Ecological Cities as Economic Cities is available as an interactive textbook at http://www.worldbank.org/pdt. The electronic version allows communities of practice, and colleagues working in sectors and regions, as well as students and teachers, to share notes and related materials for an enhanced, multimedia learning and knowledge-exchange experience. ISBN 978-0-8213-8046-8 eISBN 978-0-8213-8144-1 DOI 10.1596/978-0-8213-8046-8 Cataloging-in-Publication data for this title is available from the Library of Congress. Cover photo: Ricardo Almeida/SMCS Back cover photo: Arish Dastur Cover design: Naylor Design, Inc. TABLE OF CONTENTS Foreword xv Preface xvii Acknowledgments xxiii The Structure of This Book xxv Abbreviations xxvii Executive Summary 1 PART ONE: THE FRAMEWORK 11 Chapter 1: Ecological Cities as Economic Cities 13 Challenges and Opportunities Innovations in Urban Sustainability and Their Benefits Powerful Lessons from Best Practice Cities Opportunities to Capitalize Chapter 2: Eco² Cities Initiative: Principles and Pathways 29 The Many Challenges That Cities Face A Principled Approach That Can Overcome the Challenges The Move from Principles to Core Elements and a Unique Eco2 Pathway Chapter 3: A City-Based Approach 43 The Core Elements of a City-Based Approach Stepping Stones for a City-Based Approach Chapter 4: An Expanded Platform for Collaborative 51 Design and Decision Making The Core Elements of a Platform for Collaboration Stepping Stones for an Expanded Platform for Collaboration v Chapter 5: A One-System Approach 61 The Core Elements of a One-System Approach Stepping Stones for the One-System Approach Chapter 6: An Investment Framework That Values 89 Sustainability and Resiliency The Core Elements of Investment in Sustainability and Resiliency Stepping Stones for Investing in Sustainability and Resiliency Chapter 7: Moving Forward Together 103 Knowledge Sharing, Technical Assistance, and Capacity Building Financial Resources PART TWO: A CITY-BASED DECISION SUPPORT SYSTEM 107 Chapter 8: Methods for Collaborative Design and Decision Making 111 Organizing and Managing Collaborative Working Groups Developing a Shared Framework for Aligning Visions and Actions Conducting a Regional Systems Design Charrette Chapter 9: Methods for Analyzing Flows and Forms 123 Meta Diagrams and Material Flow Analysis Effective Overlay Mapping Chapter 10: Methods for Investment Planning 143 Life-Cycle Costing Environmental Accounting Foresight Workshops and Resiliency Planning PART THREE: THE FIELD REFERENCE GUIDE 165 Eco2 Case Studies 167 Case 1: Curitiba, Brazil Case 2: Stockholm, Sweden Case 3: Singapore Case 4: Yokohama, Japan Case 5: Brisbane, Australia Case 6: Auckland, New Zealand Eco2 Sector Notes 225 Sector Note 1: Cities and Energy Sector Note 2: Cities and Water Sector Note 3: Cities and Transport Sector Note 4: Cities and Solid Waste Managing the Spatial Structure of Cities vi | CONTENTS World Bank Group’s Financial Instruments and Multidonor Funds 329 Index 339 BOXES Box 1.1 The City-Based Approach Is Bottom-Up 45 Box 1.2 Combining Forecasts and Backcasts to Achieve Resiliency 56 and Sustainability Box 1.3 Combining Flows and Forms to Create a Transdisciplinary Platform 63 Box 1.4 Form and Flows 73 Box.1.5 Urban Land Pooling and Land Readjustment 84 Box 3.1 The Development Strategies of Stockholm 185 Box 3.2 The Measures in the CitySmart Program in Brisbane 214 Box 3.3 Examples of Grants and Rebates for Environmentally Sustainable 214 Home Projects in Brisbane Box 3.4 Eight Goals Direct the Auckland Sustainability Framework 222 Box 3.5 Energy Planning in Mannheim 235 Box 3.6 Public Agencies with Significant Influence on Electricity 237 Production, Distribution, and Use, California Box 3.7 An Extensive Solar Water Heating Program in Rizhao, China 241 Box 3.8 Improving Energy Efficiency, Reducing Energy Costs, and 246 Releasing Municipal Budgets Box 3.9 The Effect of Distribution System Configuration on Energy 257 Consumption Box 3.10 Conservation and Domestic Water Consumption, Canada 260 Box 3.11 Combined Water and Energy Activities in Water Supply 262 Management Box 3.12 The Watergy Case Study in Fortaleza, Brazil 263 Box 3.13 The Four Pillars of Sustainable Urban Transportation Institutions 273 Box 3.14 Transit-Oriented Development 278 Box 3.15 Emission-Based Road Pricing in Milan, Italy 280 Box 3.16 Beijing: Travel Demand Management and the Legacy of 280 the Olympic Games Box 3.17 Bus Rapid Transit 288 Box 3.18 Performance Metrics 301 Box 3.19 An Innovative Waste Collection Approach 303 Box 3.20 A Recycling Program Involving Citizens 303 Box 3.21 Waste Reduction through Stakeholder Engagement, Yokohama 305 Box 3.22 The Clean Development Mechanism and Waste Management 307 Box 3.23 Landfill Gas Capture and Use in Tianjin, China 308 Box 3.24 Using Various Climate Change Funds Simultaneously or 337 Sequentially Box 3.25 Citywide Greenhouse Gas Emission Reduction and Carbon Finance 337 CONTENTS | vii FIGURES Figure 1.1 The Hammarby Model, Stockholm: An Example of Integrated 20 Planning and Management Figure 1.2 Initial First-Phase Results of Hammarby Sjöstad according to 21 the Environmental Load Profile Life-Cycle Analysis Tool Figure 1.3 The Integrated Transportation Network, 1974–95 and 2009 22 Figure 1.4 A Possible Government Role: Administering a National Eco2 Fund 48 to Support Participating Cities Figure 1.5 The City’s Collaborative Working Group at Three Tiers: Corporate, 53 Municipal, and Regional Figure 1.6 Aalborg Charter 58 Figure 1.7 The Load Curve of a District Heating System 65 Figure 1.8 Cascading Water Use 66 Figure 1.9 Cascading and Looping Water in Singapore 67 Figure 1.10 Looping Resources 67 Figure 1.11 The Cluster Management of Waste 68 Figure 1.12 Distributed Systems 70 Figure 1.13 Uses of a Pedestrian Pathway 71 Figure 1.14 A Distributed System for Wastewater Treatment 71 Figure 1.15 Integrated Materials and Waste Management 72 Figure 1.16 Innovative Energy Infrastructure 72 Figure 1.17 Integrated Storm Water Management 72 Figure 1.18 Traditional Dwelling Supply Systems 72 Figure 1.19 Combined Trenching for Infrastructure Systems 73 Figure 1.20 A Broad View of the City Center of Houston 74 Figure 1.21 Urban Density and Transport-Related Energy Consumption 75 Figure 1.22 A Different Paradigm for Urban Design 76 Figure 1.23 Integrating the Benefits of Natural Systems in Communities 77 Figure 1.24 The Multiple Uses of a Public School 77 Figure 1.25 Time Rings 79 Figure 1.26 Shantigram Township before the Land Readjustment Scheme, 85 Gujarat, India Figure 1.27 Shantigram Township: Final Serviced Land Parcels for Sale, 86 Gujarat, India Figure 1.28 Summary of Resource Flows through London, 2000 93 Figure 1.29 Targeted Indicator Type, by Level of City Personnel 97 Figure 1.30 An Inflexible Energy System 99 Figure 1.31 An Adaptable Energy System 99 Figure 1.32 Financial Instruments 105 Figure 2.1 The Collaborative Model 112 Figure 2.2 The Collaborative Working Group 113 Figure 2.3 The Core Team and Sector Advisers 114 Figure 2.4 A Long-Term Planning Framework 115 Figure 2.5 Catalyst Projects 118 Figure 2.6 Design Workshop: Systems Design Charrette 119 Figure 2.7 A Regional Design Charrette 121 viii | CONTENTS Figure 2.8 A Sankey Diagram 124 Figure 2.9 An Example of a Meta Diagram 125 Figure 2.10 Baseline Water Flows for Irvine, California 126 Figure 2.11 An Example of a Countrywide Meta Diagram 127 Figure 2.12 Meta Diagram Patterns: Physical Flows 127 Figure 2.13 Meta Diagram for Jinze, Shanghai: The Current Energy System 128 Figure 2.14 Meta Diagram for Jinze, Shanghai: An Advanced System 128 Figure 2.15 A Schematic for a Downtown Neighborhood 129 Figure 2.16 Meta Diagrams on Energy for a Proposed New Town 130 Figure 2.17 Annual Energy Use as an Indicator in Squamish, Canada 131 Figure 2.18 Approaches to the Development of Meta Diagrams 131 Figure 2.19 Auditing Reference Buildings to Create a Meta Diagram 132 Figure 2.20 Sample Universal Flow Matrix for Water 135 Figure 2.21 Layering Data 136 Figure 2.22 Overlay Mapping 137 Figure 2.23 An Example of an Overlay Map Used for Risk Assessment 138 Figure 2.24 An Example of an Overlay Map of Renewable Energy Sources 139 Figure 2.25 Community Viz 140 Figure 2.26 The Life Cycle of a Building 144 Figure 2.27 Baseline Low-Density Scenario Developed Using a Mask 147 Figure 2.28 Baseline Scenario: Initial Capital Costs 148 Figure 2.29 Baseline Scenario: Annual Operating Costs per Unit 149 Figure 2.30 Baseline Scenario: Graphic Representation of Initial Capital Costs 149 and Annual Operating Costs per Unit Figure 2.31 Baseline Scenario: Representation of True Life-Cycle Costs, 149 Including Replacement Figure 2.32 Baseline Scenario: Graphic Representation of True Life-Cycle Costs 150 Figure 2.33 Baseline Scenario: Estimate of Taxes, User Fees, and Initial 150 Development Cost Charges Figure 2.34 Sustainable Neighborhood Scenario: Initial Capital Costs per Unit 151 Figure 2.35 Sustainable Neighborhood Scenario: Annual Operating Costs per Unit 151 Figure 2.36 Sustainable Neighborhood Scenario: Graphic Representation of 151 Initial Capital Costs and Annual Operating Costs per Unit Figure 2.37 Sustainable Neighborhood Scenario: Representation of 152 True Life-Cycle Costs, Including Replacement Figure 2.38 Sustainable Neighborhood Scenario: Graphic Representation of 152 True Life-Cycle Costs Figure 2.39 Sustainable Neighborhood Scenario: Estimate of Taxes, User Fees, 152 and Initial Development Cost Charges Figure 2.40 Comparison of Baseline and Sustainable Neighborhood Scenarios: 153 Initial Capital Costs Figure 2.41 Comparison of Baseline and Sustainable Neighborhood Scenarios: 153 Annual Operating Costs Figure 2.42 Comparison of Baseline and Sustainable Neighborhood Scenarios: 153 Annual Municipal Costs and Necessary Revenues over 75 Years CONTENTS | ix Figure 2.43 Comparison of Baseline and Sustainable Neighborhood Scenarios: 154 Annual Life-Cycle Costs per Household Figure 2.44 RETScreen Software 155 Figure 2.45 An Example of a RETScreen Financial Summary 156 Figure 2.46 An Example of a RETScreen Financial Summary Visual 157 Figure 2.47 The Environmental Load Profile 158 Figure 2.48 ELP-Related Achievements in Hammarby Sjöstad 159 Figure 2.49 Opportunities to Reduce Environmental Impacts 160 Figure 2.50 Template for an Influence Diagram 163 Figure 3.1 Curitiba Cityscape 169 Figure 3.2 Policy Integration in Curitiba 170 Figure 3.3 Urban Growth Axes in Curitiba 171 Figure 3.4 Density of Curitiba, 2004 171 Figure 3.5 Zoning in Curitiba, 2000 171 Figure 3.6 Evolution of the Integrated Bus Network in Curitiba, 172 1974–95 and 2009 Figure 3.7 The Trinary Road System in Curitiba 172 Figure 3.8 Bi-articulated BRT Bus and Bus Station in Curitiba 174 Figure 3.9 Color-Coded Buses in Curitiba 174 Figure 3.10 Barigüi Park, Curitiba 175 Figure 3.11 Slums in Flood-Prone Areas in Curitiba 175 Figure 3.12 The Transfer of Development Rights for Environmental 176 Preservation in Curitiba Figure 3.13 Curitiba’s Waste Program 177 Figure 3.14 Illegal Occupancy in Curitiba 178 Figure 3.15 Social Housing in Curitiba 179 Figure 3.16 The Transfer of Development Rights for Social Housing in Curitiba 179 Figure 3.17 Pedestrian Streets in the Center of Curitiba 179 Figure 3.18 The Transfer of Development Rights for Heritage Preservation 180 in Curitiba Figure 3.19 The Green Line 180 Figure 3.20 Stockholm Cityscape 183 Figure 3.21 The Hammarby Model for Stockholm 189 Figure 3.22 Monitoring Major Reductions in Environmental Loads, 190 Hammarby Sjöstad Stockholm Figure 3.23 Local Investment Subsidy Program Funding across Types of 191 Projects in Sweden Figure 3.24 Stockholm Royal Seaport: Vision of a New City District 192 Figure 3.25 Singapore Cityscape 195 Figure 3.26 A Green Area in Singapore 197 Figure 3.27 A Closed Water Loop in Singapore 199 Figure 3.28 The Yokohama Waterfront 205 Figure 3.29 Public Awareness Campaigns for Waste Reduction and Separation 207 in Yokohama Figure 3.30 Waste Reduction in Yokohama, Fiscal Years 2001–07 208 Figure 3.31 The Waste Flow in Yokohama, Fiscal Year 2007 208 Figure 3.32 Auckland Harbor Viewed from the East 208 x | CONTENTS Figure 3.33 The START Logo 220 Figure 3.34 Strategic Planning among Many Stakeholders at a Three-Day 221 Regional Charrette, New Zealand Figure 3.35 The Auckland Sustainability Framework 223 Figure 3.36 A Stylized Framework for Urban Energy Planning and Management 230 Figure 3.37 Urban Energy Supply Sources and Systems: A Stylized Sketch 234 Figure 3.38 New York City: Key Stakeholders in Electricity Supply 238 and Consumption Figure 3.39 Urban Density and Transportation-Related Energy Consumption 247 Figure 3.40 The Input-Output Framework in the Water Sector 252 Figure 3.41 The Institutional Setup in the Water Sector 255 Figure 3.42 Schematic Diagram of a Water System 256 Figure 3.43 Area at Risk If There Were a 0.5-Meter Rise in Sea Level in Asia 258 Figure 3.44 Changes in the Annual Mean Daily Precipitation Expected by 2100 258 Figure 3.45 The Stakeholder Dynamics and Accountability Triangle 264 Figure 3.46 Savings in the Supply of Water 264 Figure 3.47 The Input-Output Framework of Transportation Interventions 268 Figure 3.48 Average New Vehicle Fuel Economy Standards 271 Figure 3.49 The Structure of the Integrated Public Transportation Network 276 in Curitiba, Brazil Figure 3.50 A Locality in the State of Colorado 277 Figure 3.51 A Pedestrian-Friendly Street in Curitiba, Brazil 279 Figure 3.52 An Example of Microdesign and Walking Isochrones 279 Figure 3.53 The Benefits under Speed Conditions of Select Highway 284 Applications of Intelligent Transportation Systems Figure 3.54 Classification of Intelligent Transportation System Market Packages 284 Figure 3.55 Elements of Utility in Models for Choosing a Transportation Mode 289 Figure 3.56 Curitiba: Terminal Carmo, Adjacent Shops, and Citizenship Street 289 Figure 3.57 The Amount of Roadway Used by the Same Passengers 291 Traveling by Car, Bicycle, or Bus Figure 3.58 The Input-Output Framework of a Waste Management System 296 Figure 3.59 Waste Hierarchy 298 Figure 3.60 Waste Sorting Plant and Windrow Composting Operation, Cairo 304 Figure 3.61 A Compactor Operating on a Landfill 304 Figure 3.62 Central Electricity Generation Facility and Flare for Landfill Gas, 304 Tianjin, China Figure 3.63 Spatial Structures and Trip Patterns 313 Figure 3.64 Parking Space as Real Estate at Marina Towers, Chicago 315 Figure 3.65 Car Space Requirements and Available Space Densities 315 Figure 3.66 A Three-Dimensional Representation of the Spatial Distribution of 317 Population, Gauteng and Metropolitan Jakarta, Indonesia, 2001 Figure 3.67 The Profile of Built-Up Areas in 12 Large Metropolises 320 Figure 3.68 The Affordability of the Minimum Plot Size in Suburban Areas, 323 Addis Ababa Figure 3.69 Sharing Larger Plots among Lower-Income Households, 325 in Sebokeng, Gauteng, South Africa CONTENTS | xi MAPS Map 3.1 Location of Curitiba 170 Map 3.2 Location of Stockholm 184 Map 3.3 The Inner City of Stockholm and Adjacent Development Areas 186 Map 3.4 Master Plan of Hammarby Sjöstad, Stockholm 187 Map 3.5 Location of Singapore 196 Map 3.6 Location of Yokohama 206 Map 3.7 Location of Brisbane 214 Map 3.8 Location of Auckland 219 Map 3.9 Singapore Metro Network: Centered on Expansion in the Central 321 Business District TABLES Table 1.1 The Eco2 Cities: Principles and Pathways 39 Table 1.2 Impacts of Government Actions on Land Markets, the Size of 82 the Informal Sector, and the Spatial Structure of Cities Table 1.3 A Design Assessment Matrix 94 Table 1.4 Sample Indicators in the Four Capitals Approach 96 Table 2.1 A Policy Matrix 120 Table 2.2 Sample Forms for the Collection of Standardized Data on 134 Water Flows Table 2.3 City of Fort St. John: Comparative Statistics for Two Scenarios 147 Table 3.1 The Time and Fuel Losses Caused by Congestion 173 Table 3.2 Water Tariffs in Singapore 200 Table 3.3 Water Consumption and Water Bills per Household, 1995, 201 2000, and 2004 Table 3.4 The Power of Stakeholder Engagement in Yokohama, Fiscal Years 206 2001–07 Table 3.5 Waste in Yokohama, Fiscal Years 2001–07 207 Table 3.6 CO2 Reduction through Waste Reduction, Fiscal Years 2001–07 209 Table 3.7 Greenhouse Gas Emissions and Electricity Use by the Brisbane 215 City Council, Fiscal Years 2005–08 Table 3.8 Energy Consumption in Cities: Main Sectors and Clusters 231 Table 3.9 Energy Consumption in Cities: Key End Use Activities and 232 Energy Types Table 3.10 Energy Policies and Regulations and Links to Cities 236 Table 3.11 The Indicative Economics of Sustainable Energy Options 240 Table 3.12 Sustainable Urban Energy Indicators and Benchmarks: 242 Preliminary Proposal Table 3.13 Typical Barriers to Public Sector Sustainable Energy Investments 243 Table 3.14 A Comparative Economic Analysis of Selected Streetlighting Systems 245 Table 3.15 Water Sector Management Systems 253 Table 3.16 The Policy, Legislative, and Regulatory Framework Affecting 254 the Water Sector Table 3.17 The Typical Objectives or Desired Outputs of Transport Interventions 269 xii | CONTENTS Table 3.18 Urban Transportation Outcomes in Selected Cities 269 Table 3.19 Policies, Legislation, and Regulations Affecting the 270 Transportation Sector Table 3.20 Institutional Functions and Jurisdictions in Transportation 272 Table 3.21 The Framework of Transportation Interventions 274 Table 3.22 Basic and Advanced Transportation Interventions 274 Table 3.23 Type of Development and the Implications for Transportation 282 Table 3.24 Mobility Infrastructure Hierarchy 282 Table 3.25 Elements of a Public Transportation Network 283 Table 3.26 Summary of Select Vehicle and Fuel Interventions 285 Table 3.27 CO2 Emissions from a Range of Vehicle Types 286 Table 3.28 Basic and Advanced Stakeholder Interests 286 Table 3.29 Economic and Financial Aspects 287 Table 3.30 Summary of Cross-Sector Integration Opportunities 292 Table 3.31 Waste Generation Rates 297 Table 3.32 The Composition of Waste by the Waste Producer’s Income 297 Table 3.33 The Impact of Government on Land Markets, the Informal Sector, 318 and the Spatial Structure of Cities Table 3.34 World Bank IBRD Loans/IDA Credits: Specific Investment 330 Loans Table 3.35 World Bank IBRD Loans/IDA Credits: Subnational Development 330 Policy Lending (DPL) Table 3.36 World Bank Group Financing: Joint World Bank–IFC 331 Subnational Finance Table 3.37 World Bank Group Financing: IFC Financing and Services 332 Table 3.38 World Bank Group Financing: MIGA Guarantees 332 Table 3.39 Multidonor Funds—Climate Investment: 333 Clean Technology Fund (CTF) Table 3.40 Multidonor Funds—Climate Investment: 334 Strategic Climate Fund (SCF) Table 3.41 Multidonor Funds—Global Environment Facility (GEF) 335 Table 3.42 Market-Based Instruments: Carbon Finance Carbon 336 Partnership Facility (CPF) CONTENTS | xiii Foreword U rbanization in developing countries is The Eco2 Cities Initiative appears at a criti- a defining feature of the 21st century. cal historic juncture in relation to this chal- About 90 percent of global urban lenge and opportunity. This book, which growth now takes place in developing coun- marks the launch of the Eco2 Cities Initiative, tries, and, between 2000 and 2030, the entire sends a positive message. The knowledge and built-up urban area in developing countries is expertise to resolve these challenges exist, projected to triple. Urbanization has enabled and forward-thinking cities in developed and economic growth and innovation across all re- developing countries have already applied gions, currently accounting for three-quarters this knowledge to make the most of the op- of global economic production. At the same portunities. Many cities have shown that cost time, urbanization has also contributed to en- is not a major barrier to accomplishing urban vironmental and socioeconomic challenges, sustainability. including climate change, pollution, conges- The Eco2 Cities Initiative is an integral part tion, and the rapid growth of slums. of the new World Bank Urban Strategy that Global urban expansion poses a fundamen- was launched in Singapore in November 2009. tal challenge and opportunity for cities, na- The Eco2 Cities Initiative is also complemen- tions, and the international development tary to the ongoing efforts the World Bank and community. It sets forth before us a once-in-a- its development partners have undertaken in lifetime opportunity to plan, develop, build, sustainable development and climate change. and manage cities that are simultaneously Cities are now on the front line of the man- more ecologically and economically sustain- agement of change and are playing a leading able. We have a short time horizon within role in the global development agenda. It is which to affect the trajectory of urbanization only through cities that the challenges of pov- in a lasting and powerful way. The decisions erty reduction, economic growth, environ- we make together today can lock in systemic mental sustainability, and climate change may benefits for current and future generations. be addressed together. Sustainable city plan- xv ning, development, and management can unite able cities to make the most of their opportuni- these objectives and link them to activities at ties in effective, creative, and holistic ways, the local, regional, national, and global levels. thereby ensuring a more meaningful and sus- We believe the Eco2 Cities Initiative will en- tainable future. xvi | FOREWORD Preface T his book provides an overview of the environment, while improving the overall World Bank’s Eco2 Cities: Ecological well-being of their citizens and the local econ- Cities as Economic Cities Initiative. omy. Ecological cities also learn from and in- The objective of the Eco2 Cities Initiative is corporate management and design solutions to help cities in developing countries achieve that arise from the efficient and self-organizing a greater degree of ecological and economic strategies used by ecosystems. sustainability. What Do We Mean by What Do We Mean by Economic Cities? Ecological Cities? Economic cities create value and opportuni- Ecological cities enhance the well-being of ties for citizens, businesses, and society by ef- citizens and society through integrated urban ficiently using the tangible and intangible planning and management that harness the assets of cities and enabling productive, inclu- benefits of ecological systems and protect and sive, and sustainable economic activity. nurture these assets for future generations. Often, when people talk about economic Ecological cities strive to function harmo- cities, they are referring to a narrower defini- niously with natural systems and value their tion of productive cities that is driven by a sin- own ecological assets, as well as the regional gular emphasis placed on the indicator of GDP. and global ecosystems on which we all depend. While productivity is certainly an attribute of Through their leadership, planning, policies, economic cities, it is not the only attribute, and regulations, institutional measures, strategic the short-term and excessive pursuit of pro- collaborations, urban design, and holistic long- ductivity often displaces fundamental social term investment strategies, they drastically and cultural considerations and may under- reduce the net damage to the local and global mine longer-term economic resilience. In xvii some cases, an overemphasis on productivity How Does the Eco² Cities overshadows our basic value systems and ex- Initiative Work? poses us to substantial and systemic risk, as evidenced in the causes and consequences of The World Bank’s Eco2 Cities Initiative is a the current global economic crisis. We propose broad platform that provides practical, scal- a more balanced notion of economic cities able, analytical, and operational support to whereby the emphasis falls on sustainable, in- cities in developing countries so they may har- novative, inclusive, and resilient economic ac- ness the benefits of ecological and economic tivity within the context of a larger cultural sustainability. and value system. The publication of this book marks the com- pletion of the first phase of the initiative: the development of the analytical and operational So What Do We Mean by framework. This framework may be applied by an Eco² City? cities in developing countries to work system- atically toward the positive results we have As the name implies, an Eco2 city builds on the outlined earlier and throughout the book. As a synergy and interdependence of ecological sus- framework, it provides a point of departure and tainability and economic sustainability and the needs to be customized to the particular con- fundamental ability of these to reinforce and text of each city. strengthen each other in the urban context. Following careful assessments of cities that Innovative cities have demonstrated that, have benefited tremendously by undertaking supported by the appropriate strategic approach, this sort of approach and also following de- they are able greatly to enhance their resource tailed examinations of the major challenges efficiency by realizing the same value from a that have prevented most other cities from ac- much smaller and renewable resource base, complishing similar achievements, the frame- while decreasing harmful pollution and unnec- work has been structured around four key essary waste. By achieving this, they improve the principles that have been found to be integral quality of the lives of their citizens, enhance to lasting success. These principles are the their economic competitiveness and resilience, foundation upon which the initiative is built. strengthen their fiscal capacity, provide signifi- They are (1) a city-based approach enabling lo- cant benefits to the poor, and create an enduring cal governments to lead a development process culture of sustainability. Urban sustainability of that takes into account their specific circum- this kind is a powerful and enduring investment stances, including their local ecology; (2) an ex- that will pay compounding dividends. In a rap- panded platform for collaborative design and idly paced and uncertain global economy, such decision making that accomplishes sustained cities are most likely to survive shocks, attract synergy by coordinating and aligning the ac- businesses, manage costs, and prosper. tions of key stakeholders; (3) a one-system ap- It is for the purpose of enabling cities in de- proach that enables cities to realize the benefits veloping countries to realize this value and of integration by planning, designing, and man- take on a more rewarding and sustainable aging the whole urban system; and (4) an in- growth trajectory that the Eco2 Cities Initia- vestment framework that values sustainability tive has been developed. and resiliency by incorporating and accounting xviii | PREFACE for life-cycle analysis, the value of all capital term and narrow accounting frameworks for assets (manufactured, natural, human, and so- decision making; the challenges of political cial), and a broader scope for risk assessment economy, governance, and individual political in decision making. agendas; locked-in relations among networks A set of core elements has been derived of public and private institutions and subopti- through these principles. Each city may trans- mal technological systems and operating sys- form the core elements into a series of concrete tems; misconceptions and misinformation action items or stepping stones that should about the true, complete, and long-term costs take into account local conditions and follow a and benefits; and a general human inertia that logical sequence. Together, these stepping is resistant to change. stones enable a city to develop its own unique The list is daunting, but these challenges are action plan and sustainability pathway. precisely why a more systematic approach such In this context, the ideal situation arises as Eco2 is needed. Clearly, taking on all the chal- when a city adopts the four key principles, ap- lenges at the same time will not be possible for plies the analytical and operational framework most cities, and they will need to adopt an in- to its particular context, and, by doing so, de- cremental, phased approach. Often, a multisec- velops and begins to implement its own sus- toral approach will need to be crafted in stages tainability pathway. by building upon a sectoral intervention. Cities Cities may begin incrementally by engaging will need to be creative in how they navigate in capacity building and data management and their transformations. by initially targeting their most critical priori- It is reassuring to note that many cities, in- ties through the development and implemen- cluding those in developing countries, have tation of a catalyst project. Unlike stand-alone grappled with similar issues and managed to projects in resource efficiency, a catalyst proj- overcome them over time through strategic, in- ect is distinguished by an explicit objective and cremental, and purposefully chosen interven- ability—beyond the immediate project scope tions. It is only by considering these challenges, and objectives—to drive the city forward on its together with the valuable ground-level lessons sustainability pathway by catalyzing the pro- from best practice cities, that we have framed cess of change. our strategic response. Challenges Need to Be Overcome Building on a Rich Legacy It is important to understand the many chal- The Eco2 Cities Initiative builds on a rich and lenges that cities will face in trying to adopt a diverse legacy and seeks to reinforce successful more well integrated, long-term approach. concepts of city building and urban manage- They include technical, administrative, and fi- ment found in every region of the world. In nancial capacity constraints, coupled with the many instances, ancient cities and settlements chronic problems faced by city management; in Africa, Asia, Europe, the Middle East, and institutional barriers ranging from the frag- South America were characterized by a strong mentation of responsibilities and incentives understanding of and respect for nature. The across a wide a range of stakeholders to short- industrial revolution of the 19th century made PREFACE | xix possible a great expansion in urban areas and a the complex, multipurpose features of natural fabulous increase in material wealth, but there ecologies. Eco2 refers not only to a fusion of were many negative consequences for the en- economic and ecological strategies, but to a vironment and the quality of life. It triggered step forward in the long path toward a com- the birth of modern urban planning. The ideas plete and lasting approach to sustainable de- of Ebenezer Howard and Patrick Geddes in the velopment. It is an evolving concept, and we 1890s represented attempts to define how rap- hope to collaborate with cities around the idly growing cities might achieve greater har- world for ideas and perspectives on ways to mony with surrounding regional ecologies and improve and deepen this concept. improve social conditions at the same time. Howard’s Garden City solution is perhaps the most enduring planning concept of the 20th How Will the Eco2 Cities Initiative century. Since then, there have been many pio- Evolve? neers across the world responsible for various movements pertaining to this theme: regional The implementation phase of the Eco2 Cities planning; new towns; greenbelt cities; design Initiative has begun with the release of this with nature; ecological planning; the new ur- book. The Initiative will focus on the applica- banism; green infrastructure; and, most recent- tion of the framework in specific pilot cities and ly, the shift toward Local Agenda 21, triple the creation of a community of practice en- bottom-line full-cost accounting, and low car- abling practitioners at the city, country, region- bon cities. ICLEI–Local Governments for Sus- al, and global levels to learn from one another. tainability, founded in 1990, has emerged as a It will also include scaling up and mainstream- major international force in this area. ing the approach through national programs The specific term eco city, in use since the and capacity building. early 1970s, has been loosely used to refer to Application in the real world will initially re- cities that adopt any combination of environ- quire effort and commitment. It will require mentally progressive measures, such as achiev- political will, leadership, capacity building, col- ing a greater percentage of green space for laboration, institutional reform, and even a new residents, constructing a pedestrian- and tran- process for creative design and decision mak- sit-friendly transportation system, or requiring ing. Ideally, reform-minded city leaders will buildings to become more energy efficient. In strive to undertake a comprehensive approach. an attempt to define more clearly what eco city Other cities may seek to start a change process means, some countries, including China, have through strategic and catalytic actions. The now codified standards for green buildings and deeper and more comprehensive the approach, for ecological cities. the more profound the changes. The successful The many waves of interest in ecological cit- application of such an initiative may prove to be ies have helped the concept mature and evolve. transformative in a city. Such transformations From this perspective, Eco2 city is a useful term have already occurred in the inspiring cases the for recognizing a new generation of eco cities reader encounters through this book. The Eco2 that move beyond individual, stand-alone initiative is intended to provide the support green measures to a systems perspective sup- that cities need to make their own transitions. ported by long-term, full-cost accounting. It As we begin to apply the framework, diver- requires that a city be understood as a whole sity among the conditions and contexts of the and that design solutions incorporate some of first set of pilot cities (city size, national con- xx | PREFACE text, geographical conditions, socioeconomic Projects are not the only opportunity for conditions, institutional frameworks, fiscal ca- mainstreaming. A critical step forward in pacity, and so on) will provide a broad and rich mainstreaming will involve deepening and platform for assessing the value of the frame- customizing the ownership of the agenda in work in different circumstances, and we will each country through supportive national pol- continue improving our approach based on the icy and sustained capacity building. This may feedback and the experience. include arrangements with a range of stake- It is evident that a city-by-city approach is holders, including local planning institutes important as we test Eco2 and learn from the around the world, such as the Institute for Re- ground-level experiences of each case. How- search and Urban Planning of Curitiba, Brazil. ever, given the magnitude and rate of urbaniza- As we continue to work toward our com- tion, we will not be able to achieve the desired mon objectives, the Eco2 Cities Initiative will global impact within the window of opportu- evolve and grow as new knowledge, methods, nity currently open to us if we limit ourselves tools, and resources become available. As we to a city-by-city approach. Accordingly, we will forge new partnerships and work with more aim at mainstreaming and scaling up the Eco2 cities, new possibilities and innovative ideas Cities Initiative through programmatic nation- will emerge. The Eco2 Cities Initiative will al approaches. constantly work to incorporate these in an in- clusive, iterative, and purposeful way. PREFACE | xxi Acknowledgments T he World Bank’s Eco2 Cities Initiative Altaf, Rama Chandra Reddy, Monali Ranade, has been conceived and developed and Axel Baeumler, Nat Pinnoi, Masato Sawaki, is managed by Hiroaki Suzuki (Team and Johannes Heister of the World Bank. Geof- Leader) and Arish Dastur (Co–Team Leader), frey Payne, Örjan Svane, and Richard Stren who authored, compiled, and edited this book, provided valuable suggestions at the early stag- together with Sebastian Moffatt, Nanae Yabuki, es of Eco2, and Yuko Otsuki supplied strong and Hinako Maruyama. support to the team. The other contributing authors are Feng The book has benefited from the guidance Liu, Jas Singh, Georges Darido, Khairy Al Ja- of Keshav Varma, Sector Director of Urban De- mal, Charles W. Peterson, Alain Bertaud, No- velopment for the East Asia and Pacific Region bue Amanuma, Malin Olsson, Karolina Brick, of the World Bank. Strong support has also Maria Lennartsson, Claire Mortimer, and been provided by John Roome, Christian Del- Bernd Kalkum. The peer reviewers are Ste- voie, Abha Joshi-Ghani, Eleoterio Codato, Ede phen Karam, Robert Taylor, Neeraj Prasad, Jo- Jorge Ijjasz-Vaquez, and Amarquaye Armar. sef Leitmann, and Sam Zimmerman. Important Elisabeth Mealey advised us on our com- comments and suggestions have been received munications strategy. Claudia Gabarain con- from Alan Coulthart, Tim Suljada, Brian Daw- tributed to the Web design and online strategy. son, Carly Price of AusAID (formerly the Aus- Inneke Herawati, Iris David, Bobbie Brown, tralian Agency for International Development), Vellet Fernandes, and Sandra Walston sup- Thomas Melin of the Swedish International plied important logistical support. Dean Development Cooperation Agency (SIDA), Thompson provided editorial support on an and Sumter Lee Travers and Fang Chen of the earlier version of this book. Patricia Katayama International Finance Corporation, as well as and Mark Ingebretsen of the Office of the Jas Singh, Victor Vergara, Shomik Mehndirat- Publisher gave guidance to the team on pub- ta, William Kingdom, Jan Bojo, Paul Kriss, Ro- lishing and handled the final editing process. hit Khanna, Peter Ellis, Habiba Gitay, Mir Naylor Design, Inc., provided the cover de- xxiii sign and layout. Many of the graphics in the eign Affairs Advisor, Institute for Research and book were produced by Sebastian Moffatt and Urban Planning of Curitiba; (2) the City of the Sheltair Group. Stockholm, especially Malin Olsson, Head of The team acknowledges the valuable contri- Section, City Planning; and Klas Groth, City butions of the Sheltair Group, the Energy Sector Planning; (3) the City of Vancouver, especially Management Assistance Program (ESMAP, Brent Toderian, Director of Planning; (4) the jointly sponsored by the World Bank and the City of Yokohama, especially Toru Hashimoto, United Nations Development Programme), and Senior Project Manager, Co-Governance and the World Bank’s Finance, Economics, and Ur- Creation Taskforce, and Yoshihiro Kodama, Co- ban Development Department. The team also Governance and Creation Taskforce; and (5) the acknowledges the guidance received from key City of Brisbane, especially David Jackson, decision makers in the following cities: (1) the Manager, Economic Development; John Cowie, City of Curitiba, Brazil, especially Carlos Alber- Senior Project Officer, Economic Development; to Richa, Mayor, Curitiba; Eduardo Pereira Gui- and Lex Drennan, CitySmart Project Director. marães, Secretary of International Relations, This publication has been made possible Curitiba; Cléver Ubiratan Teixeira de Almeida, through scaled-up funding by the World Bank’s President, Institute for Research and Urban East Asia and Pacific Region and generous co- Planning of Curitiba, and Priscila Tiboni, For- funding from AusAID. xxiv | ACKNOWLEDGMENTS The Structure of This Book The book is divided into three parts. decision making and methods to create an effective long-term framework able to help Part 1 describes the Eco2 Cities Initiative align policies and the actions of stakeholders. framework. It describes the approach, begin- Part 2 also examines material flow analysis ning with the background and rationale. Key and the use of layered maps to facilitate an challenges are described, and lessons are integrated approach to urban infrastructure drawn from cities that have managed to turn and spatial planning. Techniques for life- these challenges into opportunities. A set of cycle costing are described, and specific tools four key principles is introduced. The descrip- are referenced. Finally, part 2 introduces tion of the program is then developed around methods that may be useful in conducting those four principles. Each of the principles is forecasting workshops and resiliency plan- addressed in separate chapters that present ning. It is expected that, as the Eco2 initiative the core elements of the program and the step- grows, a greater depth of information will be ping stones each city may follow as it develops generated to enrich the city-based decision its own unique Eco2 pathway. Part 1 concludes support system. with an overview of some of the ways in which cities may draw on the resources of various de- Part 3 consists of the Field Reference Guide. velopment partners as they embark on their The guide contains background literature de- unique pathways. signed to support cities in developing more in-depth insight and fluency with the issues Part 2 presents a city-based decision support at two levels. It provides a city-by-city and system that introduces core methods and sector-by-sector lens on urban infrastructure. tools to help cities as they work toward It begins with a section on a series of case applying some of the core elements and step- studies from best practice cities around the ping stones outlined in part 1. Part 2 looks world. Each city offers a separate example of into methods for collaborative design and how various elements of the Eco2 approach xxv may be applied. The next section comprises a While part 1 and part 2 address the Eco2 series of sector notes, each of which explores Cities Initiative directly, the Field Reference sector-specific issues in urban development. Guide provides the background on current The sectors include energy, water, transporta- best practices and a full scope of policies, spe- tion, and solid waste. This section includes a cific measures, and institutional measures note on the management of the spatial struc- that need to be considered. Together, these ture of cities. Together, these sector notes three parts provide cities with an up-to-date provide insights on the functioning of each survey of the terrain and guidance on how to sector and on the current interrelationships move forward on their own pathways. This among the sectors. As we view these issues book lays out the scope of Eco2 and should be through a city-by-city and sector-by-sector viewed as an evolving document, particularly lens, we start to see a bigger picture. Part 3 parts 2 and 3. The Eco2 Cities Initiative Web also includes a final section on relevant spe- site, at http://www.worldbank.org/eco2, pro- cific financial instruments of the World Bank. vides detailed, updated information. xxvi | THE STRUCTURE OF THIS BOOK Abbreviations ASF Auckland Sustainability Framework (New Zealand) BRT bus rapid transit CBD central business district CDM clean development mechanism CO2 carbon dioxide CPF Carbon Partnership Facility CTF Clean Technology Fund CY current year DAC Development Assistance Committee (OECD ) DPL development policy lending DSM demand-side management DSS decision support system ELP environmental load profile ER emission reduction FAR floor area ratio FY fiscal year GDP gross domestic product GEF Global Environment Facility GHG greenhouse gas GIS geographic information system IBRD International Bank for Reconstruction and Development (World Bank) IDA International Development Association (World Bank) IFC International Finance Corporation (World Bank) IPPUC Institute for Research and Urban Planning of Curitiba (Brazil) LCC life-cycle costing LFG landfill gas xxvii LIBOR London interbank offered rate MDB Multilateral Development Bank MIGA Multilateral Investment Guarantee Agency (World Bank) O2 oxygen OECD Organisation for Economic Co-operation and Development PUB Public Utilities Board (Singapore) RGS regional growth strategy SCF Strategic Climate Fund SIP Small Investment Program SO2 sulfur dioxide UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change Note: All dollar amounts are U.S. dollars (US$) unless otherwise indicated. xxviii | ABBREVIATIONS Executive Summary cities, and in developing countries, the corre- Challenges and Opportunities sponding share is now rapidly increasing. In Urbanization in developing countries may be many developing countries, the urban share of the most significant demographic transforma- national GDP already surpasses 60 percent. In tion in our century, restructuring national most regions of the world, the opportunities economies and reshaping the lives of billions of provided by urbanization have enabled large people. It is projected that the entire built-up segments of populations to lift themselves out urban area in developing countries will triple of poverty. between 2000 and 2030, from 200,000 square However, urbanization at this rate and kilometers to 600,000 square kilometers. scale is certain to be accompanied by unprec- These 400,000 square kilometers of new urban edented consumption and loss of natural built-up area that are being constructed within resources. Calculations already show that, if a mere 30 years equal the entire world’s total developing countries urbanize and consume built-up urban area as of 2000. One might say resources as developed countries have done, we are building a whole new urban world at an ecological resource base as large as four about 10 times the normal speed in countries planet Earths would be needed to support with serious resource constraints (natural, fis- their growth. But, of course, we have only one cal, administrative, and technical). We are doing Earth. Because the underlying resource base this in an increasingly globalized context char- required to sustain such a transition does not acterized by many new, constantly fluctuating, exist, cities in developing countries and in interlinked, and uncontrollable variables. developed countries must find more efficient What is driving this massive rate of urban- ways to meet the needs of their populations. ization? Historically and across most regions, It is clear that, if we are to absorb and sus- urbanization has propelled the growth of na- tain this powerful wave of urbanization, while tional economies. On average, about 75 percent continuing to manage the existing built stock, of global economic production takes place in we will need a paradigm shift. The following 1 fundamental questions must be addressed: take advantage of such opportunities. Best How can cities continue to effectively harness practices exist for long-term planning and re- the opportunities for economic growth and gional growth management, and the emergence poverty reduction offered by urbanization, of new tools for systems analysis and mapping while also mitigating the negative impacts? offers potential for more well integrated, prac- How can cities accomplish this given the speed tical, and rigorous analysis and planning. and the scale at which this urbanization is pro- Methods for collaborative design and decision gressing and given their own capacity con- making among key stakeholders have also straints? How can ecological and economic proven effective. Realizing that successful cities considerations be dovetailed so that they result are often fundamental to successful nations, the in cumulative and lasting advantages for cities? higher levels of government are becoming key How do we transition from Eco versus Eco to partners in helping cities take the initiative. Eco2 cities? There is also growing commitment at the Innovative cities have demonstrated that, international level to support cities and help supported by the appropriate strategic ap- finance longer-term investments within cities. proach, they may greatly enhance resource New funding opportunities have emerged for efficiency by realizing the same value from a cities in developing countries that are willing much smaller and renewable resource base, to implement actions to achieve sustainable while decreasing harmful pollution and un- urban development, particularly measures necessary waste. By achieving this, they have promoting energy and resource efficiency that improved the quality of the lives of their citi- lead to reductions in greenhouse gas emissions. zens, enhanced their economic competitive- New accounting methods for estimating the ness and resilience, strengthened their fiscal full costs and benefits of various policy, plan- capacity, provided significant capacity to the ning, and investment options are also being poor, and created an enduring culture of sus- used (for example, life-cycle costing). At the tainability. Urban sustainability of this kind is a same time, accounting for all capital assets powerful and enduring investment that will (manufactured, natural, social, and human) pay compounding dividends. In a rapidly paced and the services they provide offers a more ho- and uncertain global economy, such cities are listic and complete incentive framework to cit- the most likely to survive shocks, attract busi- ies. Channeling these opportunities toward the nesses, manage costs, and prosper. massive scale and accelerating the pace of ur- Most encouraging about the efforts made by ban development are creating the potential for these innovative cities is the fact that many of a tremendously positive impact. the solutions are affordable even if budgets are The Eco2 Cities Initiative has been devel- limited, and they generate returns, including oped for the purpose of enabling cities in de- direct and indirect benefits for the poor. At the veloping countries to benefit from the promise same time, much of the success may be achieved of a more rewarding and sustainable growth by using existing, well-tested methods and trajectory while the window of opportunity is technologies and by focusing on local, home- still open to them. grown solutions. The challenge that lies ahead is to take full advantage of the many opportunities created by The Analytical and Operational the rapid rates of change and by successful in- Framework novations. Inappropriate institutional struc- tures and mind-sets are commonly cited as the The Eco2 analytical and operational framework single greatest challenge whenever cities try to is rooted in four key principles. Cities face chal- 2 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES lenges in trying to adopt new approaches. concrete action items or stepping stones that These challenges have been carefully antici- take into account local conditions and follow a pated in the framework, and together with the logical sequence. Together, these stepping valuable ground-level lessons from best prac- stones enable a city to develop its own unique tice cities, they have helped frame our strategic action plan and sustainability pathway. The response: the key principles that define the Eco2 Cities Initiative also introduces cities to Eco2 Cities Initiative. Each has been elevated methods and tools that will lead to more effec- to the status of a principle because it is widely tive decision making through powerful diag- applicable, critical to success, and frequently nostics and scenario planning. These methods ignored or underappreciated. and tools may also be used to realize the core These four principles are (1) a city-based ap- elements and implement the stepping stones. proach enabling local governments to lead a In this context, the ideal situation arises development process that takes into account when a city adopts the four key principles; specific circumstances, including the local ecol- applies the analytical and operational frame- ogy; (2) an expanded platform for collaborative work to its particular context; and, by doing so, design and decision making that accomplishes develops and begins to implement its own sustained synergy by coordinating and aligning sustainability pathway. the actions of key stakeholders; (3) a one- system approach enabling cities to realize the PRINCIPLE 1: A city-based approach benefits of integration by planning, designing, and managing the whole urban system; and A city-based approach is the first principle, and (4) an investment framework that values sus- it carries two complementary messages. First, tainability and resiliency by incorporating and it recognizes that cities are now on the front accounting for life-cycle analysis, the value of lines in managing change and leading an inte- all capital assets (manufactured, natural, hu- grated approach. Cities not only embody the man, and social), and a broader scope for risk engines of economies and the homes of citi- assessments in decision making. zens, but also are responsible for a majority of The four principles are interrelated and the resource and energy consumption and the mutually supportive. For example, without a harmful emissions. Only at the city level is it strong city-based approach, it is difficult to possible to integrate the many layers of site- fully to engage key stakeholders through an ex- specific information and to work closely and panded platform for collaborative design and rapidly with the many stakeholders whose decision making. And without this expanded input may influence the effectiveness of a sus- platform, it is difficult to explore creative new tainability pathway and who have a stake in approaches to the design and management of its successful implementation. In addition, fis- integrated systems and to coordinate policies cal and administrative decentralization has for implementing the one-system approach. brought important decision making and man- Prioritization, sequencing, and the effective- agement responsibility to local governments. ness of investments in encouraging sustain- Cities may exercise proactive leadership and ability and resiliency will be greatly enhanced thereby trigger a process of change. if the city is appreciated as a single system and Second, a city-based approach serves to em- the platform for collaboration is expanded. phasize the importance of the incorporation of A set of core elements that define the Eco2 the unique aspects of place, especially ecologi- framework has been derived through these cal systems. In this sense, a city-based approach four key principles. Cities are encouraged to responds to the opportunities and constraints realize the core elements through a series of of local ecologies. How might development fit EXECUTIVE SUMMARY | 3 into the topography of the area so that water is ees, or energy and transportation peak load provided by gravity and drainage is provided management through adjustments in working by natural systems (reducing the need for hours). At the second tier, projects will involve expensive infrastructure investments and the the city in its capacity as a provider of services related operating costs)? How might a city and include its formal planning, regulatory, protect its water recharge areas and wetlands and decision-making powers. This may include so that water capacity and quality are sus- water provision, land use planning, or transit tained? How do we distribute populations and development. At this level, greater collabora- design cities so that local or regional renewable tion is warranted with other stakeholders (in- energy—windy sites, forests, solar access— cluding the private sector and consumers) who is sufficient to meet basic needs? These types may influence and may be affected by the out- of questions may ultimately provide urban comes. The third tier of the expanded platform professionals with their most exciting design will entail collaboration at the scale of the challenge: how to fit cities into the landscape entire urban area or region. This may pertain in ways that respect and complement the natu- to issues such as the development of new land ral capital and that ensure the availability or metropolitan management and may neces- of ecological services for present and future sarily involve senior government officials, key generations. private sector partners, and civil society. A city-based approach is thus place specific A core element of the three-tier platform for and focuses on enabling local leadership, local collaboration is a shared long-term planning ecologies, and the broader local context. In framework for aligning and strengthening the fact, one of the first stepping stones of a city policies of city administrations and key stake- will involve reviewing and adapting the Eco2 holders and for guiding work on future projects. framework to the local context. In this way, three-tier collaboration may en- courage everyone to row in the same direction. PRINCIPLE 2: An expanded platform for collaborative design and PRINCIPLE 3: A one-system approach decision making The one-system approach aims to take full ad- Cities are increasingly experiencing a splinter- vantage of all opportunities for integration by ing of infrastructure responsibilities, the over- promoting a view of the city and the urban lapping and intersection of jurisdictions, and environment as a complete system. Once we an increase in the private sector ownership of see the city and the urban environment as a key assets. If cities are to lead in the process of system, it is easier for us to design the ele- urban development, especially in the context ments to work well together. This may mean of rapid urbanization, they must get ahead of enhancing the efficiency of resource flows in this curve. an urban area through integrated infrastructure A city may lead a collaborative process on at system design and management. For example, least three tiers of an expanded platform. At the looping and cascading of energy or water the first tier, projects may be completely within through a hierarchy of uses may satisfy many the realm of control of the city administration, demands with the same unit of supply. meaning that the city must get its own house in The one-system approach also includes order (for example, by supporting an energy integrating urban form with urban flows by efficiency upgrade for all municipally owned coordinating spatial development (land use, buildings, or a ride-share program for employ- urban design, and density) and the planning of 4 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES infrastructure systems. For instance, new devel- PRINCIPLE 4: An investment framework opment may be directed to those locations that that values sustainability possess a surplus of water, energy, and transit. and resiliency Urban form and spatial development also establish the location, concentration, distribu- The simple concept of investing in sustainability tion, and nature of the demand nodes that af- and resiliency in cities has become extremely fect the design of infrastructure system difficult to put into action. Policies, plans, and networks. With this effect, they establish the projects tend to be assessed on their short-term physical and economic constraints and param- financial returns or on an economic valuation eters for infrastructure system design, capacity based on narrowly structured cost-benefit anal- thresholds, technology choices, and the eco- yses from the perspective of a single stakeholder nomic viability of the various options. This or project objective. Investments are valued in has tremendous implications for resource use monetary terms, and what cannot be monetized efficiency. is either ignored or addressed as externalities. Integrating the planning of flows and forms Decisions are dominated by immediate capital and rendering initiatives operational are both a costs, despite the fact that over 90 percent of the challenge and a huge opportunity for any city. life-cycle costs of typical infrastructure are of- The one-system approach also focuses on how ten expended in operations, maintenance, and to implement projects using a more well inte- rehabilitation. grated procedure. This means sequencing Few cities worldwide have a real knowledge investments so that the city sets the correct of the impact of new development on their foundation by addressing the long-lasting, long-term fiscal condition. Life-cycle costs are cross-cutting issues first. This also means cre- often backloaded, which means that future ating a policy environment that enables an in- generations will have a massive infrastructure tegrated approach, coordinating a full range of deficit because they must face the costs of the policy tools, collaborating with stakeholders to repair and replacement of infrastructure with- align key policies, and targeting new policies to out any prior capitalization. reflect the different circumstances involved in At the same time, ecological assets, the ser- urbanization in new areas and to improve ex- vices they provide, and the economic and so- isting urban areas. cial consequences of their depletion and Integration may apply to the elements destruction are not accounted for in most gov- within a sector or across sectors. It may apply to ernment budgets. Because these assets are not implementation policies, the collaboration of measured, their value is treated as zero, and stakeholders and their plans, the sequencing of the valuable services they provide go unac- financing mechanisms, and all of these in combi- counted for. nation. In every case, the integration of elements Principle 4 requires that cities adopt a new tends to reveal opportunities for greater efficien- framework for making policy and investment cy, synergy, and increased utility from a given decisions. The framework has multiple ele- investment, with corresponding improvements ments. A new range of indicators and bench- in ecological and economic performance. marks must be adopted to assess and reward By applying the one-system approach, cities the performance of all stakeholders. The fami- and their surrounding natural and rural areas ly of indicators must address the needs of all can strive to coalesce into a functional system categories of decision making (for example, that works well as a new whole. strategy evaluation versus operations). Longer EXECUTIVE SUMMARY | 5 time horizons are needed, and life-cycle cost- viability of an investment or even the city as benefit analysis must be applied to understand a whole. the full implications of policies and investment The principles described above underlie the options. All four categories of capital assets Eco2 approach. Using the analytical and opera- (manufactured, natural, human, and social) tional framework, a city may apply the princi- and the services they provide must be appro- ples through a set of core elements and use priately valued or priced and monitored these elements to create a phased, incremental through indicators. The combination of indica- Eco2 pathway (see the diagram). The sustain- tors should be viewed as a whole so that the ability pathway of each city will be designed in qualitative dimensions of city life (cultural, consideration of the city’s own needs, priorities, historic, and aesthetic) are not ignored in and capacities. While the analytical and opera- assessing costs and benefits. tional framework enables a city to chart out its At the same time, investing in sustainability sustainability pathway, the city-based decision and resiliency will entail broadening our scope support system introduces the methods and of risk assessment and management to include tools that provide cities with the capacity to managing the many indirect, difficult-to- undertake more well integrated development measure risks that nonetheless threaten the and navigate this pathway more effectively. Review and Obtain adapt the commitments Work Eco 2 from council closely pproach g Program with national government ased A a kin Identify Outline a process for A City-B nM Champions o building Develop for cisi capacity m e for D Eco 2 lat ign & lA development Seek fluency program that supports P y partnership ed es ilienc and empowers cities. with nd ve D & Res hat A planning philosophy that International a ch l p i Ex orat harnesses and nurtures ecological Community Prepare a t oa long term taina amework assets. n b pr lAn action-oriented network that planning A lla Ap builds on partnerships. Select framework Co tem A City-Based Decision Support bility l catalyst System (DSS), with methods and ys project r tools that provide cities with Prepare a eS value estment F enhanced capacity in technical, mandate On administrative and and budget Initiate a financial analysis. for a secretariat process for A s Sus collaborative Align decision policy v making Conduct a tools An In lA triple-tier platform that enables cities to collaborate series of - as a model corporation, engaging all city departments; preparatory Provide e - as a provider of services to residents & businesses; & design time just-in-time - as a leader and partner within their urban region; workshops ing training lA shared long-term planning framework for aligning using Eco 2 Monitor, and strengthening the policies of both the city resources feedback, learn administration and key stakeholders. Explore and adapt design solution Forecast the and prepare impact of plausible l Integrated infrastructure system concept plan changes in climate, design and management focusing on Develop resources, enhancing the efficiency of resource 'flows'. and adopt demographics, l Coordinated spatial development that Integrates resource indicators for technology 'flows' with urban 'forms' through - urban design, land use, 4 capitals: Implement density, proximity and other spatial attributes. Manufactured, Catalyst Project, l Integrated implementation through natural, human protect capital i) correctly sequencing investments, and social assets, reduce vulnerabilities Implement ii) creating a policy environment that enables an integrated approach, life cycle iii) co-ordinating a full range of policy tools, Incorporation of Life Cycle l costing tools iv) collaborating with stakeholders to align key costing in all financial decision making policies with long term goals, and Attention to protecting and enhancing all capital assets: l v) targeting new policies to new urban development, manufactures capital, natural capital, social capital and human capital as well as existing areas. Pro-active attention to managing all kinds of risks: financial risk, sudden l disruptions to systems, and rapid socio-economic-environmental change Source: Author compilation (Sebastian Moffatt). 6 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES A City-Based Decision Support A Field Reference Guide System The Eco2 Field Reference Guide provided as The city-based decision support system intro- part 3 is a technical resource especially tailored duced in part 2 introduces methods and tools to building ground-level and technical knowl- that enable cities to more effectively develop edge. It contains background literature designed their capacity to realize some of the core ele- to support cities in developing more in-depth ments of the Eco2 initiative. It comprises a few insights and fluency with the issues at two core methods that, together, provide cities with levels. It provides a city-by-city and sector-by- a greater ability to implement the core ele- sector lens on urban infrastructure. It begins ments of the four principles listed above. by exploring a series of case studies from best The fundamental purpose of these methods practice cities around the world. Each city is to simplify the process of analysis, assessment, offers a separate example of how various ele- and decision making. They provide practical ments of the Eco2 approach may be applied. ways for cities to take leadership, collaborate, The Field Reference Guide also provides a and analyze and assess various ideas for proj- series of sector notes, each of which explores ects. All the methods are well-tested approaches sector-specific issues that pertain to urban to accomplishing the work. They are expected development. As cities develop their sustain- to remain relevant for many years. ability pathways, surveying issues through the The methods support the typical planning lens of each urban infrastructure sector will process at different times and in different ways. help. Ideally, this will lead to a kaleidoscopic Some methods may be used repeatedly. For view of the city, in which each perspective may example, meta diagrams that summarize re- be compared with the next so that the relation- source flows may be used, first, as a way to es- ships among energy, water, transportation, and tablish a baseline for assessing how a location solid waste may be understood in the context is currently performing and then, later, to help of the city. with diagnosing, target setting, scenario devel- As we study these sectors, it becomes clear opment, and cost assessment. that many of the operational and jurisdictional As an illustration, the Methods for Analyz- boundaries impede innovation and creativity in ing Flows and Forms reveal the important rela- the effort to achieve better outcomes. It is also tionships between spatial attributes of cities clear that investments made in one sector may (forms) and their physical resource consump- result in savings in another sector (for example, tion and emissions (flows). The combination of investments in water efficiency usually result in these analytical methods helps cities develop a large energy cost savings) and that pooling transdisciplinary platform for analyzing cur- scarce resources to invest in multifunctional and rent situations and forecasting scenarios (see multipurpose common elements may benefit the diagram). everyone (for instance, through single-purpose One of the first stepping stones for a city underground infrastructure corridors). may be to plan a process for capacity building. The sector notes shed light on critical sec- Reviewing the decision support system is a tor-specific issues that have an impact on city good place to begin. While this book introduc- sustainability, but are not under the direct es the core methods, the capacity-building control of city authorities. These issues may plans of a city may include obtaining more need to be addressed on a sector-by-sector information, acquiring specific tools, obtaining basis in collaboration with key stakeholders, outside technical support, and applying the particularly the higher levels of government. methods to a catalyst project. Identifying the critical pressure points beyond EXECUTIVE SUMMARY | 7 Combining Flows and Forms to Create a Transdisciplinary Platform Customers Streets Parcels Elevation Land Use This flow diagram summarizes all the water flow through Real World Hong Kong (China), and is one of the first illustrations of Source: an urban metabolism. Copyright © ESRI, Source: Boyden, Millar, used by permission, and Newcombe (1981). http://www.esri.com/. Flows: Material Flow Analysis and Sankey Diagrams Forms: Layering Information on Maps Material flow analysis and Sankey diagrams are a method for calculat- Maps are especially useful in collaboration because they speak so ing and illustrating the flow of resources through an urban area of any well to so many. (A picture is worth a thousand words.) The layers size. Inputs and outputs are determined as resources are extracted of information make it possible immediately to interrelate the from nature; processed by infrastructure; consumed by homes and various features and qualities of the landscape and also easily to businesses; treated by infrastructure; and, finally, returned for reuse or quantify important spatial relationships. Layering is an old tech- delivered back to nature as waste. Colorful, but simple diagrams are nique that has become more powerful as a result of computer used to educate everyone on the resource flows and the effective- technology and satellite imagery. ness of their use, all on a single page. Integrating Forms and Flows: A Transdisciplinary Platform Because diagrams and maps may be easily understood and shared by a broad range of professionals and decision makers, they help to bring stakeholders and experts to- gether, facilitating a common understand- ing of integrated approaches to design and decision making. Forms and flows should be analyzed and understood for current and future scenarios. In combina- tion, the methods represent a transdisci- plinary platform for understanding the spatial dynamics of a city and its physical resource flows, elements that are interde- pendent, but difficult to integrate because they involve such different skills and stake- holders. A platform is needed to integrate the design concepts for urban form with the corresponding resource flows. Source: Redrawn and adapted from Baccini and Oswald (1998). 8 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES the direct control of city authorities is also encouraged to tap into the unique resources of important in devising an expanded platform each of these partners. In this context, the for collaboration. World Bank Group, together with other devel- The guide also provides a strategy for man- opment partners, may be in a position to pro- aging the spatial structure of cities and impor- vide technical assistance, as well as capacity- tant lessons on how spatial planning and land building and financial support, to cities that use regulations may powerfully affect mobility demonstrate strong political will and commit- and affordability. ment to implementing the Eco2 initiative. Moving Forward Together References As forward-looking cities in developing coun- Baccini, Peter, and Franz Oswald. 1998. Netzstadt: tries identify and implement their sustainabili- Transdisziplinäre Methoden zum Umbau urbaner Systeme. Zurich: vdf Hochschulverlag. ty pathways, support may be available from Boyden, Stephen, Sheelagh Millar, and Ken Newcombe. best practice cities worldwide, and from the 1981. The Ecology of a City and Its People: The Case international community, including develop- of Hong Kong. Canberra: Australian National ment agencies, and academia. Cities are University Press. EXECUTIVE SUMMARY | 9 PART 1 The Framework Opportunities and Challenges, Principles and Pathways ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 1 Ecological Cities as Economic Cities This chapter outlines key issues driving the urgent need for a new approach to urban planning, devel- opment, and management. While all the transformations that are now occurring may be seen as threats, they may also be perceived as opportunities for the rapid and widespread adoption of a new approach to design, decision making, and investment. In its review of selected case studies, the chapter demonstrates the tangible benefits of cost-effective approaches that have led to greater ecological and economic sustainability in cities. It also clarifies commonly held misconceptions about urban sustain- ability and concludes that cities should invest in and capitalize on opportunities. If acted on correctly, the changes now under way offer fresh opportunities to achieve sustainability and resiliency in urban areas for generations to come. Challenges and Opportunities will be constructed within only 30 years equal the total built-up urban area throughout the The scale and rate of urbanization world as of 2000 (Angel, Sheppard, and Civco are unprecedented 2005). One might say that we are building a Urbanization in developing countries may be whole new urban world at about 10 times the most significant demographic transforma- the speed in countries with serious resource tion in our century as it restructures national constraints (natural, fiscal, administrative, and economies and reshapes the lives of billions of technical). We are doing so in an increasingly people. It is projected that the entire built-up globalized context characterized by many new, urban area in developing countries will constantly fluctuating, interlinked, and uncon- triple between 2000 and 2030 from 200,000 trollable variables. square kilometers (km2) to 600,000 km2 For the first time in history, more than half (Angel, Sheppard, and Civco 2005). These the world’s population, or 3.3 billion people, 400,000 km2 of new urban built-up area that resides in urban areas. This portion of the THE FRAMEWORK | 13 world’s population living in cities is expected tries, the urban share of GDP already surpasses to grow to almost 5 billion by 2030 (UN- 60 percent (World Bank 2009). Habitat 2008). Over 90 percent of the urban The competitiveness of cities is determined growth is taking place in developing coun- by a variety of factors, including geography, na- tries. By the middle of the century, Asia alone tional policies, local leadership, market forces, will host 63 percent of the global urban popula- and capital inflows. Historically, nature and ge- tion, or 3.3 billion people (UN-Habitat 2008). ography (altitude, topography, and climate, as Cities in East Asia housed about 739 million well as proximity to coasts, rivers, borders, and people in 2005 (Gill and Kharas 2007). They natural resources) have often been the trigger in will need to accommodate another 500 million the development of cities. National policies play by 2030 (Gill and Kharas 2007). an important role in inducing and facilitating The growth of the world’s urban population the growth of cities by determining the location, is being accompanied by an increase in the quality, and connectivity of key infrastructure number and size of cities. There were about 120 investments, which, in turn, influence the in- cities with populations over 1 million each in vestment and location decisions of private capi- 2000. The number is projected to rise to more tal. Together, these generate and enable eco- than 160 by 2015 (World Urbanization Pros- nomic diversification and a range of economic pects Database). The world will have 26 mega- activities that lead to population increases cities—cities with populations of more than through rural-urban migration and productivity 10 million—by 2025. Developing countries in gains. In the context of expanding globalization, Asia will host 12 of these cities (UN-Habitat the role of trade and foreign investment is being 2008). An important element in this growth is recognized as an additional factor driving the the fact that 50 percent of the overall urban growth of cities. It has also been observed that, increase is occurring in medium and smaller as they transition swiftly to a high-value, knowl- cities of less than 500,000 people. Over the next edge-based economy, cities benefit from their decade, half of the expansion in the urban popu- critical competitive advantage in their ability to lation in East Asia is projected to be absorbed by attract, retain, and invest in human capital (Flor- such cities (Gill and Kharas 2007). ida 2002). Under these circumstances, a critical These population statistics imply a massive determinant of the growth of cities has been a investment in manufactured capital, including city’s capacity to provide a business-enabling the building stock and urban infrastructure. environment (such as good infrastructure, poli- The urban strategies that frame decision mak- cies favorable to reductions in the cost of doing ing and shape policies and investments within business, and connectivity to external markets); the next few years will no doubt have conse- a good quality of life; and an environment that quences for generations to come. attracts and retains human capital by providing strong social infrastructure and a clean, afford- Cities are engines of economic growth able, and livable environment. What is driving the massive rates of urbaniza- As organizational systems, urban agglomera- tion described above? Historically and across tions provide unique opportunities because of most regions, urbanization has propelled the economic and spatial scale. The supply of criti- growth of national economies. On average, cal infrastructural services (physical and social), about 75 percent of global economic produc- as well as the institutional and administrative tion takes place in cities, and in developing organization on which much economic devel- countries, this share is now rapidly rising opment and social welfare are predicated, be- (World Bank 2009). In many developing coun- comes financially viable and reaches economies 14 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES of scale in cities. At the same time, geographical GDP on less than one-fifth of the country’s land proximity reduces transaction costs and gener- area (World Bank 2008). The concentration of ates economic efficiencies by creating concen- GDP is not proportional to the concentration of trated markets for labor, capital, and goods. This population. For example, in Thailand, Bangkok encourages growth, diversification, and innova- accounts for 40 percent of national GDP, but tion in the provision of a wide range of goods only 12 percent of national population. Such and services and the spillover of the knowledge imbalances are commonly observed in other and skills critical to the creation of new ideas. major Asian cities, for instance, Ho Chi Minh Cities also serve as concentrated markets for the City (29 percent of national GDP, but 6 percent agricultural output of their rural hinterlands. of national population); Manila (31 percent and It is not simply the concentration of activities 13 percent, respectively); and Shanghai, China that makes cities attractive; it is also the diversifi- (11 percent and 1 percent, respectively) (World cation and intensification of activities that even- Bank 2003). tually make cities resilient, competitive, and dy- namic. Moreover, in addition to the spatial Poverty within and around cities dimension, cities have a temporal dimension. To is a challenge remain relevant and competitive, successful cit- In most regions, the opportunities provided by ies must continue to evolve. The waterfront urbanization have enabled large segments of manufacturing land area of many older industrial the population to lift themselves out of poverty. cities has now been converted into high-end res- The United Nations Population Fund has ex- idential and financial sector real estate. Through amined this relationship between greater op- the vastly improved global telecommunications portunity and declining poverty in 25 countries and Internet infrastructure, it is now possible for and concluded that urbanization has contrib- large segments of the service sector (the prod- uted significantly to poverty reduction. For in- ucts and services of which may be transferred stance, 28.3 percent of Bolivia’s poverty reduc- instantly across the globe) to access consumer tion between 1999 and 2005 was attributable to and labor markets at the push of a button. This urbanization (UNFPA 2007). It is no wonder will create new and interesting possibilities for the poor are continuing to migrate to urban ar- human settlement and employment. Although eas in search of better lives. However, while ur- global economies based on cities have emerged banization has led to economic growth and at various times throughout history, never be- helped reduce poverty, urbanization alone has fore has a global economy achieved the current not been able to eradicate poverty. Urban pov- reach: no city today operates outside the global erty and inequality exist despite the concentra- economic system, and every city has found a tion of income in cities. place in the network of cities. Slums represent the worst form of urban It is because of the transformative forces of poverty. Individuals and communities living in agglomeration economies that countries in East slums face severe inadequacies in the most ba- Asia are experiencing a major shift in economic sic human requirements, such as shelter, land, activities and employment patterns from agri- water, safe cooking fuel and electricity, heating, culture to industry and services that is being ac- sanitation, garbage collection, drainage, paved companied by economic diversification within roads, footpaths, and streetlighting. Largely be- sectors. The concentration of economic produc- cause of insufficient supplies of serviced land at tion in urban areas is particularly significant in affordable prices, often caused by unrealistic East Asia. The more dynamic coastal regions of regulations imposed on land and chronic ad- China produce more than half the country’s ministrative deficiencies, poor households are THE FRAMEWORK | 15 unable to gain access to land and housing cal assets and increasing the risks of waterborne through legal channels. The poor are thereby and infectious diseases. forced to live in ramshackle and flimsy settle- Migration to urban areas is increasing, driv- ments on environmentally sensitive areas en by the promise of a better future. While cities (slopes and low-lying areas), along roads and have had a significant impact on economic pro- railway lines, close to hazardous industrial fa- ductivity, they need to do more to address the cilities, and often near the ecological resources crucial issue of urban poverty, particularly the of cities. Moreover, because basic urban services problem of slums. are not provided in slums, slum dwellers often The flip side of urban migration is the loss in live in the worst conditions and have no choice populations in many rural areas and hinterland but to pollute surrounding land and water re- communities. While people are being pulled sources. Industries frequently pollute freely from the countryside by the promise of wealth, and unchecked in slum areas because the dis- they are being pushed from their traditional enfranchised residents have little legal, finan- communities because of uncontained urban cial, or political recourse. In many cases, the growth and an almost complete absence of ef- conditions in slums are life threatening; slums fective, complementary rural planning. Indeed, are significantly more susceptible to floods, the problems of slums and the excessive pace landslides, diseases, exposure to toxic industrial of urban growth are also symptoms of poor ru- waste, indoor air pollution, fires, and so on. ral planning and inadequate investment in ru- Slums expanded substantially in the 1990s, ral development. The solution is to adopt a when the urban populations in developing more well integrated approach spatially, engag- countries were growing more rapidly than the ing rural areas in a long-term collaborative ex- capacity of cities to support them. More than ercise to create rural-urban links and promote 810 million people, or more than one-third of the management of urban growth. the urban population in developing countries, were living in slums in these countries in 2005 Continued urbanization is impossible if it is (UN-Habitat 2008). About 64 percent of these based on standard practices slum dwellers, or 516 million people, live in Asia Urbanization at the rate and scale described (UN-Habitat 2008). The United Nations Human above is certain to be accompanied by an un- Settlements Programme (UN-Habitat), has pro- precedented consumption and loss of natural jected that if no firm and concrete actions are resources. Calculations already show that, if taken, the number of slum dwellers will increase developing countries urbanize and consume to about 2 billion people in the next 25 years resources at the same degree and scope as de- (UN-Habitat 2003). veloped countries, a resource base equivalent Slum areas are a visible symbol of social ex- to four planet earths will be needed to support clusion, and they also threaten the well-being the growth (Rees 2001). Even more surface of the city by compromising collective ecologi- area will be necessary if farmers are required Source: National Aeronautics and Space Administration. 16 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES to fallow their fields and regenerate soils and if biodiversity is to be sustained. But, of course, A few forward-looking cities are now taking the issue of we have only one Earth. The resource base es- climate change seriously. For instance, city authorities in Bris- sential for sustaining the rural-urban transi- bane, Australia, are comprehensively addressing this issue tion will not be available unless the cities in through their CitySmart Program. Brisbane officials hope their developing countries and in developed coun- experiences will pave the way for other cities. (See part 3 for tries find more efficient ways to meet the more on Brisbane’s initiatives.) needs of their populations. In addition to resource inefficiencies, busi- ness as usual in urbanization and economic energy and account for well over 70 percent of growth generates enormous waste and pollu- greenhouse gas emissions, the main contribu- tion that impose heavy environmental, social, tor to climate change.1 Heating and lighting in and economic costs on the local scale and the residential and commercial buildings generate global scale. Many of these costs are paid by the nearly 25 percent of greenhouse gas emissions cities themselves through significantly dimin- globally. This is equivalent to the amount gen- ished human health and well-being related to erated through all agricultural and industrial the pollution of air, water, and land; the de- activities combined. Transport contributes struction of ecological assets; the growing 13.5 percent of the global greenhouse gas fiscal burden; and the reduced long-term eco- emissions, while road transport contributes nomic competitiveness. It is often the poor 10 percent (UN-Habitat 2008). These emis- who suffer most from localized pollution and sions cause irreversible climate change, which unhealthy living conditions because they do seriously affects global ecosystems, the global not have access to safe housing and safe neigh- economy, and, especially, poorer nations. borhoods. Such issues are of immediate con- According to the Stern Review on the Eco- cern to city leaders who wish to improve the nomics of Climate Change, business-as-usual well-being of all citizens, provide a stable and scenarios could lead to a 5 to 10 percent loss in attractive environment for businesses, protect global GDP; poor countries would experience a and capitalize on urban ecological assets, and loss of more than 10 percent of GDP (Stern enhance the fiscal strength of cities. 2007). Taking the analysis a step beyond mea- The inadequate management of wastewater sures of the loss in income and productivity and solid waste has led to major environmental (such as the GDP measure) and looking into and health hazards in cities in many develop- the costs of climate change (by factoring in the ing countries. In addition, the World Health direct health and environmental impacts and Organization estimates that more than 1 billion the amplifying or reinforcing feedbacks of such people in Asia are exposed to outdoor air pol- impacts and their outcomes), one may see that lutant levels that exceed the organization’s the business-as-usual costs of climate change guidelines. A recent joint study by the Chinese could reduce welfare by an amount equivalent government and the World Bank has estimated to a reduction of between 5 and 20 percent in that the cost of ambient air pollution in China’s per capita consumption. An accurate estimate urban areas amounted to about US$63 billion is likely to be in the upper part of this range in 2003, equivalent to 3.8 percent of China’s (Stern 2007). More important, the Stern Re- GDP during that year (World Bank 2007). view clearly demonstrates that the poorest The globalized cost of business-as-usual ur- countries and people will suffer the impacts of banization is also substantial. It is estimated climate change disproportionately and most that cities consume about 67 percent of all global severely. In essence, the economic, social, and THE FRAMEWORK | 17 environmental externalities of business-as- and enforcing building codes and standards. usual urbanization are not sustainable. Redevelopment projects on a larger scale in cer- tain city neighborhoods and districts have also The existing and the new are been successful in enhancing the sustainability a twin challenge of existing urban areas. Retrofitting measures It is clear that if we are to absorb and sustain and redevelopment projects require holistic the powerful wave of urbanization in devel- planning and coordination across sectors. oping countries, while managing the existing Meanwhile, cities are facing unprecedented built stock, a paradigm shift will have to occur. rates of expansion and are in danger of becom- The fundamental questions to be addressed ing locked in to inefficient and unsustainable are the following: How can cities continue to patterns of urban growth from which there is harness effectively the opportunities for eco- no easy escape. Initial conditions are the bed- nomic growth and poverty reduction offered rock for urban development at every scale; by urbanization, while also mitigating the they impose powerful constraints on what negative impacts? How can cities accomplish may be accomplished as a city matures. These this goal given the speed and the scale at initial conditions include the pattern of spatial which urbanization is progressing and given development; the built urban form; and most their own capacity constraints? How can of the related trunk infrastructure invest- ecological and economic considerations be ments, which, because of their size and per- dovetailed, so that they result in a cumula- manence, are powerful constraints on future tive and lasting advantage for cities? How do options. This situation is typically referred to we go from ecological cities versus economic as path dependency. Such path dependency is cities (Eco versus Eco) to ecological cities as also evident in the institutional architecture economic cities (Eco2 cities)? that evolves to support large complex infra- In general, cities are confronting two chal- structure systems; this institutional architec- lenges: the challenge posed by existing urban ture may then reinforce and perpetuate growth areas and the challenge posed by rapid, new of a particular kind. The prospect of being able urban expansion. to influence new urbanization and the growth In dealing with existing urban areas, cities of cities is tremendous: beginning correctly is may rely on a range of measures to enable the much more cost-effective than dealing with existing built stock to perform more effective- problems later on. Being proactive can provide ly. Examples of retrofitting measures include compounded economic, social, and ecological implementing efficiency in the energy and wa- returns. Action taken at this critical phase in ter sectors; reducing, reusing, and recycling the growth of cities can represent a defining waste; and adapting the existing transporta- opportunity to leapfrog into built-in systemic tion infrastructure (roads) to make it more advantages in efficiency and sustainability. efficient (for instance, by designating routes Timing and sequencing are crucial to ensuring for bus rapid transit and lanes for bicycles). At the lasting impact of coordinated interven- the same time, cities can explore cost-effective tions, maximizing benefits, and reducing long- ways of remodeling the distribution, density, term externalities. There is an enormous op- and use of the existing built form by increasing portunity cost involved in not acting at the floor area ratios; allowing the transfer of devel- correct time, and the correct time is now. opment rights; implementing land readjust- It is in the urgent interest of helping cities ment programs; rezoning and changing land systematically capture this value, while the use patterns; and, more important, revising window of opportunity is still open to them, 18 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES that the World Bank has launched the Eco2 reduction (City of Yokohama 2003). Environ- Cities Initiative. mental education and various promotional activities related to waste reduction have been undertaken to enhance the awareness and know- Innovations in Urban Sustainability ledge of people and the business community. and Their Benefits Yokohama reduced waste generation by 38.7 percent, from about 1.6 million tons in fis- It has been concretely demonstrated in some cal year 2001 to 1.0 million tons in fiscal year innovative cities that ecological sustainability 2007, while the city’s population rose by and economic sustainability can significantly around 166,000 during the same period (City reinforce each other and benefit a range of of Yokohama 2008, 2009a). This significant stakeholders. One role of the Eco2 Cities Initia- waste reduction allowed Yokohama to close tive is to reflect on these examples and find ways two incinerators, which saved the city US$1.1 to transfer the lessons and successes to cities billion in capital costs that would have been elsewhere. To begin the process, let us quickly required for their renovation. (An exchange review three case studies. Each of these cases rate of US$1 = ¥100 has been used in the cost is presented in more detail in part 3. The first calculation; see City of Yokohama 2006.) This case involves the implementation of a successful reduction also led to net savings of about US$6 integrated waste management program through million in annual operation and maintenance systematic engagement with stakeholders that costs (US$30 million in the operation and led to significant environmental and economic maintenance costs of two incinerators, minus gains. The second case involves integrated utility US$24 million in the operation and mainte- and resource planning and management through nance costs of waste recycling operations). Yo- systematic stakeholder collaboration that led to kohama has two landfill sites. When the G30 significantly greater life-cycle benefits. The Action Plan was planned in 2003, the residual third case involves well-coordinated and com- landfill capacity of these two sites was expected prehensive urban development, as well as social to be 100,000 cubic meters by 2007. However, and environmental programs. The third case thanks to the waste reduction, the two sites re- demonstrates that cost is not a major barrier to tained a capacity of 700,000 cubic meters in ecological and economic urban planning, devel- 2007. The value of the saved 600,000 cubic opment, and management and is an illustration meters in disposal capacity at the two landfills of successful path dependency (spatial, institu- is estimated at US$83 million (City of Yokoha- tional, and cultural) in urban development. ma 2006). Calculations show that the waste reduction Yokohama: Environmental and economic between fiscal years 2001 and 2007 resulted in a benefits through stakeholder engagement decline of about 840,000 tons in carbon dioxide Yokohama, the largest city in Japan, initiated an emissions. This is equivalent to the amount that action plan in 2003. The plan is known as G30 60 million Japanese cedar trees can absorb an- (G = garbage; 30 = a 30 percent reduction in nually. Approximately 600 km2 (an area 1.4 waste generation by fiscal year 2010). The G30 times larger than the city) is needed to plant 60 Action Plan clearly identifies the responsibili- million Japanese cedar trees (City of Yokohama ties of households, businesses, and the govern- 2009b). At the same time, if these emission re- ment in achieving waste reduction through the ductions had been certified and sold, they could 3Rs (reduce, reuse, and recycle) and provides a have provided an additional ongoing revenue mechanism for an integrated approach to waste stream through carbon finance. THE FRAMEWORK | 19 Stockholm: Integrated planning and reduction and reuse, emissions reduction, management through systematic reduced use of hazardous materials in construc- stakeholder collaboration tion, use of renewable sources of energy, and in- In an ongoing redevelopment project in Ham- tegrated transportation solutions. Stockholm is marby Sjöstad, a district in the southern part of already a sustainable city, and the city council in- Stockholm, the Stockholm city council set out tended for this project to be a pathbreaking dem- to improve on Swedish best practice in sustain- onstration of sustainable methods of urban rede- ability in 1995—the year the environmental velopment. Hammarby Sjöstad is one of three program was adopted—by a factor of two on designated ecocycle districts in Stockholm. a range of indicators, most notably energy To accomplish the objectives set by the city efficiency per square meter. In Sweden, the council, the three city departments of waste, average annual rate of energy use in some reg- energy, and water and sewage collaboratively ular new development projects is 200 kilowatt- designed a model, the Hammarby Model. The hours per square meter; cutting-edge practice Hammarby Model represents an attempt to produces an efficiency of 120 kilowatt-hours turn a linear urban metabolism—consume re- per square meter (Bylund 2003). The current sources on inflow and discard waste through project is aiming for a rate of 100 kilowatt- outflow—into a cyclic urban metabolism by op- hours per square meter. Other targets set for timizing the use of resources and minimizing the project include water conservation, waste waste (figure 1.1). The model streamlines vari- Energy Wa ste er at W Figure 1.1 The Hammarby Model, Stockholm: An Example of Integrated Planning and Management Source: City of Stockholm, Fortum, Stockholm Water Company. 20 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES ous systems of infrastructure and urban service ment). This step had several positive ramifica- delivery and provides the foundation and blue- tions. First, by being housed in the city’s print for achieving the sustainability objectives Department of Roads and Real Estate, the proj- outlined above. ect team had greater access to and control over The initial findings of the preliminary eval- public funds. In addition, the project team was uations of the first phase of development, Sikla in a much stronger position to leverage and ne- Ude (SU), compared with a reference scenario gotiate with private interests. The structuring (Ref ) are shown in figure 1.2: a 30 percent re- of the team was established as follows. Repre- duction in nonrenewable energy use (NRE), a sentatives of the city departments of planning, 41 percent reduction in water use, a 29 percent roads and real estate, water and sewage, waste, reduction in global warming potential (GWP), and energy were members of the team. The a 41 percent reduction in photochemical ozone various departments of the city were integrated creation production (POCP), a 36 percent re- into a single fabric led by a project manager and duction in acidification potential (AP), a 68 an environmental officer who were charged by percent reduction in eutrophication potential the city with the responsibility to guide and (EP), and a 33 percent reduction in radioactive influence the public and private stakeholders waste (RW). toward the realization of the environmental ob- Success in a project such as Hammarby jectives of the project.2 Sjöstad depends on coordination among key stakeholders. To channel all efforts in a single Curitiba: Cost is not a major barrier direction, the city appointed a project team in Sustainable urban development in developing 1997. In 1998, the project team was incorporated countries has also been successfully undertaken into the city’s Department of Roads and Real by forward-looking cities that possess relatively Estate (now called the Development Depart- limited fiscal resources. Consider the case of Figure 1.2 Initial First-Phase Results of Hammarby Sjöstad according to the Environmental Load Profile Life-Cycle Analysis Tool Source: Brick (2008). Note: The tool is described more fully in chapter 10. THE FRAMEWORK | 21 Curitiba, the capital of the state of Paraná, higher-density commercial and residential de- Brazil. Since the 1960s, through its innovative velopment along each structural axis, thereby approaches in urban planning, city manage- providing the economic density and user base ment, and transportation planning, Curitiba has to make the system financially sustainable. The been able sustainably to absorb a population color-coded bus system is designed to provide increase from 361,000 (in 1960) to 1,797,000 (in various levels of service (interdistrict, feeder, 2007) on what was initially a limited budget. It intermunicipal, and so on) and is integrated as a has provided critical urban services with a wid- single unified system within the land use plan. er coverage and smaller ecological footprint As a consequence, Curitiba has the highest than many cities with much greater fiscal re- rate of public transportation ridership in Brazil sources at their disposal. Moreover, while doing (45 percent). This means that Curitiba has one this, Curitiba has expanded its own fiscal capac- of the lowest rates of urban air pollution in the ity and economic base and has gained a reputa- country. Fuel loss caused by traffic congestion tion as one of the best examples in the world of was valued at US$930,000 in 2002, compared ecological and economic urban development. with US$13.4 million in Rio de Janeiro (CNT The most significant planning decision 2002, Vassoler 2007). In contrast, in 2000, con- made by Curitiba was to grow from the city gestion in 75 metropolitan areas in the United core outward in a radial linear branching pat- States caused fuel and time losses valued at tern, thereby opening up the city, while pre- US$67.5 billion (Downs 2004). If these areas in serving urban density and protecting green ar- the United States were planned and developed eas. This approach contrasts with the typical more efficiently, a major portion of the annual concentric, ad hoc development. To encourage recurring loss and the harmful emissions could effective linear urban growth along major be avoided. structural axes (rather than extensive sprawl), In the 1950s and 1960s, Curitiba suffered Curitiba pursued the incremental development from persistent flooding while construction of an integrated bus system (figure 1.3). Land and development were proceeding at a rapid use and zoning simultaneously encouraged pace. Additional drainage canals would have 2009 Figure 1.3 The Integrated Transportation Network, 1974–95 and 2009 Source: IPPUC (2009). 22 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES been required at an enormous cost. However, Jaime Lerner, who contributed to drafting by setting aside land for drainage and putting the city’s 1966 master plan and worked as pres- low-lying areas off limits for development, the ident of the institute in 1969 and 1970, was city managed to tackle the costly flooding prob- elected mayor of Curitiba three times (1971–75, lem and avoid the huge capital costs linked to 1979–83, and 1989–92). He is widely known as flood control and drainage (Rabinovitch and one of the most popular, creative, and success- Leitman 1996). The city turned these areas into ful mayors in Brazil, and his influence has parks planted with many trees and created ar- spread globally. He has won many awards, in- tificial lakes to hold floodwaters. Buses and bi- cluding awards from the United Nations Envi- cycle paths helped integrate the parks into the ronment Programme, the United Nations Chil- city’s transportation network (Rabinovitch and dren’s Fund, the International Institute for Leitman 1996). This is an excellent example of Energy Conservation, and the Prince Claus how ecological assets and green infrastructure Awards of the Netherlands. may be integrated in urban design. The cost of The current administration has achieved this strategy, including the relocation costs of wide-ranging success by taking on innovative slum dwellers, has been estimated at five times new projects with a sustained focus on social, less than the cost of building concrete canals. environmental, and urban planning issues Also, as a result, the property values of neigh- through substantive consultation with public boring areas appreciated, as did tax revenues. audiences. Mayor Carlos Richa, who began his A special program allowed developers to administration in 2004, enjoys great popularity, transfer their development rights to land in which was evident in his 77 percent approval locations the city desired to preserve to land in rating when he was reelected in October 2008. locations the city desired to develop and pro- vided incentives and tax breaks for the preser- vation of green areas, as well as historic and Powerful Lessons from cultural heritage sites. At the same time, Curitiba Best Practice Cities maintained its vibrant urban density along the axes of growth: population density rose from Curitiba, Stockholm, and Yokohama, as well as 1,410 to 4,161 persons per km2 between 1970 and the many other examples in this book, provide 2007, even as the green area per person rose the positive message that change at various from 1 square meter to 51.5 square meters. scales is possible, and some of the dominant Much of the success of Curitiba may be at- myths about urban sustainability (such as the tributed to the Institute for Research and Urban high cost) are not always based in fact. Let us Planning of Curitiba. Established in 1965, the examine some of these lessons a bit more. institute is a powerful independent municipal public authority and serves as the research, plan- Many solutions are affordable even if ning, implementation, and supervision agency in budgets are limited the city. The institute has enabled coordination One of the biggest, most prevalent misconcep- among the different elements in urban develop- tions is that innovative measures are not ment and has been the most important factor in affordable and that they do not generate sig- ensuring continuity and consistency in the plan- nificant returns. As concretely demonstrated ning process through successive city administra- by the cases of Curitiba and Yokohama, this is tions. Its imaginative and integrated urban certainly not true. Many creative, practical, planning, development, and management solu- and cost-effective solutions simultaneously tions have significantly reduced the inefficien- achieve greater benefits than business-as- cies associated with piecemeal development. usual scenarios. THE FRAMEWORK | 23 An additional case helps underscore this ning are not significant. However, as shown by lesson. The municipality of Emfuleni, South Curitiba, sustained commitment and invest- Africa initiated an energy and water conserva- ment in maintaining strong technical, adminis- tion project that achieved savings of 7 billion trative, and institutional capacity are necessary. liters of water and 14 million kilowatt-hours If they are designed and implemented ap- per year. At a cost of only US$1.8 million, the propriately, policy and regulatory measures project saved over US$4 million each year, can also generate environmental, fiscal, and meaning that the project paid for itself in less economic gains. Households and businesses than six months. Because the project contract represent major components in energy and re- was financed and implemented by an energy source consumption and waste generation, and service company, the municipality not only their savings in these areas may be translated saved large sums of money because of reduced into economic and fiscal gains for a city. Thus, water losses and pumping costs, but also did since the mid-1970s, California’s utility improve- not have to pay for the investment up front. ment programs and energy efficiency policies, Meanwhile, the energy service company re- which consist of standards and research and couped its investment quickly by sharing in the development, have held per capita electricity cost savings (USAID 2005). use constant, while per capita electricity use Ample evidence similar to Emfuleni’s expe- has risen by nearly 80 percent elsewhere in the rience indicates that steps to improve energy United States. This has generated substantial and resource efficiencies can bring about strong savings among consumers, households, and fiscal and economic gains. Thus, while solid businesses in California (California Air Resourc- waste management in many medium-size cities es Board 2008). Over the past three decades, can account for 40 to 50 percent of the total mu- consumers in California have saved more than nicipal budget, programs such as the one in Yo- US$50 billion through policies promoting kohama offer a powerful illustration of the sig- appliance efficiency and building efficiency. nificant returns that may be achieved and the Educational programs and awareness cam- capital costs that may be avoided (Pagiola and paigns may also influence consumption pat- others 2002). For cities and utilities seeking terns without significant resource expenditures. ways to meet budget shortfalls or save munici- pal expenditures so as to spend more on worthy Success is achievable through existing social pursuits (such as extending tap water ser- proven technologies and appropriate vices, waste collection and treatment, or street- new technologies lighting coverage to slums), there is no better Best practices suggest that success depends place to look for new funds than the cost savings less on new technologies and more on appro- achieved through resource use efficiency. priate technologies. In most cities, expensive Effective and well-coordinated urban plan- hydrogen-fueled cars are less relevant to trans- ning and land policies and appropriate spatial portation efficiency than expanding the net- layouts can provide strong and sustained long- work of bicycle- and pedestrian-friendly path- term development and compound the econom- ways. Simple technology solutions such as the ic, social, and environmental returns. Effective installation of insulation in homes or water- urban planning and land policies can help inte- efficient faucets often generate more cost grate the urban poor into the economic, social, savings than do many new technologies (EIU and physical fabric of a city, thereby proving to 2008). Many of the new technology options are be economically beneficial to cities, national often mistakenly considered commercially un- governments, and the urban poor themselves. viable because an accurate and full cost-benefit The financial outlays required for good plan- analysis from a life-cycle point of view has not 24 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES been carried out and because new technolo- locked into development patterns—such as gies must sometimes compete with the embed- sprawled spatial form, building heights and ded subsidies for older technologies. An exam- setbacks, parking allocations, street widths, ple is the high implied subsidy for automobiles road patterns, infrastructure systems, con- provided by free or inexpensive parking on sumption trends, and so on—that cannot be public lands and by extensive highway con- easily changed. In many cases, performance as struction. The simplest solution sometimes in- measured in sustainability indicators is signifi- volves embracing appropriate new technolo- cantly better in cities in developing countries gies through bulk procurement by cities and than in cities in developed countries. It is im- their partners, incubating new technologies portant to remember that most energy and re- through phased subsidy schemes until econo- sources are consumed and most waste is gen- mies of scale are able to bring down local pric- erated in developed countries. There are es, or public awareness campaigns. In cases additional differences in these patterns across where local production may fill the need, the developed countries. For instance, European impact on local economic development can be cities consume much less energy and are signifi- a significant added value. The manufacture cantly more ecological and well planned relative and installation of efficient technologies help to North American cites, even though the level to circulate money within the community, gen- of development of the two regions is similar. erating and retaining new local employment This situation is partly the result of environ- instead of exporting money for the purchase of ment-friendly city, national, or European water or energy commodities. Countries such Union–wide policies that promote clean energy as Denmark and Sweden have invested in the and energy efficiency. Europeans pay higher incubation of new technologies and are reap- energy prices and have historical and cultural ing the rewards. There is now a growing inter- preferences for compact urban form and high- national demand for much of their technologi- quality public transportation. This is also attrib- cal expertise. utable to regulations requiring automakers in Europe and Japan to produce cars that are Developing countries should take pride in much more fuel efficient than are the cars pro- homegrown solutions duced in the United States. By selecting and As cities in developing countries grow in size combining actions suitable to their own capaci- and affluence, city authorities should first look ties and needs, city authorities may adapt these at the innovation taking place within their own lessons into their own homegrown solutions. city boundaries. Often, local interest groups, universities, or institutional stakeholders might Many solutions benefit the poor indirectly already be lobbying for change and piloting in- and directly novations within the unique cultural context of Achieving fiscal gains in city expenditures and the cities. Building on these homegrown initia- utility payments can free up money for social tives, the city administration may begin to look investment and, thus, indirectly benefit the poor- more systematically into the successful exam- est segments of urban populations. Further- ple of cities that began their efforts in the con- more, because poor people are so dependent on text of similar constraints: for many cities in land policies and urban services, many planning developing countries, Curitiba might prove a measures taken by cities may offer other direct relevant example. It is as important to learn and substantial benefits. For example, regulatory from the failures of some cities as it is to learn reform and effective urban planning and land from the examples of best practice. Many cities use policies have a powerful direct impact in more developed western countries are through improvements in the situation of the THE FRAMEWORK | 25 poor by reducing the prices for land and housing. practices exist in strategic long-term planning The poor may also benefit directly from more and regional growth management, and the ap- public transportation, pedestrian access, and bi- pearance of new tools for systems analysis and cycle paths; improved water access, sanitation, mapping offer potential for more well integrat- and electricity connections; the provision of safe ed, practical, and rigorous analysis. Because cooking fuels; and energy-efficient light-emit- successful cities are often fundamental to suc- ting diode lights in slums. Better environmental cessful nations, the higher levels of government standards to address industrial pollution will should be key partners in helping cities take the strongly enhance living conditions among the initiative. There is also a growing commitment poor. Innovative programs such as the Orangi at the international level to support cities and to Pilot Program in Karachi, Pakistan have in- finance investments that enable ecological and volved the poor directly in community-based economic sustainability in cities. New funding sanitation construction projects, offered jobs opportunities have emerged for city authorities to families, and achieved the extremely cost- in developing countries who are willing to take effective construction of local sanitation net- steps to achieve sustainable urban development, works that link to the trunk lines of cities. The particularly measures promoting energy and re- money and the services contribute to local eco- source efficiency that lead to reductions in nomic development by generating employment greenhouse gas emissions. New accounting and income, improving environmental condi- methods for estimating the full costs and bene- tions, increasing home values, and creating fits of various policy, planning, and investment local ownership in neighborhoods. options are also being used (for example, life- cycle costing). Channeling these opportunities toward a massive scale and accelerating the pace Opportunities to Capitalize of urban development create the potential for tremendous impact. The challenge that lies ahead is to take full ad- An increasing number of cities have initiated vantage of the many opportunities created by actions to achieve greater ecological and eco- rapid change and successful innovation. Best nomic sustainability according to their own visions, needs, and capacities. Their limited resources or capacities do not discourage these A case study from Dhaka, Bangladesh, illustrates the potential for im- cities. Some cities demonstrate strong leader- proving conditions among the urban poor through interventions in the ship in pioneering new approaches; some use urban environment. Waste Concern, a nonprofit organization that works well-established approaches and excel in the with the city government, succeeded in reducing emissions in Dhaka by implementation of these approaches; and some composting solid waste instead of burning or flaring and then selling the work with the international community to waste to fertilizer companies. The initiative is helping to reduce 52 per- learn from best practices and invest in techni- cent of the generated solid waste that remains uncollected in Dhaka. cal, institutional, and administrative capacity. The city provides public land for community composting. Waste Concern The Eco2 Cities Initiative has been devel- coordinates with the city to undertake the house-to-house collection oped to enable cities in developing countries to of solid waste in rickshaw bicycles and bring the waste to processing benefit from the promise of a more rewarding plants. Organic waste is separated from other rubbish. Waste is compos- and sustainable growth trajectory while the ted into enriched biofertilizers. Waste Concern arranges for fertilizer companies to purchase and nationally market the compost-based fertil- window of opportunity is still open. The chap- izer. This approach has the potential to create 16,000 new jobs for the ters hereafter provide a detailed framework poor of Dhaka and 90,000 new jobs for the poor across Bangladesh. that may be adapted by cities in developing countries to work systematically toward ac- Source: C40 Cities (2007), Enayetulla and Hashimi (2006). complishing many more positive results. 26 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Notes ————. 2008. “Heisei 20 nendo jigyou gaiyou” 平成20 年度事業概要 [Operation outline for fiscal year 2008]. Resources and Wastes Recycling Bureau, 1. The data vary depending on sources and City of Yokohama, Japan. http://www.city. methodologies. These are data of the yokohama.jp/me/pcpb/keikaku/jigyo_ International Energy Agency. gaiyou/20gaiyou/ (accessed February 2009). 2. The information in this paragraph has been ————. 2009a. 横浜市統計書[web版] 月別世帯数及び provided by the City of Stockholm. 人口 [Yokohama statistical reports (web version): Monthly number of households and population]. Yokohama Statistics Portal, City of Yokohama, Japan. http://www.city.yokohama.jp/me/stat/ References toukeisho/new/#02 (accessed February 2009). ————. 2009b. ごみの分別による効果 ‑ 二酸化炭素削 Angel, Shlomo, Stephen C. Sheppard, and Daniel L. 減効果 [Effect of segregation of garbage— Civco. 2005. The Dynamics of Global Urban reduction of carbon dioxide]. Resources and Expansion. Washington, DC: World Bank. Wastes Recycling Bureau, City of Yokohama, Brick, Karolina. 2008. “Barriers for Implementation Japan. http://www.city.yokohama.jp/me/pcpb/ of the Environmental Load Profile and Other shisetsu/shigenkai/lca/ (accessed February 2009). LCA-Based Tools.” Licentiate thesis, Royal CNT (Confederação Nacional do Transporte). 2002. Institute of Technology, Stockholm. “Pesquisa da Seção de Passageiros CNT, 2002; Bylund, Jonas R. 2003. “What’s the Problem with Relatório Analítico: Avaliação da Operação dos Non-conventional Technology? The Stockholm Corredores de Transporte Urbano por Ônibus no Local Investment Programme and the Eco- Brasil.” Report. CNT, Brasília. cycling Districts.” In ECEEE 2003 Summer Study Downs, Anthony. 2004. Still Stuck in Traffic: Coping Proceedings: Time to Turn Down Energy Demand, with Peak-Hour Traffic Congestion, rev. ed. ed. Sophie Attali, Eliane Métreau, Mélisande Washington, DC: Brookings Institution Press. Prône, and Kenya Tillerson, 853–62. Stockholm: Enayetullah, Iftekhar and Quazi Sarwar Imtiaz European Council for an Energy Efficient Hashimi. 2006. “Community Based Solid Waste Economy. http://www.eceee.org/conference_ Management Through Public-Private-Community proceedings/eceee/2003c/Panel_4/4214bylund/. Partnerships: Experience of Waste Concern in C40 Cities. 2007. “Waste: Dhaka, Bangladesh.” C40 Bangladesh.” Presentation at Asia 3R Conference, Cities Climate Leadership Group. London, U.K. Tokyo, Japan. October 31. http://www.env.go.jp/ http://www.c40cities.org/bestpractices/waste/ recycle/3r/en/asia.html. dhaka_organic.jsp. EIU (Economist Intelligence Unit). 2008. “Sustainable California Air Resources Board. 2008. “Climate Urban Infrastructure, London Edition: A View to Change Draft Scoping Plan.” Sacramento, CA. 2025.” Siemens AG, Munich. http://www.arb.ca.gov/cc/scopingplan/ Florida, Richard. 2002. Rise of the Creative Class: And document/draftscopingplan.pdf How It’s Transforming Work, Leisure, Community Calthorpe, Peter, and William B. Fulton. 2001. The and Everyday Life. New York: Basic Books. Regional City: Planning for the End of Sprawl. Gill, Indermit, and Homi Kharas. 2007. An East Asian Washington, DC: Island Press. Renaissance. Washington, DC: World Bank. City of Yokohama. 2003. “Yokohama shi ippan IPPUC (Institute for Research and Urban Planning of haikibutsu shori kihon keikaku, Yokohama G30 Curitiba). 2009. “The City of Curitiba: Planning plan.” 横浜市一般廃棄物処理基本計画、 横浜G30 for Sustainability; An Approach All Cities Can プラン [City of Yokohama, master plan for Afford.” Presentation at “World Bank Energy management of general waste: Yokohama G30 Week 2009,” World Bank, Washington, DC, Plan]. City of Yokohama, Japan. http://www.city. March 31. yokohama.jp/me/pcpb/keikaku/kei1.html (accessed February 2009). Pagiola, Stefano, Roberto Martin-Hurtado, Priya Shyamsundar, Muthukumara Mani, and Patricia ————. 2006. “Yokohama G30 plan, kenshou to kongo Silva. 2002. “Generating Public Sector Resources no tenkai ni tsuite” 横浜G30プラン 「検証と今後の to Finance Sustainable Development: Revenue 展開」 について [Yokohama G30 Plan: verification and Incentive Effects.” Technical Paper 538, and next steps]. Resources and Wastes Recycling Environment Series, World Bank, Washington, DC. Bureau, City of Yokohama, Japan. http://www. city.yokohama.jp/me/pcpb/keikaku/G30rolling/ (accessed February 2009). THE FRAMEWORK | 27 Rabinovitch, Jonas and Josef Leitman. 1996. “Urban Vassoler, Ivani. 2007. Urban Brazil: Visions, Afflictions, Planning in Curitiba.” In Sustainable Urban and Governance Lessons. New York: Cambria Development Reader, eds. Stephen Wheeler and Press. Timothy Beatley. 2008. New York: Routledge. Wheeler, Stephen M., and Timothy Beatley, eds. 2007. Rees, William E. 2001. “Global Change, Ecological The Sustainable Urban Development Reader. Footprints and Urban Sustainability.” In How Routledge Urban Reader Series. New York: Green Is the City? Sustainability Assessments and Routledge. the Management of Urban Environments, ed. World Bank. 1997. “Expanding the Measures of Dimitri Divuyst, 37–42. New York: Columbia Wealth: Indicators of Environmentally Sustain- University Press. able Development.” Environmentally Sustainable Stern, Nicholas. 2007. The Economics of Climate Development Studies and Monographs Series 17, Change: The Stern Review. New York: World Bank, Washington, DC. Cambridge University Press. ————. 2003. “Looking Beyond Short-Term Shocks.” Swedish Environmental Protection Agency. 2004. East Asia Update, April, East Asia and Pacific “Local Investment Programmes: The Way Region, World Bank, Washington, DC. to a Sustainable Society.” http://www. ————. 2007. Cost of Pollution in China: Economic naturvardsverket.se/Documents/ Estimates of Physical Damages. Washington, DC: publikationer/91-620-8174-8.pdf. World Bank. http://siteresources.worldbank.org/ UNFPA (United Nations Population Fund). 2007. INTEAPREGTOPENVIRONMENT/Resources/ State of World Population 2007: Unleashing the China_Cost_of_Pollution.pdf. Potential of Urban Growth. New York: UNFPA. ————. 2008. World Development Report 2009: UN-Habitat (United Nations Human Settlements Reshaping Economic Geography. Washington, DC: Programme). 2003. The Challenge of Slums: World Bank. Global Report on Human Settlements 2003. ————. 2009. “The World Bank Urban and Local London: Earthscan Publications. Government Strategy: Concept and Issues Note.” ————. 2008. The State of the World’s Cities 2008/2009: World Bank, Washington, DC. Harmonious Cities. London: Earthscan Publica- World Urbanization Prospects Database. Population tions. Division, Department of Economic and Social USAID (U.S. Agency for International Development). Affairs, United Nations. http://esa.un.org/unup/ 2005. “Watergy Program Pioneers Performance index.asp (accessed May 2009). Contract to Save Water, Energy in S. Africa.” Energy Update 2 (April/May): 6–7. 28 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 2 Eco² Cities Initiative: Principles and Pathways Chapter 1 explores the many opportunities offered to cities as a consequence of change. It also uses examples of best practice drawn from cities worldwide to illustrate the potential environmental and economic benefits associated with innovative approaches. If the knowledge and means exist to de- sign and implement such measures and if practical and powerful solutions have been demonstrated even among cities with limited budgets, then why are other cities not taking advantage of these op- portunities? Why are these examples so rare? Chapter 2 begins with a brief overview of the many challenges cities face in trying to adopt more well integrated approaches. Most readers are familiar with these challenges (unfortunately, they are common), and a detailed accounting is unnecessary. However, the challenges are worth high- lighting because, together with the valuable ground-level lessons derived from the experience of best practice cities, they help to frame our strategic response: the key strategies and principles that define the Eco2 Cities Initiative. After reviewing challenges, the chapter describes a set of four overarching principles that provide the scope and direction for all elements of the Eco2 initiative. Adopting these principles represents the first step toward the Eco2 approach. Basically, the principles are proven strategies that can help cities seize new opportunities, overcome challenges, and transfer best practices to every new project. At the end of the chapter, a summary table is provided of the Eco2 approach. The principles are translated into a number of core program elements, and an example is provided for how any city might implement the program in a step-by-step fashion and create its own unique Eco2 pathway. THE FRAMEWORK | 29 The Many Challenges That Cities Face • Fragmentation of responsibilities; separate budgets, timelines, and goals; and piecemeal Limited resources solutions that serve individual interests In general, cities in developing countries face well, but that, in combination, are precisely significant administrative, technical, and finan- wrong cial capacity constraints. These cities are also • Excessive specialization and overwhelming challenged by the rapid pace of urbanization. complexity; silos of expertise; and incomplete For these reasons, city staff tend to focus their perspectives on urban resource use and the attention on chronic problems and on the day- associated costs to-day and sector-to-sector problems that are piled at the front of the counter. Ask any city • Single-purpose funding mechanisms that administrator, and you will hear the same story: fail to address cities directly, that fail to no time exists to take on long-term plans address the urban system as a whole, or or cross-cutting agendas like the Eco2 Cities that fail to link program objectives to the Initiative. priority issues in a city • Lengthy and challenging political processes Misinformation for allocating funds at all scales Another reason for the lack of initiative is the fact that the lessons described in chapter 1 have • Short-term and narrow accounting formats not been widely shared or understood. Instead, that ignore indirect costs and benefits, sep- many local decision makers operate under a arate capital costs from operating and series of myths and false assumptions. Solutions maintenance costs, fail to capitalize the like the Eco2 approach are perceived as demon- replacement of systems, do not take into stration projects, rather than a permanent, alter- account all capital assets (manufactured, native approach to planning, developing, and ecological, human, and social) and risks, managing cities. They are assumed to be costly, and mislead investors and the public dependent on advanced and complex technolo- gies, and practical only for wealthy neighbor- Locked-in relationships among networks hoods and well-resourced city administrations. of public and private institutions and This attitude is reinforced by the all-too- existing technologies common assumption that the most advanced Some dimensions of urban planning reflect a approach to city building is to import the styles complex set of entrenched relationships among and technologies used in a majority of western many different organizations, public and pri- cities (or in the growing number of real estate vate. Because some groups benefit from the ventures opportunistically branded as eco-cities) status quo, they actively promote more of the rather than relying on local culture and ecology. same and create obstacles to investment in al- Correcting misconceptions may need to be ternatives. one of the first stepping stones in a city’s Eco2 A well-known example is the highway pathway. lobby, which represents everyone who makes money from roads and has been accused of Institutional barriers promoting massive investments in road building Inappropriate institutional structures and regardless of the societal costs and alternative mind-sets are commonly cited as the greatest technologies. challenges when cities consider implementing Cities commonly become locked in to cer- integrated solutions. Some of the most obvious tain technologies as a result of past capital in- examples include the following: vestments in facilities and the ongoing need to 30 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES A techno-institutional complex arises because large technological systems (such as electricity generation, distribution, and end use), cannot be understood fully as a set of discrete technological artifacts, but must be seen as complex systems of technologies embedded in a powerful conditioning social context of public and private institutions. Such complexes are developed through a path-dependent, coevolutionary process involving positive feedbacks among technological infrastructures and the organizations and institutions that create, diffuse, and use them. Once locked in, the complexes are difficult to displace and may lock out alternative technologies for extended periods even if the alternatives demonstrate improvements on the established complex. Source: Unruh (2000). recover sunk costs and realize returns. If some- sort to have, the process of preliminary engi- one proposes to invest in demand-side man- neering or concept design requires a much agement (DSM) or meet the need for services more open and innovative mind-set, which is in other ways, the effect is to reduce the flow of difficult to find without engaging specialty revenues below projections; as a consequence, firms at added expense and risk. the existing facilities remain oversized and may become economically unviable. This issue The continuing dominance of may occur whenever cities or their financial 19th century models partners invest in new energy plants, water Part of the difficulty with adopting a program factories, wastewater treatment plants, solid such as Eco2 is that current design and plan- waste transfer stations, and incinerators. ning practices among cities are rooted in pat- Under such circumstances, cities commonly terns established in the 19th century, when an use policy to prevent innovative approaches. If abundance of coal, combined with new manu- they are not developed properly, public-private facturing technologies, brought unprecedented partnerships may offer another example of increases in wealth and improvements in the how cities become locked in to technologies by quality of life. By the beginning of the last cen- entering into contracts that guarantee a long- tury, millions of families in Europe and North term demand for services of a single type. America suddenly had access to clean water, sewage treatment, space heating, lighting, Human inertia clean streets, and public transit. This wave of A new planning process that involves many societal progress and modernism was achieved planners and designers will certainly challenge through single-purpose, centralized, supply- the natural tendency of people, particularly oriented utilities that operated in silos (that is, professionals, to resist change of any kind. entirely independently), and capitalized on Without a focused effort to manage change, economies of scale, abundant resources, and human inertia will invariably reproduce the open access to public goods such as water and same patterns of land development and exactly the atmosphere. the same infrastructure in city after city, all in Hugely successful in their time, the 19th accordance with standard practice. It is diffi- century models are no longer the best solution cult to change the mold. If conservative engi- and, in fact, have become part of the problem. neers are hired to consider a type of system The world is more crowded and complex and they have never previously designed, they will requires much more efficient, longer-term so- invariably condemn the idea. While conserva- lutions for servicing urban areas. Nonetheless, tive engineers are, in most respects, the best the 19th century models are integral to our pro- THE FRAMEWORK | 31 fessional training and institutional structures. platform for collaborative design and decision A program that encourages a more well inte- making. And, without this expanded platform, grated approach must overcome the inertia of it is difficult to explore creative new approach- past practice and the natural resistance to es to the design and management of integrated change within established institutions and systems and to coordinate policies for imple- groups of practicing professionals. menting the one-system approach. Prioritiza- tion, sequencing, and the effectiveness of investments in promoting sustainability and A Principled Approach That Can resiliency will be greatly enhanced if one is Overcome the Challenges able to appreciate the city as a single system and if one may rely on an expanded platform of The Eco2 initiative is designed on the premise collaboration. that many of the opportunities and challenges The synergy among the principles is more described above may be addressed most effec- apparent in other chapters. The Eco2 princi- tively by adopting new principles. These prin- ples are explored below. ciples may be used to guide the process of de- signing, implementing, and financing urban PRINCIPLE 1: A city-based approach development. The principles function as super strategies for cities in transition. The four Eco2 A city-based approach is the first principle, and principles are (1) a city-based approach en- it carries two complementary messages. First, abling local governments to lead a develop- it recognizes that cities are now on the front ment process that takes into account specific lines in managing change and leading an inte- circumstances, including the local ecology; grated approach. Only at the city level is it pos- (2) an expanded platform for collaborative de- sible to integrate the many layers of site-specific sign and decision making that accomplishes information and to work closely and rapidly sustained synergy by coordinating and aligning with the many stakeholders who need input on the actions of key stakeholders; (3) a one-system an integrated solution. In addition, fiscal and approach enabling cities to realize the benefits administrative decentralization has brought of integration by planning, designing, and man- important decision-making and management aging the whole urban system; and (4) an invest- responsibilities to local governments. Second, ment framework that values sustainability and the city-based approach serves to emphasize resiliency by incorporating and accounting for the importance of incorporating within any de- life-cycle analysis, the value of all capital assets velopment program the unique aspects of (manufactured, natural, human, and social), place, especially ecological assets. Increasingly, and a broader scope of risk assessments in cities depend on their natural landscapes to decision making. provide food and recreation, capture and store Each of these strategies has been elevated to water and energy, absorb wastes, and satisfy the status of super strategy or principle be- many other needs. Protecting and enhancing cause it is universally applicable, crucial to suc- ecological assets—the natural capital—are a cess (based on the experience of best practice priority in directing (and constraining) urban cities), and frequently ignored or underappre- growth. A city-based approach is thus place ciated. specific and focuses on enabling local leader- The four principles are interrelated and ship and local ecologies. mutually supportive. For example, without a We look now at each of these in turn. strong city-based approach, it is difficult to en- Depending on their size, cities are the most gage key stakeholders fully through an expanded influential institutions within the modern 32 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES state. Not only do they represent the engines of the economy and provide homes for a majority The living city is not an island. Its metabolism is of the population, they are also responsible for linked to surrounding ecosystems, and its people a majority of resource and energy consumption and culture are networked to other viable urban and harmful emissions. Thus, a city that works cells to form a living and developing tissue that is with its key sectors and stakeholders is espe- a net primary producer, not a parasitic system. cially well placed to explore Eco2 solutions. Source: Goa 2100 Plan, 2003. For information on the Goa 2100 Cities also have critical instruments at their Plan, see Revi and others 2006. disposal (zoning, permits, approvals, taxes, and fees) and have been empowered through fiscal and policy decentralization in many countries. are centers of resource consumption, and ulti- It is not therefore surprising that almost all the mately, resource efficiency will depend greatly case studies of Eco2 solutions have been pro- on how well the city is integrated into the local duced in cities that have taken leadership and and regional ecologies. City planning is aimed applied a city-based approach. at protecting and regenerating irreplaceable When a city takes leadership in setting pri- natural capital, especially the natural assets orities and implementing solutions, two factors and ecological services throughout the urban appear to be critical: its level of commitment region in which the city is located. All cities and its capacity to act. Decision makers need to need to be fully integrated into a viable local be convinced of the value of an Eco2 approach, ecology. The integration of cities into local and they need to mobilize political support ecologies may occur at all scales, from food within their constituencies. A city’s success gardens and naturescaping to planning of con- will depend on how effectively and creatively it tainment boundaries that effectively separate uses and develops the levers of influence within urban areas from natural areas. its control. These may range from the city’s Ideally, the ecological elements mix and in- human and technical capacity and knowledge tersect within and stretch throughout the city of local realities to its formal urban planning as a natural blue-green web, providing multiple tools and municipal financing strategies. Often, services to the local economy. Ecologies and to act effectively, a city may need technical, open green spaces serve as a kind of green in- administrative, and financial support, includ- frastructure. They might pollinate crops and ing knowledge, skills, and tools. orchards on behalf of agrifood systems, or re- A city’s capacity to act will also depend on charge aquifers on behalf of the water supply the levers of influence beyond its realm of con- system, or channel wind toward open hilltops trol. Often its legislative, administrative, and or water basins on behalf of the local energy fiscal powers are circumscribed by national or utility. Green infrastructure may also serve to state governments, the cooperation of which is enhance larger ecological systems. crucial. At the same time, given the growing predominance of metropolitan areas that span PRINCIPLE 2: An expanded platform for the jurisdiction of more than a single city, coor- collaborative design and dination is often required at the metropolitan decision making level to implement optimal interventions within and across all sectors. Thus, leadership by cit- One of the characteristics of resource-efficient ies needs to occur at many levels, including the and well-planned cities is their ability to cap- region. ture synergies through integrated approaches The city-based approach is not only politi- and to coordinate actions among multiple cal, but also fundamentally ecological. Cities stakeholders over the long term. An integrated THE FRAMEWORK | 33 approach and an alignment of policies are not ride-share program for employees, or energy likely to emerge by default. The process requires and transportation peak-load management a platform that is suitable for the expanded through the adjustment of working hours). scope of activity. At the second tier, projects will involve the Cities are dynamic phenomena. They city in its capacity as a provider of services and emerge from the overlapping actions of many include its formal planning, regulatory, and stakeholders (the public sector, the private sec- decision-making powers; this may include water tor, civil society groups, and citizens), each of provision, land use planning, or transit develop- which has influence over the design and man- ment. At this level, greater collaboration is agement of the elements composing the city. warranted with other stakeholders who may Although none of these groups of stakeholders influence and may be affected by the outcomes. has the mandate or capacity to address the per- The third tier of the expanded platform will formance of the city as a system, they all stand entail collaboration at the scale of the entire to benefit if the elements are well integrated. urban area or region. This may pertain to issues However, without a proactive effort to bring such as the development of new land or metro- these stakeholders together and to integrate politan management and may necessarily plans and policies, the likelihood exists that involve senior government officials, key private some policies and actions will conflict and that sector partners, and civil society. In collaborat- the costs of conflict will be borne by the economy ing at the scale of the entire urban area, the city and the environment. Even without direct con- may lack the authority to coordinate the actions flict, the tendency for all stakeholders to act in of many stakeholders. Senior government offi- their own immediate interests represents a cials, utilities, landowners, and private sector barrier to the potential for positive synergies groups all have their own plans and agendas. and optimum solutions. At this level, it is often appropriate to develop Cities are increasingly experiencing a splin- an overarching planning framework, including tering of the responsibility for infrastructure, a growth management strategy, which sets the an overlapping in jurisdictions, and an in- context for all other plans in the urban area crease in the private sector ownership of key by all other stakeholders. At each of these assets. An additional constraint is the political scales, different levels of collaboration are election cycle, which may limit the capacity of necessary and different working groups are cities to execute policies over the long term. required, all participating in a city-led collab- The typical four-year election cycle in local orative process. government undermines sustainable decision As a city embarks on its Eco2 pathway, many making because the change in leadership fre- projects might be launched over a single year quently means a loss in continuity. If cities are in which different players in the private sector, to lead in the process of urban development, the public sector, the civil sector, and other especially in the context of rapid urbanization, sectors may wish to participate or may have it is important that plans compensate for this valuable information or assistance to offer at disadvantage. various stages. For this reason, it is important A city may lead a collaborative process on at for a city to initiate a process through which least three tiers of an expanded platform. At participants may develop a shared long-term the first tier, projects may be completely within planning framework that guides all projects the realm of control of the city administration and efforts and creates the opportunity for and will require that a city get its own house in groups to align their policies and programs order (for example, an energy efficiency up- around a common set of long-term goals and grade for all municipally owned buildings, or a strategies. The framework might also set the 34 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES context for specific projects. In many cases, a search and Urban Planning of Curitiba), primary collaborative working group may gen- provided a particularly strong basis for ongo- erate subgroups that meet as needed and that ing collaboration in long-term planning. This may also benefit from professional facilitation, approach has now been followed in many other research, and other support. The planning countries in Latin America. Because the plat- framework can be a powerful platform for col- form for decision making has been extended laborative design and decision making and can to include planning institutes and because enable the city to steer the efforts of all stake- alignment among all stakeholders has been holders toward a commonly agreed vision. encouraged, the governance of a city becomes Because Eco2 focuses on integrated design less vulnerable to the inevitable disruptions solutions and integrated implementation poli- created by elections, political incidents, and cies, projects may invariably expand to include the manipulation of policy by special interest multiple stakeholders and require a highly groups and swing voters at election time. An diverse pool of expertise. expanded platform for collaboration compen- Once the formal collaborative process is in sates for the inherent short-term vision of the place, it also offers the opportunity for much democratic process. more intensive participation on particular proj- ects among stakeholders in design and imple- PRINCIPLE 3: A one-system approach mentation. For example, an integrated approach to neighborhood revitalization may benefit Chapter 1 offers specific examples of system from an iterative series of design workshops integration within cities, all of which have led that engage a variety of experts in different to sizable and lasting benefits. An integrated groups in creative design exercises. Regular approach to planning and management in participation in such creative design workshops Stockholm helped to improve resource effi- is much easier to arrange and approve if the ciency significantly in a large urban redevelop- groups that need to be involved are already par- ment project. In Yokohama, Japan, an integrat- ticipating in a formal collaborative process at ed approach to waste reduction, reuse, and the most senior level. The same is true during recycling saved over US$1 billion for the city, the implementation of preferred design solu- while allowing the city to achieve impressive tions. Essentially, an expanded platform for col- environmental gains. In Curitiba, an integrated laboration at different scales creates a mecha- and holistic approach to urban planning, trans- nism that may be used repeatedly to bring portation planning, and socioeconomic vitaliza- stakeholders together and to expedite the tion has enabled the city to achieve tremendous intensive and interdisciplinary process of the results across all sectors and among many design and implementation of Eco2 projects. stakeholder groups. There are many more Finally, the expanded platform for collabo- examples in this book. What distinguishes ration, in combination with a long-term plan- these cities from others is that they have broad- ning framework, is likely to increase the com- ened their perspective to adopt a one-system mitment by local governments to longer-term approach, which they have pursued largely policies. It is much more difficult for a new through strategies of integration. council or mayor to reverse decisions if many A one-system approach enables cities to other stakeholders have participated in the plan, design, and manage the whole urban decisions and are cooperating through their system by integrating key subsystems. The own policy instruments. In the case of Curiti- approach thereby provides the opportunity for ba, Brazil, for example, the creation of a sepa- cities to realize many benefits through greater rate planning institute (the Institute for Re- optimization and synergy. THE FRAMEWORK | 35 the synchronization of policy, investment plan- ning, and regulations. Systems thinking can be defined as the art of simplifying complexity, Integration is a powerful concept for cities managing interdependency, and understanding choices. Once we un- (see chapter 5). So, where does the concept derstand something, once we see it as one system, we no longer see it as chaotic or complex. originate? And where might it take us in the Contrary to widely held belief, the popular notion of a multidisci- long run? plinary approach is not a systems approach. The ability to synthesize Integration is used here as it relates to the separate findings into a coherent whole seems far more critical than application of systems theory: seeing the full the ability to generate information from different perspectives. scope of elements that make up the city, how Source: Gharajedaghi (2006). these different elements are connected, and how changes in one element may affect the oth- ers. This systems perspective is a way of seeing the world that has emerged from studying eco- The one-system approach aims at taking logical systems, and in the end, it may help us full advantage of all the opportunities for inte- design and manage cities so that they become gration. Integration may apply to hard infra- efficient and adaptable in the same way that structure systems and land use planning. One natural ecologies are efficient and adaptable. may integrate elements within a sector or Ecological systems are characterized by mul- across sectors. Integration may be applied to tifunctionality among elements and the looping policies, stakeholders, plans, the sequencing of and cascading of resources through linked, financing mechanisms, and all of these in com- nested subsystems that greatly enhance pro- bination. In each case, the opportunities aris- ductive utility. They also embody powerful ing from integration tend to provide greater strategies for managing change—strategies such efficiency and increased utility for a given invest- as succession and evolution, self-organization, ment and improve ecological and economic and adaptive management. All these strategies performance. By applying the one-system are part of what we mean by the integrated or approach to every project, entire cities and one-system approach. The strategies serve two their surrounding natural and rural areas are purposes: they improve the efficiency of the sys- able to coalesce into a functional system that tem as a whole, maximizing assets and informa- works well as a new whole. tion quality over time, and they help the system The benefits of integration are especially at- adapt to change at the least cost and recover tractive because the efficiency gains tend to be quickly and fully from shocks. Many of these substantial and because the opportunities tend ideas are being applied by innovative cities that otherwise to be missed. The greatest success in have grasped the potential of these opportuni- best practice cities has been achieved (1) in joint ties for systemwide sustainability and resilience. land use, spatial and transportation planning, A one-system approach has many dimen- and coordinated policies; (2) through positive sions, but it is not complicated. The aim of sys- synergies across infrastructure sectors (such as tems thinking is to reduce complexity by un- the positive effect of increased water system derstanding how parts fit into a whole. The efficiency on energy efficiency because of the challenging aspect is overcoming the institu- reduction in the need for electricity to pump tional structures and inherited attitudes that water); (3) in integrated utility management prevent city leaders, investors, designers, us- systems (for instance, the reuse of sludge and ers, suppliers, and managers from working as a organic waste as biogas [methane] and fertilizer); team. Adopting the one-system approach as a (4) through technology solutions (such as com- principle for all projects is a good way to bring bined heat and power plants); and (5) through the team together. 36 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES PRINCIPLE 4: An investment framework are treated as zero value assets, and the related that values sustainability services they supply go unaccounted for. and resiliency For instance, city green areas are usually thought of as merely providing some sort of Despite a rising interest in sustainability in soft aesthetic value. But, in fact, green areas are many locations and a demonstrated capacity ecological assets that provide valuable services for urban design solutions, cities today are hav- and economic benefits in several ways: (1) they ing difficulty investing in systems that are long provide natural drainage (resulting in avoided term and ecological. Although many excep- infrastructure capital and maintenance costs tions exist, our time horizons for investments and reducing seasonal losses related to flooding); appear generally to be shrinking. Perhaps the (2) they may reduce the average temperature rapidly paced, deregulated global economy in cities (lowering the peak load demand on makes it especially difficult for corporations electricity, which can result in avoided capital and political leaders to take a long view. costs for installed power and related opera- Whatever the explanation, the simple con- tions and maintenance costs); (3) they absorb cept of investing in sustainability and resiliency carbon dioxide and release oxygen, are natural has become extremely difficult for cities to put air cleaners, and support overall citizen health; into action. Policies, plans, and projects are as- (4) they can be integrated into the public trans- sessed on their ability to provide short-term portation system as a network of bicycle paths financial returns or on economic valuations and pedestrian walkways to enhance utility; based on narrowly structured cost-benefit and (5) they have generally been shown to analyses from the perspectives of individual increase physical and mental well-being, while stakeholders. Investments are valued in mon- creating a sense of community and reducing etary terms, and what cannot be monetarized crime. If all of these services were truly valued is either ignored or addressed as externalities. and understood in the long term, then deci- Decisions are dominated by immediate capital sions in many cities might be made in a way costs, despite the fact that over 90 percent of similar to those in the case of Curitiba.1 the life-cycle costs for typical infrastructure To achieve ecological and economic sus- are often expended on operational mainte- tainability, decision making needs to be guided nance and rehabilitation. by a holistic perspective. This entails a new ac- Most cities worldwide have no real knowl- counting and assessment framework that al- edge of the long-term impacts of new develop- lows every city to adopt a life-cycle perspective ment on fiscal health. Life-cycle costs are back- and make investments that are fair to all stake- loaded, which means that future generations holders, effective at preserving all assets (man- will have to bear huge costs for the repair and ufactured, natural, human, and social), and replacement of infrastructure without any good for our long-term fiscal health. capitalization. In many cities in developed This framework will involve adopting a new countries, that particular future has already ar- range of indicators and benchmarks for assess- rived and is creating a massive infrastructure ing and rewarding the performance of all stake- deficit that can be addressed only through sub- holders. Longer-time horizons and life-cycle sidies or more debt financing. analysis of the implications of policies and in- At the same time, ecological assets, the ser- vestment options and strategies among multiple vices they provide, and the economic conse- stakeholders will need to be realized to reflect a quences of their depletion and destruction are truer, more inclusive, and more complete pic- not accounted for in most government budgets. ture. All capital assets (manufactured, natural, Because these resources are not measured, they human, and social) and the services they provide THE FRAMEWORK | 37 should be appropriately valued or priced and principles. Because the principles are at the then monitored through indicators. The com- core of the program, we may always fall back bination of indicators should be viewed as a on the principles if complications arise. whole so that the qualitative dimensions of city The analytical and operational framework life (cultural, historic, and aesthetic) are not ig- emerges from the principles. To begin, we de- nored in the assessment of costs and benefits. rive a set of core elements from each principle. The basis and implications of policy decisions, The core elements serve to implement the regulatory actions, and legislation will need to principles. They provide specific information be assessed within a much broader context and on new concepts and on the roles and respon- understanding of value. sibilities of Eco2 cities and their partners. Each At the same time, investing in sustainability core element is an arena of activity and learn- and resiliency will entail broadening the scope ing. (This is addressed in detail in subsequent of risk assessment and risk management to in- chapters.) clude managing the many indirect, difficult-to- Each city may translate the core elements measure risks that threaten the viability of an into a series of action items or stepping stones investment or even the city as a whole. In real- that adapt the elements to local conditions in a ity, cities today face multiple hazards that are logical, step-by-step sequence. The framework largely external to financial calculations. These summarizes how each principle leads to a set include sudden disruptions to systems, such as of core elements and stepping stones. epidemics, natural disasters, and socioeco- Together, the stepping stones for a particu- nomic changes. By proactively adopting the lar city constitute a unique pathway. The concepts of resiliency and adaptive capacity, pathway should include all the essential ac- cities will become more well positioned to ab- tions needed to take leadership, collaborate, sorb and respond to shocks and protect their design catalyst projects, and invest in pre- investments. ferred solutions. Implementing new methodologies and a Table 1.1 provides a summary of the core broader scope of accounting in many countries elements and stepping stones. Each item is will be difficult at the beginning. But the prin- described in more detail in subsequent chap- ciple behind such methods should be clearly ters. However, it is clear from the summary understood and considered by decision makers. that developing an Eco2 pathway is not a Curitiba did not undertake a detailed account- simple exercise, nor is it likely to be quick ing and valuation exercise before following and easy. For this reason, this book also in- its development agenda. But by appreciating troduces a number of methods and tools that the broader and longer-term perspective, it are designed to save time and guide deci- managed to focus on critical interventions sions. The methods and tools provide practi- that continue to pay lasting and compounded cal ways for cities to take leadership, collabo- benefits. rate, and analyze and assess ideas for Eco2 projects. The methods also address all as- pects of project implementation, including The Move from Principles to Core the use of an expanded accounting process Elements and a Unique Eco2 Pathway and a strategic approach to financing.2 It is up to city leaders to determine whether the The four principles define the scope of each Eco2 initiative is the kind of pathway they city’s unique pathway. Every aspect of a city’s are seeking. The following chapters describe pathway is linked directly to one or more of the the step-by-step processes. 38 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 1.1 The Eco² Cities: Principles and Pathways PRINCIPLES CORE ELEMENTS STEPPING STONES A city-based approach A development program that supports cities in Review the Eco2 Cities Initiative, and adapt the making good decisions and implementing these Eco2 principles to the local context, especially decisions using all levers of city influence and current issues of concern and the local political control constraints. A planning philosophy that recognizes the Identify champion(s) and the specific groups or fundamental role played by local ecological assets individuals who are vital to success. in the health and wealth of cities and their Obtain commitments from city councils and surrounding rural communities influential groups and people. An action-oriented network that provides city Work closely with national governments and, leaders with the full support of national where possible, dovetail the Eco2 elements so governments, the international development they clearly fit within national priorities. community (including the World Bank), and global best practice cities Seek a partnership with the international development community (including the World A decision support system with methods and Bank), best practice cities, and Eco2 Cities tools that adapt to varying levels of knowledge Initiative partners. and skill and provide cities with the technical, administrative, and financial capacity to develop Outline a process for building capacity, and an Eco2 pathway enhance the skills and knowledge of local professional staff. Develop fluency of concepts among local decision makers using case studies from this book and other supporting materials. An expanded platform for A three-tier platform that enables a city to Initiate a process for collaborative decision collaborative design and collaborate (1) as a model corporation, engaging making and integrated design to develop the decision making all city departments; (2) as a provider of services, Eco2 approach as a corporation, as a provider engaging residents, businesses, and contractors; of services, and as a leader within the larger and (3) as a leader and partner within the urban urban area. region, engaging senior government officials, Prepare a mandate and budget for a secretariat utilities, rural settlements, private sector that can support collaborative committees stakeholders, nongovernmental organizations, through background research on cross-cutting and academia issues and the facilitation of regular meetings, A shared long-term planning framework for communications products, and event planning. aligning and strengthening the policies of the city Prepare a long-term planning framework, in administration and key stakeholders and for collaboration with others, and seek consensus on guiding future work on Eco2 projects common goals and indicators of performance, an overarching growth management strategy, and an adaptive management approach. Select a catalyst project suitable for demonstrat- ing the Eco2 principles, aligned with the goals and strategies identified in the long-term planning framework. THE FRAMEWORK | 39 Table 1.1, continued PRINCIPLES CORE ELEMENTS STEPPING STONES A one-system approach Integrated infrastructure system design and Provide just-in-time training and capacity management that focuses on enhancing the building, arrange for multiple opportunities for efficiency of resource flows in an urban area local professionals to become comfortable with Coordinated spatial development that integrates the one-system approach, and make the best use urban forms with urban flows, combining land of technical support so it may be truly transfor- use, urban design, urban density, and other spatial mative and valuable. attributes with infrastructure scenarios Conduct a series of integrated design workshops Integrated implementation by (1) correctly to create important opportunities for planners, sequencing investments, (2) creating a policy designers, and engineers to come together and environment that enables an integrated approach, use new methods and information: a series of (3) coordinating a full range of policy tools, short workshops can clarify goals and set targets; (4) collaborating with stakeholders to align key and the long-term planning framework can guide, policies with long-term goals, (5) targeting new design, and stimulate creative solutions. policies to reflect the differing circumstances Explore design solutions and prepare a concept involved in urbanization in new areas and in plan for review: an integrated design process improving existing urban areas should be used to generate alternative proposals on ways to design, construct, and manage the project; an intensive, multiday urban systems design charrette (see part 2) can facilitate the integrated design process; and the integrated design process should culminate in a recom- mended concept plan for implementation, including any policy reforms. Align a full set of policy tools to ensure successful implementation, in collaboration with stakeholders, to sequence and enable a one-system approach and to coordinate actions across sectors: a strategic action plan can be prepared to clarify who is responsible for what tasks and to show how policies interact. An investment framework Incorporation of life-cycle costing in all financial Use a life-cycle costing method or tool to that values sustainability decision making understand the life-cycle costs and cash flows. and resiliency Equal attention to protecting and enhancing all Develop and adopt indicators for assessing the capital assets: manufactured capital, natural four types of capital and for benchmarking capital, social capital, and human capital performance. Proactive attention to managing all kinds of risk: Forecast the impacts of plausible changes in financial risk, sudden disruptions to systems, and climate, markets, resource availability, demo- rapid socioeconomic environmental change graphics, and technology by hosting a forecast workshop. Implement a catalyst project in ways that protect and enhance capital assets and reduce vulner- abilities: the best way to learn the accounting methods is in practice in a catalyst project, and a base case scenario may be developed as a benchmark for comparing alternative approaches. Monitor feedback results, learn, and adapt to improve performance. Source: Author compilation. 40 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Notes References 1. In contrast, in July 2005, hundreds of people Gharajedaghi, Jamshid. 2006. Systems Thinking; were killed, and financial losses of about US$100 Managing Chaos and Complexity: A Platform for million were incurred in Mumbai, largely because Designing Business Architecture, 2nd ed. Burling- of the loss of natural mangrove ecosystems and ton, MA: Butterworth-Heinemann. an unplanned speculation-driven construction Revi, Aromar, Sanjay Prakash, Rahul Mehrotra, frenzy in the northern suburbs. The new invest- G. K. Bhat, Kapil Gupta, and Rahul Gore. 2006. ments required in drainage to compensate for bad “Goa 2100: The Transition to a Sustainable planning will be exorbitant. Much of this cost RUrban Design.” Environment and Urbanization might have been avoided. 18 (1): 51–65. 2. The Eco2 Cities Initiative will make full use Unruh, Gregory C. 2000. “Understanding Carbon of innovative financial products offered by the Lock-In.” Energy Policy 28 (12): 817–30. World Bank, such as the new Climate Investment Funds that provide clients with strong financial incentives for transformative changes in energy efficiency and clean technologies. Carbon finance will also be leveraged. THE FRAMEWORK | 41 CHAPTER 3 A City-Based Approach The first step toward a city-based approach is to appreciate and apply the philosophy at all levels, from local councils to national governments to the international community. One should recognize that local governments, working in collaboration with stakeholders, are now on the front line in dealing with some of the most pressing development challenges and that, most often, they hold the key to solutions. It is this philosophy that motivates the Eco2 initiative. The core elements and step- ping stones of a city-based approach are designed to enable local governments to lead a develop- ment process that accounts for their specific circumstances, including local ecology. The Core Elements of A development program that supports cities a City-Based Approach in their decision-making process and, more critically, in the implementation of decisions is A development program that needed to enable cities to use their powers to supports cities exercise meaningful proactive leadership more Cities have a wide range of powers that they effectively. may use to influence their development trajec- tories. In addition, many countries are now pursuing processes of fiscal and administrative After assessing 25 successful cases of sustainable urbanization in dif- decentralization. This approach has generated ferent European cities, Timothy Beatley (2000: 423) has concluded that the role of city leadership is crucial to success: additional important decision-making and man- agement responsibilities for local governments. Government in these cities is not seen as laissez-faire or caretaking Often, the impact of initiatives depends on in nature, but as an entity exercising important proactive leader- the effectiveness and creativity with which ship; it is a pacesetter, not a follower or spectator. city leaders cultivate and use these powers. THE FRAMEWORK | 43 A planning philosophy that recognizes the ban professionals with their most exciting fundamental role of local ecological assets design challenge: how to fit cities into the Local ecological assets provide all kinds of ser- landscape in ways that respect and comple- vices to cities, from sand and gravel for concrete ment our natural capital and that ensure the to renewable sources of energy, supplies of availability of ecological services for present drinking water, the assimilation of waste prod- and future generations. In theory, all the ucts, the pollination of market gardens, pleas- constructed elements that make up a city ant views, and recreational environments. The may contribute to and benefit from the health list of services for a typical city is long. These and productivity of local ecologies and natu- services are increasingly critical to the viability ral resources. of the local economy and to the health, safety, and quality of the lives of residents. Because we An action-oriented network lack a systems perspective and comprehensive The city-based approach requires an action- accounting methods, the real quantity and val- oriented network that knits together cities, ue of such assets are rarely recognized. New ac- their senior or national governments, and their counting methods should help fill this gap. So supporters at all levels. The composition of will a new philosophy of planning that assigns supporting players will vary from place to priority to these assets in reaching decisions place, but should be broad enough to include about urban form and land use. local stakeholders, academic institutions, pri- A city-based approach alters the mind-set of vate corporations, international agencies and the urban planner and civil engineer. Urban organizations, and best-practice cities. Each development moves from big-architecture in- player in the network will bring different yet dustrial engineering and environmental man- complementary strengths. Some will bring agement (coping with externalities) to the strong technical expertise, while others might stewardship of landscapes and the integration bring financing or educational programs. It is of social and ecological values into land use this mix of players and resources that makes a planning and infrastructure design and man- sustainable transformation possible. However, agement. This is a change from the traditional the agenda may become confusing and prob- city-centric view whereby natural systems are lematic unless the players in the network share valued only as economic inputs or amenities an understanding of their respective roles. In a and wherein the rural and natural fringe of city-based approach, the role for all players is lands surrounding a city is most often ignored primarily to support the city in a bottom-up or treated as an urban preserve for future ex- process. Why do we look to cities to lead? Be- pansion. cause the local level is often where the greatest The Eco2 approach to planning begins opportunity exists for truly creative solutions with understanding the opportunities and and for maximizing the benefits of an invest- constraints of local ecologies. How do we fit ment across many sectors (see box 1.1). Instead into the topography of the area so that water of promoting a one-size-fits-all solution, the may be provided by gravity? How do we pro- network provides the city with enabling poli- tect the water recharge areas and the wet- cies, information flows, targets and guidelines, lands so that water capacity and quality are and the freedom to create and adapt. Local sustained? How do we distribute populations self-reliance is explored before investigating so that local renewable energy—windy sites, possible solutions at higher levels. When an forests, solar access—is sufficient to meet our action-oriented network is aligned in support basic needs? These types of questions are the of a city, it is often surprising just how much place to start and may ultimately provide ur- can be achieved locally. 44 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 1.1 The City-Based Approach Is Bottom-Up In the Eco2 approach, bottom-up actions are those that begin at the the next level. As we move from the local or city scale towards most local level: the city or its particular neighborhoods and build- regional, national and international scales, the need for design ings. Instead of investing in, for example, a remote power station or and investment is progressively reduced because we are tapping equipping a regional water utility with oversized pipelines, it is better into local creativity and resources. This bottom-up process is to first explore bottom-up solutions, such as, for this example, a roof- possible only if supported from the top down, especially from top rain-water catchment system and a solar water heater. If the most regional or national utilities, senior governments, and the interna- local solutions are insufficient, move up one level and consider re- tional community. claiming water at the block or neighborhood, or a district heating Top-down support comes in many forms. Most important are system. Only when the most localized solutions are impractical, un- enabling policies: those policies that provide cities with the economic, or undependable should the network start to focus on authority, skills, knowledge, and financial resources to implement local solutions. This might take the form of a national group help- ing successful cities share their experience and lessons learned— what worked and what didn’t—with other cities. Or a regional utility might agree to help set up, finance, or operate a local utility for district energy. Top-down support can also consist of clear targets and guidelines that help cities synchronize their designs with, for example, the regional economic development strategy or an international strategy for climate change mitigation. Finally, top-down support can include physical infrastructure systems that are flexible enough to allow each location to share with others its surpluses of water, energy, materials, and other services. In an action-oriented network, the top-down solutions may be diverse, but they are always city-based. They increase the capaci- ty of cities to solve their own problems by providing them with a coordinated and complementary package of policies, targets, financial mechanisms, guidelines, knowledge, and flexible infra- Source: Author elaboration (Sebastian Moffat). structure systems. A city-based decision support system gest lasting, most valuable, and most complex The Eco2 approach requires that cities enhance artifact created by humanity. Even under the their technical and administrative capacity, best of circumstances, urban planning is a particularly with respect to leading collabora- complex task, and the challenge increases if tive processes and exploring integrated design there is an attempt to implement integrated solutions. Capacity building means adopting solutions, which may add to the complexity. methods and tools that help simplify other- Of course, the task becomes that much more wise complex decisions. This is the role of a challenging in developing countries if resourc- city-based decision support system (DSS). es are limited and if urbanization seems to be The city-based DSS is an evolving set of happening too quickly. Other challenges in methods and tools designed primarily to developing countries include the lack of expe- help cities take leadership and make the rience with computer-based planning tools best choices. Each city may develop its own and the inadequate performance of existing DSS. infrastructure. For all these reasons, a city- Coping with complexity is one of the great- based DSS is an essential element in each city’s est challenges in Eco2. Cities represent the lon- sustainability pathway. THE FRAMEWORK | 45 One of the most difficult tasks faced by broad support within the city, the program someone trying to apply an integrated approach should be introduced as a return to ap- to infrastructure systems is the dynamic rela- proaches that have worked in the past and tionship that exists between physical flows and as a reaffirmation of traditional values and spatial form. Physical flows tend to be addressed institutions. The history of most cities is through modeling and calculation, and these replete with stories that may be used for typically involve individuals with engineering this purpose. and technical backgrounds. Spatial issues are • Talking about trigger issues: Identify the usually addressed using mapping techniques, current political issues within the commu- and these involve individuals with a planning nity that are most likely to be addressed or design background. Integrated design solu- through an Eco2 approach. All politicians tions incorporate spatial and physical flows want to resolve such issues, and media per- and an understanding of interrelationships. sonnel want to report on them, not on a The city-based DSS can help create a transdis- program or philosophy. These are the trig- ciplinary platform for the purpose of involving ger issues that will build support for the all these people and many others. Physical and Eco2 approach. spatial effects are communicated using graph- ics tools, data sharing, and terms and images • Learning to lever influence, stand firm, and that may be easily understood in a multidisci- say no: The levers of influence and control plinary group. (These and other aspects of the vary considerably from one location to an- Eco2 city-based DSS are described in more other, and this obviously affects the poten- detail in part 2.) tial for an Eco2 approach. For example, in some countries, national governments con- trol the financing for urban infrastructure; Stepping Stones for in other countries, the investment by cities in local renewable energy systems is pro- a City-Based Approach hibited by law. Cities that lack control over financing or that lack the authority to de- Review and adapt the Eco2 Cities Initiative velop new policy obviously face a greater The management of change is most successful challenge. However, the biggest difficulty if the new ideas are clothed in familiar patterns often revolves around using levers that in- and reflect a sensitivity to local concerns and fluence decisions, including zoning, devel- capabilities. An assessment of local strengths opment approvals, hook-up requirements and weaknesses helps tailor the Eco2 initiative for infrastructure, and so on. An assess- to local conditions and experiences. This may ment of local strengths should clarify the involve a number of different ways of custom- full extent of influence and power available izing Eco2: to local government. Almost always, cities • Traveling back to the future: Begin by re- have more authority than they realize, and viewing the history of the city and region, the real challenge is learning to say no to focusing on examples of cases in which city the short-term vested interests that drive leadership has achieved positive outcomes so much land development. or in which a more well integrated ap- proach to design or a process of collabora- Identify local champions tion has already helped generate multiple The successful introduction of Eco2 principles benefits. Use these historical examples to usually requires a strong champion who can explain the strengths of Eco2. To obtain help motivate the many groups that need to be 46 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES involved, sustain the commitment over time, ers and are able to bring together regional and provide confidence and leadership. Local stakeholders and promote collaborative deci- champions can put forward key ideas in ways sion making and integrated design. If a local that are acceptable to various stakeholders and council is fully engaged, others join in. It is thus thereby broker solutions that are widely ac- critical that support be forthcoming from the cepted. Local champions may also attract other council and individual council members with influential individuals by virtue of their repu- special interests in development issues. The tation and influence. council needs to be engaged in the Eco2 initia- The champion may be drawn from any tive from the start. place; everyone has the potential to take lead- With involvement of a council, it helps if the ership. However, the task is easier if the cham- city’s own Eco2 pathway is presented as a means pion is someone possessing recognized author- to address the issues of greatest concern to coun- ity or influence, such as a well-liked retired cil members. This method is not usually a prob- statesperson, the city mayor, the chief adminis- lem. The integrated approach adds strength to trator, or the chair of a development commit- any specific issue by providing multiple benefits tee. Sometimes, leadership may emerge from and expanding the base of support for positive an advisory group of senior statespersons or change. For example, affordable housing may be elders who are widely respected and support designed to include a project to treat wastewater the Eco2 concept. for the neighborhood or to increase the space Wherever the champion is located, a sup- available for small shops and businesses. The port group of committed and knowledgeable multipurpose nature of catalyst projects and the individuals is also necessary. All champions de- more thorough analysis they represent of the pend on a support groups or change agents to impacts on the whole economy and ecology develop networks and the knowledge base. In make the task of brokering them easier. an Eco2 city, support may arise from a small Obtaining an informed commitment from group of hard-working staff members or an ad the council and sustaining this commitment hoc group of experts and community activists. may be difficult and time consuming. It is espe- Ideally, the support group should be capable of cially important to emphasize the long-term providing its champion with both administrative and collaborative elements and to use these and technical support. In some cases, a national features as a means to dissociate the agenda body may be part of the support group. For ex- from any one political party or power group. ample, the support provided by national gov- ernments may include an office for supplying Work closely with the national cities with technical and financial assistance. government National governments can play a number of Obtain a commitment from complementary roles in the Eco2 Cities Initia- the city council tive. They can function as important centers of Much of the land in a city and a majority of the expertise on and networking for best practices infrastructure may be owned by private sector in urban design and planning. National govern- groups or by the senior levels of government. ments can share best practices across cities and Nonetheless, democratically elected local develop new policies in support of a city-based councils have a legitimate role in any effort to approach. They can choose to work with cities undertake land use planning, especially in on a locally specific planning framework (for making strategic choices that may affect the example, a regional growth management strat- long-term health of the community. These egy) and contribute expertise on a project-by- councils are often considered appropriate lead- project basis. THE FRAMEWORK | 47 Figure 1.4 A Possible Government Role: Administering a National Eco2 Fund to Support Participating Cities Source: Author elaboration. Note: IFC = International Finance Corporation; TA = technical assistance; ESCO = energy service company. Although the limited resources available to SKr 27.3 billion (almost €3.0 billion), of which national government departments may con- SKr 21 billion (about €2.3 billion) represented strain their ability to participate directly with investments directly related to sustainability cities on new initiatives, these departments and the environment. It has been estimated should still seek ways to participate to some that 20,000 full-time short-term or permanent degree in any regional-scale collaborative jobs were created through this process. (For working groups. more details on this program, refer to part 3.) Another interesting and highly influential Figure 1.4 illustrates one possible model for role for national governments involves estab- a National Eco2 Fund Program. The national lishing a national Eco2 Fund Program, which government would adapt the Eco2 initiative to may serve as a conduit for financing programs local circumstances, working in partnership and disseminating knowledge on global best with the World Bank, other international agen- practices. Canada and Sweden have used simi- cies, development organizations, and the pri- lar mechanisms to support cities. In Sweden, a vate sector. It would allocate resources among local investment program, which lasted from cities and administer funds. 1998 to 2002, allocated SKr 6.2 billion (€671 Whatever the involvement of national gov- million) to 211 local investment programs in 161 ernment in the program, it is important for lo- municipalities, involving 1,814 projects (Swed- cal governments to adapt their Eco2 pathways ish Environmental Protection Agency 2004). to the priorities currently established at the na- From municipalities, businesses, and other or- tional level. This means finding points of com- ganizations, this national investment leveraged monality and adopting terms and language 48 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES similar to the terms and language used by the ed by tool developers and may be accompanied national government. In this way, the national by useful handbooks, guides, and tutorials. government automatically becomes an ally and As cities engage in outlining a process for a potential partner. capacity building, it is important to recognize that the Eco2 initiative represents a significant Engage the international community, departure from standard urban planning, devel- best practice cities, and the World Bank in opment, and management. The examples of the Eco2 Cities Initiative integrated infrastructure cited in chapter 1 are Engaging the World Bank and other partners not yet commonplace. The large majority of directly in the Eco2 pathway is an option for growing cities, including those located in the every city. The Eco2 initiative can offer cities a developed world, are still unable or unwilling to variety of literature, including guidelines and contain urban sprawl, optimize land use and technical reports, to support every stage of the infrastructure, adopt life-cycle costing, or apply Eco2 pathway. On a case-by-case basis, the many of the alternative designs and policies World Bank, in concert with national govern- used in best practice cities. For these reasons, an ments and global development partners, may Eco2 pathway must incorporate a carefully be in a position to assist in financing Eco2 inte- planned process to manage change and pay spe- grated solutions. For example, the World Bank cial attention to adopting new ideas for leader- can help cities integrate and consolidate a vari- ship, visioning, collaboration, and analysis. ety of financial mechanisms given that Eco2 projects will tend to need different types of Develop Eco2 fluency financing at each stage and may qualify for Another challenge associated with any change multiple types of funding. The World Bank’s in standard practice is the task of familiarizing various financial instruments are examined in the city leadership group with the key concepts chapter 7 (part 1) and in part 3. and helping officials to understand what is tru- Other global development partners may ly different about the new approach and why it also be willing to provide support to cities in may be especially beneficial. Individuals need cases where special expertise is needed and quiet time to absorb new ideas. The Eco2 Cities resources can be found to cover costs. Best Initiative provides resources, including this practice cities, for example, are often glad to book, that can help introduce key concepts and share information and may provide additional terms. Case studies are an excellent place to assistance and support to cities directly or start. Talking with best practice cities or view- through a joint capacity-building initiative ing video testimonials from other experienced with the World Bank. decision makers may also be helpful in provid- ing leaders with the confidence to adopt and Outline a process for building capacity promote a new approach. Capacity building involves the familiar process Developing fluency with the concepts might of professional development and demonstra- require special sessions for local politicians tion projects. The DSS, described in this chapter and executives that allow these officials to ex- and in part 2, should be a key element in any plore new concepts and practice defending capacity-building plans. The city-based DSS new approaches. Within the Eco2 initiative, for includes methods and tools without which it is example, the concept of collaboration involves almost impossible to adopt an integrated ap- consensus decision making at different tiers proach to design and policy. Most methods and and a formal commitment by stakeholders to tools within the city-based DSS are well support- attend regular meetings and align their policies THE FRAMEWORK | 49 in cases where consensus exists. These distinc- ency campaign is aimed at helping decision tions need to be made clear and to be accepted makers become comfortable in using a new because they expand on the traditional view of language for design and investment. best practice in governance. Fluency is also important in realizing the concepts of ecological design. The looping and References cascading of resource flows within a city may Beatley, Timothy. 2000. Green Urbanism: Learning be explained using graphical case studies. It from European Cities. Washington, DC: Island may be helpful to gather key decision makers Press. together for several hours in a comfortable en- Swedish Environmental Protection Agency. 2004. “Local Investment Programmes: The Way vironment to discuss the case studies and the to a Sustainable Society.” http://www. key lessons learned or even to participate in naturvardsverket.se/Documents/ mock workshops and design exercises. The flu- publikationer/91-620-8174-8.pdf. 50 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 4 An Expanded Platform for Collaborative Design and Decision Making The principle of the expanded platform speaks to the importance of adopting a design and decision- making process that is more well integrated, adaptable, and lasting. If we want to improve eco- nomic and ecological performance through integrated, fine-scaled, flexible, and long-lasting solu- tions, we must also pursue shifts in the institutional arrangements that enable design and decision making. In many ways, the constructed environment is a mirror of the way we think and relate. The solution is twofold: (1) engage stakeholders at all scales in a collaborative process as part of every major project, and (2) develop an overarching planning framework for sustainability and re- siliency that includes goals, targets, and strategies. Each of these elements is discussed in this chap- ter. The elements are mutually supportive. The collaboration at all scales generates the skills, good- will, and creative interchange needed to adopt new business models. The shared planning framework provides the context for integrated project design and also aligns everyone’s plans and policies with a common set of community goals. Collaboration is also a new form of governance. By engaging stakeholders at all scales, the city creates a planning forum that is more appropriate to mixed economies in which private sector groups often control a majority of the infrastructure systems. Because the process is driven by long- term goals and strategies, it can help cities compensate for the impacts of frequent election cycles, which tend to focus attention on short-term agendas and crisis issues. The single greatest difficulty in adopting collaborative arrangements is the lack of any institu- tional champion to lead and guide the process. Almost by definition, no department, group, or gov- ernment has the mandate, funds, or independence to undertake such a broad, cross-cutting process. Without a sponsor or host, the process never gets started. This is one reason so few collaborative models exist at the city scale. It is also a key reason the Eco2 Cities Initiative proposes that cities THE FRAMEWORK | 51 assume leadership in creating a platform for ongoing collaboration. Methods and tools to help cities organize an expanded platform for collaboration and to help cities use this platform to develop effective planning frameworks, including regional growth strategies, are included in the city-based decision support system (part 2). The Core Elements of a may be warranted. For example, the city might Platform for Collaboration reduce transportation costs for employees by means of ride sharing, bicycle storage, a new A triple-tier platform parking policy, the purchase of efficient vehicles, The city can lead a collaborative process on at tele-work, and so on. Such a project might re- least three levels or tiers (see figure 1.5). Each quire changes in the facilities in buildings and tier affects the others, and in an ideal world, employee benefits, changes that may only be every city should lead a collaborative working possible through a collaborative process involv- group at every tier. In practice, the process may ing many city departments. Other internal ini- be incremental or periodic. However, it is tiatives might include improving the efficiency still important to differentiate the options. The of building operations, procurement processes, tiers reflect the varying levels of control and waste management systems, and energy use. influence. Whatever the program or project, this inner- tier collaboration provides the city with an Inner tier: The house in order immediate opportunity to learn how to lead an (corporate operations) effective process and demonstrate the benefits The first and most fundamental tier is the col- of the process. The city may use the collabora- laboration that may occur within and among tive process as a model for all efficient and sus- the departments of the city. At this innermost tainable corporate operations. In almost every tier, the city has a great measure of control. sector worldwide, the leaders in sustainability Here, the city government may address how not only provide sustainable products and ser- well it functions as a corporation and how well vices, but also take pride in corporate perfor- it works as a team to put its house in order. mance (for example, their green headquarter Various departments may routinely collabo- offices). The same logic applies to cities. There rate to make decisions that are more well inte- is no excuse for failing to collaborate internally grated and more effective. Cross-cutting goals because the city may initiate the process and targets may be adopted and incorporated unilaterally. The benefits extend well beyond into the strategic plan. A reporting and monitor- internal operations. It is always easier for cities ing process may be implemented that informs to lead a collaboration process externally with the wider community of how well the city is stakeholders and partners if the city has already looking after its various assets, including em- succeeded internally. ployees, equipment, capital, publically owned buildings, and so on. Special internal programs Middle tier: The city as a provider of services The middle tier of the collaborative platform The future seems to lead quite clearly to a consensus-led approach may be focused on municipal services—the var- where everything is discussed and the participation of all interested ious public services delivered by city govern- groups spans all phases of the development plan process. ment to residents and businesses within city Source: Lahti (2006). boundaries. Although the services and associ- ated investments may be largely or completely 52 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES within the control of the city, they nonetheless affect many other stakeholders at all levels. The Danger of Predict-and-Provide Models Collaboration at this tier may assist in policy In the middle of the 20th century, “a new ‘scientific’ and professional development in many areas. For example, the endeavor was born through the transport planning and traffic engi- choice of a transit system may be a city respon- neering disciplines. The basic philosophy of the [urban transport plan- sibility, but it has major long-term impacts on ning] process was to plan for infrastructure supply to meet projected land values and development potential, the traffic growth: a ‘predict and provide’ approach. This approach be- competitiveness of local businesses, local job came characterized by self-fulfilling prophecies of spiraling traffic creation, street safety and livability, and the de- growth, congestion, and road building. velopment of neighborhoods. Ideally, a local This method of transport planning has proven damaging to cities transit system needs to be integrated with land around the world. Freeways have been punched through neighborhoods, use planning, parking policies, energy supply demolishing large sections of urban fabric, severing communities, and systems, street profiles, neighborhood planning, destroying natural environments and food-producing areas. Roads have been built and widened to accommodate more traffic, reduce regional transportation connections, and much congestion, save fuel, and reduce emissions, despite evidence that more. Without a well-structured collaborative this approach fails. Public transport and particularly non-motorized process, it is difficult for any city to understand modes have been big losers in a planning process optimized for the the full implications of alternative policies. automobile. Moreover, the impacts of new investments may Source: Kenworthy (2006: 81). be uneven, and it may become necessary to man- age the political agenda. Rather than debates and autocratic predict-and-provide models, a meaningful dialogue is required on the best long-term strategies. All complex system designs benefit from a process that encourages creative solutions and allows for consensus decision making by key stakeholders. Collaboration is necessarily more complex in the middle tier than in the inner tier. A larger number of groups must commit to the process and share information with other stakehold- ers, such as businesses and households, and also with their respective constituencies. Larg- er financial investments may be required to launch citywide programs and implement cap- ital projects, and this may require collaboration with the financial community. Outer tier: The urban region The outer tier of collaboration focuses on the urban region. In a metropolitan area, this may mean focusing on the city composed of cities. In almost all locations, it means expanding be- yond the strict boundaries of the municipality Figure 1.5 The City’s Collaborative Working Group at Three Tiers: Corporate, to include adjacent towns, cities, rural lands, Municipal, and Regional Source: Author elaboration (Sebastian Moffatt). and natural areas that are part of the economic Note: Moving from the inner tier to the outer tier increases the number of stakeholders and the region and the bioregion. This scale is the most complexity and scope of the potential benefits. THE FRAMEWORK | 53 challenging for cities, but potentially the most base or access to development funding. The fo- rewarding. At the outer tier, the city is merely cus of collaboration needs to be long term to one player among many. It is not immediately find common purposes. Absent a collaborative clear why or how the city becomes a leader. It is process, the regional stakeholders will almost also difficult to find (except in the case of island certainly be working at cross-purposes. Col- states) any one definition of boundaries for a laboration provides an unusual and important region because the ideal boundaries will change opportunity for such groups to meet, develop with each issue. The urban region is always a personal relationships, agree on long-term di- fuzzy concept. However, many examples now rections, and discuss current plans. For exam- exist of cities that have risen to the challenge ple, electricity companies might meet with and, in so doing, greatly enhanced the capacity natural gas companies and begin a conversa- of their communities to articulate and achieve tion about the best long-term uses for scarce economic and ecological goals. To a large energy resources within the city. The owners extent, the sustainability of a city depends on of buildings might likewise discuss with city the city’s capacity to provide leadership and departments the appropriate level of invest- collaborate at the scale of the urban region in ment to be made to upgrade existing building which it is immersed. stock for resource efficiency. These are crucial Stakeholders at the outer tier may resist issues for Eco2 cities, and they can be resolved attempts to develop a formal platform for col- only through a continuous, well-managed dia- laboration. For an electrical utility, for example, logue and collaborative decision making. the service territory may form a logical plan- The outer tier collaborative platform re- ning unit, not a particular urban region. For quires a strong structure. It may include senior adjacent towns and cities, the habitual mode statespersons at the core; team leaders selected may be competition for land rents and a tax from private firms, knowledge institutions, and public bodies; and experts and champions from a variety of sectors. The structure may build on existing partnerships and committees if these The Emergence of the Regional City as a Crucial Scale for exist and if they are consistent with the collab- Long-Term Planning orative process. A collaborative working group Peter Calthorpe and William B. Fulton (2001) describe the resurgence of does not need to be time limited. Ad hoc sub- a regional approach to city building. They argue that the economic, groups may be formed to meet regularly on social, and ecological patterns of cities now seem to be more well specific issues as appropriate. (Part 2 provides understood and planned at the regional scale. As cities mature, the traditional combination of urban sprawl and satellite or edge cities is transformed into a structure that is more accurately described as polycen- tric, that is, more like a cluster of grapes than a single fruit with a dense “Coordination and collaboration between core. The polycentric forms are complex; instead of the focus on a single national, provincial, and local authorities can center, we see layers of networks—economic, open space, resources, achieve harmonious regional and urban devel- and connections—with many more centers or nodes nested within opment, provided they share a common vision other nodes. The challenge is to fit these complex forms into the land- and demonstrate sufficient political will. . . . local scape in ways that suit the ecology of the region and its resource base authorities, working with regional authorities, and also to limit and contain the nodes so they are at a human scale need to develop clear visions and strategies and walkable. “The regional city,” write Calthorpe and Fulton (2001: 10), that articulate short- and medium-term respons- “must be viewed as a cohesive unit—economically, ecologically, and es to enhance economic and social conditions in socially—made up of coherent neighborhoods and communities, all of their cities.” which play a vital role in creating the metropolitan region as a whole.” Source: UN-Habitat (2008: xvi). 54 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES more detail on the potential makeup and ac- A shared long-term planning framework tivities of collaborative working groups.) for the urban region From 2003 to 2009, the urban region of A second step in the creation of an expanded Auckland, New Zealand, undertook a collabor- platform for collaboration is the adoption of a ative process, including the preparation of a shared long-term planning framework. The shared long-term (100-year) planning frame- framework ensures that all public decisions, in- work. The process of developing a framework cluding capital investments, are supported by a was highly inclusive, with many conversations logical, transparent rationale. An Eco2 frame- feeding into the framework and into the emerg- work needs to combine two perspectives on the ing responses. The regional growth strategy, future: achieving goals for sustainability and for example, facilitated regionwide discussions managing risk for greater resiliency. Box 1.2 and a reference group of council members to summarizes how these two perspectives be- provide direction and support. Similarly, local come integrated into a strategic plan for the re- authorities and the central government formed gion. The framework needs to be developed a working group to ensure representative influ- through a collaborative process if it is to be in- ence, enable shared responsibility for funding fluential across the region. Once in place, the the Auckland Sustainability Framework, and framework becomes a tool that supports collab- ensure that staff would be actively involved. orative efforts at all levels. The process was neither linear nor predictable, Not everyone will immediately see the point and its messiness may be seen as an inherent of developing a broad framework that tran- quality of the positive outcome. A key collab- scends the urgent issues of the day and that orative element was the relationship between transcends the authority of any one group. To central and local governments aligned with introduce the concept, we explore how frame- common governance elements, including a works function. joint commitment to developing a shared long- A framework is a structure for connecting term view of a sustainable Auckland. (Part 3 visions to actions, a kind of mental map or way- includes a full case study of the Auckland finding system that provides us with a sense of collaborative process and the sustainability how elements fit together and relate to each framework the city created.) other. All of us use some kind of framework to help us make decisions. Most frameworks rely A new approach to governance and, perhaps, on a hierarchical structure to reduce complex- a new way of living together ity, moving from the big ideas or categories to Collaboration is a process that may evolve from the details and specifics. The Aalborg Charter, a simple working group for interdepartmental which has been adopted by 2,500 European planning to a new forum for governance for the communities, is an example of a comprehen- urban region as a whole and to a new culture of sive framework for long-term planning by cit- cooperation and flexible teamwork that is ad- ies. The outline of planning steps in the Aalborg opted as a matter of course. Whatever the scale Charter helps each city address the key steps in of collaboration, the capacity to lead a collab- the planning process, from problem identifica- orative process can greatly enhance the poten- tion and visioning to implementation and mon- tial for integrated design and policy and for sus- itoring (figure 1.6). The framework also pro- tainable development. The first step toward vides a common language and a standard success is to understand how a city may orga- sequence for planning. nize and support a collaborative process. (More A shared framework is useful for all aspects detail is provided in the city-based decision of planning and design. Local governments support system, part 2.) may use the framework to organize and align THE FRAMEWORK | 55 BOX 1.2 Combining Forecasts and Backcasts to Achieve Resiliency and Sustainability FORECASTS: Projecting the impacts of forces and planning for mitigation and adaptation Forecasts (or narratives) explore the likely impacts on infrastructure of changes in population, climate, economics, and tech- nology. The impacts may be presented visu- ally using chains of cause and effect that help tell stories about the future of com- plex systems. Forecasting with diagrams can sensitize all design teams and decision mak- ers about the types of futures that may be encountered by the city and its systems. The forecasts may also be used as a mind- map or decision tree to help groups to brainstorm about the most appropriate in- terventions to mitigate threats or adapt to change. A primer for cities on climate change that has been published by the World Bank provides many examples of the ways climate change might affect the various parts of a city and how the city community might re- spond (see Prasad and others 2009). Similar kinds of exercises are needed to address other external forces such as technological and population changes. Source: Author elaboration (Sebastian Moffatt). their strategic plans, master plans, concept the myriad city departments and stakeholders plans, transportation plans, and economic de- who might be involved in project planning and velopment plans. Integrated design teams may implementation. use the framework to direct each stage of their As cities undertake a more well integrated designs and to remind designers about the full approach to system design and develop an ex- scope of community goals and priorities. At ev- tended platform for collaboration, the shared ery stage, a shared framework helps us com- framework may help to solve the problems in municate and work together in a coordinated organizing and communicating complexities. fashion. Because everyone shares the frame- It puts first things first and cross-links every work, it is clear how each activity fits into the concept and action into an easily understood whole, and there is less need to micromanage argument. This creates an easy-to-follow men- 56 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BACKCASTS: Managing the transition to end-state goals Backcasts involve making changes in those areas where a city has real influence and control. Backcast refers to the process of working backward from a goal set for a point in the future to the current situation and creating a critical pathway for managing change. Interim targets may help to set the pace of change to fit the ambitions and priorities of the city. Moving too rapidly may be as destructive as moving too slowly. The biggest problem in backcasting occurs if trends are taking the city in the wrong direction altogether. The use of automobiles for commuting is increasing in most cities, for example, but is not sustainable. Such a trend must be counteracted through interventions that accelerate and leverage the preferred alternatives. INTEGRATION: Creating a proactive strategy that Source: Author elaboration (Sebastian Moffatt). addresses sustainability and resiliency By responding to forces that cannot be controlled and by managing what can be controlled, one may create the potential for managing the transition to a more re- silient and sustainable city. A city must define a solution space that avoids moving too rapidly or too slowly and that provides the room required to recover from the inevitable shocks and surprises that will be encountered over the next few decades. If the trend is in the wrong direction, a focused policy intervention or a catalyst project may help redirect it. By mitigating threats and adapting to changes, one reduces the number of sur- prises or dislocations. In this way, one may sustain a managed transition to end-state goals. Source: Author elaboration (Sebastian Moffatt). tal map for establishing and justifying specific recommendations. Everyone involved in the “Automobiles are often conveniently tagged as the villains respon- planning is able to follow the transparent, logi- sible for the ills of cities and the disappointments and futilities of cal connections between, on the one hand, in- city planning. But the destructive effects of automobiles are much tended goals and overall vision, and, on the less a cause than a symptom of our incompetence at city building.” other, detailed actions and results. This allows Source: Jacobs (1961: 16). all agencies and stakeholders to understand how their work fits within and contributes to the long-term vision and goals. Ideally, the framework serves to align the various initia- tives a city may undertake. THE FRAMEWORK | 57 of towns and cities that make up the existing urban area, but also to the combination of rural and natu- ral areas immediately surrounding the city. A lot of city planning is city cen- tric and treats areas outside the city limits as simply the responsibility of another ju- risdiction. However, without regional planning, it is impossible to address long- term goals and to benefit from an ecologi- cal and economic perspective, the Eco2 approach. Part of the reason a regional context is important is the unregulated and un- planned urban expansion that is occur- ring worldwide, in some cases even where populations are shrinking. This threatens the long-term health and prosperity of cit- ies and countries. Increasingly, cities de- pend on the rural and natural areas in Figure 1.6. Aalborg Charter which they are immersed. These areas Source: Author compilation based on EU (1994). provide ecological functions, capturing and cleaning water; cooling, slowing, and filtering Over time, the collaboration around goals air; growing fresh produce for food security and strategies may begin to coalesce around a and public health; and providing energy re- common frame of reference throughout a city. sources that are renewable and secure. A This framework is a triggering factor leading to shared regional strategy becomes an umbrella innovation and compliance across all sectors. plan that defines how to direct city growth in Such positive spillover effects are the ideal re- ways that protect and enhance many ecologi- sult, creating a powerful local culture of sustain- cal functions. This type of umbrella plan is ability. In Curitiba, for instance, the overarching sometimes called a regional growth strategy. vision of sustainability inspired citizens volun- The urban region is also a vital scale for tarily to plant 1.5 million trees along the streets economic planning. Almost all economic (ICLEI 2002). patterns are formed at the regional scale, and A shared long-term planning framework is efforts to intervene and control economic devel- most effectively focused at the urban region as opment must also be executed at this critical a whole, even if this area exceeds the jurisdic- scale. tional boundaries of the city. In this context, Defining the boundaries of an urban region urban region refers not only to the city or group may be difficult. In fact, the actual dimensions “In many cases, the decline—and possible renewal—of cities cannot be divorced from their wider regional contexts. Declining cities are almost always concentrated in declining regions.” Source: UN-Habitat (2008: 44). 58 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES of a region may be kept deliberately flexible so everyone that the integrated approach means that borders may adapt to reflect the concerns it must temporarily remove its regulator hat of stakeholders. For example, the regional and join with others in the search for integrat- boundaries used for growth strategies might ed solutions. need to include watershed planning, commuter sheds, air sheds, utility service territories, mar- Prepare a mandate, and budget for ket gardens, local energy generation, ecological a secretariat systems, and economic development planning, A secretariat needs to support the collabora- each of which requires a different delineation. tive committee, which means that it needs to Regardless of the label and scope, a regional be distinct from other city departments, even if strategic plan must help everyone to understand it shares city offices to reduce costs. The size of how the city will fit into its ecological surround- the secretariat may be adjusted to fit the pace ings and how the pace and direction of growth and scope of collaborative processes. If only will be consistent with near-term targets and one person is involved, this person must have long-term goals. The city-based decision sup- skills in communications (facilitation, writing), port system in part 2 includes information on research, and data collection. Finding a budget long-term planning frameworks and the cre- for a secretariat may be challenging because ation of a regional growth strategy. collaborative committees are not normally budget items. One option is to include collabo- ration under the costs of strategic planning. Stepping Stones for an Expanded Regardless of the funding source, the secretar- Platform for Collaboration iat needs at least three years of secure budget to prove its worth. Initiate a process for collaborative decision making Prepare a long-term planning framework The process of creating collaborative commit- for sustainability and resiliency tees begins with an invitation to key stakehold- Part 2 provides the detailed methods and tools ers to discuss the collaborative process and to that may assist in preparing a framework. If consider the benefits of participating in an time or money is limited, a rapid process is pos- Eco2 pathway. It is usually necessary for the sible, using predefined goals and strategies from Eco2 champion to meet individually with key appropriate best practice cities. In this context, stakeholders and establish a common basis of the case study reports are helpful in providing good will and interest prior to a group meeting. examples of goals and strategies. Software tools Each stakeholder needs to see the benefits of are available on the Web that may help in devel- participation from the stakeholder’s own posi- oping a framework that connects visions and tion. For example, land developers have a chance goals to specific strategies and projects; the to affect the regulations under which they must tools also allow the public and other stakehold- work and, ultimately, to improve business by ers to explore the content of the framework. influencing policy. Utilities and landowners The framework requires a locally specific set of can become more well informed about the external forces (for example, climate change in opportunities for new business and improved the surrounding location or the demographics customer relations. For second- and third-tier of each city). An extensive collaborative effort committees, it is especially important to clarify may be required to complete the framework, the role of the city as initiator and secretariat, supported by tools such as visioning workshops but not as a group in control of decisions. Some- and foresight workshops (part 2). times, it is necessary for the city to explain to THE FRAMEWORK | 59 Select a catalyst project References A catalyst project is a key part of managing change. Catalyst projects should be projects Calthorpe, Peter, and William B. Fulton. 2001. The Regional City: Planning for the End of Sprawl. that offer substantial benefits to the most influ- Washington, DC: Island Press. ential stakeholders and that may be completed EU (European Union). 1994. “Charter of European relatively quickly at low risk to the city. With Cities & Towns Towards Sustainability.” luck, the catalyst project will contribute to a http://ec.europa.eu/environment/urban/ rising spiral of goodwill and acceptability pdf/aalborg_charter.pdf. ICLEI (ICLEI—Local Governments for Sustainability). for the Eco2 pathway. Choose carefully; first 2002. “Curitiba: Orienting Urban Planning to impressions count for a lot. The creation of Sustainability.” Case Study 77. ICLEI, Toronto, positive expectations among participating Canada. stakeholders and the public is crucial in success- Jacobs, Jane. 1961. The Death and Life of Great ful change management. American Cities. New York: Random House. Kenworthy, Jeffrey R. 2006. “The Eco-City: Ten Key Transport and Planning Dimensions for Sustain- able City Development.” Environment and Urbanization 18 (1): 67–85. Lahti, Pekka, ed. 2006. Towards Sustainable Urban Infrastructure: Assessment, Tools and Good Practice. Helsinki: European Science Foundation. Prasad, Neeraj, Federica Ranghieri, Fatima Shah, Zoe Trohanis, Earl Kessler, and Ravi Sinha. 2009. Climate Resilient Cities: A Primer on Reducing Vulnerabilities to Disasters. Washington, DC: World Bank. UN-Habitat (United Nations Human Settlements Programme). 2008. The State of the World’s Cities 2008/2009: Harmonious Cities. London: Earthscan Publications. 60 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 5 A One-System Approach A one-system approach enables cities to plan, design, and manage the entire urban system by integrating or optimizing key subsystems. In doing this, it provides opportunities for cities to realize many benefits through synergy. As we explore the possibilities for a one-system approach, we first address the enhancement of the efficiency of resource flows in an urban area through integrated infrastructure system design and management. The approaches apply to most urban infrastructure sectors, such as transportation, energy, water, and waste management, and may be applicable within each sector and across sectors. Next, we look at the possibilities for applying a one-system approach to integrate urban form and urban flows. We consider spatial planning, land use, density, connectivity, proximity, and other at- tributes of urban form, and we examine the large extent to which overall system efficiency depends on the integration and coordination of these attributes with infrastructure systems. There is a fun- damental relationship between a city’s infrastructure systems and its urban form. Urban form and spatial development establish the location, concentration, distribution, and nature of the demand nodes for the design of infrastructure system networks. Urban form establishes the physical and economic constraints and parameters for infrastructure system designs, their capacity thresholds, and technology choices, and the economic viabilities of the various options. These have tremendous implications for resource use efficiency. At the same time, infrastructure system investments (trans- portation, water, energy, and so on) typically enable and induce particular spatial patterns on the basis of the market response to the investments. The final section of the chapter explores ways to implement projects using a more well integrated approach to implementation. This means that investments are sequenced so that the city sets the cor- rect foundation by addressing long-lasting, cross-cutting issues first. This also means creating a policy environment that enables an integrated approach, coordinating a full range of policy tools, collaborating with stakeholders to align key policies, and targeting new policies to reflect the different circum- stances involved in urbanization in new areas and the improvement of existing urban areas. THE FRAMEWORK | 61 It is critical for cities as they strive for greater ecological and economic sustainability to develop a systems perspective and apply the one-system approach. A review of this chapter reveals a more complete picture of the opportunities and the possibilities for new development paths. In addition, methods and tools introduced in part 2 may help planners, engineers, and designers visualize system dynamics; model the systemwide impacts of different design and policy options at varying scales; and, generally, think outside of the silos created by professional training, institutional structures, and historical practice. As outlined in box 1.3, this will include the use of material flow analysis and the layering of information on maps to create a transdisciplinary platform for integrated design. The Core Elements of a One-System gressive block tariffs with precisely targeted Approach subsidies (where needed for social consider- ations), are an effective mechanism to reduce Integrating flows: Infrastructure system demand. This is because tariffs that do not re- design and management flect the true economic cost may send the We first address the issue of enhancing the ef- wrong signal to consumers and lead to waste or ficiency of resource flows in an urban area the overuse of resources. It is widely recog- through integrated infrastructure system de- nized that, historically, too much has been sign and management. These approaches ap- invested too quickly in supply solutions as ply to most urban infrastructure sectors, such opposed to reducing demand through resource as transportation, energy, water, and waste efficiency standards; building retrofits; and the management, and may be applicable within replacement of lighting, fixtures, vehicles, and each sector and across sectors. appliances. In every sector, significant gains have been realized by demand-side manage- Integration of demand and supply: ment (DSM); examples are the cases of Yoko- Addressing efficiency and conservation hama, Japan, in the waste sector (a capital ex- before supply-side investments penditure of US$1.1 billion was avoided) and An integration of supply and demand must Emfuleni, in the energy and water sector (where always begin by asking why one should bother singular investments of US$1.8 million led to about new infrastructure if investments in annual savings of US$4.0 million). Not only do demand reduction and the more efficient use the net economic returns tend to be higher for of existing infrastructure are more economical DSM, but so, too, do the many indirect benefits and beneficial. The integration of supply and for a city, including improved living environ- demand is a strategic approach that needs to be ments and reduced vulnerability to future price supported by careful investment planning. For fluctuations or interruptions in resource supply. any given investment in services, an optimum While DSM may be easy to implement and balance exists between investments in system- may quickly pay dividends in some instances, wide and end use efficiency and investments in in other instances, it is difficult to implement new supply systems. In an ideal scenario, sup- because of the incentives of various stakehold- ply- and demand-side investments are consid- ers. Consider the case of housing and commer- ered on a level playing field, and money is cial buildings. On the one hand, they represent placed where the returns to society, the econo- a tremendous potential for DSM because most my, and the environment are greatest. In most buildings have not been constructed to energy utilities, proper tariff structures based on full or water efficiency standards and may quickly cost recovery principles, together with pro- generate high returns on relatively small 62 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 1.3 Combining Flows and Forms to Create a Transdisciplinary Platform Customers Streets Parcels Elevation Land Use Real World This flow diagram summarizes all the water flow through Hong Kong (China) and Source: Copyright © ESRI, used by permission, http://www. is one of the first illustrations of an urban metabolism. esri.com/. Source: Boyden, Millar, and Newcombe (1981). FLOWS: Material flow analysis and Sankey diagrams FORMS: Layering of information on maps Material flow analysis and Sankey diagrams are a method for calculat- Maps are especially useful in collaboration because they speak so ing and illustrating the flow of resources through an urban area of any well to so many. (A picture is worth a thousand words.) The layers size. Inputs and outputs are determined as resources are extracted of information make it possible immediately to interrelate the from nature; processed by infrastructure; consumed by homes and various features and qualities of the landscape and also easily to businesses; treated by infrastructure; and, finally, returned for reuse or quantify important spatial relationships. Layering is an old tech- delivered back to nature as waste. Colorful, but simple, diagrams are nique that has become more powerful as a result of computer used to educate everyone on the resource flows and the effective- technology and satellite imagery. ness of their use, all on a single page. INTEGRATING FORMS AND FLOWS: A transdisciplinary platform Because diagrams and maps may be easily under- stood and shared by a broad range of profession- als and decision makers, they help to bring stakeholders and experts together, facilitating a common understanding of integrated approaches to design and decision making. Forms and flows should be analyzed and understood for current and future scenarios. In combination, the meth- ods represent a transdisciplinary platform for understanding the spatial dynamics of a city and its physical resource flows—elements that are interdependent, but difficult to integrate because they involve such different skills and stakeholders. A platform is needed to integrate the design concepts for urban form with the corresponding resource flows. Source: Redrawn and adapted from Baccini and Oswald (1998). THE FRAMEWORK | 63 through regular audits; commissioning, pro- cess enhancement; and improved training The Demand Versus Supply Approach among the personnel who install, operate, and Urban infrastructure projects are predominately of a supply nature; manage systems. The proliferation in the num- that is, they are focused on the supply of a service rather than a reduction in the demand for a service. This may encourage the ber of energy service companies (the end prod- excessive use rather than the efficient use of services, which is coun- uct of which is energy efficiency) is evidence of ter to sustainable development; for example, building more roads the growing and still untapped potential of the encourages a greater volume of traffic. The approach to sustainable energy efficiency market. development should therefore involve reducing demand and then Often, DSM in one sector may lead to bene- providing efficient and effective supply. fits in another sector. For this reason, integrated Source: Lahti (2006). approaches across sectors are critical. For instance, the significant urban energy benefits of the water sector’s DSM led to a program launched by the Alliance to Save Energy. The investments. On the other hand, changes to program is called Watergy. The alliance has existing buildings require collaboration achieved significant benefits in developing- among decision makers, and the benefits do country cities by increasing access to clean not always accrue to those who must make water, while reducing energy costs and water the investments, thereby fracturing the incen- losses. In Fortaleza (northeast Brazil), the tive structure. For example, if owners cannot alliance worked with the local utility, the capture the benefits of energy efficiency sav- Companhia de Água e Esgoto do Ceara, to ings, they will not invest in retrofitting; rent- develop and implement measures to improve ers who have a short time horizon also have the distribution of water and the access to san- no incentive to invest in retrofitting. In addi- itation services, while reducing operating costs tion, the standards for products, including and environmental impacts. The utility invest- building codes, are often established by se- ed about US$1.1 million, including in the instal- nior government entities and are therefore lation of an automatic control system, and difficult to align with local goals and strate- saved US$2.5 million over four years. The effi- gies. For all these reasons, a well-planned ciency gains were so great that 88,000 new collaborative process is necessary if the ben- households were connected to the water efits of integrating supply and demand are to system, without the need to increase supply be captured. (Barry 2007). DSM measures may apply to all sectors and DSM can even apply to spatial systems. For may include investments in more efficient example, the demand for land may be reduced technology. Typical examples include energy through a review of regulations (including ad- retrofits of building envelopes; resource-efficient justing minimum lot sizes, increasing floor area lighting and appliances; low-flow water fix- ratios, revising zoning, and adjusting land sub- tures; waste reduction, reuse, and recycling; division parameters), layering of different land and use of bus rapid transit instead of cars on use functions on the same site, or a reduction the same roads (thereby avoiding the need to of parking spaces. (Additional analysis of the construct more roads). It may also imply a cul- management of the spatial structure of cities ture of doing more with less and living lightly may be found in part 3.) In all cases, the de- on the Earth by voluntarily limiting consump- mand-supply relationship needs to be replaced tion and waste. DSM may also be achieved by with an approach that enables and encourages improving designs at multiple levels and demand management. 64 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Peak load management: Managing the demand for services to minimize the requirements for peak capacity Energy, water, and transportation systems all tend to suffer from daily and seasonal peak loads that force utilities to use oversize systems to meet peak demand at a particular time or period. This may be significantly inefficient from an economic and resource point of view. Peak loads also force utilities to supplement supply using backup or imported resources and services that are especially costly. Spatial systems likewise suffer because of the highly Figure 1.7 The Load Curve of a District Heating System uneven demand for spaces that are dedicated Source: Author compilation (Bernd Kalkum). to uses such as parking, roads, and restaurants. Note: The system is designed for 35 units of base load instead of 100 units of peak load, thus representing significant savings. CHP = combined heat and power plant. The effort to reduce the need for greater overall system capacity through the manage- ment of daily and seasonal peak loads is known systems to reduce overcrowding or congestion as peak load management. The object of peak during rush hour. In Japan, most commuter load management is to even out the demands railway systems adopt an off-peak-hour tariff throughout the system and to distribute de- (lower tariff ) to induce passengers to take trains mand across time to avoid investment in new during off-peak hours. The Tokyo Metropoli- permanent capacity. In some cases, peak load tan Highway Authority also uses an off-peak- management may also help avoid the high cost hour tariff for highway tolls. The highway of topping up capacity if the primary system authority adjusts tariff levels across different has reached maximum output. highway routes to divert traffic from one route By delaying or avoiding costly capital invest- to another to reduce congestion. ments and costly backup strategies, peak load Peak load management may also benefit management may be extremely economical. from a more collaborative approach because It may also reduce resource consumption demand profiles are influenced by many fac- requirements and can make more optimal use tors that are sometimes difficult for cities to of existing capacity. However, recognizing the control unilaterally: land uses, time-of-day best locations for intervention at each stage of pricing structures, metering technology, con- the system requires a systems perspective. trol technology, business and school operating For instance, in Europe, heat demand varies hours, daylight savings time, and the determi- significantly during the heating season. To de- nation of the size of distribution and storage liver all district heating through a combined heat facilities at each level. Meanwhile, simple alter- and power plant would require the utility to size ations to business and school operating hours a plant in accordance with the maximum heat may have a significant impact on peak loads in load, which would mean greater investments. A transportation. strategy is therefore sometimes used whereby only the base load is supplied by the combined Cascading resource use: Matching resource heat and power plant, while the peak load is sup- quality to the requirements of each user plied by a simple boiler plant (figure 1.7). Cascading resource use is another option for Peak load management is often applied in integrating flow pathways. Cascading is public transportation systems and highway achieved by matching the quality of a resource THE FRAMEWORK | 65 to the requirements of the end user. As the looping of water resources (figure 1.9). The quality deteriorates, the resource is directed to approach successfully lowered annual water uses with lower quality requirements. In this demand in the city from 454 million tons in way, water, energy, and materials may achieve 2000 to 440 million tons in 2004 (Tortajada two or more functions in sequence. Figure 1.8 2006), while the city’s population and GDP per illustrates the transition from a once-through capita grew by 3.4 percent and 10.3 percent, flow water supply system to an integrated sys- respectively. Cascading and looping represented tem that matches quality to needs. It cascades a welcome departure from conventional supply- water flows from drinking and cooking and driven investment approaches (often based on sanitation to toilet flushing and the subsoil irri- business-as-usual scenarios) to a new resource gation of gardens. The chief benefit of cascad- management approach, including effective ing is efficiency gains (satisfying many demands demand-management control. with the same unit of supply); however, an added advantage is the capacity to direct scarce Looping resource use: Reclaiming resources to essential needs during difficult the secondary resource values times. Resources may be cascaded through Looping refers to the closed loop systems that multiple uses and then, through processing, ultimately return water and materials to their may be looped back to the original point of use. points of origin. Returnable drink containers Considered a water-scarce city-state, Singa- are an obvious example, but the same concept pore adopted an integrated water resource may apply to the much larger flows of organic management strategy that includes many inte- material and water that are carried within gration strategies, including the cascading and drinking containers. Figure 1.8 Cascading Water Use Source: Author elaboration (Sebastian Moffatt). Note: As the resource cascades through the system, its quality is matched to the needs of successive uses. 66 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES The City’s Life Support Systems The overall aims of environmental technolo- gies are to maximize the possibility that cities can meet their needs from the natural capital of their own bioregions in a renewable way and to move to closed loop infrastructure systems that recycle and reuse their own wastes, so that the absorptive capacities of natural systems are not overwhelmed with the waste loads from urban areas. (Kenworthy 2006: 76). Figure 1.9 Cascading and Looping Water in Singapore Source: Singapore Public Utilities Board, http://www.pub.gov.sg/about/ Pages/default.aspx (accessed January 2009). Figure 1.10 Looping Resources Source: Author elaboration (Sebastian Moffatt). Note: In the example on the left, a factory consumes resources and generates waste. On the right, an urban ecology has emerged, where the waste heat, water, and materials are reused by other land uses, looping within the city to lower costs and reduce the negative impacts on the environment. Looping is common in natural ecologies, Sjöstad in Stockholm. Energy, water, and waste where it is manifest in the water cycle, the are looped many times to enhance and opti- carbon cycle, and the nitrogen cycle. City infra- mize the utility derived from resources. (See structure is most successful if loops are closed. the case study on Stockholm in part 3.) This might mean recharging aquifers during Looping also provides an opportunity to in- rainy periods or converting organic waste into vest strategically in the weakest link. Once the soil supplements for local parks, gardens, and connections in the loop are understood, it is farms (figure 1.10). Looping close to home is possible to retrofit existing infrastructure especially effective because it reduces trans- based on greater knowledge of the most effec- portation costs and creates many potential tive investments in each sector. For example, benefits such as jobs close to home and local for water, wastewater, and gas distribution sys- stewardship. tems, leakage reduction in existing pipelines An example of cascading and looping across represents an effective investment for improv- infrastructure sectors is the case of Hammarby ing water and energy use efficiency. THE FRAMEWORK | 67 Distributed systems for omnidirectional buildings so that equipment may be well man- flows: Achieving greater functionality for aged and used continuously (figure 1.11). Com- nodes and networks bined heat and power plants in Europe often The integration of nodes and networks is operate at this scale and thereby provide power achieved through distributed systems. In a tra- and heating across city districts. Another exam- ditional supply-oriented approach, the number ple might be septic tanks attached to buildings, of nodes is few; a single supply facility might be which may be interconnected to a small in- the only supply node, for example, and the dis- ground wastewater treatment facility at a local tribution network may be a simple one-way park or to a high-rate composting vessel at the hierarchy from a big facility node directly to nearest recycling depot or community garden. users. A fully distributed system actually works Distributed systems make greater use of net- in both directions and enables omnidirectional working. Local networks for capturing water flows. The supply system may begin at or near or generating power may allow nearby sites to the home, office, or shop where the demand for share surpluses with others, creating a two-way services originates. Local and renewable op- micronetwork. Surplus energy (for instance) tions may be explored for on-site supply, stor- generated by a cluster of users may be stored age, or treatment; roof-mounted technology for later use or sold back to a smart grid. Local may capture and store water, for example, or networks may be nested within larger net- capture and convert sunshine. It is conceivable works. In this way, the pattern changes to a that public utilities may still own and manage system with many nodes serving clusters of technologies, but they are located on-site. If users and connected through a complex net- on-site facilities are not practical, sufficient, or work with omnidirectional flows. Distributed economical, the next choice is to examine op- systems may cover large areas of the city, but tions for the cluster, block, or neighborhood. the nodes are more numerous, and the net- Economically, it is often viable to locate a works are more adaptable. significant capacity in supply and treatment fa- The Rocky Mountain Institute’s pathbreak- cilities at the neighborhood or district level or ing and comprehensive work on the viability of at the center of small clusters of mixed use distributed energy systems catalogues over Figure 1.1 1 The Cluster Management of Waste Source: Author elaboration (Sebastian Moffatt). Note: The scenario shown on the left is the common supply model, whereby solid waste is collected from many sources by a centralized trucking system and then processed at a large, remote facility. On the right, a two-way network evolves to eliminate waste within the cluster. 68 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES 200 benefits (see Lovins and others 2002). The Multifunctionality: Serving different ends by most significant benefits relate to system mod- using common spaces and structures ularity, which contributes to a reduction of The integration of infrastructure facilities economic and financial risk by several orders across sectors is achieved through multipur- of magnitude (figure 1.12). Other potential pose elements that serve different sectors si- benefits from the integration of nodes and net- multaneously or at different times. A common works might include the reduced costs for land example is the integration of energy and water dedications and reductions in the characteris- systems. In many towns and cities, the largest tically large transmission and conversion loss- single energy account in the community is for es. For many cities, a growing proportion of pumping municipal water from wells or water utility resources are being used in unproduc- bodies. Sewage digesters also require large mo- tive generation and distribution, especially tors and energy expenses. Thus, saving water because DSM has reduced the demand for ser- automatically means saving the energy re- vices at each node. A distributed system not quired for water supply and sewage treatment. only helps to avoid these costs, but also may An integrated approach is the logical option. offload the costs of new facilities from taxpay- The integration of energy and water can ers to developers and give developers a long- involve more than simply the shared efficiency term interest in the efficiency of neighbor- gains. The water system for the Olympic Village hoods. Other benefits from more distributed in Vancouver, Canada, for example, is closely systems include the more incremental pace of integrated with the energy supply systems in investment that is shaped by demand, the more the city. As the water travels down from the effective matching of capacity to existing load, city’s mountain reservoirs, it turns a turbine and the lower vulnerability to whole-system within the pipes. The turbine creates electrici- collapses. As infrastructure facilities move close to buildings, so do the jobs, and the city be- comes more efficient and walkable. The prox- Solar Energy Systems in Rizhao, China imity of facilities also increases the potential for Rizhao, a city of about 350,000 people in northern China, is using solar almost all other types of integration (for exam- energy to provide lighting and water heating. Starting in the early 1990s ple, recycling, looping of resource flows, multi- under a municipal government retrofit program, the city required all build- purpose uses, and culturally distinct structures). ings to install solar water heaters. After 15 years of effort, 99 percent of the As demonstrated in a Worldwatch Institute households in the central district had obtained solar water heaters. Solar case study (Bai 2006) on the City of Rizhao in water heating now makes economic sense. The city has over a half-million square meters of solar water heating panels, the equivalent of about 0.5 Shandong Province, China, distributed solar megawatts produced by electric water heaters. Most traffic signals and water heating systems can be effective urban street and public park lights are powered by solar cells, reducing the city’s energy solutions, while also helping address carbon emissions and local pollution. Using a solar water heater for 15 years social equity issues. costs about US$1,934 (Y 15,000), less than the cost of running a conven- Spatial planning may also benefit from dis- tional electric heater, which equates to saving US$120 per household per tributed systems that make nodes of the popu- year in an area where per capita incomes are lower than the national aver- age. This achievement is the result of a convergence of four key factors: lation more self-reliant. This is the philosophy a regional government policy that promotes and financially supports behind smart land uses such as mixed use research; the development and deployment of solar water heating tech- walkable communities that provide easy access nologies; a new industry that takes the opportunity in stride; and city lead- to transit, services, shops, and parks, rather ership that not only has a vision, but also leads in action and brings along than forcing everyone to travel to the city cen- other stakeholders. ter or mall with the attendant costs of time, en- Source: Bai (2006). ergy, and emissions. THE FRAMEWORK | 69 The photographs in figure 1.13, from a West Coast Environmental Law study, describe the integration of a trail system and other forms of infrastructure. Many possibilities exist for such multipurpose facilities and amenities (see fig- ures 1.14–1.19). At some point, the integration of systems is most successful if it is, in fact, difficult to isolate any particular system from the others. The functional components of urban services are tightly woven into the fabric of the community at the most local scale. Integrating forms with flows: Spatial planning and urban design We now look at the possibilities for the appli- cation of a one-system approach in integrating urban form with urban flows. We consider land use, density, connectivity, proximity, green in- frastructure, and other attributes of urban form and examine how a large portion of overall sys- tem efficiency depends on integrating and co- ordinating these attributes with infrastructure systems. Figure 1.12 Distributed Systems Urban form, land use mix, density, Source: Author elaboration (Sebastian Moffatt). Note: Centralized, remote facilities with one-way networks may be transformed into distributed systems connectivity, and proximity as shown in these two extreme examples of energy systems. In the centralized example, a remote The integration of spatial planning and infra- facility services all end users in a one-way distribution network. In the distributed case, all buildings within a 5-kilometer radius are connected to a local heating and cooling plant, using low-temperature structure system design represents the most water to move heat or cooling from one location to another. Excess heat may be captured from local significant opportunity to enhance overall sys- industrial processes, sewage, or large buildings such as the hospital and then shared at low cost. Local power generation is an option through the creation of a small electrical utility that offers waste heat tem performance. Urban form, land use mix, for use in buildings or for the operation of a cooling system. Typically, such a combined system is able density, connectivity, and proximity all have ef- to raise overall efficiencies from 55 percent to 80 percent. The on-site power may be used for local transit year-round. Flexibility is also enhanced because energy sources may be mixed to take advan- fects on infrastructure performance. Yet, few tage of market rates, local waste products, weather, new technology, and so on. Any excess electricity land use plans are evaluated from this perspec- from the local utility may be offered to the regional grid and used for more efficient load manage- ment and backup. tive. Planners and engineers sit in different meetings at different times and ask different questions. Seldom do infrastructure concerns ty. After the water is used in the village, a heat influence land use plans or vice versa. Despite pump draws thermal energy from the sewage this disconnect, the best time to consider ways and returns the heat to buildings that require to minimize infrastructure costs is during the space and water heating. When the sewage is early stages in land development processes. eventually treated, the methane gas that is re- In principle, spatial planning may contrib- leased is used to power the treatment facility. ute to lower infrastructure costs by increasing Is this a water system? A hydroelectric system? density and compactness and by locating de- A gas-fired electrical system? A district heating velopment sites in close proximity to key facili- system? A sewage treatment system? Answer: ties (box 1.4). The amount of linear infrastruc- all the above. ture required for low-density, single-family 70 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 1.13 Uses of a Pedestrian Pathway Source: Rutherford (2007). Note: A pleasant pedestrian pathway (an example in each photograph) serves the transportation needs of a walkable community, providing a quiet, safe, and cool option for moving around. At the same time, it also functions as an element in other infrastructure systems. The garden strip on both sides of the pathway is used to grow plants and flowers that help keep the city cool, reducing energy requirements for air-conditioning. The pathway is bordered by a gentle swale or depression in the earth that functions as an infiltration trench, intercepting and slowing storm water flows. The soil in the trench is enriched with composted organic waste, avoiding the need to truck such waste out of the community. The enriched organic soil is highly absorbent and, thus, needs little irrigation to stay green, helping reduce the city water budget. The subbase for the pathway is composed of ground glass and rubble from returned bottles and from industrial waste. In essence, the pedestrian pathway is a transportation facility that also serves to manage and treat storm water flows, recycle organic and inorganic waste, cool the city, and provide a water-efficient garden amenity. Figure 1.14 A Distributed System for Wastewater Treatment Source: Author elaboration (Sebastian Moffatt). Note: In this example, a distributed system for wastewater treat- ment incorporates low-flow fixtures in buildings, primary treat- ment in septic tanks attached to each building, and an advanced secondary treatment system in a courtyard to serve a cluster of nearby buildings. The water is decanted from septic tanks and sprayed over a gravel bed in the recirculation tank. The reclaimed water exiting the tank is safe for all uses other than drinking. This water may be used for flushing toilets in a two-pipe system or for irrigating and fertilizing gardens. It may also be used as an input into local industrial processes or as a way to augment water in streams, fire prevention reservoirs, and fish ponds. Wastewater THE FRAMEWORK | 71 Materials Management Figure 1.15 Integrated Materials and Waste Management Figure 1.16 Innovative Energy Infrastructure Source: Author elaboration (Sebastian Moffatt). Source: Author elaboration (Sebastian Moffatt). Note: This simple illustration shows how the solid waste stream from a city neigh- Note: Energy systems may take advantage of flows from other sectors. For example, a borhood (center) is diverted to other sectors: crushed glass provides a base for sound barrier along a highway has photovoltaic panels that generate electricity to be roads; composted organics provide nutrients; compost provides soil additives for reused for domestic hot water; a small turbine in the water supply system harnesses parks and public green spaces; and coarse organics are used to create drains next to excess water pressure to generate electricity; and methane from composting facilities is highways that capture and clean storm water flows and runoff water from roads. used to generate heat and power. Finally, a facility converts organic matter to biogas for use in generating heat and power. Figure 1.18 Traditional Dwelling Supply Systems Source: Author elaboration (Sebastian Moffatt). Note: The high demands of this dwelling are satisfied through disconnected infrastruc- ture supply systems. Figure 1.17 Integrated Storm Water Management Source: Author elaboration (Sebastian Moffatt). Note: Storm-water management systems may realize synergies with other urban sys- tems. Here, a bicycle path doubles as an infiltration trench; shady trees and green roofs reduce energy use and also keep precipitation away from drainage systems and slow rainwater flows; roof rainwater catchment and storage systems provide water for gar- dens and lawns; and storm water is directed into finishing ponds for reclaimed waste- water, helping to treat sewage and maintain amenities. 72 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 1.4 Form and Flows The sustainability of infrastructure systems depends on the path chosen for spatial development. To appreciate impacts, one must compare the spatial layout of Atlanta and Barcelona at the same level. The comparison of these spatial distributions of population illustrates differences in urban spatial structure and the consequences for the operation of transit and other infrastructure. Imagine the differences in capital costs to service these populations of similar size. Remember that distribution network cost is a large share of the total cost; for example, pipes account for about 70 percent of the cost of a water supply system. Also, imagine the differ- ences for these cities in the operation and maintenance of water systems (the pumping of water and the collection and treatment of waste) and transportation systems. Keep in mind that about 30 percent of urban energy bills often goes for pumping water and wastewater. Figure 1.19 Combined Trenching for Infrastructure Systems Source: Author elaboration (Sebastian Moffatt). Note: This dwelling is much more resource efficient by design. The in- frastructure application combines trenching and more varied flows to facilitate the sharing and cascading of resources within the housing cluster. housing can be 17 times greater than the amount required for multiunit dwellings in dense urban developments (the cost of sprawl). The capital cost savings are roughly propor- tional to the average length of the system per serviced unit. In low-density, single-use devel- opments, local governments often generate less in development fees and property taxes than they spend in services and infrastructure Source: Bertaud and Poole (2007). costs, such as roads, water mains, and sewer- age. An analysis found that, for every U.S. dol- lar raised in development fees and property taxes in southwestern Ontario, Canada, US$1.40 cities may decisively exclude pedestrians, as needs to be spent on services. The rest of the shown in photographs of Houston, Texas (figure city subsidizes lower-density development. 1.20). Houston has a population of 2.2 million, Urban form and density lock in some of the and its area is 1,600 square kilometers. most significant physical and economic param- Figure 1.21 illustrates this relationship eters of supply-side infrastructure investments. across a range of cities, underscoring that ur- Public transportation and district heating and ban form and density significantly affect energy cooling are examples of efficient technologies consumption in transportation. that become financially viable only at certain Proximity and connectivity to key facilities threshold urban densities. are other factors because scattered pockets of As cities sprawl and splinter, the energy development are likely to be far from supply consumption involved in transporting people and processing systems and require relatively can increase by a full order of magnitude, and greater investments in trunk lines, major roads, THE FRAMEWORK | 73 Figure 1.20 A Broad View of the City Center of Houston Source: Houston-Galveston Area Council, Google Earth. Note: The expanded view shows a parcel of land that is theoretically within walking distance of the city center. pumping stations, and so on. The additional pumping water and wastewater to and from capital costs for remote connections are typi- new households and businesses. cally shared by all users and translate into cost Because resource efficiency and emissions premiums. If higher-density, transit-oriented are influenced directly and permanently by ur- developments are instead located downstream ban form and density, intelligent spatial plan- from water reservoirs and close to existing ning is the first proactive step toward DSM in mains, the capital costs of development will be infrastructure (figure 1.22). The mixing of land much lower, and the city can avoid the other- uses at the neighborhood level can reduce sys- wise significant costs—often 30 percent or tem costs by evening out the demand for ser- more of total energy bills—associated with vices and reducing the peak loads that directly 74 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 1.21 Urban Density and Transport-Related Energy Consumption Source: Kirby (2008). affect the design capacity and capital costs of detailed information on how spatial form and infrastructure systems. land use regulations affect mobility and afford- Land use plans also need to consider existing ability, see part 3.) and planned infrastructure capacity and direct Poor spatial planning can fragment labor growth plans accordingly. Certain locations markets and make cities unaffordable for peo- within a city may be especially suitable for infill ple who cannot buy cars. They render the cities or new development precisely because they vulnerable to fluctuations in oil prices. For have excess capacity for power, roads, and wa- instance, the spike in gasoline prices in the ter. In other locations, capacity may be nonexis- United States in spring 2008 resulted, over a tent, and land development may require major four-month period, in a 6 percent drop in ve- new investment for one or more systems. Ideal- hicle kilometers traveled. By moving people ly, infrastructure capacity needs to be analyzed out of cars and onto public transit, the area re- and mapped on a fine scale and included in the quired for roads and parking may be drastically overlay analysis that guides land use planning. reduced, as suggested by the photographs of At the same time, spatial development (and Houston. Cheap or free parking subsidizes car its coordination with broader investment strat- use, as do massive land investments in roads. In egies and plans) has significant implications cities, parking should be market priced and for economic competitiveness, and it affects compete for real estate. land and real estate markets. Spatial develop- Policies that affect the viability of transit ment and infrastructure investments set in also affect the cost and performance of trans- place and shape the contours of these larger portation infrastructure. For example, densi- economic dynamics. Spatial development is ties of around 50 people per hectare are re- also influenced by these dynamics. (For more quired to provide convenient alternatives to THE FRAMEWORK | 75 ents from entering streams. Storm water permeates the soil, or is re- tained on leaves or captured by roots, and the result is less damage to aquatic environments or re- duced requirements for investing in treatment systems. Such natural systems may be more or less engineered to suit the city’s needs. For instance, being surrounded by rivers such as the Iguaçu, flooding has been a big Figure 1.22 A Different Paradigm for Urban Design problem in Curitiba, Brazil. In- Source: Author elaboration (Sebastian Moffatt). stead of controlling water flow us- Note: Big roads, lengthy pipes, big wires, and larger pumps are replaced by a mixed use, compact, pedestrian-friendly design whereby public funds are used for parks and social and local services. ing concrete structures, Curitiba has created natural drainage sys- tems. Riverbanks have been con- the car. These two issues are impossible to sep- verted to parks that retain floodwater in the arate. Thus, a key strategy for improving over- soil, and lakes have also been constructed to all system performance is to organize land use, hold floodwaters. River water and rainwater densities, connectivity, and access to ensure vi- that lead to flooding may be contained natu- able public transit and other infrastructure. rally in the lakes and in the parks surrounding the lakes. The ecosystem is preserved in a nat- Green infrastructure: Integrating ural way. As floodwater to the park area is re- natural systems with built systems leased from the ground to the river naturally The integration of natural systems with infra- (rather than being drained at high speeds structure is possible through green infrastruc- through straight concrete drains), downstream ture and ecological engineering. Green infra- flooding may be avoided. People are less ex- structure refers to the city’s naturescape, that posed to environmental hazards and the dis- is, the mix of trees, shrubs, hedgerows, gardens, eases caused by flooding. The cost of building green roofs, lawns, parkland, and waterways. parks, including the cost of the relocation of These natural elements may be effective in slum dwellers, is estimated to be five times providing a variety of services for other sectors lower than the cost of building concrete canals. (figure 1.23). For example, when the mayor of Land use plans may also be used to incorpo- Los Angeles, California, faced brownouts and rate green infrastructure if they are associated severe energy shortages in 2004, his response with policies that manage the demand for ser- was to invest in the planting of thousands of vices. In Freiburg, Germany, for example, land trees along the streets of the city. Urban forests use plans address storm water runoff by taxing save energy by reducing temperatures, shading land differently based on the permeability of buildings, cooling the air, and reflecting sun- the surfaces. As a consequence, developers are shine. The trees in Los Angeles are part of the careful to minimize hard surfaces on parcels, city’s energy infrastructure. using crushed stone for pathways, paving The most common examples of green infra- stones for parking, and so on. The result is less structure are the ribbons of green riparian ar- cost for taxpayers because the city avoids in- eas along streams and rivers. These green vestment in infrastructure for capturing, trans- strips act as filters, preventing silt and nutri- porting, and treating storm water. 76 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Layering: Integrating different uses for a common space over time The layering of uses may also occur over time. A school and its playgrounds might serve to educate children during the day. However, these areas might become sites for after-school programs in the afternoon and schools for adults in the evening and, on weekends, serve as coffeehouses, theaters, or open-air craft and farmers markets (figure 1.24). The schoolyard might also be an overflow flood control basin during the monsoon season. Smart cities do not build schools; they build multipurpose civic facilities that change their use by the hour, day, weekend, and season. It is the community (not the school board), that controls usage, and the building continues forever as a community asset, even if the need for schooling decreases. The multiple functioning of elements in a system creates a layered approach to design whereby each location serves many purposes. This is part of a slow evolution away from the highly segregated land use patterns that are typical of many modern cities. More attention to design helps mitigate or eliminate the nega- tive impacts of diverse uses on surrounding parcels. Industries are not necessarily dirty af- fairs that need to be isolated from the homes of Figure 1.23 Integrating the Benefits of Natural Systems in Communities workers. In fact, their processed wastes and Source: Author elaboration (Sebastian Moffatt). emissions are now recognized as valuable re- Note: The settlement in the upper illustration is not blended into its surrounding ecological systems; it neither benefits from nor uses these systems efficiently. By contrast, the settlement in the lower sources, providing feedstock for new industry. illustration harnesses ecological attributes to its advantage, including wind, elevation, sunlight, and Mixing shops and residential areas enhances ecological sewage treatment options. This reduces the settlement’s footprint and ongoing costs. livability and sustainability and creates jobs close to home. Colocation: Using the advantageous siting and placement of new structures and rights-of-way The more efficient use of facilities may be achieved through the strategic and cooperative siting and placement of new structures and rights-of-way. One common example is the mounting of photovoltaic and solar water heat- ing panels on rooftops where they take advan- tage of unobstructed sunshine (and possibly Figure 1.24 The Multiple Uses of a Public School provide useful shading for buildings). Rights- Source: Author elaboration (Sebastian Moffatt). THE FRAMEWORK | 77 Sanitary and Energy Systems Integration in Shanghai “Sense of place increases when structural and As part of an environment program for Shanghai, China funded by the infrastructure systems integrate with ecologi- World Bank, the Shanghai Municipal Sewage Company plans to con- cal and human systems and dynamics. . . . struct a large-scale incineration plant for sludge drying. The utility When this integration occurs, structural and company is planning to use the steam generated by a nearby thermal infrastructure systems make resources available power station for drying. The use of the steam generated by the pow- for human use, while communicating an inte- er station will improve the incineration plant’s efficiency and safety, gration of people and place.” while reducing the need to burn imported oils, which would lead to Source: Motloch (2001: 58). greenhouse gas emissions. of-way may be shared by many different ser- Employing Integrated implementation vices. A wet-waste composting facility might We now examine ways to implement projects be colocated with community gardens to facili- using a more well integrated approach. This tate easier looping and to manage the noise, means sequencing investments so that the city odor, and activity impacts more effectively. sets the correct foundation and addresses long- Although the relevant structures and activities lasting, cross-cutting issues first. This also may be planned by different groups, their inte- means creating a policy environment that gration benefits everyone. enables an integrated approach, coordinating a full range of policy tools, collaborating with Place making: Creating social amenities as stakeholders to align key policies, and targeting intrinsic attributes new policies to reflect the different circum- Hard infrastructure facilities may be designed stances involved in urbanization in new areas to contribute to the community in many social and existing areas. and aesthetic ways. It is no longer necessary to hide wastewater reclamation plants if the Sequencing: Use the phasing of investments treatment basins have become pleasant nature to capture whole-system synergies ponds with landscaped shorelines served by Sequencing refers to the ordering of integra- quiet trails. The reclamation system in Irvine, tion strategies so that decisions in one sector California, is frequently used by residents as a do not preclude integration in another. For in- park area because the connected water bodies stance, a city’s location and its route of growth and trails provide a unique and enjoyable expe- are primary factors determining the city’s spa- rience. Water storage tanks can become sculp- tial advantages and constraints. Location de- tures and way-finding landmarks. Recycling termines the physical and environmental con- depots can become community gathering places. ditions of the city: altitude, topography, and The opportunities are unlimited if the mandate climate. Location has implications for a city’s for design involves integration. urban form and density, its infrastructure sys- tems (demand and supply), and its built envi- ronment requirements and possibilities. Loca- tion also determines the access and proximity to natural resources (such as renewable energy resources) and the access and links to the eco- nomic geography of a region. 78 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Sustainable Urban Design, Goa, India The urban design flowed seamlessly from the ecosystem and landscape design, integrating natural systems, heritage elements, and the existing settlement fabric of Goa into a new condensed structure. Instead of settlements colonizing the landscape, settlements become compact islands in a sea of biodiversity. . . . The settlements themselves are also planned based on these principles, guided by slope and contour, water flow lines, and link- ages to water and transport networks. They are interwoven with surrounding agriculture, horticulture, and forestry areas, with green fingers penetrating in to the settlements. Source: Revi and others (2006: 64). Like people, cities function most efficiently Figure 1.25 Time Rings if they have good bones, the strong structural Source: Author elaboration (Sebastian Moffatt). Note: Time rings help to sequence investments for optimum returns. A strategic approach to infrastruc- elements that are able to provide the proper ture planning examines all opportunities for integration, but moves in sequence from the most slowly context for the shorter-lived elements. Within changing elements (such as the integration of infrastructure with natural systems and land use plans), to the most rapidly changing (such as integrating management systems, providing incentives for consumers, an urban region, the sequence typically progress- or monitoring and adaptation). es from slow-moving elements such as local ecologies and natural assets, land use patterns (including rights-of-way), and building stocks vestment in local ecologies, or smart growth, or to the more rapidly moving elements such as demand reduction is able to provide a more management policies and consumer behavior. sustainable solution. The longer-lasting elements are given priority because they may be changed only slowly and at Enabling: Develop policies that enable great cost and will constrain the possibilities in implementation of the different types of other sectors. If significant opportunities for in- integration strategies tegration at this level are missed, it may take a Despite the best intentions, cities often stumble long time to rearrange and correct problems. in the attempt to implement sustainable infra- Figure 1.25 provides a rough guide for se- structure and land use. Outdated polices prevent quencing integration opportunities during the new approaches and artificially freeze the tech- diagnostics stage of a project. Moving from the nology. Policies developed for one goal inadver- outside in, we see how specific integration op- tently influence design solutions in unforeseen portunities tend to line up. Harmonizing infra- areas. Any developer who has tried to apply eco- structure with the surrounding ecology and logical design will have plenty of such stories. resource base is a good first step. Integration Consider a proposal for a new underground on- with urban form and land use is next. Demand site sewage treatment system for Dockside in reduction is next. All this is common sense. Victoria, Canada’s premier example of sustain- There is no point in investing in large remote able mixed use development. Although the sys- supply or processing systems if a similar in- tem was eventually built and is now working THE FRAMEWORK | 79 well, the developer first had to deal with al level, there may be less need for policy or months of difficult negotiations. The city did investment in infrastructure, except as required not like the idea of on-site sewage treatment, for regional integration (such as in regionwide despite the fact that the whole city was dump- transportation systems). From this ideal per- ing its sewage untreated into the ocean. The spective, implementation policies in the city developer’s plans were rejected initially be- may begin to emulate the self-organizing and cause the city had regulations against treat- self-reliant properties of natural ecologies. ment plants in residential areas. Other regula- tions of the health department forbade any use Coordination: Offer instruments in of reclaimed water for toilet flushing and gar- at least five flavors dening, making the advanced technology in the Local governments have many policy tools for new Dockside neighborhood much less eco- the implementation of a one-system approach. logical. How could they benefit from reusing Too often, the focus is exclusively on legisla- wastewater? Yet another obstacle was the city’s tion and enforcement. An integrated approach property tax structure, which forced the resi- to implementation requires that cities take dents in Dockside to pay a share of the city’s full advantage of all instruments available to upcoming sewage system, although they would the city and to the stakeholders who collabo- not be using it. rate with the city. Every Eco2 project benefits The reality is that every city has many poli- from the integration of at least five different cies that conflict with a new one-system plan- categories of instruments. Financial instru- ning framework and the ecological design and ments may include incentives, subsidies, pric- management of new projects. One of the most ing, taxing policies, fee structures, market important outcomes of an Eco2 catalyst project reforms, purchasing policies, and much more. is the exposure of such policy conflicts. A col- Special planning initiatives may include new laborative framework may help quickly resolve plans, new institutions, institutional restruc- such issues in catalyst projects and lead to new turing, special reporting, and special events. policy in the process. Research and demonstration may focus on In general, enabling policies have impacts innovative technology applications, tours, well beyond conflict resolution. Ideally, the fact-finding missions, surveys and assess- policy environment that evolves in a city rein- ments, conferences, policy research centers, forces the goal-oriented framework and stip- and forecasting. Education and inspiration ulates performance requirements rather than may include professional training, visioning prescribing specific solutions. While the city exercises, cotraining, communities of prac- needs to articulate constraints and targets tice, curriculum reform, special publications, clearly for the community, the most creative communications, social networking, and in- design solutions are likely to be achieved at vestments in social capital. Legislation and the most local scale, such as the building, par- enforcement may include a wide variety of cel, or neighborhood. Primary responsibility regulations, codes and standards, specific needs to remain with local actors and decision fines, and policing policies. makers. They are the first to explore design In some cases, the capacity of a city to apply options and, thus, have the greatest freedom particular policies will be restricted by national to innovate. Only those service or perfor- governments and by statute. However, through mance requirements that cannot be success- collaborative working groups composed of fully satisfied locally because of technical, senior government officials and stakeholders, economic, or other practical reasons should such limitations may be overcome. The best be passed on to the scale above. At the region- approach to implementation is always the 80 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES application of the full set of instruments in Collaboration: Synchronize policies among all concert as time and resources allow. the stakeholders For instance, if a city wants to reduce water The best approach is to help everyone row in consumption at the lowest cost, it might ex- the same direction. All stakeholders and proj- plore an integrated approach on a collaborative ect partners bring a unique combination of basis. This might involve (1) using a public policy tools based on their mandates, skills, awareness and education campaign to convince and resources. Part of the challenge in cities households and businesses of the need for and implementing new projects is ensuring that all benefits of water savings and to seek their sup- stakeholders have aligned their existing poli- port in designing tariff increases (stakeholder cies and programs and are using their particu- engagement); (2) adjusting the structure of lar strengths to support the project goals and water tariffs, fees, and pricing (a policy and strategies. By collaborating with senior levels regulatory issue and demand management); of government, local utilities, private sector (3) promoting the use of water-saving faucets corporations, and nongovernmental organiza- and toilets (a regulation and building code issue tions, one creates the potential for a broad and and public awareness); (4) designing guidelines diverse suite of policy tools. A collaborative and standards for new residences and businesses process may be able to identify potential ac- to encourage investment in the best performing tions for the public at large and for individuals water-saving faucets and toilets and procure- with special talents or interests. ment policies for private sector suppliers so that the best technology is supplied at high- Alignment: Develop consistent policies volume market prices (engagement with private aligned with goals and strategies in sector stakeholders); (5) providing incentives the planning framework for capturing rainwater and reusing treated All new policy should be based on the relevant wastewater (resource management and market goals and strategies identified in the long-term reform); (6) reducing peak load demand by planning framework and should use them as a creating incentives for distributing use across rationale. The appropriate references may be time or by integrating water storage into the included directly in the policy document. delivery system in areas where capacity is at Sometimes, policy changes must occur its peak; and (7) reducing water leaks by up- within the natural rhythm of policy review, and grading the system. this may result in delays. However, proposed All these measures reduce water consump- changes may be worked out earlier in the cycle tion; the energy requirements for pumping; and placed in queue in the review process. For and the load-bearing requirements (and, an increase in alignment, institutional reform therefore, design specifications) of pipes and may also be necessary, especially if patterns of pumps, a major component of water system development are locked in to networks of pub- costs. On the supply side, if water system in- lic and private groups (see chapter 2). vestments are being planned, then the design We have seen that the shape of urban spatial and layout of the pipes and distribution net- form is significant. The interaction of govern- work and the location of the treatment plant ment action (transportation investments, land should be undertaken with a view to energy and tenure regulations, and taxation) and mar- and spatial efficiency. (For instance, topogra- ket forces is complex, and this interaction shapes phy and its relationship to the location of de- cities spatially. Table 1.2 represents an attempt mand are often examined to foster the effi- to summarize the complex interaction between cient use of gravity in water and wastewater government action and the shape of a city. Of networks.) course, much depends on the specifics of a par- THE FRAMEWORK | 81 ticular case, and the table might not be applica- by allowing through traffic to bypass the city ble in all cases. For instance, the preservation of center. Little thought is given to the impact on sensitive areas through urban growth boundar- the supply and the price of land. ies may be combined with an increase in the Because the objectives of urban regulations floor area ratio and in the permissible transfer of and investments do not consider the one-system development rights in a particular context so as approach, it is not surprising that many govern- not to cause necessarily a spike in land prices. ment actions are contradictory. For instance, in Most important in the one-system perspec- Bangalore, India, the local government finances tive is the fact that most government actions a bus rapid transit system that tends to concen- listed in table 1.2 have limited objectives and do trate jobs in the center of the city. At the same not reflect any consideration for the impacts time, the floor area ratio has been kept lower in on land supply and demand, the shape of the the central business district than in the suburbs, city in the long term, and the attendant impli- thereby preventing the concentration of jobs in cations for economic and resource inefficiency. the central business district, which would have For instance, in the construction of ring roads, been the justification and rationale of the bus the objective is usually to alleviate congestion system in the first place. Table 1.2 Impacts of Government Actions on Land Markets, the Size of the Informal Sector, and the Spatial Structure of Cities Source: Bertaud (2009). Increase = +; decrease = −; (?) = not known. 82 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES This type of contradictory action between cars for commuting. The road-building re- two branches of local government—transpor- quirements in developments are thus kept to a tation and land use planning in this case—is minimum. rather typical. Transportation engineers want However, the pace of change may be a com- high densities along transit routes to ensure a plex issue governed by the individual agendas large number of passengers for the transit they and financing capacities of various landowners design. Planners, faced with congestion in the and government actors. In most cities, one of city center, find it easier to regulate a decrease the biggest roadblocks to the implementation in densities to alleviate congestion. This is of well-thought-through spatial plans in new where a planning framework may be valuable. areas is the ground-level realities of landown- A framework helps ensure that the misalign- ership and the limitations of the city’s influ- ment of actions is drastically reduced. ence on land and of the city’s finances. Special policies may be required to help unorganized Targeting of policies: Recognize the different landowners cooperate and to avoid incremen- needs of existing urban areas and new tal and largely unplanned expansion into new development areas. An example of such a policy is urban One of the biggest factors influencing the se- land pooling and land readjustment. This quencing of investments and their capital costs method is particularly interesting because is the focus of the development, whether a it tackles two problems at once: land and newly urbanizing area or an existing part of the finance. It is briefly described in box 1.5. city. Most cities include both types of situa- tions, and it is important to adjust and target THE RETROFITTING AND REDEVELOPMENT OF EXISTING AREAS the strategies accordingly. One of the difficulties we all face when we are NEW DEVELOPMENT confronted by urban problems is the illusion of In newly urbanizing areas, the extent of one- permanence. The physical reality of buildings, system integration is wide open. The major roads, and trees conveys a strong message that constraints may be the financial resources and only through superhuman effort will radical the capacity of the design team. The clear ad- changes occur. But, of course, the reality is al- vantage of new urbanization is the opportunity most the reverse. Maintaining neighborhoods to apply the best land use practices and spatial in their current form, delaying the deterioration design principles and to integrate land use of buildings and roads, and providing services to planning and the design of infrastructure sys- all residents and businesses typically require tems. The stage may be set for cost-effective, vast amounts of energy and time on a day-to-day incremental urbanization through optimal se- basis. In fact, the operating and maintenance quencing. Reserving rights-of-way for roads costs of many city neighborhoods are often so and services is easier, as is the allocation and high that it is possible to justify a complete ret- designation of land for key government and rofitting of neighborhoods and, in some cases, utility functions and open spaces. even redevelopment if the disruption to peo- An example in Freiburg, Germany, is the ple’s lives and businesses is not an issue. alignment of transit services with land devel- Badly planned cities represent a constant opment planning. Because occupancy permits drain on resources. In dealing with existing ur- are not granted for new residences until light ban areas, cities may rely on a range of mea- rail transit services have begun operations in a sures to enable the existing built form to per- block, newcomers are discouraged from using form much more effectively. The measures THE FRAMEWORK | 83 BOX 1.5 Urban Land Pooling and Land Readjustment Urban land pooling and land readjustment are innovative techniques The sharing of project costs and benefits among the landowners, for managing and financing urban land development. Local and central such as increased land values, is based on their contributions of land governments are applying such techniques to assemble and convert to the project. The calculation of each landowner’s share may be rural land parcels in selected urban fringe areas into planned road lay- based on the area of his or her land parcel relative to the total land outs, public utility lines, public open spaces, and serviced building plots. area or on the estimated market value of the land relative to the esti- Some of the plots are sold for cost recovery, and the other plots are mated market value of the total area. distributed to landowners in exchange for rural land parcels. For viability, There is an important legal difference between land pooling and the value of the urban plots distributed to landowners after subdivi- land readjustment in landownership. In a land pooling project, land is sion needs to be significantly higher than the value of the plots before legally consolidated by transferring the ownership of the separate land the project begins. parcels to the land pooling agency. Later, the ownership of most new In a typical project, the authorized land pooling and readjustment building plots is transferred back to the landowners. In a land readjust- agency selects and designates the urban fringe area to be developed ment project, the land parcels are only notionally consolidated, and and identifies the land parcels and owners to be included. A draft the land readjustment agency has the right to design services and sub- scheme is then prepared to plan, define, and explain the project and divide them on a unified basis. Then, at the end of the project, the demonstrate financial viability. landowners exchange their land parcel title documents for the corre- Majority landowner support for each proposed project is a key re- sponding documents of the new building plots. quirement for the successful application of the technique and is there- There are many successful examples of such projects, for instance, fore an important consideration in selecting project sites. Although the in Indonesia, Japan, and the Republic of Korea. A similar process of land emphasis is on landowner agreement and support for each proposed pooling and land readjustment is practiced in the state of Gujarat in project, the land pooling and readjustment agency must also be able India, where the projects are known as town planning schemes. (See and willing to use the government power of compulsory purchase figures 1.26 and 1.27, which illustrate the before and after scenarios of against any minority holdout landowners in the designated project land readjustment in Gujarat.) area if this becomes necessary. Source: Mehta and Dastur (2008). usually fall into two categories: retrofitting and portation corridors cannot be imposed unilat- redevelopment. Retrofitting existing city areas erally or quickly. Nor is it easy to upgrade the entails working with the existing built stock and systems serving so many unconnected build- infrastructure and making improvements to en- ings. Many stakeholders must participate in hance performance, without redeveloping the decision making. Projects require longer time entire area. Examples of retrofitting measures frames so that communities may adjust. An in- include implementing end use efficiency in the cremental approach may be required, which energy and water sector; reducing, reusing, and makes the sequencing of strategies difficult. recycling waste; and adapting existing transpor- Development may need to include, for exam- tation infrastructure (roads) to more efficient ple, complex arrangements for slum upgrading uses (for instance, by designating routes for bus and arrangements for new utilities and rights- rapid transit and lanes for bicycles). of-way. The pace of change may need to evolve Redevelopment entails demolishing and re- incrementally in sync with the natural turn- building certain areas of the city and is typi- over rate for the stocks, or it may be necessary cally more complicated. Redevelopment is to wait until the service quality and operating challenging because of the political, social, and costs justify large-scale urban redevelopment. economic costs of making changes in existing However, cities may explore creative and land uses and structures. New zoning or trans- cost-effective ways of remodeling the distribu- 84 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 1.26 Shantigram Township before the Land Readjustment Scheme, Gujarat, India Source: Ballaney (2008). Note: This figure and the following illustrates the ‘before’ and ‘after’ scenarios of Land Readjustment in Gujarat, India. tion, density, and use of the existing built form have already built up urban structures. How- by increasing the floor area ratio; allowing the ever, if accompanied by a sizable increase in transfer of development rights (see the Curitiba the floor area ratio or, in the case of slums, by case in part 3); rezoning and changing land use formal recognition or the introduction of basic patterns; and, more important, revising and services such as drainage, water, and sanita- enforcing building codes and standards. These tion, the returns may make economic sense. steps might create incentives for private rede- Redevelopment projects at a larger scale for velopment efforts. In some cases, land read- certain areas and districts of a city have also justment may be used, though it is much harder been successful in enhancing the sustainability to convince stakeholders in an existing urban of existing areas. Such is the case of the rede- community to demolish their properties for velopment of old manufacturing sites as water- the purpose of the city’s redevelopment if they front residences. Because the old sites are not THE FRAMEWORK | 85 Figure 1.27 Shantigram Township: Final Serviced Land Parcels for Sale, Gujarat, India Source: Ballaney (2008). being used, it is easier to coordinate projects Stepping Stones for the and gather consensus. The redevelopment of One-System Approach existing residential neighborhoods is signifi- cantly more disruptive and less likely to be Provide just-in-time training and supported by consensus. In such cases, retro- capacity building fitting existing structures or creating incen- The city leadership must provide multiple op- tives by increasing the floor area ratio in portunities for local professionals to become exchange for greater compliance with new comfortable with the one-system approach. An resource-efficient constructions is often more Eco2 catalyst project, for example, represents a realistic. concrete opportunity to train professional staff in new procedures and methods. Ideally, the 86 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES training occurs in a timely fashion because new Conduct a series of preparatory integrated skills need to be immediately applied or they design workshops may be lost. Integrated design workshops create important A special effort is warranted to ensure that opportunities for planners, designers, and en- relevant institutions and people become well gineers to come together and use new methods informed, supportive, and capable. Training and information. The number and the scope of may include invitations to local consultants the workshops vary with the situation. Some- and firms who would benefit from exposure times, it is best to plan one or two short work- to the catalyst project and any new approach- shops to clarify goals, set targets, and share in- es. Without training, these local experts may formation among stakeholders. The directions tend to obstruct projects and refuse support. and priorities may be refined and aligned with Cultivating local expertise is an investment the city’s shared planning framework. The and will ultimately determine what may be framework (if already established) may be used achieved citywide and in other cities in the within workshops to orient discussions or stim- country. ulate creative thinking and then to evaluate pre- A training program in the one-system ap- ferred strategies and actions. Workshops may proach may benefit from a variety of resources: also examine analytical methods, producing, for Other cities: Interested cities may access the example, a business-as-usual scenario for critical expertise of other cities and planning benchmarking purposes. This scenario may in- institutes or agencies. It may be especially clude a material flow analysis and meta dia- helpful to learn from other cities that have suc- grams, overlay mapping, risk assessment, and cessfully implemented the approach and cre- other analytical exercises. Workshops may also ated the institutional framework for sustaining be used to review and finalize a design brief in such efforts. preparation for more intensive design work. Part 2, methods: To apply the one-system approach in the design, analysis, formulation, Explore design solutions, and prepare and implementation of the options outlined in a concept plan for review this chapter, it is necessary to develop capacity An integrated design process should be used to and proficiency in the use of key methods and generate alternative proposals for designing, tools, some of which are introduced in the city- constructing, and managing the project. A mul- based decision support system (see part 2). The tiday urban-systems design charrette (a type of full scope of integration options may be ex- intensive workshop discussed in part 2) is a plored using methods and tools to develop and tool that may facilitate the integrated design assess the performance of integrated solutions. process, helping to generate creative and effec- Familiarity is required, especially in material tive proposals in the shortest time. A well- flow analysis and overlay mapping. planned systems design charrette often pro- Part 3, case studies and sector notes: The duces a final concept plan that is more than 90 sector notes in the Field Resource Guide pro- percent complete. A charrette involving regu- vide more information on individual sectors latory and management personnel may help and more specific and detailed ideas. The case reveal existing policies that may need to be studies on best practice cities that are also revised or removed to enable innovation. A featured in the Field Resource Guide may design charrette may benefit the project introduce staff and consultants to examples of indirectly by generating goodwill among stake- approaches in the real world and also reveal holders and by helping experts become famil- critical lessons learned. iar with new concepts and technologies. The THE FRAMEWORK | 87 integrated design process should culminate in Bertaud, Alain. 2009. “Urban Spatial Structures, a recommended concept plan for implementa- Mobility, and the Environment.” Presentation at “World Bank Urban Week 2009,” World Bank, tion, including any policy reforms. Washington, DC, March 11. Bertaud, Alain, and Robert W. Poole, Jr. 2007. “Density Align policy tools among all stakeholders in Atlanta: Implications for Traffic and Transit.” to ensure successful implementation Policy Brief 61, Reason Foundation, Los Angeles. Use the procedures outlined in this chapter to Boyden, Stephen, Sheelagh Millar, and Ken Newcombe. 1981. The Ecology of a City and Its People: The Case implement the project in an integrated fashion. of Hong Kong. Canberra: Australian National This may help sequence investments, enable University Press. contributions from partners and residents, co- Kenworthy, Jeffrey R. 2006. “The Eco-City: ordinate strategies among stakeholders, and Ten Key Transport and Planning Dimensions for Sustainable City Development.” Environment and align and target policies to match the planning Urbanization 18 (1): 67–85. framework. A collaborative exercise helps all Kirby, Alex. 2008. Kick the Habit: A UN Guide to interested parties explore how to use comple- Climate Neutrality. Nairobi: United Nations mentary policy tools to implement the concept Environment Programme. plan and achieve the intended outcomes. A Lahti, Pekka, ed. 2006. Towards Sustainable Urban Infrastructure: Assessment, Tools and Good strategic action plan may be prepared to clarify Practice. Helsinki: European Science Foundation. who is responsible for each of the various tasks Lovins, Amory B., E. Kyle Datta, Thomas Feiler, and to indicate how policies interact. Where Karl R. Rábago, Joel N. Swisher, André Lehmann, appropriate, a feasibility plan and a detailed and Ken Wicker. 2002. Small Is Profitable: The Hidden Economic Benefits of Making Electrical master plan may be prepared with specifica- Resources the Right Size. Snowmass, CO: Rocky tions and guidelines for each element and for Mountain Institute. each phase of the work. Mehta, Barjor, and Arish Dastur, eds. 2008. “Approaches to Urban Slums: A Multimedia Sourcebook on Adaptive and Proactive Strategies.” World Bank, Washington, DC. References Motloch, John L. 2001. Introduction to Landscape Design, 2nd ed. New York: John Wiley and Sons. Baccini, Peter, and Franz Oswald. 1998. Netzstadt: Revi, Aromar, Sanjay Prakash, Rahul Mehrotra, Transdisziplinäre Methoden zum Umbau urbaner G. K. Bhat, Kapil Gupta, and Rahul Gore. 2006. Systeme. Zurich: vdf Hochschulverlag. “Goa 2100: The Transition to a Sustainable Bai Xuemei. 2006. “Solar-Powered City: Rizhao, RUrban Design.” Environment and Urbanization China.” In State of the World 2007: Our Urban 18 (1): 51–65. Future, ed. Worldwatch Institute, 108–9. Rutherford, Susan. 2007. “The Green Infrastructure: Washington, DC: Worldwatch Institute. Issues, Implementation Strategies and Success Ballaney, Shirley. 2008. “The Town Planning Stories.” West Coast Environmental Law Research Mechanism in Gujarat, India.” World Bank, Foundation, Vancouver, Canada. http://www.wcel. Washington, DC. org/wcelpub/2007/14255.pdf. Barry, Judith A. 2007. “Watergy: Energy and Water Tortajada, Cecilia. 2006. “Singapore: An Exemplary Efficiency in Municipal Water Supply and Case for Urban Water Management.” Additional Wastewater Treatment; Cost-Effective Savings of Paper, Human Development Report. United Water and Energy.” Handbook. Alliance to Save Nations Development Programme, New York. Energy, Washington, DC. http://www.watergy. net/resources/publications/watergy.pdf. 88 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 6 An Investment Framework That Values Sustainability and Resiliency Chapter 6 introduces the accounting method and framework that are needed to understand the full costs and benefits of projects and policies. It begins with an introduction to the basics of life-cycle costing for cities and the policies and methods that make this possible. Next, the chapter explores the need for an expanded framework for economic accounting by Eco2 cities. The framework gives equal consideration to various categories of assets: manufactured capital, natural capital, social capital, and human capital. The chapter explores an expanded framework for risk assessment that incorporates foresight methods, including long-term forecasts for all sectors, and a design philoso- phy that increases the resiliency and adaptive capacity of city lands and infrastructure. The chapter concludes with suggestions for key actions or stepping stones that might direct the city as it learns to invest in sustainability and resiliency. The Core Elements of Investment all the costs incurred by a project throughout its in Sustainability and Resiliency life cycle, including construction, operation, maintenance, rehabilitation, disposal, and re- Incorporation of life-cycle costing placement.1 Part of the challenge faced by all cit- Life-cycle costing (LCC) is a decision support ies today is the integration of cash flows over method that helps cities improve project cost- time. This includes optimizing capital and oper- benefit accounting measures and derive more ating costs, ensuring adequate cash flows over accurate estimates of the financial and eco- the longer term, and recapitalizing investments nomic costs and benefits associated with any so that funds are available for the replacement development project. Life-cycle costs include of assets at the end of a project’s life cycle. THE FRAMEWORK | 89 LCC is especially important for the long- LCC makes possible a more prudent and re- lived investments that are a large part of city sponsible approach to the long-term financing infrastructure and land development. LCC is of investments. The calculations may be rapid important for decisions regarding fleets, which and comprehensive. For example, a new neigh- are decisive in determining new vehicle acqui- borhood development project may be analyzed sitions; infrastructure, which is especially rel- for a variety of densities and configurations, evant for water, transportation, and energy sys- and then each scenario may be compared in tems; land use planning as it pertains to terms of the capital and operating costs for infrastructure costs; civic buildings, which are utilities and services, including roads, water, relevant for premium efficiency targets for new sewerage, garbage, schools, recreation facili- and existing stock; and residential and com- ties, public transit, private vehicle use, fire pro- mercial buildings. tection, and policing. The interest rates for LCC requires that life expectancy and rate borrowing, tax rates, and service revenues may of deterioration be estimated for each type of be calculated for different development plans asset. It then becomes possible to quantify and fiscal policies. maintenance and rehabilitation requirements. Life-cycle costs are typically annualized The maintenance of city infrastructure sys- (converted into an annual cost) over a long pe- tems—pipes, facilities, pumps, and roads—may riod (75 years in the case of the neighborhood be extremely costly and may have significant construction project in Hamilton) allowing for impacts on the cash flow and financial sustain- the operation, maintenance, and replacement ability of any project. It also affects the fiscal of all utilities. All costs may be allocated on a health of a city; in fact, the lack of policies based per household basis for residential develop- on LCC has left many cities essentially bank- ments or normalized for standard office space. rupt and unable to manage assets. Part 2 includes details on how the LCC Operating and maintenance costs for long- method may be applied to Eco2 cities and in- lived elements such as buildings and pipelines formation on simple spreadsheet-based com- can represent over 90 percent of life-cycle puter tools that make LCC easy and rapid. The costs. The City of Hamilton, Canada, has esti- tools include a preset list of many life-cycle mated that initial construction accounts for cost categories that are worth considering in only 8 percent of a civic building’s cost over its development projects, but that are typically ig- 30–40 year life, whereas operation and main- nored. All the default values may be adjusted to tenance account for 92 percent. It is obviously match the historical costs for any specific coun- dangerous to place too much emphasis on ini- try and community. tial capital costs in making large public invest- Included in part 2 is an example of the help ments in city infrastructure and buildings. provided by an LCC tool to the City of Fort St. Nonetheless, it is still common worldwide for John, Canada, in assessing the potential costs cities to have separate capital and operating and benefits of a proposed concept plan for a budgets and to make investment decisions sustainable neighborhood. A design workshop based on the initial capital investment costs, had proposed smaller lots; narrower streets; without considering the net present value of more tightly packed buildings; greater diversity the future flows of the associated operating in building types; more open public space and maintenance costs. If, however, life-cycle between buildings; and more well integrated, costs are well quantified for a variety of devel- multiuse designs for open spaces (including opment scenarios, they may be minimized at greenways, green infrastructure for storm the design and implementation levels of land water management, community gardens, all use and infrastructure planning. season pathways, and a large commons around 90 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES a school and community center). The proposed a potential financial crisis onto future genera- design represented a significant departure tions. The inadequate capitalization of infra- from conventional neighborhoods in the city. It structure systems also unfairly shifts mainte- was thus necessary to move beyond debate and nance and replacement costs toward the end of opinion into a comprehensive analysis of costs a system’s life. Reserve funds make good eco- and benefits. nomic and ethical sense. Authorities in Fort St. John compared the The biggest challenge is to keep the reserve new approach with a base case scenario that fund truly reserved. The funds are subject to had been modeled on existing adjacent neigh- raids by those who see opportunities to spend borhoods. Capital costs were estimated and al- the funds elsewhere. Consequently, reserve located to each household. Operating costs funds must be earmarked and legally protected. were calculated, including the cost of water, A reserve fund is particularly necessary in roads, sewerage, school transit, recreation fa- non-revenue-generating projects. It is impor- cilities, and police and fire departments. In the tant to retain an appropriate amount in reserve final analysis, the LCC assessment helped clar- as determined by the overall investment plan. ify the potential gains of the new approach. Per A larger reserve is not necessarily better given household capital costs averaged US$35,000 that the fund is exposed to inflation risk. To re- less compared with the base case; annualized duce the amount of such a fund, similar assets operating cost savings were estimated at should be pooled, and as far as possible, the US$6,053, a reduction of more than 25 percent annual investment level should be maintained. relative to the base case. Of course, the sustain- How much is sufficient for the reserve fund? able neighborhood plan had potential benefits In the case of a reserve fund for educational fa- unrelated to capital and operating costs, in- cluding improvements in livability, streetscapes, social interaction, and amenities. However, the comprehensive financial analysis helped win Tokyo Waterworks: How to Finance a Water Pipeline over the community and provided the city Replacement Project council with a stronger argument for defend- Fees and charges are important to revenue-generating enterprises, such as ing changes in standard practices. All politi- water companies, in considering an appropriate level of reserve funding. cians find it easier to make the right decisions The Tokyo Waterworks, which serves 12.5 million people in metropolitan and to stand strong in the face of vested inter- Tokyo, has been financing operating expenses and capital expenditures by relying on water tariff revenues. Various reserve funds have been set aside ests or institutional inertia if they are provided to cover fluctuations in these costs. Currently, the utility is facing the with simple, transparent arguments about daunting task of replacing old water pipes beginning in 10 years time. The ways to save taxpayers money and reduce lia- total investment is estimated at around ¥1 trillion (US$10 billion), which bilities. This is an important function of LCC. represents 40 percent of the utility’s total assets of ¥2.5 trillion (US$25 bil- lion) in current yen. To meet this challenge, Tokyo Waterworks started Reserve funding identifying ways to level out the ¥1 trillion planned investment over a rea- sonable period by planning for maintenance and rehabilitation well ahead One of the most effective tools in sustainable of the project and establishing a detailed construction plan. Meanwhile, financing is the reserve fund. The aim of a the utility has already started accelerating debt repayments so that out- reserve fund is to set aside money incremen- standing debt may be maintained at the current level of ¥0.5 trillion even tally and gradually so that sufficient funds are after project financing has been undertaken. The accelerated repayments available to finance upgrades and replacement are being covered by water tariff revenues even though the Tokyo metro- at the end of a project’s life cycle. Such an politan government lowered the water tariff on January 1, 2005. The utility plans to finance the ¥1 trillion replacement project by implementing a rea- approach not only helps ensure the viability of sonable tariff adjustment. an investment and its various components, but also avoids the dumping of huge liabilities and THE FRAMEWORK | 91 effects into monetary values. Cost-effectiveness, the other standard method currently used to The Reserve Fund for School Facilities in assess the economic viability of a project, has Tokyo’s Chuo Ward also been expanded to include the examination Like many other administrative areas in Japan, Chuo Ward, one of the 23 of additional indirect benefits. Despite the wards of Tokyo’s metropolitan government, keeps a fund for the mainte- efforts toward fuller cost-benefit accounting, nance, rehabilitation, and replacement of school facilities. It sets aside most development projects are undertaken annually an amount close to the depreciation amount for the ward’s 16 elementary schools and 4 lower secondary schools. The fund may be used without a firm grounding on the real nature of only for the intended purposes unless the ward council decides otherwise. the impacts on people, ecologies, and social At the end of fiscal year 2009, the balance of the fund stood at around systems. Many of the indirect costs of concern ¥10 billion (US$100 million), which was sufficient for the construction of to communities cannot easily be measured or three school buildings. Chuo Ward plans to replace three school buildings explained, nor can they be easily converted in a few years under a long-term investment plan. into credible monetary values. The proper techniques for converting impacts into monetary values have been debated for many years, and cilities in Tokyo’s Chuo Ward, the fund covers appropriate solutions continue to be sought. the total investment cost that will be required A more comprehensive economic analysis in a few years. However, even if the fund does requires that greater attention be paid to envi- not cover the total required investment cost ronmental accounting as a separate rigorous entirely, it may be considered sufficient if Chuo method. Every project needs a standard proto- Ward is able to mobilize additional funds from col for assessing environmental effects by cat- other sources. Important sources of external egory on the basis of well-defined methods funds for cities are municipal bonds and bank such as input-output analysis, life-cycle analy- borrowings. To raise these external funds in a sis, and material flow analysis. One example of timely manner, cities should keep the terms an expanded approach to the quantification of and amounts of their debt within borrowing impacts is the environment load profile adopted capacity. They should also level the investment in Hammarby Sjöstad, Stockholm. (See part 2 requirement over long investment periods so for more on the environment load profile.) A that annual capital funding requirements are separate set of indicators may be used to minimized. The LCC method provides a useful express each category of effect in parallel with base for long-term investment planning. the economic analysis. The effects may some- times be added together to advantage; air qual- Equal attention to all capital assets: ity, for example, is commonly addressed in An expanded framework for accounting terms of an air quality index that bundles mul- A persistent challenge in accounting for the tiple factors such as the quantities of particles, cost of urban development projects is the mea- organic compounds, and nitrogen oxides. surement and valuation of the many indirect A number of techniques have been devel- costs and benefits. Economic analysis has oped in an attempt to evaluate a wider range of evolved over the past few years because of environmental and ecological effects so as to attempts to understand these indirect costs arrive at one or several overarching measure- and to provide decision makers with an assess- ments of natural capital. A notable example is ment that more accurately reflects the true the ecological footprint, which converts energy costs and benefits of any particular option. For and material use into the total area of produc- example, cost-benefit analysis, the primary tive land that would be required to sustain such method for assessing economic viability, has flows indefinitely. Officials and experts in many been expanded to incorporate many indirect cities and new neighborhood developments 92 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES “For too long now ministries of finance and planning have paid scant attention to the ex- ploitation of the natural resource base or the damaging effects of environmental pollution, while countries have been developing Na- tional Environmental Action Plans that read as if they were written by the environment ministry for the environment ministry, with no links to the economic ministries.” Source: World Bank (1997: 7). have appreciated the usefulness of a single rat- ing of this type and have calculated ecological footprints as an indicator of the overall impact on natural capital. For example, London has calculated that people in the city require, on average, 6.6 green hectares of land per person to support their lifestyles, which is more than three times the amount available per person on a planetary scale (figure 1.28). London discov- ered that its combined ecological footprint is 293 times the land area of the city, mostly as a consequence of the high rates of food and material consumption. All techniques for adding up or aggregat- Figure 1.28 Summary of Resource Flows through London, 2000 ing ecological impacts into a simple metric Source: Best Foot Forward Ltd. (2002). suffer from a number of significant problems Note: This summary for greater London reveals all inputs and outputs and helps explain why the (Mcmanus and Haughton 2006). For example, city’s ecological footprint is approximately 300 times the size of the city’s land. the ecological footprint fails to address well the important issue of water flows, which vary factors that relate to the quality of ecosystems, so much in value depending on location. A city the sensitivity of local environments to emis- that annexes agricultural land, thereby increas- sions and wastes, and the differences from ing its administrative boundary, suddenly place to place in the value of natural capital. appears much less of a burden on the planet, Despite these types of methodological prob- though the reverse may be true. Multifunction- lems, one should seek a method that allows a al land use—encouraged by Eco2—is ignored if quick summary of the range of impacts arising all land is divided into discrete categories for from any development scenario. The method ecological footprint analysis. By using a single should rely on standardized measurement pro- unit, such as hectare of ecological land, the tocols for comparability, as well as simple footprint ignores the major differences in eco- graphical tools, so that one may rapidly com- logical system values, including factors such as municate the basics to interdisciplinary teams biodiversity, species scarcity, and habitat of designers and decision makers. European uniqueness. In fact, all indicators that aggre- Cooperation in Science and Technology, a gate impacts tend to ignore the many local European intergovernmental framework pro- THE FRAMEWORK | 93 gram, has struggled with the challenge of a broad and balanced assessment is much more assessing environmental effects during a multi- important than might otherwise be the case. year effort to analyze and describe sustainable Eco2 requires a framework that is designed to infrastructure projects in cities throughout reveal not only who benefits and who pays spe- Europe. After reviewing all the options for cific costs, but also how well a project has max- assessing impacts, the program experts chose a imized benefits of all types. The framework simple matrix to summarize key effects (table must be transparent, allowing a mix of profes- 1.3). The final publication, Towards Sustainable sionals and residents to easily follow what is Urban infrastructure: Assessment, Tools and actually being measured, why it is being mea- Good Practice, describes 44 sustainable infra- sured, and how the numbers relate. The frame- structure projects and a matrix for each project work needs to combine categories of benefits (see Lahti 2006). The publication concludes and costs so that they may be tracked as a whole that a holistic assessment of sustainability with and so that indicators on ecological health, for many dimensions and numerous impacts re- example, may be given equal consideration quires a technique and tool capable of review- with indicators on economic wealth. Fortu- ing all relevant aspects in a compact space, that nately, many economists and communities have is, hopefully even in one page through a visu- been experimenting with frameworks over the ally effective presentation. last 10 years, and it is now possible to learn from Eco2 cities need a framework for evaluating best practice and adopt a framework for ac- the costs of projects that is sufficiently flexible counting that is suitable for Eco2 cities. to accommodate a wide range of measurements and, yet, is sufficiently balanced to ensure that Protection and enhancement of capital assets the trade-offs and impacts on critical thresh- An appropriate method for use with Eco2 cities olds and targets are well understood. The em- is the four-capitals approach outlined by Ekins, phasis on integration at many levels means that Dresner, and Dahlström (2008). The method Table 1.3 A Design Assessment Matrix ECOLOGY ECONOMY SOCIAL ASPECTS Are emissions to air, water, and Are the cost-effectiveness and Have the planning and decision soil within the restrictions set cost-benefits of the system making for the infrasystem been locally and internationally? reasonable compared with other carried out in a democratic and Are emissions decreasing? systems? Are they reasonable participatory manner? compared with other needs in the city and to political goals? Is the use of natural resources Are citizens willing to pay for Are the function and reasonable relative to other, the services offered? Are the consequences of the system comparable systems? Is the services affordable for all transparent for and accepted use decreasing (for example, citizens? by citizens? Is the system fossil fuels, water, phosphorus, promoting responsible or potassium)? behavior by citizens? Is the system allowing a Are the organizations that Is the system safe for citizens reasonable level of finance, maintain, and operate to use (hazards, health, and biodiversity for the area the system effective? well-being)? studied? Is the biodiversity increasing? Is the system more or less Is the system more or less Is the system more or less ecologically sustainable than economically sustainable than a socially sustainable than a a conventional system? conventional system? conventional system? Source: Based on Lahti (2006). Note: The matrix presented in the figure has been used in many case studies of sustainable infrastructure in Europe. It is intended to provide decision makers with instant and reliable insight into the sustainability of any design option. The arrows indicate performance in a sample project. 94 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES has evolved by combining a new approach to the social networks that support an effi- environmental economics, developed by David cient, cohesive society and that facilitate Pearce (2006), with a number of assessment social and intellectual interactions among tools that have been used in urban development. society’s members. Social capital refers to It is sufficiently flexible to include any type of those stocks of social trust, norms, and net- measurement, and yet, it is well balanced. It works that people may draw upon to solve has been successfully applied in a number of common problems and create social cohe- sustainable planning projects in Europe. sion. Examples of social capital include Most economic analysis incorporates an neighborhood associations, civic organiza- inventory and valuation of capital assets; how- tions, and cooperatives. The political and ever, the focus is primarily on manufactured legal structures that promote political sta- goods and systems that produce or facilitate bility, democracy, government efficiency, the delivery of goods and services. This kind of and social justice (all of which are good for capital is referred to as manufactured capital productivity, as well as desirable in them- and includes the hard infrastructure of cities. selves) are also part of social capital. The four capitals method begins by recog- 4. Human (cultural) capital generally refers nizing that benefits may flow from many to the health, well-being, and productive sources other than manufactured capital. We potential of individual people. Types of hu- need to account for the quality of labor (hu- man capital include mental and physical man capital), the networks through which la- health, education, motivation, and work bor is organized and that create the context skills. These elements not only contribute to for economic activity (social capital), and the a happy, healthy society, but also improve natural resources and ecological systems that the opportunities for economic develop- provide inputs into the economic process and ment through a productive workforce. maintain life on Earth (natural capital). A more detailed definition of these four capitals All four types of capital are defined and identi- is provided by Ekins and Medhurst (2003): fied through the flow of the benefits they pro- vide. Sustainable development mostly revolves 1. Manufactured (or human-made) capital around the maintenance or increase of the four is traditional capital, that is, produced as- capitals so that the flow of benefits is sustained sets that are used to produce other goods indefinitely. Some trade-offs may be consid- and services. Examples are machines, tools, ered acceptable; for example, a reduction in buildings, and infrastructure. the net area of ecological systems may be offset 2. Natural capital includes, in addition to tradi- by increases in the net productivity of ecolo- tional natural resources (such as timber, gies resulting from good design and manage- water, energy, and mineral reserves), natural ment practices. However, many systems (such assets that are not easily valued monetarily, as ecologies) and assets require that critical such as biodiversity, endangered species, and thresholds be respected or the system will be- the ecological services provided by healthy gin to break down. For example, smaller green ecosystems (for example, air and water filtra- spaces may be more productive, but they may tion). Natural capital may be considered as fail to provide sufficient habitat for some spe- components of nature that may be linked cies, and as a result, biodiversity declines. directly or indirectly to human welfare. The four capitals method is a good choice for Eco2 cities for the following reasons: 3. Social capital, like human capital, is relat- ed to human well-being, but on a societal, 1. It incorporates critical intangible assets rather than individual, level. It consists of into the decision-making framework. THE FRAMEWORK | 95 2. It considers externalities (indirect costs and services that ultimately contribute to and benefits) in a more comprehensive human well-being. fashion than other options now available. Use of indicators to set targets and 3. It allows for easy comparisons of different monitor impacts categories of costs and benefits and allows Monitoring the capital assets of a city and bal- cities to focus on critical thresholds (for ancing the trade-offs among types of capital re- example, limits that should not be crossed) quire standardized measurements or indicators and to recognize the trade-offs that fre- that correspond to the capacity of assets to pro- quently arise between one type of asset vide goods and services. Indicators that cover and another. all four capitals are referred to as indicators of 4. It fits well into the economic accounting sustainable development. They include mone- already in place in many cities because it tary values, when these are available and appro- uses an inventory of capital assets, and it priate, and also many physical dimensions. makes use of much of the data that are al- Table 1.4 provides an example of a few of ready collected by cities on a regular basis. the indicators used by various cities partici- pating in a European project for sustainable 5. It reinforces the important concept that as- development planning. Based on the European sets need to be conserved and enhanced experience, the quality of indicators tends to because they provide the flows of goods vary by capital. Manufactured capital tends to Table 1.4 Sample Indicators in the Four-Capitals Approach Manufactured capital • GDP per capita • Travel times and average speeds • Gross fixed capital formation • % population connected to internet • Employment (by sector) • Agricultural produce • Change in real income • Inflation rate Natural capital • CO2 emissions • Quantity of collected waste • Air quality • Green areas (km2) • Stocks of endangered species • Energy use per capita • Value per drop of water • Resource efficiency Social capital • Wage differentials and poverty • Districts with special development needs • Disparity between income of average, • Out migration of young people highest and lowest deciles • Number of cooperative, inter-municipal • Male/female wage differentials projects and strategies • Number of social welfare recipients • Crime rates Human capital • Employment growth and rates • Numbers of patent applications • Creation of new high skill jobs • Number of business start-ups • Levels of education and vocational training • Improvement in human health • Public and private R&D expenditures • Participation rate in education and training Source: GHK (2002). Note: The sample indicators were used in 19 urban regions in Europe as part of a sustainable development assessment. CO2=carbon dioxide; km2- square kilometer; R&D=research and development. 96 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES be oversimplified because of the use of only GDP measurements. Social capital, however, What Makes a Good Indicator? is measured using too many different indica- Affordability and practicality: Can the data be collected easily at little tors. Human capital is difficult to measure di- or no cost? Is the analysis simple and easily automated? rectly. Natural capital indictors are often dif- Relevancy: Do the indicators actually measure the key issues of concern? ficult to calculate. Do they respond sufficiently to show that progress is being achieved? The precise choice of indicators for a city and Clear explanations and measurement protocols: Is it easy to define a specific project will vary with circumstances. what is actually being measured and how? In general, indicators need to be affordable so Comparability: Is this a standard measurement from which other mea- that they may be measured on a regular basis. surements may be derived to provide comparisons and benchmarks of Otherwise, what is the point? They also need to performance? be relevant; so, they need to measure the larger Aligned with objectives: Is the effort to measure appropriate given the changes that cities are trying to effect. The rele- priorities established in the planning framework? vance varies depending on who is going to be us- ing the indicator. For a city council and its city partners, performance indicators are required that help clarify the intended long-term results or performance. A common performance indi- cator for manufactured capital is GDP per per- son; another might be the asset value of city- owned infrastructure. The other capitals tend to be more difficult to capture. In the case of natu- ral capital, performance indicators need to ad- dress at least the different types of ecological services: sinks (capacity to absorb wastes), sources (capacity to provide useful products and services), and life support (capacity to cycle re- sources and regulate environments so they sup- port life). In addition to broad performance indi- cators that measure how well key targets or goals are being achieved, it is helpful to develop a set of Figure 1.29 Targeted Indicator Type, by Level of City Personnel indicators for monitoring progress at the strate- Source: Lahti (2006). gic level and at the operations level. Figure 1.29 illustrates how three different • Operational: average time required to re- levels of indicators correspond to the scope and pair outages responsibility of city personnel. As scope nar- rows, so, too, does the indicator. For example, a Each project may require a family of indica- new distributed electricity system for a city tors because decision makers will be interested might need feedback at three levels of detail: in different time frames and levels of detail. • Performance: percentage of residents in the Proactive risk management for all threats service territory receiving power from the Standard practice in financial risk manage- new system ment involves an analysis of any investment in • Strategic: percentage of buildings retrofit- terms of sensitivity to changes in the key fac- ted according to new energy efficiency tors used for determining costs and benefits. standards Each factor has a certain probability of changing THE FRAMEWORK | 97 over time, with consequences for the financial resources such as water, food, and fossil fuels bottom line. This assessment of risk based on will likely be problematic. For a city, 30 years is the known probabilities for change in the direct the blink of an eye. The infrastructure invest- economic factors is referred to as sensitivity ments planned for the near future will need to analysis. It is the principal risk-assessment perform for much longer than 30 years. But will method used in urban development projects, they? How might Eco2 cities assess and improve and it is an important and necessary part of due the overall resiliency of development projects? diligence. If a 15 percent drop in ridership is sufficient to undermine the financial viability Expansion of risk assessment to include of a new transit system, city leaders will want resiliency and adaptive capacity to know the odds of such an occurrence. Sensi- Resiliency is a concept traditionally used to tivity analysis is not a replacement for good describe two characteristics: the robustness of judgment, but it is a good way to educate deci- a system (that is, its ability to continue to per- sion makers about the variables that might un- form by resisting changing conditions), and the dermine the critical viability of an investment. adaptability of a system, (that is, its ability to The other well-known method for risk assess- continue to perform by responding appropri- ment is the Monte Carlo assessment, which ately to changing conditions). Resiliency may expands the analysis to include the possible be used as a potential design criterion for all correlations between changing variables es- urban systems, including built infrastructure, sentially by making many random changes to culture, and governance. variables in combination. The basic idea is that it is possible to man- What is missing from these standard risk- age risk more productively by forecasting the assessment methods is the many indirect, diffi- impacts of external forces on urban areas and cult-to-measure risks that threaten the viability by designing and operating urban land uses of an investment. Also missing is the assessment and infrastructure in ways that are inherently of uncertainties, the factors that cannot be as- more resilient. This means including in any sessed statistically, but that represent significant assessment indicators that help designers, threats. In a similar fashion to economic analy- managers, and decision makers understand the sis, the risk assessment needs to be coupled with relative capacity of systems to survive and re- methods that expand the scope of the issues or cover from shocks and rapid change. The World elements examined and rated. In reality, cities Bank’s primer on climate resilient cities pro- today face many threats and hazards that are vides information on how cities may effectively largely external to financial calculations, but that assess and manage the risks associated with cli- may nonetheless influence the viability of proj- mate change (see Prasad and others 2009). ects. These include sudden disruptions to sys- Elements of resilient design appear to rein- tems, such as natural disasters (earthquakes, force a number of the ecological design strate- hurricanes, tsunamis, and so on), and the possi- gies that are so effective at improving efficiency. bility of rapid socioeconomic-environmental Remote generating plants, incinerators, treat- change, such as the recent global financial crisis. ment plants, and communications facilities are Over the next 30 years, for example, it is highly far more vulnerable to catastrophic failure than likely that we will witness fundamental changes a network of modular, distributed systems in energy, communication, transportation tech- closely integrated into the fabric of the city. nologies, climate, demographics, global markets, Thus, urban security helps reinforce distribut- and environmental regulations. The onset of epi- ed systems, a design strategy already proposed demics is probable, and the availability of critical as a way to improve urban resource efficiency 98 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES and environmental sustainability. The positive tems, for example, this may mean a mix of synergy between security and efficiency (or sources, some local and some renewable. For resiliency and sustainability) is an important potable water, this may mean distributed res- outcome of integrated design solutions. ervoirs and multiple sources of water. One measurement of resiliency might be Localized and distributed infrastructure redundancy, a strategy that is an example of eco- systems may be more flexible and responsive logical design (see chapter 5). Redundancy in in the face of external threats. To the extent urban systems may mean that critical resources that systems are self-organizing, they do not are supplied by a variety of systems, each capa- require lots of external regulation or direction ble of drawing resources from as wide a geo- to function or adapt to opportunities or con- graphic area as possible. In the eventuality that straints. Such systems may operate by a set of droughts, floods, or other disasters affect any rules, similar to those in the market place, one area, an alternative source of supply is al- rather than a mechanistic, top-down approach ready in place to meet at least minimum re- that imposes a final solution from start to quirements. For each type of critical resource, finish. the region may develop redundancy through a diversity of supply options or through a contin- Adaptability and durability gency plan. Redundancy may also need to in- Adaptability may be broken down into a num- clude the entire supply chain for each critical ber of simple strategies that are familiar to system, all the way back to the ecological re- most engineers and designers: source. Redundancy may then be provided for • Flexibility, or enabling minor shifts in the the weakest links in the chain. Links are the pro- way systems function or spaces are used cesses or nodes that provide essential services, • Convertibility, or allowing for changes in wherever they may be located. If we discover use for parcels of land or buildings or chang- nodes that are essential, but not duplicated else- es in inputs for infrastructure systems where in the system, we have found a weak link. Redundancy and self-reliance work on dif- • Expandability, or facilitating additions (or ferent levels. Even links within a region may deletions) to the quantity of land or space benefit from contingencies. For energy sys- dedicated to particular uses Figure 1.30 An Inflexible Energy System Figure 1.31 An Adaptable Energy System Source: Author elaboration (Sebastian Moffatt). Source: Author elaboration (Sebastian Moffatt). Note: This coal-fired energy system is brittle because it cannot adapt, expand, or convert. Note: This system is resilient because it is more adaptable by design. THE FRAMEWORK | 99 Infrastructure that is designed to adapt easily targets requires a means of measuring perfor- at low cost is likely to survive longer and to op- mance easily and affordably. The choice of per- erate more efficiently throughout its lifetime formance indicators should be based on best (figures 1.30 and 1.31). An example might be practices in other locations and on analytical combined trenching (utilidors) that allows methods used for system design (such as mate- easy access to pipes and wires. rial flow analysis). Measurements have value Durability is a concept that may extend the only if a basis exists for comparison; so, it helps useful lifetime of materials and technology; it greatly to use well-established indicators based is complementary to adaptability. In practice, on standardized data collection and calcula- adaptability and durability may be achieved tions. Ideally, the targets for performance are through changes in design and the use of set only after a review of precedents and case alternative zoning, materials, and technolo- studies, including the experiences of sister cit- gies. For good performance, adaptable designs ies and best practice cities. might begin with the concept of a fixed After project completion, it is important to investment cost. The object is then to achieve integrate the monitoring program into regular maximum durability by means of flexibility reporting, staff evaluations, and management and adaptable design features, while, at the philosophy. If monitoring is used to guide con- same time, minimizing the running costs for tinuous learning and improvement, it is re- energy, cleaning, maintenance, and operation. ferred to as adaptive management. Adaptive Part of a durable design strategy might management originated with fisheries and for- involve setting minimums; for example, no estry biologists who discovered that natural secondary components may last less than ecosystems are so complex and interconnected 30 years. In other cases, the solution may be that all management efforts fail. It became nec- to minimize the maintenance and service essary to assume things would not work and, costs for components. therefore, to plan for failures. As urban envi- ronments become more complex and as we Monitoring of performance, learning based consider a broader range of goals for environ- on results, adaptation and improvement mental, social, and economic sustainability, it of the system helps to adopt the adaptive management solu- An integrated approach to monitoring has tion discovered by ecologists. two dimensions: first, it considers perfor- From this perspective, all policy and prac- mance objectives from the beginning of proj- tice are considered experimental and have last- ect design and uses these targets as a basis for ing value only if they are proven over time. comparing actual performance against in- Policy may become a problem if it cannot be tended results; second, it involves integrating easily adjusted to accommodate new knowl- monitoring into a feedback and accountability edge. If monitoring programs are integrated process that ensures adjustments in policy into an adaptive management process, the Eco2 and systems to achieve or exceed the intended long-term planning framework must be in- results. Both of these dimensions need to be cluded. The framework provides a transparent addressed in each project. context for target setting and evaluation. On Establishing performance targets at the the one hand, the framework keeps the targets commencement of a design project may be a connected to end-state goals, and on the other positive experience that helps focus and in- hand, the framework connects the targets to spire the project design team. The selection of project strategies and actions. 100 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Stepping Stones for Investing in Implement an Eco2 catalyst project so as to Sustainability and Resiliency protect and enhance capital assets and reduce vulnerabilities Use the LCC method to understand The best way to understand the accounting costs and cash flows methods in practice is to use them in a catalyst An Eco2 catalyst project represents an oppor- project. This will require a multicriteria as- tunity to make LCC a standard part of project sessment of projects using the methods and planning. Every city may develop this capacity. tools described in part 2. Generally, a base case (Suitable methods and tools are introduced in scenario should be developed using business- part 2.) as-usual assumptions, and then this base case should be applied as a benchmark for the eval- Develop and adopt indicators to assess uation of any alternatives that have been pro- the four capitals and to benchmark posed during project design exercises. Eventu- performance ally, the accounting methods should provide a Indicators may be selected from lists provided sound basis for making recommendations on a by knowledge institutions and industry coali- preferred investment strategy. tions. A good place to start is the long list of sustainable development indicators used by Monitor results, provide feedback, learn, cities in the countries of the Organisation for and adapt to improve performance Economic Co-operation and Development Monitoring requires indicators adapted to the (OECD) or by progressive cities in developing city, the project, and the budget. It is most im- countries. The choices need to be guided by portant that indicators be reported over time. the selection criteria listed elsewhere above. There must be a budget allocation for data An indicator is not successful unless it is regu- collection, analysis, and publication. The col- larly measured and reported. lection of measurements over time adds strength to the process of urban development. Forecast the impacts of plausible changes The feedback on key indicators makes it easy Forecast the impacts of plausible changes in to see trends and patterns, educate decision climate, markets, resource availability, demo- makers on the performance of the city, pro- graphics, and technology. Forecasting the vide benchmarks, set targets for upgrading impact of external forces helps to begin the future projects, and provide a solid basis for process of proactively incorporating resiliency employee and contractor accountability. The and adaptive capacity into the management of key to evaluation and learning is consistency risks. Foresight workshops may assist in clari- and perseverance. fying the various chains of cause and effect that lead to significant impacts on urban infrastruc- ture systems and the city. Some of the external Note forces that may be examined through such 1. In some applications, the LCC method also workshops, in addition to climate change, attempts to include the embodied or upstream costs that are associated with the use of construc- include changes in global markets, resource tion materials such as the energy inputs and availability, demographics, and technology. emissions that result from the extraction, (These are discussed in part 2.) The World processing, fabrication, and transport of these Bank’s primer for cities on climate change is a materials. However, in most projects, this information is not examined in the applied good starting point for understanding climate- methodology because the data are difficult to related risks (see Prasad and others 2009). collect and the impacts tend to be most relevant to procurement policy rather than design concepts. THE FRAMEWORK | 101 References Lahti, Pekka, ed. 2006. Towards Sustainable Urban Infrastructure: Assessment, Tools and Good Best Foot Forward Ltd. 2002. “City Limits: A Practice. Helsinki: European Science Foundation. Resource Flow and Ecological Footprint Analysis Mcmanus, Phil, and Graham Haughton. 2006. of Greater London.” Chartered Institution of “Planning with Ecological Footprints: A Sympa- Wastes Management (Environmental Body), thetic Critique of Theory and Practice.” Environ- Northampton, U.K. http://www.citylimitslondon. ment and Urbanization 18 (1): 113–27. com/downloads/Complete%20report.pdf. Pearce, David. 2006. “Is the Construction Sector Ekins, Paul, Simon Dresner, and Kristina Dahlström. Sustainable? Definitions and Reflections.” 2008. “The Four-Capital Method of Sustainable Building Research & Information 34 (3): 201–7. Development Evaluation.” European Environment Prasad, Neeraj, Federica Ranghieri, Fatima Shah, Zoe 18 (2): 63–80. Trohanis, Earl Kessler, and Ravi Sinha. 2009. Ekins, Paul, and James Medhurst. 2003. “Evaluating Climate Resilient Cities: A Primer on Reducing the Contribution of the European Structural Vulnerabilities to Disasters. Washington, DC: Funds to Sustainable Development: Methodology, World Bank. Indicators and Results.” Paper presented at the World Bank. 1997. Expanding the Measures of Wealth: “Fifth European Conference on Evaluation of Indicators of Environmentally Sustainable Structural Funds,” Budapest, June 26–27. Development. Environmentally Sustainable GHK. 2002. “Annexes to Volume 1: Synthesis Report.” Development Studies and Monographs Series 17. In The Thematic Evaluation on the Contribution of Washington, DC: World Bank. Structural Funds to Sustainable Development. Brussels: European Commission. http://ec.europa. eu/regional_policy/sources/docgener/evaluation/ doc/sustainable_annexes_rev1.pdf. 102 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 7 Moving Forward Together The Eco2 Cities Initiative is a collaborative exercise that requires close working relationships among all stakeholders and a willingness to consider and apply new concepts and methods together. Of course, cities are in the driver’s seat. This book is designed to explain the key principles of Eco2—how they translate into core elements and stepping stones—and to introduce cities to some of the methods and tools that will enable them to develop their own Eco2 pathways. The opportunities for positive change are great at this time. We strongly encourage cities to take the first step toward ecological and eco- nomic sustainability, while the window of opportunity to achieve lasting impact is still open. For forward-looking cities in developing countries that intend to adopt the Eco2 approach, sup- port may be available from best practice cities worldwide; the international community, including donor agencies; and academia. Cities are encouraged to tap the unique resources of each of these partners. In this context, the World Bank Group, together with other development partners, is in a position to provide technical assistance, capacity-building support, and financial support to cities that demonstrate a strong commitment to the implementation of the Eco2 initiative. Knowledge Sharing, Technical community has a wide range of programs that Assistance, and Capacity Building provide technical assistance and capacity build- ing. Academic institutions may become engaged One of the most effective methods of knowl- in the process, as in the case of the environment edge sharing, technical assistance, and capacity load profile tool that has been used by the City of building is peer-to-peer engagement with best Stockholm and that was jointly developed by practice cities. It is conceivable that such Stockholm, the Royal Institute of Technology, engagement might be supported through donor and Grontmij AB (a private consultancy firm). funding. At the same time, the international Other options for technical assistance include THE FRAMEWORK | 103 the World Bank Group’s technical assistance increasing and that it is possible to combine and capacity-building support, which may be instruments to fit the dimensions or phases of available to cities through a project or through a project. We consider the case of the World stand-alone funding.1 Bank. Technical assistance and capacity building In most cases, cities seeking financial sup- can provide support to cities on many stepping port from the World Bank Group need to submit stones of the Eco2 pathway. They may also help requests through their respective national gov- through more detailed applications of the core ernments to ensure that the provision of limited methods and tools. Some examples of possible loans, credits, or grants is consistent with na- support include (1) adapting Eco2 to suit a city’s tional priorities and strategies.2 The World Bank unique demands and priorities; (2) conducting Group has diversified financial tools that may be diagnostic analysis using the Eco2 methods and used in combination to finance Eco2 projects. tools; (3) developing Eco2 pathways and plans The tools are listed below, along with other do- (including investment and financial plans to nor financial instruments. Unlike a conventional realize the vision and strategies); (4) enhanc- one-project financial instrument approach, the ing institutional capacities to implement Eco2 World Bank Group may package these instru- projects, with particular attention given to the ments to facilitate an integrated approach that is key principles; (5) equipping local institutions critical to the success of the Eco2 initiative and with the technical requirements (a GIS [geo- specific investment projects. graphic information system], for instance) to 1. Development policy loans provide quick, use Eco2 methods and tools; (6) designing a disbursable financing to support policy national strategy to institutionalize the Eco2 and institutional reforms at national and initiative through a national financing mecha- subnational government levels. nism; (7) implementing an integrated design workshop or a forecasting workshop; and 2. Specific investment loans finance a broad (8) focused study tours or secondment oppor- range of specific infrastructure invest- tunities in Eco2 best practice cities. ments (water supply, wastewater manage- ment, power generation and distribution, Ultimately, knowledge sharing, technical solid waste management, roads, public assistance, and capacity-building agendas will be based on the specific needs of each city. transportation, and so on). 3. If policy and regulatory reform leads to a significant reduction of greenhouse gas Financial Resources emissions in specific components based on the Clean Development Mechanism meth- In general, cities may access a range of finan- odology or if direct investments accom- cial resources available from the international plish the same (for instance, through solid community and donor agencies. Many of these waste management), then the World Bank’s financial resources may be used to fund techni- Carbon Finance Unit may enable the pur- cal assistance. Larger donor agencies such as chase of emission reductions. This may in- international financial institutions and multi- crease the bankability of projects by adding lateral development banks (the Asian Develop- an additional hard revenue stream. ment Bank, the World Bank, and so on) may 4. The International Finance Corporation, also provide financial resources for infrastruc- also part of the World Bank Group, is able ture investment through projects. From an to finance corresponding private sector in- Eco2 perspective, it is most important that the vestments (for instance, energy-efficient number and diversity of financing tools are buildings or technologies). 104 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES 5. The Global Environment Facility is a global may enable an integrated approach to the partnership that provides grants to address sequenced implementation of a city’s Eco2- global environmental issues in projects in related financing needs. Of course, all these in- six focal areas: biodiversity, climate change, struments are not required in every case. international waters, land degradation, the Figure 1.32 provides a sample of how instru- ozone layer, and persistent organic pollut- ments might be mixed. The World Bank Group ants. An Eco2 project may qualify for a may also help national governments and Eco2 Global Environment Facility grant if it fo- cities mobilize cofinancing resources from cuses on one or more of these areas. other donors, as indicated on the far right of 6. Climate Investment Funds, which provide the figure. (The features of these financial concessional financing, may be made avail- instruments are explained in part 3.) able if projects contribute to the demonstra- Financial resources are important. They en- tion, deployment, and transfer of low car- able many of the initiatives discussed in this bon technologies, with significant potential book. However, the reader should keep in mind for long-term greenhouse gas savings. that some of the most remarkable innovations and approaches profiled here have been imple- 7. By insuring investments against political mented without the luxury of these complex risks, the World Bank’s Multilateral Invest- external financial resources. The true test of ment Guarantee Agency may help certain the Eco2 Cities Initiative will not be its ability developing countries attract private invest- to link cities with financing, but to facilitate a ment. process whereby cities may adapt and apply By integrating, sequencing, and linking the four Eco2 principles to unlock their own these financial instruments, the World Bank full potential. Figure 1.32 Financial Instruments Source: Author compilation. Note: The World Bank Group’s financial instruments and the instruments of multidonor facilities administered by the World Bank may be packaged and sequenced to support a more well integrated approach to the financing of Eco2 projects. CTF=Clean Technology Fund; DPL=Development Policy Lending; GEF=Global Environment Facility; IFC=International Finance Corporation; MIGA=Multilateral Investment Guarantee Agency; SCF=Strategic Climate Fund; SIL=Specific Investment Loan. THE FRAMEWORK | 105 Notes 1. The World Bank Group consists of five institu- 2. International Bank for Reconstruction and tions: the International Bank for Reconstruction Development loans and International Develop- and Development (IBRD), the International ment Association credit must also be covered Development Association (IDA), the International by sovereign guarantees. Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). 106 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES PART 2 A City-Based Decision Support System Methods and Tools for Eco2 Cities ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES P art 2 is aimed at everyone who wishes to The methods support the typical planning become familiar with the core methods process at different times and in different ways. that, together, provide cities with a deci- Some methods may be used repeatedly. For sion support system. It explains the role of example, the meta diagrams that summarize these methods in assisting cities in implement- resource flows may be used initially to provide ing more strategic and long-term management a base line for how a location is currently per- and decision making. The decision support forming and, later, to help in diagnosing, target system is part of a city-based approach because setting, scenario development, and cost assess- it enables cities to develop their capacity to ment. render operational the core elements of the All the methods represent proven approaches Eco2 initiative. Even if one does not expect to able to accomplish the task. They are expected work with the methods directly, understand- to remain relevant for many years. The funda- ing what they accomplish adds to one’s under- mental purpose of the methods is to simplify standing of the overall framework. the process of analysis, assessment, and deci- Each chapter deals with a different category sion making. They provide practical ways of the methods and tools. Chapter 8, titled for cities to take leadership, collaborate, and “Methods for Collaborative Design and Deci- analyze and assess various ideas for the Eco2 sion Making,” is an overview of the operational projects of the cities. and process methods that help cities undertake Wherever possible, the methods are accom- leadership and collaboration. Chapter 9, titled panied by tools. The tools are instruments such “Methods for Analyzing Flows and Forms,” as templates, checklists, diagrams, maps, and provides an overview of the most practical ana- specialized software applications, that is, any- lytical methods. The combination of analytical thing that is convenient to use and helps to methods helps cities to develop the transdisci- effectively and quickly render a method opera- plinary platform described in part 1 by reveal- tional. The tools referenced here are examples ing the important relationships between the and are indicative of some of the practical spatial attributes of cities (forms) and the phys- options available to cities. ical resource consumption and emissions of Part 2 is a good place to begin if cities are cities (flows). Chapter 10, titled “Methods for planning a process of capacity building with Investment Planning Assessment,” is an over- the methods and tools to achieve urban sus- view of accounting methods; it includes details tainability. It is mainly an introduction to the on ways to apply life-cycle costing and proac- issues, and many cities may wish to follow tive risk mitigation and adaptation. through in more detail on suitable methods, obtain more information, acquire specific tools, 108 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES deepen and broaden their capacity, and apply 4. Modular: experience with the use of tools the new methods through catalyst projects. for city planning suggests that it is a mistake Capacity-building plans are usually devel- to adopt models and tools that are overly oped in stages, beginning with the most simple general and all-inclusive in purpose (Lee tools and applications. The benefits are sub- 1973). Models work best if they are limited to stantial. For example, sophisticated computer specific tasks and sufficiently flexible to be printouts are not necessarily more effective applied on their own or in combination with than maps drawn on transparencies by individ- other tools. A modular approach based on uals with extensive ground knowledge (com- strong theoretical foundations, but allowing munity mapping). Sometimes, computers and for changes in key assumptions, may be more fancy presentations may actually get in the way. easily adapted to the complexities of the real All capacity-building plans should focus on world and to changing user needs. tools that may accommodate varying levels of Acquiring capacity in particular methods data and skill and allow for the capacity to and tools may appear challenging. Training evolve over time. Tools with the following seminars and user-friendly software may make characteristics may assist in this evolution: the process more manageable. Despite the 1. Transparent: analytical tools must be easy challenges, however, most cities in developing to understand and adjust, so that even be- countries will need to adopt new methods and ginners may follow the rationale and the invest in capacity building. Problems in cities flow of information. Complex black box in the developing countries are often more computer models are inappropriate. complex and demanding than those faced by wealthier cities in developed countries, and, 2. Scalable: tools easily adapt to the level of thus, the need for effective decision support effort warranted by the project and to the systems is greater. The investment will yield level of knowledge and skill of the user. As compounded benefits. conditions change, the same tool should accommodate a larger scope or more pre- cise inputs. Reference 3. Web-friendly: by designing most tools so they may take full advantage of the Internet, Lee, Douglass B., Jr. 1973. “Requiem for Large-Scale one may more easily train people, update Models.” Journal of the American Institute of Planners 39 (3): 163–78. tools, share results, interchange data and results, and use the tools to enhance stake- holder and public participation. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 109 CHAPTER 8 Methods for Collaborative Design and Decision Making Organizing and Managing It also helps to have a common vision of the de- Collaborative Working Groups sired long-term outcomes. One key rule is that, wherever agreement on Adopting basic rules for collaboration strategies is reached within the collaboration, Collaboration is a method by which diverse all the members must use their unique mandate groups join together for a common purpose and resource base in a more or less coordinated without necessarily altering their mandates, fashion to contribute to the agreed strategy. relinquishing their authority, or sharing their budgets. Power structures are retained. In fact, Balancing the membership and structuring the reason collaboration works is that nobody inputs of varying levels of authority is forced to give away power. What changes is Ideally, a collaborative working group is com- that information flows are greatly enhanced, posed of a balance of sectors: the government, and the potential is greater for joint action the private sector, civil society, and academia (figure 2.1). Collaboration is especially effec- (knowledge institutes). A balanced member- tive in the integrated design of urban areas be- ship means that a collaborative working group cause so many different parties may influence needs to be carefully constructed to include a the results. Any particular system may be sig- full range of perspectives: short-term and long- nificantly affected by land use policies, private term, private and public. A convenient approach development projects, on-site systems, de- is to establish roughly proportional represen- mand-side management programs, efficiency tation from various sectors: the government, standards, the use of shared rights-of-way, and the private sector, civil society, and academia. so on. Collaborative committees begin by Each sector contributes different priorities agreeing to a simple set of rules or principles. and perspectives that help create balance. For A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 111 Advisory Regulatory Advisory Group Regulatory Group Consultative Free Market Consultative Group Group Free F M k t Market Collaborative Collaborative Group definite Decision-maker Decision Maker Stakeholder Stakeholder Information Information Flow Flow indefinite Figure 2.1 The Collaborative Model Source: Author elaboration (Sebastian Moffatt). Note: A collaborative model replaces hierarchical structures and increases the potential for exchange and cooperation. example, if the government sector is often the the scope to affect cities. These may be national, most well informed, it is usually the least will- state, municipal, or district. At each level, there ing to take risks. Civil sector groups, if well may be additional regulatory, infrastructure de- represented, may help provide the motivation velopment, and service delivery agencies re- and vision to keep everyone from seeing only sponsible for land, water, energy, transporta- problems and barriers. Input from the aca- tion, and waste management. Some of these demic and knowledge sector may be especial- agencies may participate in public-private part- ly useful in expanding the scope of discussions nerships, and this requires the involvement of and, at later stages, incorporating high-quality networks. Neighboring jurisdictions are also research and expertise into design exercises potential stakeholders. Collaborating with ad- and planning proposals. The precise mix of jacent cities and regions may result in strong stakeholders from each sector must be care- synergies in such areas as integrated planning fully considered because each city will be for the reuse of waste materials, the coordina- characterized by different political relation- tion of transportation and land development, ships and institutional structures. The com- and cooperative economic development. position should also vary to reflect the scope The private sector and households are key of the planning and the projects under con- players in energy and resource use, as well as in sideration. creating local pollution and global greenhouse In the public sector, the stakeholders may gas emissions, and they need to be considered include all the agencies and departments with in the Eco2 process. A recent report on sustain- 112 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Advisors & Champions C A A C Stakeholders C T T C A T T A Core Team B B C T C T L L B B Leaders L L B B T C T A B B T T A C T T C T T A A C C A A Figure 2.2 The Collaborative Working Group Source: Author elaboration (Sebastian Moffatt). Note: The makeup of a collaborative working group should seek to balance input from government with equal measures of leadership and expertise from the private, civil, and knowledge sectors. able urban infrastructure in London strongly all outcomes that directly and tangibly improve reflects this view: conditions among the poor. At the same time, the fiscal gains achieved by the utilities or a city As this report makes clear, many different stakeholders are involved in making sustain- may be applied to benefit the poorer sections of ability-related decisions. Success will require society. For example, the congestion tax in cooperation, rather than dictation from any London not only reduced traffic by 21 percent one of these. Certain things can take place at (70,000 fewer cars per day) and increased the the national and municipal government levels, use of buses and bicycles in the zone, but also but the most powerful actors in all of this are raised £137 million during fiscal year 2007, of consumers [including households and busi- which a large portion is being reinvested to im- nesses—Ed.], who may through their purchas- prove public transportation. ing decisions bring about 70% of all possible Collaborative committees function well if CO2 abatement. Absolutely crucial to lowering they have a strong champion, a hard-working emissions, therefore, will be removing the bar- secretariat, and a balanced membership. Fig- riers to them doing so. (EIU 2008: 64–65) ure 2.2 presents an example of how a citywide The urban poor are also stakeholders in the city. collaborative might be organized. A single all- Good urban planning creates more access for policy working group provides a new institu- public and nonmotorized transportation and tional structure for collaboration. At the center supports lower-cost services and the reduction, are one or more leaders who direct the process reuse, and proper treatment of harmful waste: and provide everyone with a sense of purpose A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 113 and confidence. The secretariat is a small group Developing a Shared Framework for that serves the collaboration by undertaking Aligning Visions and Actions research on critical issues, facilitation at meet- ings, communications between meetings, and A common framework may greatly event planning. An effective secretariat may enhance communications and coordination help build confidence and make the process Frameworks are the mental maps that we use to feel productive, fun, and worthwhile to all make sense of the work schedule: what comes members. The collaborative process may re- first and second, how our particular contribu- quire a core team if the collaboration is under- tion fits with the work of others, and so on. Typ- taking to create a pact or strategic plan (figure ically, there are big differences in the frame- 2.3). Alternatively, the collaboration may guide works that different individuals bring to a and direct the planning work accomplished by project. These differences may reside in how the staffs of the various stakeholders. groups understand the goals of a project, or who influences who, or how their plans are expected to fit with other plans. Developing a common framework can help overcome these discon- nects and make a diverse group of largely au- tonomous stakeholders operate more as a team. A framework for urban planning and design covers all steps from start to finish. An example of such a framework is the pyramid shown in figure 2.4. At the pinnacle is the scope of the framework, which clarifies the extent of the urban area to be included, identifies the types of urban systems to be considered, and diag- noses the strengths and weaknesses of the system as it currently operates. After scoping and diagnostics, a framework typically expands to include a shared vision statement and a set of long-term goals. These broad statements are then unbundled into more specific and immediate targets, strategic plans, actions, and ongoing learning processes. The framework may include any principle, goal, or strategy that the users desire, and it may be easily molded to fit any current plan- Figure 2.3 The Core Team and Sector Advisers ning framework, method, and terminology. In Source: Author elaboration (Sebastian Moffatt). Note: The core team may be supported by a ring of sector champions, each of whom connects the this sense, it is a type of methodological plural- working group to a larger network of experts and stakeholders. New urban infrastructure places spe- ism: everything fits inside the framework. cial emphasis on sectors such as energy, transportation, water, the environment, and materials man- agement. However, other sectors may also offer substantial contributions. Perhaps most important, a framework builds in accountability, thereby helping to avoid short-term political decisions that are in- consistent with goals and targets. It also cre- ates the opportunity to monitor performance against specific goals and targets and to update plans and adapt to changes without losing sight 114 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES of the original intentions. If the vision changes over time, then all subsequent layers of the framework may be adjusted accordingly. Or, if the implementation actions encounter surprise or produce inappropriate results, then the problem may be traced back to the choice of strategy, and corrective changes may then be made at all subsequent levels. The first stage involves defining boundaries and understanding the current performance Because a long-term planning framework sup- ports collaborative decision making, the scope of the framework must match the platform for collaboration. If a city is leading a three-tier collaboration process, for example, then the planning framework will need to be extended to include visions and actions relevant for the entire urban area and for all participating Figure 2.4. A Long-Term Planning Framework stakeholders. Source: Author elaboration (Sebastian Moffatt). Note: The framework connects visions to actions and includes a process for learning and adaptation. Whatever the platform, scoping and diagnos- tics help set the stage. Clear boundaries inform all participants about what is included or excluded from the planning framework. An extensive in- A set of end-state goals may elaborate on the ventory or information collection process clari- vision by adding stand-alone goal statements. fies what is now known and not known. Some End-state goals define the ultimate condition basic analysis of existing system performance that is desired by a city, even if this is something may establish how well various systems are per- that may not be realized for many years. Typi- forming relative to systems in similar cities or in cally, an end-state goal is expressed in a single best practice case studies. This is sometimes re- definitive statement, followed by a commen- ferred to as a city profile. Often, the amount of tary. Canada’s capital region has a number of work involved in scoping and profiling a city end-state goals. A few relate directly to infra- exceeds the work required for all other stages of structure performance, such as achieving a the framework. Nonetheless, it is an extremely sustainable urban metabolism or extending the worthwhile investment because the results serve use of green infrastructure. These goals are as to direct all further activity. follows: 1. The natural resource demand by each neigh- Vision statements are elaborated into borhood is consistent with the long-term end-state goals capacity of the city’s infrastructure and the The vision may be a simple statement or even region’s resource base. an artist’s drawing; its purpose is to be inspi- rational and broad. If the scope is limited to 2. Trees, gardens, ponds, wetlands, hedge- infrastructure design and land use planning, rows, streams, greenways, green roofs, and then the vision should focus primarily on engineered ecologies have become the ele- these areas. ments of a cost-effective green infrastruc- A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 115 ture that cleans and constrains storm water ment and local knowledge, one may subject flows, contributes to a quieter and more each goal to a series of questions: How close is pleasant microclimate, shades buildings in the city to achieving its goal today? What forces summer, improves air quality, and generally are likely to influence future success? What contributes to the livability and biodiversity direction is the city now taking? Is the situa- of neighborhoods. tion getting better or worse? How rapid is the pace of change? This type of rapid evaluation is Although such goals describe a long-term con- helpful in setting priorities for Eco2 projects. dition, they serve an immediate strategic pur- pose by providing a common reference point for all design and planning and a basis for col- Strategic planning requires that planners laborative decision making. evaluate alternative scenarios End-state goals for Eco2 cities should ad- This exploratory stage in a planning frame- dress, at a minimum, the basic urban services work offers the opportunity to develop a range (energy, water, and so on) and the ecological of alternative scenarios or approaches and to performance of the urban region. Cities may assess their relative values in terms of how well choose to use their own format and language, or they achieve guiding targets and goals. While they may adapt their framework goals from ex- city governments and departments may already amples provided by the Eco2 Cities Initiative. have a strategic plan, the framework may help Either way, goals should reflect local conditions to extend and align the time horizons for such and cultural values and need to be discussed and plans and to integrate strategies that address endorsed by key stakeholders. Because the goals the long life cycles of such investments. At the are long term, the process of building consensus scale of the urban region, strategic planning is around the goal statements tends to be a posi- especially useful, although many urban regions tive experience, creating a common purpose in developing countries are currently operat- among stakeholders and residents. ing without a shared strategic framework. In a growing urban region, the umbrella plan Target setting may help translate goals that sets the context for all other planning is into clear objectives sometimes referred to as a regional growth strat- Sometimes, it helps to develop intermediate egy (RGS). The RGS ensures that the various targets to support specific end-state goals. The infrastructure plans—transportation, water, and targets are based on indicators that quantify energy—all share the same assumptions about the city’s desired performance with respect to land use, demand, and development priorities. one or more goals. By setting targets for spe- The RGS takes regional population growth and cific time periods, the city helps direct the pace employment projections into account and gives of change and the priorities for investment. For the region, including its component parts (towns, example, Stockholm has set a target for all new counties, and cities) long-term planning direc- construction to be carbon neutral by 2030; over tion. It is the RGS that ensures the integration of 70 percent of New Zealand’s cities and towns the parts into a functional whole. In addition to have adopted a zero waste landfill target, with providing the big picture on how a city fits into a timeline for each milestone on the journey; its surroundings, the RGS provides the broad- San Diego and Irvine, California, have achieved brush strategies for connecting neighborhoods their targets for the comprehensive coverage and directing new growth and investment. The of reclaimed water for commercial properties. RGS should always address the critical issues As part of the adoption of end-state goals that must be solved at the scale of the urban re- (and targets if desired), one may assess perfor- gion; these issues might include restricted water mance and set priorities. Using expert judg- supply, air quality, and transportation manage- 116 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES ment. The RGS may also identify priorities for been produced quickly and have been initially housing, regional services, parks, economic introduced as a simple vision and a map. How- development, and climate change initiatives. ever, most often, the process takes a couple of The most effective regional growth strategies are years from start to finish, plus the added time developed through a consensus-building pro- to initiate and secure funding. The process re- cess that achieves agreement (sign-off ) from the quires major investments in capacity building, surrounding regions and from the mix of towns field research, mapping and analysis, collabo- or stakeholders within the region. ration, and public process. Consequently, the To be effective over the long term, the RGS completion or renewal of an RGS may occur must provide a phased approach to accommo- in parallel with other Eco2 projects or at a lat- date the projected growth in population and er date. jobs, including the identification of areas suit- Absent a long-term, complete, and up-to- able for infill and densification and the timelines date RGS, the shared planning framework may for the development of specific urban reserve not function so well. Without an RGS, it might areas. To ensure that the various elements of the be more difficult, for example, to integrate Eco2 city interact and support each other, the RGS projects into long-term land use and develop- typically adapts some of the best practices from ment, and some opportunities for design and successful regions, including the following: policy integration may be lost. However, the Eco2 pathway may incorporate interim solu- • A hierarchy of regional growth centers con- tions that offer a significant amount of guid- nected to each other and to the growth con- ance without a major investment in time or re- centration area via transportation corridors sources. One such solution is the organization with efficient and convenient transit of a regional design charrette, followed by the • One or more growth concentration areas use of the outputs of the charrette as the first that provide the city with a destination iteration or first cut of an RGS. center for shopping, business, and the arts The implementation of the key strategies • Medium- or high-density developments lo- should begin with catalyst projects cated along the transportation corridors The implementation of strategies may be and at all transportation hubs achieved through project planning and invest- • Distinct, complete neighborhoods and dis- ment. The first projects implemented in accor- tricts that include a mix of land uses, a dance with the Eco2 pathway are referred to as healthy ratio of jobs to housing, and well- catalyst projects. The function of a catalyst defined open spaces project is to accelerate learning and to promote the acceptance and understanding of the Eco2 • Clearly defined containment boundaries, pathway. A catalyst project may be site specific with permanent, functional edges that sep- or citywide. It should be designed to demon- arate and protect urban areas, rural areas, strate the potential for the greater integration and natural areas of designs and polices. Almost any type of in- frastructure investment or land development • A fine-grained network of greenways and may be adapted for this purpose. However, the blueways that connect all residential areas to best choices are catalyst projects that work a network of parks and to a representative through people or in locations that are already cross-section of the region’s native ecologies taking steps in the proper direction. It also An RGS need not be a complicated undertak- makes sense to choose a catalyst project based ing. Some of the most well known RGSs have on a city’s priorities for change. If the end-state A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 117 goal is to provide everyone with affordable housing and the actual price of housing is be- Catalyst Projects Help Change Paradigms coming less affordable every day, then some “Folks who do systems analysis have a great kind of intervention is clearly warranted. As belief in ‘leverage points.’ These are places long as the project details are not predeter- within a complex system (a corporation, an mined, the process of collaboration and inte- economy, a living body, a city, an ecosystem) grated design, supported by new methods and where a small shift in one thing can produce tools, will lead to a more efficient multipurpose big changes in everything. . . . system design and a more coordinated set of “People who have managed to intervene in enabling policies. systems at the level of paradigm hit a lever- Because of the focus on learning and integra- age point that totally transforms systems. tion, catalyst projects are not strictly pilot or “. . . There’s nothing necessarily physical or ex- demonstration projects. The emphasis is on pensive or even slow in the process of para- learning and on catalyzing change by influenc- digm change. In a single individual it can hap- ing all subsequent projects. The catalyst projects pen in a millisecond. . . . Whole societies are help transform a city into a learning society. another matter. They resist challenges to A city might plan for one active catalyst proj- their paradigm harder than they resist any- ect in every neighborhood as a way to begin thing else.” implementing the Eco2 pathway and as a con- Source: Meadows (1999: 1, 18). tribution to local pride and place making. Fig- ure 2.5 evokes a neighborhood catalyst project Figure 2.5 Catalyst Projects Source: Author elaboration (Sebastian Moffatt). Note: Catalyst projects are interventions in the short term designed to accelerate the changes needed to create an Eco2 pathway that will reach the targets and end-state goals of the long-term planning framework. 118 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES and illustrates how the project serves to antici- comfortable with participation in the integrated pate and redirect performance in an area where design process. Ideally, the collaborative com- the trend is otherwise in the wrong direction. mittee will agree that design workshops are worthwhile and will contribute their best Implementation policies should be designers. The collaborative agreements may integrated across each policy tool also ensure that the results of such workshops and stakeholder are properly assessed and integrated into final To ensure that all stakeholders are engaged project plans. and that a full set of policy tools and instru- Many kinds of design workshops may be ments has been considered, one can create a used to facilitate the Eco2 pathway. One of the matrix of stakeholders and policies by catego- most important kinds of workshops is the sys- ry. An example of such a matrix is presented in tems design charrette (figure 2.6). A charrette table 2.1. The various policy tools and instru- is an intensive workshop that may last four to ments are listed across the top, and the stake- seven days and that typically brings together a holders down the left side. Developing such a diverse group of specialists, designers, and res- matrix is the output of a collaborative exercise idents. During the charrette, a number of small based on a shared planning framework. The mixed teams work side by side, day after day, matrix is a tool for strategic planning and also a with occasional interaction with each other way for any collaborative working group to vi- and with scheduled visits by the public and re- sualize the potential of teamwork. Each stake- spected personalities. holder tends to have different levers of control Techniques for conducting design char- or influence, and these produce different, but rettes have evolved over the past few years. complementary actions for implementation. Initially, the charrette was a tool used primarily to stimulate creative design solutions in build- ing form and the use of interior space. A new Conducting a Regional Systems building or group of buildings would be drawn Design Charrette in various configurations with input from many experts. More recently, the techniques have At every tier, a collaborative committee pro- been applied to entire neighborhoods, cities, vides an important institutional structure for and regions. The results have been excellent. promoting and facilitating integrated design. Larger spatial areas may be treated as three- Unlike the traditional planning and design pro- dimensional spaces with attention given to cess (which begins with a small team led by an architect, planner, or engineer who is later joined by experts as needed), integrated design engages a wide range of specialists, local stake- holders, and partners at early stages. The ob- jective is to use the expertise to influence semi- nal design decisions before opportunities are constrained and to find the synergies and out- of-the-box solutions that lead to practical and affordable responses. The prior existence of a formal collabora- tion process among senior decision makers Figure 2.6 Design Workshop: Systems Design Charette means that the groups are likely to be more Source: Photo by Sebastian Moffatt. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 119 120 Table 2.1 A Policy Matrix Source: Author elaboration (Sebastian Moffatt). Originally produced for CitiesPLUS (www.citiesplus.ca). Note: A policy matrix indicates how each participant within a collaboration may use various policy instruments to support a specific catalyst strategy. NGO = nongovernmental organization. Figure 2.7 A Regional Design Charrette Source: Adapted from Lennertz and Lutzenhiser (2006); photos by Sebastian Moffatt. Note: A regional design charrette is an intense exercise that progresses over several days through orientation, thematic design, and concept design with lots of opportunities for discussion, feedback, and presentations. scale, walkability, streetscapes, and public sketches, meta diagrams, and schematics. The space. Specific locations may be used as case pace of the workshop accelerates until it ends studies. Engineers and planners may address with a surprising amount of work accom- urban resource flows and include schematics plished. In the words of Patrick Condon (2008), and plans for alternative infrastructure. In a Canadian expert who has led many such this way, the design charrette expands to workshops, a charrette is “the best way to get address all urban systems at the city scale. the most creative proposals to address the most In a charrette, the scale will vary to match difficult problems from the most accomplished the project. If the objective is to create a long- designers in the most compressed period.” term regional plan, the scale will need to en- A charrette is a collaborative approach to compass the entire urban area and the rural design that may offer much more creativity and fringe. One team might focus on boundaries interdisciplinary thinking than is normal in and connections, another on the formation of city planning. At the beginning of the charrette, complete neighborhoods, and another on in- the teams review and discuss the city’s or re- frastructure systems (urban systems). All teams gion’s long-term planning framework (figure are directed by the end-state goals. At first, the 2.7). During the workshop, the teams engage small teams talk and share information and frequently with invited members of the public ideas. Then the process progresses from simple and specialists by means of many small presen- drawings to complete plans, layered maps, tations and intense discussions and drawing A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 121 sessions. This broad and meaningful engage- References ment contributes to a positive outcome, with less fear and resistance from stakeholders, and Condon, Patrick M. 2008. Design Charrettes for with significant potential for reaching consen- Sustainable Communities. Washington, DC: Island Press. sus on contentious issues such as the way to EIU (Economist Intelligence Unit). 2008. “Sustainable apply best practices in the local context. Urban Infrastructure: London Edition; A View to A regional design charrette concludes with 2025.” Siemens AG, Munich. http://w1.siemens. a plenary presentation to stakeholders, impor- com/entry/cc/en/sustainablecities.htm. tant personalities, and the public and the prep- Lennertz, Bill, and Aarin Lutzenhiser. 2006. The Charrette Handbook: The Essential Guide to aration of a well-illustrated publication with Accelerated Collaborative Community Planning. recommendations on the RGS. (For manuals Chicago: APA Planners Press. and case studies on charrettes, see Condon Meadows, Donnella. 1999. “Leverage Points: Places to 2008; Lennertz and Lutzenhiser 2006; Swane- Intervene in a System.” Sustainability Institute, Hartland, VT. poel, Campbell, and Moffat 2003.) Swanepoel, Lourette, Elisa Campbell, and Sebastian Moffat. 2003. “Tools for Planning for Long-Term Sustainability: The CitiesPLUS Design Char- rettes.” Research report, Canada Mortgage and Housing Corporation, Ottawa. 122 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CHAPTER 9 Methods for Analyzing Flows and Forms Meta Diagrams and Material The calculation method is referred to as ma- Flow Analysis terial flow analysis. The method tracks flows as a balanced set of input-output accounts. The The meta diagram is one of the most powerful inputs are either resources derived directly tools available for systems thinking about infra- from nature (rainwater, for example, or local structure design and performance. It has two sunshine and biomass) or resources imported dimensions: it is a visualization tool that illus- from other regions. Inputs are then tracked as trates complex information in simple and stan- they flow through the city’s infrastructure and dard ways; and it is a calculation method that buildings. Typically, the input flows are first tracks the flows of energy, water, and materials processed; for example, rain might be filtered, through cities. This section explores both di- sunshine converted to electricity, or biomass mensions of the meta diagram and the way that burned to create heat. After processing, the the meta diagram helps develop a systems per- flows are used to satisfy the demand for ser- spective and may contribute in many ways to vices, such as drinking, lighting, and cooking. the process of integrated infrastructure design. After servicing demand, the flows may again be The visualization tool is a type of Sankey processed; for example, sewage might be treat- diagram. Like all Sankey diagrams, its func- ed, or biogas captured and recycled. Finally, the tion is to illustrate flow directions and quan- flows are returned to nature as waste and emis- tities. Figure 2.8 provides an explanation of sions to the air, water, and land, or they might how a Sankey is constructed and interpreted. be stored or exported to other regions. What- By illustrating quantity and the direction of ever the resource or pathway, the inputs always flows, the Sankey displays more information equal the outputs. on a single page than does any other graphic. If analyzed through the material flow analy- As is often said, one Sankey is worth a thou- sis method, a city’s infrastructure appears simi- sand pie charts. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 123 store, convert, regulate, separate, process, or recycle any flow. A converter is on-site and upstream of all service demands, while a reconverter is on-site and downstream of at least one service demand. In the example shown, the majority of water flowing through this parcel arrives as rain, about 60 percent of which passes directly through the site to be absorbed in the ground. The remaining rainwa- ter is captured by the roof and stored in a cistern, from which it is mixed with a neighborhood groundwater system and used to supply many household needs. The greatest single use of Figure 2.8 A Sankey Diagram freshwater is the cooling system. The diagram Source: Author elaboration (Sebastian Moffatt). quickly reveals advanced looping systems: Note: A Sankey diagram is comprised of partitions, nodes, edges, and arrows. A partition represents the transitions or stages within the flow where transformations may occur. water from the kitchen and baths is reclaimed The nodes are the divisions within a partition; they represent processes or events that and used for toilet flushing, and water from the regulate or transform the quality of flows. Edges are the paths (or noodles) that emerge from nodes and that direct flows to nodes on the next partition. The width of the edges septic tank is reused for pipe irrigation. is proportional to the flow quantity. Arrows indicate flow direction. Meta diagrams constructed at the parcel level, such as the one shown, may be summed lar to the metabolism of a living organism that to create a Sankey for a collection of parcels, consumes natural resources to stay alive. If the neighborhood, or a city. An example of a Sankey diagrams are used to illustrate these citywide meta diagram shows baseline water nature-to-nature flows, they are referred to as flows for Irvine, California, a community of meta diagrams. Flows of resources may be il- 180,000 people south of Los Angeles (figure lustrated for individual developed sites or for 2.10). The climate in Irvine is dry (13 inches of whole cities. Flows are typically averaged over rain per year), and the city has developed one one year, although both the time period and of the most complex and advanced water sys- the spatial scale may be selected to answer tems in the United States. The diagram pro- whatever questions are of the most interest. vides all the key information on a single page. Figure 2.9 provides an example of a meta diagram for water flows through a parcel (a Five Reasons for using meta diagrams in house site) in New Delhi. The Sankey has five systems analysis and design preestablished partitions: sources, converters, demands, reconverters, and sinks. Converters 1. Understanding the whole picture. A meta and reconverters are general terms for the diagram may be designed to convey quickly on-site urban infrastructure or appliances that many aspects of a system to people of diverse “The built environment as a self-organizing system functions as a ‘dissipative struc- ture’ requiring a continuous supply of available energy, material, and information necessary to produce and maintain its adaptive capacity and rejecting a continu- ous stream of degraded energy and waste back into the ecosystem (entropy).” Source: Rees (2002: 253). 124 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.9 An Example of a Meta Diagram Source: Author elaboration (Sebastian Moffatt). Note: This meta diagram uses the five standard partitions to visualize water flow (liters per day) for a new, advanced detached home in New Delhi. backgrounds. Few people understand the sions. Sometimes, a combination of meta whole picture. In fact, in most cases, there is diagrams is most effective. If energy flows nobody in the entire city who is able to de- are averaged over a year, for example, they scribe the energy system, including the di- provide a good benchmark for tracking versity and relative weights of primary en- overall efficiency and understanding eco- ergy inputs, the relative importance of each logical footprints. However, annual ener- energy demand, the amount of fossil fuels gy flows fail to reveal the seasonal and embodied in local electricity, and the share daily peaks that affect costs, which are of- of energy that is cascaded to secondary uses. ten key determinants in system design. However, after a few minutes with a meta Thus, a meta diagram based on peak-hour diagram, people will likely understand the energy flows for the peak month (or daily basics (figure 2.11). flows for water during the driest month) Typically, a meta diagram is construct- might be useful for understanding the big ed to reflect the substances, processes, picture, especially in evaluating alterna- and time periods relevant to specific deci- tive system designs. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 125 Figure 2.10 Baseline Water Flows for Irvine, California Source: Author elaboration (Sebastian Moffatt), with approximate data provided by Mike Hoolihan and the Irvine Ranch Water District (2008). Note: This diagram illustrates the effective use of reclaimed water for the irrigation of commercial and public land (average cubic feet per day). Irvine has the most advanced city water system in the United States. Note the diversity of water sources, including water harvested off-site and stored in an artificial lake and large amounts of piped water in the metropolitan water district imported from northern California. Freshwater is stored in ground aquifers and then harvested by the Irvine Ranch Water District, combined with expensive imported water, and used for hygiene, cooking, surface washing, and so on. Most of the water flowing through the city’s land is rainfall, which is treated in constructed wetlands and released into a creek. A second large flow of water is reclaimed wastewater, which is used to irrigate landscapes on public and commercial properties during the driest periods. The most significant use of fresh water (imported and groundwater) is in the irrigation of the lawns around private homes. This diagram illustrates the importance of finding a way legally and safely to use reclaimed water to irrigate residential properties, a strategy the water district is now exploring. 2. Creating a common language for interdis- pattern language for physical flows at any ciplinary groups. Meta diagrams help scale (figure 2.12). The first pattern, tradi- everyone understand infrastructure as a tional, is typical of the oldest and also the whole system and then focus on those parts poorest houses in China and India. Total of the system in which resource use is high resource use is relatively small, but the mix and in which opportunities may exist for of primary resources is complex. For exam- significant efficiency, reuse, or substitution. ple, among energy flows, each fuel is care- The diagrams provide a common language fully matched to the requirements of the for exploring the key opportunities for inte- end use for optimum efficiency and lowest grated, holistic solutions. cost. Thus, coconut husks are used for heat- By compiling and comparing a diversity ing water; liquefied petroleum gas is used of meta diagrams, one may identify a simple for stove cooking; wood is used for open 126 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES cooking; solar energy is used for clothes drying; kerosene is used for lighting; elec- tricity is used for refrigeration; and petro- leum is used for motor scooters. The tradi- tional home may be poor and old, but the energy systems are relatively sophisticated. The second pattern, modern, is based on the newer tract-built houses in the urban suburbs surrounding Shanghai, China, but the pattern is typical of suburban homes worldwide. Total resource use is almost an order of magnitude greater than the resource use associated with traditional homes, even though family size has typically dropped 60 percent or more. The primary mix of energies is simple because almost all energy demands involve gas- or coal-generated grid electricity, with the exception of the demands related to cooking and transportation. The third pattern, ecological, is typical of Figure 2.11 An Example of a Countrywide Meta Diagram more sustainable integrated systems that Sources: Data from TERI (1997); analysis by S. J. Prakash and Associates, Delhi; noncommercial biomass data from Society for Environmental Communications (2002). incorporate demand-side management and Note: This meta diagram portrays the energy flows for India. Note the predominance of coal, which is used primarily for manufacturing, and oil, which is used for transport. In addition, note how much coal reuse. The resource load is midway between is wasted as heat and the secondary rank of informal biomass as fuel. Electricity use is relatively low, the traditional and modern. It combines the and per capita consumption is low, but emissions are high. LNG=liquefied natural gas. complexity of the traditional with the con- venience of the modern. Some energy recy- cling (cascading) increases the service value of the flows, which raises the total flow at the demand partition relative to the other sources and sinks. The primary mix is even more complex than the traditional pattern because of the use of hybrid systems with intelligent controls and because of the greater diversity offered by networked local energy services. However, the greatest difference may be the increased flexibility and adapt- Figure 2.12 Meta Diagrams Patterns: Physical Flows ability of the ecological home. Source: Author elaboration (Sebastian Moffatt). Note: A meta diagram’s pattern language shows the possible evolution in technology for mass and energy flows at the parcel and regional levels. 3. Developing and communicating alterna- tive development scenarios. Scenarios for future development may be presented as 2.15 is a schematic that elaborates on the sce- meta diagrams and compared with the base nario for Jinze, showing the system compo- case or other scenarios. Figures 2.13 and 2.14 nents for a typical downtown neighborhood portray scenarios for energy use in Jinze, a on a canal. The schematic provides informa- town in Shanghai Municipality; they convey tion on the spatial configuration of the tech- a radical change in the electricity mix. Figure nologies referenced in the meta diagram. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 127 Figure 2.13 Meta Diagram Figure 2.14 Meta Diagram for Jinze, Shanghai: An Advanced System for Jinze, Shanghai: The Source: Author elaboration (Sebastian Moffatt) with approximate data provided by Professor Jinsheng Li, Tongji Current Energy System University, Shanghai. More details available at www.bridgingtothefuture.org Note: This meta diagram provides a scenario for an advanced system that helps reduce emissions and costs and in- Source: Author elaboration crease local jobs and energy security. The advanced system represents a substantial change. For example, a local (Sebastian Moffatt) with approximate electricity generation facility is powered by liquefied natural gas and provides a majority of the electricity needs and data provided by Professor Jinsheng hot and cool water for industry (cascading). Li, Tongji University, Shanghai. More details available at www. bridgingtothefuture.org. Generating scenarios with meta dia- meta diagrams may be joined. For example, grams may be rather simple once base cases it is easy to combine parcels to create a sys- are completed. A new energy source or tems perspective on resource use in a spe- converter may be added and connected to cific neighborhood, development project, parcels. The population of each category of or category of housing. A parcel may be any parcel may be adjusted to reflect plans for discrete surface area (for example, a park, a upgrading buildings. For example, we house on a private lot, a shopping mall, a might replace 1,000 older dwelling units sewage treatment plant, or a roadway). All with 1,000 retrofitted dwelling units and parcels are connected. Each parcel de- instantly see the impacts on water, energy, mands resources from other parcels, and if and material flows and on total economic infrastructure is distributed, the infra- costs and carbon emissions. Because every structure may provide other parcels with parcel uses the same database structure, resources. 128 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Design Typologies 1. Town residential 1.Town residential Harbor Figure 2.15 A Schematic for a Downtown Neighborhood Source: Li (2006). Note: This schematic elaborates on one of the design typologies that underlie the advanced energy systems of Jinze, Shanghai (see figure 2.14). Note the combination of a centralized electricity grid (liquefied natural gas) with distributed infrastructure, including solar photovoltaic installations with grid, solar domestic hot water, a river heat pump, and wind-driven ventilation. 4. Setting priorities for research and de- 5. Calculating performance indicators in sign. Understanding where waste is oc- transparent and comparable ways. The curring and the relative importance of meta diagram may be used not only for various resources and demands is essen- systems analysis, but also for generation of tial for establishing research and design specific indicators of performance. In fact, priorities. Each node presents opportuni- every flow portrayed on a meta diagram is a ties for substitution, efficiency, looping, potential indicator that may be monitored and cascading. Figure 2.16 portrays an en- over time or compared with other locations ergy analysis for a proposed town of 50,000 or other scenarios. The balanced nature-to- people in southern India. In this case, the nature flows on a meta diagram may be con- combination of meta diagrams helps em- verted to money or emissions where relevant phasize the importance of addressing and, thus, provide an average life-cycle inven- transportation demand in future plans. Of- tory of all costs. A material flow analysis offers ten, a combination of meta diagrams helps a consistent method for tracking all consump- zero in on particular issues. A meta dia- tion, emissions, and expenses at each stage in gram for the driest month helps assess the the life cycle and is thus the preferred method potential for self-reliance. A meta diagram for assessing internal and external costs. The that shows only residential demands in meta diagram helps clarify exactly what is precise detail is helpful in preparing policy included and excluded in calculations. For for a residential neighborhood. example, the total water consumption for any A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 129 Figure 2.16 Meta Diagrams on Energy for a Proposed New Town Source: Author elaboration (Sebastian Moffatt). Note: This series of energy meta diagrams was used to guide development plans for a proposed new town near Poona, India. The first diagram represents a business-as-usual sce- nario. It shows how current development practice in southern India encourages greater use of coal-generated electricity. The second meta diagram portrays an advanced system with biomass brought by train and used in a local district energy plant, with the cascading of energy. The third meta diagram includes the transportation energy that was ignored by the designers and is missing from the other meta diagrams. Note that, because residents are expected to commute, transportation-related energy exceeds all other energy uses combined. The third meta diagram suggests that a reduction in the need for commuting and the provision of incentives for the creation of quality transit systems must be a prior- ity in urban design in affluent new towns. particular use may be clearly subdivided into be used to draw the diagrams automatically. off-site potable water, on-site water (the roof The difficulty arises in collecting baseline data catchment), and reclaimed water. Without to portray existing conditions or to construct a this type of separation, it is impossible to business-as-usual scenario. Two kinds of base- understand a water consumption indicator. line information may be used (figure 2.18). By standardizing the meta diagram format, 1. Top-down data establish how much of any one may directly compare results from differ- given resource (energy, water, and material) ent locations or time periods and create com- was actually sold, delivered, or imported parable benchmarks for assessing system during the most recent period. If one is deal- performance and trend lines. Comparable ing with a greenfield development, then benchmarks also help in the important top-down data may be used from a neigh- process of establishing long-term targets for boring site as a proxy for business as usual. resource use. For example, authorities in the Once the inputs are known, the rest of the resort municipality of Whistler, which repre- database may be constructed using popula- sents one of Canada’s leading examples of tion data and default values for demand by sustainable planning, were unable to agree on end-use category. For example, we might long-term performance targets for a set of imagine a situation in which the population indicators until they benchmarked their is 10,000 and the average person uses 200 current performance relative to other leading liters per day of municipal water, divided resorts in North America (figure 2.17). into toilets (40 percent), showers (5 percent), surface washing (8 percent), and so on. Creation of meta diagrams if data are lacking Creating meta diagrams is easy once the data 2. Bottom-up data aggregate the flows of any are properly stored in a database or spread- given resource by beginning with detailed sheet. In fact, simple software applications may flows generated at the scale of various types 130 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.17 Annual Energy Use as an Indicator in Squamish, Canada Source: Author compilation (Sebastian Moffatt), adapted from Sheltair Group (2007). Note: On both of these benchmarking scales, it is possible to compare the performance of Squamish today with the performance in other locations. In the top chart, the annual energy use in residential buildings is compared with the corresponding energy use in other mountain resort communities. In the bottom chart, the percentage of total energy derived from renewable energy sources is compared with the percentages in countries around the world. Note that Squamish has set a target for renewables of 95 percent by 2025. OECD = Organisation for Economic Co-operation and Develpment. Figure 2.18 Approaches to the Development of Meta Diagrams Source: Author elaboration (Sebastian Moffatt), with assistance from Niklaus Kohler. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 131 of parcels or discrete pieces of land with parcels was audited and used to create an their attendant buildings and end uses. energy meta diagram for the whole region. This approach provides much greater pre- cision and is preferred in dealing with ex- Tools for aggregation isting stocks of buildings. Parcels are In the development of a reference database on grouped into categories based on land use existing stock, all data collection occurs at the and demand profile, (for example, prewar level of an individual parcel. Flows are re- low-rise multiunit residential or recent corded in a predefined matrix that corre- strip mall commercial). Aggregating parcel sponds with the Sankey diagram structure. information requires that experts visit and Thus, the flows for each node on the parcel audit several typical parcels within each are connected with nodes upstream or down- category and use these parcels to create a stream to account for all sources and destina- solid reference database. Reference parcels tions. By cross-referencing flows in and out of are then used to create proxy values for all each partition and node, the matrix functions the parcels within each category. The total as the numerical equivalent of the meta dia- (aggregate) flow for the meta diagram is gram. A matrix may be automatically generated calculated simply by multiplying the proxy either from empirical (field) data collected on flows by the population of parcels within each archetypal parcel or from hypothetical each category. Using such shortcuts, it is data deduced from a theoretical parcel design. possible to determine an accurate baseline Field data and hypothetical data for refer- flow quickly (+/− 10 percent). Figure 2.19 ence parcels need to be converted into flows shows an example from Squamish, Canada, of resources. The conversion is accomplished where a diverse collection of reference using standard models for predicting thermal Figure 2.19 Auditing Reference Buildings to Create a Meta Diagram Source: Author compilation (Sebastian Moffatt), adapted from Sheltair Group (2007). Note: Carefully selected reference buildings in Squamish, Canada, were visited, audited, and used as proxies for the various categories of building stock. With the use of these reference buildings, a complete energy meta diagram was generated for the region. The result reveals a simple energy mix, with almost no cascading or on-site generation. This condition is typical of an area, such as Squamish, in which energy prices are low. The large share of energy used for personal transportation is typical of a dormitory community; in Squamish, two-thirds of the working population is employed elsewhere. 132 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES loads, water demand, and so on. For example, Effective Overlay Mapping a data collection form may keep track of pri- mary data such as type of appliance and num- When a picture is worth a thousand words ber of occupants, and these data may then be The best way to communicate complex infor- used to calculate the probable flows of water, mation to planners and designers is through energy, materials, and people for each pur- pictures, including maps, photos, schematics, pose. Data collection forms need to accommo- or a combination of these. The history of using date a wide variety of lifestyles and building maps quickly to convey complex relationships types. Table 2.2 shows excerpts from data between the built and the natural environments collection forms developed for water flows. begins with Design with Nature (McHarg 1969). Similar forms may be used for energy and Although Ian McHarg’s simple overlays of organic materials. The forms are fairly simple, transparencies are still good tools, the options but they require that connectivity be record- have evolved considerably with geographic ed. For example, the forms shown in the table information systems (GISs) on computers and record exactly where the roof drainage water the Web. GIS is now a mature, affordable, and is output: to the ground, cistern, street, gar- widely used technology for mapping and den, sewerage, storm drain, or some combina- spatial analysis that will soon be part of the tion of such destinations. standard practice in all cities in all countries. The data collected on each parcel may be All large metropolitan areas now have GIS used to generate the inputs for a universal flow departments and routinely use GIS to assist in matrix automatically (figure 2.20). The matrix design and management. may then be used to produce files to generate In the context of building capacity for Eco2 meta diagrams with the aid of various diagram- projects, cities require GIS and related visual- ming tools. ization technologies to support the inter- A parcel may be any discrete surface area disciplinary planning process. Initially, GIS (for example, a park, a house on a private lot, applications need not be demanding or time- a shopping mall, a sewage treatment plant, or a consuming. All that is required is (1) the roadway). The single format for data structure capacity to produce simple overlay maps that allows for each parcel to demand flows and to consolidate spatially referenced information serve other parcels as a supply (or service) and help planners recognize relationships and node. Thus, the data structure allows for trans- patterns on the landscape and (2) the capacity former parcels that evolve over the long term to calculate a few simple spatial indicators, to become part of integrated and distributed such as density, diversity, and proximity (figure infrastructure systems. For example, a single- 2.21). Such capacities are absolutely essential family home may begin as a water or energy in supporting charrettes, foresight workshops, demand node in the regional system, but if the and other integrated design exercises. roof is retrofitted to catch rainwater or solar Unlike many GIS applications, the genera- energy, the database easily accommodates the tion of overlay maps and the calculation of changes. The use of this standardized data spatial indicators provide exceptional value in structure also helps visualize the process of exchange for a small investment in time and stock aggregation. Designers may move from human resources. Moreover, new technology a Sankey at the parcel or building scale to a is now allowing for visualization in a wider va- Sankey at other scales simply by stacking the riety of formats that also contribute to decision database for each parcel within the larger area making. For example, simple contour maps and adding the cells. The systems perspective (also referred to as digital elevation models) is always maintained. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 133 DEMAND WATER DEMAND WATER Units Units Values Values List of Options List of Options Laundry Laundry Full size Full size, side Compact (<45 Advanced stnd top load or short (<45 liters) liters) side water Clothes washing system None None loading cycle top loading load efficient Number of full loads created per person week 0 0 0.5 1 1.5 2 2.5 Washing appliance liters per load 0 Personal Hygiene Shower use per person week 0 0 1 2 3 4 5 Bath use per person week 0 0 1 2 3 4 5 Standard Standard long (8 Short (5 Low Flow Low Flow Shower system and length None None minutes) minutes) Long Short Bucket Bath None None Full Normal Bucket Tap off Tap on Tap on except constantly & constantly Tap on when Hand & face, shaving, brushing None None long short constantly essential Showering system liters per shower 0 Bath liters per bath 0 Hand & face, shaving, brushing liters per person 0 Kitchen meals per person Cooking Frequency day 0 0 1 2 3 4 5 Basin or Water Eff. Dishwashing System None None Sink Stnd Machine Machine Number of full loads created per person week 0 0 0.5 1 1.5 2 2.5 Dishwashing system liters per load 0 Toilets Standard Low volume Extra low Compost Primary toilet water system Standard f None flush Low flush dual flush w' dual Toilet flushes per Primary toilet use person day 4 0 1 2 3 4 5 Standard Low volume Extra low Compost Secondary toilet water system None None flush Low flush dual flush w' dual Toilet flushes per Secondary toilet use person day 0 0 1 2 3 4 5 Primary toilet category liters per flush 22 Secondary toilet category litres per flush 0 Drinking Irrigation Cummulative operating time for all irrigation pipes & outdoor watering taps (excluding reuse of hours per month 0 0 0.5 1 1.5 2 2.5 Potted Plants and Pools Typical quantity of water per liters per month 0 0 2 4 6 8 10 Interior Surface Cleaning Frequency of interior surface times per week 7 0 1 2 3 4 5 Quantity of water used (excluding reuse of wash water) liters per event 4 0 1 2 3 4 5 Exterior Surface Cleaning Days per month exterior number of days 0 0 1 2 3 4 5 minutes per Duration of watering cleaning 0 0 5 10 15 20 30 Vehicle Cleaning Number of 4 wheel vehicles number of cleaned on-site vehicles 0 0 1 2 3 4 5 Number of 2 wheel vehicles number of cleaned on-site vehicles 0 0 1 2 3 4 5 per vehicle each Frequency of cleaning week 0 0 1 2 3 4 5 Evaporative Cooling Typical frequency of use during hours per month 0 0 50 100 150 200 250 Small (residential), Multi-unit, no Small with Multi-unit Category of cooling system None None no bleed bleed Large bleed with bleed Consumption of water by cooler liters per hour 0 Humidification Typical monthly water liters of water per consumption month 0 0 5 10 15 20 25 Client Demand Table 2.2 Sample Forms for the Collection of Standardized Data on Water Flows Source: Author compilation (Sebastian Moffatt). Note: The table shows a complilation of sample computerized forms used to collect standardized data on water demand and water flow connec- tions at the level of a land parcel. 134 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.20 Sample Universal Flow Matrix for Water Source: Author elaboration (Sebastian Moffatt). Note: The figure shows an example of a universal matrix that identifies all water flows at the parcel level by quantity and direction from source to sink. may be combined with air photos (for example, the simple nature of the tool and its role in plan- Google Earth) to produce three-dimensional ning. Without lots of advance notice and direc- imagery. Such techniques provide planners tion, GIS departments produce maps that are and others with the ability to fly through a dig- complex and colorful, but provide little added ital landscape that has acquired the look and value. To realize the great potential of overlay feel of a proposed development. With addi- mapping, one may find it helprul to consider tional training, specific objects in the GIS data- the following suggestions. base may be given attributes related to resource consumption, and GIS may evolve into a sce- Provide clarity on the key questions decision nario development tool (for example, Commu- makers are asking nityViz; see elsewhere below). For example: Where are the ecological assets? Where are the threats to urban systems? Getting real value from mapping Integrated design workshops depend on the use One of the challenges in overlay mapping is of maps to inform interdisciplinary groups about avoiding the common problem of GIS for the many factors that influence the performance of sake of GIS. Traditionally, GIS work has been infrastructure systems. For instance, maps may far removed from decision making and has help create an integrated understanding of the been surrounded by a mystique that obscures potential for taking advantage of existing eco- A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 135 Figure 2.21 Layering Data Source: Author elaboration (Sebastian Moffatt), with assistance from Lex Ivy, Terra Cognitio GIS Services. Note: This example illustrates how a number of layers of information on the natural capital of a region have been visually integrated on a single map. This information may be useful for strategic land use decisions and in identification of infrastructure system design options. logical assets inside or near a city. A map might the most vulnerable to natural or constructed show the locations with potential for generating hazards. The GIS consulting team has com- renewable energy from wind, microhydro, bio- piled one of the largest and most detailed mass, geothermal, tide, industrial process, and digital GIS databases ever prepared in India other sources. Overlay mapping also provides a and then generated an atlas that reveals the useful way of evaluating existing infrastructure relative risks to life and capital from earth- systems and comparing their capacity in specific quakes, cyclones, storm surges, floods, chemi- locations relative to the projected demand aris- cal accidents, and droughts. ing from growth in populations and economic An example of overlay mapping on risk is activities. With such information consolidated shown in figure 2.23. In this example, regional on a single map, groups may integrate local growth planning for energy and transportation energy assets relatively easily as they plan new in the City of Squamish is informed by the dis- energy infrastructure systems and urban settle- tribution and intensity of risks on the landscape, ments (figure 2.22). The same overlay process including risks associated with landslides, works in all sectors. earthquakes, floods, and unstable soils. All risks An example of hazard mapping at a larger have been consolidated as layers on a single scale is the work recently completed by Guja- multihazard risk assessment map. This commu- rat State Disaster Management Authority in nity is located in a flood-prone and geologically India on a composite risk atlas aimed at active area, and the map reveals few locations assisting the various departments involved in for the safe development of land for residential disaster mitigation planning in areas that are and commercial uses. Moreover, the existing 136 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.22 Overlay Mapping Source: Author elaboration (Sebastian Moffatt), with assistance from Metro Vancouver GIS Department. Note: In this example of overlay mapping, multiple infrastructure systems have been layered onto a single map to depict the location of manufac- tured capital assets. This information may also be useful in land use planning and in optimizing the use of existing infrastructure systems. natural gas and electricity infrastructure sys- assets, ecological functions (such as rainwater tems and the major transportation routes for catchment, food production, and wind protec- rail and road are already exposed to significant tion), and unique or ecologically sensitive areas risk because they are located in the fan of pro- that contribute to local biodiversity and ecologi- jected debris from landslides off the east slope cal health. Design teams and policy experts are of the mountains. Even the electrical substa- able to adapt their policies and designs to this tion has been incorrectly located in this haz- information only if it is available in a timely and ardous area because of the lack of prior overlay easy-to-understand format. mapping. A more common and especially useful ap- Another example of innovation in overlay plication of overlay mapping involves mapping mapping is the collection of maps in figure 2.24, the capacity of existing infrastructure and which displays a series of maps for the same comparing this with the projected demand for Squamish region. Each map focuses on a dif- services. Many urban regions are now using ferent renewable energy asset. By overlaying this type of overlay mapping to assist in growth the energy asset maps, one produces a tool that management. Areas with surplus capacity makes it easier to plan development based on within their infrastructure systems are the local renewable energy resources. For example, most appropriate locations for new develop- a new residential development may be located ment or infill, all other factors being equal. in areas in which the sunshine permits year- Areas with especially high demand may be long use of solar water heaters and in which appropriate for localized infrastructure sys- new buildings stay clear of the windy ridge tems; for example, high energy demand makes north of town, where average wind speeds are district energy systems cost-effective. Because sufficient to support a wind farm. maps are available on such areas, one may more It is not unusual for land use and infrastruc- easily implement the policies that make build- ture plans to proceed without any reference to ings suitable for hooking up to a local network. the risk of natural disasters or to other critical This kind of forward-looking policy helps landscape relationships such as local resource create a municipal ecology in which many A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 137 Earthquakes Figure 2.23 An Example of an Overlay Map Used for Risk Assessment Source: Overlay maps completed by Pathways Group at Natural Resources Canada and presented as a contribution to the Canadian team in the “Bridging to the Future Project” (Sheltair Group 2007). Note: Combinations of landscape risks may be overlaid to create a map for multihazard risk assessment that quickly and easily communicates which landscapes are suitable for specific uses. locations function as both supply and de- However, inventorying resources is not so sim- mand nodes for flows of resources. ple. A substantial investment is sometimes required to survey resources and document Focus on quality inputs conditions throughout a region. The process in- Similar to the case of meta diagrams, the volves experts in many disciplines. Because ev- difficulty in overlay mapping is the scarcity ery location is unique, there are few shortcuts. of reliable data. Maps may be beautiful, but One technique for speedy data collection is the their utility depends on the accuracy and use of photography from the air, in combination scope of the data that have been supplied. with a global positioning system, to create data In fact, the mapping of ecological resources rapidly on the length and area of the natural within and around a city, for example, is a and built elements of a region, including build- relatively simple task that may be per- ing footprints, the length of key streets and formed by any recent college graduate. shorelines, and the characteristics of open 138 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.24 An Example of an Overlay Map of Renewable Energy Sources Source: Overlay maps completed by Pathways Group at Natural Resources Canada and presented as a contribution to the Canadian team in the “Bridging to the Future Project” (Sheltair Group 2007). Note: Individual energy asset maps may be viewed together or overlaid to produce a picture of all areas in a region that have easy access to renewable energy resources. With appropriate growth management and the aid of the maps, a city may become well positioned to achieve energy indepen- dence and carbon neutrality. KM=kilometer. spaces. The information collection and storage dents in the mapping work. Workshops may be plan are the most important elements of the organized for tapping into this information and method and need to be addressed as part of an creating maps that are far more informative Eco2 pathway. A good example of how a broad through a process that is more inclusive. information strategy leads to more effective Recently, this sort of community mapping has mapping tools is found in the World Bank’s been successfully applied in many locations. primer for cities on climate change, which in- Communities often have a truly surprising cludes a step-by-step approach to identifying amount of information to contribute, much of hot spots that are especially vulnerable and which cannot be obtained in any other fashion. then exploring mitigation options (see Prasad and others 2009). Take advantage of technologies for sharing results Integrate local knowledge The use of Web-based GIS applications is an Another key part of an information strategy is emerging technology that leverages the benefits engagement with knowledgeable local resi- of mapping. Colorful maps and images on the A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 139 Internet offer greater potential for public and ple is CommunityViz, a software package de- stakeholder participation and help decision veloped for cities and made available at a mini- makers collect diverse viewpoints on how to mal cost through the Orton Family Foundation, improve the quality and the acceptability of a charitable foundation. CommunityViz greatly plans. Also, the maps are open to scrutiny by a reduces the time required to create plausible wider audience that may provide ideas for ad- scenarios for urban system design and for es- ditional spatial inquiry, have access to more in- tablishing a standard protocol for the use of in- formation or updated information, and point dicators and benchmarks (figure 2.25). It also out inadequacies in the maps. provides a convenient basis for sharing data and integrating results across departments or Work toward scenario-based GIS institutions. In the Squamish application de- As capacity builds within a city, overlay map- scribed above, CommunityViz has been used as ping methods may evolve to include powerful a common platform by three separate design scenario-based GIS. Such applications can rap- teams: smart growth (urban form and transpor- idly alter maps to reflect changes in design and tation), pathways (risk management and natu- automatically generate precise calculations of ral hazards), and bridging to the future (30-year spatial indicators and resource flows. An exam- pathways for sustainability). Figure 2.25 CommunityViz Source: Author elaboration (Sebastian Moffatt) with a core schematic adapted from Orton Family Foundation (2009). Note: CommunityViz is a GIS application based on scenarios and indicators that may be used in concert with other methods to produce much of the information required for assessing development options. 140 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES References Rees, William E. 2002. “Globalisation and Sustainabil- ity: Conflict or Convergence?” Bulletin of Science, Technology and Society 22 (4): 249–268. Li Jingsheng, ed. 2006. “Bridge of Jinze, Bridging to Sheltair Group. 2007. “Bridging to the Future in the Web.” Bridging to the Future Project. http:// Squamish, BC: Summary Report—New Directions www.bridgingtothefuture.org/sites/default/files/ for Energy System Design.” Prepared for District China%20Bridging%20to%20the%20Future% of Squamish, BC, March 2007. Available at http:// 20presentation.pdf. www.squamish.ca/downloads/community- McHarg, Ian L. 1969. Design with Nature. Wiley Series energy-action-plan. in Sustainable Design. Garden City, NY: Natural Society for Environmental Communications. 2002. History Press. Down To Earth: Science and Environment Online. Orton Family Foundation. 2009. “CommunityViz December 15, 2002. Center for Science and User’s Guide.” Orton Family Foundation, Environment, New Delhi. http://www. Middlebury, VT. downtoearth.org.in/default.asp?foldername= Prasad, Neeraj, Federica Ranghieri, Fatima Shah, 20021215. Zoe Trohanis, Earl Kessler, and Ravi Sinha. 2009. TERI (Tata Energy Research Institute). 1997. TERI Climate Resilient Cities: A Primer on Reducing Energy Data Directory and Yearbook 1997/98. New Vulnerabilities to Disasters. Washington, DC: Delhi: Teri Press. World Bank. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 141 CHAPTER 10 Methods for Investment Planning Investing wisely in urban development is a A number of assessment methods are avail- complex process. A large number of profes- able to help cities cope with complexity. The sionals must be engaged (architects, design- following methods are worth considering. Each ers, suppliers, engineers, economists, and of them may be applied using simple and scal- financial planners), each of whom brings a able tools that adjust to the needs and capaci- different concept of what is important and ties of the user. how it may be measured (figure 2.26). Con- First and foremost is life-cycle costing struction occurs in many phases and over (LCC), which is used to understand many of many years (programming and planning, de- the indirect and contingent costs associated sign and engineering, construction, opera- with any project design over the expected life- tion, and dismantling). The final product is time of the facilities. Some LCC tools work composed of many levels of subsidiary prod- with complete urban environments, including ucts (materials, components, technologies, spatial elements and infrastructure. Other LCC whole buildings, infrastructure systems, and tools work exclusively with specific types of open space). At each phase and on every scale, infrastructure facilities, such as treatment different actors are involved in the decision- plants and power plants. We look at both types. making process. The complexity of interac- The second method to consider is environ- tions among these actors and among the many mental accounting, which attempts to add up elements is one of the most significant chal- the lifetime environmental impacts of a proj- lenges faced by someone trying to assess the ect. Environmental accounting includes mate- real costs and benefits of alternative plans rial flow analysis, but also expands the scope for development. Investing wisely in urban to encompass the broader impacts of specific development revolves around coping with projects on the environment, such as resource complexity. use and depletion and the costs of emissions. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 143 Figure 2.26 The Life Cycle of a Building Source: Brick (2008). Note: The life cycle of a building is long and complex and influenced by many different professionals. This method may be applied in demonstra- part of investing in resilience and sustainability. tion projects because it helps reveal the whole A fourth method is the overall valuation of a picture; life-cycle environmental accounting city’s performance on an Eco2 pathway and on helps identify areas in which the problems are a long-term and project-by-project basis; this the greatest. For example, ecological priori- involves using a holistic set of indicators to ties among rapidly industrializing countries assess costs and benefits. It is important for include cutting back on the excessive amounts cities to review ways to select performance of heavy masonry used in construction, con- indicators that are useful to decision makers verting the inefficient and polluting energy at varying levels and that cover the full range systems used to produce materials, and en- of assets within a city: manufactured capital, hancing the durability of concrete and other natural capital, human capital, and social key materials that affect the lifetimes of build- capital. It is important that these indicators ings and infrastructure. The challenges in- include qualitative attributes such as historic, volved in undertaking environmental ac- traditional, or cultural dimensions that cannot counting on projects are centered on the time be represented monetarily. The challenge is and effort needed to consider all the inputs to find ways to measure these assets that and outputs, including those that are embod- are balanced, affordable, dependable, and com- ied in the materials and services procured for parable and to present the results in a format the project. that may be easily understood by decision A third method is risk assessment, which is makers. especially important during times of rapid change and, yet, is largely ignored by urban pro- fessionals. A full assessment of risk requires that Life-Cycle Costing cities consider a variety of future possibilities and research the likely impact of trends in many One of the most significant factors influenc- areas, from climate change to technology. Sce- ing decision making on urban area develop- nario planning and adaptation are difficult, but ment is the long-term impact on city finances they are also rewarding exercises and are a key and the costs for residents and businesses. 144 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Unfortunately, in complex integrated designs LCC applications in integrated land use that include new land uses and new infrastruc- and community infrastructure planning ture, costs and revenues are often difficult to LCC may assist with the evaluation of alterna- estimate. Good commonsense arguments tive spatial planning activities by providing might exist for alternative Eco2 designs, but, credible estimates of the full long-term costs without accompanying financial analysis, for infrastructure and the impacts on taxes, fis- decision makers may be understandably cal health, affordable housing, and commercial reluctant. This is especially true because of space. The benefits are most effec- the prevailing misconceptions and wide- tively understood through a specific spread misinformation. Moreover, it is not al- example of the application of LCC. ways easy to recognize the win-win potential, The example presented here is 0R]LOOD)LUHIR[OQN and the assumption may be that change is based on a tool developed by the costly, at least until a financial analysis is com- Canada Mortgage and Housing Cor- plete. The debate over costs has two dimen- poration, a Canadian public agency, sions: What are the true costs over the long for use in integrated design exer- term? And how equitably are costs and bene- cises. The tool, the life-cycle costing fits distributed? An LCC method is the only tool for community infrastructure planning, al- Life-cycle costing way to address both these questions. lows users to compare alternative development software is available from Canada Mortgage LCC for urban infrastructure applies to all scenarios and to estimate the major costs of and Housing components, from buildings to roads; path- community development, particularly the costs Corporation. ways; rights-of-way; parking lots; wires; pipes; that change depending on the form of urban www.cmhc-schl.gc.ca. ditches; bridges; and the associated treatment development (for example, linear infrastruc- plants, substations, open spaces, and facilities. ture). The tool is geared toward estimating Most of these infrastructure elements have ex- planning costs and the revenues associated ceptionally long lifetimes and may account for with the residential component of a develop- large quantities of life-cycle material and en- ment. The financial impacts of commercial de- ergy flows. By adopting LCC, one may adjust velopment and other types of development the design and purchasing choices to optimize may be incorporated, provided infrastructure the system over its entire life. The composition requirements have been specified correctly. of sewerage pipes, for example, may be changed The tool is suited to assessing development from concrete to welded steel if due consider- projects ranging in size from a collection of ation is given to durability, cleaning, mainte- houses to a block-by-block infill development nance, and other recurring costs over the full to an entire subdivision or neighborhood. A life of the system and to the potential for adapt- good measure of the applicability of the tool to ability and recycling. Road surfaces may be a given project is whether or not alternatives changed from asphalt to concrete if due con- may be conceived that would result in signifi- sideration is given to the improved efficiency cantly different densities or infrastructure re- and fuel savings achieved by truck tires on con- quirements or make use of different green in- crete. Linear in-ground infrastructure grids frastructure alternatives. may reflect the adoption of combined trench- The tool is a spreadsheet-based application ing and easily accessed utilidors if these are (Microsoft Excel) that makes the estimation of shown to offer greater adaptability and lower life-cycle costs quick and easy for almost any operating costs over the long life cycle of such type of land use and infrastructure alternative. systems. LCC can produce even greater chang- It includes costing variables with default values es in practice in terms of spatial planning, as that may be adjusted to match local or national described in part 1. costs according to a city’s location. Outputs in- A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 145 clude integrated financial assessments with mon- transit, private vehicle use, fire protection, etary values for the following major categories: and police. Interest rates for lending, tax rates, and service revenues are also calculated. Life- • Hard Infrastructure, including roads, sew- cycle costs are annualized (converted into an erage, storm water facilities, schools, and annual cost) over a 75-year period and allow recreation centers for the operation, maintenance, and replace- • Municipal services, including transit ser- ment of all utilities. All costs may be allocated vices, school transit, fire services, police on a per household basis. services, and waste management services All cost and service demand assumptions • Private user costs, including driving costs were the same for the two calculations. The and home heating costs only differences were that the sustainable • External costs, including air pollution, cli- neighborhood scenario has a smaller neighbor- mate change, and motor vehicle collision • Green infrastructure alternatives hood street width, green storm water infra- structure, green roofs on public buildings Two scenarios for Fort St. John (reducing the size of the storm water infra- In 2008, Fort St. John, Canada, conducted a structure), and higher energy efficiency build- design charrette to create a sustainable neigh- ing standards. The sustainable neighborhood borhood concept plan for a 37-hectare green- scenario also has a higher density and greater field site on the edge of the urban area. The mix of housing types and land uses. Table 2.3 city had three goals: compares the two scenarios. 1. Adopt a more proactive and engaging plan- Baseline scenario: low-density, primarily ning process for managing growth. single-family residential and apartment 2. Create a new demonstration neighborhood A simple mask method was used to assess the that embodies the community’s long-term road and lot layout and the number of units goals and objectives. that would typically be developed on this site. 3. Field-test new approaches for guiding A scaled mask was created and placed over an future mixed use development throughout existing neighborhood near the site (figure the region. 2.27). The neighborhood has parks, mostly sin- As part of the design charrette, the develop- gle-family homes, and so on. The approximate ment costs and value of the sustainable neigh- number of lots and the length and type of borhood concept plan were compared against streets captured inside the mask were counted; a baseline scenario that was grounded on the allowance was made for the inclusion of a typical low-density neighborhoods currently school and community center. Three elements existing in Fort St. John. The sustainable were then added: a small strip of commercial neighborhood scenario is an alternative incor- use buildings, some duplex lots, and several porating the principles and recommendations small three-story apartment buildings. Public that arose from the charrette process. The open space was limited to parks, school analysis using the LCC tool for community grounds, and street rights-of-way. infrastructure planning allowed the scenarios to be run for an entire neighborhood. The Sustainable neighborhood scenario: medium- calculations are comprehensive, including density, varied housing forms, and mixed use typical capital and operating costs for utilities The sustainable neighborhood plan developed and services such as roads, water, sewerage, in the 2008 charrette was the basis of the sec- garbage, schools, recreation facilities, public ond scenario. A three-dimensional model was 146 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 2.3 City of Fort St. John, Canada: Comparative Statistics for Two Scenarios SUSTAINABLE NEIGHBORHOOD FACTOR BASELINE SCENARIO: LOW DENSITY SCENARIO: MEDIUM DENSITY Site area 37 hectare (93 acre) 37 hectare (93 acre) Residential area (a %) 94 90 Commercial and community (%) 6 10 Service area of parks approximately 2.7 hectare not estimated; multiuse open space Total residential units 368 932 Single-family units 188 56 Duplex units (large lot) 72 0 Minilot duplex units 0 84 Townhouses (two stories) 0 1 08 Townhouses (three stories, stacked) 0 1 38 Apartments (three or four stories) 1 44 516 Apartments above commercial 0 30 Commercial units 8 15 Gross unit density, units/hectare (units/acre) 1 1 (4) 28 (12) Total population 888 1,922 Adult population 682 1 ,542 Child population 206 380 Total Population 888 1,922 Total roads (linear meters) 4,120 5,260 Neighborhood roads, compact (meters) 0 2,410 Collector roadsb (linear meters) 3,200 1 ,930 Arterial roads (linear meters) 920 920 Source: Fort St. John (2009). a. Residential area includes roads, parks, schools, and so on. b. Collector roads includes two types: one with a 17-meter right-of-way and one with a 15-meter right-of-way. Figure 2.27 Baseline Low-Density Scenario Developed Using a Mask Source: Fort St. John (2009). Note: Apts = apartments; Com = commercial use. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 147 developed from the workshop sketches using a • A school and a community center variety of the housing forms listed in the resi- • A public lookout at the water tower dential section (see above). Though a precise, • Energy-efficient homes detailed neighborhood design was not estab- Open public space is integrated and multiuse, lished, zoning areas, building forms, street including greenways, community gardens, bi- types, and public buildings were scaled accu- cycle paths, cross-country ski trails, and a rately so that the outcome was a plausible re- large commons around the school and com- sult. Generally, this is a much more compact munity center. plan than the baseline scenario. Buildings are more tightly packed, and there are more open, Analysis of Costs and Value in the intermediary public spaces. There are several Scenarios more uses and building types than the case in the baseline scenario. Neighborhood streets Baseline scenario: Costs and value and roads are also narrower, in line with Cana- Using typical costs for roads, sewerage, water dian Alternative Development Standards. supply, schools, and other services, one sees The sustainable neighborhood plan includes that the baseline scenario results in about the following: US$36,000 in initial capital costs for each res- • A small area of large-lot single-family resi- idential unit (figure 2.28). The estimated cost dences of a storm water pond is included under green • A number of small areas of minilot duplexes infrastructure. The estimated cost of a water • A few small areas of two-story townhouses pumping station is included under user- • Several areas of three-story stacked town- defined costs. Note that roads dominate in the houses capitals costs. Using these capital costs, the • Three- or four-story apartment buildings baseline scenario results in about US$6,500 in along the east part of the 112th Avenue ex- operating costs for each residential unit (fig- tension ures 2.29 and 2.30). • A seniors-oriented district of three- or four- All infrastructure assets depreciate; so, a true story apartment buildings to the east of the representation of the costs must include replace- hospital site ment costs over time, including inflation in • A row of mixed use commercial units with construction costs. Figure 2.31 illustrates the apartments above and along the 112th Ave- annual operating costs for all types of infra- nue extension, slightly north of the hospital structure if these are spread over a 75-year life- site Figure 2.28 Baseline Scenario: Initial Capital Costs Source: Fort St. John (2009). 148 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.29 Baseline Scenario: Annual Operating Costs per Unit Source: Fort St. John (2009). Figure 2.30 Baseline Scenario: Graphic Representation of Initial Capital Costs and Annual Operating Costs per Unit Source: Fort St. John (2009). Figure 2.31 Baseline Scenario: Representation of True Life-Cycle Costs, Including Replacement Source: Fort St. John (2009). A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 149 Figure 2.32 Baseline Scenario: Graphic Representation of True Life-Cycle Costs Source: Fort St. John (2009). that the sustainable neighborhood scenario results in about US$16,500 in initial capital costs for each residential unit; this is less than half the costs of the baseline scenario (figure 2.34). The estimated cost of a green roof for the school and community center, as well as the (now smaller) storm water pond, is in- cluded in green infrastructure. The estimated cost of a water pumping station is included in user-defined costs. Note that, as in the base- line scenario, roads still dominate in the capi- tals costs. Using these capital cost estimates, the sus- Figure 2.33 Baseline Scenario: Estimate of Taxes, User Fees, and Initial tainable neighborhood scenario results in about Development Cost Charges US$5,200 in operating costs for each residen- Source: Fort St. John (2009). tial unit, which is about 25 percent less than the baseline scenario (figures 2.35 and 2.36). The time. The true annual life-cycle cost per house- estimated operating cost of the water pumping hold (US$8,432) is about 30 percent more than station is included in user-defined costs. the initial operating cost calculated for each Annualized life-cycle costs for the sustain- residential unit (US$6,520) (figure 2.32). able alternative are estimated at US$6,053 per unit, or about 17 percent more than the initial The taxes, user charges (such as the charges operating costs (US$5,185) (figures 2.37 and for garbage collection), and initial develop- 2.38). This difference is about half the differ- ment cost charges were roughly estimated for ence for the baseline scenario, mainly because the baseline scenario (figure 2.33). It had not of the larger number of households sharing the been decided how Fort St. John would share or infrastructure more efficiently. recover the development costs from the private These initial results indicate that per unit sector; so, these results are hypothetical. taxes in the sustainable neighborhood may be slightly lower (mainly because of the smaller Sustainable neighborhood: Costs and value homes) and that the initial development charges Using typical costs for roads, sewerage, water would also be lower than those in the baseline supply, schools, and other services, one sees scenario (figure 2.39). 150 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.34 Sustainable Neighborhood Scenario: Initial Capital Costs per Unit Source: Fort St. John (2009). Figure 2.35 Sustainable Neighborhood Scenario: Annual Operating Costs per Unit Source: Fort St. John (2009). Figure 2.36 Sustainable Neighborhood Scenario: Graphic Representation of Initial Capital Costs and Annual Operating Costs per Unit Source: Fort St. John (2009). A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 151 Figure 2.37 Sustainable Neighborhood Scenario: Representation of True Life-Cycle Costs, Including Replacement Source: Fort St. John (2009). Figure 2.38 Sustainable Neighborhood Scenario: Graphic Representation of True Life-Cycle Costs Source: Fort St. John (2009). Comparative analysis of costs and value Figure 2.40 demonstrates the huge savings in initial capital costs in the sustainable neigh- borhood scenario relative to the baseline sce- nario. Decision makers may emphasize this substantial savings in their effort to overcome reluctance and pursue innovative solutions. Figure 2.41 illustrates the modest reductions in operating costs per household for the sus- tainable neighborhood scenario mainly because more households share the infrastructure. In addition, the costs of schools are distributed among more homes with fewer children. Figure 2.39 Sustainable Neighborhood Scenario: Estimate of Taxes, User Fees, and Initial Development Cost Charges Figure 2.42 illustrates the significant reduc- Source: Fort St. John (2009). tions in estimated annual municipal costs and necessary revenues for the sustainable neigh- borhood over a 75-year period. Figure 2.43 summarizes the estimated an- nual life-cycle costs per household for the two neighborhoods over a 75-year period. 152 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.40 Comparison of Baseline and Sustainable Neighborhood Scenarios: Initial Capital Costs Source: Fort St. John (2009). Figure 2.41 Comparison of Baseline and Sustainable Neighborhood Scenarios: Annual Operating Costs Source: Fort St. John (2009). Figure 2.42 Comparison of Baseline and Sustainable Neighborhood Scenarios: Annual Municipal Costs and Necessary Revenues over 75 Years Source: Fort St. John (2009). Insights from the LCC Case Study specifics of development are not sufficiently certain at this conceptual level to obtain highly Specific development cost inputs must be accurate results. Furthermore, the way in updated as design continues which Fort St. John, as the landowner, will There are many hard and soft cost assumptions handle development costs and municipal ser- built into the model that are fairly reliable be- vice costs by recovering them through sales cause they are taken from national databases and development cost charges has not been de- and localized to Fort St. John. However, the termined. For the moment, it has been assumed A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 153 Figure 2.43 Comparison of Baseline and Sustainable Neighborhood Scenarios: Annual Life-Cycle Costs per Household Source: Fort St. John (2009). that the city will carry approximately 20 per- 1. Land price: this is approximately 25 per- cent of the service costs and pass 80 percent on cent below a single-family lot because of to the developer. Municipal costs and revenues the smaller land area and lower servicing are thus preliminary. However, once the costs. spreadsheet model has been set up, it may 2. Home price: this is approximately 35 per- readily be updated to test more detailed sce- cent below a single-family lot because of narios before decisions are finalized. the smaller home size and the economies LCC helps clarify the greater affordability of duplex construction. This also accounts and value of sustainable options for the slightly higher cost of higher-quality In the sustainable neighborhood scenario, the energy-efficient construction. effects on home prices and operating costs are 3. Operating cost: for a minilot duplex home not explored in detail. Clearly, the compact de- may, this be about 50 percent less than the velopment form results in savings on municipal corresponding cost of a single-family home services per household that may be passed on to because of energy efficiency, water savings, residents through lower purchase prices or more durable construction, and the re- rents. In addition, the sustainable neighborhood duced yard area to maintain. scenario assumes smaller home sizes that re- duce capital costs per household. For example, a In today’s world of economic uncertainties typical minilot duplex may be around 120 to 200 and unstable costs for energy and services, square meters (1,300 to 2,200 square feet); this one may confidently say that the more com- compares with 220–300 square meters (2,400– pact, more energy-efficient, and more durable 3,200 square feet) for a typical detached single- home is likely to retain its value much better family home (median 60 percent less floor area). than the large, inefficient homes of the past. Furthermore, green, energy-efficient building standards are proposed for the sustainable LCC is especially effective in helping the neighborhood that will result in lower operating municipality cope with future costs costs and lower repair and replacement costs Every established city today is facing trouble (because these are more durable homes). managing the replacement costs of declining It has been estimated that the median price infrastructure. Some are in a more serious of a minilot duplex is lower than the price of a situation than others because of low revenues standard single-family lot in the following or- in a declining economy and deferred replace- der of magnitude: ments that are long overdue. At the same time, 154 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES there have been major increases in capital tool that builds the capacity of planners, deci- costs over the past few years because of the sion makers, and industry to implement re- demand for global construction materials, en- newable energy, cogeneration, and energy effi- ergy prices, and other factors. In short, times ciency projects (figure 2.44). The software, are difficult for financing infrastructure, but provided free of charge, may be used world- opportune for innovative solutions. wide to evaluate the energy production, energy As cities look to the future, it will be increas- savings, costs, emission reductions, financial ingly important to adopt development solu- viability, and risks associated with various tions that reduce future municipal costs and types of renewable energy and energy-efficient increase resiliency. The sustainable neighbor- technologies. Available in multiple languages, hood example offers much lower capital costs the software includes product, project, hydrol- per unit, reduced municipal costs, lower costs ogy, and climate databases, a detailed user to residents, and better value in the long term. manual, a case study–based college- or univer- It is also a more adaptable model, offering more sity-level training course, and an engineering options for a wider demographic with high en- e-textbook. By using the software to explore vironmental quality and social amenities. The options at the outset, cites may greatly reduce simple LCC tool has helped the city clarify these the cost of prefeasibility studies. The rigorous benefits prior to making any decisions about structure of the software model also helps en- how to proceed. A number of other tools are sure that decision makers are fully informed available that perform similar functions; adopt- and that analysts are trained in assessing the ing an appropriate choice of tool is a key part of technical and financial viability of projects of capacity building for the Eco2 pathway.1 all kinds. The software is sponsored by the gov- ernment of Canada and has received contribu- LCC for a single infrastructure facility tions from many universities. It has been used While Fort St. John has used LCC for commu- in almost all countries. nity-wide planning, the LCC tool may also be applied to infrastructure facilities on a case-by- case basis. One of the challenges in integrated design is the ability to assess quickly a range of engineering options in infrastructure. How does one obtain informed estimates of the per- formance of different technologies without commissioning an expensive series of feasibili- ty studies? Where might one find engineers and economists with sufficient experience to com- pare the alternatives fairly over the life cycle? The solution usually involves the application of scalable spreadsheet tools that allow users to plug in default values established in previous projects in other locations and to alter assump- tions rapidly as the design concept evolves and new information becomes available. An example of an LCC tool for infrastruc- Figure 2.44 RETScreen Software ture facilities is the RETScreen Clean Energy Source: Natural Resources Canada. Project Analysis Software, a decision support A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 155 As part of the RETScreen Clean Energy primary benefits is the fact that the RETScreen Project Analysis Software, an emission analysis software facilitates the project evaluation pro- worksheet is provided to help the user estimate cess for decision makers. The financial analysis the greenhouse gas emission reduction (miti- worksheet covers financial parameter input gation) potential of the proposed project. A items (for example, the discount rate and the cost analysis worksheet is used to help the user debt ratio) and calculated financial viability estimate the costs (and credits) associated with output items (the internal rate of return, simple the proposed case. These costs are addressed payback, net present value, and so on) and from the initial or investment cost standpoint allows project decision makers to consider var- and from the annual or recurring cost stand- ious financial parameters with relative ease. point. The user may refer to the RETScreen A sensitivity and risk analysis worksheet is Product Database for supplier contact infor- provided to help the user estimate the sensitiv- mation to obtain prices or other required infor- ity of important financial indicators in relation mation. to key technical and financial parameters. This A financial analysis worksheet is provided standard sensitivity and risk analysis work- for each project evaluated (figures 2.45 and sheet contains a settings section and two main 2.46). This financial analysis worksheet con- sections: sensitivity analysis and risk analysis. tains six sections: financial parameters, annual Each section provides information on the income, project costs and savings–income relationship between the key parameters and summary, financial viability, yearly cash flows, important financial indicators, showing the and cumulative cash flow graphs. One of the parameters that have the greatest impact on Figure 2.45 An Example of a RETScreen Financial Summary Source: Author compilation (Sebastian Moffatt). Note: The summary refers to the financial viability of a wind energy system for Squamish, Canada. 156 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES the financial indicators. The sensitivity analy- ment. Stockholm developed this tool to dem- sis section is intended for general use, while onstrate how decisions and strategies in urban the risk analysis section, which performs a development might prove significantly more Monte Carlo simulation, is intended for users beneficial in enhancing long-term environ- with knowledge of statistics. mental and urban sustainability. The environmental load profile Environmental Accounting The ELP is a life-cycle assessment-based tool built on defining relevant activities from an In Stockholm, the municipal government, to- environmental perspective and on quantify- gether with the Royal Institute of Technology ing the environmental loads originating from and an engineering consultant firm, has created these activities, such as emissions to air, soil, a tool to help plan and assess the development and water, as well as the use of nonrenewable of Hammarby Sjöstad, a southern city district. energy resources. It takes into account all The tool, called the environmental load pro- activities related to a project, such as materi- file (ELP), has proven successful in evaluating als, transport (transport of materials, supplies, and providing critical feedback to Stockholm’s and persons), machinery, electricity, heating, cutting-edge initiative in sustainable develop- and materials recycling. Figure 2.46 An Example of a RETScreen Financial Summary Visual Source: Author compilation (Sebastian Moffatt). Note: The financial summary refers to a wind energy system for Squamish, Canada. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 157 Figure 2.47 The Environmental Load Profile Source: Brick (2008). Note: Environmental loads are quantified for different services and levels, and the results may be totaled to reflect any combination of concerns. The main strength of the ELP is that the tool materials, personal transportation, and the is flexible and dynamic, which makes it suit- transport of goods). By aggregating all factors, able for application both as a planning tool the environmental load of the whole city dis- and as an evaluation tool. By factoring in vari- trict may be analyzed. If each factor is analyzed ables, one may use the ELP to calculate the separately, the various activities of the city may environmental loads that various planning de- provide useful information for city planning. cisions will generate at various project phases, The ELP enables comparisons among alter- including construction, use, demolition, and native designs, construction, and infrastruc- redevelopment (figure 2.47). It is also possible ture. The ELP encompasses two life-cycle to test scenarios. For instance, one may com- calculations: pare the environmental performance of differ- • Effects from each of the life-cycle stages: ent construction methods prior to making a construction, operation, and dismantling decision on which method to use. Hence, it is possible for decision makers to include envi- • Effects from the life cycle of the building ronmental concerns early in the process. materials and electricity flowing in and out The ELP may also be used to evaluate the of buildings and the city district environmental performance of an existing city district or building based on the consumption The ELP in the follow-up to of resources such as water and energy during Hammarby Sjöstad the usage phase. The ELP enables analyses of In Stockholm’s Hammarby Sjöstad project, the environmental performance at multiple levels. city imposed tough environmental require- The tool takes into account activities associat- ments on infrastructure solutions and technical ed with individuals (for example, cooking and installations in buildings. Since 2002, when the laundry); buildings (such as building materials, first area, Sickla Udde, was completed, environ- district heating, and electricity); the unbuilt mental goals and performance have been moni- real estate area (materials, working machines, tored using the ELP’s different indicators. Fig- and so on); and the common area (for instance, ure 2.48 illustrates the results from four of the 158 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.48 ELP-Related Achievements in Hammarby Sjöstad Source: Grontmij AB. Note: The figure shows environmental impacts per apartment and year compared with the reference. The ELPs illustrate the effect of the property developer’s measures and the effects of improved energy production and wastewater management (Levin and Rönnkvist-Mickelsson 2004). areas. Relative to a reference scenario, the results propriate societal and financial environmental were a 28–42 percent reduction in nonrenew- measures in the continued development of the able energy use, a 41–46 percent reduction in district. The results of the monitoring may also water use, a 29–37 percent reduction in global be useful in planning or undertaking similar warming potential, a 33–38 percent reduction projects. in photochemical ozone creation, a 23–29 per- cent reduction in acidification potential, a 49–53 The ELP in the planning process percent reduction in eutrophication potential, Environmental planning has not been the and a 27–40 percent reduction in radioactive norm in the past, and it is apparent that there waste. is still much room to improve the environ- The overall environmental goal set for Ham- mental impacts of urban development initia- marby Sjöstad is to reduce environmental loads tives. The availability of a proactive approach by half relative to urban development loads in and the ability to analyze the potential for en- the early 1990s. Even though this goal of twice hancement in the planning process make it as good has not yet been reached, the reduc- more likely that one will adopt cost-effective tions in the environmental loads in the area are measures that contribute significantly to in- significant. The main contributor to the im- creased sustainability. Improvements may be provements has been effective planning in the possible in three areas: (1) the upstream sys- area, such as planning for district heating, ur- tem (streams of materials and services flow- ban transportation, waste, and wastewater ing into the area), (2) the core system (the management. project), and (3) the downstream system (the Monitoring in the Hammarby Sjöstad envi- management of waste flows and the reuse of ronmental program has contributed to the materials), as follows: technical and economic understanding of ap- A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 159 1. Improvements in the upstream system may Foresight Workshops and be realized through enhanced energy pro- Resiliency Planning duction (electricity and heating) and raw materials production. A method for mitigation and adaptation 2. Improvements in the core system may be is needed realized through advances in construction Credible forecasting is essential for all devel- and maintenance; the installation of solar opment planning. All cities require the capac- cells or heat recovery systems; and human ity to forecast. A city’s land use plan is typi- behavioral change, particularly by promo- cally driven by population and economic tion of energy conservation. demand and relies on plausible forecasts of the demand for land and services. Thus, cred- 3. Improvements in the downstream system ible forecasting is a necessary part of direct- may be realized through improved waste ing public investments and is essential for and wastewater management, including gaining support from potential financial part- recycling and reuse. ners and other stakeholders. By using the ELP in the planning process, one Forecasting is always a challenge. The de- may analyze various options and vet various mand for services of any type may vary greatly, interventions from an environmental point of depending on the assumptions made regarding view (figure 2.49). By adding the cost of envi- population growth, occupant lifestyles, new ronmental impacts to the analysis of alterna- technology, and the pace of development. tives, one may visualize the life-cycle perspec- Transformative forces may also influence de- tive. The ELP allows for comprehensive mand. For example, population migration, cli- assessments and more precise target setting. mate change, and globalization may lead to By following up on outcomes and providing large-scale changes in the local demand for feedback to stakeholders and actors, the ELP land and services. A rise in sea level might alter also contributes to building knowledge and the location of shorelines and dislocate neigh- fostering improvements. It is becoming more borhoods and infrastructure. The increased important to have good decision-making tools frequency of wind storms might require more such as the ELP. space dedicated to tree breaks, pedestrian shel- ters, and underground services. A global eco- nomic crisis, fuel price increases, or changes in Figure 2.49 Opportunities to Reduce Environmental Impacts Source: Brick (2008). Note: The figure illustrates opportunities to reduce environmental impacts in the building sector in the upstream system, the core system, and the down- stream system. 160 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES rainfall patterns might boost the need for food pare the demand forecast with the supply security and require more space and water for forecast and identify gaps for specific types urban gardens and local agriculture. The range of housing. The same forecast provides a of threats and mitigation plans for cities today basis for estimating gaps in infrastructure covers a broad spectrum and is subject to con- capacity in terms of roads, transport, water, stant change. and energy. In reality, the forecasting challenge far ex- A similar forecasting process may be used for ceeds the capacity of any city. The best place to commercial and industrial demand and supply. begin is to generate the best possible demand Ideally, because of interdependencies, residen- and supply forecasts, using whatever data and tial forecasts and commercial and industrial practical models are available. Over time, it forecasts should be considered together. becomes possible to augment such forecasts with insights on how changes in climate, tech- Foresight workshops are helpful in under- nology, and other external factors might influ- standing the impacts of external forces ence key assumptions. A number of techniques have been developed specifically to engage large groups of experts The first step is developing the capacity in envisioning the long-term future and devel- for forecasting land use demand oping appropriate design strategies. Some At a minimum, standardized methods should traditional foresight tools have proven quite be used to estimate the demand for housing, difficult to apply; for example, the Delphi commercial space, and industry. The demand technique developed by RAND researchers in is driven by population growth and economic the 1950s has not been particularly successful indicators. Generally, the process begins by as a predictive method. However, a host of assuming reasonable population growth rates other visioning and exploring techniques may under margins of uncertainty over a 30-year now be used to bring groups of experts period. This creates both high- and low- together as part of groups of research and growth scenarios. reflection or in workshops on future urban Population growth is translated into hous- issues. Such techniques may be referred to as ing demand by dividing the population into creativity tools; they include trial and error, subsets based on age and socioeconomic sta- brainstorming, morphological analysis, the tus. One then associates a propensity for differ- method of focal objects, and lateral thinking. ent types of housing with each subset: low-rise In urban planning and design, communicative apartments, large detached houses, high-rise planning has been promoted as a field-tested dwellings, and so on. Predictions may thus be method for engaging stakeholders and experts generated on the demand for different types of in a more dynamic, open-ended enquiry. An housing. example is the European Awareness Scenario The second challenge is to forecast supply. of the Sustainable Cities Program (for example, Ideally, this is accomplished using a GIS tool see Bilderbeek and Andersen 1994). Extensive that allows for easy contingent analysis. Exist- engagement exercises of this type have, at ing zoning or a set of zoning options is used as times, been intellectually and physically try- a basis for equating land areas with potential ing for participants. They are thus accompa- numbers of housing by type. Based on these nied by some risk that stakeholders may lose assumptions, each area of land has a build-out interest. In this context, the success of collab- capacity, and this limits the supply of units orative planning may depend on tools that in the city. It is then a simple matter to com- promote a simpler systems approach and A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 161 involve stakeholders in more intense, time- and then discussed at a nontechnical level limited exercises such as design charrettes with a view to reinforcing a systems perspective. and foresight workshops. These diagrams may also provide a foundation A foresight workshop consists of a progres- for more complex modeling among groups. sive series of presentations and exercises An example template for an influence dia- intended to introduce designers and planners gram is shown in figure 2.50. Each unique to the potential for proactive risk management chain of cause and effect leads to potential through resilient land use and infrastructure impacts on the economic, social, and environ- design. Typically, it begins with an exploration mental features of the region. With help from of the possible impacts of external forces on specialists, subteams may use such diagrams to urban and rural systems within the region. A map chains of cause and effect and the impacts summary presentation or a set of papers may be on the four capitals in the case of each major provided that covers the local context in terms force and urban system. of the five major forces: demographic, climate Through influence diagrams, the interdis- change, technological change, globalization, ciplinary subteams may then explore specific and sudden shocks. Foresight papers review interventions or alternative designs for miti- the patterns and trends in each force and exam- gating any significant negative impacts. In ine how this force might affect the urban region. this way, the influence and intervention dia- As part of the workshop, subteams may ex- grams become a framework or mind-map, plore the possible influences of the forces on helping interdisciplinary groups to explore various urban systems: mobility, housing, build- the longer-term vulnerabilities of the region ings, land use, energy, materials and waste, water, and then to develop mitigation strategies. A health, information and communications, secu- foresight workshop may orient design teams rity, agrifood, and the economy. The subgroups to unfamiliar topics, such as security and re- may use graphical tools to assist in forecasting. siliency. Such a workshop also initiates capac- Decision trees, influence diagrams, and be- ity building in the larger field of resiliency lief nets are examples of tools that support the planning. Most designers and planners have front end of a decision analysis. A particularly little understanding of future studies, includ- effective technique is to use influence dia- ing on such topics as technology scans, S grams to structure and facilitate dialogue. For curves and innovation cycles, risk manage- many people, an influence diagram is the easi- ment, and the accelerating pace of change in est way to understand a series of chains of many urban systems. While many of these cause and effect, although, strictly speaking, concepts are difficult to grasp and integrate the causality is not always direct or restricted into daily practice, the foresight workshop ex- to the elements shown. Thus, terms such as ercises allow pragmatic issues to be discussed influence or relevance are used. These diagrams and complex concepts to be presented in vi- are easy to draw, and they are intuitive; they sual formats that are easy to understand and allow straightforward numerical assessments. reference. Most important, they visually communicate A foresight workshop also creates the pos- independencies among variables. By visually sibility for generating initial design solutions displaying changing assumptions, they allow that promote resiliency. The workshops repre- groups to focus on internal dependencies as sent opportunities to explore adaptable designs. a whole, rather than in disjointed sections. Designs that are versatile and durable favor Aspects of inference, prediction, and decision simplicity, factor in redundancy, allow up- may be drawn using simple nodes and arrows grades, opt for independence, and minimize 162 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 2.5 0 Template for an Influence Diagram Source: Author elaboration (Sebastian Moffatt). Note: The figure shows a typical template for the development of influence diagrams visually to represent chains of cause and effect in forces and urban subsystems. A C I T Y- B A S E D D E C I S I O N S U P P O RT SYST E M | 163 destructive change. The workshops are also References chances to demonstrate the benefits of ecologi- cal design solutions, such as compartmental- Bilderbeek, Rob H., and Ida-Elisabeth Andersen. 1994. ization and modularization, which help reduce “European Awareness Scenario Workshops: Organizational Manual and Self-Training the vulnerability of systems to the failure of Manual.” Report STB/94/045, Sustainable Cities any single part. Program, Center for Technology and Policy Studies, Apeldoorn, the Netherlands. Brick, Karolina. 2008. “Barriers for Implementation of the Environmental Load Profile and Other Note LCA-Based Tools.” Licentiate thesis, Royal Institute of Technology, Stockholm. 1. InfraCycle is another example of a commercial Fort St. John. 2009. “Sustainable Neighbourhood spreadsheet application that helps cities calculate Concept Plan.” Prepared by Sheltair Group, the capital, maintenance, replacement, and LCC analysis by David Rosseau. http://www. operating costs of all municipal infrastructure fortstjohn.ca. and estimate future revenues. See http://www. Levin, Per, and Therése Rönnkvist-Mickelson. 2004. infracycle.com/. Rapportsammanfattning—Uppföljning av miljöbelastning och ekonomi i Hammarby Sjöstad, Sickla Udde. Stockholm: Carl Bro AB. 164 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES PART 3 The Field Reference Guide A City-by-City and Sector-by-Sector Lens on Urban Infrastructure ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES T he Eco2 Field Reference Guide is a tech- of sector notes, each of which explores sector- nical resource especially tailored to specific issues that pertain to urban develop- build ground-level and technical knowl- ment. The sectors include energy, water, trans- edge. It contains background literature de- portation, and solid waste. The section also signed to support cities in the development of includes a note on managing the spatial struc- in-depth insight and fluency on relevant issues ture of cities. Together, these sector notes pro- at two levels. This section provides a city-by- vide insights on how each sector functions and city and sector-by-sector lens on urban infra- how they interrelate. As we view these issues structure. It begins with a series of case studies through a city-by-city and sector-by-sector on good-practice cities around the world. Each lens, the bigger picture starts to emerge. Final- city offers a separate example of ways in which ly, part 3 concludes with information on the the various elements of the Eco2 approach may specific financial instruments of the World be applied. The next section comprises a series Bank Group and some multidonor funds. 166 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Eco2 Case Studies Good-Practice Cities | 167 CASE 1 Curitiba, Brazil Cost Is No Barrier to Ecological and Economic Urban Planning, Development, and Management The case of Curitiba, Brazil, shows that cost is no barrier to ecological and economic urban planning, development, and management. Curitiba has developed a sustainable urban environment through integrated urban planning (figure 3.1). To avoid unplanned sprawl, Curitiba Figure 3.1 Curitiba Cityscape directed urban growth linearly along strategic Source: Institute for Research and Urban Planning of Curitiba (IPPUC). axes, along which the city encouraged high- density commercial and residential develop- and attractive to citizens. Crime has also de- ment linked to the city’s integrated master creased. In addition, citizens, particularly plan and land use zoning. Curitiba adopted an the poor, are provided with opportunities to affordable but innovative bus system rather participate in environmental activities and than expensive railways that require signifi- educational programs. cant time to implement. Curitiba’s efficient The social, economic, and environmental el- and well-designed bus system serves most of ements of sustainable development in Curitiba the urban area, and public transportation have been facilitated by integrated land use, (bus) ridership has reached 45 percent.1 The public transportation, and street network plans city now has less traffic congestion, which (figure 3.2). Much of the success may be attrib- has reduced fuel consumption and enhanced uted to the Institute for Research and Urban air quality. The green area has been increased, Planning of Curitiba (IPPUC), an independent mainly in parks that have been created to public authority that handles not only research improve flood prevention and through regula- and planning, but also the implementation and tions that have enabled the transfer of devel- supervision of urban plans. IPPUC has coordi- opment rights to preserve green areas and nated the various aspects of urban development cultural heritage zones. As part of efforts to and ensured continuity and consistency in plan- concentrate shops and facilities in the city ning processes amid turnover in city adminis- center and along dense axes, Curitiba’s car- trations. This is an illustration of successful free central city zone (including its main path dependency in urban development in streets and recreational facilities such as terms of the spatial, institutional, and cultural parks) has become more walkable, lively, aspects. THE FIELD REFERENCE GUIDE | 169 R.B. de GUYANA Fr. Guiana (Fr) IBRD 37443 JANUARY 2010 VENEZUELA SURINAME COLOMBIA AT L AN TI C OC E A N Profile of Curitiba and the Curitiba Metropolitan Region ECUADOR Curitiba • The capital of the State of Paraná, in the south of Brazil BRAZIL • Land area: 432 km2 PERU • Population (2008): 1.83 million Brasília • Annual population growth rate: 1.86 percent BOLIVIA PA C I F I C • The city is bordered by the Iguaçu River to the east and Passaúna Park to the OC E A N west. PARAGUAY • The city is located at the center of Brazil’s largest economic corridor, which in- Curitiba cludes Brasília, Porto Alegre, Rio de Janeiro, and São Paolo, and near major cities, BRAZIL ARGENTINA AT L A NTI C such as Buenos Aires and Montevideo, in other South American countries. OC E A N URUGUAY 500 km. Curitiba Metropolitan Region • Consists of 26 municipalities, including Curitiba Map 3.1 Location of Curitiba • Land area: 15,622 km2 Source: Map Design Unit, General Services • Population (2008): 3.26 million Department, World Bank. • Population growth rate: 2.01 percent Population Growth in Curitiba YEAR 1960 1970 1980 1991 2000 2007 2008 Population (1,000s) 361 609 1,025 1,31 5 1,587 1,797 1,828 Population density (persons per km2) 836 1,410 2,373 3,044 3,674 4,161 4,232 Green area (km2 per person) — <1 — — — — 51.5 Source: IPPUC, http://ippucnet.ippuc.org.br (accessed January 15, 2009); data for 2008 from IPPUC (2009a). Note: — = not available; km2 = square kilometers Approaches and center (figure 3.3). Major economic activities Ecological and are concentrated along these corridors, and the Economic Benefits city appears to have a linearly formed down- town. At the same time, the city center was rein- Curitiba took various in- forced with high-density development (figure novative approaches to 3.4). The structured corridors became major ecological and economic public transportation routes under a bus rapid urban planning. The fol- transit (BRT) system that includes dedicated Figure 3.2 Policy Integration in Curitiba lowing are the seven major lanes and bus stops nearly every 500 meters. Source: IPPUC approaches. To realize this plan and guide linear urban growth, Curitiba implemented detailed zoning Innovative land use planning integrated plans that reflect the master plan’s strategic vi- with transportation planning sion, geographical and geological constraints, Urban sprawl and concentrated traffic in Cu- water and wind directions, Curitiba’s industrial ritiba’s downtown area were anticipated be- profile, and urban cultural and social factors. In cause of rapid population growth. The city for- 2000, Curitiba had 50 types of specific zoning mulated a master plan in 1966 that integrated categories (figure 3.5). Each zoning category land use and transportation plans. Curitiba de- defines requirements related to land use, build- cided to direct urban growth linearly by desig- ing-to-land ratios, floor area ratios, and maxi- nating structural axes radiating from the city mum building heights. For example, in the city 170 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Master Plan 1966 Changing growth patterns to linear growth The 2004 Plan Metropolitan Vision Figure 3.3 Urban Growth Axes in Curitiba Figure 3.4 Density of Curitiba, 2004 Figure 3.5 Zoning in Curitiba, 2000 Source: IPPUC (2009a). Source: IPPUC, http://ippucnet.ippuc.org.br Source: IPPUC, http://ippucnet.ippuc.org.br (accessed (accessed January 15, 2009). January 15, 2009). center area, the zone ZC category allows the permitted only in areas reachable by public development of residential apartments and transportation. Because Curitiba was designed commercial and service facilities (except su- for people, not cars, public transportation permarkets) subject to specific parameters: coverage and service frequency are critical. Bus floor area ratios up to 5, first-floor building-to- service reaches almost 90 percent of the city land ratios up to 100 percent, and no limit on area, and all users may access public transpor- building heights in most areas. (However, to tation services by walking less than 500 meters ensure aesthetics, buildings are normally lim- (figure 3.6) (IPPUC 2009a). Bus routes are ited to 20 floors, and some areas are subject to serviced nearly every five minutes. Curitiba building height limitations to secure flight initially acquired land and reserved rights-of- routes.) In addition, many zones facing struc- way along the strategic axes, which enabled the tural axes (that is, zone SE) allow the develop- city to build social housing in these areas. Sub- ment of residential apartments and commer- sequently, major economic activities and urban cial and service facilities with floor area ratios functions, including residential neighborhoods up to 4, first-floor building-to-land ratios up to and schools, were reorganized densely along 100 percent, and no limit on building heights in these axes. most areas. (As in zone ZC, buildings are nor- To accommodate BRT routes and fulfill mally limited to 20 floors to ensure aesthetics, transportation needs along the axes, the city and some areas are subject to building height designated functions to existing roads under its limitations to secure flight routes; see Hattori trinary road system. The five major axes now 2004, Prefeitura Municipal de Curitiba 2000.) accommodate both dedicated BRT lanes and To shift the land use and growth pattern roads to access buildings. Cars that do not need into linear forms and to provide good access to to access services along the axes may bypass transportation services, new development was these areas by using roads parallel to the axes THE FIELD REFERENCE GUIDE | 171 2009 Figure 3.6 Evolution of the Integrated Bus Network in Curitiba, 1974–95 and 2009 Source: IPPUC (2009a). Figure 3.7 The Trinary Road System in Curitiba Source: Author compilation (Hinako Maruyama) based on IPPUC (2009a), Hattori (2004), and pictures supplied by IPPUC. Note: km/h = kilometers per hour. (figure 3.7). In addition, to avoid concentrated efficiently controlled and defined. Traffic is di- traffic in the city center, a previous mayoral ad- verted from the city center or the axes thanks ministration transformed selected streets in to an effective mixture of land use planning the city center into pedestrian walkways on and a well-conceived public transportation which cars are prohibited. network. Because housing, service facilities, Through these measures, Curitiba’s spatial and job centers have been incrementally devel- growth and urban land use patterns have been oped along the axes and linked to the BRT sys- 172 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES tem, the distances between homes, jobs, and tion, emissions of greenhouse gases that affect schools have shortened, and many people travel climate change have declined. by bus. Bus ridership as a share of all commut- Traffic flow has been diversified by assign- ing trips reaches 45 percent, and 70 percent ing a logical and efficient road hierarchy, which of these bus trips bypass the downtown area has obviated the need to undertake substantial (IPPUC 2009b). As a result, the city has re- remedial works, such as widening street space duced car emissions and traffic congestion, (which may entail destroying buildings and thereby saving time and enhancing economic disrupting neighborhoods). By making the most activity. A calculation based on 2002 data has of infrastructure and adding new functions and estimated that Curitiba loses R$2.55 million traffic rules, the city has saved on construction annually (US$1.20 million) because of time lost costs. By avoiding extensive unplanned urban to severe traffic congestion (table 3.1). Curitiba’s sprawl, its investment in infrastructure has per capita loss from severe congestion is about been minimized and concentrated along the 6.7 and 11 times less than the corresponding axes, and the installation of water pipes or cables losses in Rio de Janeiro and São Paulo, respec- into new areas has been avoided. More people tively. In 2002, Curitiba’s annual fuel losses from now come to the city center because they are severe traffic congestion equaled R$1.98 million able to walk pedestrian streets, increasing (US$0.93 million). On per capita terms, this is the economic opportunities for local shops rela- about 4.3 and 13 times less than the losses in tive to streets with a predominance of car traffic. Rio de Janeiro and São Paulo, respectively (CNT 2002; Vassoler 2007). In contrast, in 2000, con- The integrated public transportation gestion in 75 metropolitan areas in the United system States caused fuel and time losses valued at The construction cost of Curitiba’s BRT system US$67.50 billion (Downs 2004). Curitiba’s fuel was US$3 million per kilometer, which was usage is also 30 percent lower than the usage in more affordable than a tram system (a cost of Brazil’s other major cities (Friberg 2000). US$8 million to US$12 million per kilometer) Reduced car emissions have decreased air pol- or a subway (US$50 million to US$100 million lution, which threatens public health. Curitiba per kilometer) (Friberg 2000). Along the main now has one of the lowest rates of ambient air axes, the BRT system functions much as a sur- pollution in Brazil (Leitmann 1999). In addi- face subway system would. Moreover, com- Table 3.1 The Time and Fuel Losses Caused by Congestion CURITIBA, BRAZIL SÃO PAULO, BRAZIL RIO DE JANEIRO, BRAZIL UNITED STATES TOKYO, JAPAN LOSS 2002 2002 2002 2000 1994 Time loss Total, US$ millions/year 1.20 79.94 27.48 — — Per capita, US$/year 0.67 7.34 4.51 — — Fuel loss Total, US$ millions/year 0.93 73.23 13.47 — — Per capita, US$/year 0.52 6.72 2.21 — — Time and fuel losses Total, US$ millions/year 2.1 3 153.17 40.94 900a 49,000b Per capita, US$/year 1.19 14.07 6.72 — 4,1 00b Sources: For Brazil: CNT (2002), Vassoler (2007); for the United States: Downs (2004); for Tokyo: TMG (2000). Note: Data are for reference only. Calculation methods for Brazil, United States, and Tokyo may be different and are not necessarily comparable. — = not available. a. Average across 75 metropolitan areas. The total for these areas was US$67.5 billion. b. Calculation based on the loss of travel speed from 30 kilometers per hour to 18 kilometers per hour. THE FIELD REFERENCE GUIDE | 173 pared with a normal bus system, BRT run ter and need to travel shorter distances. About times are two-thirds less, while the costs are 80 percent of all residents are estimated to ben- 18 percent less owing to several factors, includ- efit from the flat-rate fare (Hattori 2004). Fre- ing a 72-kilometer dedicated BRT lane, a fare quent high-quality services and inexpensive system requiring payment before boarding, bi- fares encourage people to use buses. Of all trips, articulated buses (articulated buses with three 45 percent are made in buses, 5 percent by bi- cabins instead of two), and a tube-shaped bus cycle, 27 percent on foot, and 22 percent by pri- station that eases bus entry and exit (figure 3.8) vate car, which is surprisingly low given that (Hattori 2004). Curitiba has the second-highest rate of car The bus system is color coded and designed ownership in Brazil (IPPUC 2009a). for various scales and levels of service (interdis- Buses running on the BRT dedicated lanes trict, feeder, intermunicipal, and so on) to reach are bi-articulated, and the fleet is kept relatively more areas of the city (figure 3.9). The bus sys- young. The average age is a little more than tem has adopted a flat-rate “social” fare. No 5 years, and no bus is more than 10 years old. matter how far a passenger rides or how many The buses are well maintained and are less times the passenger transfers, the fare is the polluting. The greater carrying capacity of same. The poor tend to live in the urban periph- Curitiba’s bi-articulated buses (270 people) and ery and need to travel long distances to com- the reduced travel times associated with the mute, while the wealthy tend to live in the cen- use of these buses have resulted in 50 percent less energy consumption relative to nonarticu- lated conventional bus services (Hattori 2004, IPPUC 2009c, ). The BRT system pays for itself. Bus fares finance the system, generating profit for the bus companies and covering the costs of human resources and the maintenance and depreciation of buses without government subsidies. Accord- ing to a law established in 1990, transportation revenue is exclusively dedicated to paying for the BRT system (Friberg 2000). In comparison, Figure 3.8 Bi-articulated BRT Bus and Bus Station in Curitiba in some German cities with light rail, fare revenue Source: IPPUC. covers only 30 percent of the operating costs; federal government subsidies are thus required. In the United States, subsidies for light rail are often generated through consumption taxes (Hattori 2004). The operation of the BRT sys- tem in Curitiba is managed by Urbanização de Curitiba (URBS), a city agency, but is served by private bus companies. The bus companies are paid on the basis of distance traveled, not by number of travelers; so, they are encouraged to operate even in areas with relatively few riders. Moreover, people are more motivated to use the Figure 3.9 Color-Coded Buses in Curitiba buses because the service is frequent, afford- Source: IPPUC. able, and convenient. 174 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Green area enhancement and flood control To improve the quality of the lives of its citizens, Curitiba decided to enhance the green areas and recreational facilities within the city, including parks and bicycle paths. Because Curitiba is sur- rounded by rivers such as the Iguaçu, flooding has been a big problem. However, instead of controlling water flow using concrete structures, Curitiba has created natural drainage systems. Riverbanks have been converted into parks where overflow water may be absorbed in the soil, and lakes have been constructed to contain Figure 3.10 Barigüi Park, Curitiba floodwaters. River and rainwater flooding may Source: IPPUC. be held naturally in the lakes and parks sur- Note: This area was once flood prone and occupied by slum dwellers. It is now a converted 140-hectare park with a 40-hectare lake. rounding the lakes (figure 3.10). The ecosystem is thus preserved naturally. Because the park areas only gradually release flooded water that has been absorbed into the ground, rather than draining water rapidly through concrete drain- age conduits into rivers, downstream flooding can be avoided. In addition, people are less exposed to flood-linked environmental hazards and diseases. Enormous expenditures are also avoided because there is less need for drainage canals, flood control measures, and flood dam- age repairs, including disease control measures. The cost of building parks and relocating favela (slum) dwellers has been estimated at five times less than the cost of building concrete canals Figure 3.11 Former Slums in Flood-Prone Areas in Curitiba (Vaz Del Bello and Vaz 2007). Source: IPPUC. Flood control areas are normally used as parks and recreational areas. Green areas have maintenance costs by 80 percent, while enhanc- been enhanced from less than 1 square meter ing the ecological image of the city. per person in the 1970s to 51.5 square meters Flood-prone land used to be occupied by slum per person today (ICLEI 2002; IPPUC 2009a). dwellers (figure 3.11). Curitiba acquired the land, There are 34 parks in the city, and green areas relocated the slum dwellers to better land, and cover about 18 percent of the urban land (Cu- provided compensation. After the park was ritiba S. A. 2007). Bicycle paths are provided established, the zone facing the park became along the streets and inside the parks. The total neighborhoods with high-end housing. Houses length of the bicycle network is about 120 kilo- with good views of the park and lake have high meters. Though park area has been expanded, real-estate values; thus, property tax revenue the city has lacked the budgetary resources to has increased. Property taxes collected from maintain park grass. Instead of hiring mowers, these high-end houses have been estimated at sheep are kept in the parks to eat grass and pro- the equivalent of the cost of park construction, vide natural fertilizer, which has reduced park including slum relocation and compensation. THE FIELD REFERENCE GUIDE | 175 Solid waste management Curitiba has several innovative programs in solid waste management. Curitiba’s landfill was strained, and the city did not have sufficient revenue to build an incinerator. To slow the growth of waste, Curitiba initiated unique waste management programs that depend on citizens rather than constructing new and expensive waste treatment facilities. What is innovative is that these programs have not only reduced the growth of waste, but also offered opportunities for poor people, which is one of the critical aims of the city. Curitiba’s Garbage That Is Not Garbage Pro- gram encourages people to separate discards into recyclable and nonrecyclable waste (figure 3.13). Figure 3.12 The Transfer of Development Rights for Environmental To raise awareness of this program, Curitiba Preservation in Curitiba educates children to understand the importance Source: IPPUC. Many trees are found in Curitiba. There are of waste separation and environmental protec- 300,000 trees along public streets that create tion. Campaign mascots have been created, and shade and prevent heating (IPPUC 2009b). school activities are regularly organized. One to Trees absorb pollutants and carbon dioxide three times a week, trucks collect paper, card- Curitiba’s reserved forest areas capture an esti- board, metal, plastic, and glass that have been mated 140 tons of carbon dioxide per hectare, sorted at homes. This recycling saves the equiv- which helps reduce negative impacts on climate alent of 1,200 trees a day, and information dis- change (IPPUC 2009b). In addition, the shade plays in local parks show the numbers of trees from trees cools buildings and the environment, that have been saved (Rabinovitch and Leitmann which saves energy.2 City regulations restrict 1993). Money raised through the sale of recy- the area of private land for development de- clables supports social programs, and the city pending on the ratio of land to forest or trees. To employs the homeless and people in alcohol re- encourage urban trees, the city offers landown- habilitation programs in the garbage separation ers compensation for planting, such as the plant. Recycling also leads to other benefits. For relaxation of floor area ratios and tax reduc- instance, recycled fiber is used to produce as- tions. For example, the city tax is discounted 10 phalt for roads. Recycling has also eliminated percent if a private landowner has one Paraná piles of discarded tires, which attract mosquitoes pine tree on his land. Also, rights to develop for- that transmit dengue disease. Proper tire collec- est areas may be exchanged for rights to develop tion has decreased dengue disease by 99.7 percent other city areas (figure 3.12). Guided by market (Vaz Del Bello and Vaz 2007). Nearly 70 percent principles, IPPUC regulates and monitors the of city residents participate in Curitiba’s recy- implementation, negotiation, and transfer of cling program. Around 13 percent of Curitiba’s development rights among interested parties waste is recycled, which greatly exceeds the (that is, private developers and landowners). As 5 and 1 percent recycling rates in Porto Alegre such, the city does not need to undertake reloca- and São Paulo, respectively, where education tion or assume the land acquisition costs of cre- on waste dissemination has not translated into ating green areas or preserving historical areas. significant impacts (Hattori 2004). 176 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES The Green Exchange Program was also central city. The industrial park has extensive started in Curitiba’s slum areas that are inacces- green areas encompassing 4,300 hectares and sible to waste collection vehicles (figure 3.13). is well connected to the bus network. Many To encourage the poor and slum dwellers to employees at the industrial park live nearby clean areas, and thereby improve public health, and commute by bicycle. The industrial park the city began offering bus tickets and vegeta- has strict environmental regulations. Polluting bles to people who brought garbage to neigh- industries are not allowed. borhood centers. In addition, children have After three decades, the Industrial City of been allowed to exchange recyclables for school Curitiba now hosts more than 700 companies, supplies, chocolate, toys, and show tickets. The including global firms such as information tech- city purchases vegetables at discounted prices nology companies and an automaker producing from farmers who have trouble selling abun- BRT buses. It has created about 50,000 jobs dant products. Through this program, the city directly and 150,000 jobs among secondary saves the costs of arranging waste collection in industries. About 20 percent of the exports of slum areas, which often have inadequate roads, the State of Paraná originate in the industrial and helps farmers unload surplus produce. The park, and the industrial park accounts for 25 program also helps improve nutrition, accessi- percent of the industrial tax revenues (state bility to transportation, and entertainment value added taxes on sales and services) of opportunities among the poor. Most important, the State of Paraná (Hattori 2004; Prefeitura slums are cleaner and have less disease incidence, Municipal de Curitiba 2009). and less garbage is being dumped in sensitive areas such as rivers. Social considerations Although Curitiba’s economy is relatively well The Industrial City of Curitiba developed compared with the economies of other In the 1970s, Curitiba’s economy was based Brazilian cities, many poor people still live in mainly on the service sector. To attract invest- slums. To encourage the poor to obtain jobs and ment, boost employment, and reduce poverty, to promote an inclusive community, Curitiba has IPPUC decided to introduce manufacturing adopted various innovative social approaches. industries. To further this goal, the local gov- The city converted the undeveloped land un- ernment established the Industrial City of der a high-voltage line in a southern area of the Curitiba on the city’s west side, taking into city into a “job line” that helps people start busi- account wind direction to avoid polluting the nesses and encourages the growth of the local Figure 3.13 Curitiba’s Waste Program Source: Photos courtesy of IPPUC. Note: The Garbage That Is Not Garbage Program (left) and The Green Exchange Program (right). THE FIELD REFERENCE GUIDE | 177 economy. Two social incubators provide training risk being illegally procured if not provided, and facilities for the establishment of local busi- which may lead to fatal accidents. Occupants ness, and 12 entrepreneur sheds were created feel some sense of ownership over the land and (Guimarães 2009). In addition, these facilities are able to arrange roads and create quality offer entrepreneurial capacity building. Under- living environments. Under city agency coordi- utilized occupied land was cleared; people nation, the value of the occupied land may be were relocated; and public transportation ser- reimbursed through long-term loans. In addi- vices were commenced, which represented steps tion, legal mailing addresses may be provided toward land recovery (Hattori 2004). for occupiers, which helps people find jobs One of the largest problems in Curitiba has (Hattori 2004; Nakamura 2007). been slums. Those who do not have their own Curitiba provides social housing in the sub- land occupy and settle on private land. Often, urbs, where land prices are relatively cheap, these areas become derelict, causing river pol- and in the city, especially between the city cen- lution and fomenting crime (figure 3.14). Rather ter and industrial areas (figure 3.15). Rather than spending time and money on relocating than encouraging groups with similar incomes squatters and restoring the areas that had been to settle in neighborhoods, Curitiba encourages occupied, the city, at low cost, purchased pri- a mix of income groups so that the neighbor- vately held lands that could be occupied. It then hoods become inclusive. Apartments and small provided this land for unofficial occupancy. A detached homes are provided as social housing. formal land use zoning category was developed Poor people who can afford to purchase small for such land. Thus, these areas were integrated detached houses are given incentives to im- into city plans, and residents could feel includ- prove the properties and their overall living en- ed. Simple land arrangements and water and vironment by building additions and extensions electricity are offered because such services onto their houses. In Curitiba, development Figure 3.14 Illegal Occupancy in Curitiba Source: IPPUC. 178 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 3.15 Social Housing in Curitiba Source: IPPUC. rights may be purchased. The money paid by Figure 3.16 The Transfer of Development Rights for Social Housing in Curitiba developers to purchase the rights to develop Source: IPPUC. sites may then be used to build social housing in other areas (figure 3.16). City services are decentralized and are pro- vided in major bus transit terminals. People are not necessarily obliged to travel to the city cen- ter for such services. Allowing people who live far from the city center to procure services close to home promotes equal opportunity. A flat bus fare also helps people reach bus terminals where city offices are located. In addition, city services such as educational, health, cultural, and social service facilities are distributed equally throughout the city. This system pro- vides equal, high-quality, and accessible services to all citizens regardless of income. Culture and heritage preservation Curitiba maintains an attractive and lively city- scape. This is a result of well-planned urban design and successful cultural heritage preser- vation. Vehicular streets in the city center have been converted into pedestrian streets to allow people to enjoy the urban cultural atmosphere (figure 3.17). Under Curitiba’s 1977 Metropolitan Area Heritage Plan, 363 buildings were identi- Figure 3.17 Pedestrian Streets in the Center of Curitiba fied for preservation. However, because most of Source: IPPUC. these buildings were on private land, managing their preservation was difficult. The city thus adopted a policy under which development or THE FIELD REFERENCE GUIDE | 179 building rights may be transferred to other areas in the city. In 1993, the city identified spe- cial preservation units. Money earned from selling development rights over these struc- tures must be used only to preserve buildings (figure 3.18). Through these measures, the mon- ey required for preservation is mainly market generated, and the city does not need to fund preservation. In addition, Curitiba’s Coresda Cidade project has revitalized 44 historic build- ings in the city center, and the buildings have been repainted in the original colors. The area targeted by this project used to be crime prone Figure 3.18 The Transfer of Development Rights for Heritage Preservation and run down. However, after revitalization, in Curitiba Source: IPPUC. people came to the area; building owners took better care of the buildings; and the crime rate fell by an estimated 30 percent. Moreover, Curitiba provides a good case of a city revitalized by her- itage preservation and effective urban design. In addition, cultural facilities, which were pre- viously lacking in the city, have been established in innovative ways. A historical gunpowder house has been converted into a theater. An opera house constructed of metal tubes and glass has been established in the middle of a de- activated quarry crater, surrounded by a beauti- ful landscape. A botanical garden, one of the main tourist attractions, has also been created in once neglected open space (Hattori 2004). Green Line Future Challenges for Curitiba Green Line: Federal highway 116 used to cut through the city and impose its dangerously heavy traffic—mainly transport trucks traveling South America’s economic corridor—on resi- dents. This divided the city into two sections in an inefficient way. In response, a beltway was created to divert traffic outside the city’s bound- ary, and a former federal highway was converted into Curitiba’s sixth axis, called the Green Line. Figure 3.19 The Green Line in Curitiba This line is expected to reduce traffic on the Source: IPPUC. existing five axes. A new BRT route will be introduced, and mixed use high-density devel- 180 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES opment is planned along the Green Line to formulates, implements, and supervises urban make the area more attractive (figure 3.19). plans. IPPUC has provided integrated, cross- Land use is being carefully planned so as not to sector urban planning and oversight for imple- interfere with wind circulation by creating bar- mentation and monitoring, while ensuring riers of buildings. A linearly shaped biodiversity consistency amid changes in political leader- park will also be created along the Green Line, ship. These holistic approaches to urban plan- and only indigenous plant species will be culti- ning have been brought about by the creativity vated. of planners and their imagination and good Regional integration: Because the Curitiba understanding of local culture. For more than Metropolitan Region is growing, Curitiba now 50 years, engineers and architects have under- faces a new challenge: how to integrate city and taken urban planning to address key urban issues regional planning. Migration from surrounding in integrated ways. The work of IPPUC ensures areas has resulted in housing shortages, which continuity and consistency in planning process- might lead to more slums. In addition, even if es that have extended beyond the mayoral cycles Curitiba has a good primary BRT system and since 1966, the year IPPUC was established. integrated land use, development in surround- Curitiba has made the most of its existing ing areas that is unconnected to the public infrastructure and local characteristics without transportation system (such as large shopping spending much money on new construction. malls) may favor car use and increased traffic. Although Curitiba’s activities have been accom- In this context, Curitiba is taking steps to plished with few budgetary resources, tremen- strengthen its regional planning capacity and is dous benefits have been generated. creating intermunicipal partnerships. Citizen ownership and eco-consciousness: Citizens are encouraged and are provided op- portunities to comment during urban planning Lessons Learned in the Curitiba Case processes. Public hearings with the mayor are held frequently, and proposed plans are evalu- Leadership and continuity: The mayors of Cu- ated and discussed with the community. People ritiba have focused on urban planning. Many may speak directly to the mayor and city offi- mayors have had technical backgrounds in cials. More than 250 public hearings have been engineering or architecture, for example. Since held since 2005. Citizens are actively involved the 1960s, when the Curitiba master plan was in planning because people have made the link formulated, the direction of urban planning has between good urban planning and a better qual- been largely consistent across administrations. ity of life. The city provides opportunities for Curitiba places a premium on implementation people to participate in other urban activities— and rapid action to address urban issues; if there such as collecting garbage, constructing neigh- is a 70 percent chance of success, the city un- borhood roads, and maintaining green areas— dertakes plans quickly. which strengthen citizen ownership and the Institutionalized planning and expertise: Cu- maintenance of urban facilities. Children are ritiba’s practices affect the city in several posi- also enrolled in environmental education ac- tive ways. Curitiba’s success is linked to strong tivities, such as the urban waste program. More- mayoral leadership and people’s active partici- over, behaving in environment-friendly ways is pation in city programs. It is also attributable to now the norm for Curitibanos. IPPUC. The integrated planning institute has Local character: Curitiba considers its local been playing an important role as a municipally situation, including its budget, capacity, and independent public authority that researches, social conditions, in devising urban strategies. THE FIELD REFERENCE GUIDE | 181 Taking into account municipal capacity, local Curitiba: urban planning integrating environment, officials develop innovative solutions to solve transportation, social aspects, and land use]. Gakugei Shuppan Sha, Kyoto. urban problems. For example, rather than wait- ICLEI (ICLEI–Local Governments for Sustainability). ing for adequate revenues to construct a subway, 2002. “Curitiba: Orienting Urban Planning to Curitiba implemented the BRT system, which Sustainability.” Case Study 77, ICLEI, Toronto. proved affordable and could be implemented IPPUC (Institute for Research and Urban Planning of quickly without time-consuming construction Curitiba). 2009a. “The City of Curitiba: Planning for Sustainability; An Approach All Cities Can work. Afford.” Presentation at “World Bank Energy Week 2009,” World Bank, Washington, DC, March 31. ———. 2009b. “Energy Efficiency in Cities: Curitiba’s Notes Green Line.” Presentation at “World Bank Energy Week 2009,” World Bank, Washington, DC, April 1. 1. The modal shares are public transport (bus), 45 ———. 2009c. “Public Transportation: Evolution of the percent; bicycle, 5 percent; walking, 27 percent; Integrated Net of Transport.” http://www.ippuc. and private automobile, 22 percent. The data are org.br/pensando_a_cidade/index_transpcoletivo_ from IPPUC (2009a). ingles.htm. 2. For example, in Houston, Texas the process of Leitmann, Josef. 1999. Sustaining Cities: Environmental evapotranspiration from trees has been found to Planning and Management in Urban Design. New cool peak temperatures by 1.1 to 5 degrees Celsius. York: McGraw-Hill. Tree shadings provide Houston with annual energy Nakamura, Hitoshi. 2007. “Curitiba, Brazil ni okeru hito savings of US$26 million (HARC 2004). ni yasashii kankyou toshi zukuri no jissen” ク リチバ （ブラジル） における人に優しい環境都市づく りの実 践 [People-Friendly and Sustainable Urban Planning Practice in Curitiba, Brazil]. Presenta- References tion, July 13. http://www.sumai-machi-net.com// files/file/hitoshi(1).pdf. CNT (Confederação Nacional do Transporte). 2002. “Pesquisa da Seção de Passageiros CNT, 2002; Prefeitura Municipal de Curitiba. 2000. “Lei No 9.800 Relatório Analítico: Avaliação da Operação dos de 03 de janeiro de 2000, Annexos.” Prefeitura Corredores de Transporte Urbano por Ônibus no Municipal de Curitiba, Curitiba, Brazil. Brasil.” Report, CNT, Brasília. ———. 2007. “Socioeconomic Information Bulletin Curitiba S. A. 2007. Bulletin 2007 of Socioeconomic 2007.” Prefeitura Municipal de Curitiba, Curitiba, Information. Curitiba, Brazil: Curitiba S. A. Brazil. Downs, Anthony. 2004. Still Stuck in Traffic: Coping ———. 2009. “Curitiba: Economic Changes.” Prefeitura with Peak-Hour Traffic Congestion, rev. ed. Municipal de Curitiba, Curitiba, Brazil. Washington, DC: Brookings Institution Press. http://www.curitiba.pr.gov.br/siteidioma/ mudancaeconomica.aspx?idiomacultura=2. Friberg, Lars. 2000. “Innovative Solutions for Public Transport: Curitiba, Brazil.” Sustainable Develop- Rabinovitch, Jonas, and Josef Leitmann. 1993. ment International, 4th ed., ed. Anna Pink, 153–56. “Environmental Innovation and Management Brighton, U.K.: ICG Publishing. http://www. in Curitiba, Brazil.” Working Paper 1, Urban brtchina.org/old/ReportE/Sustainable%20 Management Programme, United Nations Human Development.pdf. Settlements Programme, Nairobi. Guimarães, Eduardo. 2009. “Curitiba: Liveable City; TMG (Tokyo Metropolitan Government). 2000. “TDM Transit and Sustainable Development.” Presenta- koutsuu jyuyou management Tokyo koudou plan” tion at the “Transportation Forum 2009,” World (TDM 交通需要マネジメント)東京行動プラン Bank Group, Washington, DC, March 31. [Transportation demand management, Tokyo: Action plan]. Report, February, TMG, Tokyo. HARC (Houston Advanced Research Center). 2004. “Cool Houston! A Plan for Cooling the Region.” Vassoler, Ivani. 2007. Urban Brazil: Visions, Afflictions, HARC, Woodlands, TX. http://files.harc.edu/ and Governance Lessons. New York: Cambria Press. Projects/CoolHouston/CoolHoustonPlan.pdf. Vaz Del Bello, Giovanni, and Maria Terezinha Vaz. Hattori, Keiro. 2004. “Ningen toshi Curitiba: Kankyou, 2007. A Convenient Truth: Urban Solutions from koutsuu, fukushi, tochiriyou wo tougou shita Curitiba, Brazil. DVD. Directed by Giovanni Vaz machizukuri” 人間都市ク リチバ―環境 ・ 交通 ・ 福 Del Bello. Felton, CA: Maria Vaz Photography, in 祉・ 土地利用を統合したまちづく り [Human City association with Del Bello Pictures. 182 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CASE 2 Stockholm, Sweden Integrated Planning and Management through Systematic Stakeholder Collaboration Can Lead to Greater Life-Cycle Benefits The City of Stockholm, the capital of Sweden, has pursued integrated city planning and man- agement to become a sustainable city (figure 3.20). The city has a comprehensive urban vi- sion, environmental programs, and concrete ac- tion plans to reduce greenhouse gas emissions and tackle climate change. It implements inte- grated urban planning approaches that consider ecological benefits and efficient resource use. The ongoing redevelopment in the city’s southern district, Hammarby Sjöstad, is a good model for understanding integrated approaches to sustainable urban planning and redevelop- ment. The area aims to be twice as sustainable as Swedish best practice in 1995. The area im- plements integrated resource management (waste, energy, water, and sewage) through systematic stakeholder collaboration and has Figure 3.20 Stockholm Cityscape transformed the linear urban metabolism into Source: Photo by Lennart Johansson, Stockholm City Planning Administration. a cyclical one known as the Hammarby Model. According to Grontmij AB, a private consultan- Stockholm provides great leadership in plan- cy firm in Stockholm, primary assessments of ning and implementing sustainable urban de- the initially developed districts of Hammarby velopment strategies. The city’s one-system Sjöstad show that the area has achieved, for approach to resource use has been successful. example, 28 to 42 percent reductions in nonre- In addition, Hammarby Sjöstad has applied the newable energy use and 29 to 37 percent reduc- environmental load profile (ELP) tool to assess tions in global warming potential. and monitor environmental performance in the development project. THE FIELD REFERENCE GUIDE | 183 IBRD 37444 JANUARY 2010 SWEDEN Profile of Stockholm Stockholm • The capital of Sweden, located in the northern nia AT L AN T I C SWEDEN Both part of Europe O CE AN FINLAND Gulf of • Total area: 209 km2 NORWAY (land: 188 km2; water: 21 km2) • Population (2008): 795,000 • Expected increase in population by 2030: 150,000. Stockholm ESTONIA Source: USK (2008). North LATVIA Sea DENMARK LITHUANIA 500 km. RUSSIAN FED. GERMANY POLAND Map 3.2 Location of Stockholm Source: Map Design Unit, General Services Department, World Bank. Stockholm’s Approaches to able land and water use, (5) waste treatment Sustainable Development with minimal environmental impacts, and (6) a healthy indoor environment (City of Stockholm Stockholm pursues comprehensive sustain- 2008). able development policies. In 2007, the city In addition, Stockholm has implemented ac- adopted a strategic project, Vision 2030, that tion programs on greenhouse gas emissions and charts the way forward to strengthen sustain- climate change. The plans invite wide coopera- able urban development (City of Stockholm tion from public and private organizations and 2007). This project indicates that, by 2030, individuals who live and work in the city. Vari- the population of Stockholm will have grown ous measures have already been taken, includ- to more than 1.0 million people, while the ing the adoption of biofuels, the expansion of greater Stockholm region will have grown to districtwide heating and cooling management, nearly 3.5 million. The city is expected to face and the promotion of vehicle driving behavior new demands from globalization, trade shifts, that is environment friendlier (City of Stock- migration, an increase in the number of the holm 2003). As a result, emissions of green- elderly, and environmental challenges. Based house gases fell from 5.3 tons to 4.0 tons of on the Vision 2030 project and other strate- equivalent carbon dioxide (CO2e) per person gies, Stockholm has adopted an approach to between 1990 and 2005 (City of Stockholm urban development that recognizes the stra- 2009). The city recognizes the importance of tegic level and local levels (City of Stockholm energy efficiency to reduce emissions and tack- 2007). le climate change, but also prioritizes cost- Aligned with Vision 2030, the Stockholm effectiveness through resource conservation. Environment Programme established six envi- Devising ways to engage stakeholders in actions ronmental goals or principles for 2008–11: that are environmentally and economically sus- (1) environmentally efficient transport, (2) safe tainable remains a challenge. Stockholm’s long- goods and buildings free of dangerous sub- term target is to be free of the use of fossil fuels stances, (3) sustainable energy use, (4) sustain- by 2050 (City of Stockholm 2009). 184 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Approaches to Sustainable BOX 3.1 Urban Development The Development Strategies of Sustainable urban development is clearly a key Stockholm aim. Stockholm can more easily implement • Reusing developed land (brownfields) integrated and sustainable land use and trans- • Locating new development in areas with good access to public transportation portation plans because the city has tradition- • Respecting and enhancing the character of the ally exerted substantial authority over land use city, for example, the cityscape, the built envi- planning and ownership. In 1904, Stockholm ronment, and the green structure started purchasing land for future develop- • Redeveloping semicentral areas and transform- ment. As a result, around 70 percent of all ing industrial areas into urban areas of mixed urban land belongs to the city (Cervero 1998). uses characterized by variation • Establishing focal points in the suburbs This large share of city-owned land has prevent- • Meeting local demand ed speculative land investments by developers • Developing public spaces and investors and empowered the city in plan- ning and implementing development. The city Source: City of Stockholm. thus has a solid platform for development. De- velopers construct buildings and housing on public land corresponding to city plans. close to water and natural areas. Some areas Because rights-of-way are easily secured, trans- have been under construction for several years portation development has been straight- and will provide housing as part of the city’s forward, and other development has been housing programs. Other areas are at the plan- promoted around transportation stations. De- ning stage. The areas are being targeted for velopment benefits are now being returned to mixed use development, with attractive housing the public through planning in new town areas. and business facilities; these dense structures In addition, parks and green areas cover 40 per- create a more urban atmosphere in formerly cent of Stockholm’s land, and citizens enjoy an suburban areas. ecologically rich environment (USK 2008). Hammarby Sjöstad, one of the original and To promote sustainable development, Stock- ongoing redevelopment areas, is a full-scale holm’s planning strategy targets densification demonstration site. It represents an example of through the development of brownfield (already an integrated urban development approach used) land inside the city before any unused illustrating system solutions, innovative tech- greenfield land on the outskirts is developed nology, environmental awareness, and active (box 3.1, map 3.3). This is the overall objective of cross-sector collaboration. the comprehensive land use plan adopted by the city council in 1999. Old and partly abandoned industrial and Hammarby Sjöstad harbor areas (brownfields) adjacent to the in- ner city are being reused and redeveloped as The ongoing redevelopment project for Ham- part of the city development strategy. Several of marby Sjöstad—the name of the district means these strategic development areas are directly “city on Hammarby Lake” in Swedish—is set linked to a new rapid tram system and also have on a former industrial and harbor brownfield direct access to other public transportation sys- area on the south side of Hammarby Lake and tems, such as the metro line. The areas have to the south of the city center. The aim of the unique qualities because they are often located project is to expand the inner city into an at- THE FIELD REFERENCE GUIDE | 185 Profile of Hammarby Sjöstad Hammarby Sjöstad • A city district in southern Stockholm • One of three ecocycle districts in Stockholm: Hammarby • Total area: 200 hectares, including 50 hectares of water Sjöstad, Östberga, and Skärholmen • Planned population: 25,000 • About 35,000 people are expected to live and work in the area. • 11,000 apartments projected • Today, more than half of the development has been complet- • 200,000 km2 of retail and office area projected ed, and it is anticipated that the district will be fully devel- oped by 2017. Residential Area in Hammarby Sjöstad Hammarby Sjöstad Cityscape Source: Photo by Lennart Johansson, Stockholm City Planning Administration. Source: Photo by Lennart Johansson, Stockholm City Planning Administration. tractive water setting, while converting a run- down industrial area into a modern, sustain- able, mixed used neighborhood. Soil will be decontaminated by removing tons of oil, grease, and heavy metals (Fryxell 2008). The ecosystem will be revitalized, and existing eco- assets, including trees and parks, will be pre- served. The redevelopment will unlock land and property values by revitalizing brownfield land. Moreover, a once-shattered area will be reinvigorated, and about 11,000 new residen- tial units and 200,000 square kilometers of new office and service area will be created. The urban vision and concept for this new district was born in the early 1990s. The area’s Map 3.3 The Inner City of Stockholm and Adjacent Development Areas natural continuation of Stockholm’s inner city Source: Stockholm City Planning Administration. toward the waterfront has influenced planned infrastructure and building designs. Hammarby Sjöstad adds a new layer to Stockholm’s devel- opment: a modern, semiopen zone comprising 186 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES a mix of traditional inner-city perimeter blocks and open and contemporary urban zones. In- ner-city street dimensions, block lengths, build- ing heights, and densities are well harmonized and offer openness, sunlight, parks, and water views (map 3.4). The area is also well connected to public tramlines. According to a 2005 survey, two- thirds of all resident trips were made via public transportation, bicycles, and walking, and one- third by car (CABE 2009). Significant public transportation ridership and bicycling and Map 3.4 Master Plan of Hammarby Sjöstad, Stockholm Source: Stockholm City Planning Administration. walking have helped to reduce car emissions Note: For details of the Master Plan, see http://www.hammarbysjostad.se. and the associated greenhouse gases. Mixed land uses are promoted, and land policy re- is already a sustainable city, but the city council quires that ground floors along main streets be expects this project to demonstrate additional used for commercial applications. This encour- innovations in sustainable urban development. ages people to walk or cycle to visit streets with lively shop fronts. To attract shops and services The Hammarby Model to the new development area, the city has pro- The environmental goals for Hammarby vided financial subsidies. Moreover, the area’s Sjöstad, which was originally intended to be the economic activities were established in the Olympic Village in Stockholm’s bid for the 2004 development’s early phases. Urban and build- Summer Olympics, are audacious. The area’s ing designs make the most of the waterfront. integrated environmental solutions may be un- Myriad designs were created by different archi- derstood as an ecocycle known as the Hammar- tects to provide diverse, lively, and high-quality by Model (figure 3.21). The ecocycle addresses urban environment. energy, waste, water, and sewerage for housing, Stockholm desired that Hammarby Sjöstad offices, and other commercial structures. Core be twice as more sustainable than Swedish environmental and infrastructure plans for this best practice in 1995 on a range of indicators area have been developed jointly by three city (the environmental program was adopted in agencies: the Stockholm Water Company, the 1995), most notably energy efficiency per square energy company Fortum, and the Stockholm meter. In Sweden, the average annual rate of Waste Management Administration. Project energy use in some regular new developments management was spearheaded by a project is 200 kilowatt-hours per square meter. Cut- team comprising representatives from city de- ting-edge Swedish developments and practices partments overseeing planning, roads and real produce an efficiency of 120 kilowatt-hours per estate, water and sewerage, and waste and en- square meter. The Hammarby Sjöstad project ergy. The project team is housed in the Depart- aims for 100 kilowatt-hours per square meter. ment of Roads and Real Estate (now called the The project also sets other targets: water con- Development Administration). servation, waste reduction and reuse, emissions The model is an attempt to turn a linear ur- reduction, the reduced use of hazardous con- ban metabolism, which consumes inflowing struction materials, the application of renew- resources and discards outflowing wastes, into able energy sources, and the implementation of a cyclical system that optimizes the use of re- integrated transportation solutions. Stockholm sources and minimizes waste. The model THE FIELD REFERENCE GUIDE | 187 streamlines infrastructure and urban service Moreover, the region’s carefully preserved systems and provides a blueprint for achieving oak forests, green areas, and other planted sustainability objectives. For instance, it shows trees help collect rainwater instead of drain- the interaction between sewage processing and ing it into the sewerage system. This vege- energy provision, the way refuse should be tation also ensures cleaner air and balances handled, and the added value to society of mod- the dense urban landscape. ern sewage and waste processing systems. • Waste: Combustible waste, food waste, news- Highlights are as follows: papers, paper, and other discards are separ- • Building materials: Environmental consider- ated and deposited in different refuse chutes ations apply to all materials, whether used in or adjacent to buildings. The refuse chutes visibly in facades, underground, or internal- are linked to underground vacuum-powered ly. This includes structural shells and in- pipes that lead to a central collection station. stalled equipment. Only sustainable and An advanced control system sends the waste tested eco-friendly products are used. Poten- to large containers, one for each waste catego- tially hazardous materials, such as copper ry. Refuse collection vehicles thus collect the and zinc, are avoided to prevent leakages of containers without driving into the area, and unwanted substances into the environment. refuse collection workers avoid heavy lifting. • Water and sewerage: Storm water is uncon- • District heating and cooling: Treated waste- nected to sewerage systems to improve the water and domestic waste become sources quality of wastewater and sludge. Rainwater for heating, cooling, and power. A combined from streets or nondomestic storm water is heat and power plant uses domestic waste as collected, purified through a sand filter, and fuel to produce district heating and electrici- released into the lake. This reduces pressure ty. Wastewater from the treatment plant fuels on the wastewater treatment plant. Rainwa- the production of district heating in the Ham- ter from surrounding houses and gardens marby heat plant. Cooled by heat pumps, the flows through open drains to the channel. treated and cooled wastewater may also be This water runs through a series of basins, used in the district cooling network. known as an equalizer, and then to the lake. • Electricity (solar energy): Solar energy is Hammarby Sjöstad has its own wastewater transformed into electrical energy in solar treatment plant built to test new technology. cells. The energy from a single solar cell mod- Four new and different processes for purify- ule covering one square meter provides ing water are currently being tested. around 100 kilowatt-hours per year, which is • Biogas: Biogas is produced in the wastewa- equivalent to the energy used by three square ter plant from the digestion of organic waste meters of housing space. There are solar pan- and sludge. The wastewater from a single els on many roofs used to heat water. Solar household produces sufficient biogas for panels on residential buildings often provide the household’s gas cooker. Most biogas is sufficient energy to meet half of the annual used as fuel in eco-friendly cars and buses. hot water requirements of the buildings. • Green spaces: Roofs covered in stonecrop or Hammarby Sjöstad has its own Environmental sedum plants are attractive. In addition, the Information Center, GlashusEtt. This center plants absorb rainwater that would other- facilitates communications on environmental wise drain into the sewerage system, adding considerations to area inhabitants and show- pressure on the wastewater treatment plant. cases Hammarby to international visitors. 188 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Energy Wa ste er at W Figure 3.21 The Hammarby Model Source: Fortum, Stockholm Water Company, City of Stockholm. The environmental load profile suitable for application under any conditions in An environmental assessment tool, the ELP, has planning, simulation, and evaluation. By factor- been developed through a cooperative effort ing in well-constructed variables, one may use by the City of Stockholm, the Royal Institute of the ELP to calculate the environmental loads of Technology, and the consultancy firm Grontmij various planning decisions during a project’s AB. The ELP assesses environmental perfor- construction, operation, demolition, or redevel- mance and follows up on the targets set in the opment. The tool thus facilitates a life-cycle ap- project’s environmental program. It is a life-cycle proach. Testing scenarios are facilitated. For assessment tool that defines relevant activities instance, different construction methods may from an environmental perspective and quanti- be compared prior to taking decisions. Hence, fies the environmental loads originating from decision makers understand environmental is- these activities, such as emissions, soil pollut- sues early in project planning. The ELP may ants, waste, and the use of water and nonrenew- also be used to evaluate the environmental per- able energy resources. It accounts for all project formance of existing city districts or buildings development and implementation activities, based on the consumption of resources such as including material acquisition, the transport of water and energy. The ELP enables analyses of inputs and people, construction methods, elec- environmental performance at multiple levels. tricity, heating, and materials recycling. The tool takes into account the activities and The main strengths of the ELP are that the impacts of individuals (for example, cooking tool is flexible and dynamic, which makes it and laundry), buildings (building materials, dis- THE FIELD REFERENCE GUIDE | 189 trict heating, electricity, and so on), unbuilt areas Project management (such as materials and working machines), and The two municipal administrations responsible common areas (including materials and the for planning and managing the project are the transport of people and goods). By aggregating City Planning Administration and the Develop- these factors, the environmental load of a whole ment Administration. These entities are under city district may be analyzed. If each factor is respective committees and the city council. analyzed separately, different urban activities In the mid-1990s, Stockholm and its external provide useful information for urban planning. stakeholders agreed to cooperate on planning Evaluation findings of the initially developed objectives in the area. These stakeholders in- areas of Hammarby Sjöstad as compared with a clude the neighboring municipality of Nacka, reference scenario are illustrated in figure 3.22. the Stockholm Local Transport Authority, and The results are positive: a 28 to 42 percent the National Road Administration. After negoti- reduction in nonrenewable energy use, a 41 ating, the stakeholders agreed on a set of com- to 46 percent reduction in water use, a 29 to mon planning features and infrastructure proj- 37 percent reduction in global warming poten- ects (1994–95). During this period, there was a tial, a 33 to 38 percent reduction in photochem- political steering group and an official manage- ical ozone creation production, a 23 to 29 per- ment group composed of representatives of key cent reduction in acidification potential, a 49 to stakeholders. An organization was established 53 percent reduction in eutrophication poten- to manage the project. All departments respon- tial, and a 27 to 40 percent reduction in radioac- sible for the planning, development, implemen- tive waste. By monitoring the environmental tation, and maintenance of the area were in- loads from Hammarby Sjöstad, one may plan volved from the beginning.1 The city’s Waste suitable societal and financial environmental Collection Administration and the city’s associ- measures to continue the development of the ated companies—the energy company and the district, while offering guidance for similar water company—participated in preparing the projects. project’s environmental program; moreover, Figure 3.22 Monitoring Major Reductions in Environmental Loads, Hammarby Sjöstad, Stockholm Source: Grontmij AB. 190 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES these companies had a vested interest because a about 500,000 tonnes per year. Emissions to wa- power station and a wastewater treatment plant ter will be reduced by 2,460 tons of nitrogen and were located in the area. 180 tons of phosphorous per year, which corre- A steering group composed of the executive spond to two percent and four percent, respec- officers of the departments involved and a tively, of the current total emissions to the sea.” cross-sector official management group have been active in the development of the project.2 The next phase As a landowner, the city may initiate agree- Lessons and experiences from Hammarby ments and undertake contracts with develop- Sjöstad will be considered in planning and im- ers. The city may specify various requirements plementing Stockholm’s new eco-profiled city depending on the issues that are important in districts. These new areas will use the latest each phase. Developers have contractual obli- environmental technology with a view to serving gations to participate in the planning process as a model of the sustainable city concept. (on the detailed development plan), the process Energy, transportation, lifestyle, and behavioral of defining and implementing quality and de- issues will be particularly important variables sign standards, and the implementation of rele- determining whether the project objectives will vant aspects of the environmental program. be met. For instance, the Stockholm Royal Seaport is The national level a new urban development with a unique envi- The Hammarby Sjöstad project was partially ronmental profile (figure 3.24). Developing a supported by a national subsidy program that new ecologically sustainable district places aimed to encourage municipalities to become extra demands on technology in the construc- part of an ecologically sustainable society, while tion of houses, the use of efficient materials, and providing project-related jobs in municipalities methods for handling energy. This urban devel- (Bylund 2003). The program lasted from 1998 opment contains plans for 10,000 new resi- to 2002 and allocated SKr 6.2 billion (€671 mil- dences and 30,000 new workspaces. Phase 1 lion) to 211 local investment programs involving started in 2009, and about 5,000 units will be 1,814 projects in 161 municipalities (figure 3.23). developed over the next decade. The first resi- This national investment leveraged SKr 27.3 bil- dents will arrive in 2011. lion (almost €3 billion) from municipalities, The vision for the area may be summarized businesses, and other organizations. Of this in three comprehensive objectives: amount, SKr 21 billion (about €2.3 billion) were investments directly related to sustainability and the environment. It has been estimated that 20,000 full-time short-term or permanent jobs were created (Swedish EPA and IEH 2004). A report of the United Nations (2004: 4) states that, according to local authority esti- mates, “the grants awarded to local investment programmes for the period 1998–2002 will lead to annual reductions in energy use by 2.1 TWh [terawatt hour] while carbon dioxide emissions will be reduced by 1.57 million tonnes per year Figure 3.23 Local Investment Subsidy Program Funding across Types of (equalling 2.8 percent of Sweden’s emissions) Projects in Sweden and landfill refuse deposits will be reduced by Source: Swedish EPA and IEH (2004). THE FIELD REFERENCE GUIDE | 191 to sustainable development. Success in a project such as the one in Hammarby Sjöstad depends on good coordination among key stakeholders. For the project, Stockholm’s various depart- ments have been integrated into a single fabric led by a project manager and an environmen- tal officer whose responsibilities have included guiding and influencing all stakeholders, public as well as private, to realize the environmental objectives of the project (Johansson and Svane 2002). Integrated planning and management through systematic stakeholder collaboration can lead to significantly greater life-cycle benefits. After a few modifications, the ELP may serve Figure 3.24 Stockholm Royal Seaport: Vision of a New City District as a decision-making tool in cities in developing Source: Lennart Johansson, Stockholm City Planning Administration. countries in a fashion similar to the use of this ELP in the Swedish context. The ELP provides 1. By 2030, the area is to be a fossil-fuel-free a systematic and standardized methodology to city district. quantify the costs and benefits of the steps in 2. By 2020, CO2 emissions are to have been cut development. For the application of an ELP in to 1.5 tons per person per year (CO2 equiva- developing countries, one might propose the lent). following: 3. The area is to become adapted to the ex- 1. Expanding the ELP to include assessments pected effects of climate change. of other input variables, such as the impacts The project’s focus areas are energy consump- that efficient spatial planning, integrated tion and efficiency, sustainable transportation, land use, and the improved management of climate change adaptation, ecocycle modeling, solid waste may have on output indicators. and the maintenance of high-quality lifestyles. 2. Improving and fine-tuning the existing pro- Other important goals include implementation gram by filling in gaps and streamlining the of a holistic and integrated process; constant inclusion of the inputs. Moreover, the com- evaluation and follow-up; and assessment and plete model needs to be adapted to large- cooperation among private, public, and aca- scale use and adjusted to fit developing demic stakeholders. country contexts. 3. The outputs in the current ELP area are Lessons Learned in the associated with environmental indicators, Stockholm Case such as carbon emissions. Converting these indicators from environmental indicators Great leadership in planning and implement- to economic and fiscal indicators is neces- ing sustainable urban development strategies sary to help policy makers reach better demonstrates Stockholm’s strong commitment decisions. 192 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Notes ———. 2007. “Vision 2030: A World-Class Stockholm.” Executive Office, City of Stockholm, Stockholm. 1. The departments included the City Planning http://international.stockholm.se/Future- Administration; the Real Estate, Streets, and Stockholm/. Traffic Administration (now split into the ———. 2008. “The Stockholm Environment Pro- Development Administration and the Traffic gramme.” City of Stockholm, Stockholm. Administration); the City District Administration; http://international.stockholm.se/Stockholm-by- and the Environment and Health Protection theme/A-sustainable-city/. Administration. ———. 2009. “The City of Stockholm’s Climate 2. The departments and companies involved Initiatives.” City of Stockholm, Stockholm. included the City Planning Administration, the http://www.stockholm.se/vaxthuseffekten. Development Administration, the Traffic Fryxell, Stellan. 2008. “Planning Hammarby Sjöstad, Administration, the City District Administration, Stockholm.” Presentation at the Urban Land the Environment and Health Protection Adminis- Institute, “Europe Trends Conference: Rethinking tration, the Water Company, and the Housing Tomorrow; Real Estate in a Fast Changing World,” Service Company. Stockholm, May 29. Johansson, Rolf, and Örjan Svane. 2002. “Environmen- tal Management in Large-Scale Building Projects: Learning from Hammarby Sjöstad.” Corporate References Social Responsibility and Environmental Manage- ment 9 (4): 206–14. Bylund, Jonas R. 2003. “What’s the Problem with Swedish EPA (Swedish Environmental Protection Non-conventional Technology? The Stockholm Agency) and IEH (Swedish Institute for Ecological Local Investment Programme and the Eco- Sustainability). 2004. “Local Investment Pro- cycling Districts.” In ECEEE 2003 Summer Study grammes: The Way to a Sustainable Society.” Proceedings: Time to Turn Down Energy Demand, Investment Programmes Section, Swedish EPA, ed. Sophie Attali, Eliane Métreau, Mélisande Stockholm. http://www.naturvardsverket.se/ Prône, and Kenya Tillerson, 853–62. Stockholm: Documents/publikationer/91-620-8174-8.pdf. European Council for an Energy Efficient Economy. http://www.eceee.org/conference_ United Nations. 2004. “Human Settlement Country proceedings/eceee/2003c/Panel_4/4214bylund/. Profile: Sweden.” Division for Sustainable Development, Department of Economic and Social CABE (Commission for Architecture and the Built Affairs, United Nations, New York. http://www. Environment). 2009. “Hammarby Sjöstad, un.org/esa/agenda21/natlinfo/countr/sweden/ Stockholm, Sweden.” http://www.cabe.org.uk/ Sweden_HS.pdf. case-studies/hammarby-sjostad. USK (Stockholm Office of Research and Statistics). Cervero, Robert. 1998. The Transit Metropolis: A 2008. “Data Guide Stockholm 2008.” USK, Global Inquiry. Washington, DC: Island Press. Stockholm. City of Stockholm. 2003. “Stockholm’s Action Programme against Greenhouse Gas Emissions.” City of Stockholm, Stockholm. http://www.stockholm.se/KlimatMiljo/Klimat/ Stockholms-Action-Programme-on-Climate- Change/Downloads/. THE FIELD REFERENCE GUIDE | 193 CASE 3 Singapore The One-System Approach: Integrated Urban Planning and Efficient Resource Use Singapore is an island city-state at the south- ern tip of the Malay Peninsula (figure 3.25). With a limited land area of 700 square kilome- ters and a population of 4.8 million, Singapore has become developed because of innovative urban planning integrated with the efficient use of land and natural resources (CLAIR 2005; Statistics Singapore 2009). Singapore’s small size poses challenges re- lated to the availability of land and natural resources. To optimize land use, Singapore Figure 3.25 Singapore Cityscape promotes high-density development not only Source: Photo by Hinako Maruyama. for businesses and commercial entities, but tion ridership also means Singapore has been also for residential structures. High density able to recover all public transportation operat- lends itself to higher economic productivity ing costs from fares, a feat achieved only by per unit of land and facilitates the identifica- Hong Kong, China, and by Singapore among tion of green spaces and natural areas for pres- modern, highly developed cities (LTA 2008). ervation. Indeed, Singapore is known as the Singapore imports most of its natural re- garden city. Furthermore, high-density develop- sources, including food, water, and industrial ment has translated into greater use of public materials. Careful resource planning is thus transportation as major business, commercial, critical. For example, Singapore has adopted and residential areas are well connected to an the comprehensive management of water re- integrated public transportation network. In sources by looping and cascading water, which 2004, public transportation as a share of all represents a closed water cycle integrated into transportation modes during morning peak one system, rather than a water supply system hours reached 63 percent. The significant use based on once-through flows. Water efficiency of public transportation helps reduce green- is integrated into the activities in other sectors house gas emissions. High public transporta- as a result of cross-sector coordination among THE FIELD REFERENCE GUIDE | 195 IBRD 37445 JANUARY 2010 Profile of Singapore S out h SINGAPORE M A L AY S I A C hi na Singapore S ea • An island city-state at the southern tip of the Malay Peninsula, 136.8 km north of the equator; located south of the Malaysian State of Johor and north of Indonesia’s Riau Islands SINGAPORE • Population (2008): 4.84 million, including resident and nonresident S t r ai t of Singapore M al acca population • Land area: 700 km2 • Population density (2008): 6,814 people per km2 • GDP at current prices (2008): US$181.9 billion INDONESIA • Water and sewerage coverage: 100 percent 50 km. • Center of commerce and industry in Southeast Asia • Global financial center and trading hub with one of the busiest seaports Map 3.5 Location of Singapore in the world Source: Map Design Unit, General Services Department, World Bank. government departments and stakeholders. For mittee on Sustainable Development, which example, new housing developments are was established in 2008, enables integrated equipped with efficient rainwater collection approaches across ministerial boundaries in devices so that building roofs become water the formulation of strategies for sustainable catchment areas. growth. Singapore has introduced various tools and incentives to manage the resource supply and Integrated land use and transportation demand. For example, it has implemented stra- planning tegic water tariffs, creative energy policies, road Because of limited land resources, land use pricing schemes, and a vehicle quota system. planning has been important in maintaining These measures discourage people and busi- the quality of Singapore’s environment and nesses from using resources beyond the city’s supporting its economic growth. Since inde- capacity to supply them. pendence in 1959, Singapore has actively Singapore has demonstrated how a city may expropriated land to obtain public land for enhance economic productivity and growth, public facilities, promote city redevelopment, while minimizing ecological impacts and maxi- and catalyze new development. Today, about mizing the efficiency of resource use. The strong 90 percent of land is owned by the city-state leadership of the prime minister has been a ma- (Bertaud 2009). The city thus has strong jor driver in the city-state’s sustainable devel- authority over urban development plans and opment, complemented by an integrated one- their implementation. system approach and the active collaboration of Singapore’s Urban Redevelopment Authority stakeholders. within the Ministry of National Development is in charge of urban planning and promotes Singapore’s policy of high-density develop- Approaches and Ecological and ment. For example, the central business district Economic Benefits of Singapore has floor area ratios up to 13. On- going development near Marina Bay next to the Singapore is committed to promoting sustain- central business district aims to produce high- able development. The Inter-Ministerial Com- density, mixed use development with floor area 196 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES ratios up to 20 (URA 2009). Marina Bay will be 2004, although this represented a decline from more than a commercial center. It will also offer 67 percent in 1997 that was attributable to the housing, shops, hotels, recreational facilities, growing use of private cars. In addition, among and community zones such as green areas and major cities in developed countries, the full re- open spaces. covery of the operating costs of public transpor- Singapore’s high-density, built-up areas have tation through fares has been achieved only by enabled the preservation of open spaces, natu- Hong Kong, China, and by Singapore (LTA ral parks, and greenery. Around 10 percent of all 2008). Because the transportation system has land is designated as green space, including nat- been integrated into high-density development ural reserves (figure 3.26). The share of green areas with sizable populations, it has been pos- area in Singapore, including roadside greenery, sible to maintain the financial viability and was 36 percent in 1986, but increased to 47 per- high-quality service of the system. People are cent in 2007. This gain was realized despite well satisfied with public transportation1 (LTA population growth of 68 percent. 2008). Singapore’s transportation plan is coordinated and well integrated with land use planning Transportation measures (Leitmann 1999). Recent high-density develop- Singapore’s Land Transport Authority was es- ment, such as new towns, industrial estates, and tablished in 1995 by integrating four separate commercial areas, is well connected to the city’s land transport departments comprehensively mass rapid transit system. The mass rapid tran- to plan, control, and manage relevant policies. sit network runs underground in the city center The authority aims to provide a high-quality and on the surface outside the city center and in transportation system, enhance the quality of other major areas. The network is the backbone the lives of citizens, and maintain Singapore’s of Singapore’s public transportation system. economic growth and global competitiveness. Other transportation modes, such as buses and Singapore provides incentives to control the light rail transit, are well connected to network number of private cars. In 1990, the vehicle routes at interchange stations and serve local ar- quota system was introduced by the govern- eas. To ease transfers, Singapore introduced a ment to limit the number of newly registered distance-based through-fare structure. cars to 3 to 6 percent each year. A consumer The integration of the mass rapid transit, wishing to purchase a new car must apply to the light rail transit, and bus networks helped boost Land Transport Authority to conduct an open public transportation’s share in all transporta- bidding process. Car owners must obtain cer- tion modes (including taxis) to 63 percent in tificates of enrollment that are valid for a decade following registration (Leitmann 1999, CLAIR 2005). To respond to growing traffic and congestion, Singapore introduced an area licensing scheme in 1975 to manage cars entering the central busi- ness district during peak hours. In 1998, to boost effectiveness, the area licensing scheme was replaced by the current electronic road pricing system. The new system electronically collects fees from drivers through in-vehicle units installed in cars that enter designated areas of the city center during certain periods of peak Figure 3.26 A Green Area in Singapore Source: Photo by Hinako Maruyama. THE FIELD REFERENCE GUIDE | 197 traffic. The system has several price options pore has shown that comprehensive water depending on road types (arterial and highway) resource management is achievable using new and periods. Higher prices are applied during approaches and that these approaches are the most congested times. In addition, Singapore financially viable. uses several other demand control measures, such as encouraging off-peak driving or park- The institutional framework that enabled and-ride schemes through financial incentives the integrated approach (Leitmann 1999, CLAIR 2005). The Public Utilities Board (PUB), a statutory Taken together, these road traffic, public board under the Ministry of the Environment transportation, and mobility measures mean and Water Resources, manages the entire wa- that 71 percent of trips in Singapore may be ter cycle, including collection, production, dis- completed in less than an hour (IMCSD 2009). tribution, and reclamation. It is the national Traffic congestion is alleviated, and average water agency of Singapore. When PUB was es- traffic speed is maintained. Unnecessary vehic- tablished in 1963, it managed several utilities, ular emissions are thus avoided. This translates including water, electricity, and gas. To reduce into less greenhouse gas linked to climate costs and improve services, PUB underwent change. However, travel demand is expected institutional restructuring in 2001. The elec- to increase from 8.9 million trips in 2008 to tricity and gas services were privatized, and 14.3 million trips in 2020. Within Singapore, 12 sewerage and drainage functions were trans- percent of the land is dedicated to roads, and ferred to PUB. Since 2001, PUB has developed 15 percent to housing. Moreover, it is highly un- and implemented comprehensive and holistic likely that more land can be dedicated to roads approaches to the water system, rather than to accommodate travel demand (LTA 2008). managing each water function individually Singapore must thus accommodate increased (water supply, sewage, drainage, and so on). In demand through public transportation services, this way, the water loop is closed, which enables not automobiles. PUB to implement the Four National Taps, a long-term strategy to ensure that Singapore Water resource management has sustainable water supplies (figure 3.27). Singapore is considered a water-scarce city- The Four National Taps are (1) water from local state despite high annual precipitation of 2,400 catchments, (2) imported water, (3) desalinated millimeters per year (Tortajada 2006a).2 Singa- water, and (4) NEWater (reclaimed water from pore imports water from neighboring Malaysia. wastewater). By approaching the water system To reduce dependency on external water sources, holistically, PUB is able to efficiently address Singapore is taking steps to improve water se- various issues and activities, such as water curity and establish an independent water resource protection, storm water management, supply within its own territory. The approach desalination, demand management, water catch- Singapore has developed and implemented to ment management, private sector engagement, achieve this aim is considered successful because and community-driven programs, including of the city-state’s institutional effectiveness and public education and awareness campaigns. its highly efficient control of water demand PUB also runs a research and development facil- and supply. Singapore successfully lowered its ity in which experts research water technology. annual water demand from 454 million tons in PUB’s effective engagement of the private 2000 to 440 million tons in 2004, while its sector is a distinctive aspect. To lower costs, population and GDP grew by 3.4 and 18.3 per- PUB harnesses the private sector in areas where cent, respectively (Tortajada 2006a). Singa- it does not have competence or competitive 198 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES tions. By 2009, water catchment areas will have expanded from one-half to two-thirds of Singapore’s land surface. Activities that generate pollution are allowed on only 5 per- cent of Singapore’s land area; all other land is protected. Water catchments provide about half of Singapore’s water needs (Tigno 2008). To improve environmental and resource management, the government pays close at- tention to water catchment areas and to the locations of industrial sites. Singapore also pursues integrated urban planning. For ex- ample, PUB and the Housing and Develop- ment Board, which is under the Ministry of Figure 3.27 A Closed Water Loop in Singapore National Development, collaborate to en- Source: PUB (2008a). hance Singapore’s water catchment areas. PUB considers rainfall an important re- source, and rainfall collection and drainage advantage. For example, public-private part- systems are installed on the roofs of hous- nerships are used in water desalination and ing structures developed by the Housing wastewater reclamation. and Development Board. Newly developed properties are equipped with rainfall col- Supply management lection and drainage systems. Collected wa- Because water is scarce, Singapore carefully ter is stored in neighboring holding basins manages its water supply. Sewerage covers and transferred to reservoirs. This strategy 100 percent of the city-state area, and all waste- allows built-up areas to participate in water water is collected. Singapore has a separate catchment. Two-thirds of Singapore’s land drainage system to ensure wastewater and run- area is expected to participate in water off do not mix. Wastewater and drainage water catchment. are recycled into the city-state’s water supply. The Four National Taps strategy considers 2. Imported water: Singapore will continue to the following as water sources (PUB 2008b): import water from Malaysia under two bi- lateral agreements that expire in 2011 and 1. Water from local catchments (catchment 2061 respectively. Imported water accounts management): Rainwater is collected from for about a third of the country’s water rivers, streams, canals, and drains and stored needs (Tigno 2008). in 14 reservoirs. Because storm drains are separated from the sewerage system, rainwa- 3. Desalinated water: In September 2005, Singa- ter may be sent directly to rivers or reservoirs pore opened a US$200 million desalination for later treatment to produce tap water. Res- plant, which was PUB’s first public-private ervoirs are linked via pipelines. Excess water partnership project. The plant can produce may be pumped from one reservoir to another, 30 million gallons (136,000 cubic meters) of thus optimizing storage capacity and prevent- water a day; it is one of the largest seawater ing flooding during heavy rains. Catchment reverse osmosis plants in the region. In 2007, areas are protected, and polluting activities the plant provided about 10 percent of the are prohibited in these areas by strict regula- country’s water needs (Tigno 2008). THE FIELD REFERENCE GUIDE | 199 4. NEWater: Used water (wastewater) is also aging sewerage network posed problems. The an important water resource. Wastewater is new system comprises deep sewerage tunnels collected through an extensive sewerage that intercept water flows from existing sew- system and treated at water reclamation erage pipes, pumping stations, and linked plants. Wastewater is purified using ad- sewerage pipes. The designed lifespan of the vanced membrane technology to produce system is 100 years. Because wastewater flows high-grade reclaimed water, known as by gravity through the system to a centralized NEWater, which is safe to drink. Because water reclamation plant (the Changi plant), such water is purer than tap water, it is ideal intermediate pumping stations may be abol- for industry uses that require high-quality ished. This removes the risks of surface water water, such as the manufacture of precision pollution caused by failures at intermediate equipment and information technologies. pumping stations and the risks of damage to Each day, PUB blends 6 million gallons pumping mains. Water reclamation plants and (28,000 cubic meters) of NEWater with raw pumping stations require about 300 hectares reservoir water, which is later treated to of land. New water reclamation plants in the become tap water. The amount to be blend- deep tunnel system occupy only 100 hectares; ed will increase to 10 million gallons a 200 hectares of land may therefore be released day (46,000 cubic meters) by 2011. Four for other uses. Building the system proved to NEWater factories operate in Singapore, be more cost-effective (by more than S$2 bil- and a fifth plant is being built under a pub- lion, or about US$1.35 billion) than expanding lic-private partnership agreement. In 2008, and upgrading existing infrastructure (Tan NEWater satisfied more than 15 percent of 2008). The system also enhances the closed Singapore’s total daily water needs, and the water loop by collecting wastewater effective- share is expected to rise to 30 percent by ly for NEWater production. 2010 (PUB 2008c, 2008d). Demand management The water supply may be optimized if nonrev- PUB has a well-planned, holistic policy for enue water or water lost to leaks is reduced. managing water demand. Tariffs rely on several The 4.4 percent share of nonrevenue water in rates depending on consumption level, not Singapore’s water supply in 2007 was low (Lau lump-sum proxies (table 3.2). If domestic use 2008), and there are no illegal connections surpasses more than 40 cubic meters per month, (Tortajada 2006a).3 the unit charge becomes higher than the non- PUB has built a deep tunnel sewerage sys- domestic tariff. The basic water tariff has tem as an integral part of the water loop. increased each year since 1997. The water con- Though sewerage coverage is 100 percent, the Table 3.2 Water Tariff in Singapore CONSUMPTION TARIFF WATER CONSERVATION SANITARY APPLIANCE FEE AFTER BLOCK, BEFORE GST, TAX BEFORE GST, WATERBORNE GST, S$/ CHARGEABLE SERVICE M3/MONTH S$/M3 % OF TARIFF FEE AFTER GST, S$/M3 FITTING/MONTH Domestic 0 to 40 1. 1 7 (US$0.81 ) 30 0.30 (US$0.21 ) 3.00 (US$2.07) above 40 1 .40 (US$0.97) 45 0.30 (US$0.21) 3.00 (US$2.07) Nondomestic all units 1.1 7 (US$0.81) 30 0.60 (US$ 0.41) 3.00 (US$ 2.07) Source: PUB Web site, http://www.pub.gov.sg/mpublications/FactsandFigures/Pages/WaterTariff.aspx (accessed May 2009) Note: The U.S. dollar amounts shown in parentheses reflect the exchange rate of S$1.00 = US$0.69 as of June 4, 2009. Before GST (goods and services tax) and after GST indicate tariffs and fees excluding and including, respectively, the GST of 7 percent as of May 2009, rounded to the nearest cent. GST = goods and services tax; M3 = cubic meter. 200 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 3.3 Water Consumption and Water Bills per Household in Singapore, 1995, 2000, and 2004 INDICATOR 1995 2000 2004 Population (1,000s) 3,524.5 4,028 4,167 GDP (US$ millions) 84,288.1 92,720.2 1 09,663.7 National water consumption (millions m3) 403 454 440 Average monthly water consumption (m3) 21.7 20.5 19.3 Average monthly water bill, including taxes (S$) 14.50 31 .00 29.40 Source: Tortajada (2006b). Note: m3 = cubic meter. servation tax is levied to reinforce water conser- environment is thus a critical issue. The Minis- vation. In addition, a waterborne fee is charged try of the Environment and Water Resources to cover the costs of wastewater treatment and issued the Singapore Green Plan 2012 in 2002 the maintenance and extension of the public and updated it in 2006. The plan addresses six sewerage system. This represents a financial main areas: air and climate change, water, waste disincentive on household water consumption. management, nature, public health, and inter- Consequently, as water bills are raised (inclu- national environmental relations (MEWR sive of all taxes), water consumption decreases 2006). The plan builds on the 1992 Singapore (table 3.3). The tariff system has significantly in- Green Plan. Since 1992, local officials have ac- fluenced water usage. Although annual water tively tackled environmental issues by imple- use in Singapore increased from 403 million cu- menting various activities involving a range of bic meters in 1995 to 454 million cubic meters stakeholders, including citizens and public and in 2000, these demand control policies helped private sector entities. In 2009, the Sustainable lower demand to 440 million cubic meters in Singapore Blueprint—“A Lively and Livable 2004 (Tortajada 2006b). Singapore: Strategies for Sustainable Growth”— was launched by the Inter-Ministerial Commit- Social considerations and awareness raising tee on Sustainable Development to ensure that To ensure equity, the government provides di- Singapore not only met the target set in the rect subsidies to lower-income families. Lifeline Green Plan, but also would go beyond this to tariffs subsidize all water consumers, not only achieve economic growth and a good living en- those who cannot afford to pay high tariffs. As vironment in an integrated way (IMCSD such, Singapore provides subsidies only to tar- 2009). geted poor households. Targeted subsidies are Energy: To avoid overconsumption, Singa- widely considered more efficient in socioeco- pore does not subsidize energy. Electricity sup- nomic terms relative to subsidies on the initial plies are established by market demand and amount of water consumed by all households competition, and industries are encouraged to irrespective of economic status. The tariff sys- find better solutions and to be energy efficient. tem makes clear that those who consume more For improvement of cost-effectiveness, natural water will be penalized (through basic tariffs gas–based electricity generation has recently and taxes) even more heavily than commercial surpassed oil-based generation. The share of and industrial uses. electricity produced using natural gas rose from 19 percent in 2000 to 79 percent in 2007. In Other environmental approaches addition, energy consumption per unit of GDP Singapore supports intense economic activity has been reduced, and the efficiency of electric- in the small island-state. Maintaining a quality ity generation has been enhanced (IMCSD THE FIELD REFERENCE GUIDE | 201 2009). To raise public awareness about energy To promote recycling and waste reduction, concerns, the government has introduced E2 Singapore’s National Recycling Program encour- Singapore, a national energy efficiency plan. The ages various activities, and per capita domestic government has also made investments in energy waste has fallen despite economic growth. In research and technologies. For example, to capi- 2008, the recycling rate reached 56 percent. talize on Singapore’s tropical location, the gov- Additionally, government-industry collabora- ernment promotes solar energy research with a tion has promoted reduced waste from packag- view to reinforcing the clean energy sector. ing (IMCSD 2009). Air pollution measures: To minimize air pol- River cleanup: Singapore has successfully lution, land use plans locate industrial facilities cleaned and restored the environmental condi- outside the urban area. Car emissions are another tions of its once deteriorated rivers. In 1977, source of air pollution. The vehicle quota sys- Singapore and the prime minister supported a tem and the electronic road pricing system help major project to clean the Singapore River and reduce traffic congestion, and the integrated Kallang Basin, which covers about one-fifth of public transportation system encourages public the city-state’s land area. Uncontrolled waste transportation ridership. Additional car emis- and wastewater from farms, houses not on the sions are avoided, including airborne particulate sewerage system, and squatters were being matter and greenhouse gases. In 2008, 96 per- discharged directly into the rivers. In response, cent of the days in the year showed good air houses and other polluting activities were relo- quality according to the Pollutant Standards cated, and efforts were undertaken to improve Index (IMCSD 2009). the physical condition of the rivers. The river- Waste management: Rapid economic and beds were dredged; waterfront facilities were population growth has resulted in increased upgraded; and greenery was added to river- waste. Because it has limited land for landfills, banks. Government agencies, grassroots com- Singapore incinerates wastes that cannot be munities, and nongovernmental organizations recycled or reused. Incineration reduces the contributed to the cleanup. The rivers were weight and volume of waste by, respectively, revitalized in 10 years at a cost of S$200 million 10 percent and 20 percent, and has proven to be (Best Policy Practices Database). Today, the river an efficient waste treatment process (CLAIR waterfronts, including canals and reservoirs, 2005). Electricity produced from incineration are well preserved and maintained. These river provides 2 to 3 percent of the city’s electricity zones act as water catchments and flood needs (IMCSD 2009). Singapore has only one prevention areas, while providing community remaining landfill site, which is located 8 kilo- recreational space (for example, see PUB meters south of the mainland and is the city- 2008e). state’s first constructed offshore landfill. There Singapore’s waterways, including its rivers is no more land available for landfills or the dis- and reservoirs, are designed to be people friend- posal of residue from incineration. It is expected ly. The designs complement Singapore’s vision that the life of this offshore landfill will surpass as a city of gardens and water. Waterways and its 2040 closure because of the recycling efforts embankments are often recreational sites; of citizens (SG Press Centre 2009). However, moreover, people are reluctant to contaminate a the city is facing waste management challenges, resource they eventually drink. PUB provides especially as daily waste increased by a factor of educational opportunities through a visitor 6, to 7,600 tons, between 1970 and 2000 owing center and learning courses. PUB also encour- to economic growth, population increases, ages water conservation by providing tips and and improved living standards (CLAIR 2005). devices for saving water in households. 202 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Greening: Singapore’s Garden City campaign understanding of local conditions to develop a has been promoted since the 1970s to green the high-density city that preserves green spaces country by planting trees along roads, in vacant and open spaces. Public transportation works plots, on reclaimed land, and in new develop- efficiently and is financially viable and inte- ments. Flowers are added, too. Since Singa- grated with land uses. Because of Singapore’s pore’s independence in 1959, more than a mil- comprehensive and integrated management lion trees have been planted, and a high standard of resources, the city-state is successfully has been achieved in landscaping in the country addressing ecological, economic, and social (Leitmann 1999). concerns, while ensuring sustainability and productivity. Housing The government aims to supply affordable housing to its citizens. The Housing and Devel- Notes opment Board plans and develops public hous- ing and facilities in new towns. Because land is 1. According to the Land Transport Authority (LTA 2008), 86.5 percent of the population are satisfied limited, high-density development and high- with the bus and rail services. About 80 percent rise buildings are promoted for commercial, are satisfied with the overall travel times on buses business, and residential uses. Urban renova- and trains. About 85 percent are satisfied with the accessibility and the locations of bus stops and tion and the development of new and satellite mass rapid transit stations. towns are encouraged; 20 such towns have 2. For comparison, data on annual rainfall among been constructed. New towns are connected to major cities in the world show the following: Bang- public transportation and Singapore’s city cen- kok, 1,530 millimeters; Beijing, 575 millimeters; ter. In 2003, 84 percent of Singaporeans resided Jakarta, 1,903 millimeters; Kuala Lumpur, 2,390 millimeters; London, 751 millimeters; Manila, 1,715 in publically built housing, and 92.8 percent millimeters; New York, 1,123 millimeters; had their own housing (CLAIR 2005). Since Shanghai, 1,155 millimeters; Tokyo, 1,467 millime- 1989, the Housing and Development Board has ters (see Statistics Bureau 2008). implemented an ethnic integration policy to 3. In most urban centers in Asia, nonrevenue water accounts for around 40 to 60 percent of water ensure a balanced mix of ethnic groups in pub- supplies. lic housing (HDB 2009). Singapore has myriad ethnic groups, including Chinese, Indians, and Malays. The policy prevents the establishment of racial enclaves and promotes diverse com- References munities and social integration. Bertaud, Alain. 2009. “Urban Spatial Structures, Mobility, and the Environment.” Presentation at “World Bank Urban Week 2009,” World Bank, Washington, DC, March 11. Lesson Learned in Best Policy Practices Database. Asia-Pacific Forum for the Singapore Case Environment and Development. http://apfed-db. iges.or.jp/dtlbpp.php?no=23 (“Cleaning up of Singapore faces challenges related to the scar- Singapore River and Kallang Basin”). city of land and natural resources amid strong CLAIR (Council of Local Authorities for International Relations). 2005. “Singapore no Seisaku” シンガポ economic and population growth. Singapore ールの政策 [Policies of Singapore]. Tokyo: CLAIR. shows that innovative and comprehensive HDB (Housing Development Board). 2009. “Ethnic management of land and other resources is Group Eligibility.” HDB, Singapore. http://www. achievable. Singapore has capitalized on its hdb.gov.sg/fi10/fi10004p.nsf/ECitizen/ SELLING/$file/Selling_HDBEnq_FAQB.htm. THE FIELD REFERENCE GUIDE | 203 IMCSD (Inter-Ministerial Committee on Sustainable ———. 2008e. “Explore Bedok Reservoir.” Brochure, Development). 2009. “A Lively and Liveable PUB, Singapore. http://www.pub.gov.sg/ Singapore: Strategies for Sustainable Growth.” abcwaters/Documents/Bedok_reservoir_nov25. Ministry of the Environment and Water Resources pdf. and Ministry of National Development, Singapore. SG Press Centre. 2009. “National Environment Agency http://app.mewr.gov.sg/web/contents/ Launches a Commemorative Book to Celebrate ContentsSSS.aspx?ContId=1034. Semakau Landfill’s 10th Anniversary.” Press Lau, Yew Hoong. 2008. “Sustainable Water Resource release, Singapore Government, Singapore. Management in Singapore.” Presentation at the http://www.news.gov.sg/public/sgpc/en/media_ United Nations Economic and Social Commission releases/agencies/nea/press_release/ for Asia and the Pacific, “1st Regional Workshop P-20090808-1. on the Development of Eco-Efficient Water Statistics Bureau. 2008. “Sekai no toukei 2008” 世 界  Infrastructure in Asia Pacific,” Seoul, November の 統 計 2008 [World Statistics 2008]. Tokyo: 10–12. http://www.unescap.org/esd/water/ Statistics Bureau, Ministry of Internal Affairs and projects/eewi/workshop/1st/asp. Communications. http://www.stat.go.jp/data/ Leitmann, Josef. 1999. Sustaining Cities: Environmental sekai/pdf/2008al.pdf. Planning and Management in Urban Design. Statistics Singapore. 2009. “Statistics: Time Series on New York: McGraw-Hill. Population (Mid-Year Estimates).” Singapore LTA (Land Transport Authority). 2008. “LTMaster- Department of Statistics, Singapore. http://www. plan: A People-Centred Land Transport System.” singstat.gov.sg/stats/themes/people/hist/popn. LTA, Singapore. http://www.lta.gov.sg/ltmp/ html. LTMP.html. Tan, Yok Gin. 2008. “Managing the Water Reclamation MEWR (Ministry of the Environment and Water Infrastructure for Sustainability: The Singapore Resources). 2006. The Singapore Green Plan 2012. Water Story.” Presentation at the International Singapore: MEWR. Water Association, “World Water Congress 2008,” PUB (Public Utilities Board). 2008a. “About Us.” PUB, Vienna, September 9. Singapore. http://www.pub.gov.sg/about/Pages/ Tigno, Cezar. 2008. “Country Water Action, Singapore; default.aspx. NEWater: From Sewage to Safe.” Asian Develop- ———. 2008b. “Four National Taps Provide Water for ment Bank, Manila. http://www.adb.org/Water/ All.” PUB, Singapore. http://www.pub.gov.sg/ Actions/sin/NEWater-Sewage-Safe.asp. water/Pages/default.aspx. Tortajada, Cecilia. 2006a. “Water Management in ———. 2008c. “NEWater Wins Its Second International Singapore.” International Journal of Water Award at Global Water Awards 2008.” Press Resources Development 22 (2): 227–40. release, April 22, PUB, Singapore. http://www.pub. ———. 2006b. “Singapore: An Exemplary Case for gov.sg/mpublications/Pages/PressReleases. Urban Water Management.” Additional Paper, aspx?ItemId=176. Human Development Report, United Nations ———. 2008d. “Plans for NEWater.” PUB, Singapore. Development Programme, New York. http://www.pub.gov.sg/newater/plansfornewater/ URA (Urban Redevelopment Authority). 2009. Pages/default.aspx. “Embrace the World at Marina Bay.” URA, Singapore. http://www.marina-bay.sg/index.html. 204 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CASE 4 Yokohama, Japan Waste Reduction by Engaging Yokohama has been able to shut down two Stakeholders in the Private Sector incinerators because of the significant reduc- and Civil Society tion in waste. The incinerator closures have saved US$6 million4 in annual operating costs For Eco2 cities, the case of Yokohama offers and US$1.1 billion that would have been needed information on ways to realize significant to renovate the incinerators (table 3.4) (City of environmental and economic benefits by engag- Yokohama 2006). Around 5 percent of the fiscal ing private sector and civil society stakehold- year 2008 budget of the Resources and Wastes ers. Yokohama is the largest city in Japan Recycling Bureau, the city’s waste management (figure 3.28).1 It reduced waste by 38.7 percent entity, was derived from the sale of recycled between fiscal years2 2001 and 2007, despite material (US$23.5 million). In addition, the city the growth of 165,875 people in the city’s raises US$24.6 million annually by selling the population. This reduction in waste is attribut- electricity generated during the incineration able to the city’s success in raising public process (City of Yokohama 2008a). awareness about environmental issues and the Yokohama’s success demonstrates that a city active participation of citizens and businesses may achieve waste reduction through the coop- in Yokohama’s 3Rs program (reduce, reuse, eration of its stakeholders, particularly citizens. and recycle).3 Reducing waste also results in significant cuts Figure 3.28 The Yokohama Waterfront Sources: Yokohama Convention and Visitors Bureau (left) and City of Yokohama (right). THE FIELD REFERENCE GUIDE | 205 IBRD 37446 JANUARY 2010 C H IN A RUSSIAN FED. Profile of Yokohama Yokohama DEM. PEOPLE’S Sea of • The largest city in Japan after Tokyo REP. OF KOREA Japan • Population (2009): 3.65 million • Land area: 435 km2 PACIFIC REP. OF • Population density (2009): 8,409 persons per km2 KOREA OCEAN JAPAN • The Port of Yokohama was opened to international trade in 1859, the year the Tokyo Yokohama government of Japan decided to abandon its isolationist policy and initiate mod- ernization and the opening to foreign cultures. The city is celebrating the 150th anniversary of the port’s opening in 2009. JAPAN • In 2005, about 21 percent of the population was commuting out of the city for purposes of employment or education. • The population becomes quite involved in participatory civil activities. • In 2008, the city was selected as one of Japan’s Eco-Model Cities. Map 3.6 Location of Yokohama Source: Map Design Unit, General Services Department, World Bank. Table 3.4 The Power of Stakeholder Engagement in Yokohama, ated more waste, and this has put pressure on Fiscal Years 2001–07 the city’s landfill sites, which have limited ca- Total waste reduction 623,000 tons (−38.7 percent) pacity. In 2000, the city had seven incinerators Economic benefit US$1.1 billion in capital costs saved (of which six were in operation) and two land- because of two incinerator closures fill sites (an inland site and a sea reclamation US$6 million in operating costs saved site). To reduce the environmental impact of in- because of two incinerator closures cineration and landfill disposal and to nudge Life of landfill sites was extended Japanese society toward a zero waste cycle, CO2 reduction 840,000 tons Yokohama started the G30 Action Plan in 2003. Source: Author compilation (Hinako Maruyama). The G30 plan aims to reduce waste by 30 per- cent by fiscal year 2010, using fiscal year 2001 in greenhouse gas emissions. In addition, a city waste quantities as baselines. may cut expenditures by reducing waste, while The G30 plan identifies the responsibilities generating revenue from the recyclables and of all stakeholders—households, businesses, by-products resulting from waste treatment. and the city government—to reduce waste Encouraged by these achievements, Yokohama through the 3Rs based on polluter pay schemes now aims to reduce greenhouse gas emissions and extended producer responsibility princi- to lead Japan toward the national reduction tar- ples (City of Yokohama 2003). The plan pro- get and demonstrate its place as one of the Eco- vides integrated approaches to reduce waste Model Cities.5 that are supported by detailed action pro- grams. For example, Yokohama citizens must separate waste into 15 categories and properly Background and Approaches to dispose of each category of waste at designat- Waste Reduction ed places and times. Businesses are requested to provide products and services that produce Yokohama’s population has increased slowly by less waste and to implement the 3Rs actively. 0.5 to 1 percent per year. Population growth and The city, which is one of the largest entities the associated economic activities have gener- producing waste, is committed to decreasing 206 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES waste and to working with citizens and busi- nesses as a model player. To disseminate the G30 approach, the city conducts environmental education and promo- tional activities that enhance public awareness and foster collaborative action to achieve the G30 goal. To promote adequate waste separation, the city has undertaken public activities, includ- ing more than 11,000 seminars among neighbor- hood community associations—80 percent of Yokohama’s population participates in neigh- borhood community associations—to explain waste reduction methods such as the segrega- tion of waste (City of Yokohama 2008b; see figure 3.29). In addition, about 470 campaigns have been held at railway stations; about 2,200 awareness campaigns have also been orga- nized in the mornings at local waste disposal points; and so on (City of Yokohama 2006). Campaign activities have been initiated along local shopping streets, at supermarkets, and at various events (figure 3.29). The G30 logo is posted in all city publications, on city-owned vehicles, and at city events. As a result, the waste reduction target of 30 percent was achieved in fiscal year 2005, five years earlier than expected (fiscal year 2010). By fiscal year 2007, waste had fallen 38.7 percent relative to 2001, despite the growth in the population by 165,875 people over the period (table 3.5, figure 3.30). Figure 3.29 Public Awareness Campaigns for Waste Reduction and Separation in Yokohama Source: City of Yokohama. Table 3.5 Waste in Yokohama, Fiscal Years 2001–07 INDICATOR FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Population (millions) 3.46 3.50 3.53 3.56 3.58 3.60 3.63 General waste, excluding recyclables (1,000s of tons) 1,609 1,586 1,532 1,316 1,063 1,032 987 Waste from households (1,000s of tons) 935 928 91 9 855 651 652 628 Waste from business activities (1,000s of tons) 674 658 61 3 461 41 2 380 359 Collected recyclables, including compost waste (1,000s of tons) 50 50 53 72 1 66 1 62 1 60 Sources: City of Yokohama (2008a); City of Yokohama statistics portal, http://www.city.yokohama.jp/me/stat/. Note: FY = fiscal year. THE FIELD REFERENCE GUIDE | 207 Figure 3.30 Waste Reduction in Yokohama, Fiscal Years 2001–07 Sources: Author compilation (Hinako Maruyama) based on City of Yokohama (2008a); City of Yokohama statistics portal, http://www.city.yokohama.jp/me/stat/. Figure 3.31 The Waste Flow in Yokohama, Fiscal Year 2007 The Environmental Benefits of Source: Author compilation (Hinako Maruyama) based on City of Yokohama (2008a, 2008c). Waste Reduction Note: The amounts in bold are thousands of tons. kWh = kilowatt-hour; mil.= million. In Yokohama, almost 99 percent of nonrecycla- ble waste is brought to incinerators for treat- ment (figure 3.31). Waste treatment is the largest must produce additional electricity. In Yokoha- contributor to carbon dioxide (CO2) emissions ma, this additional supply of electricity was among the city’s public works activities, which equal to 30,000 tons of CO2; thus, the balance of include office work, waste treatment, water pro- avoided CO2 is 840,000 tons (table 3.6), which is vision, sewage treatment, and public transporta- equivalent to the amount of CO2 that 60 million tion. For instance, CO2 linked to waste treatment Japanese cedar trees are able to absorb in one comprised 54.8 percent of total CO2 emissions year. Planting that many cedar trees would re- from city public works in fiscal year 2000. quire an area of approximately 600 square kilo- According to Yokohama’s life-cycle assess- meters, an area 27 percent larger than the city ment, the waste reduced between fiscal years (City of Yokohama 2009). 2001 and 2007 was equivalent to avoiding 840,000 tons of CO2 emissions. This included 760,000 tons of avoided CO2 emissions from ob- The Economic Benefits of viated waste collection, incineration, and land- Reduced Waste fill disposal and 110,000 avoided tons of CO2 from recycling waste. Incinerators produce In 2000, the city had seven incinerators, but, by electricity from heat and steam generated by 2006, two incinerators had been shut down burning waste, then reuse this electricity for owing to significant reductions in waste. This their own operations or sell it to electricity com- closure represented a savings of US$1.1 billion panies or other facilities. However, because re- in capital expenditures that would have been duced waste results in less incineration and needed to reconstruct and renovate the two in- electricity production, the electricity company cinerators. It also saved annual operating expen- that purchased electricity from incinerators ditures of US$6 million (that is, US$30 million 208 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 3.6 CO2 Reduction through Waste Reduction, Fiscal Years 2001–07 tons INDICATOR OF REDUCTION QUANTITY OF CO2 CO2 reduction because of reduced waste collection, incineration, and landfill 760,000 CO2 reduction because of recycling 1 1 0,000 CO2 increase caused by the additional supply of electricity by the electricity utility (−30,000) Total CO2 reduction 840,000 Source: City of Yokohama (2009). in savings from obviated annual operating costs, under competitive tendering; and 2.4 percent minus US$24 million in expected annual ex- was harnessed by nearby public facilities, such penditures for intermediate waste treatment as a sewage treatment plant, sludge recycling and separation costs, recycling, contracting, and facility, and seaside line railway. In fiscal year so on) (City of Yokohama 2006). 2007, US$24.6 million was earned by selling Yokohama has two landfill sites. When the 200 million kilowatt-hours of electricity, which G30 was planned in 2003, it was forecast that is equivalent to one year of electricity for 57,000 the landfills would have 100,000 cubic meters households (City of Yokohama 2008a). of capacity remaining in 2007 and would be Yokohama began earning revenue by selling full by 2008. However, owing to the waste re- recyclables, such as cans, bottles, paper, furniture, duction achieved, the two sites had 700,000 and electronic appliances, as well as reusable cubic meters of capacity remaining in 2007. metal and material produced from incinerated The value of the additional capacity of 600,000 ash. Collected recyclables are sold to private cubic meters is equivalent to US$83 million companies for additional treatment and reuse. (City of Yokohama 2006). In addition, the de- Incineration ash is recycled into construction velopment of a new landfill site or reclamation materials. About US$23.5 million in revenue is area in the sea has been postponed. secured by selling recyclables to treatment com- panies (City of Yokohama 2008a). As a result of these measures, about 10 per- The Economic Benefits of cent of the US$480 million budget of the the Efficient Use of Resources Resources and Wastes Recycling Bureau in fis- cal year 2008 came from selling recyclables The city’s five incinerators produce heat and (US$23.5 million) and electricity generated steam during the incineration of waste. The from incineration (US$24.6 million) (City of heat and steam are used to operate the incinera- Yokohama 2008a, 2008c). tors, including the heating, cooling, and genera- To promote efficient waste management, tion of hot water, and to power adjacent public the city also began contracting key activities facilities, including an indoor pool and elder (such as waste collection and transportation) care facilities. Turbines in the incinerators to the private sector, which often provides produce electricity from the steam. In fiscal higher-quality services at lower cost. Between year 2007, the incinerators produced 355 mil- 2003 and 2005, the city saved US$26.4 million lion kilowatt-hours of electricity. Of this power, in operating costs by contracting services to 42.2 percent was reused by the incinerators; the private sector (City of Yokohama 2006). 55.4 percent was sold to electricity companies THE FIELD REFERENCE GUIDE | 209 Lesson Learned in Notes the Yokohama Case 1. In Japan, there are several hierarchies and categories of administrative areas defined The Yokohama case shows that the cooperation with such terms as prefecture, city, county, ward, of stakeholders, particularly citizens, is impor- town, and village. Among those areas in Japan tant in achieving city targets. Of course, substan- categorized as city, Yokohama has the largest tial and consistent efforts are needed at the population. 2. Yokohama’s fiscal year runs between April and grassroots level to raise the awareness of citi- March of the following year. zens and businesses and to attempt to change 3. In this case study, waste denotes waste produced behaviors. However, the measures in Yokohama by households or businesses (commercial and have not required new technology or huge in- services). Industrial waste is not included. See also vestments. Moreover, cities can count on citizen City of Yokohama (2008a) and Yokohama statistics portals, http://www.city.yokohama.jp/me/stat/ power to make headway once people under- and http://www.city.yokohama.jp/me/stat/ stand relevant issues, change their behavior, and index-e.html. become active players in implementing plans. 4. In this case study, $ = ¥100 was used for currency Encouraged by the achievements of the calculation. G30, Yokohama now aims to continue to re- 5. The government launched the Eco-model Cities Initiative in 2008. A total of 13 cities were selected duce greenhouse gas emissions to lead Japan to serve as model cities. The selection was based and demonstrate its qualities as one of the on (a) achievement of a difficult target in the country’s Eco-model Cities. In Yokohama’s reduction of greenhouse gases, (b) a comprehen- sive and original approach that may be replicated 2008 Climate Change Action Policy, CO-DO 30, by other cities, (c) appropriate local conditions and the city aims to reduce greenhouse gas emis- features, (d) the feasibility of the target and the sions by more than 30 percent by fiscal year plans and wide stakeholder participation, and 2025 and by more than 60 percent by fiscal (e) long-term and sustainable implementation. Apart from Yokohama, the cities of Iida, Kita- year 2050 (relative to the levels in fiscal year Kyushu, Kyoto, Minamata, Miyakojima, Obihiro, 2004) (City of Yokohama 2008d). Action plans Sakai, Toyama, and Toyota; the towns of Kasihara are being established on the basis of seven and Shimokawa, and the Tokyo Ward of Chiyoda approaches to realize the plan’s targets.6 In were selected. 6. The seven approaches are (a) living: to change addition, Yokohama aims to increase its use of society with anti-climate-change actions among renewable energy by a factor of 10 relative to individuals; (b) business: to change society with fiscal year 2004 baselines. Citizens are actively anti-climate-change business styles; (c) building: participating in these activities, including by to plan and develop a city through energy-efficient building construction; (d) transportation: to purchasing city-issued bonds to fund the con- promote city planning and development to create struction of a new wind power generator. an attractive city where people may travel on foot, Finally, in light of Yokohama’s reduced waste by bicycle, or on public transportation and to and the need to soon undertake costly renova- promote anti-climate-change measures with regard to automobiles; (e) energy: to increase tions of an aged incinerator, the city is plan- recyclable energy ten-fold; (f ) city and green areas: ning to close one more incinerator by fiscal to plan and develop a green city through urban year 2010 and, henceforth, use only four incin- heat island measures and so on; and (g) city hall: to develop an anti-climate-change city hall. erators. More reductions in CO2 emissions and operational savings are expected. 210 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES References ———. 2008b. “Kankyou model toshi teian sho” 環境モ デル都市提案書 [Proposal for Eco-Model Cities]. Climate Change Policy Headquarters, City of City of Yokohama. 2003. “Yokohama shi ippan Yokohama, Yokohama, Japan. http://www.city. haikibutsu shori kihon keikaku, Yokohama G30 yokohama.jp/me/kankyou/ondan/model/. plan” 横浜市一般廃棄物処理基本計画、 横浜G30 ———. 2008c. “Heisei 20 nendo yosan gaiyou” 平成20年 プラン [City of Yokohama, Master Plan for Manage- 度予算概要 [Budget Outline for Fiscal Year 2008]. ment of General Waste: Yokohama G30 Plan]. Resources and Wastes Recycling Bureau, City of City of Yokohama, Yokohama, Japan. http://www. Yokohama, Yokohama, Japan. http://www.city. city.yokohama.jp/me/pcpb/keikaku/kei1.html. yokohama.jp/me/pcpb/keikaku/yosan/20yosan. ———. 2006. “Yokohama G30 Plan—Kenshou to kongo pdf. no tenkai ni tsuite” 横浜G30プラン 「検証と今後の ———. 2008d. “CO-DO 30: Yokohama Climate Change 展開」 について [Yokohama G30 Plan: Verification Action Policy.” Leaflet, Climate Change Policy and next steps]. Resources and Wastes Recycling Headquarters, City of Yokohama, Yokohama, Bureau, City of Yokohama, Yokohama, Japan. Japan. http://www.city.yokohama.jp/me/kankyou/ http://www.city.yokohama.jp/me/pcpb/keikaku/ ondan/plan/codo30/leaf_english.pdf. G30rolling/. ———. 2009. ごみの分別による効果 - 二酸化炭素削減効 ———. 2008a. “Heisei 20 nendo jigyou gaiyou” 平成20年 果 [Effect of segregation of garbage—reduction of 度事業概要 [Operation Outline for Fiscal Year carbon dioxide]. Resources and Wastes Recycling 2008]. Resources and Wastes Recycling Bureau, Bureau, City of Yokohama, Japan. http://www.city. City of Yokohama, Japan, Yokohama. http://www. yokohama.jp/me/pcpb/shisetsu/shigenkai/lca/ city.yokohama.jp/me/pcpb/keikaku/jigyo_ (accessed March 2009). gaiyou/20gaiyou/. THE FIELD REFERENCE GUIDE | 211 CASE 5 Brisbane, Australia Actions on Climate Change and highlighting the need to shift to a new form in a Rapidly Growing City of water management. in a Subtropical Region In 2007, the Brisbane City Council issued Brisbane’s Plan for Action on Climate Change With 2 percent population growth in 2006–07, and Energy, which delineates the selected Brisbane, the capital of the State of Queensland, actions to be achieved in the short term (about was one of the most rapidly growing capital cit- 18 months) and the long term (more than ies in Australia (ABS 2008). The population of five years) (see Brisbane City Council 2007b). Brisbane in 2007 was approximately 1.01 million, Brisbane has three major challenges: climate making it the first local government area in Aus- change, high peak oil demand, and greenhouse tralia to exceed the milestone of 1 million people gas emissions (see Brisbane City Council 2007c). (ABS 2008). Brisbane is among the top 10 most Analyses suggest that, if Brisbane responds rapidly growing cities in the countries of the intelligently to these challenges, the city may Organisation for Economic Co-operation and generate significant economic benefits by Development and the second most rapidly grow- developing sustainable industries, while saving ing city in the western world (Brisbane City resources. Brisbane is actively introducing vari- Council 2006). Brisbane’s population is expect- ous approaches to sustainable development. ed to continue to grow over the next two decades In addition, in the city’s “Our Shared Vision: (Brisbane City Council 2006).1 Living in Brisbane 2026” policy document, au- Since 2000, Brisbane has experienced in- thorities have committed to cutting greenhouse creased electricity consumption and annual gas emissions in half, reusing all wastewater, growth in peak electricity loads (Brisbane and restoring 40 percent of the natural habitat City Council 2007a).2 Because the city has a by 2026 (Brisbane City Council 2006). subtropical climate, increased domestic air- conditioning has been a major factor prompting higher demand for electricity, along with poor The Ecological and Economic housing design, an energy-intensive economy, Benefits of the CitySmart Program and growth in population and disposable income (Brisbane City Council 2007a). The demand for To implement actions in Brisbane’s Plan for electricity is expected to rise consistently through Action on Climate Change and Energy, officials 2030. Brisbane is also experiencing a shortage have initiated the Green Heart CitySmart Pro- of potable water during a period of growth and gram (Brisbane City Council 2009a). The pro- climate change that is straining water resources gram introduces residents and businesses to | 213 I N D O N E SI A PAPUA NEW GUINEA 1000 km. PA C I F I C OCE A N Profile of Brisbane Brisbane • Capital city of the state of Queensland, Australia AUSTRALIA • Population (2007): 1.01 million Brisbane • Population increase (2006–07): 2.0 percent • The largest populated local government area in Australia Canberra • Brisbane is located on a coastal plain in southeast Queensland. The eastern suburbs line the shores of Moreton Bay, and the city’s central business AUSTRALIA Tasman district is only 27 km from the mouth of the bay. I ND I AN Sea OC EAN • Brisbane is a subtropical river city and has hot, humid summers and dry, IBRD 37447 JANUARY 2010 mild winters. Map 3.7 Location of Brisbane Source: Map Design Unit, General Services Department, World Bank. practical and affordable ways to implement ac- 4.5 tons by 2026. To encourage household par- tions indicated in the climate change action ticipation, the city offers rebates and grants sup- plan. These practical tips help residents and porting environmentally sustainable projects businesses become energy and resource effi- (box 3.3). The city recommends that homes re- cient, thus improving the environment and sav- duce their greenhouse gas emissions, particular- ing money (box 3.2). ly by installing solar hot water systems (rebates For instance, residents are offered tips on hot available) to reduce up to 3 tons of CO2, under- water use, heating and cooling, waste disposal, taking energy audits and monitoring (rebates lighting and electronic appliances, bathroom and available) to reduce up to 3 tons of CO2, and con- laundry facilities, house renovations, urban gar- necting to GreenPower (renewable energy from dening, the installation of rainwater tanks, and so government accredited sources) to save up to 9 on. Moreover, Brisbane aims to reduce the an- tons of CO2. nual carbon footprint of an average household Brisbane’s trees are vital in protecting and from 16 tons of carbon dioxide (CO2) in 2006 to improving the urban environment. Trees pro- BOX 3.2 BOX 3.3 The Measures in the CitySmart Examples of Grants and Rebates for Program in Brisbane Environmentally Sustainable Home • Shifting to energy-efficient light fittings Projects in Brisbane • Installing rainwater tanks in homes • $A 50 rebate on the installation of home energy • Using more efficient air-conditioners monitors • Continuing to recycle and preserve water • $A 400 rebate on solar hot water systems • Installing solar panels and solar hot water sys- • Rebates for installing rainwater tanks with inter- tems nal connections to toilets and cold water wash- • Signing up for green energy ing machine taps • Thinking about alternative public transportation • Funding up to $A 50,000 to local nonprofit com- solutions munity groups for the installation of devices to • Reducing vehicle emissions save energy and water • Implementing the 2 Million Trees Project Source: Brisbane City Council (2009c). Source: Brisbane City Council (2009b). Note: The information is current as of May 2009. 214 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES vide shade and transpire water to cool the air Urban Development in Brisbane and surface temperatures. In subtropical cities, it is important to identify ways to become less As in many other cities in Australia, most of Bris- dependent on air-conditioners to reduce energy bane’s citizens reside in detached homes built in use and carbon emissions. Shade allows more low-density suburbs outside the city boundaries people to enjoy outdoor activities. Trees absorb (Dingle 1999). The suburban lifestyle in Austra- greenhouse gases, including CO2, and remove lia is highly dependent on private motor vehicles pollutants from the air. In addition, trees reduce because, for the past 50 years, suburbs have been storm water runoff and evaporation, an impor- built on the assumption that most people will tant outcome in cities in which water resources not need public transportation services (New- need protection. Brisbane city officials have man 1999). The shape of Brisbane demonstrates provided 133,000 free plants to residents to this dependence. Peak oil prices have multiple maintain the city’s unique subtropical land- implications for Brisbane’s economy and society scape. Furthermore, the city is committed to and increase the need for fuel-efficient vehicles planting two million trees between 2008 and and public transportation options. For many 2012. People involved in this effort will restore years, the problem of urban sprawl has been ad- bushland on a large scale, cultivate new trees dressed for reasons other than peak oil prices. along streets, and support the greening of land- Local and regional planning has incorporated fill and infrastructure sites (Brisbane City Coun- the principles of transport-oriented develop- cil 2009d). ment, which aims to promote the development The Brisbane City Council aims to be carbon of mixed residential and employment zones to neutral in its daily operations by 2026 by adher- maximize the efficient use of land through a ing to sustainability principles in its offices and high level of access to public transportation facilities. As a result, public sector electricity (Brisbane City Council 2009f ). However, the re- use and greenhouse gas emissions have already sults are still mixed; economic structures and decreased (table 3.7). The city council also traditional housing preferences do not always actively engages residents and businesses to coincide with these planning initiatives (Bris- promote actions that reduce negative environ- bane City Council 2009b). mental impacts. Table 3.7 Greenhouse Gas Emissions and Electricity Use by the Brisbane City Council, Fiscal Years 2005–2008 INDICATOR 2005 2006 2007 2008 Net greenhouse gas emissions (tons of equivalent carbon dioxide) — 441,850 376,471 — a Direct emissions — 1 99,284 180,255 — Indirect emissions arising from the consumption of electricity, heat, and steam — 218,988 205,669 — Other indirect emissions — 30,1 48 40,864 — GreenPowerb — (6,570) (53,31 7) — Offsets — — (95,000) — Electricity use (megawatt hours) 224,603 209,357 200,7 1 9 — GreenPower purchased (percent) 6 6 25 50 Source: Brisbane City Council 2009e. Note: — = not available; FY = fiscal year. a. Direct emissions are from transport (trucks, buses, ferries); manufacturing (for example, asphalt production); and the on-site generation of energy, heat, steam, electricity, and fugitive emissions from landfill and wastewater treatment. b. GreenPower is renewable energy that comes from the sun, wind, and waste. GreenPower produces no greenhouse gas emissions; the energy must be supplied by government- accredited sources. THE FIELD REFERENCE GUIDE | 215 Urban Renewal Brisbane is a US$4 billion penalties for overuse) and subsidizing rainwa- program to revitalize specific areas of the inner ter tanks. Brisbane has also pursued integrated city (Brisbane City Council 2009g). The program water cycle management encompassing water has been implemented in several urban areas, provision, wastewater treatment, storm water including Brisbane City Center (the central busi- management, and strategic land management. ness district). It has incorporated innovative Poor land management in water catchments principles and practices, such as high-quality results in lower-quality water and higher water urban designs, modern construction, mixed land treatment costs. As a subtropical city, Brisbane use, higher-density development, diverse transit is endowed with creeks, waterways, and rich options, and enhanced accessibility. biodiversity. The city is working to restore the The Brisbane City Council is working with health of its waterways and creeks through var- the development industry to promote sustain- ious means, including removing weeds, encour- able living and working environments. The city aging communities to plant native seedlings, council has developed guidelines to help archi- and reducing illegal dumping by sponsoring tects, engineers, planners, developers, and build- community campaigns (for example, see Bris- ers incorporate principles that promote sustain- bane City Council 2007d). ability in development applications. While such principles offer broad markers for sustainable development, the guidelines explain ways to Public Transportation: apply them practically. For example, the build- Bus Rapid Transit Systems ings in Brisbane used to be designed to be open to breezes, with overhead ceiling fans, shaded Brisbane has two bus rapid transit systems: the areas, and good circulation. However, recent de- Brisbane South East Busway, which opened in signs depend on air-conditioners that are energy 2001, and the Brisbane Inner-Northern Busway, dependent. Today, Brisbane is promoting new which opened in 2004. These systems fall approaches to urban construction and spatial de- under the jurisdiction of the Queensland gov- signs that create attractive living environments ernment and Queensland Transport, which is and walkable areas in this subtropical city. committed to public transportation provision to support growth and connectivity in greater Brisbane. They are designed to provide public The Water Cycle and Water transportation services to areas that existing Catchment Management rail lines (Queensland Rail) do not cover. The Brisbane South East Busway connects Bris- Brisbane’s growing population is increasing bane’s central business district to the city’s pressure on the city’s supply of potable water. sprawling southeastern suburbs. The busways The average annual rainfall in southeast Queens- are two-lane, bidirectional roads used exclu- land is about 1,200 millimeters (compared with sively by buses and emergency vehicles. This 2,400 millimeters in Singapore). Although permits buses to bypass congestion. The system higher than in other Australian cities, Brisbane’s also provides high-quality, well-designed bus rainfall is less predictable, and careful water re- stations with good pedestrian access (Queens- source management is required. In recent years, land Transport 2008). drought has become a serious national problem. Busways reduce the growth of car traffic on States with authority in water management roadways mainly because of their greater carry- may undertake measures to conserve water, in- ing capacity. One motorway lane may accommo- cluding by applying water use restrictions (with date 2,000 passengers per hour, but one busway 216 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES lane is able to carry 15,000 passengers per hour. 2. The State of Queensland experienced a 53 percent In addition, busways significantly reduce travel increase in electricity consumption and an 8 percent annual increase in peak load growth over the time. For example, a typical route that takes 60 10 years between 1997 and 2007. minutes on a Brisbane motorway is reduced to 18 minutes by riding a bus on the South East Busway. Fewer cars and less travel time decrease References vehicular emissions, which helps mitigate cli- mate change and improve air quality. In general, ABS (Australian Bureau of Statistics). 2008. “Regional less time commuting translates into greater Population Growth, Australia, 2006–07.” Catalogue urban productivity and economic activity. The 3218.0, ABS, Canberra, March 31. bus rapid transit systems also affect land devel- Brisbane City Council. 2006. “Our Shared Vision: Living in Brisbane 2026.” Brisbane City Council, opment. Along the South East Busway, property Brisbane, Australia. http://www.brisbane.qld.gov. values within six miles of bus stations have risen au/bccwr/about_council/documents/vision2026_ as much as 20 percent; moreover, the rates of final_fulldocument.pdf. growth in property values have been two to ———. 2007a. “Brisbane Long Term Infrastructure Plan.” Brisbane City Council, Brisbane, Australia. three times higher in these areas than in areas http://www.brisbane.qld.gov.au/bccwr/plans_ farther from stations (Currie 2006). and_strategies/documents/brisbane_long_term_ infrastructure_plan.pdf. ———. 2007b. “Brisbane’s Plan for Action on Climate Change and Energy.” Brisbane City Council, Lesson Learned in the Brisbane Case Brisbane, Australia. http://www.brisbane.qld.gov. au/bccwr/environment/documents/brisbane_ Brisbane has responded to its unique local situa- climate_change_and_energy_action_plan.pdf. tion as a subtropical city under growth pres- ———. 2007c. “Climate Change and Energy Taskforce sures. Climate change has already started to Report; Final Report: A Call for Action.” Maunsell Australia Pty Ltd, Milton, Queensland, Australia, affect the city. Water is scarce, and temperatures March 12. are higher. Responding to its natural conditions, ———. 2007d. “Know Your Creek; Moggill Creek: Brisbane protects water resources, plants trees Improving Our Waterways from Backyard to Bay.” to improve its urban ecology, and promotes a Brisbane City Council Information, Brisbane City Council, Brisbane, Australia. http://www.brisbane. sustainable built environment. These actions qld.gov.au/bccwr/environment/documents/ save money for the city and its residents. Many know_your_creek_moggill_2008.pdf. developing-country cities are in tropical and hot ———. 2009a. “Green Heart CitySmart Home.” Brisbane climates and may be vulnerable to climatic City Council, Brisbane, Australia. http://www. brisbane.qld.gov.au/BCC:CITY_SMART::pc= change. Some cities may be highly dependent on PC_2796. air-conditioning, which is relatively energy con- ———. 2009b. “Message from the Lord Mayor.” Brisbane suming compared with other viable strategies. City Council, Brisbane, Australia. http://www. In this context, Brisbane’s measures and actions brisbane.qld.gov.au/BCC:CITY_SMART::pc= may provide good examples for how cities might PC_2803. ———. 2009c. “Grants and Rebates.” Brisbane City respond to such challenges, while remaining Council, Brisbane, Australia. http://www.brisbane. ecologically and economically vibrant. qld.gov.au/BCC:CITY_SMART::pc=PC_5014. ———. 2009d. “2 Million Trees Project.” Brisbane City Council, Brisbane, Australia. http://www.brisbane. Notes qld.gov.au/BCC:CITY_SMART::pc=PC_2645. ———. 2009e. “What Council Is Aiming For.” Brisbane City Council, Brisbane, Australia. http://www. 1. The State of Queensland will have to accommo- brisbane.qld.gov.au/BCC:CITY_SMART::pc= date 1 million new residents over the next two PC_5475. decades, 25 percent of whom will arrive in Brisbane. THE FIELD REFERENCE GUIDE | 217 ———. 2009f. “Urban Renewal Glossary.” Brisbane Richard Harris and Peter J. Larkheim, 189–201. City Council, Brisbane, Australia. http://www. London: Routledge. brisbane.qld.gov.au/BCC:BASE::pc=PC_1745. Newman, Peter. 1999. “Transport: Reducing Automo- ———. 2009g. “Urban Renewal Brisbane.” Brisbane City bile Dependence.” In The Earthscan Reader in Council, Brisbane, Australia. http://www.brisbane. Sustainable Cities, ed. David Satterthwaite, 173–98. qld.gov.au/BCC:BASE::pc=PC_1727. London: Earthscan Publications. Currie, Graham. 2006. “Bus Rapid Transit in Austral- Queensland Transport. 2008. “South East Busway: asia: Performance, Lessons Learned, and Futures.” Planning to Springwood; Project Guide.” Queens- Journal of Public Transportation 9 (3): 1–22. land Transport, Queensland Government, Dingle, Tony. 1999. “‘Gloria Soame’: The Spread of Brisbane, Australia. http://www.transport.qld.gov. Suburbia in Post-War Australia.” In Changing au/resources/file/eb6b7c0e3065e66/Pdf_seb_ Suburbs: Foundation, Form and Function, ed. project_guide.pdf. 218 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES CASE 6 Auckland, New Zealand Regional Collaboration, Including a Planning Framework The Auckland metropolitan area is New Zea- land’s largest and most populous urban area (figure 3.32, map 3.8). The Auckland Region is home to over 1.3 million people, about one-third of the national population. The region’s popula- tion grew by 12.4 percent between the 2001 and 2006 censuses. Auckland is characterized by ethnic diversity; 37.0 percent of the region’s res- idents were born overseas. In the region, there are four cities and three districts, each with its Figure 3.32 Auckland Harbor Viewed from the East own council; there is also one regional council. Source: Photo by Sebastian Moffatt. Currently, each council develops its own plans and strategies. This results in areas of overlap and competing priorities. Collective IBRD 37448 regional strategies for growth, the urban form, JANUARY 2010 500 km. economic development, and transportation PAC I FI C OC EAN planning have been devised. However, they do Auckland not have common goals or principles to ensure their alignment. The lifestyle typical of the Auckland Region NEW ZEALAND and the employment opportunities there con- Wellington tinue to attract new inhabitants, but drawbacks Tasman Sea have also become evident, namely, a lack of a cohesive and effective approach to ongoing transportation problems and concerns about NEW ZEALAND the pattern and nature of urban growth. The Auckland Regional Growth Forum was there- fore established in 1996 as a cooperative meet- ing place for political representatives of the Map 3.8 Location of Auckland Auckland Regional Council and the local terri- Source: Map Design Unit, General Services Department, World Bank. THE FIELD REFERENCE GUIDE | 219 torial authorities in the region. The aim of the (Sustaining The Auckland Region Together), forum is to develop and implement a strategy the approach represented an attempt to evaluate for managing the effects of growth. how forces of change (such as climate change, global resource depletion, and changing demo- Governments at every level recognize graphics) might impact Auckland and how the the need for a collaborative, local and regional councils and the central gov- regional process ernment might align their efforts and create The interconnectedness of national and local strategic directions to ensure the region’s long- Auckland issues (such as housing and education) term success (figure 3.33).1 The engines of START with growth and innovation and the major included the need to develop resilient and adap- required investments (particularly in land trans- tive systems able to respond (1) to persistent port) have created complex and difficult issues pressures over short and long time horizons among multiple authorities. Despite Auckland’s with no obvious alternative solutions and (2) to importance to the New Zealand economy and many vested interests with apparently irrecon- the areas of common interest, such as transporta- cilable demands. tion and energy provision, the national govern- ment did not initially play a close role in directing Making a START: Gathering information regional and local government planning. Concern The START working group developed a proto- emerged that, without agreement on an over- type framework with a cascading set of deliver- arching regional strategy and framework, deci- ables, including a vision, goals, initial foundation, sion making in the region could become ad hoc process principles, initial themes, and some and adversarial if each stakeholder tried to have potential responses (which included catalyst a say from a narrow perspective and without projects, long-term sustainability goals, and the viewing the region as a whole. As a result, there development of indicators to measure progress). was a clear need for coordinated strategic plan- Critical to progressive development was consid- ning across the Auckland Region to ensure that eration of the forces that would shape Auckland’s Auckland would be able to remain competitive future over the next 100 years. Also significant in today’s globalized world. The response in- to the development of the framework was the volved a process undertaken in 2001 to prepare involvement of expert groups that included a regional growth strategy that aimed to provide academics and experts from the business and a vision of what Auckland could be like in 50 community sectors, who, through facilitated years. This was backed by the adoption of a spa- tial growth plan and a legislatively binding limit on the extent of the metropolitan urban area. In parallel with the work on a regional growth strategy, a three-year Auckland Sustain- able Cities Programme was initiated in 2003. In 2006, as a result of the program, the eight local authorities (Auckland City, Auckland Region, Franklin District, Manukau City, North Shore City, Papakura District, Rodney District, and Waitakere City), at the instigation of a forum of territorial chief executives, engaged with the central government to develop a long-term sus- Figure 3.33 The START Logo in the Auckland Region tainability framework. Initially called START Source: ARC (2006). 220 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES workshops, developed theme papers on key is- sues identified in the prototype framework—the built environment, urban form and infrastruc- ture, energy, economic transformation, social development, cultural diversity and community cohesion, and environmental quality. Each group deliberated around four sustainability principles—resilience, prosperity, livability, and ecology—and considered how these might be influenced by the forces that would shape the future. In a linked, but parallel process, a working group representing all Maori tribes (New Zea- land’s indigenous people) of the Auckland Re- gion developed its own collective long-term Figure 3.34 Strategic Planning among Many Stakeholders at a Three-Day Regional Charrette, New Zealand framework, the Mana Whenua Framework. Source: ARC (2006). The working groups involved in these processes built links between the two frameworks, includ- ing a basic common structure; common analysis successful in helping local government authori- via the forces and theme papers; a Maori goal in ties engage communities in planning. The prod- the overall framework; and an indigenous con- uct is usually a tangible plan ready for immedi- cept of sustainability, which fed into the defini- ate implementation. tion of sustainability in the overall framework.2 Meanwhile, the overall framework acknowl- Stakeholder consultations and interagency edges Mana Whenua as the first peoples of the coordination region and as an intimate part of the region’s As a result of feedback and wider strategic dis- ecological and cultural fabric. cussions following the START workshop, it was In August 2006, a three-day START design decided that the framework should include the workshop enabled 120 representatives of local following: authorities and the central government, aca- • A shift from business as usual as a key com- demia, and the community and business sectors ponent of the framework to contribute expertise and perspectives to the • The addition of integrated goals, key direc- development of the draft 100-year framework. tions, leadership goals, and Maori goals The methodology drew heavily on the Vancou- • The adoption of a revised version of a region- ver CitiesPlus model, which progressed from a al vision developed by a youth contingent high-level vision to responses and indicators • The development of a draft set of indica- through an adaptive management approach to tors the development of a resilient urban planning • The development of a process and tools for framework able to address future challenges the application of the framework (CitiesPlus 2002). The workshop relied on a charrette format, a process whereby new design A governance and reporting structure was ideas emerge and evolve quickly (figure 3.34). set up whereby the project was overseen by a The process is interactive and harnesses the tal- steering committee of the council officers that ents of a range of parties to resolve planning was sponsored by the chief executives forum challenges. The charrette format is particularly responsible for final approval of the framework. THE FIELD REFERENCE GUIDE | 221 Consultation with stakeholders and the public many conversations feeding into the framework took place from February to May 2007 through and the emerging responses. The Auckland Re- 19 workshops involving around 200 partici- gional Growth Forum, for example, facilitated pants, plus written submissions from several regionwide discussions, joint political decision individuals, four organizations, and two regional making, and the establishment of a reference councils. group of council members to provide direction A revised version, the Auckland Sustainabil- and support. Similarly, local authorities and the ity Framework (ASF), was endorsed in Septem- central government formed a senior officers ber 2007 by the Auckland Regional Growth Fo- steering group and an officers working group. rum after it had been endorsed by all member Key collaborative elements were the relation- local authorities and government agencies. It ship between the central government and local also received high-level support within the cen- governments and the common governance ele- tral government. The ASF goals and visions ments, primarily because of the involvement of were consistent with central government pri- the Government Urban and Economic Devel- orities, especially in the substantive shifts that opment Office, including a joint commitment to would be required (box 3.4). In turn, the ASF the development of a shared long-term view of was expected to provide a tool to review the ef- a sustainable Auckland.2 fect of national policies on Auckland. However, The final framework that was adopted con- it was also clear that a better understanding was sists of the following (figure 3.35): needed of the methods for achieving goals and • The identification of key challenges to sus- of the proper indicators for assessing progress. tainability that the region will need to ad- The ASF is also intended to guide and align dress regional strategies (such as the Regional Growth • A 100-year vision Strategy, the Regional Land Transport Strategy, • The eight long-term goals and the Auckland Regional Economic Develop- • Eight shifts from current practice that are ment Strategy). The process of developing a required to meet the goals framework was therefore highly inclusive, with • Suggested strategic responses • A measurement framework and monitoring BOX 3.4 process • A toolkit to apply the framework to strate- Eight Goals Direct the Auckland gies, significant decisions, and plans and to Sustainability Framework integrate regional planning The ASF is built around eight interrelated long-term The framework’s role consists of the follow- goals that will enable the region to take a sustain- ing: able development approach: Goal 1 A fair and connected society • To align existing regional strategies and Goal 2 Pride in who we are projects, for example, the Regional Growth Goal 3 A unique and outstanding environment Strategy, the Regional Land Transport Strat- Goal 4 Prosperity through innovation egy, and the Auckland Regional Economic Goal 5 Te puawaitanga o te tangata (self- Development Strategy sustaining Maori communities) Goal 6 A quality, compact urban form • To align future regional strategies and proj- Goal 7 Resilient infrastructure ects Goal 8 Effective, collaborative leadership • To guide the development of a single re- Source: RGF (2007). gional plan (the One Plan; see the following section) 222 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 3.35 The Auckland Sustainability Framework Source: RGF (2007). • To provide methods to adapt business-as- national levels since the adoption of the ASF. usual scenarios, for example, the 10-year com- Many new council members have not been in- munity investment plans of a local council volved in the development of the framework, • To identify strategic responses that must be and the national government has redefined sus- undertaken to achieve sustainability goals tainability into the narrower concept of natural resource management. The ASF “will provide direction so that our lo- Nonetheless, the ASF has been used to cal authorities and central government agencies develop a collective investment plan, which is can work together with a common purpose to referred to as the One Plan, as well as a number embrace the opportunities and face the chal- of local council plans, including the Manukau lenges associated with developing a truly sus- City Council’s 2060 Strategic Framework and tainable region” (ARC 2008). the Waitakere City Council’s social strategy. Stretched thinking Keys to Success The framework and, especially, the participatory process have stretched the thinking of many par- Extended peer communities ticipants with regard to the following topics: The overall process created considerable buy-in at political and administrative levels, and the • Recognizing that the world and Auckland resulting framework is owned by all parties. are going to experience exponential change However, there has been a considerable change over the next 50 years and that they have in political representation at the local and limited time to prepare for this change THE FIELD REFERENCE GUIDE | 223 • Recognizing that many business-as-usual for planning and strategy making. Likewise, no practices will have to be altered or aban- bottom-line thresholds for public sector deci- doned sion making have appeared. Without these ele- ments, the ASF may become a useful tool for • Understanding the meaning of sustainable some parties, but may be ignored by others. The development, especially by bringing in a new national government is restructuring the Maori perspective eight local government bodies within the region • Developing the Mana Whenua Framework into a single unitary council, and it remains to be seen whether this new council will adopt the The development of a separate, but linked Maori ASF as the guiding regional framework. framework has ensured that the long-term plan- ning for Maori is being undertaken by Maori. The depth of indigenous understanding of gen- Notes erational thinking and the holistic and spiritual understanding of the relationship between the 1. The government of New Zealand is in the process environment and people are fully realized in the of restructuring the Auckland local government Mana Whenua Framework and have challenged and plans to replace the existing seven local councils and one regional council with one super and stretched the thinking on the ASF. council and 20 to 30 local community boards. 2. See Frame (2008) for a critical analysis of the regional planning process and outcome. Lessons Learned in the Auckland Case References Two groups appear to have been less well repre- sented in the process of the development of the ARC (Auckland Regional Council). 2006. “A Workshop ASF: business representatives and the develop- to Design the Auckland Region’s Future: Summary of Proceedings.” Auckland Regional Council, ers who would eventually implement the strat- Auckland, New Zealand. http://www.arc.govt. egies and activities based on the ASF. A special nz/albany/fms/main/Documents/Auckland/ process may be needed to engage these groups Sustainability/START%20workshop% because they are typically reluctant to attend 20report.pdf . open meetings and because they require a pro- ———. 2008. “Auckland Sustainability Framework.” Auckland Regional Council, Auckland, New cess that is especially efficient. Zealand. http://www.arc.govt.nz/auckland/ After the ASF was adopted, the region quickly sustainability/auckland-sustainability- focused on new priorities. As a consequence, framework.cfm. one component of the framework—winning CitiesPlus. 2002. “Canada’s 100-Year Plan for a Sustainable Region.” CitiesPlus, Vancouver, hearts and minds—did not achieve progress Canada. http://www.citiesplus.ca/index.html. (see figure 3.35). Winning hearts and minds Frame, Bob. 2008. “‘Wicked,’ ‘Messy,’ and ‘Clumsy’: acknowledged the importance of the social Long-Term Frameworks for Sustainability.” learning that council members, key staff mem- Environment and Planning C: Government and Policy 26 (6): 1113–28. bers, and stakeholders experienced through the RGF (Regional Growth Forum). 2007. “Auckland development of the ASF. Continued dialogue Sustainability Framework. An Agenda for and education on the challenges and solutions the Future.” Auckland, New Zealand. http:// involved in achieving sustainability are required www.aucklandoneplan.org.nz/auckland- among these key decision makers and the public. sustainability-framework/sustainability- concepts-and-challenges/sustainability- While the ASF has been adopted as a guiding concepts-and-challenges_home.cfm. framework, no hard targets have yet emerged 224 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Eco2 Sector Notes A Sector-by-Sector Lens on Urban Infrastructure We will now look at important urban infrastructure issues in more detail through the lens of each sec- tor. Ideally, this leads to a kaleidoscopic view of the city that recognizes the interrelationships of en- ergy, water, transportation, and solid waste. These interrelationships apply across sectors and with respect to the built form of the city. In this context, the final note in part 3, “Managing the Spatial Structure of Cities,” provides important lessons on how spatial planning and land use regulations may powerfully influence mobility and affordability. It is clear that many of the operational and jurisdictional boundaries of sectors impede innovation and creativity in the effort to achieve better outcomes. It is also clear that investments made in one sector may result in savings in another sector ( for example, investments in water efficiency usually result in large energy cost savings). Pooling scarce resources to invest in multifunctional and multi- purpose common elements may also benefit urban residents ( for instance, through single-purpose underground infrastructure corridors). What emerges from a closer analysis is an understanding of how these infrastructure systems inter- act with a city’s spatial form. Infrastructure investments trigger and enable urbanization. However, urban planning and spatial development establish the locations, concentrations, distributions, and na- ture of demand nodes for sector infrastructure systems. Urban and spatial planning also identifies the physical and economic constraints and parameters of infrastructure systems, including capacity limits, service delivery technologies, and cost recovery requirements. Good urban planning and spatial devel- opment provide proactive demand-side management and improve resource efficiency by identifying and assessing the viability of technology and infrastructure options. For instance, public transporta- tion is financially viable only at certain threshold urban densities and forms and under good coordina- tion of urban land use. In addition to illustrating the opportunities and strategies for realizing benefits within and across sectors, the following notes shed light on critical sector-specific issues that are not under the direct control of city authorities, but nonetheless influence city sustainability. These issues may need to be addressed on a sector-by-sector basis. Moreover, identifying critical pressure points beyond the direct control of city authorities is important in devising an expanded platform for collaboration. | 225 SECTOR NOTE 1 Cities and Energy Overview fossil fuels. The first oil crisis of 1973 highlighted the importance of energy efficiency, conserva- Cities and urban areas account for about two- tion, and renewable energy. However, 35 years thirds of the world’s annual energy consump- later, achieving progress in energy efficiency tion. In the coming decades, urbanization and and renewable energy remains a tough challenge income growth in developing countries are in both developed and developing countries. expected to push this urban consumption even The emergence of climate change as a global higher.1 As the main consumers of energy and as development constraint, much of it related to implementers of national and regional sustain- the energy consumption habits and infrastruc- able energy policies and programs, cities may ture in cities, also calls for fundamental changes play a crucial role in improving our energy and in how countries and cities approach urban environmental futures by making smart choices development, manage energy demand, and in urban development, energy demand manage- secure energy supplies. ment, and energy supplies. In return, cities How can cities address their multidimensional stand to become more livable, affordable, and energy challenges, which affect their success and sustainable. long-term development prospects? The evolution Traditionally, urban energy planning and of urban energy agendas—from access, security, management have aimed to improve access, reliability, and affordability to environment and security, reliability, and affordability. These public health concerns and, more recently, to efforts have focused on developing network- climate change mitigation and adaptation—has based energy systems (on which cities have challenged cities and national and regional gov- become dependent), such as electricity grids, ernments to break away from supply-centric district heating networks, and natural gas pipe- practices and strengthen environmental rules in lines. These efforts remain essential because planning and management. The largely success- modern cities simply cannot function without ful control of local and regional air pollution in such networks. However, the potential for dire cities in developed countries is encouraging and environmental impacts of traditional urban suggests possibilities for the expansion of ef- energy use persists, as exemplified in the London forts in developing countries. This success re- smog disaster of 1952 that killed 12,000 people. lied mainly on relocating factories, switching to Today, heavy urban air pollution in many devel- cleaner fuels, and adopting stringent national oping countries is a sober reminder that grow- and regional emissions regulations for indus- ing cities cannot always cope with the serious tries and motor vehicles. As a result, many cities health-related impacts of the consumption of have become more attractive and competitive. A FIELD REFERENCE GUIDE | 227 Controlling the carbon footprints of cities rep- measures are not high-technology applications resents the greatest current energy challenge, or expensive solutions, and the initial costs may but urban planners may tap this challenge to usually be quickly recovered. The Municipality strengthen energy security and enhance energy of Emfuleni in South Africa, for example, initi- access, affordability, and reliability. To be suc- ated an energy and water efficiency project that cessful, cities must manage energy demand by cost US$1.8 million and achieved annual savings promoting energy efficiency across sectors and of about 7 billion liters of water and 14 million the uptake of efficient and renewable energy kilowatt-hours. This equated to annual mone- supplies. It is also important, particularly in tary savings of over US$4 million; thus, the proj- developing countries, for urban planners to ect paid for itself in under six months. Because support solutions incorporating energy effi- the contract was financed and implemented by ciency and renewable energy in urban land use an energy services company, the municipality planning and land development. These efforts saved money not only from reduced water loss- require that cities be actively involved in energy es and pumping costs, but also through less planning and management and that they adopt investment up front. The energy services com- a long-term vision of urban development and pany, however, recouped its investment quickly redevelopment. by sharing part of the cost savings (USAID Visionary cities are adopting a new paradigm 2005). The Växjö Municipality in Sweden be- of integrated urban energy planning and man- gan, in 1994, to replace its streetlights with high- agement. Recent examples include PlaNYC efficiency lamps, which reduced energy use by 2030 of New York City and the Paris Climate 50 percent. After a project investment of about Protection Plan (City of New York 2007; Mairie US$3.6 million, the city saved US$0.75 million de Paris 2007). However, implementation hur- per year, which meant the project paid for itself dles remain, and the real test of turning visions in less than five years (C40 Cities 2009a). Cities into realities lies ahead. City governments are facing budget shortfalls are well advised to con- often faced with urgent tasks and competing in- sider mining current expenditures for energy terests and must prioritize actions against the savings in their facilities and operations. constraints in human and financial resources. Energy efficiency and cleaner energy in de- City administrations often lack a single depart- veloping-country cities with serious air pollu- ment with adequate authority to spearhead a tion promote productivity and reduced medical cross-cutting agenda, with the exception of the bills, which improves urban livability and com- mayor’s office, which commonly cannot sustain petitiveness. A recent joint study by the Chinese efforts because of mayoral term limits. In addi- government and the World Bank has estimated tion, urban energy planning and management that the cost of ambient air pollution in China’s are not entirely within the jurisdiction of city urban areas in terms of air pollution–related governments. In fact, prevailing urban energy premature deaths and illnesses amounted to infrastructures, with the exception of district US$63 billion in 2003, equivalent to 3.8 percent heating systems, are usually not under the direct of China’s GDP (World Bank 2007). In fact, purview of local governments.2 If cities are to China’s efforts in the past two decades to mod- succeed, they need strong support from their ernize energy infrastructure and improve energy national and regional governments. efficiency have aimed to reduce the health Why should a city government care about being impacts of air pollution. This is evident in the assertive and making and implementing sustain- rapid penetration of gaseous cooking fuels and able energy decisions? The short answer is that it the rapid expansion of district heating systems pays. Most energy efficiency and conservation in northern Chinese cities, which are also 228 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES implementing national energy efficiency stan- the cogeneration of heat and power using dards for buildings. natural gas. Local governments might also Among rapidly growing cities in developing expand renewable energy supplies by pur- countries, shifting to a new paradigm of urban chasing green electricity and accommodat- energy planning and management is as much ing renewable energy technologies, such as about contributing to global welfare as enhanc- photovoltaic systems and solar water heat- ing capacity to serve growing energy needs at ing, in their own buildings and facilities. lower costs and with greater security. Good envi- 2. Promoting energy efficiency and the applica- ronmental stewardship in energy planning and tion of renewable energy technologies in the management is essential to mitigate regional urban built environment. City governments and global environmental impacts that affect may promote energy efficiency and renew- the long-term well-being of cities (for example, able energy options in nonmunicipally acid rain, climate change–induced storms, and owned or operated sectors by harnessing rising sea levels). Making cities more energy their dominant role in shaping the urban efficient and more accessible to renewable built environment. One of the most critical energy supplies also helps hedge the risks of and effective interventions involves enforcing higher energy costs if a global agreement is national or regional energy efficiency stan- reached to reduce anthropogenic greenhouse dards in new building construction and build- gas emissions drastically. This does not mean ing renovations.3 A more ambitious green that developing cities should necessarily address building agenda may also include additional all sustainable energy options at the same time. requirements for water efficiency and con- Pursuing actions on sustainable energy, how- servation, the adoption of renewable energy ever cost-effective they may be, requires public technologies, incentive programs for indus- and private investment, efforts from city gov- try and residential users, and other measures ernments and citizens, and the strong support to reduce the environmental impact of build- of regional and national governments. Cities ings (see CBSC 2009). should, moreover, tailor their efforts to the avail- able resources and pursue initial steps toward 3. Promoting energy efficiency and renewable sustainable energy that generate significant and energy through land use planning and land immediate local benefits. development policies. Within their jurisdic- Where should a city start? In general, there tions, city governments may shape or reshape are three areas where actions and interventions land use and development patterns in ways at the city level are critical and where city gov- that minimize carbon footprints, while ernments are in the driver’s seat: ensuring lower overall operating costs. In this area, energy planning encounters and 1. Investing in sustainable energy supply and integrates with transportation planning and retrofits in city government facilities and other urban infrastructure planning to serve operations. Cities might start by adopting a a city’s growth ambitions and environmental range of energy efficiency and conservation aspirations effectively. measures in government-owned buildings and municipal services, such as water sup- Cities in developing countries face much tougher ply and wastewater treatment facilities, challenges than do their counterparts in devel- public lighting, transportation, and solid oped countries. Technical capacity is often waste management. Large government lacking. Competition for resources is fierce. complexes are often good candidates for Because of growth pressures and capital con- distributed energy supply options such as straints, compromises are often reached to A FIELD REFERENCE GUIDE | 229 Main drivers and constraints: • Demographic and economic conditions • Municipal operating costs and energy bills • Urban form and built environment • Climatic conditions • Access to regional, national, and international energy markets Key dimensions of urban energy City and local government Desirable outcomes: planning and management: sustainable energy actions: • Access to all • Demand characteristics • Investing in sustainable • Secured supply • Supply options and technologies energy retrofits and supplies • Reliable services and spatial and temporal in the public sector • Affordable costs considerations • Promoting energy • Air-quality compliance • Institutional and regulatory efficiency and renewable • Regional and global responsibilities energy technologies environmental • Stakeholder dynamics in urban built environment stewardship • Economic, financial, social, and • Promoting energy environmental aspects efficiency and renewable energy in land use planning and development Desirable impacts: • Reduced life-cycle cost of energy services • Strengthened city finances • Improved social equity • Reduced local pollution and greenhouse gas emissions • Improved city competitiveness and local job creation Figure 3.36 A Stylized Framework for Urban Energy Planning and Management Source: Author compilation (Feng Liu). serve more interests rather than to serve more energy planning and practice that the chapter people more effectively.4 While cities must examines. actively engage in the promotion of sustainable energy solutions, urban leaders need the sup- port and cooperation of regional and national Energy Use in Cities governments to be successful. Substantial donor support, knowledge, and finance are also A city’s energy profile—the level of use, mix of required to encourage cities to enact sustain- energy types, and patterns of use by sector or able energy actions in these three areas. end use activity—is determined by many factors, This chapter reviews the general urban including population, income, economic struc- energy landscape, particularly in cities in devel- ture, energy prices, end use efficiencies, climate oping countries. It reviews activities linked to conditions, urban forms, built environments, basic energy consumption; the options in ener- and access to regional and national energy mar- gy services and supplies; factors affecting urban kets. Understanding the dynamics or constraints energy planning and management; and good imposed by these factors is the starting point of practices, lessons, and challenges in urban sustainable urban energy planning. The amount energy planning and management. Figure 3.36 of energy used is not a good indicator of the level illustrates the aspects of sustainable urban of energy service supply or demand (for example, 230 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES in lighting, cooling, heating, or refrigeration). ings. Residential buildings, which account for The critical factor is energy efficiency, which re- most of the urban building stock, are well fers to the adoption of improved technologies defined as owner- or renter-occupied houses or and practices to reduce the energy required to apartments. Commercial buildings are diverse provide a similar level of energy output or ser- and usually include office buildings, shopping vice provision. In the urban context, it is impor- malls, supermarkets, hotels, and other buildings tant to assess the amount of useful energy that that host commercial or public entities. Gov- may be extracted from the primary source, ernment buildings are separately identified delivered to end users, and turned into energy in table 3.8 because they represent special op- services.5 In buildings, energy efficiency also portunities for sustainable energy interventions implies reducing energy needs by improving the by city governments. structural design and use of materials.6 Typically, urban energy use in service- A recent accounting of urban energy use con- oriented cities in developed countries is domi- ducted by the International Energy Agency nated by buildings and transportation, which delineated all energy-consuming activities account for two-thirds or more of energy con- within a city (IEA 2008). Based on this account- sumption. In rapidly industrializing developing ing, urban energy applications may be lumped countries, such as China, industrial energy use into four broad categories: industry, transpor- is often predominant in large cities. Even in tation, municipal services, and buildings. A Beijing, one of the most modern, high-income breakdown of these categories is presented in cities in China, manufacturing still accounted table 3.8. for about half of all energy consumption in 2006 Buildings that do not fit in the first three cat- (IEA 2008). In general, buildings and transpor- egories include a broad spectrum of structures tation are the most rapidly growing energy ranging from single-family houses and apart- sectors in cities in developing countries. They ment buildings to schools, hospitals, offices, and are also the sectors in which sustainable energy shopping malls. Factory buildings are excluded. measures may have the greatest impact. Coun- For statistical purposes, buildings are usually tries with a growing middle class typically show divided into residential and commercial build- explosive growth in the use of electricity for Table 3.8 Energy Consumption in Cities: Main Sectors and Clusters CITY GOVERNMENT SUSTAINABLE ENERGY SECTOR/CLUSTER CATEGORY SUBCATEGORY INTERVENTION, POTENTIAL LEVERAGE Industry Manufacturing Indirect, relatively weak Construction Indirect, relatively week Transport Private motor vehicles Indirect, relatively weak Commercial motor vehicles Indirect, relatively weak Public transit systems Direct, strong Government motor vehicles Direct, strong Municipal services Water supply and wastewater treatment Direct, strong Solid waste management Direct, strong Public lighting and traffic lights Direct, strong Buildings Government buildings Direct, strong Commercial buildings (nongovernment) Indirect, strong in new construction Residential buildings Indirect, strong in new construction Source: Author compilation (Feng Liu). A FIELD REFERENCE GUIDE | 231 residential air-conditioning and larger appli- states, are skewed toward the most basic energy ances. Although cities generally do not control services, such as lighting and cooking (and appliance efficiency, and equipment standards space heating in cold climates). The direct use are usually under the purview of national of solid fuels, such as coal and firewood, is com- governments, cities may adopt incentive pro- mon in developing-country cities and is often grams to encourage the use of more efficient the main cause of indoor and ambient air pollu- appliances. tion. This is particularly true in low-income Though industries form part of the urban urban areas and slums in which access to clean- landscape, including industries in urban energy er cooking fuels is limited. accounting may skew the understanding of city Electricity is the form of energy used most energy consumption and performance because extensively in cities. The share of electricity in the type and significance of industries vary total energy use and the amount of electricity per across cities. For consistency in cross-city energy capita often indicate the modernity and wealth comparisons, it may be necessary to exclude (or of a city. Satisfying rapidly growing electricity separate) industrial energy consumption from needs often dominates the energy agenda of the typical urban energy-consumption sectors developing-country cities. (At the other extreme, indicated in table 3.9. gasoline is exclusively used for transport.) For urban energy planners, it is also neces- Energy costs are critical to understanding sary to separate urban energy demand and con- energy use in cities and are often a primary sumption into key end use activities, often energy-related concern of city officials. Deci- within the four main sector categories outlined sions on sustainable energy must be economic earlier. End use activities are more or less simi- and financial. However, the data on the costs lar across cities, although the energy type according to energy type and on aggregate supporting specific end uses may vary even energy costs in urban sectors are often inade- within a city (see table 3.9). quate. Adequate cost information on individual Excluding industrial consumption, end use end use activities and even simple data on com- energy patterns in developing-country cities, mon energy indicators are also rare (for exam- especially cities in low-income provinces or ple, kilowatt-hours per cubic meter of water Table 3.9 Energy Consumption in Cities: Key End Use Activities and Energy Types COMMON ENERGY TYPES USED NATURAL GASOLINE, FIREWOOD, MAIN ENERGY END-USE ACTIVITIES ELECTRICITY GASa LPGb KEROSENE DIESEL COAL CHARCOAL Lighting Cooking Water heating (domestic hot water) Appliances (refrigerators and so on) Home and office electronics Air conditioning Space heating (cold climate) Motorized transportation Motive power (stationary) Processing heat or steam Source: Author compilation (Feng Liu). a. In some cities, gas supplies are still provided by coal-gasification or coking facilities, but in general, town gas is no longer an attractive energy supply option in cities. b. LPG = liquefied petroleum gas. 232 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES delivered, tons of oil equivalent per person per are frequently owned or operated by regional or mode of transport, or watts per square meter of national electricity utilities or independent building lighting). power producers.7 Developing-country cities Few cities in developing countries systemati- generally aim to ensure secure and reliable cally track energy consumption patterns and access to energy supplies based on regionally costs. Without adequate energy consumption integrated networks. District heating systems and cost information, cities will not be able to represent another network-based energy ser- plan and implement sustainable energy mea- vice common in cold climate cities, especially in sures effectively. Recent efforts to establish an China and Europe. However, they are limited to international protocol and tools to inventory areas of a city with sufficient building density. urban greenhouse gas emissions are helping Supplies of solid and liquid fuels, such as coal build a platform to facilitate improved urban and petroleum products, are usually decentral- decision making on sustainable energy approach- ized; thus, users may buy fuels from different es (ICLEI 2008). Besides basic accounting, a producers or local distributors. The supply of critical element of urban energy planning is the transport fuels is usually vertically controlled provision of information to stakeholders about by oil companies. In low-income countries, cit- the opportunities for demand management ies with significant periurban and slum popula- through investments in energy efficiency, con- tions often rely heavily on firewood and char- servation programs, and alternative supplies. coal as cooking fuels and, in cold climates, also Simple benchmark data, such as quantifiable as heating fuels. The firewood is typically sup- measures of energy use in lighting and heating, plied locally and is often collected by individual may help city managers to identify sectors that households; charcoal is usually supplied by exceed norms and to plan remedial interventions. informal service providers. As a city grows in Additional supply options such as cogeneration wealth, there is a progression among house- in wastewater treatment plants or methane holds and other dispersed service points toward capture in landfills may also be assessed. The greater dependence on network-based energy evaluation of such options requires tools to help supplies and away from the use of solid fuels cities compare their energy performance with (coal and firewood). In general, cities and urban good or best practice and understand the cost areas are almost entirely dependent on external and benefit implications. Practical decision energy supplies; even the power plants located support tools and methods for sustainable in cities need to import fuel. urban energy planning and management help It is possible to conceive of a city’s energy cities quickly identify and prioritize sustainable supply options and technologies along the three energy actions grounded on local capacities and main energy delivery channels depicted in conditions. figure 3.37. In mildly cold and mildly warm climates, centralized heat supply is generally not an economically viable option and is not Energy Supply Options and Spatial considered. In cold climates, electricity and and Temporal Considerations centralized heat are often the focus of urban energy optimization because they may be pro- Modern cities are highly dependent on net- duced together in combined heat and power work-based electricity and, to a lesser extent, plants. Cooling may be provided by using heat natural gas supplies that are connected to re- energy to drive a cooling system based on gional or national networks. Power plants are absorption chiller technology. Thus, district often located within city boundaries, but these heating systems may provide cooling services in A FIELD REFERENCE GUIDE | 233 reliance on purchased energy. Considering the energy saved from efficiency and conservation measures as a valid source of energy supply has become a compelling concept in demand-side management and energy supply planning. The consumption of solid fuels by house- holds and other dispersed end use points, such as restaurants, tends to decline as gaseous fuels— liquefied petroleum gas or natural gas—become available or electricity becomes more abundant. Such a transition may take decades and often requires the construction of regional and nation- al energy infrastructure. In China, the dispersed use of solid fuels in urban areas has decreased dramatically over the last 20 years. Solid fuels have been largely eliminated from cooking and are now mainly used in a falling number of cold climate urban households that have no access to centralized heating or natural gas. This trend has been generated because of the strong sup- Figure 3.37 Urban Energy Supply Sources and Systems: A Stylized Sketch port of the national government for boosting the Source: Author compilation (Feng Liu). Note: Many gas-fired microgeneration facilities produce electricity and provide heating and cooling supply of liquefied petroleum gas and expand- (using absorption chillers). ing natural gas transmission networks. Spatial and temporal concerns are important the summer if it is economically justified. in developing network-based urban energy in- Distributed energy resources often produce frastructure. Spatial planning entails the layout electricity, while offering heating and cooling of networks within existing and planned built- services. Natural gas not only represents a up areas to achieve the most efficient routing cleaner alternative to oil and coal, but also adds and siting of generation and distribution facili- more flexibility to urban energy services ties based on demand and load distribution. through distributed generation facilities. For a Temporal planning addresses system size based large city, fitting all the pieces together to opti- on current and anticipated demand and load mize sustainable energy outcomes is not an easy and, most critically, the size of mains and trunk undertaking. This is especially challenging in lines that are difficult to rehabilitate once built. developing-country cities in which energy This is especially important in rapidly growing supplies are less well organized or streamlined cities and has significant financial implications. relative to developed-country cities in which Owing to uncertainty in predicting demand, us- energy supplies are primarily network based. ing the proper size in infrastructure is part sci- Advances in centralized and distributed re- ence and part luck. However, decisions on size newable energy supply technologies, such as become more reliable if planners understand wind towers, solar water heaters, biomass, and urban energy demand patterns and trends and photovoltaic systems, enable cities to source a have access to knowledge developed in other small, but increasing amount of renewable ener- cities confronting similar situations. gy. Heat pumps and shallow geothermal energy Urban planners should also consider the con- sources also provide additional ways to reduce straints of overlapping energy supply networks 234 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES (for example, covering the same urban area with developing modern power grids and natural gas both natural gas and district heating networks, networks. In densely populated cold climate which has occurred in China and some Eastern cities in which natural gas is scarce or unavail- European cities). In China, the scarcity of natu- able, the development of district heating sys- ral gas, which is piped into households for cook- tems is the key to reducing air pollution and ing and water heating, means that natural gas improving space heating services. The planning distribution represents a relatively expensive in- and engineering of specific network-based sys- vestment for gas companies. Space heating is tems (that is, electric, gas, or heat) have become therefore normally provided by separate district sophisticated, and technologies are still advanc- heating systems. In Eastern European cities, ing. For urban planners, the real challenge and natural gas has been introduced more recently the essential task involve fostering the integra- and is competing with established district heat- tion and adaptation of network-based energy ing systems. While competition is normally good infrastructure to enhance the efficiency of en- in markets, it is not necessarily beneficial in this ergy supply and facilitate the uptake of distrib- case because it is undermining the capital in- uted energy resources and other local low- vestment in district heating systems. In Germa- carbon energy sources (for example, methane ny, many cities do not allow utilities to provide from landfills and wastewater treatment plants). district heating and natural gas services in the same area because, to a large extent, both energy carriers provide the same service—space heat- Policies, Legislation, and Regulations ing (box 3.5). The future of urban energy supply will still In general, national and regional legislators and lie in network-based systems that facilitate the governments are responsible for energy sector adoption of distributed energy generation and policies and regulations. Cities have limited decentralized renewable power systems. Thus, influence on policy and legislative processes if long-term gas supplies are secure, urban energy except as regards locally based energy services infrastructure investments should focus on that require government interventions, such as BOX 3.5 Energy Planning in the City of Mannheim By avoiding parallel gas and district heating networks, least cost energy provision is achieved. In zones served by To strengthen energy planning, Mannheim, Germany district heating, gas is no longer offered. Electricity and dis- has been divided into zones based on the type of en- trict heat are produced by a combined heat and power ergy network. A utility owned by the municipality sup- plant in the city. The same utility operates public transpor- plies natural gas, electricity, and district heating. Elec- tation and supplies water. In this way, energy demand and tricity is universally supplied. Space heating is supplied production may be optimized to meet the most impor- using natural gas, district heating, or electricity. In areas tant needs of the city. with greater heat loads, district heating is provided and An important result of Mannheim’s plan has been is the least costly option. In areas with medium -size the conversion to cleaner energies. In 1983, 37 percent heat loads, natural gas provides decentralized heating. of all residential buildings were heated by coal or oil- Areas with low heat demand are supplied using off- fired heating units. In 1995, this share had dropped to peak electrical heat storage devices. Large customers less than 10 percent. In addition, sulfur dioxide emis- such as department stores, hotels, and office buildings sions have been reduced by about 85 percent, mono- are cooled using absorption chillers linked to the dis- nitrogen oxides by 40 percent, and carbon dioxide by trict heating system. about 30 percent. Source: Bernd Kalkum. A FIELD REFERENCE GUIDE | 235 district heating systems. The degree of regula- ment, appliances, and building components. The tion and government oversight in the energy standards are commonly called minimum ener- sector varies by country. In many large econo- gy performance standards. Governments may mies, the energy sector is governed by numerous also initiate special policies and programs to policies and regulations and is influenced by a create incentives for the adoption of renewable mix of government institutions because of con- energy and energy-efficient equipment. Table cerns about energy security, market competi- 3.10 summarizes the general elements of energy tion, social and environmental issues, and other policies and regulations and the ways in which considerations. The fees and charges for net- cities are affected or involved. work-based energy services are usually regulat- ed so that they respond to social concerns—for example, unduly high energy costs for the poor— Institutions and protect against monopolistic price gouging. The pricing of solid and liquid fuels is also often The multitiered and multifaceted nature of en- subject to government intervention through ergy sector management and regulation favors taxes and subsidies. Energy sector policies and complicated institutional interactions. Box 3.6 regulations used to be supply-centric, but this provides an example of one of the more elabo- has changed substantially since the first oil crisis rate institutional and regulatory settings for in 1973. Many countries now implement regula- urban energy planning and management. tions and standards requiring minimum energy The role of national and regional govern- efficiency levels in energy-consuming equip- ments is critical. National and regional energy Table 3.10 Energy Policies and Regulations and Links to Cities POLICIES AND REGULATIONS EXAMPLES CITY GOVERNMENT ROLE General legislation The Energy Policy Act (United States) Local enforcement Energy Conservation Law (China) Supply-side measures Sector-specific measures Power sector regulations Interactions only in local distribution or retail Oil and gas sector regulations Coal sector regulations District heating Pricing and billing regulation Strong involvement or autonomy Renewable energy Renewable Energy Law (China) Local implementation Mandatory market share policies Beneficiary Feed-in tariffs Demand-side measures Minimum energy performance standards Appliance energy efficiency standards Local programs to replace existing and inefficient Industrial motor energy efficiency standards equipment Automobile fuel economy standards Corporate Average Fuel Economy (United States) Beneficiary Building construction and renovation Building energy efficiency standards Local enforcement Utility demand-side management Electricity rate decoupling Beneficiary National and regional financial and Subsidies for hybrid cars Beneficiary fiscal incentives Tax credit for photovoltaic systems Environmental protection Air pollutant emissions standards Local enforcement Beneficiary Source: Author compilation (Feng Liu). 236 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES policies, legislation, and regulations influence of distributed generation facilities, including the transparency, consistency, and predictabil- renewable technologies. ity of modern energy supply systems in indi- The role of city government in setting broad vidual cities and address common social and energy sector policies and regulations is limited environmental issues. National and regional and is likely to remain so because of the nature governments also establish general provisions of modern energy systems. However, this does that incentivize cities to adopt sustainable not prevent cities from planning and deciding energy practices. These provisions include, for what, where, and how urban energy infrastruc- example, renewable energy feed-in tariffs that ture should be built. Cities may take steps to mandate electricity utilities to purchase wind- influence national policies, while seeking to or solar-generated electricity at set prices and influence local behavior through voluntary pro- energy performance standards that set mini- grams and initiatives. Because city governments mum energy efficiency levels for new appli- are intimately involved with every aspect of ances and new buildings. In contrast, national urban development and management and wield and regional regulations may also hinder the power and influence over urban energy sustainable energy measures of cities. For ex- demand, they are uniquely able to tie urban ample, in most countries, the prevailing regu- energy supply and demand together. This means lations on electricity utilities discourage utility that cities are one of the most effective actors in demand-side management and the installation pursuing sustainable energy. Nonetheless, most BOX 3.6 Public Agencies with Significant Influence on Electricity Production, Distribution, and Use, California Federal • Federal Energy Regulatory Commission: wholesale rates, inter- • California Independent System Operator: monitoring and plan- state and international transmissions, and hydropower licensing ning for system reliability; systems analysis, planning, and fore- • U.S. Environmental Protection Agency: compliance with the casting; planning of electricity transmission infrastructure Clean Air Act and the Clean Water Act, overseeing enforcement • California Air Resources Board: emission standards for distrib- and regulatory actions delegated to the states uted generation resources and diesel backup generators • U.S. Department of Energy: technology research, development, Regional and promotion; energy efficiency programs; national standards • Regional water quality control boards: issuance and enforcement for appliances and end use of permits under the Clean Water Act and California regulations for State power generator discharges into and use of regulated bodies of • California Energy Commission: licensing for thermal generators water of 50 megawatts or greater; end use efficiency standards; sys- • Regional air quality management districts: issuance and en- tems analysis, planning, and forecasting; planning of intrastate forcement of permits under the Clean Water Act and California electricity transmission infrastructure; energy research, develop- regulations for air emissions from power generators ment, and demonstration in the public interest Local • California Public Utilities Commission: rates on investor-owned • Cities and counties: long-term land use planning, enforcement utility services for retail customers; systems analysis, planning, of energy efficiency standards for buildings, approval of site and forecasting; monitoring of electricity market; public and pri- plans and urban designs in private development, permits and site vate sector efficiency and education programs; representation authorizations for all power plants under 50 megawatts of the state before the Federal Energy Regulatory Commission; transmission delivery infrastructure Source: Lantsberg (2005). A FIELD REFERENCE GUIDE | 237 cities have not yet become effectively organized holders are relatively straightforward. Govern- to pursue sustainable energy planning and man- ments regulate urban energy services to ensure agement. In the traditional supply-driven and quality, safety, environmental controls, and fair- network-oriented urban energy landscape, the ness to customers and investors; energy provid- role of cities is limited. Even in a sophisticated ers produce, transmit, transport, distribute, and city such as New York, officials realized that the retail energy to customers; and customers pay New York City Energy Planning Board was for energy to sustain services and reward inves- needed to link supply and tors. The public interest entities or organiza- demand effectively as part of PlaNYC 2030, the tions advocate on behalf of disadvantaged social city’s integrated energy strategy (City of New groups, such as low-income households, to York 2007). improve access and affordability. These entities and groups also inform and educate other stake- holders about sustainable energy solutions and Stakeholder Dynamics press for relevant action. In particular, climate change has mobilized many international and Urban energy planning and management are domestic public interest entities. shaped by several principal stakeholders: local, Traditionally, city governments are most regional, and national governments and their concerned about the needs and interests of relevant agencies or authorities; public and pri- consumers in their jurisdictions and strive to vate energy utilities, companies, vendors, and safeguard reliable and affordable energy services, investors; customers; and public interest enti- especially in electricity (and heating service in ties. Other stakeholders include financiers, cold climate cities). But the means of interven- equipment and service providers (for example, tion are limited, as illustrated by the example of energy service companies), and city service New York City (figure 3.38). In this case, the city users. The relationships among these stake- government has been only marginally involved Figure 3.38 New York City: Key Stakeholders in Electricity Supply and Consumption Source: City of New York (2007). 238 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES in planning and managing electricity supply than the business-as-usual alternatives. For ex- and demand, which officials are seeking to im- ample, Council House 2, a visionary building prove through PlaNYC 2030. developed by the City of Melbourne, Australia, City governments are uniquely positioned to involved features reducing electricity use by influence the stakeholder dynamics in favor of 82 percent, gas by 87 percent, water by 72 per- sustainable energy because they are significant cent, and corresponding carbon dioxide emis- energy consumers themselves and are able to sions by 87 percent. While the initial costs were affect the behavior of energy consumers in the high, it was possible for the city to envision a city. Cities also determine how urban areas are financial payback period of only about 10 years built, including energy supply infrastructure. because of the energy savings (C40 Cities However, intracity consultations are often chal- 2009b). Though the commercial sector normally lenging. Energy use cuts across many agencies, considers projects viable if payback periods are but stimulating interagency collaboration is a less than five years, city governments tend to big challenge, particularly if energy costs and have longer investment horizons because their benefits are being borne unevenly. The func- built environments last for decades. Other sus- tional areas within agencies—represented by tainable energy options may have longer payback technical staff members, environmental officers, periods, but may yield benefits that are more budget teams, procurement personnel, and so difficult to quantify, such as local investment, forth—also bring unique biases, expertise, incen- job creation, improved competitiveness, and en- tives, and constraints to efforts to improve hanced quality of life (for example, reduced com- energy efficiency. Some of these issues may be muting times, improved air quality and health, addressed through policies and programs, but more green space, and more community space). the strong leadership of mayoral offices is often Financial viability requires city actors to ob- needed to push the parties to work together. tain sufficient funds to implement sustainable energy solutions, sustain outcomes, and main- tain a positive return on investment within Economic, Financial, Social, and prevailing and projected financial cash flows. Environmental Aspects For a city to acquire and sustain modern ener- gy services (for example, electricity, natural Sustainable urban energy planning and practice gas, or district heating), prices need to ensure should be economically justifiable, financially cost recovery. For energy efficiency measures viable, socially equitable, and environmentally to be viable, the saved energy has to be as reli- sensible. These considerations form the basis able as and cheaper than conventional supply for the proper selection and design of sustain- options. In other words, a viable sustainable able energy actions by cities. energy solution must be a viable business Economic justification requires cities clearly proposition. Because market valuations often and consistently to account for and evaluate the fail to account for environmental externalities, costs and benefits of alternative urban energy some renewable energy solutions, such as solutions so as to facilitate robust comparisons. wind electricity and solar photovoltaic sys- This is often challenging because evaluating en- tems, may still require government subsidies vironmental externalities, such as health bene- or regulations (feed-in tariffs) to be viable. The fits or hazards, is difficult. A critical aspect of recent expansion of carbon financing markets economic analysis is the calculation of the life- should improve the financial attractiveness of cycle cost of alternative energy solutions. Many sustainable energy investments by providing a sustainable energy actions, especially energy ef- new and sometimes more secure revenue ficiency measures, have life-cycle costs lower stream for such projects. But many financially A FIELD REFERENCE GUIDE | 239 viable opportunities for greater energy effi- old. Access to special funding, such as conces- ciency remain unimplemented because of var- sional donor funds or carbon finance revenues, ious market barriers.8 may increase overall returns, while maximizing The investments most likely to be undertaken the effect of the measures in the investment will be partly driven by economic considerations package. (table 3.11). In this context, serious analysis may Social equity requires cities to address issues be able to identify short- and medium-term pay- of access and affordability among the poor. Arti- back measures that a city may wish to pursue. ficially suppressing energy prices or providing The key challenge is the development of the best universal subsidies is not an effective way to overall package of investments that is below an approach these challenges. City governments acceptable payback or other investment thresh- should target subsidies only on people who can- Table 3.11 Indicative Economics of Sustainable Energy Options SHORT-TERM PAYBACK, MEDIUM-TERM PAYBACK, LONG-TERM PAYBACK, SECTOR UNDER 5 YEARS 5–10 YEARS 10+ YEARS Public buildings Equipment retrofits Building envelope measures Building codes Labeling building performance Green roofs Certification of building materials Energy service company contracting Training in good practices in Building integrated photovoltaics Solar water heating building operations and Equipment standards maintenance Public lighting Lighting retrofits using high- Retrofits using light-emitting Street and traffic lighting pressure sodium vapor or diodes standards metal halide Redesign of lighting systems Control systems and sensors Transport Optimization of traffic signals Alternative fuels for public Modal shifts Fuel efficiency vehicle standards buses, taxis Vehicle inspection and Congestion taxes, tolls Bus rapid transit systems maintenance programs Changes in land use patterns to promote densification Water, wastewater Pumping retrofits System redesign and n.a. Correct sizing of pumps optimization Leak reduction Methane recovery for power Load management generation from wastewater Energy service company contracting Water demand-side management (low-flow outlets, drip irrigation) Solid waste n.a. Methane recovery for power n.a. generation from landfills Recycling programs Electricity, heating Supply-side loss reduction Combined heat and power n.a. Power factor correction measures provision Improved metering and pricing Load management Renewable energy portfolio Energy storage systems standards Promotion of distributed Retrofits of boiler and piping generation with feed-in systems tariffs Cross-cutting Bulk purchase of efficient products Procurement standards for Improved city design and Awareness raising on energy issues product procurement planning systems to public sector staff Agency awards and contests for energy efficiency Source: Author compilation (Jas Singh). Note: n.a. = not available. 240 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES not afford to pay full cost recovery prices for progress (using benchmarks). For cities in de- energy services. Social equity also means that veloping countries, indicators and benchmarks cities should link sustainable energy actions do not merely reveal gaps; they also inspire ac- with energy equity objectives. A good example tions to achieve better energy services without is promotion of the use of compact fluorescent reducing affordability or compromising the lamps in low-income or slum areas. environment, as exemplified in the case of the Environmental sensibility requires that cities City of Rizhao. Developing metrics is a worthy, be mindful of the local, regional, and global en- but difficult task because every city is unique in vironmental impacts of energy practices and its energy uses and levels of energy service. We adjust energy plans to mitigate impacts. For ex- should therefore focus on a small set of key ample, in the City of Rizhao in Shandong Prov- indicators that allow meaningful cross-city ince, China, the adoption of sustainable urban comparisons. Industrial energy consumption energy solutions, while addressing social equity and related indicators should not be included issues, has made good business and environ- and need to be addressed separately. One must mental sense (box 3.7). also bear in mind that many developing-country cities are underserved in energy (lack of access or lack of affordability) compared with their Indicators and Benchmarks developed-country counterparts. Thus, the indi- cators that are sensitive to distortion (for exam- Sustainable urban energy planning and practice ple, per capita–denominated indicators) should are elusive without realistic metrics to quantify be carefully considered. In general, cities should performance (using indicators) and measure have two sets of metrics on sustainable energy: BOX 3.7 An Extensive Solar Water Heating Program in Rizhao, China Rizhao, a city in northern China with a population of 350,000, is using and the leadership to implement changes in the attitudes of other solar energy for water heating and lighting. In the early 1990s, a mu- stakeholders. nicipal government retrofit program mandated that all buildings install How does it work? The municipal government, the community, solar water heaters. After 15 years, 99 percent of the households in and local solar panel producers have had sufficient political will to the central district had obtained solar water heaters. Solar water heat- adopt and apply the technology. ing is now ubiquitous. The city uses more than 500,000 square meters The provincial government of Shandong provided subsidies and of solar panels to heat water. This is equivalent to the number of funded the research and development of the solar water heater in- electric water heaters necessary to produce about 0.5 megawatts of dustry. power. Most traffic signals and street and park lights are powered by The cost of a solar water heater was reduced to the cost of an solar cells, reducing the city’s carbon emissions and local pollution. electric water heater, about US$190. This represented about 4 or 5 Using a solar water heater for 15 years costs about US$1,934 (Y 15,000), percent of the annual income of an average household in Rizhao and which is less than the cost of a conventional electric heater. This shift about 8 to 10 percent of an average rural household income. has generated annual household savings of US$120 in a part of China Panels are simply attached to the exteriors of buildings. The city where per capita incomes are lower than the national average. helps install the panels. This achievement is the result of a convergence of three factors: The city raised awareness through community campaigns and a regional government policy that promotes the solution and pro- education. Rizhao held public seminars and supported advertising vides financial support for the research, development, and deploy- on television. ment of solar water heating technologies; a new industry that capi- The city mandated that all new buildings incorporate solar panels talizes on fresh opportunities; and city officials who have the vision and oversaw the construction process to ensure proper installation. Source: Bai (2006). A FIELD REFERENCE GUIDE | 241 Table 3.12 Sustainable Urban Energy Indicators and Benchmarks: Preliminary Proposal SECTOR INDICATORSa BENCHMARKSb Long-term and strategic goals • Share of renewable energy supply in final energy Benchmarks should draw on a group of consumption comparable cities in terms of climate conditions • Carbon content of final energy consumption and indicate the medium-level practice and best (kilogram equivalent CO2 per megajoule) practice, respectively. • Urban density indicator • Energy cost and affordability indicator Municipal services • Electric distribution losses See above. • Energy used for delivering and treating one cubic meter of water • Technical and nontechnical water losses • Public lighting energy efficiency • Methane recovery from landfills and wastewater treatment plants Buildings • Residential buildings: cooling, heating, and lighting See above. efficiency • Office buildings: cooling, heating, and lighting efficiency • Government buildings: cooling, heating, and lighting efficiency • Energy efficiency of key appliances Transport • Carbon emissions of passenger traffic (kilogram See above. equivalent CO2 per person-kilometer) Source: Author compilation (Feng Liu). Note: In the table, urban energy does not include industrial energy consumption. CO2 = carbon dioxide a. Indicators represent the current performance of a city. b. The benchmarks and indicators are the same set of metrics, but the benchmarks represent the medium-level practice and best practice, respectively, among a set of cities that are comparable in terms of climate conditions. one set reflecting the long-term strategic goals ment are generally inflexible to new approach- of sustainable urban energy planning and prac- es; and (3) constrained annual budgets restrict tice and the other highlighting the performance funding for capital upgrades, while restrictions and efficiency of energy consuming sectors in on public financing and typical one-year budget the cities. Table 3.12 represents a preliminary appropriations mean that the amortization of list of sustainable energy metrics or categories costs is difficult. A list of typical barriers catego- of metrics proposed for cities. rized by stakeholder is provided in table 3.13. Barriers to Investing in Sustainable Sustainable Energy Actions Energy in the Public Sector of City Government Many sustainable energy actions may be justi- The development of modern interconnected fied solely on the basis of cost-effectiveness. energy systems over the past century or so has However, for various reasons, many invest- gradually reduced the capacity of cities to ments are unrealized because of administrative, understand and plan for their energy needs. policy, and market barriers. Key issues include Cities have become passive participants in the the following: (1) government agencies are urban energy agenda, leaving most responsibili- typically unresponsive to price signals because ties to regional and national governments and they lack a commercial orientation; (2) public the private sector. To pursue a sustainable urban procedures for equipment and service procure- energy agenda, cities need to become more 242 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 3.13 Typical Barriers to Public Sector Sustainable Energy Investments POLICY AND PUBLIC END USERS EQUIPMENT AND SERVICE PROVIDERS FINANCIERS REGULATORY BARRIERS • Low-energy pricing or • No incentive to change or take risk • Higher transaction costs for public • High perceived public collections • No discretionary budget for sector projects credit risk • Procurement policies upgrades or special projects • Concerns over late or no payment • New technologies (lowest cost, defined • Unclear about ownership of cost • High project development costs • New contractual mechanisms project, unbundled and energy savings • Limited technical, business, and risk • Small sizes and high services) • Weak technical ability to management skills transaction costs • Annual budget cycles assess options • Low track record in the market for • High perceived risks may not allow multiyear • Behavioral biases new contractual models • Behavioral biases contracting • Ad hoc planning Source: Author compilation (Jas Singh). assertive and involved in decisions that affect waste management, public transportation, and, energy demand and supply options. City gov- in cold climates, district heating.10 ernments need to become stronger partners of Government-owned buildings and facilities: regional and national governments and to guide Buildings consume about one-third of global and mobilize private sector participation. Most energy and present significant potential for en- important, cities need to act within their own ergy savings. Government buildings, particu- authority to implement sustainable energy larly those in developing countries, tend to be solutions. older and use more inefficient equipment, un- derlining the potential for energy efficiency Energy efficiency and renewable energy gains. Measures to realize gains may focus on solutions in the public sector building envelopes (windows and insulation), Energy costs often constitute a significant por- electrical appliances (lighting, pumping, and tion of the operating budget of city govern- heating and cooling) and office equipment ments. In the State of California, for instance, (computers, copiers, and printers). Though energy is the second largest expenditure item in measures are beneficial, public facilities are of- city government operations, after employee ten subject to rigid procurement practices that salaries and benefits (Lantsberg 2005). The focus heavily on costs and lack discretionary share of public sector consumption is particu- budgets with which to make meaningful im- larly high in electricity and heating. The public provements. In addition, principal-agent rela- sector accounts for 9 percent of Brazil’s elec- tionships or split incentives complicate invest- tricity use. Public agencies account for 20 per- ments. For example, a parent budget agency cent of Eastern Europe’s electricity and heating may determine a subsidiary’s capital budget loads, and about 10 percent of the European and even specify equipment, despite the subor- Union’s electricity and heating demand arises dinate agency’s responsibility for paying month- from the public sector.9 As a first step, city gov- ly energy bills. ernments should consider initiating sustainable Energy efficiency programs often initially energy solutions within city boundaries because support relatively low-cost modulated mea- this may produce rapid benefits and may be sures, such as lighting retrofits, or the replace- implemented more easily. Common targets for ment of old equipment, such as heating, ventila- improvements include government-owned tion, and air-conditioning systems. In public buildings and facilities; water supply and waste- building complexes, such as city halls, schools, water treatment; public lighting and traffic and hospitals, a whole-building approach may lights; and municipal services such as solid be needed to achieve cost-effective control of A FIELD REFERENCE GUIDE | 243 the energy budget of a building (annual energy water are scarce resources, and cities often consumption). Moreover, buildings are complex introduce efficiency programs to save energy energy systems, and trade-offs are often made and water simultaneously in light of links be- to optimize energy efficiency. For example, tween these sectors. In developing countries, planners must evaluate the efficiency of a heat- water and wastewater systems are often poorly ing, ventilation, and air-conditioning system designed, rely on outdated equipment, and suf- against the thermal pass-through of a building fer from high nonmetered water losses owing envelope because each option reduces the ef- to inadequate investment and expertise. Many fectiveness of the other. For new government systems operate without adequate commercial buildings, the adoption of best practice in sus- incentives to be efficient. In light of these ob- tainable design and construction reduces life- stacles, the Alliance to Save Energy launched cycle costs and serves as an example for the pri- Watergy, a program that demonstrates the sig- vate sector. A comprehensive analysis of the nificant benefits of increasing clean water access financial costs and benefits of LEED-certified by reducing energy costs and water losses.12 In office and school buildings in the United States Fortaleza, in northeast Brazil, the Alliance to has found that a minimal up-front investment Save Energy worked with the local utility, the of about 2 percent of construction costs typi- Companhia de Água e Esgoto do Ceara, to de- cally yields (20-year) life-cycle savings of over velop and implement measures to improve water 10 times the initial investment (Kats 2003).11 distribution and access to sanitation services, Recently, some governments in developing while reducing operating costs and environ- countries have experimented with retrofitting mental impacts. The local utility invested about multiple municipal facilities under common R$3 million (about US$1.1 million) in various authority. Though this may be more complex, activities such as the installation of an automat- it may also substantially reduce transaction ic control system. The utility saved 88 gigawatt costs and allow for scaled-up investments. In hours and US$2.5 million over four years. More Hungary, for example, the Ministry of Educa- important, the utility established an additional tion issued a tender in 2006 for a single consor- 88,000 new connections, while decreasing over- tium to finance and retrofit all the schools in the all energy costs. country under an energy service company con- Efforts to improve energy efficiency should tract. The International Finance Corporation consider both supply- and demand-side mea- provided a portfolio credit guarantee to the sures and the relevant links. For example, as winning bidder for up to US$250 million. To water leakage and waste are reduced, additional date, about US$22 million has been invested in efficiency gains may be realized by down- about 200 projects. sizing pumping stations. Other measures should Water supply and wastewater treatment: The also be considered to boost efficiency, such as operation of water and wastewater systems is system redesign, pressure management, pump often the largest outlay in municipal energy impeller reduction, installation of low-friction budgets. For example, cities in California spend pipes and variable speed pumps, load manage- over 50 percent of their energy budgets on ment, power factor improvements, improved water and wastewater pumping (Lantsberg maintenance procedures, improved metering, 2005). Estimates suggest that 2 or 3 percent of and water recycling. Wastewater treatment the world’s energy consumption is devoted to plants might also be made more efficient by pumping and treating water and that the poten- recovering waste heat, capturing methane tial exists for related energy savings of more for power generation, and improving pumping than 25 percent. In many cities, energy and systems. 244 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Many cities in developing countries have a pending on cost structures and available lamps, pressing need to expand water supply and may have payback periods of less than three wastewater treatment capacities. The reclama- years. Installing time clocks and automated tion of runoff water and the on-site treatment of control systems and redesigning systems (to domestic wastewater are increasingly prevalent eliminate overlighted and underlighted areas) in new real estate development projects. Such may achieve additional energy savings. In India, practices, if properly configured within urban the State of Tamil Nadu issued a tender for water and wastewater networks, may enhance seven municipalities to be retrofitted to reduce overall energy efficiency, while relieving the energy use in public lighting and water pump- pressure on scarce freshwater resources. ing. Through an urban infrastructure develop- Public lighting: Public lighting is often consid- ment fund, bids were solicited that required a ered an essential public service that enhances minimum of 30 percent energy savings. Several economic activity and improves the quality of life competitive bids were received, an award was (for example, by reducing crime and vehicular made, and the project has been in operation accidents). Streetlights may be provided more since 2008 (Singh and others 2010). effectively and extensively by using energy- Other municipal services: There are other op- efficient lighting technologies, which are now portunities to realize energy savings through cheaper and more plentiful. However, the pro- municipal services, such as solid waste (waste curement of lamps is often based on consider- recycling, methane recovery in landfills for ation of the initial costs without taking into ac- power generation, and so on) and transporta- count the impact on recurring energy bills. To tion (alternative fuel vehicles, maintenance of varying degrees, municipal governments possess the public transit bus fleet, establishment of limited capital budgets to replace lighting; lack rapid transit systems and congestion tolls, for credible information on alternatives; and, in some example). An especially important aim in cold cases, fail to pay electricity bills for streetlighting climates is to improve the efficiency of district regularly. To illustrate the range of options avail- heating systems (box 3.8). able in streetlighting, table 3.14 examines the cost- effectiveness of alternative systems that were Beyond the public sector: considered by the State of New York in 2002. Focusing on the built environment Streetlamp retrofits may potentially save 30 As enforcers of national, regional, and local reg- to 40 percent of typical energy costs and, de- ulations, city governments substantially influ- Table 3.14 A Comparative Economic Analysis of Selected Streetlighting Systems MERCURY COBRAHEAD, METAL HALIDE COBRAHEAD, HIGH PRESSURE SODIUM COMPARED ELEMENT CONVENTIONAL ENERGY-EFFICIENT CUTOFF, ENERGY-EFFICIENT Lamp type 400-watt mercury vapor 250-watt metal halide 250-watt high-pressure sodium Number of luminaries 12 12 11a Installed cost, US$ 36,672 36,240 35,618 Annual energy cost, US$ 2,391 1,551 1,419 Annual operating cost, US$b 2,536 1,677 1,601 Total annualized cost, US$c 6,271 5,368 5,229 Source: NYSERDA (2002). a. Assumes a 10 percent reduction in the number of poles needed because of the higher luminous efficacy of high-pressure sodium. b. Includes energy and maintenance costs. c. Includes initial capital investment, energy, and maintenance costs annualized over 20 years. A FIELD REFERENCE GUIDE | 245 BOX 3.8 Improving Energy Efficiency, Reducing Energy Costs, and Releasing Municipal Budgets With partial support from a World Bank loan in 1991–99, the cities of of households. Households subsequently began to use heat more Gdansk, Gdynia, Krakow, and Warsaw, Poland, undertook renovations efficiently. Households or companies operating as the agents of in heat supply systems distributed heating meters for buildings, and households invested in thermostatic radiator valves, heat allocation reformed heat pricing from a tariff based on square meters of ser- meters, better windows, and insulation. A key result was that the viced area to a two-part tariff calculated per building. costs of heating a given apartment area fell by 55 percent because The government of Poland implemented energy sector reforms of consumer-driven efficiency improvements and technical, opera- requiring that payment for heat gradually become the responsibility tional, and management improvements in the heat supply compa- nies. This reduction helped to make the removal of subsidies less Results in Four Cities burdensome to households. INDICATOR 1991/92 1999 CHANGE, % Nationwide, household heating subsidies, provided by munici- Household heat bill subsidy (%) 67 <5 (1994) n.a.a pal governments, were reduced from 78 percent in 1991 to zero by Heat bill charged to households, 13.7 6.2 –55 the end of 1997. The installation of building heat meters has been 1999 (US$ per square meter) mandatory in all buildings since 1999. The use of heat allocation Heated floor area, square meter 63.8 68.6 7 meters has become a popular method to allocate heat bills within (millions) buildings; 5.5 million such meters had been installed as of 1997, Heat energy sold (gram calories 0.27 0.22 –18 covering about 30 percent of dwellings nationwide. More than 10 per square meter) companies have been formed and compete in the market for bill- Energy savings n.a. n.a. 22 ing services, including allocation meter installation, meter reading, Note: n.a. = not applicable. billing, and maintenance. The energy savings reflected in customer a. Nationwide, household heat subsidies, provided by municipal governments, fell heating bills stemming from the reform, including savings from pri- from 78 percent in 1991 to zero by the end of 1997. vate investments spurred by the reform, typically range from 20 to Source: World Bank (2001). 40 percent. ence the nature of the sustainable energy solu- oping countries. In 1995, the first mandatory tions adopted in the urban built environment. energy efficiency standard was introduced for This is especially important in rapidly growing new residential buildings in cold climates in cities in developing countries, where inaction China. Among large northern Chinese cities, leads only to future energy waste. Officials the compliance rate was a meager 6 percent in should focus primarily on the features and func- 2002. Since then, the national government has tions of new buildings that affect energy con- increased the assistance to local governments sumption, especially heating and cooling systems. for enforcement and inspections. The rate of Other factors include site plans, building lay- compliance rose to about 40 percent in 2005 outs, building envelopes, lighting fixtures, and and 70 percent in 2007. Compliant buildings, on water heaters. Much relevant experience has average, lose 35 percent less heat than conven- been accumulated in developed countries over tional buildings. The national government will the past 30 years. Matured technologies and soon promulgate a revised energy efficiency efficient materials may be applied to create standard for new residential buildings in cold buildings with low or near zero energy use for climates that will cut heat losses by an additional heating and cooling (Rosenthal 2008). Imple- 30 percent. This time, many cities are ahead of menting energy efficiency standards requires the national government. For example, in 2005, coordination among national, regional, and city Beijing and Tianjin adopted energy efficiency efforts, but local enforcement is critical. China standards for buildings similar to the pending provides a good example of the success of energy revised national standards. In 2007, the provinces efficiency programs in rapidly urbanizing devel- of Hebei and Liaoning did the same. 246 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Many developed countries have broadened their efforts to promote sustainable buildings by incorporating other conservation strategies, such as the improved management of water and waste and steps to enhance the quality of indoor environments. For example, in 2008, the State of California adopted the first green building standards in the United States. Developing countries should take note, however, that it takes years to create adequate capacity to enforce energy efficiency and green standards. More- over, it is important to sequence sustainable building interventions in ways that suit local capacity and priorities. The big picture: Urban spatial development Ultimately, individual cities and regional urban clusters must become more efficient in using natural resources, including energy. In cities, sustainable urban energy planning and practic- es should be integral parts of the implementa- tion of resource-efficient growth, which, it is hoped, complements sustainable development Figure 3.39 Urban Density and Transportation-Related Energy Consumption agendas at regional and national levels. To Source: Adapted from Kirby (2008). achieve intelligent resource-efficient growth, planned on the basis of existing physical, socio- cities may need to drop expansionary urban economic, and natural conditions. spatial development linked to motorized trans- portation and refocus development in neigh- borhoods to ensure that key services are within Conclusions walking distance or the range of bicycle travel and public transportation. Details on the im- Because energy cuts across multiple sectors, pacts of urban spatial development on urban the planning and implementation of sustainable energy efficiency are discussed in chapter 5 and energy measures in urban settings are complex. in sector note 3. In essence, the key message is Though many energy investments may be justi- that urban energy requirements may be reduced fied on the basis of the financial or economic by increasing urban densities, which returns, environmental concerns should be fac- reduces the extent of major municipal infra- tored into project assessments. Some general structure, such as roads, water and wastewater recommendations for promoting sustainable systems, power lines, and gas pipelines. Infra- energy and increasing energy efficiency and structure capital and operations and mainte- clean energy include the following: nance costs also fall under condensed systems. Figure 3.39, for example, illustrates the general • Ensure that the energy sector works properly. relationship between urban density and trans- Energy sector restructuring, utility commer- portation fuel consumption. Density also has cialization, pricing reform, and other mea- drawbacks and limits, however, and must be sures may reduce energy costs, while reducing A FIELD REFERENCE GUIDE | 247 energy waste. These efforts are most effec- 2. For example, the supply and prices of grid-based tively led at the national level. electricity are generally regulated by regional or national governments. • Explore options to retrofit the existing stock of 3. In general, building energy codes are regulated at infrastructure. This may be accomplished by the regional, provincial, state, or national level, but compliance depends on local enforcement. auditing energy sources and organizations, 4. Energy-efficient alternatives often require greater changing procurement guidelines, contract- expense in the short term, but save money in the ing energy service companies, devising pub- long term. They require capital investment at the lic agency targets for energy efficiency, and start-up, but their overall life-cycle costs are lower. Less efficient alternatives are often less expensive so on. Access to financing is key to realizing in the short term (requiring a smaller capital these gains. investment), and cities may choose them to provide a less expensive and easier solution for a • Consider the options in addressing the new wider population in a shorter time frame even built environment. This might entail adopt- though this may not be the optimum solution in ing energy efficiency standards for buildings the longer term. and equipment, improving city planning and 5. Electric lighting is a good example. By the time the electricity has reached a light bulb, an average of design processes, strengthening land use about 70 percent of the energy content of coal has schemes, and so forth. already been lost through conversion, transmission, and distribution. A compact fluorescent lamp • Seek options to bundle city programs. For ex- delivers the same amount of lighting service (that is, ample, combine the procurement of equip- brightness per square meter) using about 20 percent ment to negotiate better prices, combine of the electricity of an incandescent lamp. 6. Passive houses using ultralow energy for space similar services across cities, and boost the cooling and heating have been successfully city’s influence at the national level. demonstrated in Europe and the United States (Rosenthal 2008). • Seek ways to incentivize public agencies and 7. Distributed energy resources also exist in urban staff on sustainable energy options. Offer en- areas. These are based on parallel, stand-alone vironmentally sustainable awards, publish electricity generation units within electricity agency energy and environmental perfor- distribution systems. The units are located at or near end users. Examples include gas microturbine mance records, provide incentive grants, and systems, wind turbine systems, fuel cells, and so on. rooftop photovoltaic systems. Distributed generation may be beneficial for electricity • Create mechanisms for sharing cities’ experi- consumers and, if properly integrated, the ences across the country. This could be done electricity utility. through associations, case studies, newslet- 8. Market barriers to investment in energy efficiency ters, and so forth. refer to factors, usually social and institutional, that prevent the realization of the full economic potential of energy efficiency opportunities. The barriers help explain the difference between Notes observed energy efficiency choices and decisions and the corresponding choices and decisions predicted by economic theory. Some common 1. This sector note reflects the International Energy market barriers include misplaced incentives, lack Agency’s definition of cities as a general and of access to financing, high transaction costs, interchangeable reference for urban areas, which regulatory price distortions, lack of information, may be large metropolitan city-regions, such as and misinformation. New York City, or small urban settlements that have only a few thousand people (see IEA 2008). 9. For additional information on those and other The exact definition of urban areas varies by country. cases, see European Commission (2003) and Taylor and others (2008). 10. District heating systems are the only modern urban energy infrastructure that is entirely bound 248 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES to cities. The ownership structure has undergone ICLEI (ICLEI–Local Governments for Sustainability). significant changes, but city governments still 2008. “International Local Government GHG exert great influence on the development and Emissions Analysis Protocol.” Release version 1.0, management of these systems. ICLEI, Toronto. http://www.iclei.org/fileadmin/ 11. LEED (Leadership in Energy and Environmental user_upload/documents/Global/Progams/GHG/ Design) is a green building rating system devel- LGGHGEmissionsProtocol.pdf. oped by the U.S. Green Building Council. It IEA (International Energy Agency). 2008. World provides a suite of criteria for environmentally Energy Outlook 2008. Paris: IEA. sustainable construction. The main financial Kats, Greg. 2003. “The Costs and Financial Benefits of benefits of meeting the criteria include the lower Green Buildings: A Report to California’s costs of energy, water, and waste disposal. Sustainable Building Task Force.” California 12. See the Alliance to Save Energy’s 2007 Watergy Integrated Waste Management Board, Sacramen- Handbook (Barry 2007) for a discussion on the to, CA. http://www.cap-e.com/ewebeditpro/ barriers and opportunities for tapping into water items/O59F3259.pdf. and energy efficiency in water utilities. Kirby, Alex. 2008. Kick the Habit: A UN Guide to Climate Neutrality. Nairobi: United Nations Environment Programme. Lantsberg, Alex. 2005. “Sustainable Urban Energy References Planning: A Road Map for Research and Funding.” Consultant report, CEC-500-2005-102, California Bai Xuemei. 2006. “Solar-Powered City: Rizhao, China.” Energy Commission, Sacramento, CA. http:// In State of the World 2007: Our Urban Future, ed. www.energy.ca.gov/2005publications/CEC-500- Worldwatch Institute, 108–09. Washington, DC: 2005-102/CEC-500-2005-102.PDF. Worldwatch Institute. http://www.worldwatch. Mairie de Paris (Mayor’s Office of Paris). 2007. “Paris org/taxonomy/term/467. Climate Protection Plan” [Plan climat de Paris]. Barry, Judith A. 2007. “Watergy: Energy and Water Mairie de Paris, Paris. http://www.paris.fr/portail/ Efficiency in Municipal Water Supply and english/Portal.lut?page_id=8118&document_type_ Wastewater Treatment; Cost-Effective Savings of id=2&document_id=66812&portlet_id=19237. Water and Energy.” Handbook, Alliance to Save NYSERDA (New York State Energy Research and Energy, Washington, DC. http://www.watergy.net/ Development Authority). 2002. “NYSERDA resources/publications/watergy.pdf. How-to Guide to Effective Energy-Efficient Street C40 Cities. 2009a. “Lighting: Växjö, Sweden.” C40 Lighting: For Planners and Engineers.” Nyserda, Cities Climate Leadership Group. http://www. New York. http://www.rpi.edu/dept/lrc/nystreet/ c40cities.org/bestpractices/lighting/vaxjo_ how-to-planners.pdf. streetlight.jsp. Rosenthal, Elisabeth. 2008. “The Energy Challenge: No ————. 2009b. “Buildings: Melbourne, Australia.” C40 Furnaces but Heat Aplenty in ‘Passive Houses.’” Cities Climate Leadership Group. http://www. New York Times December 27: A1. c40cities.org/bestpractices/buildings/melbourne_ Singh, Jas, Dilip R. Limaye, Brian J. Henderson, and eco.jsp. Xiaoyu Shi. 2010. Public Procurement of Energy CBSC (California Building Standards Commission). Efficiency Services: Lessons from International 2009. “2008 California Green Building Standards Experience. Washington, DC: World Bank. Code.” CBSC, Sacramento, CA. http://www. Taylor, Robert P., Chandrasekar Govindarajalu, Jeremy documents.dgs.ca.gov/bsc/2009/part11_2008_ Levin, Anke S. Meyer, and William A. Ward. 2008. calgreen_code.pdf. Financing Energy Efficiency: Lessons from Brazil, City of New York. 2007. PlaNYC: A Greener, Greater China, India, and Beyond. Washington, DC: World New York. New York: City of New York. http:// Bank. www.nyc.gov/html/planyc2030/downloads/pdf/ USAID (U.S. Agency for International Development). full_report.pdf. 2005. “Watergy Program Pioneers Performance European Commission. 2003. Harnessing the Power of Contract to Save Water, Energy in S. Africa.” the Public Purse: Final Report from the European Energy Update 2 (April/May): 6–7. PROST Study on Energy Efficiency in the Public Sec- World Bank. 2001. “China: Opportunities to Improve tor. Stockholm: Borg and Co. AB. http://ec.europa. Energy Efficiency in Buildings.” Report, Asia Alter- eu/environment/gpp/pdf/harnessing_power_ native Energy Programme and Energy and Mining prost_study.pdf. Unit, East Asia and Pacific Region, World Bank, Washington, DC. A FIELD REFERENCE GUIDE | 249 ————. 2007. Cost of Pollution in China: Economic Worldwatch Institute. 2006. State of the World 2007: Estimates of Physical Damages. Washington, DC: Our Urban Future. Washington, DC: Worldwatch World Bank. http://siteresources.worldbank.org/ Institute. http://www.worldwatch.org/taxonomy/ INTEAPREGTOPENVIRONMENT/Resources/ term/467. China_Cost_of_Pollution.pdf. 250 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES SECTOR NOTE 2 Cities and Water Overview governments must address key aspects of inte- grated water sector management and cross-cut- Water is indispensible to human activity. Ancient ting issues among various sectors. These aspects civilizations flourished around water sources, and issues involve policies, regulations, planning including ancient China, Egypt, and Rome. Water activities, sector investments, financing meth- has shaped the destinies of great cities, such as ods, service provision, and institutional factors. Beijing, Cairo, Frankfurt, London, New York, The input-output model for the water sector Paris, Rome, and Sydney. However, many pio- is shown in figure 3.40, which specifies input neering cities, such as Babel and Sheba in the parameters, desired outputs, relevant interven- ancient Middle East, diminished or disappeared tions, and undesired outputs that must be mini- because water sources dried up. Water plays an mized. All interventions in a city should lead to important role in economic growth, quality of desired objectives, which include (1) accessibil- life, and environmental sustainability. Some ity for all residents, including the poor; (2) ade- people define water as a divine gift, while oth- quate service quality; (3) high operational effi- ers view it as an economic commodity. In any ciency; (4) service reliability; (5) supply security case, water is a limited resource that must often and sustainability; (6) environmental preserva- be processed to become usable, and there are tion; and (7) service affordability. These objec- costs associated with its transportation, distri- tives are interlinked, and trade-offs must be bution, and management. Water has social val- recognized. Interventions may be related to ue, and access to sufficient water to survive is a planning, water resource protection and en- human right. In this context, politicians and hancement, infrastructure, service delivery, and managers typically take steps to guarantee that management. These interventions are subject the poor have access to an equitable share of to relatively unchangeable input constraints water services, particularly in developing coun- (independent inputs) such as the characteris- tries. Water is a shared resource that plays a tics of water resources, hydrology and hydroge- vital role in the development of other economic ology, climate and atmospheric conditions, sectors. demographic and economic conditions, and Given the importance of water, there is a need social norms and historical rights. Parameters for integrated management at the sectoral level that are manageable include policy, legislation, and at the macrolevel to ensure that the resource regulations, institutions, physical systems tech- is used in optimal and sustainable ways (that is, nology, spatial planning, stakeholders, and eco- integrated water resources management). To nomic and financial aspects. Undesirable im- ensure resource optimization and sustainability, pacts should be mitigated or eliminated. These A FIELD REFERENCE GUIDE | 251 Independent inputs (mostly given or not controlled): • Water resource characteristics • Location hydrology and hydrogeology • Climatic and atmospheric conditions • Demographic and economic conditions • Social norms and historical rights Desired outputs Dependent inputs Water sector interventions: (objectives to be maximized): (controlled to some degree): A. Planning • Accessibility 1. Policy, legislation, and regulations B. Resource protection • Quality 2. Institutions and enhancement • Efficiency 3. Physical systems, technology, C. Infrastructure • Reliability and spatial planning D. Services • Supply security and 4. Stakeholders E. Management sustainability 5. Economic and financial aspects • Environment • Affordability Undesired outputs (to be minimized): • Implementation time and life-cycle costs • Water pollution • Depletion of water resources • Environmental damage • Health hazards • Local and cross-boundary disputes Figure 3.40 The Input-Output Framework in the Water Sector Source: Author compilation (Khairy Al-Jamal). potential impacts include, but are not limited to Water Sector Policy, Legislation, implementation time and life-cycle costs, water and Regulations pollution, depletion of water resources, envi- ronmental damage, health hazards, and local The policy, legislative, and regulatory frame- and cross-boundary disputes. work defines the rules for managing the water This sector note sheds lights on strategies for sector at the national and local levels. The water sector management. It is designed to as- framework may expand beyond national bound- sist urban decision makers in putting together aries and address cross-country issues if water an optimal and well-coordinated set of pro- resources are shared or water management and grams. A key challenge is the high degree of protection require international cooperation. nonlinear interconnections among urban sec- The framework strives to satisfy myriad aims, tors, including water, energy, solid waste, tele- including ensuring the adequate protection of communications, and transportation, which water resources, developing and promoting share many economic, environmental, and po- sustainable water services, ensuring equitable litical constraints. Nonetheless, optimization of distribution and access, improving health and the net benefits amid these sectors and links is environmental conditions, enabling economic the defined objective. growth, and promoting efficiency and optimi- zation in the use of water resources to enhance the viability of the sector. 252 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES As suggested in table 3.15, water sector man- At the national level, the framework influ- agement systems are linked, and systems and ences the minimum service standards for the subsystems need to be connected. The three quality of drinking water and wastewater treat- main interconnected systems are water re- ment and disposal in accordance with quality sources, water services, and governance sys- regulations and the technical standards of water tems. Each of these main systems is composed systems. Standards in the allocation of water re- of downstream systems and subsystems. sources are normally based on environmental Though the management and implementation regulations, and prices are usually set on the ba- of these systems and subsystems may intersect sis of economic regulations, water laws, and the within the water sector, some systems and sub- modalities of service providers. At the local lev- systems may also intersect with other sectors, el, the framework addresses equity and access to such as land, construction, and infrastructure services, community participation in decision operations, particularly in decision making on making, distribution and collection system lay- the allocation of water resources. out, physical planning, the spatial configuration The high degree of connectivity and interac- of water works, and acoustic and odor control tion in these systems and subsystems calls for and management (table 3.16). well-developed policies, legislation, and regula- Though policies and legislation are normally tions at the national and local levels. formulated at the central level, regulations may be imposed centrally or locally. In some cases, regulations may be imposed through contracts. Table 3.15 Water Sector Management Systems WATER RESOURCES SYSTEMS WATER SERVICES SYSTEMS GOVERNANCE SYSTEMS Water resource planning system Water service planning system Policy-making system Financial planning subsystem Financial planning subsystem Regulatory system Organization planning subsystem Organization planning subsystem Environmental regulation subsystem Physical planning subsystem Physical planning subsystem Economic regulation subsystem Water resurce operations system Water service operations system Drinking water quality regulation Construction management subsystem Construction management subsystem subsystem Operations and maintenance subsystem Water operations and maintenance Accountability system subsystem Water resource management system Wastewater operations and maintenance Abstraction licensing subsystem subsystem Allocation subsystem Systems hardware and software Supply and demand management subsystem management subsystem Water services management system Services quality compliance subsystem Effectiveness and efficiency subsystem Pricing subsystem Commercial system Customer services subsystem Billing subsystem Collection subsystem Human resources management system Management information system Source: Author compilation (Khairy Al-Jamal). A FIELD REFERENCE GUIDE | 253 Table 3.16 The Policy, Legislative, and Regulatory Framework Affecting the Water Sector LEVEL POLICIES, LEGISLATION, AND REGULATIONS FRAMEWORK National • Water laws • Allocation of water resources to the domestic sector and the share with provinces and cities • Drinking water quality standards • Wastewater treatment and disposal standards • Water works and systems standards • Tariff structure and pricing policy Local • Physical planning and spatial distribution • Metering and usage charges • Billing and collection • Equity and access • Affordability • Efficiency of operations • Local environmental impacts such as noise, appearance, and odor • Participation and community empowerment Source: Author compilation (Khairy Al-Jamal). The Institutional Context pliance with service standards and other sector policies to ensure sustainability. This A strong and appropriate institutional setup en- requires providing adequate services at sures smooth and successful compliance with affordable prices. The three subsystems under sector policies, legislation, and regulations. In- the regulatory function are the environmental stitutions ideally execute interventions to opti- regulation subsystem (issuing licenses for mize gains despite sectoral constraints and abstraction and disposal), the quality regu- boundary conditions. Institutions should priori- lation subsystem (ensuring compliance with tize the achievement of sectoral targets, but also standards for drinking water, wastewater interface with other sectors to ensure optimal treatment, and the quality of works), and development on a larger scale. The key institu- the economic regulation subsystem (review- tional entities include policy makers, regulators, ing prices to ensure tariffs are proportionate service providers, and customers (figure 3.41). to real costs, promoting efficiency and con- Regardless of the institutional arrangements, servation, and enabling sustainability and the integrity of water sector systems must be affordability among the poor). preserved (see table 3.15). An institutional setup In some cases, municipalities may propose should show integrity, comprehensiveness, a and implement regulations. However, it is im- sound division of roles and responsibilities, and portant to ensure separation between regula- representation in other developmental forums, tors and service providers to avoid conflicts of as follows: interest. The regulator ensures that custom- ers receive services up to agreed standards • Policy maker: The policy-making function re- to mitigate the risk that service providers sides mainly at the central level, and national underperform. Both bodies should not be policies are normally imposed on cities. under the jurisdiction of the same entity. It is • Regulator: The regulatory system is respon- equally important that the policy-making sible for enforcing rules to guarantee com- body and regulator be separate institutions. 254 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES In the United Kingdom, regulations are exten- utilities offer water, electricity, and other sive. Environmental regulations are executed services. The decision to combine utility ser- by the Environment Agency, which is separate vices should depend on the scale of related from the independent economic and quality industries and potential cost savings. More- regulator (the Water Services Regulation Au- over, public utilities may outsource some or thority). This separation enhances the internal all of their operations to increase efficiency. transparency and accountability of the regula- • Civil society: Civil society should be institu- tory system because decisions are made in the tionalized by establishing user associations open. However, regulatory agencies should and appropriate participation channels. This coordinate closely to manage trade-offs. The helps ensure public participation in industry prime interest of the environmental regulator development and related decision making. is to minimize the abstraction from water Policy makers and regulators often consult resources and to enforce stringent standards user associations to assess and ensure the on disposed sewage. However, the main adequacy of policies, legislation, regulations, interest of the economic regulator is to and service levels. Service providers should ensure that levied tariffs cover costs, which recognize users as genuine customers who often means supporting relaxed disposal drive industry revenue and sustainability. standards and maximizing the use of natural water resources before considering more expensive and nonconventional options, such Physical Systems Technology and as seawater desalination. Spatial Arrangement • Service provider: Service providers are respon- sible for providing water services in the city, Water systems are composed of four main sys- including water treatment and distribution tems: water supply, wastewater, storm water, and and associated customer relations. Water reclaimed water. The storm water and reclaimed sources may be located within the city and water systems are similar in configuration and managed by the service provider or outside operation to the wastewater and water supply the city and managed by a different water systems. Figure 3.42 illustrates a typical water provider. The same service provider should system layout. The system includes water and provide storm water collection, flood man- wastewater treatment facilities, distribution agement, and wastewater collection and treatment services. Consolidating these ser- vices will help improve the control over all Policy Makers services and promote accountability and more efficient operations. For instance, a water supplier normally encourages custom- Regulator ers to reduce sewage if it also handles the sewage. Suppliers also promote the protec- Utility tion of water resources if they bear the cost of water treatment. Service providers may Users be private companies (France, Germany, the Associations Customers United Kingdom, and so on), public utilities (Australia, Germany, and South Africa), or Figure 3.41 The Institutional Setup in the municipalities (France, Egypt, Germany, Water Sector and Jordan). In some cases, multifunction Source: Author compilation (Khairy Al-Jamal). A FIELD REFERENCE GUIDE | 255 and collection networks, control valves, pump- energy costs. Proper system reconfiguration ing stations, storage tanks, and disinfection fa- leads to reduced total distribution costs (box cilities. The system serves distributed demand 3.9). To avoid substantial increases in network nodes. costs, loop networking may be operated at lower The following sections highlight technologi- pressures and through smaller pipes made of cal factors in designing water systems and the material that is less expensive than ductile iron. merits of the proper spatial distribution of de- Water treatment plant: The water treatment mand nodes, which are governed by land use process may be simple. Biological treatment is planning. preferred over chemical-intensive processes. Treatment plants must be close to water re- Water supply systems sources and, it is hoped, close to urban demand The spatial distribution of demand centers: Cit- centers. To ensure the security of water sup- ies should strive to limit urban sprawl to ensure plies, cities must build the treatment plant with that the demand for water is not overly dis- space to expand to meet growing demand and persed and that the extent of distribution and should consider building more than one plant collection systems is minimized. (The costs re- associated with different sources (if possible). lated to distribution networks typically account Groundwater and water wells: If the ground- for 70 percent of the overall costs of a water water is viable, well fields should be developed supply system.) Denser land developments help and distributed near demand centers. This minimize the costs of capital and operations. proximity leads to a simpler network and lower Energy consumption also typically declines be- energy and capital costs. Distribution systems cause consumption is linearly proportionate to may often operate from minimal storage tanks pipe length. In addition, dense developments because the aquifer represents a robust and fea- promote environmental protection. sible storage source. Moreover, many cities Distribution system spatial configuration: It is commonly use aquifers as natural storage recep- important to achieve highly reliable water sup- tacles for the surface water that infiltrates from ply services. This often entails some redundancy basins along river embankments and other in the network, such as loop networks that areas (for example, Paris). Infiltration is a natu- supply a demand zone through more than one ral treatment process that helps purify water at main pipe. This may involve trading higher minimal cost. capital costs for improved reliability and reduced Water pumps: Water pumps are the main en- ergy consumers in water systems. The energy consumed is proportional to the set efficiency of the pump motor. Normally, pumps are most efficient at their designed operating points. However, owing to load changes, pumps are often operated outside peak efficiency, and significant energy is wasted. Variable speed pumps may be modified to address this waste. Pump speed is adjusted to maximize efficiency given any particular load. Pumps may also be noisy, but this may be mitigated by introducing acoustic insulators. Storage Tanks: Depending on the mode of Figure 3.42 Schematic Diagram of a Water System operation, storage tanks may be important com- Source: Walski, Chase, and Savic (2001). 256 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.9 The Effect of Distribution System Configuration on Energy Consumption The schematic represents a small town with hourly water demand of 450 cubic meters. The demand is split among nodes 2, 3, 4, and 5. The town is served through a fixed speed pump from a reservoir at an elevation of 10 meters. For illustrative purposes, two scenarios have been considered. In scenario 1, link 1–5 does not exist. In scenario 2, link 1–5 has been constructed. DISTRIBUTION SYSTEM DATA ANALYSIS RESULTS 3 Node Demand (m /hr) Elevation (m) Pipe Diameter (mm) Length (m) Node Pressurea (m) Pressureb (m) 1 0 10 1 –2 500 1,000 1 58.33 43.75 2 100 30 2–3 400 1,000 2 37.02 23.39 3 50 30 3–4 400 1,000 3 34.58 23.03 4 100 30 4–5 300 1,000 4 27.1 3 22.47 5 200 25 5–1 400 1,000 5 23.58 27.66 Note: m = meter; m3/hr = cubic meters per hour; mm = millimeter. a. Node pressure, scenario 1. b. Node pressure, scenario 2. Results: 1. In scenario 2, the pump has been replaced by a smaller one, and the power demand has dropped to 71.5 kilo- watts from 95.3 kilowatts (a 25 percent drop). 2. The annual energy savings is 209 megawatt hours, which may be equivalent to a savings of US$20,000 per year. 3. The capital investment to complete the loop and construct link 5–1 is less than US$100,000 and may be paid back in about five years using the gain from energy savings. 4. Additional improvement may be achieved if a full optimization analysis is conducted to target the sizes of the pipes (diameters), while maintaining other hydraulic parameters such as flow velocities and node pressures within the recommended hydraulic design parameters. Note: The hydraulic analysis has been conducted using EP-Net (enhanced prioritized Petri net) modeling software. ponents of a water supply system. Storage ca- Storm water management pacity should equal one day of service. This ca- Storm water and rainwater harvesting and pacity enhances water security in case of flood management: Storm water collection treatment plant stoppage, leads to smaller treat- systems may be combined with sewage col- ment and pumping facilities, reduces capital lection systems. Though this may reduce cap- and operations costs, and enables optimal pump ital investment, treatment becomes more dif- scheduling and intense treatment during peri- ficult if wastewater and storm water are ods of low electricity tariffs (usually nights and reused. For this reason, these systems should off-peak hours). Planners must balance poten- normally be separate, complemented by ef- tial savings with the capital costs of construct- fective and innovative water storage tools. ing storage tanks. For example, rainwater may be harvested A FIELD REFERENCE GUIDE | 257 from the roofs of buildings and used for gar- wastewater may also partially contribute to sat- dening, flushing toilets, and washing cars. isfying industrial water demand. In general, climate change analysis predicts Water desalination: Most East Asian and that East Asia will receive heavier and more in- Southeast Asian countries have extensive coast- tense rains. A significant negative effect is that lines, and desalination represents a promising the sea is expected to rise by about 0.5 meters means of enhancing water resources. Seawater by 2100 (figures 3.43 and 3.44). Flood manage- desalination has undergone significant improve- ment systems must be designed to cope with ments over the last two decades. Owing to tech- these expected loads, and systems must be stra- nological advances in membranes and energy tegically located at nonvulnerable elevations. recovery devices, the cost of seawater desalina- All new coastal cities in the region should also tion in reverse osmosis plants dropped from consider plans to locate infrastructure above around US$3.00 to less than US$0.60 per cubic the anticipated sea level. meter. In addition, energy consumption fell It is often advantageous to bundle the con- from 8.0 kilowatt-hours per cubic meter to less struction of road, water, sewerage, and storm than 3.0 kilowatt-hours per cubic meter. Ther- infrastructure. A common underground infra- mal desalination processes may be competitive structure and service corridor is a typical prac- if they are well designed and if they are integrat- tice in many cities. This may reduce overall ed into power generation plants. Cogeneration costs and ease maintenance. plants generally improve the production of both electricity and freshwater. Nonconventional water resources Reverse osmosis desalination plants are Wastewater reuse: Treated wastewater is a po- more flexible and do not need to be constructed tential resource. It may be used to irrigate pub- together with power plants. Because of their lic parks and landscaped plots and is rich in nu- significant energy needs, reverse osmosis desali- trients for plant life. The strategic use of treated nation plants should be equipped with energy wastewater may cut crop production costs and recovery devices such as the newly developed relieve stresses on the freshwater resources pressure and work exchangers that recover needed to meet domestic, industrial, and envi- nearly all the energy from brine before the brine ronmental demand. Wastewater reuse is prac- is discarded in the sea. Alternatively, brine may ticed, notably, in China, Japan, and Singapore. be processed to produce raw material for the In situ treatment and the recycling of industrial sea minerals industry. In such cases, the plant is Figure 3.43 Area at Risk If There Were a 0.5-Meter Figure 3.44 Changes in the Annual Mean Daily Rise in Sea Level in Asia Precipitation Expected by 2100 Source: World Bank (2007). Source: World Bank (2007). Note: The values are expressed in millimeters. 258 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES known as a zero disposal plant. The disposal of Metering: Metering is crucial to water supply brine in the sea must be carefully executed to management. Metering enhances equity be- avoid environmental damage. Brine must be cause consumers pay for only the water they dispersed in active water to avoid increased salt receive. Metering also promotes the manage- concentration or rises in seawater temperature ment of water demand. Unlike fixed fees, me- that may harm marine flora and fauna. Special ter-based charges provide incentives to save nozzles are available and may be used to limit and conserve water. However, water meters environmental damage. must be frequently checked and calibrated and may need to be replaced each decade. Meters Water supply and demand management are manufactured in classes (A, B, C, and D) Nonrevenue water and leak reductions: Nonrev- based on levels of accuracy at specified flows. enue water is the collective commercial and The higher-class meters (that is, C and D) are physical losses from a system. Good practice more accurate in measuring low flows at wider suggests that the physical losses should repre- ranges, but class D meters are more expensive. sent less than 4.4 percent, as in Singapore in Remote reading technologies are often used to 2007 (Lau 2008). Physical losses entail the loss save costs in meter reading. of water as an economic resource, the loss of Conservation and use efficiency interventions: revenue needed to maintain sector sustainabil- New technological devices have been developed ity, and the energy costs involved in producing and are available to promote water conservation. and transporting the water that is lost. Wasted Showers, toilets, and laundry facilities represent energy unnecessarily increases greenhouse gas the most significant sources of water consump- emissions, which are responsible for the global tion in households. Box 3.10 illustrates experi- warming and climate change that are already ments in Canada in which water consumption affecting water resources, flood management, was reduced by 52 percent by introducing mod- and developmental investments. ern fixtures, including kitchen faucet aerators, Leakage negatively affects the environment, aerated shower heads, dishwashers, and front- the economy, and ecology. Water leaks represent loading clothes washers. losses of resources and energy and may damage In some areas, heating and hot water infra- infrastructure installations and ecological facili- structure is centralized. This may result in high ties. Leaks may be minimized or controlled energy and water losses to flush out cold water through pressure control devices (that is, zoning in house connections. In most cases, instant or reconfiguring of online control and distribu- heaters with shorter service pipes from gas tion systems), district metering, and instruments furnaces or electric heaters are more feasible to detect leaks. Leaks are linearly proportional and energy efficient, and water losses from such to pipe water pressure. Thus, pressure should devices are negligible. be kept at a level minimally adequate to deliver The practice of washing cars using hoses services. For example, leaks drop by 50 percent connected to house taps should be abandoned. if pipe pressure falls from 4 bars to 2 bars. Bucket-and-towel washing or specialized com- Appropriate pressure modulation may be mercial car wash terminals should be substitut- achieved by introducing variable speed pumps, ed because these processes consume less water. proper pump scheduling, and pressure control Special car wash terminals may also recycle valves. The construction of elevated reservoirs water. In addition, street cleaning should take and appropriate configurations of distribution place at night because roads are coolest then, systems also help reduce the risk of leakage. thereby reducing evaporation. Detection equipment is available and is used by In general, agriculture is the sector that water utilities around the world. consumes the most water. In urban areas, agri- A FIELD REFERENCE GUIDE | 259 BOX 3.10 Canada: Conservation and Domestic Water Consumption The average domestic water consumption by households in Canada is approximately 350–400 liters per person per day (300 liters per day for indoor use and 100 liters per day for outdoor use). Canadians use considerably more water than do most other nationalities. Conse- quently, summer water flows from mountain glaciers and annual snowpacks are diminishing. Sustaining access to water is therefore an important conservation goal in Canada. Domestic water is used in bathrooms (toilets, showers, and faucets), kitchens (dishwashing and food preparation), and laundry facilities. Based on typical values, the charts illustrate the percentages of water used for these activities through conventional and low-flow fixtures. Conventional Fixtures Low-Flow Fixtures Cooking & Cleaning, Toilet, 5.9% 12.9% Toilet, 20.6% Showerhead, Clothes 17.0% washer, 13.2% Reduction, Dishwasher, Faucets, 52.0% 2.6% 10.6% Dishwasher, Faucets, 0.6% 14.7% Clothes Showerhead, washer, 37.7% Cooking & 2.8% Cleaning, 23.0% These values are based on a family of four people, as shown in the table: WATER CONSUMPTION FIXTURE FAMILY USE CONVENTIONAL FIXTURE LOW-FLOW FIXTURE Showerhead 8 minutes/person/day 15 liters/minute 7 liters/minute Toilets 5 flushes/person/day 13 liters per flush 6 liters to flush solids 3 liters to flush liquids Faucets 5 minutes/person/day 10 liters/minute 7 liters/minute Kitchen (cooking and cleaning) 15 minutes/day 10 liters/minute 7 liters/minute Conventional dishwasher 1 use/day 33 liters per use 8 liters per use Clothes washer (top loader) 7 uses/week 170 liters per use 36 liters per use The toilet is the most important source of water consumption in the home. Over 70 percent of water use occurs in the bathroom. Toilets and showerheads thus represent the best opportunities for water reduction in the home. Low-flow fixtures include dual-flush toilets. These toilets have two flush buttons: one provides a 3-liter flush for urine; the other pro- vides a 6-liter flush for solids. Showerheads and faucets may be designed to reduce flows without a noticeable reduction in performance. New appliances such as dishwashers and front-loading clothes washers have significantly lower water needs. Low-flow fixtures may reduce water consumption in the home by over 50 percent, from approximately 1,200 liters per day (interior use) to 600 liters per day. This does not include outdoor use for landscaping. Source: Adapted from The Living Home (2008). cultural activities are still common in parks, systems, such as drip irrigation, subsurface irri- along streets, and in public and residential gar- gation, and sprinkler irrigation should be used. dens. Efficient irrigation in these areas helps im- prove water use and sector sustainability. Irriga- Wastewater treatment and sludge disposal tion should be properly timed to avoid peak Location of the wastewater treatment plant: daily temperatures and reduce evaporation and Wastewater treatment plants are not popular evapotranspiration losses. Efficient irrigation facilities. While wastewater is generated within 260 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES residential centers, residents generally pressure subsidize production costs through carbon fi- governments to locate wastewater treatment nance funds. These funds promote technologies plants far from their neighborhoods. In general, that reduce greenhouse gas emissions such as plants need to be located as close as possible to carbon dioxide, which is linked to global warm- sewage generation sources and downwind of ing and climate change. communities; they need to discard wastewater In traditional plants, sludge is often discarded downstream of neighborhoods and water works in the sea or dumped into solid waste landfills. facilities if there is an intermediary river. The These practices are falling out of favor because plant also needs to be centrally located to mini- they risk harming the marine environment and mize the energy consumption of sewage trans- polluting groundwater. fer and effluent disposal or reuse. There are of- ten trade-offs among these conflicting interests. Energy efficiency Process of wastewater treatment: There is a Energy is often the dominant factor that deter- wide range of sewage treatment processes. As mines the cost of water and wastewater servic- much as possible, priority should be given to bio- es. The energy needs of these services may vary logical treatment processes to avoid the use of from less than 1 kilowatt-hour to many kilowatt- hazardous chemicals. It is also important to treat hours per cubic meter of treated water. The domestic and industrial sewage separately. amount of required energy depends on the Moreover, legislation is needed to prohibit non- following factors: biodegradable domestic detergents and the • Distance and elevation of water sources rel- disposal of hazardous wastes, such as heavy ative to service areas metals, pesticides, hydrocarbons, and medical • Topography of service areas wastes, into the city sewerage system. Awareness • Depth of groundwater aquifers (if applica- campaigns and public participation are essential ble) to these efforts. Activated sludge treatment • Location of wastewater treatment and dis- plants are common around the world and lauded posal facilities for their efficiency and relatively compact size. • Energy consumption in water production However, the treatment processes are energy in- and wastewater treatment facilities tensive. Treatment plants with extended lagoons • Energy recovery ratios at wastewater treat- consume much less energy and are cheaper to ment plants via sludge digestion construct, though they need more land. • Energy recovery ratios at desalination plants Sludge management: In addition to treated • Levels of technical and commercial water effluent, wastewater treatment plants produce losses sludge, which is composed of biomass and set- • Configuration and design of the water dis- tled biological material. If the biological content tribution and wastewater collection sys- has been appropriately digested, sludge may be tems a valuable resource for composting, fertilizing, • Modes of operation of the water distribu- or generating methane. Generated methane tion system may be captured and used as an energy resource. Commonly, treatment plants are equipped with There is a strong and direct relationship between gas turbines and generators that use methane to water use and energy savings. This link has led produce electricity. The generated electricity to the expression Watergy. Box 3.11 summarizes may be sufficient to cover most of the electricity the scope of Watergy within the water sector, demand for treatment, or it may be sold to such as in demand management and supply the distribution grid. Special legislation may management and the synergy between the two encourage plant operators to sell electricity or in terms of system design and operation. A FIELD REFERENCE GUIDE | 261 BOX 3.11 Combined Water and Energy Activities in Water Supply Management Supply-side Demand-side efficiency Comprehensive demand / efficiency measures measures supply side approach Consumers synergies Residential/Industrial Watergy efficiency Water supply systems Reducing demand by helping Looking at a water system is cost-effective offer multiple oppor- the consumer use water more comprehensively and delivery of water services, tunities to reduce water efficiently decreases the ensuring thay efficiency while minimizing water and energy waste directly, required water supply, saving projects are designed in and energy use. while serving customer both energy and water. tandem create greater needs more effectively. efficiency opportunities. = + + + • Leak and loss reduction • Water-efficient household • Right-sizing pump • Operations and appliances systems after reducing maintenance • Low-flow toilets consumer demand • Pumping systems • Low-flow showerheads • Avoiding wastewater • Primary and secondary • Industrial water reuse treatment by promoting wastewater treatment • Leak and water waste reduction and reducing demand Source: Alliance to Save Energy (2002). Box 3.12 illustrates a case study in Brazil. es. For instance, tariffs ensure sector sustain- The study reveals that automating the water ability by furnishing revenues to finance sector supply system and providing online control management expenses. Tariffs are usually set saved 22 gigawatt hours per year, equivalent to at the municipality level, which represents the US$2.5 million. The control system cost only local government, though, in some models, US$1.1 million. tariffs are set by the central government. Tariffs are eventually endorsed by policy makers at the central level. Reviews of prices are carried Stakeholders out when tariffs expire. Thus, there is a con- stant need to analyze the real costs of service The stakeholder dynamic illustrated in figure delivery thoroughly, including the rent value 3.45 is important to the water sector. This of any scarcity in water resources. The regulator dynamic includes interfaces between customers, is responsible for conducting price reviews. service providers, municipalities, regulators, and Calculations of the real costs are expected to policy makers. Transparency, accountability, cover the shadow price of water, the cost of and public participation are needed because carrying out treatment according to specified the water industry is often highly monopolistic. standards, and the cost of distribution and deliv- These factors allow strategic decisions to be ery. The shadow price of water is governed by made using top-down and bottom-up approach- the demand of all users, and the policy affect- 262 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.12 The Watergy Case Study in Fortaleza, Brazil Challenges useful to other water and sanitation companies exploring ways to The importance of the project in Fortaleza was highlighted during increase efficiency. the energy crisis in Brazil in 2000 and 2001. Of the energy generated in the country, 70 percent comes from hydropower. Droughts and Approach energy shortages are thus inextricably linked. During droughts in An automated water distribution system allows operators to obtain 2000 and 2001, all consumers were required to reduce energy con- strategic data in real time. The automation of the system in the sumption by 20 percent. Fortaleza Metropolitan Region allows for the correction of deficien- Since 2001, the Alliance to Save Energy has worked with the local cies, particularly those linked to overdesign. Along with CAGECE’s utility in northeast Brazil, Companhia de Água e Esgoto do Ceará efforts, alliance actions in 2002 included the following: (CAGECE), to develop and implement measures to promote the • Establishment of a baseline of energy consumed and water dis- efficient use of water and energy. This partnership has been aimed tributed for CAGECE at improving the distribution of water and the access to sanitation • Implementation of efficiency measures that led to a reduction in services, while reducing operating costs and environmental impacts. operational energy consumption The partnership has reduced CAGECE’s energy use and served as • Development of a financing proposal, in association with the gov- an example of good practice for other national projects, which is ernment’s Fight against Electricity Waste Program, to undertake important because the water and sanitation sector accounts for energy efficiency projects with CAGECE operational staff; the 2.3 percent of the nation’s energy consumption. technical support provided by the alliance resulted in the devel- opment of energy efficiency projects, cost-benefit analyses, and Background the specifications of the equipment that could be financed Designs of water distribution systems are based on population pro- • Arrangement of R$5 million in financing for CAGECE for energy jections derived from statistical and historical data over a 20- or efficiency projects; the projects included the automation of 30-year planning horizon. Because of this method, many systems are operations, the rewinding and replacement of motors, the maxi- overdesigned, particularly in the size of storage, treatment, and dis- mization of the efficiency of pump systems, and an increase in tribution facilities. The overdesigning leads to greater energy con- storage capacity to allow pumps to be shut down during peak sumption than needed to provide for adequate demand, especially hours in booster stations. Design criteria affect not only pumping stations, • Creation of an operations procedures manual to serve as a refer- but also the size of pipes, the capacity of reservoirs, and the con- ence for daily operations for crews and CAGECE management struction of treatment facilities and booster stations. Moreover, water systems need to be able to expand to satisfy growths in Key results demand, but without sacrificing the efficient use of energy. • 88 gigawatt hours of energy saved over four years • 88,000 households newly connected to water, though water Objectives consumption remained constant The focus of the partnership between the alliance and CAGECE has • $2.5 million saved per year on an initial investment of $1.1 million been the development of a methodology that would provide • Standardization of operating procedures and increased reliability CAGECE with the tools and expertise to produce initiatives that of operations data result in savings and the rational use of energy and distributed water. • Ability to act in real time using system control devices As the work progressed, it became clear that the model would be • 220,000 tons of carbon dioxide emissions avoided per year Source: Barry (2007). ing resource allocations thus also affects my can afford to maintain the quality standards various end users. The cost of treatment is and that service providers can achieve the stan- influenced by the quality of the raw water and dards. Often, costly capital investment programs relevant national standards. are needed, and private sector participation may Customers should participate in setting be required. All costs should be checked against standards. This requires a process of consulta- international good practice. The economic tion and participation to ensure that the econo- regulator needs to set thresholds for operational A FIELD REFERENCE GUIDE | 263 servation practices can produce net water sav- ings for a city of 400,000 inhabitants of around Regulator 71 percent (figure 3.46). This is equivalent to about 61.8 × 106 cubic meters of water per year. A new city needs 25.8 × 106 cubic meters of water per year; this means that another city of about 1 million inhabitants may be served at the same cost. Similarly, if one assumes that an urban water Utility Customer supply and sewerage system consumes energy equal to 2.0 kilowatt-hours per cubic meter of supplied water, annual urban energy consump- Figure 3.45 The Stakeholder Dynamics and Accountability Triangle tion will decline from 175 gigawatt hours to Source: Author compilation (Khairy Al-Jamal). 52 gigawatt hours and follow the same trend depicted in figure 3.46. Annual energy savings efficiencies and incorporate these into price set- would total 123 gigawatt hours, which is suffi- ting and the review of prices. cient to supply a city of more than 120,000 The tariff structure should include incen- inhabitants with 1,000 kilowatt-hours per capi- tives to improve services and enhance efficien- ta per year. This electricity savings would also cy, conservation, equity, and social and environ- cut carbon dioxide emissions by 307,000 tons mental protection. Progressive block tariffs are per year. These benefits may increase more than appropriate demand management tools to threefold if water and wastewater services are achieve these targets. Poor households with low more energy intensive. This would be the case if consumption rates are within the first blocks, desalination plants are being used or if the de- which are usually underpriced and subsidized mand centers being served are at higher eleva- by other consumers who are wealthy and can tions than the water treatment facilities. afford services. The regulators must constantly As in other infrastructure sectors, attaining interact with customers and service providers economies of scale is important. For instance, to ensure that services comply with standards. the cost of producing freshwater at desalination Economic and Financial Aspects In general, the cost of water supply ranges from Supply US$0.20 to US$1.00 per cubic meter, while the Efficiency 29% cost of wastewater collection and treatment 42% ranges from US$0.50 to US$1.00 per cubic meter. Normally, wastewater services cost twice Conservation as much as water supply services. In 29% some cases, the cost of water may reach US$10 per cubic meter if it is sold by vendors. Because of these relatively high rates, leakage or cus- Figure 3.46 Savings in the Supply of Water tomer abuse leads to real economic costs. Source: Author compilation (Khairy Al-Jamal). Reducing losses from 50 percent to 15 percent Note: The figure shows the share of savings rising because of the reduc- tion in nonrevenue water from 50 percent to 15 percent and the efficiency and cutting demand in half through water con- gain of 50 percent resulting from conservation efforts. 264 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES plants ranges from US$3.00 at smaller capacity systems and land use plans, and sharing ac- plants (1,000 cubic meters per day) to a much cess roads. lower US$0.60 at larger facilities (30,000 cubic • Develop cross-compatible customer char- meters per day). The same benefits of scale ap- ters delineating the principles of service ply to other water facilities and wastewater and share customer complaint centers to treatment plants. Given clear cost savings, cities minimize costs. might consider building joint plants that serve • Consider cross-sector economic and sustain- more than one city area. ability gains related to cogeneration (elec- It is also recommended that construction tricity and seawater desalination, irrigation, works be synchronized among sectors and that and hydropower generation), performance joint facilities, such as common underground incentives, conservation, and efficiency. corridors, be used for water, wastewater, storm • Enable a balanced environment for public- water, electricity, and telecommunications in- private partnerships: all linked sectors need frastructure. to be feasible to encourage the private sec- tor to invest in the water sector, and those sectors need sufficient tariffs and incentives Conclusions for infrastructure services. • Encourage proper land use and the distri- To a large degree, all sectors regulate or modify bution of infrastructure facilities. natural resources, serve mostly the same cus- tomers, require sources of funding, deliver ser- vices managed by the public and private sectors, References and face the challenge of higher costs because of urban sprawl and the associated widely dis- Alliance to Save Energy. 2002. “Executive Summary: Watergy, Taking Advantage of Untapped Energy tributed infrastructure. A high level of synergy and Water Efficiency Opportunities in Municipal is therefore possible among sectors to boost Water Systems.” Alliance to Save Energy, Washing- overall efficiency. Urban policy makers and ton, DC. http://ase.org/uploaded_files/watergy/ planners might consider the following options, watergysummary.pdf. Barry, Judith A. 2007. “Watergy: Energy and Water depending on the situation: Efficiency in Municipal Water Supply and • Establish a common regulator for more Wastewater Treatment; Cost-Effective Savings of Water and Energy.” Handbook, Alliance to Save than one service, such as water, electricity, Energy, Washington, DC. http://www.watergy.net/ and telecommunications. resources/publications/watergy.pdf. • Develop similar policy principles for tariff Lau Yew Hoong. 2008. “Sustainable Water Resource structures, standards, and resource alloca- Management in Singapore.” Presentation at the United Nations Economic and Social Commission tion among sectors. for Asia and the Pacific’s “1st Regional Workshop • Establish feasible multifunction utilities. on the Development of Eco-Efficient Water • Enable investments by supporting incen- Infrastructure in Asia Pacific,” Seoul, November tives, policies, and the enforcement of laws 10–12. http://www.unescap.org/esd/water/ projects/eewi/workshop/1st/documents/ and legal systems to protect investments presentation/Session%204%20National%20 and improve revenue collection (that is, Experiences/21.%20Singapore-%20report.pdf. willingness to pay). The Living Home. 2008. “Domestic Water Use,” June • Increase the efficiency of construction man- 26. http://www.thelivinghome.ca/index. php?option=com_content&task=view&id=98&Ite agement by coordinating construction ac- mid=132. tivities, developing unified procurement A FIELD REFERENCE GUIDE | 265 Walski, Thomas M., Donald V. Chase, and Dragan A. World Bank. 2007. “East Asia Environment Monitor Savic. 2001. Water Distribution Modeling, 1st ed. 2007: Adapting to Climate Change.” Report 40772, Waterbury, CT: Haestad Press. Environmental Monitor Series, World Bank, Washington, DC. 266 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES SECTOR NOTE 3 Cities and Transport Overview Among other effects, these inputs influence land development patterns (that is, the distri- The reasons that cities should care about the bution of land uses and densities), the shape of transportation sector are myriad and complex. the city (that is, linear, circular, and semicircu- Transportation produces important benefits lar), and spatial and temporal travel patterns (principally mobility and accessibility) and (for example, radial, circumferential, and enables the economic and social activity that polycentric patterns and trip trends at different sustains urban life. At the same time, transpor- daily hours, weekdays, and seasons). tation consumes significant shares of land, The dependent inputs over which decision energy, time, and other resources and generates makers retain some degree of control (and the specific undesired outputs such as pollution focus of this chapter) include (1) policy, legisla- and accidents. This chapter addresses urban tion, and regulations; (2) institutions; (3) physi- transportation issues, particularly those in cal systems, technology, and spatial planning; rapidly growing cities that face challenges and (4) stakeholder dynamics; and (5) economic various investment options. and financial factors. All these inputs should be Transportation is not an end, but rather a considered in analyzing problems and potential means to one or multiple ends such as access to interventions. Urban transport interventions, jobs, markets, and other social or economic op- including those aimed at passengers or freight, portunities. For this reason, it is difficult to cre- involve one or more of the following: ate a single objective recognizing all relevant • Land use and travel demand: interventions constraints and trade-offs. An urban transpor- that influence travel behavior, including or- tation system requires many inputs (some more igins and destinations, purposes, modes, controllable than others) and produces numer- frequencies, and trip distances ous outputs (some desirable and others unde- sirable) that influence the inputs. These are de- • Infrastructure and services: interventions scribed and illustrated in figure 3.47. that enhance the supply or capacity of in- Independent inputs, which are mostly given or frastructure and services such as roads, not controlled, include demographic and eco- public transportation, traffic management, nomic conditions (that is, population, income, and other investments and types of industries), geographic constraints • Vehicle fleet and fuel supply: interventions (for example, rivers, lakes, coastlines, and that alter the number, composition, tech- mountains), climatic and atmospheric condi- nologies, or use of vehicles and fuels tions, and social norms and historical practices. A FIELD REFERENCE GUIDE | 267 Independent inputs (mostly given or not controlled): • Geographic constraints • Demographic and economic conditions • Climatic and atmospheric conditions • Social norms and historical practices Dependent inputs (controlled to Desired outputs some degree): Transport interventions: (objectives to be maximized): 1. Policy, legislation, and A. Land uses and • Mobility regulations travel demand • Accessibility 2. Institutions B. Infrastructure and • Quality 3. Physical systems, technology, services • Efficiency and spatial planning C. Vehicle fleet and • Safety 4. Stakeholders fuel supply • Affordability 5. Economic and financial aspects Undesired outputs (to be minimized): • Implementation time and life-cycle costs • Accidents and incidents • Global and local emissions • Impact on land, water, and energy consumption Figure 3.47 The Input-Output Framework of Transportation Interventions Source: Author compilation (Georges Darido). The desired outputs noted in table 3.17 may Sustainable transport interventions should be be used to define project development objec- linked to a continuous and comprehensive plan- tives and program indicators for monitoring ning process that involves incremental implemen- and evaluation.1 Reducing undesired outputs or tation or a building block approach. The selection outcomes is important in the effort to ensure and sequencing of interventions should depend sustainable transportation interventions. For on enabling conditions and the implementation example, international experience suggests that of complementary measures. In other words, significant shares of private vehicles and low maximizing mobility and accessibility may be urban densities boost fuel consumption (that is, achieved only if reasonable levels of safety, eco- energy per capita), which increases travel ex- nomic viability, and financial sustainability have penditures, infrastructure investment, and the been ensured. The World Bank Transport Strat- emissions of local pollutants (mono-nitrogen egy emphasizes that clean, safe, and affordable oxides, sulfur oxides, carbon monoxide, and infrastructure and services represent the main particulate matter) and global pollutants (car- aims of urban transportation users. This chapter bon dioxide [CO2] and other greenhouse gases). describes sustainable transport interventions Table 3.18 provides sample transportation sec- under each of the five controllable inputs listed tor outcomes in several cities around the world. (see figure 3.47), distinguishing between enabling The spatial, physical, and technological factors conditions (stage I) and additional measures contributing to these outcomes are described in (stage II) that are substitutes or complementary subsequent sections. actions. 268 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 3.17 The Typical Objectives or Desired Outputs of Transportation Interventions OBJECTIVE DESCRIPTION EXAMPLES OF INDICATORS Mobility Amount and type of travel (both passenger and freight) Number of trips by mode, passenger, or ton-kilometers; change in travel times or delivery Accessibility Connectivity between desired origins and destinations; Number of jobs within a one-hour radius; retail area ability to reach desired goods, services, and activities within a 10-minute walk of a station Quality Quality of travel between origin and destination Reliability (for example, travel time variability and failures), comfort, convenience, and equity Efficiency How resources are used and how the environment is • Emissions of NOx, SOx, CO, PM, or CO2 impacted, including: • Quantity of fuel consumed per unit of mobility or • Local and global emissions economic welfare created • Energy consumption and efficiency • Amount of noise, runoff, sediments, dust, and other • Impact on land and water impacts on health and welfare Safety The safety and security of the transport system Minimizing intentional and unintentional incidents, fatalities, injuries, property damage Affordability Economic and financial sustainability from various • Travel expenditure in relation to income perspectives, including • Implementation time and capital costs • Users (by income group) • Operating, maintenance, and disposal costs • Government and general public • Other social and economic impacts of the investment • Operators and others (for example, poverty reduction) Source: Author compilation (Georges Darido). Note: NOx, SOx, CO, PM = mono-nitrogen oxide, sulfur oxide, carbon monoxide, and particulate matter, respectively. Table 3.18 Urban Transportation Outcomes in Selected Cities POPULATION WALKING, CYCLING, JOURNEY COST, ANNUAL TRAVEL, ENERGY, MEGAJOULE CITY DENSITY PER HECTARE TRANSIT, % % OF GDP KILOMETER PER CAPITA PER CAPITA Houston, United States 9 5 14.1 25,600 86,000 Melbourne, Australia 14 26 — 13,1 00 — Sydney, Australia 19 25 11.0 — 30,000 Paris, France 48 56 6.7 7,250 1 5,500 Munich, Germany 56 60 5.8 8,850 1 7,500 London, England 59 51 7. 1 — 1 4,500 Tokyo, Japan 88 68 5.0 9,900 1 1 ,500 Singapore 94 48 — 7,850 — Hong Kong, China 320 82 5.0 5,000 6,500 Source: Mobility in Cities Database (2001). Note: — = not available. The Policy, Legislative, and Sustainable transportation policies at the na- Regulatory Framework tional level require institutions, processes, and fi- nancial mechanisms that prioritize public trans- Urban transportation is shaped directly or indi- portation and nonmotorized transportation, while rectly by policies, legislation, and regulations at discouraging private vehicle use. A lack of any of the national, subnational (regional or metropoli- these elements may undermine a policy’s impact. tan), and local levels. Table 3.19 provides a sum- For example, the Chinese government adopted mary of typical considerations at each policy policies to prioritize public transportation and level. It also distinguishes the enabling condi- ensure people-oriented projects, but local im- tions for more advanced policy measures that pacts have been shaped by other factors, includ- build on them. ing capacity building and financial mechanisms. A FIELD REFERENCE GUIDE | 269 Table 3.19 Policies, Legislation, and Regulations Affecting the Transport Sector LEVEL STAGE I: ENABLING CONDITIONS STAGE II: ADDITIONAL MEASURES National Vehicle and fuel standards and taxes Sustainable transport policies Roadway design standards Energy policies and targets Environmental protection and management laws Universal design and participatory rules Capacity building and research Regional/metropolitan Urban expansion and land management policies Integrated transport improvement and land use plans Public transport provision and regulation Financial mechanisms (road pricing) Vehicular restrictions Local Zoning and taxation Road space allocation Traffic and parking regulations Financial mechanisms (value capture) Source: Author compilation (Georges Darido). Funding for investments in transportation and, Many countries mandate road, vehicle, and occasionally, operation and maintenance may be fuel standards to promote safety, efficiency, and financed by vehicle and fuel taxes, bonds, and quality. The United States, for example, requires government-backed loans. The funding of trans- automobile manufacturers to meet fuel efficien- portation infrastructure typically requires par- cy targets under the law on corporate average ticipation by national or subnational govern- fuel efficiency passed in 1975, but standards in ments, while local governments typically provide many Asian and European countries are strict- operations and maintenance with or without er, as illustrated in figure 3.48. Several countries private sector participation. also require that domestically sourced ethanol A fuel tax is arguably one of the most important be blended into fuels, but the efficiency of the and effective fiscal measures because it directly lev- ethanol production process greatly depends on ies users for consumption, but it is often politically the source of the fuel. Corn is the main fuel difficult to pass or sustain. Fuel tax revenue is usu- source in the United States. However, corn is ally collected by national governments and then inferior to sugar cane—a crop used in a success- redistributed to fund roadway and transport in- ful ethanol program in Brazil—because corn is a vestments. Most oil-importing countries impose major food crop that requires more resources to a tax on transport fuels, but policies vary widely. produce. In the United States, gasoline is taxed roughly Other considerations at the national level US$0.12 per liter, but it is taxed several times include environmental protection laws, energy more in European countries. The additional rev- policies, and participatory regulations. Environ- enue collected in Europe has funded an arguably mental laws often require a detailed review more sustainable mix of high-quality transport process to identify and mitigate project impacts infrastructure and services, while encouraging on air, soil, water, and the environment (that is, less dependence on automobiles. Opponents ar- impacts such as noise or visual intrusion). These gue that a fuel tax is socially and economically rules influence transport policies or projects at regressive because middle- and lower-income the subnational level. For example, air quality groups spend a greater share of their total in- regulations linked to federal transport funding comes on fuel. For these and other reasons, na- in the United States have driven cities and states tional governments commonly adopt other taxes to implement vehicle inspection and mainte- to raise revenue, including vehicle, registration, nance programs that mandate emissions and and licensing fees. A carbon tax is analogous to a safety standards for motor vehicles. National fuel tax because greenhouse gas emissions are di- policies also include targets for energy efficiency rectly related to fuel consumption. or independence. China, for example, has tar- 270 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES geted a 20 percent reduction in energy intensity 10 United States in all sectors by 2020. In transport, this will re- litres per 100 kilometers 9 quire a reduction in consumed energy per unit 8 Canada of GDP (or other measure). Meeting this target California will require changes in travel behavior, project 7 Australia design, and implemented technologies. In this China 6 context, national research and development 5 Japan efforts should focus not only on evaluating and European Union testing advanced technologies, but also on train- 4 2002 2005 2006 2008 2010 2012 2014 2016 ing and educating transportation professionals. In addition, national governments have also Figure 3.48 Average New Vehicle Fuel Economy Standards addressed equity concerns through rules on Source: IEA (2007). (1) universal designs to accommodate all users, including people with disabilities and special level. Regional transportation investment pro- needs (for example, the Americans with Dis- grams that support sprawl or physical decen- abilities Act in the United States), and (2) public tralization in dense cities may have counter- participation and transparency reviews that productive effects, such as encouraging more give stakeholders ample opportunities to influ- vehicular traffic and congestion. The integra- ence planning (such as the National Environ- tion of transport and land development plan- mental Policy Act in the United States and ning should consider macrolevel urban spatial the subsequent rules requiring environmental and land use patterns, site plans, transporta- impact statements). tion network characteristics, travel patterns, A fundamental challenge to achieving equita- user costs, and environmental impacts. In the ble and efficient transportation is the need to United States, integrated transport, air quality, charge users the full, long-run marginal costs of and land use plans for metropolitan and state- travel and parking, including externalities (that is, wide transportation programs are updated at the undesired outputs in figure 3.47). Many least once every four years. There is a strong innovative time and price instruments, support- consensus that compact cities with a single or ed by relevant technologies, have been tested in only a few large, dominant centers or central cities in the last few years. These instruments business districts are more well suited for may raise additional revenue for public transpor- traditional fixed-route, fixed-schedule public tation and alternative investments. For example, transportation systems. Lower-density homoge- London, Singapore, and Stockholm have imple- neous cities with many dispersed, weak centers mented congestion and road pricing schemes are more well served by individual modes. that require drivers to pay tolls if they enter There is less agreement on the specific instru- defined central areas during certain hours of the ments that may be used to influence conditions, day. In 2008, Milan, Italy, went a step further but they may include (1) road pricing, (2) the and applied a polluter pays principle in the city incremental taxation of the land and property center by charging vehicles for their expected benefiting from transportation investments, emissions. Advanced parking management, and (3) land development regulations on den- which includes centralized control and varied sity requirements (floor area ratios), lot sizes, rates based on hour of the day, is another exam- building setbacks, traffic rules, parking, and ple of an innovative revenue tool. zoning. Urban expansion and land management poli- Metropolitan and local governments are typi- cies are basic considerations at the metropolitan cally responsible for public transportation ser- A FIELD REFERENCE GUIDE | 271 vices and planning, which should be linked to sented later in this note in box 3.17). In many demand, available resources, and urban charac- large cities, transportation demand may justify teristics. Cities typically establish policy-based reallocating one or more lanes to buses. Yet, local criteria to define transportation network cover- authorities often find this difficult. Unfortunately, age, the distance between stops, and service fre- because of public pressure, motor vehicle quencies. Network coverage is often defined as mobility is often emphasized at the expense of the share of the population within walking or nonmotorized transportation and public trans- bicycling distance of a public transportation portation. stop. In Bogotá, Colombia, for example, the mas- ter plan established that the share of residents within 500 meters of a station or stop under the Institutional Context Transmilenio bus rapid transit (BRT) system should reach 50 percent in phase 1 and 80 per- Efficient and stable institutions are an essential cent in phase 2. Along with service decisions, part of an urban transportation system. These in- many cities also enact policies regulating public stitutions may be characterized by their func- transportation fares and subsidies. tions and scope, including jurisdictions and The allocation of existing and planned road modes. The institutional scope may vary from a space among pedestrians, transport (motorized, special city district (for example, the central nonmotorized, and public), and parked vehicles business district), a major corridor, or a vast represents one of the most potent, low-cost ways multijurisdictional region. Institutional func- that local governments may use to promote equi- tions encompass planning, including strategic, table transportation management (World Bank policy, investment, and financial planning; im- 2008). The goals of allocating street space may plementation and service provision, including be diverse, such as protecting walkers and cy- operations and maintenance by public and pri- clists, ensuring the safe movement of people, and vate entities; and management and regulation. facilitating public transportation via transit-only In table 3.20, good practices are presented for lanes. One option for reallocation is constructing two different institutional scenarios: a single dedicated lanes for high-performance BRT on jurisdiction with unintegrated modes and mul- arterial roads (for example, the BRT system pre- tiple jurisdictions with integrated modes. Table 3.20 Institutional Functions and Jurisdictions in Transportation UNINTEGRATED STAGE I: (ONE JURISDICTION, STAGE II: (MULTIPLE JURISDICTIONS, FUNCTION: EACH MODE SEPARATELY) INTEGRATED MODES) Planning and financing • Roadway investment and maintenance plans • Coordinated metropolitan planning and decision making • Public transportation network planning Service and accessibility standards • Pedestrian and bicycle access and facilities Prioritizing and budgeting Financial mechanisms Implementation and • Physical integration (intermodal terminals) • Integrated transport strategy (physical, operations, fare service provision • Electronic fare systems with prepayment policy, land use, emissions) • Private sector participation Joint development Concessions and management contracts Management and • Separate management of • Centralized control and multimodal optimization with regulation Road access Real-time information systems Regulation of public transportation and taxis Signal priority and coordination Traffic and parking management Freight Source: Author compilation (Georges Darido). 272 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Difficult institutional issues often include BOX 3.13 planning, physical and operational integration, public transportation reform, and fare policies The Four Pillars of Sustainable Urban Transportation (including subsidies). At a basic level, city trans- Institutions portation institutions create forums for discus- Before financing major urban transportation projects, decision makers sion and coordination among road planners, should attempt to put in place the basic elements to ensure the long-term economic planners, public transportation opera- sustainability of the sector. Specifically, policy makers should incorporate a tors, traffic management officials, and police. In four-point agenda into any urban transportation strategy: China, many cities establish leading groups 1. Create a regional transportation coordination commission in charge of chaired by city officials. At an advanced level, coordinating policies among federal, state, and municipal governments, giving highest priority to major urban transportation investments in the transportation institutions may represent forums metropolitan region and promoting modal integration. This will help im- for joint decision making and priority setting prove the sector’s economic efficiency and long-term sustainability. across multiple jurisdictions and multiple 2. Adopt a strategy for integrated land use, urban transportation, and air modes. Some good examples of this include quality that provides a framework for community leaders and decision London (Transport for London), Madrid (Con- makers to evaluate future urban transportation investments and poli- sorcio de Madrid), Paris (STIF, the organizing cies. authority for public transport in Ile-de-France), 3. Enact into law formal financing mechanisms to ensure that the long-run Singapore (Land Transport Authority), and variable costs of urban transportation systems are covered by operating Vancouver (TransLink). Good examples also and nonoperating revenues and by appropriate user charges. exist in emerging countries. Box 3.13 summa- 4. Promote private sector participation in the operation, maintenance, and rizes the essential pillars of sustainable trans- construction of urban transportation systems to lessen the financial bur- den on government (through, for example, concessions or management portation institutions based on international contracts). experience in Latin America and other regions. Ideally, there should be one metropolitan au- Source: Adapted from Rebelo (1996). thority overseeing all transportation issues and modes, particularly in regions with multiple ju- risdictions. This authority should plan multiple exist. The first extreme tends toward ineffi- modes, set priorities, and coordinate decisions cient operations and uneconomic fares both of on investments, taking into account land and which map into high subsidies. It may also environmental plans and the concerns of the produce poor services, especially when the subsidy mechanism fails and operators are public, civil society, and private sectors. The au- starved for funds. The other extreme may pro- thority should oversee strategic policies and the duce good services at zero public expenditure, management of modes, including parking, taxis, but more often provides poor service with public transportation, highways, and arterial high accident and pollution costs. When this roads. The regulation and reform of public regulatory set-up is matched by low fares con- transportation are challenging because they strained by regulation or unfettered competi- tion, service levels and quality fall and exter- must balance the roles of the public and private nalities rise. (World Bank 2008: 8). sectors and respond to local conditions. An ex- cerpt from a recent World Bank operational guide illustrates the challenges: Physical Systems, Technology, Institutional approaches to providing public and Spatial Planning transport services range from a single publicly owned monopoly operator at one extreme, to numerous weakly regulated or unregulated The design of systems, technologies, and spatial small-scale, privately owned providers at the plans should be driven by current or near-term other. In some cities a range of approaches co- transportation demand and a longer-term A FIELD REFERENCE GUIDE | 273 credible and transparent transportation plan. The International experience suggests that sus- transportation plan is the product of a continu- tainable transportation investment strategies ous, comprehensive, and inclusive process. Spa- need to prioritize public transportation and other tial planning should consider future land uses essential modes, encourage nonmotorized trips, and existing travel and freight demand. Physical ensure that users of private automobiles inter- systems and technologies include the supply of nalize the costs they impose, and include urban infrastructure and services for passengers and plans and incentives to support compact cities. freight. Technologies also include the fuels, ve- The strategies should aim to achieve realistic hicles, and equipment used to deliver infrastruc- results at different points in time: (1) in the short ture and services. Table 3.21 provides a frame- term, by improving the fuel efficiency of exist- work for these types of transportation ing vehicle fleets; (2) in the medium term, by interventions. Table 3.22 summarizes physical, facilitating a shift away from private car use; technological, and spatial interventions at basic and (3) continuously, by supporting the devel- and advanced levels. opment of compact cities built around public Table 3.21 The Framework of Transportation Interventions FOCUS SPATIAL PLANNING PHYSICAL SYSTEMS TECHNOLOGIES Land uses and Macro or master planning Microdesign (for example, transit- Travel demand management travel demand oriented development) Infrastructure Location-efficient planning Mobility and freight management Intelligent transportation systems and services (roads, public transportation, nonmotorized transport, traffic management, other facilities) Vehicle fleet and Fleet management and Standards, inspection, and Alternative fuels and advanced fuel supply efficiency programs maintenance programs technologies Source: Author compilation (Georges Darido). Table 3.22 Basic and Advanced Transport Interventions FOCUS STAGE I: ENABLING CONDITIONS AND MEASURES STAGE II: ADDITIONAL MEASURES Land uses and • Microdesign: • Microdesign: travel demand Urban densities Mixed land uses Road patterns and design Building design and orientation Intersections and crossings Transit-oriented development (Box 3.14). Basic pedestrian and bicycle facilities • Macroplans: Parking and access management Development along high-quality public transportation • Macro plans: corridors Origin-destination surveys and High-density, mixed-use nodes around public calibrated transport model transportation facilities City structure and development pattern Reserving rights-of-way for future corridors Energy use and emissions Travel demand management (boxes 3.15 and 3.16) Infrastructure and • Road network development • Integrated public transportation and traffic management services • Public transport network • Traffic management, including road • BRT (box 3.17) safety measures • Intelligent transport systems • Freight management Vehicle fleet and • Cleaner fuels (low-sulfur diesel) • Alternative fuels fuel supply • Inspection and maintenance programs • Advanced vehicle technologies Source: Author compilation (Georges Darido). 274 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES transportation corridors that reduce demand. ing public transportation demand, reducing in- There are four outcomes of sustainable trans- efficient land consumption (sprawl), and creat- portation interventions: managed demand, en- ing nonmotorized transportation opportunities. hanced supplies, shifted modes, and improved Other macrolevel planning issues include some performance. The following sections describe of the following. specific interventions and expected outcomes. High-density, mixed uses around public trans- portation: Public transportation traditionally Land uses and travel demand serves the city center; major activity centers; The transportation plan should recognize the ef- and, particularly, work-related travel. The loca- fects of transportation interventions on future tions of activity centers and job sites affect the land development and travel demand.2 The in- design and effectiveness of public transporta- teraction between transportation supplies and tion. Traditionally, jobs are concentrated in the land use is a complex, two-way relationship. city center, but cheaper land or perverse incen- Existing land uses and developments are served tives may attract development and jobs to urban by transportation infrastructure and services, peripheries in which there is little or no infra- which, in turn, induce certain types of land de- structure. Development in the urban periphery velopment and travel patterns. reduces economies of scale for public transpor- Spatial planning is one of the most important tation, making operation without substantial factors influencing the demand, mode choice, and subsidies more difficult. Dense development financing of urban transportation investments. around public transportation is critical. In turn, sustainable development may be the High-quality public transportation corridors: most important goal of transport investments, Focusing development along high-capacity, particularly public transportation. Land devel- high-quality public transportation corridors is opment planning should include two comple- important, particularly to prevent unplanned mentary approaches: a macro- or top-down development elsewhere. Such a strategy may be approach and a micro- or bottom-up approach. pursued in cities in China, but it has not yet The macroapproach entails viewing the city or been practiced effectively except in Hong Kong, region “from 10,000 meters” and with a time China. In Singapore and Stockholm, urban rail horizon of more than a decade. Strategic plan- and mass transit have been used effectively to ning and alternative analysis are initial steps in supply high-quality public transportation. BRT the macroapproach that allow the selection of systems represent another innovative and cost- appropriate modes and a city’s alignment. The effective public transportation approach that microapproach is more focused geographically has been developed and is now widely applied (that is, on blocks or corridors) and anthropo- in Latin America. Road infrastructure also plays genically. It also has a shorter time horizon (less a critical role. For example, the ring road model than 10 years) and requires more detailed pre- in Chinese cities induces greater private vehicle liminary designs. use and leads to dispersed development that is At the macrolevel, the major determinants of difficult to serve through public transportation. travel demand include the distribution and char- City structure and development patterns: Ra- acter of land use. Transportation investments dial city development and structures most ef- may positively influence the distribution and fectively facilitate high-capacity rail and bus character of land use by creating accessible and systems provided major job and activity sites visible development nodes. For example, prop- are located in urban centers or along arteries erly located public transportation stations may (radial lines from the center). Curitiba, Brazil, is be focal points for development, thus increas- a good example of a radial, transit-oriented city A FIELD REFERENCE GUIDE | 275 Figure 3.49 The Structure of the Integrated Public Transportation Network in Curitiba, Brazil Source: Urbanização de Curitiba S.A. http://www.urbs.curitiba.pr.gov. br/PORTAL/rit/index.php?pagina=terminais. in the developing world with a high-capacity BRT system serving five high-density corridors (figure 3.49). These arteries were planned and rights-of-way were reserved decades before they were fully developed. This degree of urban foresight required a long-term vision and insti- Hong Kong, China; cities in the Republic of tutions that had sufficient capacity and political Korea; and Singapore. However, weak land-use independence. Ring road or circumferential de- policies combined with large lots, significant velopment places fewer constraints on land de- private vehicle use, and low fuel prices favor ur- velopment, but encourages dispersed and inef- ban sprawl and decentralization. In many cities ficient land consumption. Urban development in North America in the second half of the 20th based on satellite cities is also less than ideal. It century, these factors decreased the effective- takes many years for a satellite city to become ness of public transportation services and cre- self-sustaining, and costly new connections to ated a vicious cycle that reinforced dependence the city center and other poles are needed. on automobiles. Land management: Setting aside large lots in Financing mechanisms: It is important to be primary and secondary markets for high-rise able to capture and transfer revenue derived developments is important. Migration and ur- from infrastructure efficiently through, for ex- banization trends in East Asian cities should be ample, a value-based property tax. This ap- directed toward radial corridors rather than proach was institutionalized in Hong Kong, ring road development. Cities that offer good China; Singapore; and Tokyo. In China, a sig- examples of effective land management include nificant share of city revenues comes from land 276 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES sales or long-term leases, which provide incen- tives to expand city boundaries and oversupply land, thereby exacerbating sprawl. Tools and resources for macroplanning include household travel surveys on origins and destina- tions and transportation models that use survey information for calibration. Microapproaches are characterized by a nar- rower geographic and human focus. They also have a shorter time horizon (less than 10 years) than strategic planning and require more de- tailed preliminary designs. Microdesign is Figure 3.50 A Locality in the State of Colorado largely analogous to the principles of transit- Source: Digital Globe, Google Earth. oriented design or transit-oriented develop- ment (box 3.14). Thoughtful design is critical. Microdesign may be summarized as follows: Road patterns and design: Traffic volumes on Land use distribution (space and time): All local streets influence the quality of life in resi- functions in large cities cannot be centralized, dential areas. Road designs influence driving and the relative locations of developments and behavior, traffic speeds, and safety. Certain road transportation links determine travel demand patterns are characterized by low accessibility and mode choice. Mixed land uses are impor- and connectivity (for example, dead-end streets tant because they influence how far one must and cul-de-sacs). Speed limits should be con- travel to visit a store or reach work or school. servative and enforced rigorously in dense Convenient foot and bicycle access (less than 10 residential and commercial areas using signs, minutes) should be provided from residential police, cameras, and speed humps. housing to shops, services, and recreation, com- Intersections and crossings: Local access plemented by public transportation facilities roads wider than 5 meters, equivalent to approx- for work trips. imately two lanes, tend to discourage crossing. Urban densities: Population densities and job Intersections with more than one lane in each locations affect transit and land use plans, but are direction may require traffic channelization not the only considerations. Lower urban densi- (that is, sidewalks, curbs, pedestrian islands, ties tend to boost car use, thereby negatively and markings) and signals. Most congestion on affecting multimodal sectoral plans. However, arterials in dense areas is caused by limited high densities without adequate planning and throughput at intersections rather than the services may impede the quality of the lives of dimensions of the intermediary road sections. residents. Figure 3.50 shows a sprawled residen- Road width may often be reduced or limited to tial development typical in developed countries. two or three lanes in each direction and include Design and orientation of buildings: Large channelization and modal separation, while street offsets, parking lots, fences, and green- minimally affecting travel times. belts around buildings became much more Pedestrian and bicycle environment: Encour- common in the second half of the 20th century, aging walking and bicycling by prioritizing non- owing to concerns about safety, security, noise, motorized over motorized vehicle access (and and pollution. However, these elements may parking) is a key objective for the urban environ- discourage walking and bicycling because they ment (figures 3.51 and 3.52). It is also important impose barriers and make trips more circuitous. to provide pathways or greenways in city blocks, A FIELD REFERENCE GUIDE | 277 BOX 3.14 Transit-Oriented Development Urban Land Pooling and Land Readjustment Transit-oriented development is characterized by This is an innovative technique for managing and financing urban • Proximity to and a functional relationship with transit stations land development. Local and central governments are undertaking and terminals and service provision by high-quality public trans- such projects to assemble and convert rural land parcels in selected portation (BRT systems, underground trains, and so on) urban-fringe areas into planned layouts of roads, public utility lines, • Compact, mixed use buildings and infrastructure that, because of public open spaces, and serviced building plots. Some of the plots their design, encourage walking, cycling, and transit use by resi- are sold for cost recovery and the other plots are distributed to the dents, employees, shoppers, and visitors landowners in exchange for their rural land parcels. To be viable, the The ingredients of successful transit-oriented development include values of urban plots distributed to landowners after subdivision strategic (macro-) and design (micro-) elements such as need to be significantly higher than before the project begins. • A strong development climate In a typical project, the authorized land pooling and readjust- • Master plans for multiuse, high-intensity developments supported Source: ment agency selects Fraker and Wursterand designates the urban-fringe area to be de- (2009). Note: The eco-block concept is illustrated using a location in China. by implementation plans veloped, and identifies the land parcels and owners to be included. A draft scheme is then prepared to plan, define, and explain the The ingredients also include transportation investments that promote Research shows that the impacts of transit-oriented development project, and to demonstrate its financial viability. the following: are realized in the long term and depend on the quality of related Majority landowner microdesigns and the rate of an for support each area’s proposed project demographic is a key and economic • Easy and direct pedestrian, bicycle, and public transportation access requirement growth. for the successful application of the technique, and is (as pictured in the eco-block example in the figure) therefore an important consideration in selecting projects sites. Al- • Good signage and a pleasant environment to attract substantial • Research by Lund, Cervero, and Willson (2004) on residential and pedestrian flows though the emphasis commercial is oncities sites in major landowner agreement of California and factors shows that support for relat- • Significant regional accessibility to major job and activity centers each proposed project, the land pooling and readjustment ed to transit-oriented development, particularly proximity to urban agency • Short, direct connections between transportation modes and also andhas to be able commuter and willing rail stations, to use increase the government ridership power on rail and buses by of as transit facilities compulsory purchase much as a factor against of three any relative to four minority to holdout landowners in control sites. • Bicycle lanes and parking facilities that feed stations the and project designated • Cervero Day (2008a, if this becomes area,2008b) necessary. have surveyed households relo- • Attractive facilities that are well integrated with the surroundings cating to suburban transit-oriented development sites and non- (public spaces, street furniture, and so on) transit-oriented development sites in Beijing and Shanghai, China • Safe and secure designs, including adequate lighting to assess the impacts on travel behavior. • Effective parking management around stations The latter sites showed significant positive impacts: • Environment-friendly technology options, such as shared fleets of alternative (electric) vehicles located in neighborhoods • Increased public transportation ridership • Improved access to regional jobs (as measured by employment locations within a radius equivalent to one hour in travel time) • Reduced commuter times per household worker Source: Zimmerman (2008). Note: The photo on the left shows a high-quality public transportation corridor between Arlington, Virginia, and Washington, D.C., with an underground metropolitan train (the orange line and M) and a feeder bus system. The corridor exhibits many elements of good macrolevel planning and transit-oriented development, including higher densities around high-quality public transportation (the underground) in an otherwise car-oriented environment. After 20 years of mixed use development around stations (such as Clarendon, pictured on the right), the corridor has become a good example of urban form. 278 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES major complexes that are safe and shaded, and Spatial or land use planning should strive to pervious surfaces that absorb runoff water. optimize resources by reducing unnecessary Parking and access management: Surface, motorized travel and encouraging trips on the underground, and on-street parking in cities is most appropriate modes and routes at the most limited because of the high cost of land and appropriate times. However, land use planning construction. Where available, parking facili- alone has a limited impact on the use of private ties should target multiple uses—for example, vehicles (Wright 2004). Travel demand manage- office parking on weekdays, event parking at ment—preferably linked to public transporta- night, and fair or market parking on weekends— tion—and other major investments in infrastruc- and be designed to minimize walking distances ture and services are needed. Common, related and impervious surfaces. activities include adequately pricing roads, restricting vehicle use by time or location (for example, car-free Sundays), establishing high- occupancy or priority lanes, encouraging ride- sharing and carpooling, and promoting tele- commuting and flextime. Box 3.15 describes innovative travel demand management and emissions approaches adopted in Milan’s Eco- Pass project. Box 3.16 describes Beijing’s travel demand management and public transportation approaches linked to its tremendous urban Figure 3.51 A Pedestrian-Friendly Street in Curitiba, growth and the 2008 Olympics. Brazil Source: Institute for Research and Urban Planning of Curitiba. Figure 3.52 An Example of Microdesign and Walking Isochrones Source: Colin Buchanan and Partners (2001). A FIELD REFERENCE GUIDE | 279 BOX 3.15 Emission-Based Road Pricing in Milan, Italy In January 2008, Milan introduced EcoPass, a program designed to • Traffic has been reduced 19 percent during the enforcement pe- restrict access to the city center during certain hours of the day by riod and 8 percent overall. charging fees to drivers of the most heavily polluting vehicles. This is • The road speed of public transportation has risen by 11 percent, the first urban environmental policy in the region whereby the trans- and public transportation ridership has increased by 10 percent. portation sector has applied the European Union’s polluter pays • CO2 emissions have fallen by 12 percent, and the incidence of principle. Significant results have already been achieved through this particulate matter by 19 percent. innovative scheme: Source: Comune di Milano (2009). BOX 3.16 Beijing: Travel Demand Management and the Legacy of the Olympic Games Transportation operations during Beijing’s 2008 Olympics required will quickly overwhelm Beijing’s new infrastructure. Beijing’s popula- not only massive infrastructure investments, but also a new paradigm tion of 18 million is growing by roughly a half million a year. Car own- for travel demand management and unprecedented interagency ership is not merely a symbol of status, but increasingly a necessity. coordination and public cooperation. According to transportation The number of motor vehicles is growing by over 10 percent per officials, Beijing has spent over Y 100 billion (approximately US$14 year; the corresponding rate is over 20 percent for private cars. In- billion) in the past five years on transportation infrastructure and ternational comparisons are few, but instructive. London, New York, services. Temporary travel demand management measures have in- Paris, and Tokyo experienced rapid growth in car use and ownership cluded prohibiting half of Beijing’s private vehicles from driving on in the 20th century, but motorization in Beijing appears to be pro- city roads on alternating days based on the last digit of license plates gressing more rapidly than in any time in history. In Tokyo, 20 years (the 50 percent restriction). One-third of the capital’s more than (1962 to 1982) elapsed before the number of motor vehicles in- 3 million vehicles were removed from roads, though the city ex- creased from 1 million to 3 million, but in Beijing, the same increase empted government, emergency, public transportation, taxi, and took place in only 10 years (1997 to 2007). New cars in Beijing have Olympics-related vehicles from the restriction. The movement of never been more efficient, but travel demand will overwhelm road freight vehicles was also restricted, and centers for the distribution capacity despite the rapid and ongoing expansion of the network. of goods and tolls on inbound routes were implemented to reduce Public opinion surveys undertaken since the Olympics have traffic in the city center. The government also suspended activities shown that Beijing residents are now more aware of sustainable at hundreds of factories and construction sites in and around Beijing. transportation and air quality issues. While about 70 percent of As a result, the city’s notoriously poor air quality in August and Sep- residents are willing to live with certain car restrictions to sustain tember 2008 was the best it had been in over 10 years. reductions in poor air quality and congestion, most car owners op- Congestion, notoriously severe in Beijing, was significantly reduced pose the scope of the restrictions on vehicle use. Car owners remain despite the Olympics-related traffic and the more than 260 kilometers a minority, but this may change because more than 1,000 vehicles of lanes on arterials and ring roads reserved for Olympics, press, and are being added to Beijing’s roads every day. Moreover, officials have government vehicles. According to transportation officials, the share grappled with questions about which measures should be kept and of commuters riding public transportation rose by 35 to 45 percent to what degree. The Olympics experiment has represented a unique largely because of restrictions on car use, the expansion of the pub- opportunity to implement change, but it has also heightened public lic transportation network, and a recent reduction in bus and sub- expectations. way fares. In the previous year, the city had opened three subway After the Olympics, the government announced that private lines, a light rail line from downtown to the airport, new bus lines, cars would be allowed in the city, which includes the area within and a new Beijing-Tianjin intercity express railway. Beijing’s transit Beijing’s Fifth Ring Road, on four out of five weekdays (a 20 percent network now includes more than 200 kilometers of rail and 45 kilo- restriction). As before, the last digit of license plates determines the meters of rapid bus lines. The improvements have diversified the restricted day. This policy was initiated in October 2008 for a six- commuting options for millions of residents. month trial period. Similar one-day restrictions have been in place However, more investment is needed. Returning to a pre- for many years in megacities such as São Paulo, Brazil, and Mexico Olympics transportation paradigm and ignoring long-term demand City. Evidence suggests that these restrictions become less effective 280 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.16 (continued) over time because the unused road capacity is eventually taken up by other vehicles. More important, some people find ways to cir- cumvent the rules. For example, some residents buy a cheap, older vehicle that may be legally driven on certain days. For mitigation of such noncompliance, the approaches are often combined with ve- hicle inspection, maintenance, and scrappage programs. Looking forward, Beijing transportation officials are supporting a shift from investment scale-up, whereby infrastructure investment consumes a large share of GDP, to optimized operations. New infra- structure and technologies such as intelligent transportation sys- tems will remain important, but effective planning and demand management will be sought to ensure long-term success. Among the most important proposed initiatives are the following: • Harmonizing land use and transportation, including efficiently de- signing and locating activity centers and transit-oriented devel- Source: Photo by Sam Zimmerman. opments, improving accessibility for pedestrians and bicyclists, Note: The photo shows Beijing’s Third Ring Road at peak rush hour before the 2008 Olympics. and adopting other policies and strategies • Setting appropriate prices and tolls, including road-use fees, ve- hicle registration, fuel, parking, and public transportation (to en- continue to be workhorse vehicles—and investments in mea- courage improved travel behavior and financial sustainability) sures to support buses are usually cost-effective • Efficiently allocating resources among modes and along integrated • Adopting the latest, proven technologies for vehicles and fuels corridors—in Beijing, as in many of the largest cities, buses will • Improving the institutional system and planning processes Infrastructure and services ample, radial or circumferential corridors that Effective spatial planning considers the location may form a network or a grid), demand normally of infrastructure and services relative to demand has a wider scope ( for example, block, district, city, and other transport supplies in the region. Loca- and region, as well as time). The time dimension tion efficiency, or transport-efficient develop- is also important because some interventions re- ment, aims to optimize the location of transpor- quire many years and may be implemented in- tation investments and new major activity crementally. Urban planners normally strive to centers by maximizing benefits and minimizing achieve a spatially balanced flow of passengers environmental externalities such as energy use (encouraging trips in both directions on a road or (Zegras, Chen, and Grutter 2009). Information rapid transit corridor) and reduce peak demand, gathering and modeling are crucial to transport- which is the most costly to satisfy. efficient development. The type of land devel- Mobility management includes a range of opment is also important, because the type of transportation interventions that enhance sup- development affects the economies of scale and ply and induce modal shifts. Road development determines the physical constraints that make is perhaps the most common type of mobility certain systems, technologies, or spatial plans management intervention, but it is most effec- more or less viable. Table 3.23 delineates the tively practiced to balance transportation proj- characteristics, opportunities, and challenges ects with other types of investment such as of typical types of land development. public transportation, nonmotorized transpor- Though transportation interventions typically tation, freight management, traffic manage- influence more limited spatial dimensions ( for ex- ment, and road safety. Table 3.24 provides a A FIELD REFERENCE GUIDE | 281 Table 3.23 Type of Development and the Implications for Transportation DEVELOPMENT CHARACTERISTICS OPPORTUNITIES CHALLENGES Greenfield Site of former agricultural or • Application of best land • No existing demand or services (urban expansion) other nonurban land, usually use practices • Requires costly new infrastructure on the edge of cities • Reserving rights-of-way (ROW) for future corridors • Smaller resettlement requirement Greyfield Site of existing or former • May capitalize on existing • Redesigning existing facilities and (redevelopment) residential, institutional, demand and services services to serve new demand commercial, or industrial • Benefit of upgrading obsolete • Resettlement and appropriation establishments facilities or land uses (parking lots) • Potential contamination site • Easier to get public support (brownfield) Infill (development) Open site available within already • May capitalize on existing • Rarely available or more costly developed area or next to other demand and services • Reduction of open/green spaces built sites and existing services Source: Author compilation (Georges Darido). Table 3.24 Mobility Infrastructure Hierarchy INFRASTRUCTURE GENERAL CHARACTERISTICS FUNCTIONS Good practice: A balanced network Urban highways and • Highest speeds • Long-distance trips ring roads • Controlled access, with grade separation and interchanges • Divert through traffic, particularly trucks • Highest cost and lowest network density • Evacuation routes (<0.2 km/km2) • Encourage dispersed land development patterns Primary roads or arterials • Medium-high speed • Major thoroughfare and interdistrict trips • Sidewalks and signalized crossings at every intersection • Access to highway networks and major activity • High cost and medium network density centers Secondary roads • Limited on-street parking • Intradistrict trips • Sidewalks and pedestrian crossings at major • Access to primary roads; high-density intersections commercial, office residential, and institutional • Medium cost and medium network density developments Local roads or • Low speeds and unsignalized intersections • Access to major roads collectors, distributors • Limited on-street parking • Motorized and nonmotorized access to • Sidewalks commercial developments and residential areas • Low cost and high network density Additional elements: Best practice Traffic management and • Centralized and coordinated signals and cameras • Adapt to current conditions and give priority to road safety • Channelization (islands) and pedestrian signals special vehicles at intersections • Incident management and enforcement • Analysis of accidents and incidents • Target road safety investments Public transportation • Dedicated or exclusive lanes • Give priority movement to public transportation facilities • Intersection priority • Maximize the coverage of the network, while • Stations and terminals, park-and-ride facilities minimizing the burden of transfers Bicycle paths • Crossings at major intersections • Recreation (parkway) • Amenities (secure bicycle parking, shade, and so on) • Feeders to public transportation facilities • Commuter routes Pedestrian streets or areas • Downtown or shopping areas with high pedestrian traffic • No vehicular access to buildings • Amenities (shade, benches, and so on) • Feeders to public transportation facilities • No surface parking • Public spaces for events Freight facilities • Multimodal terminals • Optimize operations by more closely matching • Designated loading and parking vehicles and freight Source: Author compilation (Georges Darido). 282 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES summary of the most common types of mobility level, most elements are applied, but not in a co- infrastructure by function and characteristics. ordinated or balanced way. Best practice recom- Balancing transportation investments is im- mends creating an integrated network that is portant because it influences current and future scaled to demand. Because the full cost of pri- mode shares and the sustainability of the system. vate vehicle travel is not internalized in most cit- For example, providing free or ample parking ies, individual decisions to use a private vehicle for private vehicles may severely reduce the vi- instead of public transportation may be based on ability of public transportation. Moreover, inaccurate costs. To be successful, public trans- maintaining or increasing the mode share of portation systems require specific land develop- public transportation and nonmotorized modes ment patterns. Some corridors are more well becomes more difficult as the fleet and the in- suited for rapid transit, including rail, metro, or frastructure for private vehicles grows. In addi- BRT systems. At the least, cities need sufficient tion, new infrastructure, particularly for private available or redevelopable land around potential vehicles, may induce a rebound effect (that is, stations and good pedestrian and bus access. new demand because of greater capacity). Intelligent transportation systems aim to in- Public transportation is a particularly impor- crease the capacity or efficiency of infrastructure tant type of mobility intervention in the urban by harnessing appropriate technology. These context. Table 3.25 summarizes the main ele- systems have the potential to improve highway ments of a public transportation network by operations by mitigating congestion, managing function, capacity, and characteristics. At a basic speeds, and smoothing traffic flows. Specific Table 3.25 Elements of a Public Transportation Network SERVICE TYPES FUNCTION CAPACITY CONDITIONS REQUIREMENTS Feeder or circulators Shortest trips (usually Low: small buses Lowest population density, Local streets, low costs (collectors and 1–3 km) within district (7–20 m in length, but with defined nodes distributors) or neighborhood 20–40 passengers) Local (bus) Medium trips (3–8 km) Intermediate Medium-density nodes Arterial roads, bus stops, from district to city or schedules: if more than or corridors and other facilities district to district 1 minute headways Commuter express bus Long trips (>20 km) Intermediate Few origins, limited Highways or arterials, bus or suburban rail from regional suburbs destinations stops, and other facilities to city center or district Surface mass transit— All trips from district to Intermediate to high: High population density: Exclusive lanes on major BRT or light rail transit city (usually 5–20 km) ridership of 100,000– 5,000–10,000 persons arterials; 10–20 m of 300,000 daily, 10,000– per km2 right-of-way; stations and 30,000 in peak hour terminals; intermediate investment, typically US$1 million to US$10 million per km, depending on infrastructure Grade-separated mass All trips from district High: ridership of Highest population Underground or elevated transit (elevated or to city (usually 5–20 km) 200,000–500,000 daily, density: >15,000 persons stations and terminals; underground) 20,000–50,000 in peak per km2 highest investment, hour typically US$50 million– US$200 million, depending on infrastructure Intercity (bus or rail) Longest trips from Medium to high Limited origins and Intermodal stations and region to region destinations terminals Source: Author compilation and estimates (Georges Darido); adapted from PPIAF and World Bank (2008). Note: km = kilometer; km2 = square kilometer; m = meter. A FIELD REFERENCE GUIDE | 283 measures for each of these strategies are de- vehicular speed to more efficient levels (below scribed in the bubbles in figure 3.53. In California, 65 miles per hour or 100 kilometers per hour). each strategy has reduced fuel consumption This scenario, however, assumes a congested and on-road CO2 emissions by 5–10 percent. environment and no rebound effect. These Mitigating congestion and smoothing traffic strategies correspond to the market packages of boost average travel speeds closer to the opti- intelligent transportation systems pictured in mal 35 miles per hour (roughly 55 kilometers figure 3.54, namely, freeway management and per hour). Managing speed entails increasing emergency management. (For a complete data- Figure 3.53 The Benefits under Speed Conditions of Select Highway Applications of Intelligent Transportation Systems Source: Matthew Barth, Center for Environmental Research and Technology, University of California–Riverside, Riverside, CA, http://www.cert.ucr.edu/research/tsr/. Figure 3.54 Classification of Intelligent Transportation System Market Packages Source: U.S. Department of Transportation (2009). 284 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES base on the costs, benefits, and lessons learned local context. in intelligent transportation systems, visit Good management and operational practices http://www.benefitcost.its.dot.gov/.) are also essential. For example, a bus with a highly sophisticated hydrogen fuel cell would provide Vehicle fleet and fuel supply little benefit if the bus carries few passengers or Technological interventions targeting vehicle and the primary fuel source used to produce the fuel savings should normally be implemented clean hydrogen was something more polluting together to ensure performance and cost- than standard diesel. Table 3.27 provides esti- effectiveness. There is usually little point in mates of CO2 emissions from various vehicle investing in advanced vehicle technologies types based on realistic assumptions of occupan- without complementary fuel measures (and vice cy, maintenance, and primary energy sources. versa). For example, filters that capture danger- ous particulate matter in exhaust will not work effectively without ultralow sulfur diesel fuel, Stakeholder Dynamics and these filters may be counterproductive if they are not properly installed. It is also impor- Incentives for the public sector, private sector, tant that basic steps be implemented before and citizen stakeholders need to be aligned and advanced technologies are pursued. These steps coordinated. Table 3.28 outlines the various might include adopting minimum fuel and econ- stakeholders and their interests. omy standards for new vehicles and banning the The main interests of the stakeholders are as most polluting vehicles (such as vehicles with follows: highly inefficient two-stroke engines). In many • Decision makers: Elected and appointed offi- countries, periodic inspection and maintenance cials (typically with four- to five-year terms) schemes are common to compel the repair of the gauge the political and economic feasibility most polluting vehicles or their removal from of innovative urban projects. Innovative roads. Table 3.26 provides a partial overview of projects are often linked to city goals, efforts common vehicle and fuel technologies and prac- to boost the quality of life, and major special tices, along with illustrative examples.3 However, events that may catalyze transformative only a few advanced interventions are suggest- change (such as the Olympic Games in Bei- ed because they are highly dependent on the Table 3.26 Summary of Select Vehicle and Fuel Interventions STAGE VEHICLES FUELS Stage I: Enabling • Minimum safety and efficiency standards • Minimum fuel-quality standards (unleaded, low-sulfur, conditions for new vehicles reformulated fuel, and so on) • Ban existing two-stroke engines Stage I: Additional • Emissions control equipment • Alternative and bio-fuels, where appropriate and measures Catalytic converters for gasoline cost-effective Particle traps for diesel Natural gas • Inspection, maintenance, and scrappage Ethanol requirements • Reduce leakages and inefficiencies in the vehicle and distribution system Stage II: Additional • Advanced technologies for managed or • Renewable alternative fuels with distribution network, measures shared fleets where appropriate Eco-driving options and idle reduction Solar Hybrid-electric Wind Plug-in electric Source: Author compilation (Georges Darido). A FIELD REFERENCE GUIDE | 285 Table 3.27 CO2 Emissions from a Range of Vehicle Types LOAD FACTOR CO2 EQUIVALENT EMISSIONS PER VEHICLE TYPE (AVERAGE OCCUPANCY) PASSENGER KM (FULL ENERGY CYCLE) Car (gasoline) 2.5 130–170 Car (diesel) 2.5 85–1 20 Car (natural gas) 2.5 100–1 35 Car (electric)a 2.0 30–1 00 Scooter (two-stroke) 1.5 69–90 Scooter (four-stroke) 1.5 40–60 Minibus (gasoline) 12.0 50–70 Minibus (diesel) 12.0 40–60 Bus (diesel) 40.0 20–30 Bus (natural gas) 40.0 25–35 Rail transitb 75% full 20–50 Source: Sperling and Salon (2002). Note: All numbers in this table are estimates and approximations and should be treated as illustrative. a. The ranges have arisen largely because of the varying mix of carbon and noncarbon energy sources (consisting of 20–80 percent coal) and the as- sumption that the electric battery vehicle will tend to be somewhat smaller than conventional vehicles. b. This category assumes the application of heavy urban rail technology (metro) powered by electricity generated from a mix of coal, natural gas, and hydropower and high passenger usage rates (75 percent of seats filled, on average). Table 3.28 Basic and Advanced Stakeholder Interests mizing personal expenses. These interests STAGE I: ENABLING may be measured through user surveys. In- CONDITIONS OR STAGE II: ADDITIONAL ternational experience shows that users STAKEHOLDER MEASURES MEASURES value participatory processes and the prin- Decision makers • Windows of • Special events and larger ciples of universal accessibility. (political) vision opportunity • Quality of life issues • The public: The public, including nonusers, • Economic feasibility is generally interested in the performance Users • User surveys • Participatory process and cost-effectiveness of investments. Pub- (on-board, intercept) • Universal accessibility lic opinion surveys, including household Public • Public opinion surveys • Transparent process surveys, may form part of a transparent vet- Operators • Financial sustainability • Social sustainability ting process that also publishes public in- Source: Author compilation (Georges Darido). formation on Web sites and through other media and channels of communication. jing; see box 3.16). Key relevant issues for de- cision makers: What will be the impacts of • Transport planners and operators: Trans- the projects on key interests? Are the impacts portation officials usually strive to ensure reversible if something goes wrong? May the financial and social sustainability of in- projects be implemented if there is a window frastructure and services. Subsidies may be of opportunity? Are they sustainable beyond required for some services or in areas in the current term? which affordability is a main concern. • Users or the riding public: The interests of • The business community: Transportation this group include maximizing personal infrastructure lubricates a city’s economic mobility and the accessibility, quality, safe- engine, and business leaders are often ty, and affordability of services and mini- keenly interested in the development of key projects. 286 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Economic and Financial Aspects – Vehicle operating cost savings: quanti- fied on the basis of the wear and tear on Best practice dictates that planning and feasibility vehicles and fuel savings studies on transportation projects should thor- – Road safety benefits: sometimes quanti- oughly analyze viable alternatives. Analyses fied in terms of avoided injuries, fatali- should consider the life-cycle costs and time ho- ties, and property damage using statisti- rizons of investments. Studies of public trans- cal values from local data sources portation corridors often assess BRT and urban – Air quality benefits: sometimes quanti- rail alternatives. BRT systems have a slightly fied on the basis of estimates of the eco- lower capacity and a shorter life cycle because nomic and health impacts of reduced buses and busways are not as durable as rail cars emissions of local pollutants and tracks. However, a BRT system is consider- – Greenhouse gas emissions: directly relat- ably more rapid and cheaper to build than rail if ed to fuel consumption and sometimes rights-of-way are available (box 3.17). A BRT sys- quantified, particularly to evaluate the tem is also more flexible, may be implemented possibility of selling carbon credits incrementally, and is more easily altered. (see the section on innovative financing Table 3.29 summarizes key aspects in eco- below); greenhouse gas emissions are nomic and financial assessments of transporta- usually normalized by person or unit of tion projects. economic welfare (such as GDP), and Economic analyses of transport alternatives issues related to estimating transport- typically rely on cost-benefit analyses and the cal- derived greenhouse gases are discussed culation of rates of return.4 For World Bank– financed projects, the economic and financial – Other impacts of infrastructure on em- indicators are usually linked to project develop- ployment and poverty: sometimes con- ment objectives and the monitoring and evalua- sidered; however, the broader, long-term tion framework. These indicators include calcu- economic impacts of integrated trans- lations of net present value and an internal port systems and technologies (for ex- economic rate of return, which are typically esti- ample, impacts on the small business mated over the life of the project and encompass market and on technology exports) are the following elements: rarely quantified • Costs: • Sensitivity analyses to assess the viability of investments under different scenarios, based – Capital (fixed or up-front investment on changes in at least three variables: costs) – Costs (that is, increases in the capital or – Operating (variable or operating costs, operating costs) maintenance, disposal costs) • Benefits (listed from primary to secondary benefits): Table 3.29 Economic and Financial Aspects STAGE I: ENABLING STAGE II: ADDITIONAL – Travel time savings: quantified using ASPECT MEASURES MEASURES transportation models, including de- Economic • Feasibility or • Alternatives analysis mand forecasts and mode choices; this planning study • Evaluation of primary and value theoretically captures most of the • Cost-benefit analysis secondary benefits potential gains in land values from im- (primary benefits) proved transportation services and ac- Financial • Financial analysis • Innovative financing options cessibility Source: Author compilation (Georges Darido). A FIELD REFERENCE GUIDE | 287 BOX 3.17 Bus Rapid Transit BRT is an integrated system of high-quality bus interventions that may be implemented incrementally and catalyze more substantive reform. Among the key elements of a BRT system are the following: • Exclusive or segregated busways • Stations with boarding at level and the prepayment of fares • Large vehicles with multiple doors • Advanced service and operations plans, including plans for trucks and feeders • Electronic and integrated fare collection systems • Intelligent transportation systems, including the centralized con- trol and effective management of passenger information • Marketing and branding to reinforce a distinct image BRT systems have been shown to improve service by reducing wait- Source: Hidalgo, Custodio, and Graftieaux (2007). ing, boarding, and travel times and by offering modern, comfortable, and convenient services more cost effectively than do rail invest- vate concessionaires that earn profits based on system efficiency. ments. Public BRT services have increased viability relative to other, Pereira (see photo) was the first city to implement a scaled-down more polluting energy-intensive modes. version of the Transmilenio system. The system featured one-way Milestones in the evolution of BRT systems include the following: streets in a narrow downtown area and improved solutions for • Since the 1970s, Curitiba, Brazil, has been a pioneer in developing feeders, including an electronic fare system. BRT systems as part of a long-term vision and implementation • Santiago and Seoul have both chosen to implement ambitious strategy, including reserving rights-of-way for structural axes (ma- public transportation reforms and investments that have included jor city public transportation corridors) and building institutions BRT-type corridors, the integration of bus networks and express with significant technical capacity that have endured political trunk feeders, integrated smartcard systems, and centralized con- changes. trols. Among the main lessons drawn from the Transmilenio expe- • The Transmilenio BRT in Bogotá, Colombia has achieved myriad rience has been the realization that a realistic or incremental milestones: (1) a high capacity of up to 35,000 passengers per hour implementation plan (with pilot projects) is critical. per direction, (2) a shorter implementation period as part of an • BRT systems may complement other public transportation in- urban redevelopment plan, and (3) recognition as the first public vestments. Several Asian cities have taken steps to discourage transportation system approved under the Clean Development private car use and strengthen public transportation by improving Mechanism for the sale of carbon credits. bus systems and building or expanding urban rail systems. These • The Colombian National Urban Transport Program is a framework cities include Hong Kong, China; Seoul; Singapore; and Tokyo for technical collaboration and financing for BRT systems in seven (Wright 2004). participating cities to replicate and scale up the success of Trans- For more information about relevant costs, benefits, and lessons milenio. The national government has financed most infrastruc- learned, see Wright and Hook (2007), Levinson and others (2006), ture investments, while the cities oversee the operations of pri- and U.S. Federal Transit Administration (2004). – Start state (that is, to account for the cost or service that maximizes utility or minimizes of delays) total cost. Utility comprises several variables, – Revenue or demand variation (that is, including total travel time and total travel cost less than expected traffic volumes or rid- (figure 3.55). Travel time may be monetized into ership) a value of time among different users, and travel purposes may be measured through surveys. Forecasts of demand and mode choice are crit- Monetary estimates of time are valid only to the ical elements of an economic analysis. Theoreti- extent that there is a real trade-off between cally, an individual chooses an available mode time and money. Another limitation of mode 288 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Total Travel Time Total Travel Cost Other Aspects • Access time • Veh. oper. cost • Comfort • Wait time VOT • Fares WTP • Convenience • In-vehicle time • Tolls and fees • Safety • Transfer time • Parking • etc… Figure 3.55 Elements of Utility in Models for Choosing a Transportation Mode Source: Author compilation (Georges Darido). Note: VOT = value of time. WTP = willingness to pay. choice models is the valuation of other qualita- partners in return for the construction of tive aspects of travel, such as comfort, safety, public transportation facilities and stations. and convenience. Some of these factors may be The partnerships are not always the low- monetized using surveying techniques to esti- est cost option; therefore, an appropriate mate willingness to pay. allocation of risks (for example, construc- Any large sustainable transportation invest- tion, economic, and traffic risks) and accurate ment is a long-term financial commitment, and estimations of value are important. Good its management requires long-term fiscal disci- examples include public transportation ter- pline and institutional capacity. Examples in- minals financed by the private sector, such as clude urban rail or metro investments that may cases in Brazil and Japan. Terminals also cost hundreds of millions of dollars to construct represent good locations for leased retail and millions per year to operate. The govern- space and other public services (figure 3.56). ment finances public transportation infrastruc- • Land development and value capture cover ture in many cities, and services are often subsi- techniques whereby the public entity sells dized even if they are operated by the private surplus land to developers ( joint developers) sector. This is because local conditions often do or develops land around transportation not allow profitable operations, while fulfilling investments. A good example is the public social objectives. The financial indicators for transportation system in Hong Kong, China. transportation projects depend on the type of project (that is, investment, reform, or public- private partnership) and should measure liquid- ity (working capital ratio), performance (oper- ating ratio for public transportation companies), and financial sustainability (debt service cover- age ratio). There are many innovative financing options that may be considered: • Public-private partnerships are frameworks for joint investment planning (and asset ownership or revenue sharing) by the public and private sectors. They are usually select- ed because of fiscal constraints on public funds or the rigor and efficiency contributed by the private sector. One example is the use Figure 3.56 Curitiba: Terminal Carmo, Adjacent Shops, and Citizenship Street of public land as a direct payment to private Source: Institute for Research and Urban Planning of Curitiba. A FIELD REFERENCE GUIDE | 289 • Tax increment financing provides a dedicat- A common pitfall in the development of such ed stream of land taxes to finance projects. a model is the tendency to underestimate or ignore shorter, nonmotorized trips within • Carbon financing involves the sale of green- zones and overestimate longer trips on house gas emission credits to finance capi- major corridors. Freight modes must also be tal or operating costs. One example is the accurately considered, especially in large methodology that was approved through and rapidly growing cities in which truck the Clean Development Mechanism and transport has significant impacts. used in Bogotá’s Transmilenio. • Emissions inventories. There are at least two • Other tolls and fees may be imposed to fund ways to estimate urban transportation emis- specific projects. For example, impact fees sions. A bottom-up approach entails collect- have been used in some parts of the United ing data on vehicle fleets, including number, States to tax developers for the expected type, average fuel efficiency, and annual ve- impacts of the development of transporta- hicle kilometers traveled. This information tion networks. may be replaced or supplemented by motor- ized trip tables and average distances taken from origins and destinations studies. A top- Integration Opportunities down approach analyzes the amount of fuel sold or consumed in an area. The latter ap- There are a number of analytical resources and proach is often used to check the data in the modeling tools used in transportation that are former, but the two approaches are normally potentially applicable to other sectors. These difficult to reconcile in drawing conclusions are summarized as follows: on urban emissions. • Macroplanning tools include household and • Important microdesign tools include site user surveys of travel origins and destina- plans, station area plans, and zoning ordi- tions. These surveys should be executed at nances. least once every 7 to 10 years and survey all modes (walking, bicycling, private vehicle There are also important bottlenecks in sus- use, public transportation modes of various tainable transportation planning and the types, taxis, and trucks) aggregated by the implementation of potential solutions. These travel purpose and income level of the users. include the following: • Transportation model. The data on origins • Road space allocation. Traffic engineers tend and destinations may be applied to develop to focus on vehicle volumes on roadway seg- and calibrate a four-step metropolitan trans- ments and intersections. Investments often portation model, which encompasses trip thus optimize networks for moving vehicles generation, trip distribution, mode choice, rather than people or goods. By considering and network assignment. Officials may use vehicle occupancy and appropriately valuing this model to support decisions on major passengers in high-capacity vehicles such as transportation policies or investments in a buses, one may easily argue for an increased metropolitan transportation plan. Carbon priority for the use of high-occupancy vehi- footprint and greenhouse gas analyses also cles on streets and intersections. These con- require recent survey data on origins and cepts are illustrated in figure 3.57. destinations (preferably less than 7 years • Energy consumption may be incorporated in old) and a calibrated transportation model. a city’s master planning process if modal 290 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 3.57 The Amount of Roadway Used by the Same Passengers Traveling by Car, Bicycle, or Bus Source: Petersen and WI (2004). Note: The photo shows a street in Münster, Germany. origins and destinations data and fuel con- ban utilities and national enterprises. sumption data are systematically captured. In sum, there are numerous approaches that These data may be harnessed to develop integrate transportation and other sectors and multisector spatial plans and policies for may improve the urban ecological and econom- energy use and climate change mitigation ic environment. Table 3.30 summarizes cross- and adaptation (that is, infrastructure stan- sector integration opportunities. dards and codes and emergency proce- dures). • Transport regulations and city finances. Pub- Notes lic transportation provisions, regulations, fares, subsidies, and service levels directly 1. It is good practice and the policy in World Bank–financed projects to require ex ante affect a city’s finances. In public-private identification of the development objectives of partnerships, the involvement of private projects and, within a results framework, ongoing companies and their associated exposure to supervision over monitoring and evaluation risks typically progress from management indicators in light of targets. 2. The discussions in this section on public transpor- and operations to the ownership of fleets, tation, microdesign, and macrolevel approaches facilities, and infrastructure. Multiple op- are based on presentations at the World Bank tions are available to allocate risks among Urban Rail Workshop in Beijing in 2008 and public and private partners; the choice de- discussions with World Bank experts Shomik Mehndiratta and Sam Zimmerman. pends partly on the extent of development 3. A more comprehensive review is available in of legal systems and market institutions in a World Bank (2001). A review of economic city and country. Regulatory changes in ur- instruments such as fuel taxes and efficiency ban transportation are often linked and incentives may be found in Timilsina and Dulal (2008). aligned to complementary reforms in the 4. For more detailed information, see the World water and energy sectors, including in ur- A FIELD REFERENCE GUIDE | 291 Table 3.30 Summary of Cross-Sector Integration Opportunities DIMENSIONS URBAN ENERGY WATER SOLID WASTE Policy, legislation Land use zoning for Energy and emissions Roadway design Litter prevention programs and regulations residential, commercial, inventories and targets standards Materials recycling programs and institutional properties Fuel security for drainage Air quality standards Institutional context Metropolitan coordinating Reform and regulation Reform and regulation Reform and regulation institutions Conservation programs Conservation programs Conservation programs Enforcement programs Physical systems, Master planning of non- Fuel and vehicle Storm water runoff Production and disposal of technology, and motorized transport standards Production and infrastructure, vehicles, and spatial planning facilities, accessibility, Inspection and disposal of infra- systems amenities, and urban maintenance structure, vehicles, Location of collection and furniture Location efficiency and systems disposal facilities Public spaces Fleet management and efficiency programs Stakeholder Special events to change dynamics behaviors and spur investment Economic and Savings through Savings through coordinated Savings from Savings through financial aspects coordination utility development coordinated road coordination (power lines, lighting) construction Source: Author compilation (Georges Darido). Bank’s guidance available through “TRN-5 to Comune di Milano. 2009. “EcoPass: Meno traffico, più TRN-26: Economic Evaluation Notes,” at http:// aria pulita.” Comune di Milano, Milan. http://www. go.worldbank.org/ME49C4XOH0. TRN-5 comune.milano.it/dseserver/ecopass/index.html. provides the context within which we use Dalkmann, Holger, and Charlotte Brannigan. 2007. economic evaluation in the transport sector; “Transport and Climate Change.” Module 5e of TRN-6 to TRN-10 provide criteria for the selection Sustainable Transport: A Sourcebook for Policy- of a particular evaluation technique or approach; Makers in Developing Cities, rev. ed. Sustainable TRN-11 to TRN-17 address the selection of the Urban Transport Project. Eschborn, Germany: values of various inputs to the evaluation; and Transport Policy Advisory Service, Division 44, TRN-18 to TRN-26 deal with specific problematic Environment and Infrastructure, German Agency issues in economic evaluation. for Technical Cooperation. Fraker, Harrison S., Jr., and William Wurster. 2009. “Sustainable Neighborhood ‘Eco-blocks’ in China: Qingdao Sustainable Neighborhood Demonstra- References tion Project.” Urban Sustainability Initiative, Berkeley Institute of the Environment, University Cervero, Robert, and Jennifer Day. 2008a. “Residential of California–Berkeley, Berkeley, CA. http://bie. Relocation and Commuting Behavior in Shanghai, berkeley.edu/ecoblocks. China: The Case for Transit-Oriented Develop- Hidalgo, Dario, Paulo Custodio, and Pierre Graftieaux. ment.” Working Paper UCB-ITS-VWP-2008–4, UC 2007. “A Critical Look at Major Bus Improvements Berkeley Center for Future Urban Transport, in Latin America and Asia: Case Studies of Hitches, University of California–Berkeley, Berkeley, CA. Hic-Ups and Areas for Improvement; Synthesis of http://escholarship.org/uc/item/0dk1s0q5. Lessons Learned.” Presentation, World Bank, ————. 2008b. “Suburbanization and Transit-Oriented Washington, DC. http://go.worldbank.org/ Development in China.” Transport Policy 15 (5): W8FO3NQ680. 315–23. IEA (International Energy Agency). 2007. World Energy Colin Buchanan and Partners. 2001. Key Sites Appraisal Outlook 2007: China and India Insights. Paris: IEA. Methodology for Development Planning: Final Levinson, Herbert S., Samuel Zimmerman, Jennifer Report. Edinburgh: Scottish Executive. Clinger, James Gast, Scott Rutherford, and Eric 292 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Bruhn. 2006. Implementation Guidelines. Vol. 2 of U.S. Department of Transportation. 2009. “National Bus Rapid Transit, TCRP Report 90, Transit ITS Architecture.” Version 6.1. U.S. Department of Cooperative Research Program. Washington, DC: Transportation, Washington, DC. http://www. Transportation Research Board of the National iteris.com/itsarch/ (last modified January 7). Academies. U.S. Federal Transit Administration. 2004. Characteris- Lund, Hollie M., Robert Cervero, and Richard W. tics of Bus Rapid Transit for Decision-Making. Willson. 2004. “Travel Characteristics of Transit- Washington, DC: Office of Research, Demonstra- Oriented Development in California.” Caltrans tion and Innovation, Federal Transit Administra- Statewide Planning Studies, FTA Section 5313 (b), tion, U.S. Department of Transportation. California Department of Transportation, World Bank. 2001. “Vehicular Air Pollution: Setting Sacramento, CA. http://www.csupomona. Priorities.” South Asia Urban Air Quality edu/~rwwillson/tod/Pictures/TOD2.pdf. Management Briefing Note 1, Energy Sector Mobility in Cities Database. 2001. International Management Assistance Programme, World Association of Public Transport, Brussels. http:// Bank, Washington, DC. www.uitp.org/publications/Mobility-in-Cities- ————. 2008. “A Framework for Urban Transport Database.cfm. Cited in Petersen and WI 2004, 8. Projects: Operational Guidance for World Bank Petersen, Rudolf, and WI (Wuppertal Institute for Staff.” Transport Papers TP-15, Transport Sector Climate, Environment, and Energy). 2004. “Land Board, World Bank, Washington, DC. Use Planning and Urban Transport.” Module 2a of Wright, Lloyd. 2004. “Bus Rapid Transit.” Module 3b of Sustainable Transport: A Sourcebook for Policy- Sustainable Transport: A Sourcebook for Policy- Makers in Developing Cities, rev. ed. Sustainable Makers in Developing Cities, rev. ed. Sustainable Urban Transport Project. Eschborn, Germany: Urban Transport Project. Eschborn, Germany: Transport Policy Advisory Service, Division 44, Transport Policy Advisory Service, Division 44, Environment and Infrastructure, German Agency Environment and Infrastructure, German Agency for Technical Cooperation. for Technical Cooperation. PPIAF (Public-Private Infrastructure Advisory Facility) Wright, Lloyd, and Walter Hook, eds. 2007. Bus Rapid and World Bank. 2008. “Introduction to Public Transit Planning Guide. New York: Institute for Transport Service and Operations Planning.” Transportation and Development Policy. Training materials presented at “Introduction to Zegras, Christopher, Yang Chen, and Jurg Grutter. Public Transport Planning and Industry Reform,” 2009. “Potentials and Challenges for Using the Asian Development Bank, Manila, February 4–5. Clean Development Mechanism for Transport- Rebelo, Jorge M. 1996. “Essentials for Sustainable Efficient Development: Case Study of Nanchang, Urban Transport in Brazil’s Large Metropolitan China.” Paper 09–2864, Transportation Research Areas.” Policy Research Working Paper 1633, Board 88th Annual Meeting, Transportation World Bank, Washington, DC. Research Board of the National Academies, Sperling, Daniel, and Deborah Salon. 2002. “Transpor- Washington, DC, January 11–15. tation in Developing Countries: An Overview of Zimmerman, Sam. 2008. “Land Use and Metros.” Greenhouse Gas Reduction Strategies.” Reports on Presentation at the World Bank workshop, “Urban Global Climate Change, Pew Center on Global Rail Development,” Beijing, June 27. Climate Change, Arlington, VA, May. Timilsina, Govinda R., and Hari B. Dulal. 2008. “Fiscal Policy Instruments for Reducing Congestion and Atmospheric Emissions in the Transport Sector: A Review.” Policy Research Working Paper 4652, World Bank, Washington, DC. A FIELD REFERENCE GUIDE | 293 SECTOR NOTE 4 Cities and Solid Waste Overview Why is waste management important? Effective waste management is critical to the Waste management is often viewed as an end ecological and economic vitality of urban areas. stage in a product’s life cycle. However, it also A properly designed and operated waste man- provides opportunities to renew the useful life agement system provides the following: of materials by recycling, composting, and re- covering energy through thermal processes such • Protection of public health: Inadequately as incineration or methane capture at landfills. collected waste and poor disposal are breed- The energy released through thermal treatment ing grounds for disease-carrying vermin or methane combustion may then be used to such as rodents and insects. In addition, generate electricity or other power, thereby cre- bacteria such as salmonella and shigella ating a synergistic loop. thrive in food waste, which accounts for The main desired aims of waste management over half of the municipal waste in develop- systems may be summarized as the protection of ing countries (Pablo 2007). public health by preventing the accumulation • Ecological protection: An effective system of food for rodents, insects, and other disease will regulate or prohibit harmful practices, vectors and the protection of the environment such as open burning and improper waste primarily by controlling and eliminating air and disposal, to protect local and regional ecolo- water pollution. The conservation of materials gies and mitigate the negative impacts on and energy resources is another important de- air, land, and water. sired aim of well-designed waste management systems. • Effective budget management: Efficient solid Figure 3.58 delineates the main inputs, inter- waste management is important to the fis- ventions, and outputs of a waste management cal health of a city because solid waste system. Inputs may be independent or depen- management in medium-size cities can reach dent based on the degree of controllability. For 50 percent of total municipal budgets example, geographical location normally repre- (Pagiola and others 2002). sents an independent input over which authori- • Employment: Waste management provides ties have little if any control, while policy frame- significant formal employment in areas works are dependent because cities are able to ranging from collection to disposal. Infor- influence legislation. Outputs may work toward mal employment may also be important, set aims, or they may be undesirable; thus, they such as in the case of waste collectors who may include air and water pollution levels that recover materials for recycling prior to col- are greater than expected. lection at disposal sites. A FIELD REFERENCE GUIDE | 295 Independent Inputs (mostly given or not controlled): • Geographic constraints • Demographic and economic conditions • Climatic and atmospheric conditions • Social norms and historical practices Dependent Inputs (controlled to Desired Outputs Waste Management some degree): (objectives to be Interventions: maximized): 1. Policy, legislation, and A. Product demand regulations management • Public health 2. Institutions B. Infrastructure and • Material and 3. Physical systems, technology, services energy resource and spatial planning C. Vehicle fleet and use efficiency 4. Stakeholders fuel supply • Ecological 5. Economic and financial aspects protection Undesired Outputs (to be minimized): • Higher than necessary consumption of materials and energy in waste that is not recycled or otherwise productively used • Air emissions from uncontrolled burning, poor incineration practices, and the uncontrolled discharge of landfill gases • Land and water pollution from insufficient collection or poor disposal practices • Impact on land, water, and energy consumption Figure 3.58 The Input-Output Framework of a Waste Management System Source: Author compilation (Charles Peterson). • Aesthetics: Effective systems protect the vi- although infectious waste that has been sual and sensory appeal of cities by ensur- rendered noninfectious through incinera- ing that waste is effectively managed and tion and autoclave or microwave treatment that practices do not unduly affect residents may be discarded in municipal landfills. and visitors. • Industry: Municipal landfills may receive industrial waste, but hazardous waste must What does solid waste comprise? be managed separately. Most people rightly attribute significant por- • Construction and demolition debris: This tions of municipal solid waste to residents and waste comprises discards from new build- commercial operations. However, municipal ing construction and the renovation of older solid waste includes other sources, some of facilities and residue from structures that which require special waste management ap- have been torn down. Much of this debris proaches: may be recovered for recycling, which could • Medical facilities: Hospitals and clinics gen- minimally include clean fill if problem ma- erate solid waste. Medical facilities also terials such as wood mixed with lead paint generate infectious waste and, occasionally, or asbestos are extracted. radioactive waste. In general, infectious and • Slaughterhouses: These facilities produce radioactive waste material must be man- animal waste and various excreta that must aged separately from other medical waste, be properly managed. 296 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES • Sewage treatment plants: Sludge, the resi- Table 3.31 Waste Generation Rates due of sewage treatment, may be discarded GENERATION RATE WASTE QUANTITYa in a landfill in limited quantities to maintain INCOME LEVEL (KILOGRAM PER CAPITA PER DAY) (TONS PER DAY) the stability of disposal sites if it has been Low 0.5 500 mechanically dewatered. This is because Middle 0.7 700 sludge typically has a high moisture content High 1.6 1,600 (70–80 percent). Alternatively, dewatered Source: Author compilation (Charles Peterson). sludge may be applied to land as a soil con- a. The size of the population is assumed to be 1 million. ditioner. Dried sludge, which is more suit- population of one million residents, a low- able for storage and longer-distance trans- income city would generate 500 tons of waste port to agricultural areas, may also be per day, but this would more than triple, to 1,600 applied to land. In addition, sludge may be tons per day, in a high-income city. used as compost. Such uses require that Composition: The composition of waste also sludge meet regulatory standards on pollut- varies according to the income level of the peo- ants such as metals. The biological diges- ple producing the waste (table 3.32). The tion of sludge at treatment plants may re- amount of food waste tends to be greatest duce volatile organics by more than 50 among lower-income earners. As income in- percent. Such digestion reduces the amount creases, food waste generally falls because con- of sludge that must be treated or discarded. sumers purchase greater amounts of prepared The digestion process, which is anaerobic, food relative to fresh food. Fresh food results in also produces gas that may be up to 60 per- more waste from peels, pits, and other residue. cent methane in composition. The gas may Waste composition helps determine the ap- be used as an energy source. propriate approaches to waste management. A city with a high level of food waste, for example, • Combustion residue: This comprises ash should provide more frequent collection to from waste incineration or the combustion minimize the potential to attract vermin, which of solid fuels in central facilities or in house- may transmit diseases to residents. Aerobic holds (that is, ash generated from cooking composting is also suggested for areas with sig- and heating). nificant food waste, which decays rapidly in compost operations given its high moisture What are the characteristics of waste? content. Conversely, areas with significant food The options for urban solid waste management waste are not good candidates for incineration depend in part on the quantity and composition systems. Waste only autocombusts if the mois- of the discarded waste. Generation: The total quantity of discarded Table 3.32 The Composition of Waste by the Waste Producers’ Income waste depends on the per capita generation percent rate, which is highly correlated to residential INCOME LEVEL MATERIAL LOW MIDDLE HIGH income. Cities with higher incomes tend to gen- erate more waste than cities of similar size, Food 40–85 20–65 20–50 but with lower incomes. People with higher Paper 1– 10 15–40 1 5–40 incomes purchase more goods and services, Recyclables 4–25 5–26 1 1 –43 which results in more waste. Table 3.31 illus- Miscellaneous 15–50 15–50 5–20 trates the relationships between income level, Moisture 40–80 40–60 20–30 per capita waste generation, and total urban- Source: Author compilation (Charles Peterson). generated waste. If one assumes a consistent A FIELD REFERENCE GUIDE | 297 able or single-use products such as diapers and soft drink containers. The recycling option in- Preferred option Prevention cludes composting. Energy recovery includes technologies, such as methane capture, that Minimization harness waste or by-products to generate us- Reuse able energy. Recycling and Composting Policy, Legislative, and Energy from waste Regulatory Dimensions Landfill The policy, legislative, and regulatory frame- work for solid waste management involves the Least preferred option following dimensions. The policy dimension: National and local gov- ernments must be committed to improving urban Figure 3.59 Waste Hierarchy environments to protect the health of residents. Source: Author elaboration (Charles Peterson). Note: The most favored options are at the top of the pyramid, declining Additionally, especially at the national level, to the least favored at the bottom. governments should emphasize demand man- agement to control the quantity of generated ture content is less than 50 percent, which waste. Demand management includes programs means that a supplemental fuel is needed to to reduce waste, encourage reuse, and recycle. burn food waste because of the higher moisture In Japan, for example, Yokohama took action content of the waste. The incidence of this fac- to reduce the demand for waste treatment (in- tor is greater during rainy seasons. cineration) and disposal. In 2003, the city launched the G30 Action Plan (G = garbage; 30 What are the common approaches to waste = 30 percent reduction in waste generation by management? fiscal year 2010). The program targets residents, businesses, and government and focuses on the The options for managing waste have been 3Rs (reduce, reuse, and recycle). The program ranked in a number of forums. A universally ac- has exceeded its goals. By fiscal year 2007, waste cepted pyramid of choice is provided in figure had been reduced by 38.7 percent, or 0.1 million 3.59. Under this schema, waste prevention is the tons per year. The reduced waste enabled offi- preferred option at the top of the pyramid, cials to close two incinerators, yielding savings while waste disposal is the least favored option in operating expenditures of US$30 million per at the pyramid’s foundation. Waste prevention year. (We base the calculations here and below and minimization are equivalent to waste re- on an exchange rate of approximately ¥100 = duction and involve the prevention of waste at US$1.) After subtracting the US$24 million in the source by redesigning products or changing operating expenditures for the additionally re- patterns of production and consumption (Pe- quired operations, such as separating waste and terson 1989). subcontracting recycling, the city realized net Waste reduction (that is, prevention and savings of US$6 million per year. The closing minimization) comprises demand management of the two incinerators also obviated the need practices such as the creation of durable prod- for US$1.1 billion in capital expenditures that ucts with longer lives. Reuse describes products would have been required to renovate the that may be used more than once, unlike dispos- incinerators. 298 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES At the local level, effective wastewater man- the expected effects of policies through the agement and air pollution control are needed to analysis of past practice and lessons learned. address risks. In cities with open drains, for The legislative dimension: Appropriate laws example, uncollected waste dumped into drains at all levels of government are important to the may block or hinder water flow, which may cause development and operation of the waste man- severe flooding during periods of significant agement sector. Legislation supporting a viable rainfall. Because waste disposal sites are often waste management framework should be insti- in low-lying areas near waterways or wetlands, tuted if laws are not already in place. inappropriately designed landfills or waste dis- Environmental protection and solid waste posal may also contaminate surface and ground- management measures are often complemen- water, with concomitant risks for drinking water tary. For example, improved waste management and residents who live downstream. is frequently a component of environmental Even if disposal sites are not near water bod- legislation to protect water sources and reduce ies, groundwater may still become contaminated. air pollution. The appropriate siting and opera- Leachate, which includes contaminated rain- tion of landfills strengthen efforts to protect water and waste with a high moisture content water sources. In addition, air quality may be (such as discarded food), may percolate through improved by reducing the open burning of the soil under an inadequately designed disposal waste, installing air pollution control equip- site and pollute groundwater. Leachate may be ment at incinerators, and eliminating poor op- controlled by lining the bottom of a disposal site erational practices. with clay or a synthetic material such as high- The regulatory dimension: Enactment of suit- density polyethylene. Such materials inhibit the able national and local legislation should be fol- flow of leachate, which may then be collected lowed by passage of appropriate regulations through pipes on top of the liner and treated. and enforcement measures for waste manage- The combustion of solid waste, whether in an ment laws. Multiple regulations should be con- incinerator or by fire at an open dump, may add sidered and approved by governments based on particulates (smoke) and other toxic and non- waste management requirements and the exist- toxic air pollutants to the atmosphere. Emissions ing environmental and waste management pol- from incineration may be controlled, but a com- icy framework. The following measures should prehensive emissions control system may be be considered: nearly as expensive as a combustion system. • Waste classification and standards for collec- Government policies also need to address tion, treatment, and disposal: Regulatory the disposal of other types of wastes, such as in- definitions are important tools in setting fectious medical waste, hazardous waste, sew- standards for waste management practices. age sludge, residue from livestock slaughter- For example, management programs should houses in urban areas, and residue from energy be much more rigorous for infectious medi- production facilities (especially those using cal waste than for noninfectious medical solid fuel such as coal or biomass). These wastes waste. Treatment standards for the various should be managed separately from municipal types of infectious medical waste, such as waste and may require treatment prior to dis- medical sharps and body parts, differ in posal (for example, to render medical waste terms of sterilization. The type of waste also noninfectious). influences the way waste is disposed. Infec- Whenever possible, policies should be bench- tious waste, for example, may have to un- marked against policies in other cities in the dergo incineration, autoclave, or microwave region and elsewhere in developing and devel- treatment and may have to be buried in dis- oped countries. Benchmarking helps evaluate A FIELD REFERENCE GUIDE | 299 posal sites with secure perimeters that re- regional solutions, a regional approach may strict access. enhance the benefits of a project by expand- ing the scope beyond the urban area. • The provision of cost recovery mechanisms, An important, but often overlooked aspect of such as user fees: Those measures should be regulation is enforcement by independent considered and tied to the amount of dis- government agencies. Enforcement is critical posed waste. For example, if waste is col- to implementing regulations and ensuring lected from households or taken to a staffed ongoing regulatory compliance. An effective collection point, the generators of waste enforcement program requires that enforce- might be charged per container or bag. To ment agencies have the tools to address regu- encourage reductions in waste, govern- latory deviations. An enforcement agency or ments might levy lower fees for recyclable program should have the capacity to levy fines and compostable materials. (See elsewhere and apply other mechanisms to encourage below for discussions on other mechanisms compliance by punishing noncompliance. to cover the cost of waste management ser- vices, such as product charges, packaging fees, and carbon finance to reduce green- Institutional Context house gas [GHG] emissions.) • Systematic programs to monitor and measure An effective policy, legislative, and regulatory solid waste services: Such programs may be framework should be combined with institu- valuable tools in evaluations of the perfor- tional measures to eliminate gaps and overlaps mance of public or private waste manage- in the operational structure of the waste man- ment systems. Such programs should be agement sector. developed on the basis of appropriate metrics Government: An effective program should and benchmarks that provide a basis for involve ongoing senior-level coordination analyzing performance trends. A perfor- among municipal and national government of- mance database might be considered that ficials and agencies. Local government pro- would include historic data. Benchmark grams should involve more than merely those information on other cities in the metropoli- people and agencies directly active in the city, tan area, region, and country might be but, to encourage regional cooperation, also collected for such a database. Evaluations of people and agencies in the wider metropolitan trends might reveal positive or negative area. In the waste management sector, regional performance or progress that is slower than cooperation could achieve efficiencies and anticipated by local municipal officials. By economies of scale in treatment and disposal evaluating trends, the programs would be programs. Efforts should also be undertaken to able to respond effectively to shortfalls or strengthen regional coordination in strategic poor performance. planning. Operational structure: In many cities, a pub- • Local and regional planning tools for waste lic agency provides solid waste services, which management: Regional collaboration should may be an efficient means of achieving commu- be actively pursued to promote the most nity public health and environmental goals. comprehensive solutions to waste manage- However, promoting competition in delivering ment and to achieve economies of scale. waste management services may improve effi- Though a city might be capable of reaching ciency and services. Promoting private sector suitable economies of scale without seeking participation is an option for encouraging com- 300 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES petition in the waste management marketplace. A combination of metrics and benchmarks may Private sector participation may make particular be used to monitor system performance as the sense in certain areas, such as waste collection sector becomes modified (box 3.18). For exam- and disposal (for example, landfill construction ple, collection metrics might address the issue and operations), but it may be considered in all of uncollected waste in designated areas, the services. Private sector participation may also quantities of waste gathered per collection ve- be useful in ancillary activities. Vehicle mainte- hicle (requires scales at disposal sites or other nance, for example, might be contracted to a locations), and the average number of daily trips private sector provider, possibly with the con- per collection vehicle. It is advisable to consider tractual participation of vehicle fleets in other the development of systemwide benchmarks sectors. An effective private sector participa- rather than benchmarks for individual vehicles tion program would leverage a competitive en- because aggregate benchmarks strengthen vironment in which private companies provide comparisons with other cities and are more sound pricing and high-quality services. For as- useful in evaluating sectorwide interventions. sistance in assessing the options for private sec- To strengthen waste management, small- tor participation, relevant metric and bench- and medium-size enterprises might be tapped mark information should be collected on service to provide targeted waste collection and recy- levels and market trends within the city and in cling services. These enterprises often supply other cities with a mix of public and private ser- better services in areas inaccessible to collection vice providers. trucks. Additionally, recycling may promote However, waste management service deci- informal and creative employment opportunities, sions should be based on a consideration of such as waste picking. Recovered materials are ongoing and planned efforts to reduce waste. also valuable for primary industries, which use This minimizes potential conflicts, such as the them to produce new products, thereby stimu- problems raised if a contract has been awarded lating the local economy and providing income for the operation of an incinerator or landfill, to additional workers. but the contract is no longer needed because It is important that any private sector par- waste has been sufficiently reduced. ticipation alternatives pursued by local govern- BOX 3.18 Performance Metrics Specific waste management metrics in cities vary depending on the • Average tons collected per stop services provided. A waste collection operation might include the • Cost per stop factors noted below. Waste collection is a good sample subsector • Population served per stop because it is an integral part of a waste management system. • Cost per resident • Population served Common indicators for GHG projects might include the following: • Annual quantity of waste collected • Average system GHG emissions per ton of collected waste trans- • Annual quantity of recyclables collected ported to a transfer station, treatment facility, or disposal site • Annual total waste and recyclables collected • Annual collection cost • Average system GHG emissions per ton of collected waste recy- • Collection cost per ton cled, incinerated, or landfilled with or without gas recovery • Collection routes per week These indicators may be used to calculate a collection cost bench- • Total stops serviced per week (the number of times a truck stops mark that might then be used to track performance or assess eco- to collect waste) nomic efficiency relative to other programs. • Average stops per route A FIELD REFERENCE GUIDE | 301 ments be supported by proven procurement two critical characteristics are waste quantity methods, particularly those successfully tested and waste composition. in other cities and regions. Procurement meth- Quantity: Quantity is crucial in determining ods should address tendering (including the the size of a waste management system. As the transparency of the procurement process), con- population or economy of a city grows, per cap- tract design, contract management (including ita waste and total waste tend to increase (see accountability), and other issues. table 3.31). Reliable data on the quantity of waste being generated and managed in various urban areas are important in determining the size of Physical Systems, Technology, and the system, planning equipment purchases, and Spatial Concerns identifying the services needed for managing a city’s waste. The physical, technological, and spatial aspects Composition: Low-income cities tend to pro- of waste programs depend on factors unique to duce substantial organic discards, mainly food each city. An initial determination of the physi- waste. Food waste has a high moisture content, cal parameters of the existing waste manage- which can affect a waste stream’s suitability for ment system, the technologies used, and the alternative treatment processes. Systems that spatial requirements is crucial. A second step is must treat greater shares of food waste lend to assess alternative options that fit the guide- themselves to composting rather than incinera- lines of the program. tion because food waste will not generally auto- combust. Spatial characteristics Understanding the physical nature of a city is Waste system components critical to the development of a clear definition The processes used to manage solid waste might of existing and potential parameters. Baseline include the following: factors that need to be defined include the fol- • Waste storage at households or commercial lowing: establishments. Collection may also occur at • Population selected points that serve a number of these • Surface area (population density) groups. • Terrain and topography of a city and its sur- • Vehicle collection: This entails defining pick- roundings up frequency, equipment, and crew size. • Per capita income Besides truck collection, underground pneu- • Mix and location of economic activities, in- matic collection might offer advantages in cluding industrial (types), transport (freight urban areas with narrow streets that impede consolidation and warehousing), commer- truck collection. Under this scenario, waste cial (types), special institutions (types, such a is drawn by vacuum pressure to a collection medical facilities that generate infectious point where it is deposited into a container. wastes), residential (multifamily and single A pneumatic system includes trash receiving family) stations, an underground piping system, a vacuum blower that pulls waste through Waste characteristics pipes, air filters for particulates and odor, After establishing the factors that affect waste and a facility where collected material may generation and waste management operations, be stored until it is hauled to a treatment or one should seek to understand the characteris- disposal facility. Pneumatic systems have tics of the waste generated in a target city. The been used in smaller urban areas in Japan 302 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.19 An Innovative Waste Collection Approach In Curitiba, Brazil, the Green Exchange Program has been undertaken in slum areas inaccessible to waste collection vehicles. To encourage the poor and slum dwellers to clean up the areas and improve public health, the city started to offer bus tickets and vegetables to people who brought garbage to neighborhood centers. In addition, children were allowed to exchange recyclables for school supplies, choco- late, toys, and show tickets. The city purchases vegetables at dis- counted prices from farmers who have trouble selling abundant products. Through this program, the city saves the costs of arranging waste collection in slum areas, which often have inadequate roads, and helps farmers unload excess produce. The program also helps improve nutrition, transportation accessibility, and entertainment opportunities among the poor. Most important, slums have become Citizens bringing their garbage for collection. cleaner, and there is less litter, less disease, and less garbage dumped Source: Institute for Research and Urban Planning of Curitiba. in sensitive areas such as rivers. BOX 3.20 A Recycling Program Involving Citizens Curitiba’s Garbage That Is Not Garbage Program encourages people to separate discards into recyclable and nonrecyclable waste. To raise awareness of the program, the city is educating children on the impor- tance of waste separation and environmental protection. Campaign mascots have been created, and school activities have been launched. One to three times a week, trucks collect paper, cardboard, metal, plastic, and glass that have been sorted by households. This recycling saves the equivalent of 1,200 trees a day, and local parks contain dis- plays on the numbers of trees saved (Rabinovitch and Leitmann 1993; Hattori 2004). The money raised from selling recyclables supports so- cial programs, and the city employs the homeless and people in alco- hol rehabilitation programs in the garbage separation plant. Recycling The Garbage That Is Not Garbage Program. leads to other benefits. For instance, recycled fiber is used to produce Source: Institute for Research and Urban Planning of Curitiba. asphalt for road construction. Tire recycling has removed piles of dis- carded tires, which can attract mosquitoes that transmit dengue dis- ba’s waste is recycled, which greatly exceeds the 5 percent and 1 percent ease. Proper tire collection has decreased dengue disease by 99.7 per- recycling rates in Porto Alegre and São Paulo, respectively, where cent (Vaz Del Bello and Vaz 2007). Nearly 70 percent of the residents education on waste dissemination has not translated into significant participate in Curitiba’s recycling program. Around 13 percent of Curiti- impacts (Hattori 2004). and Sweden and in large complexes such as • Formal and informal (that is, waste picking) airports, shopping centers, and hospitals. In recycling: Recycling may take place at col- many developing countries, particularly in lection points, treatment facilities, or dis- slums, waste collection in urban areas with posal sites. In Curitiba, the city generated narrow streets may be accomplished through employment and formalized informal ac- innovative solutions. For instance, local resi- tivities through an innovative recycling dents and the poor may become directly in- program (box 3.20). volved in waste collection (box 3.19). A FIELD REFERENCE GUIDE | 303 • Collection at transfer stations: This collec- • Disposal sites for direct and residual wastes tion consolidates waste for transport to from households, commercial establishments, treatment and long-term disposal facilities. and treatment facilities: Disposal sites range from open and modified dumps (at the low- • Treatment facilities, including organic waste er end of environmental and public health composting (figure 3.60) or incineration with protection) to safer engineered landfills or without energy recovery: The heat released (figure 3.61). Disposal sites, especially engi- during combustion or other thermal process- neered landfills, create anaerobic condi- es may be used to generate both electricity tions as organic waste decomposes. and heat through cogeneration. However, given the high moisture content in much A by-product of anaerobic decomposition is municipal solid waste in Asia, officials there landfill gas (LFG). Typically about 50 percent should be cautious in pursuing thermal methane (a GHG), LFG may be recovered and processes that depend on autocombustion used for energy or burned (flared). (Natural gas because waste needs to have a moisture con- is composed of about 99 percent methane.) The tent of less than 50 percent to autocombust. recovery and combustion of LFG are potentially Though a supplemental fuel such as coal may eligible for carbon finance if a project meets the be used to heat waste so to evaporate water conditions of the Clean Development Mecha- and compel combustion, this fuel increases nism (CDM), which is a provision of the Kyoto energy needs, costs, and pollution. Municipal Protocol. officials should also avoid treatment process- A recovery system that uses LFG to generate es that have not been commercially tested. electricity is shown in figure 3.62. The complex Figure 3.60 Waste Sorting Plant and Windrow Composting Operation, Cairo Source: Photos by Charles Peterson. Figure 3.62 Central Electricity Generation Facility and Flare for Landfill Gas, Tianjin, China Source: Peterson and others (2009). Figure 3.61 A Compactor Operating on a Landfill Source: Photo by Charles Peterson. 304 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES includes blowers (vacuum pumps) to extract gas A stakeholder participation program should from the landfill, combustion generators for provide a thorough plan for soliciting and track- power production, and a flare to burn excess ing comments and reporting on relevant actions. LFG. Periodic meetings should be organized during a program’s lifespan to engage stakeholders. In addition, an independent call center should be Stakeholder Dynamics considered to enable stakeholders to register comments on the waste management system Urban residents, workers, and visitors generate (questions, complaints, and praise). Public meet- waste in their daily lives by preparing meals, ings, call centers, and other communication transacting business, and participating in activi- mechanisms should track the nature of contacts, ties that use the goods and services of cities. Suc- and efforts should be made to monitor actions to cessful waste management interventions depend resolve issues, questions, and complaints. The on the cooperation and participation of these stakeholder program should monitor the time stakeholders in the waste management system. needed to resolve issues. Summary information The involvement of stakeholders in a waste on comments, issues, actions, and performance management program should be ongoing. It is should be presented to stakeholders on a regular important that stakeholders be interested in the basis (often quarterly). Yokohama, Japan, for ex- program and that their suggestions and ideas be ample, has been successful in involving stake- considered as the program evolves. holders in waste reduction activities through BOX 3.21 Waste Reduction through Stakeholder Engagement, Yokohama Yokohama’s G30 Action Plan identifies the responsibilities of stake- munity associations and the public to explain waste reduction holders, including households, businesses, and the city government, methods, including ways to separate waste. (In Yokohama, 80 per- in achieving waste reduction through the 3Rs (reduce, reuse, and re- cent of the population participates in neighborhood community cycle), the principle that the polluter pays, and extended producer associations; see City of Yokohama 2008.) The city has also spon- responsibility (City of Yokohama 2003). The plan provides mecha- sored 470 campaigns at all railway stations and about 2,200 aware- nisms and detailed action programs for an integrated approach to ness campaigns at local waste disposal points and other places (City reduce waste. For example, citizens must separate their waste into 15 of Yokohama 2006). Campaign activities have also been carried out categories and dispose of it at designated places and times based on at supermarkets, on local shopping streets, and at various events. the relevant waste category. Businesses are asked to provide prod- The logo for G30 has been printed in city publications and displayed ucts and services that create less waste and to implement the 3Rs. on vehicles and at city events. As one of the largest generators of waste, the city is committed to As a result of these efforts, by fiscal year 2005, Yokohama achieved reducing waste and working together with citizens and business. the 30 percent waste reduction target that had been set for fiscal To raise awareness of the G30 approach, the city has conducted en- years 2001 to 2010. By fiscal year 2007, the city had reduced waste by vironmental education and promotional activities and requested 38.7 percent despite an increase in the city’s population of 165,875 public action to achieve the G30 goal. To promote waste separation, since 2001. The benefits are outlined as follows: it has held more than 11,000 seminars among neighborhood com- BENEFIT AMOUNT Total waste reduction, fiscal years 2001 to 2007 623,000 tons (−38.7 percent) Economic benefit US$1.1 billion capital costs saved because of incinerator closure US$6 million operating costs saved because of incinerator closure Life of landfill sites extended CO2 reduction, fiscal years 2001 to 2007 840,000 tons Note: The calculations are based on an exchange rate of ¥100 = US$1. A FIELD REFERENCE GUIDE | 305 comprehensive public campaigns and other ef- electrical bills. Such approaches do not provide forts to raise awareness (box 3.21). economic incentives for the generators of waste to increase recycling or reduce waste. Nonethe- less, such imperfect proxies at least provide a Economic and Financial Aspects basis for the recovery of all or a share of system costs. Three economic and financial factors influenc- ing the waste management sector are institu- Product charges tional capacity, financial sustainability, and the A second option for recovering costs that might cost efficiency of service delivery. stimulate recycling or waste reduction is the application of a charge on products in the waste Institutional capacity stream. This polluter pays principle has been The important element is the capacity of the applied in some European countries through a municipal financial management team, the suc- packaging fee, which is used to provide revenue cess of which depends on effectively tracking to help pay for waste management. This concept and managing cash inflows from cost recovery has yet to be applied in East Asia, but it might be instruments (see below). The financial team a workable solution and a step forward. also needs to manage cash outflows successfully. Cash outflows are incurred for capital and Carbon finance operating expenditures. Carbon finance, a program designed to support As a complement to cost recovery instru- GHG emission reductions through waste man- ments, budget allocations are normally needed agement and other technologies, may generate to support capital and operating expenditures. revenue to cover program costs. Carbon finance Budget allocations are usually supplied by local procedures are detailed in the Kyoto Protocol’s governments, but also provincial and national CDM provision (box 3.22). The mechanism en- agencies. International donor assistance may be ables industrial countries that have ratified the a source of revenue, especially for capital invest- Kyoto Protocol to purchase emission reductions ments. to meet their Kyoto Protocol targets through projects in developing countries. Financial sustainability In the waste management sector, emissions The financial sustainability of a program depends may be reduced by capturing and using LFG, on the program’s ability to generate sufficient composting organic waste, and incinerating cash flows to cover program expenditures waste. Box 3.23 details an example of an LFG through various measures. capture project in Tianjin, China. As the organic fraction of solid waste decomposes in a landfill, User charges anaerobic conditions lead to the production of A common way to generate cost recovery is to methane, a combustible GHG that has 21 times charge users for received services. From a fair- the global warming potential of carbon dioxide. ness perspective, users should be charged on the Efforts are under way to devise a replace- basis of quantities of discarded waste. However, ment accord for the Kyoto Protocol, which ex- this may be administratively challenging even if pires at the end of 2012. The current situation households and commercial operations receive presents short-term uncertainty about the future services directly. Because waste pickup in many form of carbon finance. However, many proj- cities targets multiple households and commer- ects with expected preparation times of up to cial operations, charges may be based on other two years or longer are still being developed. factors, such as floor space or percentages of 306 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.22 The Clean Development Mechanism and Waste Management The Kyoto Protocol. One of the early efforts to address global Methane. The most frequent GHG associated with waste manage- warming was the formation of the Intergovernmental Panel on Cli- ment is methane, which is generated amid anaerobic conditions mate Change by the World Meteorological Organization and the in waste disposal sites. Methane has a global warming potential United Nations Environment Programme in 1988. The panel compiles that is 21 times greater than the corresponding potential of carbon published scientific and technical literature on global warming, its dioxide. potential impacts, and the options for adaptation and mitigation. Waste management programs offer several options for generat- Another effort to stabilize GHG emissions was the establishment, ing emission reductions. Two common options involve capturing in 1994, of a voluntary program under the United Nations Framework and using methane in landfills and avoiding methane by composting Convention on Climate Change (http://unfccc.int/2860.php) follow- organic waste. Emission reduction credits may be earned by inciner- ing the Earth Summit in Rio de Janeiro. The failure of the voluntary ating waste with or without energy recovery. The World Bank is also program to achieve the desired results led to the legally binding Kyoto developing a methodology for earning emission reduction credits Protocol. The Kyoto Protocol entered into force in February 2005. through recycling. The Clean Development Mechanism (http://cdm.unfccc.int/index. Waste management methodologies. Because landfill disposal is the html), a provision of the Kyoto Protocol, allows industrialized coun- baseline for assessing emission reductions, potential emission re- tries listed in annex 1 of the protocol to purchase emission reduction ductions may be estimated using a first order decay model that re- credits from developing countries to meet their established emis- lies on multiple variables and default values. Critical variables include sion reduction targets. More specifically, annex 1 countries generate the composition rates of organics in a waste stream (food, other credits by supporting projects that reduce emissions in developing putrescibles, paper and textiles, and wood) and average annual pre- countries, sometimes through new technologies in waste manage- cipitation and temperature. Areas with higher precipitation and ment. Emission reductions under CDM programs may be traded temperature normally show higher decomposition rates based on among buyers in annex 1 countries. Because emission reductions are data in the recent Intergovernmental Panel on Climate Change tied to performance, carbon finance programs are a source of oper- guidelines (see http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol5. ating revenue rather than capital investment. html). A range of methodologies has been approved by the CDM Ex- For liquefied petroleum gas projects, estimates may provide rea- ecutive Board to help determine eligible projects, including those in sonable forecasts of emission reductions, but monitoring equip- waste management. A common feature of all methodologies is the ment is needed to track actual gas flow and composition, which requirement to establish the baseline emissions that would have oc- permits calculations of combustion efficiency and the methane curred in the absence of a CDM project. In waste management, a captured and destroyed. The combustion of captured methane in a common baseline assumes waste disposal exclusively in landfills flare or in the production of energy (commonly, electricity) releases and in calculations of the associated GHG emissions based on this carbon dioxide. However, because the carbon dioxide is associated assumption. with biomass, it is considered carbon neutral. Methane avoidance A CDM intervention must also be additional (that is, it must projects such as aerobic composting depend entirely on calculated create additional emission reductions that would not have been emission reductions because there is no way to measure methane achieved without the intervention). The assessment of project ad- that is not produced. ditionality is based on any of the following conditions: Investment There are two common types of methodologies in waste man- analysis may demonstrate that the internal rate of return to a proj- agement projects (liquefied petroleum gas and methane avoidance). ect without carbon finance revenue would be insufficient to jus- The specific methodologies for both large- and small-scale projects tify the implementation and maintenance of the project. Addi- (less than 60,000 tons of equivalent carbon dioxide per year) are tionality may also be demonstrated by showing that the applied described in box 3.23. technology is not used in the country where the project is located Emission reductions may be gained by displacing conventional or that the proposed CDM project is not a common practice in the (fossil fuel) power generation sources on the electricity grid. Meth- host country. ane recovered from gas capture programs is used to generate elec- tricity. The methodology described in box 3.23 has been applied in the context of a small-scale power generation project (less than 15 megawatts). A FIELD REFERENCE GUIDE | 307 About 15 percent of GHG consists of meth- a range of activities designed to reduce GHG ane attributable to anthropogenic sources. More emissions, including LFG capture. LFG projects than 23 percent of GHG is methane and other account for about 5 percent of registered mech- non-carbon dioxide (non-CO2) gases from an- anism projects, most of which use captured thropogenic sources. Methane emissions from methane for energy recovery (typically, elec- municipal waste disposal sites account for 12 per- tricity). Projects without suitable access to en- cent of global methane emissions, or an estimat- ergy markets or modest gas flow rates flare the ed 730 million tons of equivalent carbon dioxide. recovered methane. In China, LFG projects re- Globally, municipal waste disposal sites are the cover energy and flare only as a backup because fourth-largest contributor of non-CO2 GHGs. the Designated National Authority (the entity Although proportionately small, non-CO2 GHGs responsible for CDM oversight in a country) have a much greater effect on global warming encourages electricity generation. relative to carbon dioxide. In November 2008, there were 1,587 regis- Cost-efficient service tered CDM projects. Registration is the final Another economic factor in waste management step in the development of a mechanism project is promoting the cost-efficient delivery of ser- prior to the start-up of operations. An indepen- vices through appropriate capital investments dent validator must annually verify achieved and operations. emission reductions. Registered projects cover BOX 3.23 Landfill Gas Capture and Use in Tianjin, China Tianjin’s Shuangkou landfill, the first modern landfill built in Tianjin, tons of equivalent carbon dioxide in GHG emission reductions, conforms to China’s standards, which mandate a bottom liner and a which is 70 percent of the expected reductions during the first sev- system for leachate collection and treatment. The design and con- en years of operation. The World Bank has an option to purchase an struction of the landfill began in 1999, and the site started receiving additional 470,000 tons of equivalent carbon dioxide. waste in 2001. The landfill was financed by the World Bank as part of Tianjin Clean Environment and Environmental Engineering Com- a broader loan program for Tianjin. pany. Formed in August 2005, the company is part of the Tianjin A daily average of about 1,300 tons of household waste is deliv- Construction Commission. It was authorized by the Construction ered to the landfill. The 60-hectare landfill has a capacity of 8.5 mil- Commission and the Environmental Sanitation Commission, both lion cubic meters, equivalent to 7.4 million tons of waste and about under the municipality of Tianjin, to implement the Shuangkou LFG 15 years of life at the current rate of infill. At closure, the depth of recovery and utilization project as project developer and operator waste will be about 34 meters. and as seller of the emission reductions. The operation of the The decomposition of waste in the anaerobic conditions of a Shuangkou landfill is managed by the Tianjin Solid Waste Treatment landfill generates methane. The methane is collected in pipes from a Center, a division of the Environmental Sanitation Commission. series of wells that have been drilled where the waste is deposited. Additional wells will be drilled as waste is deposited in new areas. World Bank. The World Bank is a trustee of 12 funds and facilities for The captured gas is transported in pipes to a central facility where it which it negotiates long-term purchasing agreements and manages is burned to produce electricity. The electricity is sold to the North relations with the associated projects. In the case of the Tianjin LFG China Power Grid. A flare is used if there is excess methane or if the recovery program, the World Bank is the trustee for the Spanish generators are out of service, such as during maintenance. The re- Carbon Fund. covery system began operations in June 2008. Project registration. The Tianjin project was registered with the The LFG is about 50 percent methane; the balance is composed CDM Executive Board on August 27, 2008, which means the project of carbon dioxide and other gases. The combustion of the methane has been able to earn certified emission reductions since that date. during power generation or flaring destroys the methane. Under the (For specific information on the project, visit http://cdm.unfccc.int/ agreement signed with the World Bank, the Tianjin Clean Environ- Projects/DB/JQA1193375340.58/view.) ment and Environmental Engineering Company Ltd will sell 635,000 308 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Capital investment ————. 2006. “Yokohama G30 Plan: Kenshou to kongo no tenkai hi tsuite” 横浜G30プラン 「検証と今後の Investment in equipment is an important first 展開」 について [Yokohama G30 Plan: Verification step in this process. The identification of appro- and next steps]. Resources and Wastes Recycling priate equipment begins before procurement Bureau, City of Yokohama, Yokohama, Japan. after sector managers have determined the rel- http://www.city.yokohama.jp/me/pcpb/keikaku/ G30rolling/ (accessed February 2009). evant specifications. It is important to attain a ————. 2008. “Kankyou model toshi teian sho” 環境モ balance between capital expenditures for equip- デル都市提案書 [Proposal for Eco-model cities]. ment, the operating and maintenance costs, and Climate Change Policy Headquarters, City of the useful lifespans, which are influenced by Yokohama, Yokohama, Japan. http://www.city. yokohama.jp/me/kankyou/ondan/model/ operating environments. Reforms to the waste (accessed February 2009). management system may also have beneficial Hattori, Keiro. 2004. “Ningen toshi Curitiba: kankyou, effects on capital and operating expenditures, koutsuu, fukushi, tochiriyou wo tougou shita as evident in Yokohama. machizukuri” 人間都市ク リチバ―環境 ・ 交通 ・福 Following the procurement of capital assets, 祉 ・ 土地利用を統合したまちづく り [Human city Curitiba: Urban planning integrating environment, a sound program of preventive and scheduled transportation, social aspects, and land use]. maintenance should be established to maximize Gakugei Shuppan Sha, Kyoto. value. Preventive maintenance helps avoid un- Pablo, Carlito. 2007. “Rats, Yes, but Bacteria Love scheduled downtime, which has a monetary Garbage Strikes Too.” Health Features, July 26, Straight.com, Vancouver. http://www.straight. cost. It is important to keep a supply room well com/article-102902/rats-yes-but-bacteria-love- stocked with lubricants, supplies, and spare garbage-strikes-too. parts in line with recommendations from equip- Pagiola, Stefano, Roberto Martin-Hurtado, Priya ment manufacturers. Shyamsundar, Muthukumara Mani, and Patricia Silva. 2002. “Generating Public Sector Resources to Finance Sustainable Development: Revenue Operations services and Incentive Effects.” World Bank Technical Supporting private sector participation and re- Paper 538, Environment Series, World Bank, engineered public operations may improve the Washington, DC. cost efficiency of services in the waste manage- Peterson, Charles. 1989. “What Does ‘Waste Reduction’ Mean?” Waste Age, January. http://www.p2pays. ment sector. In either case, it is important to es- org/ref/10/09702.pdf. tablish goals and metrics to track performance. Peterson, Charles, Zarina Azizova, Qi Wenjie, Liu In addition, historical data and lessons from Baorui, and Jane Huang. 2009. “Landfill Gas other cities and regions may be collected to Capture and Electricity Generation and the Clean Development Mechanism (CDM): Shuangkou compare options and devise strategies. Landfill, Tianjin, China.” Presentation at the 12th Annual Landfill Methane Outreach Program Conference, Baltimore, January 13. References Rabinovitch, Jonas, and Josef Leitmann. 1993. “Environmental Innovation and Management –ºin Curitiba, Brazil.” Working Paper 1, Urban City of Yokohama. 2003. “Yokohama shi ippan Management Programme, United Nations Human haikibutsu shori kihon keikaku, Yokohama G30 Settlements Programme, Nairobi. plan” 横浜市一般廃棄物処理基本計画、 横浜G30 プラン [City of Yokohama, master plan for Vaz Del Bello, Giovanni, and Maria Terezinha Vaz. management of general waste: Yokohama G30 2007. A Convenient Truth: Urban Solutions from Plan]. City of Yokohama, Yokohama, Japan. http:// Curitiba, Brazil, DVD. Directed by Giovanni Vaz www.city.yokohama.jp/me/pcpb/keikaku/kei1. Del Bello. Felton, CA: Maria Vaz Photography, in html> (accessed February 2009). association with Del Bello Pictures. A FIELD REFERENCE GUIDE | 309 Managing the Spatial Structure of Cities Introduction land and shelter for existing and new citizens. Mobility is important because the productivity Cities enjoy high productivity because their of large labor markets is important for cities, and large consumer and labor markets drive in- lack of mobility fragments labor markets and de- creasing returns to scale. The theoretical and creases productivity. Affordability is crucial be- empirical literature correlating the wealth of cause poor rural migrants often become middle- cities to urban spatial concentration is abun- class citizens in cities. A city should have the dant and no longer controversial. National data capacity to shelter migrants during this transi- show that the economic output of large cities is tion. Ignoring the needs of migrants for adequate much greater than suggested by the population shelter impedes assimilation in the formal econ- shares of these cities. The World Bank’s World omy and has a high social cost. Development Report 2009: Reshaping Economic Geography and the 2009 report of the Commis- sion on Growth and Development, Urbaniza- Maintaining Mobility tion and Growth, summarize and document the theoretical and empirical arguments justifying Maximizing the economic advantages of spatial the economic advantages of concentrating eco- concentration hinges on the capacity of work- nomic activities in large cities (see World Bank ers to find employment anywhere in a city and 2009; Spence, Annez, and Buckley 2009). More- the ability of employers to select workers among over, it is widely accepted that effective urban a large and dispersed pool of labor. Maintaining management and the spatial structure of cities the mobility of people and goods within a met- are crucial to success. ropolitan area is one of the conditions for real- Cities in the 21st century need to confront izing economic benefits. Congestion acts as a myriad development challenges because of rapid tax on city productivity because it impairs the growth in income, population, and built-up ar- free movement of goods and people. In 2000, eas. However, developing one-size-fits-all mod- congestion in 75 metropolitan areas in the United els or forms of urban development is unrealistic States caused fuel and time losses valued at given the diversity in urban culture, history, US$67.5 billion (Downs 2004). Those losses ex- economy, climate, and topography. ceeded the value of Kenya’s 2008 GDP of Nonetheless, cities face two fundamental spa- US$61.7 billion (CIA 2009). If cities are unable tial challenges as they absorb new populations to maintain mobility, the tax of severe conges- and manage urban transitions: maintaining mo- tion may surpass the economic benefits of spa- bility and enabling the provision of affordable tial concentration. In the long run, a city that is A FIELD REFERENCE GUIDE | 311 unable to sustain mobility is bound to decay cient mobility. However, urban planners often economically. favor one transportation mode at the expense of Maintaining the mobility of people and goods others. For instance, in cities where under- should be a prime objective of land use planning ground metros are being built, the high capital and infrastructure investments. Mobility has two costs of the metro often divert needed funds aspects: location mobility among firms and from other modes of transportation, such as households and commuting mobility of workers buses. In other cities, cars are heavily subsi- and consumers. dized by low gasoline prices, free parking, and street designs. In both cases, less mobility is the Location mobility among firms and result. households Though planners in the past decade have Location is important for residences and work- tried to privilege one mode of transportation places. People and firms should be able to buy over others, they should acknowledge that ev- or rent residences or business facilities any- ery city needs a multimodal transportation sys- where in a city under as few restrictions as tem and that consumer safety, affordability, and possible. The traditional principle of locating convenience are the main aims of transporta- low-income housing close to industrial areas in tion modes. distant suburbs is based on a 19th-century vision The choice of a dominant transportation mode of labor. Relative to factories, the service sector or other modes in a multimodal system should be in a modern city employs more unskilled labor. linked to a city’s spatial structure. City managers Poor people should have access to all areas of a should not arbitrarily select a city’s dominant city, and zoning plans should not segregate low- transportation mode, whether transit, car, or bi- income housing into predesignated areas. cycle. Depending on a city’s spatial structure, Real estate transaction costs should be as low among other factors, consumers decide for them- as possible to ensure that households and firms selves which transportation mode is the most are able to select the best locations they can convenient in terms of speed, comfort, and cost. afford and move quickly to better locations if City managers, however, may influence a city’s economic circumstances or external conditions spatial structure through regulations and infra- change.1 Tying housing subsidies for poor house- structure investments. In high-density, mainly holds to low-income housing projects prevents monocentric cities, mass transit may be an effi- mobility and tends to increase unemployment. cient choice for commuters. However, in low- Zoning should not segregate land uses arbi- density-polycentric cities, cars, motorcycles, and trarily because this restricts firm and household taxis are often the most convenient travel modes. mobility. Zoning in modern cities should segre- gate only those economic activities that create Mobility, spatial structures, and real hazards and nuisances. It should not apply transportation networks inherited and arbitrary categories that need- Land developments and transportation options lessly curtail mixed use development. determine the patterns of daily commuter trips to and from work. As household incomes rise, The commuting mobility of workers and noncommuting trips to shop, pick up children, consumers visit family, or undertake recreation become In all but the largest cities, workers and con- more important. The proportion of commuting sumers should be able to reach any point in the trips over other trips thus decreases. Figure 3.63 metropolitan area within an hour. Ideally, mul- illustrates the most usual trip patterns in met- timodal transportation systems ensure suffi- ropolitan areas. 312 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES In monocentric cities (figure 3.63, part A) cause car use does not favor concentration in where most jobs and amenities are concentrated any specific area. in central business districts (CBDs), transit is the Figure 3.63, part C illustrates the urban village most convenient transportation mode because model that is often included in urban master most commuters travel from the suburbs to the plans, but is difficult to produce in the real world. CBD. Trip origins might be dispersed, but the In this model, the city includes many centers, CBD is the most common destination. Small col- and commuters travel only to the center closest lector buses may bring commuters to radials, to their residences. Under this model, everyone where bus rapid transit or underground metro may walk or bicycle to work, even in a large systems may usher them at high speed to the metropolis. For this model to function, urban CBD. Monocentric cities are usually dense (that planners must be able to match residences and is, above 100 people per hectare). workplaces perfectly. However, this notion often In low-density, polycentric cities (figure 3.63, contradicts the economic justification for large part B), few jobs and amenities are in the city cities. Employers in large cities do not select center, and most trips are from suburb to sub- employees based on where they live, and spe- urb. There is a large number of possible travel cialized workers do not select jobs based solely routes, but few passengers per route. The trips on proximity to residences. Moreover, the urban have dispersed origins and dispersed destina- village model implies a systematic fragmenta- tions. In this type of city, individual transporta- tion of labor markets that is not economically tion modes or collective taxis are more conve- sustainable in the real world. nient. Mass transit is difficult and expensive to In certain suburbs of Stockholm, urban operate because of the multiplicity of destina- regulations permit developers to build new tions and the limited passengers per route. residential units only if they can show that a Polycentric cities usually have low densities be- corresponding number of jobs exist in the Figure 3.63 Spatial Structures and Trip Patterns Source: Author compilation (Alain Bertaud). A FIELD REFERENCE GUIDE | 313 neighborhood. Meanwhile, the five satellite these neighborhoods, planners may provide towns around Seoul offer examples of the prob- greater commercial street frontage, often with lems with urban village layouts. When the wide sidewalks and attractive window spaces, towns were built, jobs and inhabitants were supporting an array of coffeehouses, cleaners, being carefully balanced, and the satellite com- grocery stores, hardware stores, restaurants, munities were expected to be self-contained in and other local shops. Such a strategy encour- housing and employment. However, recent sur- ages local commerce, supports walking and veys show that most people living in the new bicycling trips, and enhances urban safety and satellite towns now commute to work in the attractiveness. Moreover, shorter nonwork trips main city, while most jobs in the satellite towns result because services are located close to are taken by citizens from the main city. households. The composite model in figure 3.63, part D Failure to expand traditional city centers is the most common urban spatial structure. through infrastructure and amenities weakens This model includes a dominant center, but a transit systems in the long run, as the number of large number of jobs in the suburbs. Under this jobs in city centers stagnates or falls, while addi- model, most trips from the suburbs to the CBD tional jobs are being created in suburban areas. use mass transit, while trips from suburb to City structure is path dependent. Once a city suburb use individual cars, motorcycles, or has become mainly polycentric, the return of collective taxis. the city to a monocentric structure is nearly The composite model might be an interme- impossible. Monocentric cities, however, may diary stage in the progressive transformation of become polycentric if the traditional centers a monocentric city into a less dense and polycen- decay. The inability to manage traffic and oper- tric one. As population grows and the urban ate an efficient transit system is a main factor built-up area expands, the city center becomes explaining the decay of traditional CBDs. more congested and loses its attractiveness, which was based on easy access and communi- The space required by traffic and parking cation stemming from spatial concentration. make transit indispensable for transportation As a city grows, CBD decay from congestion to dense city centers is avoidable. Good traffic management, timely Transit is viable as a dominant mode only in transit investments, strict parking regulations, servicing a dense business or commercial core. urban environment investments (pedestrian Not surprisingly, a car-dominant mode of trans- streets), and land use reforms permitting verti- portation is incompatible with dense city cen- cal expansion contribute to reinforcing the city ters. Cars occupy a large and incompressible center and its attractiveness to new business amount of space if they are moving or if they are and urban commuters. In New York, Shanghai, parked. In addition, cars require more street and Singapore, such measures have been rea- space as their speeds increase. sonably successful. However, coordinating Unfortunately, many city managers consider policies between investments and regulations is public parking in downtown areas as a munici- often difficult. Such coordination has to be exe- pal responsibility that should be subsidized. cuted consistently over long periods to enhance The subsidies constituted by free or quasi-free the viability of city centers. parking in downtown areas are not trivial. A car One way to reduce noncommuting (non- parked on or off the street uses about 14 square work-related) trips, while enhancing the vibrancy meters of costly real estate, which might other- of a city is to develop mixed use neighborhoods wise be rented or bought at market prices. The that reflect intelligent urban design. Within private parking spaces provided at the bottom 314 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES of the Marina Towers in Chicago (figure 3.64) suggest that car parking is and should be con- sidered commercial real estate and not a public good provided by the municipality. Figure 3.65 shows the area of street space per person in selected neighborhoods in various cities. The street area as a percentage of total area varies from neighborhood to neighbor- hood (in the case studies shown in the figure, from 11 percent to 50 percent). The densities (or land area per person) vary across neighbor- hoods (in the case studies, from 18.00 people per hectare to 1.65 people per hectare). Resi- dential density is used throughout because it is usually the only available density measure. However, for the two New York neighborhoods (Midtown and Wall Street), job density is also provided. The figure shows the street area one car re- quires for on-street parking (dotted horizontal line) and for moving at 15 kilometers per hour Figure 3.64 Parking Space as Real Estate at Marina and 30 kilometers per hour. It shows that, at cer- Towers, Chicago tain densities, a parked car uses more space than Source: Photo by Alain Bertaud. Figure 3.65 Car Space Requirements and Available Space Densities Source: Author compilation (Alain Bertaud). Note: km = kilometer; km/h = kilometers per hour; m2 = square meter; p/ha = person per hectare. A FIELD REFERENCE GUIDE | 315 the street space available per person. In Mid- Energy costs are more important for individual town, New York City, the available street space transportation options than for transit. If energy per worker is about 0.70 square meters. A parked prices increase, low-density, polycentric cities car requires a much larger 14 square meters, and reliant on car transportation see transportation a car moving at 15 kilometers an hour requires costs increase in nearly the same proportion. about 40 square meters.2 If every worker were Most low-density, polycentric cities in the United driving a car to work, 3 hectares of parking would States were built when energy prices were gen- be needed for each hectare of land, which would erally below US$50 per barrel of oil in real terms. require about six floors devoted solely to park- It is uncertain, absent a rapid technological ing. In contrast, Glen Rock, New Jersey, a suburb breakthrough, that these cities could maintain a of New York City, has sufficient street space to unified labor market if the price of a barrel of oil allow every resident to drive a car simultaneous- was, say, US$200 over a sustained period. ly at more than 30 kilometers an hour. The spatial structure of cities is at the nexus of New York City is not unique. Many urban three fundamental urban objectives: mobility, af- neighborhoods in developing countries have res- fordability, and transportation-related energy ef- idential densities similar to Midtown’s densities. ficiency. In low- and middle-income cities, main- Null Bazar in Mumbai, for instance, has a resi- taining a dominantly monocentric structure is a dential density of 1,600 people per hectare, which precondition for maintaining worker mobility, a is similar to that in downtown Mumbai. The Al larger share of transit trips, and adequate reve- Mounira neighborhood in Cairo has a similar nue in case energy prices spike. density. Limited street space in these neighbor- The spatial distribution of populations in hoods restricts car ownership to around 40 cars Gauteng, South Africa, and Jakarta, Indonesia per 1,000 people. (figure 3.66), illustrates different urban spatial In these dense cities, transit is and will be the structures and their consequences for transit only way to provide adequate mobility. Some operation. The classical profile of Jakarta, streets may be widened in strategic areas, but which has significant residential densities close never sufficiently to allow cars to be the main to the city center, facilitates the operation of a mode of transportation. The failure to provide transit system (trains and buses) that is conve- convenient transit services in dense cities will nient to users. In contrast, the dispersion of rela- result in less mobility for a large share of the pop- tively high population densities in Gauteng ulation. Without adequate mobility, labor mar- explains the dominance of individual cars among kets in large cities will become fragmented, and middle- and high-income households and col- these cities will be less productive. lective taxis among low-income households. The dispersed structure of Gauteng is partly Why does a city’s spatial structure matter? attributable to the city’s history of apartheid. Low-density, polycentric cities may be viable, but Subsidies are offered to low-income households are they efficient and socially desirable? These in distant settlements, but these subsidies can- cities are viable only if household income is suf- not be readily used for transportation. Suppli- ficiently high to allow people to buy and operate ers may have derived benefits from building cars and if suburban densities stay low (below 50 these settlements on a large scale, but the settle- persons per hectare). Moreover, those people ments do not provide convenient access to work. who cannot afford or drive cars, such as the poor However, transit should not be considered and older citizens, may be dislocated from job the only means of transportation. Delivering opportunities under this model, yet have little freight necessarily involves cars and trucks, and recourse to adequate transit alternatives. cars will always comprise some share of com- 316 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Figure 3.66 A Three-Dimensional Representation of the Spatial Distribution of Population, Gauteng, South Africa and Metropolitan Jakarta, Indonesia, 2001 Source: Author compilation (Alain Bertaud). Note: km = kilometer; M = million. muting trips. The challenge is to maintain a bal- market plays a fundamental role in determining ance across modes to minimize the vulnerability urban form. Typically, a government’s sphere of to a rise in energy prices and to reduce conges- action is limited to infrastructure, land use reg- tion and pollution by harnessing the available ulations, and taxation. The sections below ad- technology. dress how governments may use market forces Cities have complex structures that constantly to influence the shapes of cities. evolve. Technology also evolves, sometimes un- The interaction of market forces with govern- predictably. Introduction of cars like the Tata ment taxation, transportation investments, and Nano (a very small, two-cylinder car) and re- land and tenure regulations is complex. This in- search in China to develop a low-cost electric car teraction affects spatial layouts. Table 3.33 sum- may reverse some of these assumptions, but like- marizes the impacts of government measures on ly not all of them. Moreover, individual cars, be- spatially linked market factors (that is, land sup- cause of their space requirements, will always be ply and prices in city centers and suburbs) and incompatible with high-density city centers, spatial development (that is, the dispersion and such as those in Cairo, Mexico City, Mumbai, concentration of population and jobs). New York, and Shanghai. It is neither good nor bad per se whether government actions favor concentration or dis- Spatial structures, regulations, and markets persion. Assessing value depends on a city’s Urban spatial structures matter. However, gov- long-range policy and the starting point. Job ernments are not the sole actors that influence dispersion would be negative in a city that has spatial structures. For example, the real estate invested heavily in a radial transit system be- A FIELD REFERENCE GUIDE | 317 Table 3.33 The Impact of Government on Land Markets, the Informal Sector, and the Spatial Structure of Cities Source: Author compilation (Alain Bertaud). Note: Increase = +; decrease = –. cause many jobs would be out of reach of the in Bangalore, India, the local government has transit system. However, dispersion might be a financed a bus rapid transit system that tends to positive in a city that mostly relies on minibuses concentrate jobs in the city center. At the same and cars because dispersion would likely relieve time, the government limits the floor area in the congestion and provide cheaper land for hous- CBD to a ratio lower than in the suburbs, thus ing and businesses. preventing the concentration of jobs that justi- The government actions shown in table 3.33 fied the bus system. are often implemented with insufficient con- This type of policy contradiction between sideration of long-range objectives and im- two branches of local government—transport pacts on land and overall urban form. For in- and land use planning—is typical. Transport stance, the goal of building ring roads is engineers desire high job and population usually to alleviate congestion by allowing densities along transit routes to ensure a through traffic to bypass city centers. Howev- large number of transit passengers. Planners er, little thought is typically given to the im- facing congestion in city centers find it easier pacts on land supplies and on prices along ring to mandate decreased densities to alleviate roads and in other affected areas. congestion. Because local governments often support ur- Though regulations significantly affect city ban regulations and investments focused on shape, market forces have the most influence on short-term objectives, government actions and urban spatial structures in the long run. Market goals may contradict each other. For instance, forces particularly affect the spatial distribution 318 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES of densities. In a monocentric city, land prices increase land supplies more rapidly than re- fall as one moves away from the city center. In quired by the needs of growing populations; polycentric cities, land prices tend to decrease increases in household income and decreases in from the centers of built-up areas, though usu- household size allow people to consume more ally at a slower pace than in monocentric cities. land and floor space; and diversification and Where land prices are high, households and specialization in economic activities require firms tend to consume less land. Population and more land and floor space. job densities thus tend to be higher in CBDs or In China, for instance, cities managers have other urban centers and lower in suburbs. become increasingly alarmed by growing per In Bangalore, the regulatory floor area ratio capita land consumption, and they have taken (FAR) is lower in the city center than in the sub- measures to curb sprawl by making land devel- urbs. However, population densities are higher opment more difficult or expensive or by in the center than in the suburbs because of the imposing quotas on land development. Many high cost of land. Households in Bangalore’s cities in other countries have taken measures to city center consume much less floor space than constrain the supply of land by delineating they would consume if the city’s FAR were boundaries for urban growth or establishing higher. In Bangalore’s case, FAR regulation has quotas for land development that boost the been unable to counteract market forces in prices of land and housing, which often shaping urban structures. adversely affect urban dispersion. The density profiles of most large cities sug- It is not possible to establish optimal per cap- gest that the traditional monocentric city model ita rates of urban density or land consumption is still a good predictor of density patterns de- that are completely consistent over time. Land spite the fact that cities are becoming increas- is an input in the production of floor space. ingly polycentric. These profiles demonstrate Where land is expensive, developers (regula- that markets remain the most important force tions permitting) will substitute capital for land for allocating land despite price distortions by increasing FARs and densities. Where land is caused by direct and indirect subsidies and ill- cheap, such as in suburbs, substituting capital conceived land use regulations. The profiles of for land is not justified, and FARs and densities population densities of 12 cities on four conti- are low. A financially optimum density may be nents shown in figure 3.67 demonstrate that, temporarily achieved during an area’s develop- despite the economic and cultural differences ment provided the prices of inputs (that is, land among these cities, markets have played an im- and construction) are not too distorted by regu- portant role in shaping the distribution of pop- lations or subsidies. Without price distortions ulations around the centers. All the cities shown and externalities, a financially optimum density in figure 3.67 closely follow the negatively would equal the economically optimum density. sloped gradient predicted by the classical mono- However, the prices of land, capital, and other centric urban model. inputs will eventually change, possibly in differ- Moreover, the spatial structure of most cities ent directions, and the new optimum density tends to follow three trends: over the long run, will shift from the optimum achieved during average densities decrease; traditional CBDs development. If the new optimum density dif- tend to lose primacy (with notable exceptions); fers substantially from actual density, land will and the evolution of spatial structure is often be redeveloped. adversely affected by household mobility. The periodic recycling of land into new den- Over the long run, average densities decline sities is indispensable for the maintenance of for the following reasons: improvements in land use efficiency and urban productivity. Un- transport networks (that is, length and speed) fortunately, many land use regulations, such as A FIELD REFERENCE GUIDE | 319 Figure 3.67 The Profile of Densities of Built-Up Areas in 12 Large Metropolises Source: Author compilation (Alain Bertaud). rent controls to maximize the FAR, tend to pre- tions. Minibuses and collective taxis gradually vent the recycling of land. become more efficient as ways to reach dispersed Traditionally, CBDs become larger as cities locations. develop. The inability of local governments to manage the traffic in CBDs and to maintain Coordination between land use and mobility often results in the deterioration of transit: The example of Singapore the CBDs (Mexico City) or in the progressive Though most dense, monocentric cities have abandonment of the CBDs (San Salvador, El Sal- become progressively less dense and polycen- vador). As a result, jobs disperse into new loca- tric, a few cities have kept a large share of the tions, and transit networks are unable to link jobs and amenities in CBDs despite population residential areas adequately to these new loca- growth (for example, New York City, Shanghai, 320 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES and Tianjin; Singapore has also pursued this while transit ridership fell from 55.0 percent to strategy [its transit network is illustrated in map 52.4 percent. 3.9]). These cities have maintained consistent Singapore’s example shows that cities with land use and transport policies that have ex- significant transit investments and good coordi- tended the CBD area, increased FARs, and ex- nation among land and transit policies may none- panded radially oriented concentric transit net- theless experience growth in car trips, although works serving the CBDs. In addition, these more slowly than cities that do not pursue these cities have included amenities such as theaters, strategies. Cities should thus continue efforts to pedestrian streets, and museums within or near reduce car traffic and congestion, along with city centers. These approaches are important in running programs to increase transit share. In the development of dense cities, particularly in the long run, traffic and congestion may drive Asia, where urban built-up densities are often jobs and people to other areas, increasing trip above 100 people per hectare. These strategies length and making transit less viable. also facilitate efficient transit operations in the densest urban areas. In these neo-monocentric cities, trips between Land and Housing Affordability suburbs might continue to grow. Suburb-to- suburb trips will be made by cars or collective Ensuring that developed land and floor space taxis. In Singapore, car ownership is strictly con- are affordable for various income groups is a ma- trolled; an elaborate high-technology congestion jor challenge, particularly in large cities in rap- pricing system is in operation; and land and tran- idly urbanizing countries. Cities in countries sit policies are consistent. Nonetheless, private with sizable rural populations must accommo- car trips as a share of all trips grew from 37.0 per- date annual migrations of rural citizens with in- cent to 41.6 percent between 1990 and 2000, comes below urban averages. Local governments ©2010 Google™. Map data. 2010 Tele Atlas, GMS, AN, MapIT, Europa Technologies. Map 3.9 Singapore Metro Network: Centered on Expansion in the Central Business District Source: Author compilation (Alain Bertaud), Google Maps. A FIELD REFERENCE GUIDE | 321 should carefully monitor land supplies and audit the utopian vision of officials on the features of land development regulations to ensure that the appropriate urban design. This explains why regulations do not establish thresholds below most land use regulations entail greater land which low- or middle-income households are consumption than would be the case if land use unable to buy or rent legal dwellings. were driven by consumer demand. Normative regulations establish arbitrary and enduring Infrastructure and land use regulations consumption thresholds for land and floor affect the supply and price of land space (for example, minimum plot sizes and and floor space maximum FARs) and systematically fail to Variations in the supply of land and floor space adapt to changing incomes, technologies, and typically drive variations in rents and land pric- land and construction prices. In poor countries, es. The supply of land and floor space is highly regulations often impose minimum fixed values dependent on primary infrastructure, transport on variables such as plot size, apartment size, networks, and land use regulations, which are and FARs. In utility and affordability equations usually under the jurisdiction of local govern- for housing and other land uses, these variables ments. Unfortunately, local governments often should not have fixed minimum values and ignore the links between land supply and land should be dependent variables linked to inde- prices and rents. Unfamiliar with supply and pendent variables, such as the price of land, in- demand, local officials often attribute high terest rates, and the cost of construction. prices to speculation, without realizing that Land use regulations for a given city may fill bottlenecks in land supply and FARs are fueling several volumes. However, only four types of high prices. In confronting significant increases regulations are really important. These regula- in land prices and rents, officials often fail to tions should be carefully audited owing to their increase land supplies or FARs. Instead, they impact on land demand and affordability. They try to control prices by imposing higher trans- are as follows: action costs or tightening rent control legisla- • Regulations establishing minimum plot sizes tion. These actions result in higher land and and minimum apartment sizes (explicitly or housing prices, which, in turn, generate more implicitly) regulations in a vicious inflationary spiral. • Regulations limiting FARs Because government actions have such an im- • Zoning plans limiting the type and intensity portant impact on real estate markets and urban of urban land use spatial structures, it is worthwhile examining the • Land subdivision regulations establishing direct and indirect impacts of infrastructure in- permissible ratios of developable and sal- vestments and land use regulations. able land in new greenfield areas The aims of land use regulations are to avoid externalities linked to changes in land use. Pre- Regulations on minimum plot sizes and venting a negative externality is beneficial. How- apartment sizes ever, regulations also have costs. Unintended The goal of mandating minimum plot sizes is to side effects may increase the costs of many regu- prevent excessive densities and ensure a high- lations beyond the supposed benefits. Many land quality urban environment. Households in all use regulations are not tested for their impacts cultures tend to maximize the land and floor and may create social costs by artificially increas- area they consume by taking into account the ing the cost of developed land and floor space. trade-offs between location and local real estate In reality, most regulations are not formu- costs. For example, poor households may opt to lated to correct explicit externalities, but reflect live in dense, inner-city slums rather than in 322 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES low-density, legal subdivisions in urban periph- mean that only half of the households may be eries. These decisions are completely rational able to purchase such plots, pushing other house- because the households are simply trying to holds into the distant periphery or into illegal maximize welfare. Minimum plot size regula- dwellings. The problems associated with mini- tions contradict those rational decisions and mum plot size regulations in a major African city, impose another trade-off: either live in a legal Addis Ababa, are illustrated in figure 3.68. subdivision in a distant suburb or in an illegal Addis Ababa’s minimum plot size was slum closer to job opportunities. The trade-off 75 square meters in 2002. Most poor households is no longer between distance and density, but close to the center (Kebbele housing) occupy, on between legality and illegality. Not surprisingly, average, about 35 square meters of land, which many households select the illegal solution. includes communal courtyards and passage- Minimum plot size regulations establish a de ways. Figure 3.68 illustrates the impact of the facto cost threshold below which it is illegal to minimum plot size regulation on housing afford- develop land. Though the minimum plot size ability, assuming a suburban location in which may be fixed, the cost threshold often varies tem- land is cheaper. Because of the regulation, porally and spatially. For instance, a minimum 75 percent of households cannot afford to satisfy plot size of 200 square meters may be affordable the minimum standards, as represented by the up to 3 kilometers from the city center for red bars on the left in the figure, with or without 90 percent of households in a certain year. How- financing. With a 30-year financing package, ever, economic changes in a separate year may only a quarter of the households can afford a Figure 3.68 The Affordability of the Minimum Plot Size in Suburban Areas, Addis Ababa Source: Author compilation (Alain Bertaud). Note: m2 = square meter. A FIELD REFERENCE GUIDE | 323 house of 25 square meters on a minimum plot In South Africa, the courtyards of many size of 75 square meters. Without financing, detached formal houses are subdivided into such a structure and plot are affordable for only informal backyard shacks rented to lower- 18 percent of the households, represented by income members of the community. Informal the dark bars on the right in the figure. subdivisions of this type are often discouraged Aware of this affordability challenge, the by municipalities or by the housing institutions government developed a subsidized housing fi- that have developed a settlement. nance scheme for formal developers who de- The argument against lot subdivision is that velop land adhering to minimum regulatory increased density risks overloading infrastruc- standards. Even with a subsidized loan, 75 per- ture. This may be a genuine risk, despite the fact cent of the households cannot afford the mini- that lower-income households consume only a mum standards in Addis Ababa. Not surpris- fraction of the water and electricity consumed ingly, about 75 percent of the households are in by higher-income households. In any case, it is informal housing. normally easier and cheaper to upgrade infra- A similar study carried out in Kanpur in structure in such subdivisions than to develop the State of Uttar Pradesh in India in 1988 new land on the urban fringe to accommodate showed that a minimum plot size of 100 new households. In addition, it is difficult to square meters was unaffordable for 87 per- develop land for those households that rent cent of the population. backyard shacks. The best solution is to repeal minimum Figure 3.69 shows the case of Sebokeng, a household standards for land and floor space formally subsidized low-income settlement in a and to replace these standards with minimum southern suburb of Gauteng. The beneficiaries of standards for developed parcels of land, without this subsidized housing project have built and specifying how many households may subdi- rented one-room houses in their backyards. This vide and live on the parcel. In this way, infra- approach is probably the most efficient way to structure issues related to small land parcels of provide land and housing to the low-income unequal size would be solved. In other words, population in this area. This process should be water and sewerage connections would be encouraged rather than discouraged. It provides shared by households sharing a regulated par- additional income for the plot owner, while cel, but the number of households sharing a allowing renters to share community facilities, parcel would be left to the users and would be including schools, with higher-income residents. based on affordability. As a result of these practices, the density of the This shared parcel design is common in neighborhood rose about 50 percent relative to many informal and sometimes formal settle- the original design, but infrastructure should be ments around the world. Informal houses in sufficient. If not, it remains less expensive to run Kabul, Afghanistan, are usually built on a large an additional water pipe along the road than to lot of around 300 square meters and served by develop new land for the renters. one street entrance. The number of houses built around a lot’s central courtyard depends on Regulations limiting FARs household income and may vary from one in af- Regulations limiting FARs are designed to re- fluent areas to 20 in the poorest areas. If eco- duce externalities by limiting densities and the nomic circumstances change, land and floor bulk of buildings. Negative externalities are cre- space per household will adjust as the number ated by the shadows of taller buildings and the of households rises or falls, without any change increased traffic and utility consumption im- in infrastructure or street layout. plicit in higher densities. There is no optimum 324 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES ©2007 Google™, ©2008 Europa Technologies. Image ©2008 Digital Globe. Figure 3.69 Sharing Larger Plots among Lower-Income Households, in Sebokeng, Gauteng, South Africa Source: Author compilation (Alain Bertaud), Google Earth. Note: ha = hectare; p/ha = persons per hectare. FAR that may be calculated for an entire city. establish their objectives or the externalities However, it is possible to calculate FARs for they are designed to correct. Though zoning given prices of land and construction that pro- may be a useful tool, it must not obstruct the duce the lowest cost of construction per square provision of affordable land and shelter in meter. In many cities, such as Mumbai, FAR val- rapidly urbanizing cities. ues are much too low, leading to urban decay in the city center and favoring sprawl. Land subdivision regulations Land subdivision regulations are mostly directed Zoning plans at new greenfield developments. They establish Zoning plans aim to separate incompatible land the standards for roads, block lengths, open uses and prevent development in environmen- spaces, the areas to be reserved for community tally sensitive areas. In addition, zoning plans facilities, and so on. The percentage of postde- typically contain regulations for each zone that velopment salable land is arguably the most im- limit the intensity of land use, including regula- portant parameter set by the regulations. Unfor- tions on plot coverage, maximum heights, set- tunately, this parameter is seldom explicit and backs, and FARs. must be derived from other regulatory parame- Zoning is an important tool for preserving ters. In many countries, the share of such salable sensitive areas. It may be used to mandate green land, including residential and commercial lots, areas that absorb excess water and runoff. How- is below 50 percent. This figure should be higher, ever, zoning plans often do not clearly which means new developments need to be land A FIELD REFERENCE GUIDE | 325 intensive. Typically, the regulations are estab- eas is affordable for unskilled migrants. The two lished for all new urban greenfield development key aims are to open the supply of land through and do not consider location or land prices. regulatory reform and primary infrastructure in- Implicitly, the regulations also set maximum vestments and to allow poor households to con- densities, but these are seldom explicitly calcu- sume as little land and floor space as needed in lated by regulators. Maximum densities are sel- areas that are convenient for finding employ- dom compatible with the land prices and devel- ment. The low-cost housing issue is at the nexus opments that are affordable for low-income of mobility and affordability objectives. households. By imposing ill-conceived standards, the reg- ulations are often responsible for an exceedingly A Plan for the Active Management high proportion of informal sector settlements, of Constantly Evolving Urban Spatial as in Cairo and in India and Mexico. The regula- Structures tions should be tested using land and infrastruc- ture price models to establish the minimum A plan includes the following dimensions. household income required to afford a minimum standard plot in a new greenfield development. Methodology and training for urban planners and managers Land supply and high-intensity use are key Urban managers should change their urban factors in increasing affordable housing planning methodologies. Rather than collect Regulatory constraints affecting land supply are data once each decade to devise a development often ignored by governments that are other- plan that often faces a long approval process, wise eager to increase the supply of affordable managers should constantly monitor urban de- housing. Subsidized interest rates are often the mographic and physical changes and real estate main tool used to create affordable housing. prices. Infrastructure investments and regula- However, if regulatory constraints, such as the tions should also be adjusted on a regular basis. land subdivision regulations, prevent the elas- Understanding the way markets work is es- ticity of supply, more and cheaper housing is sential for those people who make decisions on not the result; the result is housing inflation. infrastructure investments and regulations. Be- Unlocking land supply is a prerequisite to cause the acquisition of economic knowledge stimulating housing demand. An audit of land constitutes a departure from the traditional role use regulations should be conducted at least ev- of urban planners, academic requirements ery two years. The audit should calculate the cost should be modified. All urban planners should of building a house or apartment under current have some formal training in urban economics minimum standards in various areas of a city and regardless of their original fields. incorporate the current market prices for devel- oped land and construction. The cost of this min- The reorganization of urban planning imum house should be compared with the in- departments comes of various socioeconomic groups. The Urban planning units should become involved results of the audit should be drawn on a map in actively managing cities. Planning units can- that clearly shows the parts of a city in which le- not replace line agencies that design and main- gally developed land and shelter are affordable tain infrastructure such as roads and water for different income groups. Land use regula- treatment plants, but they should have a say in tions should then be amended through an itera- the new infrastructure investments that affect tive process so that housing in sizable urban ar- mobility and land supplies. 326 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Planning units should have monitoring and Notes operational departments. The monitoring de- partment should constantly collect and analyze 1. Lowering real estate transaction costs includes data on the evolution of the city. Whenever pos- decreasing stamp duties and excessive taxes on capital gains. sible, data should include spatial and demo- 2. A Tata Nano, a rear-engine, four-passenger city graphic dimensions, such as coordinates and car built by Tata Motors in India, would require census identifiers. The data and indicators only slightly less space. should cover real estate prices, household in- come, the issuance of building permits, car own- ership, commuting times, the shares of transpor- References tation modes, and urban densities. A synthesis of data should be issued annually and describe CIA (Central Intelligence Agency). 2009. “Kenya.” trends in mobility and affordability. In The World Factbook. CIA, Washington, DC. https://www.cia.gov/library/publications/ The work of the operational planning depart- the-world-factbook/geos/ke.html (last modified ment should be guided by clear goals set by the September 3). mayor or the city council. The operational de- Downs, Anthony. 2004. Still Stuck in Traffic: Coping partment should build on the monitoring report with Peak-Hour Traffic Congestion, rev. ed. Washington, DC: Brookings Institution Press. to propose complementary actions with clear Spence, Michael, Patricia Clarke Annez, and Robert M. objectives and targets, including infrastructure Buckley, eds. 2009. Urbanization and Growth. investments and regulatory changes. After pro- Washington, DC: Commission on Growth and posed actions are approved by the city govern- Development, World Bank. ment, program design and implementation World Bank. 2009. World Development Report 2009: Reshaping Economic Geography. Washington, DC: should be passed on to traditional municipal line World Bank. agencies (such as public works departments, wa- ter supply utilities, and transit companies). Cities with decision processes fragmented across many departments that pursue their own agendas tend to produce undesired outcomes, including inconsistency and incoherence. Clear objectives and targets are key factors in success- ful urban planning. A FIELD REFERENCE GUIDE | 327 World Bank Group’s Financial Instruments and Multidonor Funds The World Bank Group offers subnational governments various products and services through its associated institutions: loans and concessional credits through the two arms of the World Bank, the International Bank for Reconstruction and Development (IBRD), and the International De- velopment Association (IDA); commercial financing through the joint International Finance Corporation (IFC)–World Bank Subnational Finance Program; loan guarantees through the Multilateral Investment Guarantee Agency (MIGA); loans through multidonor funds in which the World Bank takes part (such as the Global Environment Facility); and “carbon finance” (such as the purchase of greenhouse gas emission reductions) through market-based instruments. This section discusses the major World Bank Group financial instruments relevant to financing Eco2 initiatives at the municipal level. World Bank: IBRD Loans and policy and institutional reforms aimed at IDA Credits achieving specific development results. Subna- tional development policy lending (DPL) typi- IBRD and IDA credits include specific invest- cally consists of series of two or three single- ment loans and subnational development policy tranche loans—referred to as DPL 1, DPI 2, lending. Specific investment loans are a major etc.—that may be released against the delivery financial instrument of the IBRD and the IDA of policy and institutional reforms (table 3.35). (table 3.34). They are disbursed to middle-in- The World Bank may provide this lending to a come countries as loans in the case of the World national government or to subnational divi- Bank and to the world’s 78 poorest countries on sions of a member country, which might in- concessional terms in the case of IDA credits. clude state and provincial governments with Development policy operations provide un- legislative and budget authority. tied, direct budget support to governments for A FIELD REFERENCE GUIDE | 329 Table 3.34 World Bank IBRD Loans/ IDA Credits: Specific Investment Loans (SILs) ELIGIBILITY Eligible entities are subnationals of developing countries that are IBRD/IDA member countries. Application: Municipalities apply through national governments. FUNDING OBJECTIVE Financing a broad range of investment activities aimed at creating physical and social infrastructure: • Standalone projects with specific predetermined investment components and programmatic investment activities • Technical assistance activities related to investment projects and their sector reforms. For a country’s own Eco2 program: • Infrastructure services necessary for sustainable urban development, such as water supply, wastewater management, power generation and distribution, solid waste management, roads, public transport, etc. • National Eco2 Fund programs (see chapter 3). INDICATIVE AMOUNT/TERMS IBRD Flexible Loan Variable spread option: LIBOR −0.5% −1.45% Fixed spread option: LIBOR +1.00% (−1.45%) based on average payment maturity (10 years or less/10-14 years/ greater than 14 years) and currency (USD, EUR, JPY). Local currency loan is available for currency conversion option. IDA Credit: No interest rate Source: Author compilation. Note: Information as of March 1, 2010. Rates are as of May 1, 2009 and are subject to change. For updated information, see http://treasury.worldbank.org/. EUR = European Union euro. JPY = Japanese yen. LIBOR = London interbank offered rate. USD = U.S. dollar. Table 3.35 World Bank IBRD Loans/IDA Credits: Subnational Development Policy Lending (DPL) ELIGIBILITY Eligible entities are jurisdictions with legislative autonomy and independent budgetary authority immediately below the national government, including states, provinces, and other entities with similar status (e.g., republics and regions of the Russian Federation and the federal districts [capital cities] of federal countries in Latin America). Normally, municipalities and countries subject to state or provincial legislation and oversight are not eligible. (Countries that have experience with Subnational DPL include Argentina, Bolivia, Brazil, India, Mexico, Pakistan, Russia, and Ukraine.) Countries must be IBRD/IDA member countries. FUNDING OBJECTIVE Support of sector reforms through • development of specific policies and policy instruments; • enforcement of policy implementation with legal instruments; and • development of institutional capacities for effective implementation. For a country’s own Eco2 program: Subnational DPLs could address major policy and institutional reforms required for sustainable urban development, particularly in the areas of resource efficiency and energy saving. INDICATIVE AMOUNT/TERMS IBRD Flexible Loan: same as table 3.34. IDA Credit: same as table 3.34 Disbursement. Loans are provided directly to state or local government or agency, with a sovereign guarantee, or to the country with proceeds onlent to the subnational unit. IDA credits are provided to countries which lend on the proceeds. Source: Author compilation. Note: Information as of March 1, 2010. DPL = development policy lending. IBRD = International Bank for Reconstruction and Development. IDA = International Development Association. 330 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Other World Bank Group Financing Other financing by World Bank Group institu- ing and services for investment in the private tions includes joint subnational finance by the sector in developing countries (table 3.37). World Bank and the IFC, the financing and ser- MIGA promotes developmentally beneficial vices of the IFC, and guarantees by the MIGA. foreign direct investment in emerging econo- Joint World Bank–IFC subnational finance mies by insuring investments against political provides eligible states, provinces, municipali- risks, such as expropriation, breach of contract, ties, and their enterprises with financing and war, and civil disturbance; by resolving invest- access to capital markets, without sovereign ment disputes; and by helping developing coun- guarantees, for investment in essential public tries attract private investment (table 3.38). services (table 3.36). The IFC provides financ- Table 3.36 World Bank Group Financing: Joint World Bank–IFC Subnational Finance ELIGIBILITY Eligible applicants • State, municipal, provincial, regional, or local governments and their enterprises (including water and sanitation utilities) • Financial intermediaries supporting local infrastructure • Nationally owned enterprises operating in natural monopoly, infrastructure sectors (selectively) • Public-private partnership entities (to cover commitments of the public partner) Eligible projects must • be located in a developing country that is a member of IFC; • be in the public sector; • be technically, environmentally, and socially sound; and • benefit the local economy. Eligible sectors are water, wastewater, solid waste, transportation, social infrastructure (e.g., health and education), power, gas distribution, district heating, and other essential public services. FUNDING OBJECTIVE Strengthening the borrowers’ ability to deliver key infrastructure services (such as water, wastewater management, transportation, gas, and electricity) and improving their efficiency and accountability as service providers. Investment selection criteria include • financial (predictability of cash flows to service debt without sovereign guarantee), • socioeconomic (robust economic base), • institutional (operational efficiency), • regulatory (functional system), and • development impact (essentiality of investment and strong economic benefits). INDICATIVE AMOUNT/TERMS Products are commercially priced, tailored to client’s needs, and can be delivered in 3 to 6 months. All products are provided without sovereign guarantee and may be available in local currency. Products: • Lending instruments (senior, subordinated, and convertible loans) • Credit enhancement (partial credit guarantees, risk sharing facilities, and securitizations) • Equity and quasi equity (other hybrid instruments) Source: Author compilation. Note: Information as of March 1, 2010. For details, see http://www.ifc.org/. A FIELD REFERENCE GUIDE | 331 Table 3.37 World Bank Group Financing: IFC Financing and Services ELIGIBILITY Eligible projects must • be located in a developing country that is a member of IFC, • be in the private sector, • be technically sound, • have good prospects of being profitable, • benefit the local economy, and • be environmentally and socially sound, satisfying IFC standards and those of the host country. FUNDING OBJECTIVE For Eco2 catalyst projects: Components such as private infrastructure, including industrial zones and development of energy efficiency industries, such as energy efficient buildings and production of light- emitting diodes (LEDs), are suitable. IFC also offers guarantees to local banks that invest in energy services companies (ESCOs). INDICATIVE AMOUNT/TERMS Financial products and advisory services: Financial products, the traditional and largest service of IFC, include loans, equity and quasi-equity finance, financial risk management products, and intermediary finance to finance private sector projects in developing countries. Products are commercially priced and tailored to client’s needs. IFC typically does not invest in projects valued at less than 20 million dollars. IFC works with local banks and leasing companies to finance smaller projects. Advisory services are offered in such areas as privatization, business-related public policy, and industry specific issues for private businesses and governments in developing countries. Source: Author compilation. Note: Information as of March 1, 2010. For details, see http://www.ifc.org/. Table 3.38 World Bank Group Financing: MIGA Guarantees ELIGIBILITY Eligible applicants: • Nationals of a MIGA member country other than the country in which the investment is to be made • Juridical persons if they are either incorporated in and have their principal place of business in a MIGA member country, or if they are majority owned by nationals of MIGA member countries • State-owned corporations if they operate on a commercial basis investing in MIGA member countries other than the country where they are incorporated • Nationals of the host country or juridical persons incorporated in said host country or whose capital is majority-owned by its nationals, provided that the invested assets are transferred from outside the host country FUNDING OBJECTIVE Offering political risk insurance against losses relating to currency transfer restrictions, expropriation, war and civil disturbance, and breach of contract for projects in a broad range of sectors (e.g., power, water, wastewater, transport and green infra- structure, energy, telecommunications, and finance) in developing countries that are MIGA member countries. MIGA can cover expropriation and breach of contract by a subnational entity. MIGA’s contribution to reducing the adverse impact of climate change focuses on supporting green infrastructure investments in developing countries that build renewable energy capacity, encouraging resource conservation and distribution efficiency, improving sanitation, and off- setting GHG emissions. INDICATIVE AMOUNT/TERMS Per project insurance: Up to US$200 million (if necessary, more can be arranged through syndication of insurance). Duration up to 15 years (20 years if justified). Guarantee premiums based on country and project risk. Rates for the SIP guarantee (3 coverages): 0.45%–1.75% basis points per year. Types of foreign investments include • equity interests, • shareholder loans, • shareholder loan guarantees, and • other investments, such as technical assistance, management contracts, franchising, and licensing agreements. Source: Author compilation. Note: Information as of March 1, 2010. For details, see http://www.miga.org/. SIP = Small Investment Program. 332 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Multidonor Funds Multidonor Funds include climate investment Strategic Climate Fund (SCF)(table 3.40). In funds and the Global Environment Facility. Cli- keeping with multilateral development bank mate investment funds consist of the Clean practice, investment projects and programs Technology Fund (CTF)(table 3.39) and the may include financing for policy and institu- Table 3.39 Multidonor Funds—Climate Investment: Clean Technology Fund (CTF) ELIGIBILITY Eligible entities are subnationals in developing countries with • eligibility for Official Development Assistance according to OECD/DAC guidelines), and • an active MDB country program.a Application: Municipalities apply through their countries, which express interest in and request a joint mission from the World Bank and a regional development bank for preparation of a country CTF investment plan. The investment plan is a country-owned document, prepared with the assistance of the MDBs, which outlines the country’s priorities and strategy for the utilization of CTF resources. In 2009, the CTF Trust Fund Committee endorsed Investment Plans for Egypt, Mexico, Turkey, South Africa, Morocco, Philippines, Thailand and Vietnam, as well as a regional program for concentrated solar power in the Middle East and North Africa (MENA) region. FUNDING OBJECTIVE Promoting scaled-up financing for demonstration, deployment, and transfer of low-carbon technologies with a significant potential for long-term savings in GHG emissions, including programs in • the power sector (renewable energy and highly efficient technologies to reduce carbon intensity), • the transport sector (efficiency and modal shifts), and • the energy sector (energy efficiency for buildings, industry, and agriculture). Programs/projects selection criteria: • Potential for long-term GHG emission savings • Demonstration potential at scale • Development impact • Implementation potential • Additional costs/risk premium INDICATIVE AMOUNT/TERMS Indicative total amount: about $US 5 billion was pledged in September 2008. Indicative number of country/regional programs: 15–20 Investment Plans Through MDBs, CTF would seek to provide • concessional financing in the near-to-medium term to meet investment needs to support rapid deployment of low carbon technologies; • concessional financing at scale, blended with MDB financing, as well as bilateral and other sources of finance, to provide incentives for low carbon development; • a range of financial products to leverage greater private sector investments; and • financial instruments integrated into existing aid architecture for development finance and policy dialogue. Products and terms: • Concessional loans have 2 options: 1. Harder Concessional: Maturity, 20 years; grace period, 10 years; principal repayments (year 11–20), 10%; grant element: ~45%; service charge: 0.75%. 2. Softer Concessional: Maturity, 40 years; grace period, 10 years; principal repayments, 2% (year 11–20), 4 % (year 20-40; grant element, –71% ; service charge, 0.25%. • Grant: up to US$1 million (for CTF project preparation) • Guarantees: partial credit guarantee and partial risk guarantee MDBs lend to national governments, national governments for on-lending to subnational entities, or subnational entities. Source: Author compilation. a. An “active” program is one in which an MDB has a lending program and/or ongoing policy dialogue with the country. Note: Information as of March 1, 2010. For details on Climate Investment Funds, see http://www.climateinvestmentfunds.org. OECD = Organisation for Economic Co-operation and Development. DAC = Development Assistance Committee (OECD ). MDB = Multilateral Development Bank. CTF = Clean Technology Fund. GHG = greenhouse gas. SCF = Strategic Climate Fund. A FIELD REFERENCE GUIDE | 333 Table 3.40 Multidonor Funds—Climate Investment: Strategic Climate Fund (SCF) Pilot Program for Climate Resilience (PPCR): The PPCR is a program under the Strategic Climate Fund (SCF) designed to pilot and demonstrate ways to integrate climate risk and resilience into developing countries’ core development planning. The pilot programs implemented under the PPCR are country led, build on National Adaptation Programs of Action, and are strategically aligned with other sources of adaptation finance, such as Adaptation Fund, UNDP, and other donor-funded activities. ELIGIBILITY MDB eligibility (Regional Development Banks, International Development Association (IDA) FUNDING OBJECTIVE Supporting scaled-up action and transformational change in integrating climate resilience in national development planning of a few highly vulnerable countries. INDICATIVE AMOUNT/TERMS Indicative total amount: about US$900 million Grants and concessional lending for technical assistance and programs of public and private sector investments Program for Scaling-Up Renewable Energy in Low Income Countries (SREP): The SREP program aims to demonstrate in a small number of low income countries how to initiate energy sector transformation by helping them take renewable energy solutions to a national programmatic level. SREP offers a unique two-pronged approach. It is designed to support developing countries in their efforts to expand energy access and stimulate economic growth through the scaled-up deployment of renewable energy solutions, and it provides a trigger for transformation of the renewables market in each target country through a programmatic approach that involves government support for market creation, private sector implementation, and productive energy use. ELIGIBILITY To be eligible, a country • must be low-income and eligible for MDB concessional financing (i.e., through IDA or a regional development bank’s equivalent); and, • be engaged in an active country program with an MDB.a FUNDING OBJECTIVE Pilot and demonstrate, as a response to the challenges of climate change, the economic, social, and environmental viability of low-carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy. INDICATIVE AMOUNT/TERMS Indicative total amount: about US$292 million (as of February 2010). Source: CIF (2009a,b; 2010) and personal communication with CIF in March 2010. a. An “active” program is one in which an MDB has a lending program and/or ongoing policy dialogue with the country. Note: Information as of March 1, 2010. For details on Climate Investment Funds, see http://www.worldbank.org/cif. tional reforms and regulatory frameworks. ganizations, and the private sector to address This is the role of the Clean Technology Fund. global environmental issues, while supporting The Strategic Climate Fund is broader and national sustainable development initiatives. It more flexible in scope. It serves as an overarch- provides grants for projects related to six focal ing fund that supports various programs to test areas: biodiversity, climate change, internation- innovative approaches to climate change. It al waters, land degradation, the ozone layer, and consists of three programs: the Pilot Program persistent organic pollutants. It works with sev- for Climate Resilience, the Forest Investment en executing agencies and three implementing Program, and the Scaling-Up Renewable agencies, including the World Bank. At the end Energy Program for Low-Income Countries. It of 2007, the active portfolio of Global Environ- provides financing to test new development ment Facility projects implemented by the approaches or to scale up activities aimed at World Bank included 219 projects with total net specific climate change challenges through tar- Global Environment Facility grant amount geted programs. commitments of US$1.6 billion. In terms of The Global Environment Facility (table 3.41) approval, the grant amount approved by the is a global partnership among 178 countries, in- World Bank Board in fiscal year 2007 was ternational institutions, nongovernmental or- US$220 million (22 projects). 334 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Table 3.41 Multidonor Funds: Global Environment Facility (GEF) ELIGIBILITY A country shall be an eligible recipient of GEF grants if it is eligible to borrow from the World Bank (IBRD and/or IDA) or if it is an eligible recipient of UNDP technical assistance through its country Indicative Planning Figure (IPF). An eligible project must • be undertaken in an eligible country; • be consistent with national priorities and the GEF operational strategy; • address one or more of the GEF focal areas, improving the global environment or advancing the prospect of reducing risks to it; • seek GEF financing only for the agreed incremental costs on measures to achieve global environmental benefits; • involve the public in project design and implementation; and • be endorsed by the government(s) of the country(ies) in which it will be implemented. Application: Municipalities in member countries apply in consultation with Country Operational Focal Point. FUNDING OBJECTIVE Providing grants for projects related to six focal areas: biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. INDICATIVE AMOUNT/TERMS Per project size: Full-sized project: Grant over US$1 million. Medium-sized project: Grant up to US$1 million. Enabling activities: Grant up to $0.5 million in GEF financing, but varies across focal areas. Source: Author compilation. Note: Information as of March 1, 2010. For details, see http://www.gefweb.org/. UNDP = United Nations Development Programme. GEF = Global Environment Facility. Market-Based Instruments basis similar to a commercial transaction, paying for them annually or periodically once the emis- Market-based instruments that are relevant for sion reductions have been verified by a third- Eco2 initiatives include carbon finance, which party auditor. The selling of emission reductions consists of 11 funds and one facility, the Carbon (carbon finance) has been shown to increase the Partnership Facility (table 3.42). The World Bank bankability of projects by adding an additional Carbon Finance Unit uses funds contributed by revenue stream in hard currency that reduces governments and private companies in the coun- the risks of commercial lending or grant finance. tries of the Organisation for Economic Co-oper- Thus, carbon finance provides a means of lever- ation and Development to purchase project- aging new private and public investment in proj- based greenhouse gas (GHG) emission reductions ects that reduce GHG emissions, thereby miti- in developing countries and countries with econ- gating climate change, while contributing to omies in transition. The GHG emission reduc- sustainable development. The Carbon Finance tions are purchased through one of the unit’s Unit has several carbon funds aimed primarily carbon funds on behalf of the contributor and at fulfilling commitments under the Kyoto within the framework of the Kyoto Protocol’s Protocol by 2012. Clean Development Mechanism or joint imple- Carbon finance and the Carbon Partnership mentation. Unlike other World Bank financial Facility represent a new generation of carbon instruments, the Carbon Finance Unit does not finance that is being developed to scale up lend or grant resources for projects. Rather, it emission reductions and their purchase over contracts to purchase emission reductions on a the longer term beyond the regulatory period A FIELD REFERENCE GUIDE | 335 Table 3.42 Market-Based Instruments: Carbon Finance, Carbon Partnership Facility (CPF) ELIGIBILITY Eligible entities: Seller Participants should be public or private entities committed to develop one or more emission reduction (ER) programs and sell a portion of the ERs to the Carbon Fund, one of the trust funds under CPF; they should also be acceptable to the World Bank in accordance with established criteria. Buyer Participants should be public or private entities committed to contribute to the Carbon Fund. For the first tranche of the Carbon Fund, ¤35 million is the minimum required contribution from a public or private entity (a group of entities can form a pool/consortium to participate as a group). Eligibility of an ER program includes • reduction of 6 GHG covered under the Kyoto Protocol or under any future climate change regime; • demonstration of value added to the programs by World Bank’s involvement (e.g. power sector development, energy efficiency, gas flaring, transport sector, and urban development programs); and • suitability for scaling up, i.e., can be replicated as part of a larger program or in another country. Prioritized programs • are aligned with Country Assistance Strategy/Country Partnership Strategy and UN Framework Convention on Climate Change/Kyoto Protocol, • are built on World Bank lending pipeline and other operations, • use commercially available technology, and • are expected to have significant ERs (preferably several million tons over 10-15 years ) FUNDING OBJECTIVE Facilitating the development of low-carbon investments with a long-term impact on mitigating GHG emissions under the UNFCCC Framework or Kyoto Protocol and any future agreement under the UNFCCC or other regime deemed appropriate by the Trustee in consultation with the Participants. INDICATIVE AMOUNT/TERMS Indicative total amount: First tranche of the CPF Carbon Fund to become operational with a target capitalization of ¤200 million, and could grow to about ¤400 million. Expected to become operational in first half of CY2010. Indicative per project size: several million tons of ER/program over 10-12 years. Price of ERs: Transparent CPF pricing approach, based on market prices; may allow for upside and downside sharing between buyers and sellers (to be confirmed). While the first tranche of the CPF Carbon Fund is denominated in ¤, subsequent tranches could be denominated in other currencies as well. Source: Author compilation. Note: Information as of March 1, 2010. For details, see http://go.worldbank.org/9IGUMTMED0. ER = emission reduction. CPF = Carbon Partnership Facility. UNFCCC = United Nations Framework Convention on Climate Change. CY = current year. of the Kyoto Protocol, which ends in 2012. The tial aspect of the Carbon Partnership Facility objectives and business model are based on as the program moves from individual projects the need to prepare large-scale, potentially to programmatic approaches, including meth- higher-risk investments with long lead times odologies for such approaches. It is expected that require durable partnerships between that the size of the facility will be €5 billion for buyers and sellers and significant capacity the period 2012–16. building for program development. They are The various climate change funds may be also based on the need to support long-term used simultaneously or sequentially (box 3.24). investments in an uncertain market environ- Carbon finance, in particular, offers attractive ment, possibly spanning several market cycles. opportunities for cities to focus on reducing Learning-by-doing approaches are an essen- GHG emissions (box 3.25). 336 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES BOX 3.24 Using Various Climate Change Funds Simultaneously or Sequentially The major financial instruments available at the World Bank Group to help mitigate climate change are the Global Environment Facility, the Clean Technology Fund, and the Carbon Partnership Facility. These tools share a similar objective: reducing the growth of GHG emissions by creating favorable market conditions for GHG reduc- tion. They are also compatible. They may therefore be pieced to- gether to serve the same project, as long as the coverage does not overlap. The Global Environment Facility focuses on the removal of barriers by providing grant funding for innovative projects in energy efficiency, renewable energies, and sustainable transportation to es- tablish the proper conditions for market transformation. The Clean Technology Fund focuses on support through investment to fill fi- nancing gaps by providing grants, concessional finance, and guaran- tees to scale up markets. By supporting efforts to reduce the cost of investment or the provision of guarantees, the fund aims to reduce the risks. The Carbon Partnership Facility, a new type of carbon fund, provides performance rewards or output-based revenue sources to CPF = Carbon Partnership Facility. CTF = Clean Technology Fund. GEF = Global create incentives for carbon-reducing investments. Environment Facility. Note: Projects need to be planned to avoid the double or triple counting of the same quantities of GHG among the Global Environment Facility, the Clean Technol- ogy Fund, and the Carbon Partnership Facility. BOX 3.25 Citywide Greenhouse Gas Emission Reduction and Carbon Finance Emissions in urban areas arise from a wide range of sources, including transport, and energy use. The emissions may be reduced through a transportation, electrical and thermal energy consumption in build- range of activities. In the waste sector, methane avoidance, biogas ings and industries, water and wastewater management, municipal generation, and recycling facilities are key sources. Increasing the waste, and various public services. Under the Clean Development share of public transportation may have significant GHG mitigation Mechanism, there are around 20 methodologies relevant to the needs benefits. Energy efficiency opportunities include buildings, lighting of urban authorities. The waste sector is addressed the most fre- in public areas such as streetlights, water pumping, district heating, quently. The methodologies enable the projects to measure GHG re- and integrated planning for heating and cooling supplies. Significant ductions relative to baselines or business-as-usual trends for specific emission reductions may also be achieved by using energy from re- sources of emissions, and they help monitor the emission reductions. newable sources through wind, solar, and geothermal technologies. However, because the GHG impact of individual emission sources, GHG emission reductions in cities may be realized in each sector such as a single waste site or streetlighting, is small, many of these through projects or through regulatory and incentive-based initia- projects are unable to access carbon finance because of the high tives that facilitate the participation of the private sector and the transaction costs. Furthermore, many sectors, including building emis- general public. A typical city program would be managed by city sions, are not effectively addressed through current methodologies. authorities. Projects may be implemented by contractors or by city The Carbon Finance Unit of the World Bank is developing a authorities through public-private partnerships. GHG mitigation framework methodology that attempts to aggregate the GHG im- projects are typically implemented in the three sectors (waste, pact of all individual sources into a single administrative area, there- transport, and energy use) over a period of time and generate emis- by allowing for the simplification and streamlining of measurement sion reduction credits based on performance. Depending on the ac- and monitoring and enabling the development of a citywide pro- ceptance of a citywide aggregated methodology, emission reduc- gram for GHG mitigation. For a typical existing city, the proposed tion credits may be traded or sold for use by industrialized countries baseline is the current and projected future levels of service provi- to meet a part of their emission reduction targets under the Kyoto sion. For a new city, the baseline might be the average emission level Protocol or in the voluntary market for use by industries, govern- in the region. Emission sources are categorized according to waste, ments, or cities. A FIELD REFERENCE GUIDE | 337 References Climate Investment Funds (CIF). 2010. “Criteria for Selecting Country and Regional Pilots under the Program for Scaling up Renewable Energy in Climate Investment Funds (CIF). 2009a. PPCR Fact Low Income Countries.” Washington, DC: Sheet. http://www.climateinvestmentfunds.org/ Climate Investment Fund. http://www. cif/sites/climateinvestmentfunds.org/files/PPCR_ climateinvestmentfunds.org/cif/sites/ fact_sheet_nov09.pdf climateinvestmentfunds.org/files/SREP%20 ————. 2009b. SREP Fact Sheet. http://www. Criteria%20country%20and%20region%20 climateinvestmentfunds.org/cif/sites/ program%20selection_SCmeeting_Feb3_ climateinvestmentfunds.org/files/SREP_fact_ 012010.pdf sheet_nov09.pdf 338 | ECO2 CITIES: ECOLOGICAL CITIES AS ECONOMIC CITIES Index A Aalborg Charter for Local Action Planning ethnic diversity of, 219 description, 55 Government Urban and Economic Development text (figure), 58 Office and, 222 Adaptability importance to the New Zealand economy, 220 an adaptable energy system (figure), 99 keys to success, 223–224 definition, 98 lessons learned, 224 durability and, 100 local government restructuring, 224 n1 an inflexible energy system (figure), 99 location of (map), 219 strategies for, 99 Mana Whenua Framework, 221, 224 Addis Ababa, Ethiopia Manukau City Council’s 2060 Strategic Frame- the affordability of the minimum plot size in work, 223 suburban areas, Addis Ababa (figure), 323 Maori tribe involvement, 221, 224 impact of minimum plot size regulations on One Plan, 223 housing affordability, 323–324 population growth, 219 Africa. See specific cities and countries regional collaboration and, 219–220 Alliance to Save Energy stakeholder consultations and interagency the Watergy case study in Fortaleza, Brazil (box), coordination, 221–223 263 the START logo (figure), 220 Watergy program, 64, 244, 248 n12 START (Sustaining The Auckland Region Asia. See also specific countries and cities Together) program, 220–222 area at risk if there were a 0.5-meter rise in sea stretched thinking topics, 223–224 level in Asia (figure), 258 Waitakere City Council’s social strategy, 223 changes in the annual mean daily precipitation winning hearts and minds and, 224 expected by 2100 (figure), 258 Australia. See specific cities fuel efficiency standards for vehicles, 270 shift from agriculture to industry, 15 B urbanization projections, 14 Bangalore, India water desalination, 199–200, 258 bus rapid transit system, 82–83 Atlanta, Georgia floor area ratio, 319 spatial planning, 73 Bangkok, Thailand Auckland, New Zealand contribution to the country’s GDP, 15 Auckland Harbor viewed from the east (figure), Barcelona, Spain 219 spatial planning, 73 Auckland Regional Growth Forum, 219–220, 222 Beatley, Timothy Auckland Sustainability Framework, 55, 222–224 role of city leadership in successful sustainable the Auckland Sustainability Framework (figure), urbanization, 43 223 Beijing, China Auckland Sustainable Cities Programme, 220 travel demand management and the legacy of the case study, 219–224 Olympic Games (box), 280–281 eight goals direct the Auckland Sustainability Bogotá, Colombia Framework (box), 222 Transmilenio bus rapid transit system, 272, 290 INDEX | 339 Bolivia Capacity building poverty reduction association with urbanization, benefits of, 104 15 decision support system and, 44–45, 48, 108–109 Brisbane, Australia outlining a process for, 48 Brisbane City Council efforts, 215, 216 support for, 104 bus rapid transit systems, 216–217 Cascading resources case study, 213–217 cascading and looping water in Singapore drought and, 216 (figure), 67 electricity consumption, 213, 217 n2 water use (figure), 66 energy challenges, 213 Case studies examples of grants and rebates for environmen- Auckland, New Zealand, 219–224 tally sustainable home projects (box), 214 Brisbane, Australia, 213–217 Green Heart CitySmart Program, 17, 213–215 Curitiba, Brazil, 169–182 greenhouse gas emissions and electricity use by executive summary, 7 the Brisbane City Council, fiscal years 2005/06- Singapore, 195–203 2008/09 (table), 215 Stockholm, Sweden, 183–193 GreenPower renewable energy source, 214 Yokohama, Japan, 205–210 lessons learned, 217 Catalyst projects location of (map), 214 characteristics of, 117 the measures in the CitySmart Program (box), 214 collaborative design and decision making platform “Our Shared Vision: Living in Brisbane 2026” and, 60, 117–119 policy document, 213 end-state goals and, 117–118 population growth, 213, 217 n1 focus of, 118–119 potable water shortage, 213, 216 function of, 117 practical tips for residents and businesses, 213–214 investment framework and, 101 profile of, 214 neighborhood catalyst project (figure), 118 subtropical climate issues, 213 paradigm change and, 118 suburban lifestyle, 215 a policy matrix (table), 120 tree plantings, 214–215 Charettes. See also Foresight workshops urban planning, 215–216 Auckland, New Zealand’s START design workshop Urban Renewal Brisbane program, 216 format, 221 urban sprawl and, 215 conducting a regional systems design charette, 119, water cycle and water catchment management, 121–122 216 description, 119 design workshop: systems design charette (figure), C 119 Cairo, Egypt Fort St. John, Canada, design charette for a Al Mounira neighborhood’s residential density, 316 sustainable neighborhood concept plan, 146 California. See also specific cities multiday urban-systems design charette for the energy as the second largest expenditure item in one-system approach, 87–88 city government operations, 243 process description, 121–122 energy conservation policies, 24 a regional design charette (figure), 121 green building standards, 247 Chicago, Illinois intelligent transportation systems and, 284 parking space as real estate at Marina Towers percent of energy budget spent on water and (figure), 315 wastewater pumping, 244 China. See also specific cities public agencies with significant influence on air pollution in northern cities, 228–229 electricity production, distribution, and use, Beijing: travel demand management and the legacy California (box), 237 of the Olympic Games (box), 280–281 Calthorpe, Peter codified standards for green buildings and for emergence of the regional city as a crucial scale ecological cities, xviii for long-term planning, 54 development of a low-cost electric car and, 317 Canada. See also specific cities district heating systems and, 233 conservation and domestic water consumption energy efficiency program success, 246 (box), 260 energy reduction target, 270–271 Canada Mortgage and Housing Corporation estimated cost of ambient air pollution in urban life-cycle costing tool for community infrastruc- areas, 17 ture planning, 145–146 landfill gas capture projects, 306, 308 340 | INDEX leading groups for transportation issues, 273 multiple stakeholders and, 33–34, 51 natural gas distribution and, 235 as a new approach to governance, 55 prioritization of public transportation, 269–270 outer tier: urban regions, 53–55, 58–59 ring road model, 275 political election cycle and, 34 solid fuel use, 234 predict-and-provide transportation planning urban area contribution to GDP, 15 models, 53 urban sprawl reduction and, 319 process for, 59 value-based property taxes, 276–277 secretariats and, 59, 113–114 wastewater reuse, 258 shared long-term planning framework and, City-based approach. See also Decision support 34–35, 55–59, 114–119 system stepping stones, 39, 59–60 as an action-oriented network, 44 tiers of, 34, 52–55 capacity building and, 44–45, 48 working groups for, 53, 54–55, 111–114 cities as the most influential institutions within Colorado the modern state, 32–33 locality in the state of Colorado (figure), 277 city council commitment and, 46–47 Commission on Growth and Development core elements, 39, 43–45 Urbanization and Growth, 311 description and focus, 32–33, 43 CommunityViz software developing fluency with Eco2 concepts and, 48–49 graphic depiction (figure), 140 as a development program that supports cities, 43 overlay mapping and, 140 Eco2 Cities Initiative team composition, 44 Condon, Patrick ecological assets and, 33, 44 charette description, 121 engaging the World Bank and other global Curitiba, Brazil development partners in, 47–48 Barigüi Park (figure), 175 executive summary, 3–4 bi-articulated BRT bus and bus station (figure), funding for, 47–48 174 green infrastructure, 33 bus rapid transit system, 170–174, 275–276 identifying local champions, 46 case study, 169–182 National Eco2 Fund Program, 47 citizen ownership and eco-consciousness, 181 national government and, 47 cityscape (figure), 169 physical flows and, 45 color-coded buses (figure), 174 as a planning philosophy that recognizes the role Coresda Cidade project, 180 of local ecological assets, 33, 44 cost issues in ecological and economic planning, reviewing and adapting the Eco2 Cities Initiative, 169 45–46 culture and heritage preservation, 179–180 spatial form and, 45 demographics of, 170 stepping stones, 39, 45–49 density of Curitiba, 2004 (figure), 171 Clean Technology Fund evolution of the integrated bus network in description, 333 Curitiba, 1974-95 and 2009 (figure), 172 Climate Investment Funds flat-rate “social” bus fares, 174, 179 Clean Technology Fund, 333 flood control, 175–176 description, 105 former slums in flood-prone areas (figure), 175 Strategic Climate Fund, 333 future challenges, 180–181 Collaborative design and decision making. See also Garbage That Is Not Garbage Program, 176, 303 Methods for collaborative design and decision green areas, 175–176 making Green Exchange Program, 177, 303 catalyst projects and, 60, 117–119 Green Line, 180–181 the city’s collaborative working group at three illegal occupancy in (figure), 178 tiers: corporate, municipal, and regional Industrial City of Curitiba manufacturing and (figure), 53 industrial park, 177 the collaborative model (figure), 112 innovative approaches to urban planning, 21–23, the collaborative working group (figure), 113 35, 38, 169–182 core elements, 39, 52–59 an innovative waste collection approach (box), description and focus, 33–35, 51–52 303 executive summary, 4 Institute for Research and Urban Planning of inner tier: departments of the city, 52 Curitiba, 23, 169, 176, 177, 181, xix institutional champions and, 51–52, 113 integrated land use and transportation planning, middle tier: municipal services, 52–53 170–173 INDEX | 341 integrated transportation network, 1974-95 and examples of, 64 2009 (figure), 22 implementation difficulties, 62, 64 “job lines” for poor people, 177–178 node and network integration and, 69 leadership issues, 181 one-system approach and, 62–64 lessons learned, 181–182 spatial planning and, 74–75 local character and, 181–182 spatial systems and, 64 location of (map), 170 Design with Nature (McHarg), 133 management of slums, 175, 177–179 Developed countries. See also specific geographic Metropolitan Area Heritage Plan, 179–180 areas, countries, and cities natural drainage system, 76, 175 energy and resource consumption and waste pedestrian-friendly street (figure), 279 generation in, 25 pedestrian streets in the center of (figure), 179 Developing countries. See also specific geographic pedestrian walkways and car-free zones, 169, 172, areas, countries, and cities 179 air pollution in, 227, 228–229 percentage of bus ridership, 169, 182 n1 capacity building, 104 policy integration (figure), 170 challenges in energy management, 229–230 profile of Curitiba and the Curitiba metropolitan challenges of the city-based approach, 45 region, 170 electricity consumption, 232 recycling programs, 176–177 end use energy patterns, 232 regional integration and, 181 energy supply options and, 234 road hierarchy, 173 environmental load profile applications, 192 social considerations, 177–179 government-owned building energy consumption, social housing in (figure), 179 243 solid waste management, 176–177 growth of urban areas, 1, xiii the structure of the integrated public transporta- industrial energy use in large cities, 231–232 tion network (figure), 276 new funding opportunities for city authorities, 26 time and fuel losses caused by congestion (table), peer-to-peer engagement with best practices 173 cities, 103 transfer of development rights for environmental percentage of the urban population living in, 16 preservation (figure), 176 projections for urbanization, 13–14 transfer of development rights for heritage solid fuel use, 232 preservation in (figure), 180 success of homegrown solutions and, 25 transfer of development rights for social housing technical assistance for, 103–104 in (figure), 179 tracking of energy consumption and, 233 transportation network, 169, 170–174 urban planning for energy efficiency, 228 tree plantings, 176 urban share of GDP, 14 the trinary road system (figure), 172 water supply and wastewater treatment capacities urban growth axes (figure), 171 and, 245 waste program (figure), 177 Dhaka, Bangladesh zoning in Curitiba, 2000 (figure), 171 Waste Concern’s composting and sale of solid waste for fertilizer, 26 D Dresner, Simon Dahlström, Kristina four capitals approach, 94–95 four capitals approach, 94–95 DSM. See Demand-side management Decision support system DSS. See Decision support system capacity building and, 108–109 city-based approach and, 44–45, 48, 108–164 E description, 108 Eastern Europe executive summary, 7 natural gas distribution and, 235 methods for analyzing flows and forms, 123–140 Eco2 Cities Initiative methods for collaborative design and decision capacity building, 44–45, 48, 104 making, 111–122 case studies, 19–23, 169–224 methods for investment planning assessment, challenges to overcome, xvii 143–164 “Eco2 City” definition, xvi purpose of methods, 108 “ecological cities” definition, xv Demand-side management “economic cities” definition, xv–xvi benefits of, 64 executive summary, 1–9 a different paradigm for urban design (figure), 76 financial resources, 104–105 342 | INDEX focus of, 26 a comparative economic analysis of selected historical background, xvii–xviii streetlighting systems (table), 245 knowledge sharing with best practice cities, cost implications for city governments, 228 104 cost of energy-efficient alternatives, 248 n4 lessons from best practices cities, 23–26 developed countries and, 25 message of, xiii distributed energy resources, 248 n7 overview of, 30–32, xv–xix district heating systems and, 228, 233–234, 243, pathway diagram, 6 245, 246, 248 n10 possible government role: administering a economic justification, 239 National Eco2 Fund to support participating electric lighting example of energy efficiency, 248 cities (figure), 48 n5 principles and pathways (table), 39–40 Emfuleni, South Africa, project and, 24, 228 principles of, 2–6, 32–38, xvi–xvii end use energy patterns, 232 process of, xvi–xvii energy consumption in cities: key end use purpose of, 2 activities and energy types (table), 232 questions that need to be addressed by, 1–2 energy consumption in cities: main sectors and real world application of, xviii–xix clusters (table), 231 role of, 19 energy efficiency and renewable energy solutions selection criteria, 210 n3 in the public sector, 243–245 structure of the book, xxiii–xxiv energy efficiency assessment, 230–231 technical assistance resources, 103–104 energy planning in the City of Mannheim, World Bank Urban Strategy and, xiii Germany (box), 235 Ecological footprints energy policies and regulations and links to cities description, 92–93 (table), 236 design assessment matrix (table), 94 environmental sensibility, 241 methodological problems with, 93–94 an extensive solar water heating program in usefulness of, 93 Rizhao, China (box), 241 Ecological systems fees and charges for network-based energy characteristics of, 36 services, 236 city-based approach and, 33, 44 financial viability, 239–240 ecological footprints and, 92–93 government-owned buildings and facilities and, lack of government budgeting for ecological 229, 243–244 assets, 37 improving energy efficiency, reducing energy services and economic benefits of urban green costs, and releasing municipal budgets (box), areas, 37 246 strategies for managing change, 36 indicative economics of sustainable energy options Ekins, Paul (table), 240 four capitals approach, 94–95 indicators and benchmarks and, 241–242 Electricity use. See Energy resources an inflexible energy system (figure), 99 ELP. See Environmental load profile innovative energy infrastructure (figure), 72 Emfuleni, South Africa institutional interactions and, 236–238 demand-side management and, 62 integration of energy and water systems and, energy and water conservation project, 24, 228 69–70 Energy resources International Energy Agency accounting of urban an adaptable energy system (figure), 99 energy use, 231 addressing cities’ multidimensional energy International Energy Agency definition of cities, challenges, 227–228 227 n1 Alliance to Save Energy’s Watergy program, 244, land use planning and land development policies 248 n12, 263 and, 229 barriers to investing in sustainable energy, 242 LEED (Leadership in Energy and Environmental Brisbane, Australia, case study, 213–214, 217 n2 Design) and, 244, 248 n11 built environment and, 229, 231, 245–247, 248, local government influence on, 228, 248 n2 248 n3, 248 n6 market barriers to investment in, 242, 248 n8 bundling city programs and, 248 minimum energy performance standards, 236 city government role, 237–239, 242–247 national and regional government role, 236–237 city’s energy profile factors, 230–231 New York City: key stakeholders in electricity combined water and energy activities in supply and consumption (figure), 238 water supply management (box), 262 overlapping energy supply networks and, 234–235 INDEX | 343 overview, 227–230 energy consumption and urban planning in, 25 passive houses, 248 n6 fuel efficiency standards for vehicles, 270 policies, legislation, and regulations, 235–236 fuel taxes, 270 public agencies with significant influence on peak load management and, 65 electricity production, distribution, and use, European Cooperation in Science and Technology California (box), 237 assessment of environmental effects, 93–94 public buildings and, 243–244 Towards Sustainable Urban Infrastructure: public lighting and, 228, 245 Assessment, Tools and Good Practice, 94 recommendations for promoting sustainable European Union energy and increasing energy efficiency, electricity and heating demands from the public 247–248 sector, 243 renewable energy supply technology, 234, 239–240 sanitary and energy systems integration in F Shanghai, China, 78 FARs. See Floor area ratios sector note, 227–249 Financial resources Singapore’s management of, 201–202 financial instruments (figure), 105 social equity and, 240–241 importance of, 105 solid fuel use, 232, 233, 234 market-based instruments, 335–336 spatial and temporal considerations, 234–235, 247 multidonor funds, 333–334 stakeholder dynamics and, 238–239 World Bank Group, 104–105, 329–332 Stockholm, Sweden’s Hammarby Model, 20–21, Flood management 187–192 area at risk if there were a 0.5-meter rise in sea a stylized framework for urban energy planning level in Asia (figure), 258 and management (figure), 230 climate change and, 258 supply- and demand-side measures, 244–245 Curitiba, Brazil, flood control, 175–176 supply options, 233–234 Floor area ratios sustainable energy actions of city governments, mobility of people and goods and, 319, 322 242–247 regulations limiting, 324–325 sustainable urban energy indicators and bench- Foresight workshops. See also Charettes marks: preliminary proposal (table), 242 challenges of forecasting, 160–161 traditional urban energy planning and, 227 components of, 162 typical barriers to public sector sustainable energy developing the capacity for forecasting land use investments (table), 243 demand and, 161 urban density and transportation-related energy external force impact and, 161–162, 164 consumption (figure), 75, 247 influence diagrams and, 162 urban energy supply sources and systems: a mitigating and adapting plans, 160–161 stylized sketch (figure), 234 population growth forecasting, 161 urban spatial development and, 247 resiliency and, 162, 164 use in cities, 230–233 supply forecasting, 161 waste disposal services and, 245 template for an influence diagram (figure), 163 water supply and wastewater treatment and, Fort St. John, Canada 244–245 analysis of costs and value in the scenarios, water use and, 261–262 148–152 Environmental load profile baseline low-density scenario developed using a application in developing countries, 192 mask (figure), 147 description, 157 baseline scenario: annual operating costs per unit the environmental load profile (figure), 158 (figure), 149 life-cycle calculations, 158 baseline scenario: estimate of taxes, user fees, and opportunities to reduce environmental impacts initial development cost charges (figure), 150 (figure), 160 baseline scenario: graphic representation of initial planning process and, 159–160 capital costs and annual operating costs per unit Stockholm, Sweden, case study, 103, 157–160, 183, (figure), 149 189–190, 192 baseline scenario: graphic representation of true strengths of, 158, 189–190 life-cycle costs (figure), 150 Europe. See also specific regions, countries, and cities baseline scenario: initial capital costs (figure), combined heat and power plants, 68 148 district heating systems and, 233 baseline scenario: representation of true life-cycle costs, including replacement (figure), 149 344 | INDEX baseline scenario for low-density, primarily single- subsidized low-income settlement, 324 family residential and apartment neighborhood, a three-dimensional representation of the spatial 146, 147, 148–150, 153–154 distribution of population, Gauteng, South City of Fort St. John, Canada: comparative Africa, and metropolitan Jakarta, Indonesia, statistics for two scenarios (table), 147 2001 (figure), 317 clarification of the greater affordability and value Geddes, Patrick of sustainable options, 154 urban planning and, xviii comparison of baseline and sustainable neighbor- Geographic information systems hood scenarios: annual life-cycle costs per description, 133 household (figure), 154 overlay mapping and, 133, 135–136, 139–140 design charette for a sustainable neighborhood GHGs. See Greenhouse gases concept plan, 146 GISs. See Geographic information systems insights from the case study, 153–157 Glen Rock, New Jersey life-cycle costs example, 90–91, 146–157 street space per person, 316 sustainable neighborhood scenario: annual Global Environment Facility operating costs per unit (figure), 151 description, 333, 334 sustainable neighborhood scenario: estimate of Goa, India taxes, user fees, and initial development cost sustainable urban design in, 79 charges (figure), 152 Green infrastructure sustainable neighborhood scenario: graphic description, 76 representation of initial capital costs and annual examples, 76 operating costs per unit (figure), 151 integrating the benefits of natural systems in sustainable neighborhood scenario: graphic communities (figure), 77 representation of true life-cycle costs (figure), Greenhouse gases 152 citywide greenhouse gas emission reduction and sustainable neighborhood scenario: initial capital Carbon Finance (box), 338 costs per unit (figure), 151 reduction of, 306, 308 sustainable neighborhood scenario: representation Grontmij AB of true life-cycle costs, including replacement environment load tool development, 103, 183 (figure), 152 Gujarat, India sustainable neighborhood scenario for medium- Gujarat State Disaster Management Authority, 136 density, varied housing forms and mixed use, land pooling and land readjustment project, 84 146, 148, 150–157 Shantigram township: final serviced land parcels updating development cost inputs, 153–154 for sale (figure), 86 Fortaleza, Brazil Shantigram township before the land readjust- water distribution and sanitation service access ment scheme (figure), 85 improvement, 64, 244 the Watergy case study (box), 263 H Four-capitals approach Hamilton, Canada description, 94–95, 101 life-cycle costs example, 90 as a good choice for Eco2 cities, 95–96 Hammarby Sjöstad project sample indicators in the four-capitals approach aim of, 185–186 (table), 96 City District Administration and, 193 n1, 193 n2 France City Planning Administration and, 190, 193 n1, 193 Paris Climate Protection Plan, 228 n2 Freiburg, Germany description, 20–21, 67, 92, 157, 158–159, 183 alignment of transit services with land develop- Development Administration and, 190, 193 n2 ment planning, 83 Environment and Health Protection Administra- land use plans to address storm water runoff, 76 tion and, 193 n1, 193 n2 Fulton, William B. Fortum and, 187 emergence of the regional city as a crucial scale goals for sustainability, 187 for long-term planning, 54 Hammarby Model, 187–192 highlights, 288 G historical background, 186–187 Gauteng, South Africa Housing Service Company and, 193 n2 sharing larger plots among lower-income local investment subsidy program funding across households, in Sebokeng (figure), 325 types of projects in Sweden (figure), 191 spatial distribution of populations, 316 master plan (figure), 187 INDEX | 345 monitoring major reductions in environmental World Bank loans and International Development loads (figure), 190 Association credit: subnational development National Road Administration and, 190 policy lending (table), 330 national subsidy program for, 191 International Energy Agency profile of Hammarby Sjöstad, 186 accounting of urban energy use, 231 project management, 187, 190–191 definition of cities, 227 n1 public transportation and, 187 International Finance Corporation Real Estate, Streets, and Traffic Administration description, 104, 331 and, 193 n1 World Bank Group financing: joint International Stockholm Local Transport Authority and, 190 Finance Corporation-World Bank subnational Stockholm Waste Management Administration finance (table), 331 and, 187 Investment framework. See also Methods for Stockholm Water Company and, 187, 193 n2 investment planning Traffic Administration and, 193 n2 benefits of investing in sustainability and resil- Waste Collection Administration and, 190–191 iency, 37–38 Hong Kong, China catalyst projects and, 101 land management practices, 276 city green areas and, 37 public transportation system, 275, 289 core elements, 40, 89–100 value-based property taxes, 276 cost-benefit analysis and, 92 Housing issues cost-effectiveness and, 92 Curitiba, Brazil, case study, 178–179 description and focus, 37–38, 89 land and housing affordability, 321–326 ecological footprints and, 92–93 Singapore’s high-density development, 195, executive summary, 5–6 196–197, 203 expanded framework for accounting, 92–97 slums and, 15–16, 25–26, 178–179 forecasting the impact of plausible changes, 101 spatial planning and, 70, 73–76 four capitals approach, 94–96, 101 traditional dwelling supply systems (figure), 72 government budgeting for ecological assets and, 37 urban form, land use mix, density, connectivity, indicators for target-setting and monitoring and proximity and, 70, 73–76 impacts, 96–97 Houston, Texas life-cycle costing, 89–92, 101, 101 n1, 144–157 broad view of the city center (figure), 74 protection and enhancement of capital assets and, energy-saving benefits of trees, 182 n2 94–96 urban sprawl example, 73 protective risk management for all threats, 97–100 Howard, Ebenezer sample indicators in the four-capitals approach Garden City concept, xviii (table), 96 stepping stones, 40, 100–101 I IPPUC. See Institute for Research and Urban IEA. See International Energy Agency Planning of Curitiba India. See also specific regions and cities Irvine, California meta diagram on energy for a proposed new town baseline water flows (figure), 126 (figure), 130 target for the comprehensive coverage of re- Indicators for monitoring capital assets claimed water for commercial properties, 116 choice of, 97 feedback on, 101 J sample indicators in the four-capitals approach Jakarta, Indonesia (table), 96 spatial distribution of populations, 316 targeted indicator type, by level of city personnel a three-dimensional representation of the spatial (figure), 97 distribution of population, Gauteng, South InfraCycle Africa, and metropolitan Jakarta, Indonesia, software for life-cycle costing, 164 n1 2001 (figure), 317 Institute for Research and Urban Planning of Japan. See also specific cities Curitiba, 23, 169, 176, 177, 181 cities in Japan selected for the Eco2 Cities International Development Association Initiative, 210 n3 World Bank-International Development Associa- peak load management of transportation systems, tion financing, 329–330 65 World Bank loans and International Development wastewater reuse, 258 Association credit: specific investment loans (table), 330 346 | INDEX K Lerner, Jaime Kabul, Afghanistan urban planning achievements, 23 informal houses, 324 Life-cycle costing Kyoto Protocol annualization of costs, 90 Clean Development Mechanism, 304, 306, 308, benefits of, 145 335 case-by-case application of, 155 the Clean Development Mechanism and waste complex integrated designs and, 145 management (box), 307 costs included, 89 ending date of, 337 description, 89, 101 n1, 143, 144–145 Fort St. John, Canada, example, 90–91, 146–157 L future cost management and, 154–155 Land pooling importance of, 90 description, 84 InfraCycle software, 164 n1 Land readjustment integrated land use and community infrastructure description, 84 planning applications, 145–146 Land use the life cycle of a building (figure), 144 affordability of land and housing, 321–326 life expectancy and rate of deterioration for assets the affordability of the minimum plot size in and, 90 suburban areas, Addis Ababa (figure), 323 operating and maintenance costs for long-lived coordination with transit, 320–321 elements and, 90 Curitiba, Brazil, case study, 170–173 reserve funding and, 91–92 floor area ratios and, 319, 322, 324–325 RETScreen Clean Energy Project Analysis green infrastructure and, 76 Software, 155–157 the impact of government on land markets, the software for, 145–146 informal sector, and the spatial structure of tools for, 90, 143 cities (table), 318 uses for, 101 impacts of government actions on land markets, London, United Kingdom the size of the informal sector, and the spatial congestion and road pricing schemes, 271 structure of cities (table), 82 ecological footprint of, 93 incorporating energy efficiency and renewable forum for transportation decision making, 273 energy in land use planning and land develop- report on sustainable urban infrastructure, 112–113 ment, 228, 229 smog disaster of 1952, 227 land subdivision regulations, 325–326 summary of resource flows through London, 2000 macroplanning, 277 (figure), 93 microplanning, 277, 279 Long-term planning framework minimum plot sizes and apartment sizes, 322–324 Aalborg Charter example, 55, 58 new development needs, 83 catalyst projects and, 117–119, 120 recycling of land into new densities, 319–320 characteristics of, 114–115 regulations’ effect on the supply and price of land city profiles and, 115 and floor space, 322–326 combining forecasts and backcasts to achieve rent controls and, 319–320 resiliency and sustainability (box), 56–57 retrofitting and redevelopment of existing areas, defining boundaries and, 115 83–86 developing a shared framework, 114–119 shared parcel design, 323–324 end-state goals for, 115–116, 117–118 Singapore’s high-density development, 195, enhancement of communications and coordina- 196–197, 203 tion and, 114–115 slums and, 15–16, 25–26 evaluating alternative scenarios, 116–117 subsidized housing regulations and, 324 focus of, 58 transportation and, 267, 271, 275–280 “framework” definition, 55, 114 types of regulations, 322 goals for, 115–116 urban form, land use mix, density, connectivity, hierarchical structure of, 55 and proximity and, 70, 73–76 implementing key strategies, 117–119 urban land pooling and land readjustment (box), integrated design teams for, 56, 119 84 locally specific set of external forces and, 59 water resources and, 265 a long-term planning framework (figure), 115 zoning and, 325 matrix of stakeholders and policies for, 119 Latin America. See specific countries and cities perspectives on, 55 LCC. See Life-cycle costing rapid process for, 59 INDEX | 347 regional growth strategy and, 116–117 Meta diagrams scope of, 115 aggregation tools, 132–133 software tools, 59 approaches to the development of (figure), 131 target setting, 116 auditing reference buildings to create a meta vision statements and, 115–116 diagram (figure), 132 Looping resources bottom-up data for, 130, 132 as the aim of environmental technologies for calculating performance indicators in transparent cities, 67 and comparable ways, 129–130 cascading and looping water in Singapore (figure), combination of, 125 67 communicating alternative development scenarios closed loop, 67, 198 and, 127–128 closed water loop in Singapore (figure), 199 creating a common language for interdisciplinary description, 66 groups and, 126–127 graphic depiction (figure), 67 data collection issues, 130, 132 strategic investment opportunities, 67 definition, 123 Los Angeles, California an example of a countrywide meta diagram planting of trees along the streets to conserve (figure), 127 energy, 76 field data and, 132–133 Low-income persons hypothetical data and, 132–133 access to all city areas and, 312 material flow analysis, 123–124 housing affordability and, 323–324 meta diagrams patterns: physical flows (figure), “job lines” for poor people in Curitiba, Brazil, 127 177–178 reasons for using, 124–130 land and housing affordability and, 321–326 sample forms for the collection of standardized low-density, polycentric cities and, 316 data on water flows (figure), 134 sharing larger plots among lower-income sample universal flow matrix for water (figure), households, in Sebokeng, Gauteng, South Africa 135 (figure), 325 Sankey diagrams and, 123–124, 132 social equity in access and affordability of energy setting priorities for research and design and, 129 resources, 240–241 top-down data for, 130 targeted water subsidies for poor households in traditional, modern, and ecological patterns for Singapore, 201 physical flows, 126–127 urban planning benefits, 25–26 typical construction, 125 urban poor as stakeholders in the city, 113 visualization dimension, 123 urbanization and, 15–16 Methods for analyzing flows and forms. See also One-system approach M meta diagrams and material flow analysis, 123–133 Madrid, Spain overlay mapping, 133–140 forum for transportation decision making, 273 overview, 108 Mannheim, Germany Methods for collaborative design and decision energy planning (box), 235 making Maps the collaborative working group (figure), 113 Auckland, New Zealand, 219 the core team and sector advisers (figure), 114 Brisbane, Australia, 214 organizing and managing collaborative working Curitiba, Brazil, 170 groups, 111–114 Singapore, 196 overview, 108 Stockholm, Sweden, 184 regional systems design charette, 119, 121–122 Yokohama, Japan, 206 secretariats and, 113–114 McHarg, Ian shared long-term planning framework for, 114–119 Design with Nature, 133 Methods for investment planning Meadows, Donnella environmental load profile, 143–144, 157–160 catalyst projects, 118 foresight workshops and resiliency planning, Medhurst, James 160–164 four-capitals approach, 95 life-cycle costing, 144–157 Mehndiratta, Shomik the life cycle of a building (figure), 144 transportation issue discussion, 291 n2 performance valuation on an Eco2 pathway and on Melbourne, Australia a long-term and project-by-project basis, 145 Council House 2 building, 239 risk assessment, 145 348 | INDEX Methods for investment planning assessment N overview, 108 National Eco2 Fund Program Milan, Italy city-based approach and, 47 Eco-Pass project, 279 possible government role: administering a emission-based road pricing in Milan, Italy (box), National Eco2 Fund to support participating 280 cities (figure), 48 polluter pays principle, 271 Natural gas. See Energy resources Mobility of people and goods. See also New Delhi, India Transportation meta diagram of water flows (figure), 125 car space requirements and available space New York City densities (figure), 315 car space requirements and available space central business districts and, 313, 314, 319, 320 densities (figure), 315 commuting mobility of workers and consumers, key stakeholders in electricity supply and 312 consumption (figure), 238 composite city model and, 314 PlaNYC 2030, 228 congestion disadvantages, 311–312 street space per person, 315–316 coordination of land use and transit, 320–321 New Zealand. See also Auckland, New Zealand floor area ratio regulation and, 319, 322, 324–325 zero waste landfill target for cities, 116 government regulations and, 317–320 19th century urban planning models importance of maintaining, 311–312, 316–317 description, 31, xviii job dispersion and, 317–318 influence on present-day planning, 31–32 location mobility among firms and households, 312 Node and network integration low-density, polycentric cities and, 313, 316 benefits of, 68–69 mixed use neighborhoods and, 314 cluster management of waste (figure), 68 mobility infrastructure hierarchy (table), 282 distributed systems (figure), 70 mobility management, 281, 283 one-system approach and, 68–69 monocentric cities and, 313, 319, 321 viability of distributed energy systems, 68–69 multimodal transportation systems and, 312 North America. See also specific countries and cities parking and traffic space requirements and, energy consumption and urban planning in, 25 314–316 parking space as real estate at Marina Towers, O Chicago (figure), 315 OECD. See Organisation for Economic Co-operation real estate market and, 317, 318–320 and Development real estate transaction costs and, 312, 327 n1 One-system approach spatial structures and trip patterns (figure), 313 alignment of policies in the planning framework, Tata Nano car example, 317, 327 n2 81–83, 88 trip patterns and, 312–313 benefits of integration, 36 urban village model and, 313–314 capacity building and, 87 zoning issues, 312 cascading resource use, 65–66 Monte Carlo assessment colocation of new structures and rights-of-way, description, 98 77–78 Multifunctionality of common spaces and structures combining flows and forms to create a transdisci- combined trenching for infrastructure systems plinary platform (box), 8, 63 (figure), 73 coordination of instruments for, 80–81 description, 69 core elements, 40, 62–86 ecological footprints and, 93 creating social amenities as intrinsic attributes, 78 multiple uses of a public school (figure), 77 demand-side management and, 62–64 Olympic Village, Vancouver, Canada, example, demand versus supply approach, 64 69–70 description and focus, 35–36, 61–62 traditional dwelling supply systems (figure), 72 enabling implementation of integration strategies, West Coast Environmental Law study, 70 79–80 Mumbai, India executive summary, 4–5 Null Bazar’s residential density, 316 government actions and, 81–83 Municipal services green infrastructure, 76 collaborative design and decision making platform impacts of government actions on land markets, and, 52–53 the size of the informal sector, and the spatial structure of cities (table), 82 integrated implementation, 78–86 INDEX | 349 integrating flows, 62–70 simple contour maps and, 133, 135 integrating forms with flows, 70–78 suggestions for using, 135–140 integration of key subsystems, 35, 62–70 integration of nodes and networks, 68–69 P just-in-time training for professional staff, 86–87 Paris, France layering of uses, 77 forum for transportation decision making, 273 looping resource use, 66–67 Parking multiday urban-systems design charette for, 87–88 space for as real estate, 314–315 multifunctionality of common spaces and space requirements for, 314–316 structures, 69–70, 71–73 subsidies for, 314 new development needs, 83 Peak load management omnidirectional flows, 68–69 description and goals, 65 peak load management, 65 Performance monitoring preparatory integrated design workshops and, 87 budget allocation for data collection, analysis, and retrofitting and redevelopment of existing areas, publication, 101 83–86 feedback on key indicators, 101 sanitary and energy systems integration in integrated approach to, 100 Shanghai, 78 integrating into regular reporting, 100 sequencing and, 78–79 Poland Singapore case study, 195–203 improving energy efficiency, reducing energy spatial planning and urban design, 70–78 costs, and releasing municipal budgets (box), stepping stones, 40, 86–88 246 Stockholm, Sweden, case study, 183–193 Pollution synchronization of policies among all stakehold- air pollution in developing countries, 227, 228–229 ers, 81 air pollution measures in Singapore, 202 systems theory and, 36 estimated costs of, 17 urban form, land use mix, density, connectivity, health impacts of air pollution, 228 and proximity, 70, 73–76 slums and, 16 Ontario, Canada solid fuel use and, 232 analysis of money spent on services, 73 Poverty. See Low-income persons; Slums Organisation for Economic Co-operation and Principles for the Eco2 Cities Initiative Development city-based approach, 3–4, 32–33 funding of project-based greenhouse gas emission core elements and stepping stones, 38–40 reductions in developing countries and Eco2 Cities: principles and pathways (table), 39–40 countries with economies in transition, 335 expanded platform for collaborative design and sustainable development indicators, 101 decision making, 4, 33–35 top 10 most rapidly growing cities, 213 function of, 32 Overlay mapping interrelation of, 32 challenges of, 135 investment framework that values sustainability CommunityViz software and, 140 and resiliency, 5–6, 37–38 an example of an overlay map of renewable energy one-system approach, 4–5, 35–36 sources (figure), 139 Public lighting an example of an overlay map used for risk streetlamp retrofits, 245 assessment (figure), 138 Växjö Municipality, Sweden’s replacement of geographic information systems and, 133, 135–136, streetlights with high-efficiency lamps, 228 139–140 graphic depiction (figure), 137 R hazard mapping example, 136 RAND Corporation history of using maps to convey complex relation- Delphi forecasting technique, 161 ships, 133 Redevelopment integrating local knowledge, 139 of existing urban areas, 83–86 layering data (figure), 136 Regional growth strategy mapping the capacity of existing infrastructure adoption of best practices from successful regions, and comparing it with the projected demand for 117 services, 137 benefits of, 117 quality inputs and, 138–139 description, 116–117 risk assessment and, 136–137 length of the process, 117 350 | INDEX Republic of Korea. See also specific cities S land management practices, 276 San Diego, California Reserve funds target for the comprehensive coverage of aim of, 91 reclaimed water for commercial properties, 116 importance of, 91 Sankey diagrams sufficient amount for, 91–92 description, 123–124 Resiliency graphic depiction (figure), 124 definition, 98 recording flows, 132 elements of resilient design, 98–99 Secretariats measurements of, 99 characteristics of effective secretariats, 114 redundancy and, 99 collaborative design and decision making and, 59, risk assessment and, 98 113–114 self-reliance and, 99 Sector notes Retrofitting energy consumption, 227–249 of existing urban areas, 83–86 executive summary, 7, 9 streetlamp retrofits, 245 solid waste, 295–309 RETScreen Clean Energy Project Analysis Software transportation, 267–292 cost analysis worksheet, 156 water resources, 251–265 description, 155 Sensitivity analysis emission analysis worksheet, 156 description, 98 an example of a RETScreen financial summary Seoul, Korea (figure), 156 urban village model and, 314 an example of a RETScreen financial summary Sequencing visual (figure), 157 description, 78–79 financial analysis worksheet, 156 time rings (figure), 79 graphic representation (figure), 155 Shanghai, China Product Database, 156 meta diagram for Jinze: an advanced system sensitivity and risk analysis worksheet, 156–157 (figure), 128 RGS. See Regional growth strategy meta diagram for Jinze: the current energy system Richa, Mayor Carlos (figure), 128 popularity of, 23 a schematic for a downtown neighborhood Risk assessment (figure), 129 description, 144 Shanghai Municipal Sewage Company plans to an example of an overlay map used for risk construct a large-scale incineration plant for assessment (figure), 138 sludge drying, 78 expansion of to include resiliency and adaptive Singapore capacity, 98–99 air pollution measures, 202 Monte Carlo assessment, 98 appropriation of land for public use, 196 overlay mapping and, 136–137 car ownership controls, 321 performance monitoring, 100, 101 cascading and looping water in Singapore (figure), sensitivity analysis, 98 67 standard practices, 97–98 case study, 195–203 Rizhao, China cityscape (figure), 195 an extensive solar water heating program in (box), closed water loop in (figure), 199 241 demographics, 195, 196, 203 solar energy systems in, 69 desalinated water, 199–200 Rocky Mountain Institute distance-based through-fare structure, 197 viability of distributed energy systems, 68–69 E2 Singapore energy efficiency plan, 202 Royal Institute of Technology electronic road pricing, 197–198, 202, 271 environmental load profile and, 103, 157, 189 energy resources and, 201–202 Rural areas forum for transportation decision making, 273 including in the urban region, 58 Four National Taps water strategy, 198–199 migration to urban areas and, 16 Garden City campaign, 195, 203 urban areas as markets for the agricultural output a green area in (figure), 197 of, 15 green areas, 197, 203 water resources and, 259–260 Green Plan 2012, 201 high-density development, 195, 196–197, 203 Housing and Development Board, 199, 203 INDEX | 351 importance of resource planning, 195 the affordability of the minimum plot size in importation of water from Malaysia, 198, 199 suburban areas, Addis Ababa (figure), 323 integrated water resource management strategy, alignment of policies in the planning framework, 66 81–83 Inter-Ministerial Committee on Sustainable Atlanta and Barcelona (box), 73 Development, 201 car space requirements and available space land area, 195 densities (figure), 315 land management practices, 276 economic advantages of concentrating economic Land Transport Authority, 197 activities in large cities, 311 land use planning, 196–197 economic competitiveness and, 75 lessons learned, 195, 196–197, 203 energy resources and, 234–235, 247 location of (map), 196 floor area ratio and, 319 Marina Bay development, 196–197 the impact of government on land markets, the Ministry of the Environment and Water Resourc- informal sector, and the spatial structure of es, 201 cities (table), 318 National Recycling Program, 202 impacts of government actions on land markets, NEWater, 200 the size of the informal sector, and the spatial profile of, 196 structure of cities (table), 82 public satisfaction with public transportation, 203 importance of, 311, 316–317 n1 land and housing affordability, 321–326 Public Utilities Board and, 198–201 macrolevel planning, 275 rainfall totals, 198, 203 n2 managing the spatial structure of cities, 311–327 rainwater catchments, 199 methodology and training for urban planners and river cleanup and, 202 managers, 326 share of nonrevenue water, 200, 203 n3, 259 mobility of people and goods and, 311–321 Singapore metro network: centered on expansion monitoring departments and, 327 in the central business district (figure), 321 new development needs and, 83 Sustainable Singapore Blueprint: “A Lively and objectives and targets for, 327 Livable Singapore: Strategies for Sustainable one-system approach and, 70–78 Growth,” 201 operational departments and, 327 targeted water subsidies for poor households, 201 parking space as real estate at Marina Towers, transportation issues, 197–198, 203 n1, 271, 275 Chicago (figure), 315 Urban Redevelopment Authority, 196 a plan for the active management of constantly value-based property taxes, 276 evolving urban spatial structures, 326–327 vehicle quota system, 196, 197, 202 the profile of densities of built-up areas in 12 large waste management, 202 metropolises (figure), 320 wastewater reuse, 258 reorganization of urban planning departments, water consumption and water bills per household 326–327 in Singapore, 1995, 2000, and 2004 (table), 201 retrofitting and redevelopment of existing areas water resource management, 195–196, 198–201 and, 83–86 water tariff in (table), 200 sharing largest plots among lower-income water tariffs, 196, 200–201 households, in Sebokeng, Gauteng, South Africa Slums. See also Housing issues (figure), 325 basic human requirements and, 15 Singapore metro network: centered on expansion Curitiba, Brazil, management of, 175, 177–179 in the central business district (figure), 321 land and housing issues, 15–16, 25–26 spatial structures and trip patterns (figure), 313 pollution and, 16 a three-dimensional representation of the spatial Software distribution of population, Gauteng, South InfraCycle software for life-cycle costing, 164 n1 Africa, and metropolitan Jakarta, Indonesia, life-cycle costing, 145–146 2001 (figure), 317 long-term planning framework tools, 59 transportation issues, 275, 281 overlay mapping, 140 trends in, 319 RETScreen Clean Energy Project Analysis urban form, land use mix, density, connectivity, Software, 155–157 and proximity, 70, 73–76 Solid waste. See Waste management Squamish, Canada South Africa. See also specific cities annual energy use as an indicator in (figure), 131 informal plot subdivisions, 324 an example of an overlay map used for risk Spatial planning. See also Urban planning assessment (figure), 138 352 | INDEX risks on the landscape, 136–137 Chuo Ward reserve fund for school facilities, Stern Review on the Economics of Climate Change 91–92 loss of global GDP in business-as-usual scenarios, Tokyo Waterworks, 91 17–18 value-based property taxes, 276 Stockholm, Sweden Towards Sustainable Urban Infrastructure: Assess- brownfields development, 185 ment, Tools and Good Practice, 94 case study, 183–193 Transportation. See also Mobility of people and city-owned land, 185 goods cityscape (figure), 183 amount of roadway used by the same passengers congestion and road pricing schemes, 271 traveling by car, bicycle, or bus (figure), 291 demographics of, 184 average new vehicle fuel economy standards development strategies (box), 185 (figure), 271 ELP-related achievements in Hammarby Sjöstad balancing investments in, 283 (figure), 159 Bangalore, India, bus rapid transit system, 82–83 environmental load profile and, 103, 157–160, 183, basic and advanced stakeholder interests (table), 189–190, 192 286 future plans, 191–192 basic and advanced transport interventions Hammarby Model, 20, 187–192 (table), 274 Hammarby Sjöstad project to improve sustainabil- Beijing: travel demand management and the legacy ity, 20–21, 67, 92, 157, 158–159, 183, 185–192 of the Olympic Games (box), 280–281 initial first-phase results of Hammarby Sjöstad benefits of, 267 according to the Environmental Load Profile the benefits under speed conditions of select Life-Cycle Analysis Tool (figure), 21 highway applications of intelligent transporta- inner city of Stockholm and adjacent development tion systems (figure), 284 areas (figure), 186 bicycle- and pedestrian-friendly pathways, 24, 169, lessons learned, 192 172, 179, 277, 279 local investment subsidy program funding across Brisbane, Australia, case study, 216–217 types of projects in Sweden (figure), 191 building block approach, 268 location of (map), 184 bus rapid transit (box), 288 profile of, 184 carbon taxes, 270, 290 public transportation, 275 charging users for costs of travel and parking, 271 Royal Institute of Technology, 103, 157, 189 cheap or free parking subsidy effects on car use, 75 Stockholm Royal Seaport project, 191–192 city structure and development patterns and, target for all new construction to be carbon 275–276 neutral by 2030, 116 classification of intelligent transportation system urban village model and, 313–314 market packages (figure), 284 Vision 2030, 184 CO2 emissions from a range of vehicle types Storm water management (table), 286 flood management, 258 coordination of land use with transit, 320–321 integrated storm water management (figure), 72 cost-benefit analyses, 287 rainwater harvesting, 257–258 Curitiba, Brazil, public transit system, 22, 169, Strategic Climate Fund 170–174, 179 Forest Investment Program, 333 Curitiba: terminal Carmo, adjacent shops, and Pilot Program for Climate Resilience, 333 Citizenship Street (figure), 289 Scaling-Up Renewable Energy Program for demand forecasts and, 288–289 Low-Income Countries, 333–334 design and orientation of buildings and, 277 Sustainable Cities Program desired outputs, 268 European Awareness Scenario, 161 economic and financial aspects, 287–290 Sweden. See specific cities elements of a public transportation network (table), 283 T elements of utility in models for choosing a Tamil Nadu, India transportation mode (figure), 289 streetlamp retrofits, 245 emission-based road pricing in Milan, Italy (box), Thailand 280 urban area contribution to GDP, 15 emissions inventories and, 290 Tianjin, China energy consumption and, 290–291 landfill gas capture project, 306, 308 environmental protection laws and, 270–271 Tokyo, Japan INDEX | 353 an example of microdesign and walking iso- road patterns and design and, 277 chrones (figure), 279 road space allocation, 272, 290 financing mechanisms, 276–277 sector notes, 267–292 financing options, 289–290 sensitivity analyses, 287–288 flat-rate “social” bus fares, 174, 179 Singapore metro network: centered on expansion the four pillars of sustainable urban transportation in the central business district (figure), 321 institutions (box), 273 stakeholder dynamics, 285–286 four-step transportation model, 290 the structure of the integrated public transporta- the framework of transportation intervention tion network in Curitiba, Brazil (figure), 276 (table), 274 summary of cross-sector integration opportunities fuel taxes and, 270 (table), 292 high-density activity and job sites and, 275 summary of select vehicle and fuel interventions high-quality public transportation corridors, 275 (table), 285 the impact of government on land markets, the tax increment financing, 290 informal sector, and the spatial structure of time dimension and, 281 cities (table), 318 transit-oriented development (box), 278 independent inputs, 267 travel demand management, 279 infrastructure and services, 267, 281–285 type of development and the implications for the input-output framework of transportation transportation (table), 282 interventions (figure), 268 typical objectives or desired outputs of transporta- institutional context, 272–273 tion interventions (table), 269 institutional functions and jurisdictions in urban densities and, 277 transportation (table), 272 urban density and transport-related energy integration opportunities, 290–291 consumption (figure), 75 intelligent transportation systems, 283–285 urban expansion and land management policies, intersections and crossings and, 277 271 land development and value capture and, 289 urban transportation outcomes in selected cities land management and, 276 (table), 269 land use, densities, connectivity, and access and, vehicle fleet and fuel supply, 267, 285 75–76 World-Bank financed project requirements, 291 n1 land use and travel demand, 267, 275–280 locality in the state of Colorado (figure), 277 U macroplanning, 277, 290 UN-Habitat. See United Nations Human Settlements managing speed, 284–285 Programme metropolitan and local government responsibili- United Kingdom. See also specific cities ties, 271–272 water regulations, 255 microplanning and, 277, 279 United Nations Human Settlements Programme mobility infrastructure hierarchy (table), 282 estimate of the number of slum dwellers in mobility management, 281, 283 developing countries, 16 new technology and, 24–25 United Nations Population Fund overview, 267–268 study of the link between urbanization and parking and access management and, 279 poverty, 15 peak load management and, 65 United States. See also specific states and cities pedestrian-friendly street in Curitiba, Brazil fuel efficiency standards for vehicles, 270 (figure), 279 fuel taxes, 270 physical systems, technology, and spatial planning, integrated transport, air quality, and land use 273–285 plans, 271 policies, legislation, and regulations affecting the LEED-certified office and school buildings, 244 transport sector (table), 270 low-density, polycentric cities and, 316 policy, legislative, and regulatory framework, Urban areas. See also Urban planning; specific cities 269–272 boundaries for, 58–59 predict-and-provide transportation planning challenges cities face, 30–32 models, 53 collaborative design and decision making platform prioritization of public transportation, 269–270, and, 53–55, 58–59 274–275 collaborative working group for, 54–55 public-private partnerships and, 289, 291 description, 53–54 ring road model and, 275, 276 emergence of the regional city as a crucial scale road, vehicle, and fuel standards, 270 for long-term planning, 54 354 | INDEX factors in the competitiveness of cities, 14 V importance of the regional context, 58 Vancouver, Canada increase in migration to, 16 CitiesPlus model, 221 institutional barriers to implementing integrated forum for transportation decision making, 273 solutions to challenges, 30 Olympic Village water system integration with lessons from best practice cities, 23–26 energy supply systems, 69–70 limited resources and, 30 Växjö Municipality, Sweden locked-in relationships among networks of public replacement of streetlights with high-efficiency and private institutions and existing technolo- lamps, 228 gies and, 30–31 Victoria, Canada as markets for the agricultural output of rural Dockside sewage treatment system, 79–80 areas, 15 misinformation about innovative practices and, 30 W new funding opportunities, 26 Waste management 19th century urban planning models and, 31–32, aims of, 295 xviii capital investment and, 308–309 poverty issues, 15–16 carbon finance, 306 resistance to change by urban planners, 31 characteristics of waste, 297–298, 302 services and economic benefits of green areas, 37 cluster management of waste (figure), 68 shared long-term planning framework for, 55–59 collection at transfer stations, 303 stakeholders in, 54 combustion of solid waste, 299 techno-institutional complexes and, 31 composition of waste, 297–298, 302 Urban planning. See also Spatial planning; specific the composition of waste by the waste producers’ cities income (table), 297 Auckland, New Zealand, case study, 219–224 cost-effective delivery of service, 308 Brisbane, Australia, case study, 215–216 cost recovery mechanisms, 300 Curitiba, Brazil example, 21–23, 169–182 Curitiba, Brazil, case study, 176–177 effects of poor planning, 83–84 developed countries and, 25 foresight workshops, 160–164 Dhaka, Bangladesh’s composting and sale of solid methodology and training for urban planners and waste for fertilizer, 26 managers, 326 disposal sites, 304 tools for, 109 economic and financial aspects, 306–309 traditional urban energy planning, 227 economic benefits of waste reduction, 208–209 urban land pooling and land readjustment (box), environmental and health hazards of poor 84 management, 17 waste management and, 300 environmental benefits of waste reduction, 208 Urban sustainability. See also specific cities financial sustainability and, 306 budget limitations and, 23–24 generation rates of waste, 297 Urbanization. See also specific geographic areas, government programs, 300 countries, and cities greenhouse gas emission and, 306, 308 business-as-usual scenarios and, 17–18 importance of, 295–296 business-enabling environment and, 14 an innovative waste collection approach (box), 303 challenge posed by existing urban ares, 18 the input-output framework of a waste manage- challenge posed by rapid, new urban expansion, 18 ment system (figure), 296 challenges and opportunities, 13–19 inputs and outputs, 295 economic growth and, 14–15 institutional capacity and, 306 fundamental questions to be addressed, 18 institutional context, 300–302 geographical issues, 15 integrated materials and waste management Internet and global telecommunications and, 15 (figure), 72 national policy role in, 14 landfill gas and, 304–305, 306, 308 organizational systems and, 14–15 landfill gas capture and use in Tianjin, China path dependency and, 18 (box), 308 projections for, 13–14 legislative dimension, 299 resource inefficiencies and, 16–17, 24 local and regional planning tools for, 300 trade and foreign investment role, 14 monitoring and measuring programs, 300 Urbanization and Growth, 311 operational structure for, 300–301 options for, 298 overview, 295–298 INDEX | 355 performance metrics (box), 301 Canada: conservation and domestic water policy dimension, 298–299 consumption (box), 260 private sector role, 300–302, 309 car-washing and, 259 product charges and, 306 cascading and looping water in Singapore (figure), quantity considerations, 302 67 recycling, 303 cascading water use (figure), 66 a recycling program involving citizens (box), 303 challenges to management of, 252 regional cooperation and, 300 changes in the annual mean daily precipitation regulatory dimension, 299–300 expected by 2100 (figure), 258 sanitary and energy systems integration in civil society role, 255 Shanghai, China, 78 combined water and energy activities in water sector notes, 295–309 supply management (box), 262 Singapore and, 202 conservation and use efficiency interventions, 259 sludge treatment and disposal, 261, 297 construction works and, 265 sources of solid waste, 296–297 cost of water supply, 264 spatial characteristics, 302 cross-country issues, 252 stakeholder dynamics, 305 cross-sector cogeneration, 265 Stockholm, Sweden’s Hammarby Model, 20–21, 67, distributed system for wastewater treatment 187–192 (figure), 71 storage at households or commercial establish- economic and financial aspects, 264–265 ments, 302 the effect of distribution system configuration on treatment facilities, 304 energy consumption (box), 257 useful life of materials and, 295 Emfuleni, South Africa, project and, 24, 228 user fees, 300, 306 energy efficiency and, 261–262 vehicle collection of, 302–303 an extensive solar water heating program in waste classification and standards for collection, Rizhao, China (box), 241 treatment, and disposal, 299–300 historical background, 251 waste generation rates (table), 297 importance of, 251 waste hierarchy (figure), 298 the input-output framework in the water sector waste reduction, 298 (figure), 252 waste reduction through stakeholder engagement, input-output model, 251 Yokohama (box), 305 institutional context, 254–255 waste system components, 302–304 the institutional setup in the water sector (figure), Yokohama, Japan’s G30 Action Plan for waste 255 reduction, 19, 35, 206–210, 298 integrated approach to cost reduction, 81 Wastewater treatment integrated storm water management (figure), 72 cities with open drains and, 299 integration of energy and water systems and, cost of, 264 69–70 distributed system for wastewater treatment interconnected water systems, 253 (figure), 71 metering, 259 leachate and, 299 need for the integrated management of, 251 location of treatment plants, 260–261 nonconventional water resources, 258–259 process of, 261 nonrevenue water and leak reduction, 259 pumping costs, 244 objectives for interventions, 251 sludge management and, 261 options for management of, 265 water supply and, 244–245 overview, 251–252 Water desalination peak load management, 65 cost of, 258 physical systems technology and spatial arrange- reverse osmosis plants, 258–259 ment, 255–262 Singapore and, 199–200 policy, legislation, and regulations, 252–253 zero disposal plants, 258–259 the policy, legislative, and regulatory framework Water resources affecting the water sector (table), 254 agriculture sector and, 259–260 policy maker role, 254 Alliance to Save Energy’s Watergy program, 64, regulator role, 254–255, 262 244, 248 n12 savings in the supply of water (figure), 264 area at risk if there were a 0.5-meter rise in sea schematic diagram of a water system (figure), 256 level in Asia (figure), 258 sector notes, 251–265 Brisbane, Australia, case study, 213, 216 service provider role, 255 356 | INDEX shadow price of water, 262–263 primer on climate resilient cities, 98 Singapore’s management of, 195–196, 198–201 Transport Strategy, 268 sludge disposal, 261 transportation project requirements, 291 n1 stakeholder dynamics and accountability triangle Urban Rail Workshop, 291 n2 (figure), 264 World Development Report 2009: Reshaping stakeholders and, 262–264 Economic Geography, 311 Stockholm, Sweden’s Hammarby Model and, World Bank Group 20–21, 67, 187–192 Carbon Finance Unit, 104, 335–336, 337 storm water management, 257–258 Carbon Partnership Facility, 335, 337 supply and demand management, 259–260 citywide greenhouse gas emission reduction and undesirable impacts, 251–252 Carbon Finance (box), 337 wastewater reuse, 258 Climate Investment Funds, 333 wastewater treatment, 260–261 composition of, 106 n1 water and wastewater pumping costs, 244 financial tools, 104–105, 329–334 water desalination, 199–200, 258–259 financing and services (table), 332 water heaters and, 259 Global Environment Facility, 105, 333 water sector management systems (table), 253 guarantees (table), 332 water supply systems, 256–257 International Finance Corporation and, 104, water tariffs, 196, 200–201, 262–264 331–332 the Watergy case study in Fortaleza, Brazil (box), market-based instruments, 335–336 263 market-based instruments: Carbon Finance and Water supply systems the Carbon Partnership Facility (table), 336 distribution system spatial configuration, 256 multidonor funds, 333–334 the effect of distribution system configuration on multidonor funds: Climate Investment Funds energy consumption (box), 257 (table), 334 groundwater and water wells, 256 multidonor funds: The Global Environment schematic diagram of a water system (figure), 256 Facility (table), 335 spatial distribution of demand centers, 256 Multilateral Investment Guarantee Agency, 105, storage tanks, 256–257 331 water pumps, 256 sovereign guarantees for credit, 106 n2 water treatment plants, 256 using various climate change funds simultane- West Coast Environmental Law ously or sequentially (box), 337 integration of a trail system and other forms of World Bank Group financing: joint International infrastructure, 70 Finance Corporation-World Bank subnational uses of a pedestrian pathway (figure), 71 finance (table), 331 Whistler, Canada World Bank-International Development Associa- water consumption benchmarks, 130 tion financing, 329–330 Working groups World Bank loans and International Development balanced membership for, 111–114 Association credit: specific investment loans basic rules for, 111 (table), 330 champions and, 113 World Bank loans and International Development collaborative design and decision making and, 53, Association credit: subnational development 54–55, 111–114 policy lending (table), 330 the collaborative model (figure), 112 World Development Report 2009: Reshaping Econom- the collaborative working group (figure), 113 ic Geography, 311 the core team and sector advisers (figure), 114 World Health Organization secretariats and, 113–114 estimates of the number of people in Asia who are Workshops. See Charettes exposed to outdoor air pollution, 17 World Bank Worldwatch Institute estimated cost of ambient air pollution in China’s City of Rizhao, China, case study, 69 urban areas, 17, 228 financial resources for Eco2 Cities Initiative, Y 104–105 Yokohama, Japan funding for the Shanghai Municipal Sewage background and approaches to waste reduction, Company’s plans to construct a large-scale 206–207 incineration plant for sludge drying, 78 case study, 205–210 National Eco2 Fund Program, 47, 48 Climate Change Action Policy, 210, 210 n4 operational guide excerpt, 273 INDEX | 357 CO2 reduction through waste reduction, fiscal relative size of, 205, 210 n1 years 2001/02-2007/08 (table), 209 Resources and Wastes Recycling Bureau, 205, 209 demand-side management and, 62 3Rs program, 205 description, 205 “waste” definition, 210 n2 economic benefits of the efficient use of resources, waste flow in Yokohama, fiscal year 2007/08 209 (figure), 208 economic benefits of waste reduction, 208–209, waste in Yokohama, fiscal years 2001–2007/08 309 (table), 207 environmental benefits of waste reduction, 208 waste reduction in Yokohama, fiscal years G30 Action Plan for waste reduction, 19, 35, 2001/02-2007/08 (figure), 208 206–210, 298 waste reduction target, 207 incinerator closures, 205, 208, 210 n2 waste reduction through stakeholder engagement, lessons learned, 210 Yokohama (box), 305 location of (map), 206 waste separation categories, 206–207 other cities in Japan selected for the Eco2 Cities waterfront (figure), 205 Initiative, 210 n3 population growth, 206 Z the power of stakeholder engagement in Yoko- Zimmerman, Sam hama, fiscal years 2001/2007 (table), 206 transportation issue discussion, 291 n2 private sector and civil society as stakeholders in Zoning issues waste reduction, 205, 209, 210 land use, 325 profile of, 206 mobility of people and goods, 312 public awareness campaigns for waste reduction and separation (figure), 207 358 | INDEX ECO-AUDIT Environmental Benefits Statement The World Bank is committed to preserving endan- Saved: 2 gered forests and natural resources. Eco Cities: Eco- • 16 trees logical Cities as Economic Cities is printed on 60# • 5 million BTUs of total energy Chorus Art, a recycled paper made with 25-percent • 1,489 pounds of net greenhouse gases post-consumer waste. The Office of the Publisher • 7,170 gallons of waste water follows the recommended standards for paper us- • 435 pounds of solid waste age set by the Green Press Initiative, a nonprofit pro- gram supporting publishers in using fiber that is not sourced from endangered forests. For more informa- tion, visit www.greenpressinitiative.org. T he World Bank’s new Eco2 Cities Initiative is strongly grounded in the realities and challenges faced by cities in developing countries. Over the past 30 years, Curitiba’s sustained experiences have taught us that cost and affordability are not major barriers to achieving ecologically and economically sustainable urban development. Curitiba presents a creative and inspiring approach that can be adapted to the circumstances of almost any city. We are proud and honored that the World Bank has chosen to reflect on these lessons. Like many other cities across the world, Curitiba continues to work toward the social, cultural and economic inclusion of new generations of citizens who are in search of employment, education, a healthy living environment and a place they can proudly call their home. Today, as cities in developing countries face the pivotal and urgent challenge of urban sustainability, it is very encouraging to us that the World Bank has strongly and assertively moved forward with the launching of the Eco2 Cities Initiative. In the years to come, we look forward to working with this program. The World Bank now stands out as a committed partner of the city—a partner with the ability and mandate to drive meaningful and lasting change. Beto Richa, Mayor of Curitiba, Brazil U rbanization in developing countries is a defining feature of the 21st century. About 90 percent of global urban growth now takes place in developing countries, and between 2000 and 2030, the entire built-up urban area in developing countries is projected to triple. Global urban expansion poses a fundamental challenge and opportunity for cities, nations and the international development community. It sets forth before us a once-in-a-lifetime opportunity to plan, develop, build and manage cities that are simultaneously more ecologically and economically sustainable. We have a short time horizon within which to affect the trajectory of urbanization in a lasting and powerful way. The decisions we make together today can lock-in systemic benefits for current and future generations. The Eco2 Cities Initiative appears at a critical historic juncture in relation to this challenge and opportunity. From the foreword by Kathy Sierra, Vice President, Sustainable Development, The World Bank, and James W. Adams, Vice President, East Asia and Pacific Region, The World Bank. ISBN 978-0-8213-8046-8 Supported by the Australian Government, AusAID SKU 18046