WORLD BANK GEF 70758 M AINSTREAMING C LIMATE C HANGE M ITIGATION IN C ITIES GLOBAL ENVIRONMENT FACILITY PROGRAM THE WORLD BANK INVESTING IN OUR PLANET WORLD BANK GEF MAINSTREAMING CLIMATE CHANGE MITIGATION IN CITIES GLOBAL ENVIRONMENT FACILITY PROGRAM THE WORLD BANK © 2008 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433 U.S.A. Printed in the United States of America This work was funded by the World Bank Global Environmental Facility Program (WB/GEF), and was led by Steve Gorman and the WB/GEF Climate Change Team and by Kseniya Lvovsky in the World Bank Environment Department. The task team comprised of Sameer Akbar, Chandrasekar Govindarajalu, Grayson Hefner and Anjali Mahindra. The team would like to acknowledge Laura Tlayie, Kulsum Ahmed, Charles Peterson, Richard Beardmore, Amarquaye Armar, Franck Bousquet, Abha Joshi-Ghani, Mats Andersson, Hiroaki Suzuki, Aniruddha Dasgupta, and members of the Air Quality Thematic Group and Energy Ef�ciency Thematic Group for their guidance during the preparation of this study. Special thanks are due to peer reviewers Anthony Bigio and Daniel Hoornweg for their comments on an earlier draft of this report. Clare Fleming and Louise Shaw-Barry assisted in editing the �nal report. Book design: Macmillan Publishing Solutions Cover design by Macmillan Publishing Solutions Cover image: Background cover courtesy of Ellen Tynan Photography; other photographs by Curt Carnemark/World Bank; and courtesy of Flickr.com. 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. 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The �ndings, interpretations, and conclusions expressed in this publication are those of the author and should not be at- tributed to the World Bank, to its af�liated organizations, or to the members of its Board of Executive Directors or the countries they represent. CONTENTS ACKNOWLEDGEMENTS FOREWORD VII ABBREVIATIONS AND ACRONYMS IX EXECUTIVE SUMMARY 1 Objectives 1 Key �ndings 3 Operational considerations 3 Next steps 4 1. INTRODUCTION 7 The strategic context 7 Goals and objectives of the study 8 Methodology 8 2. PORTFOLIO REVIEW PROCESS 9 Time frame 9 Selection criteria 9 Screening methodology 9 3. OPPORTUNITIES FOR CLIMATE CHANGE MITIGATION IN THE URBAN PORTFOLIO 13 Overall �ndings 13 Good practice examples 13 Untapped opportunities for climate change inclusion in projects 15 Potential entry points and linkages to development objectives 15 Urban transport 15 Water supply and sanitation 19 iii Mainstreaming Climate Change Mitigation in Cities Solid waste management (SWM) 21 General urban infrastructure and buildings 23 4. REVIEW OF NON-WORLD BANK GOOD PRACTICE IN URBAN CLIMATE CHANGE MITIGATION 27 Networks for urban climate change mitigation 27 Urban transport 29 Water supply and sanitation 29 Solid waste management 32 General infrastructure and buildings 32 5. CONSULTATIONS WITH URBAN PRACTITIONERS 35 Desirability of mainstreaming climate change mitigation in urban infrastructure projects 35 Climate change mitigation-urban infrastructure linkages 36 Including climate change mitigation in the urban assistance portfolio 36 Practical issues and barriers 38 Analytic work required to scale-up climate change mitigation 39 Gaining entry to project preparation 40 Support needs 40 Financing strategies for climate change mitigation 41 6. CONCLUSIONS 43 Conclusions of the portfolio review 43 Climate change mitigation vs. adaptation 44 Good practice outside the bank 44 Barriers to additional climate change mitigation 45 Next steps 46 7. REFERENCES 47 ANNEX 1: LISTING OF URBAN PROJECTS REVIEWED 48 TABLES 1. Summary of incremental climate change mitigation opportunities by type of urban infrastructure 2 2. Listing of urban-related themes and sectors used to bound the portfolio review 10 3. Distribution of projects selected for review by region and sector board 11 4. Opportunities for incremental climate change mitigation in different subsectors that also contribute to meeting project development objectives (based on the portfolio review) 16 5. Urban transport project components and incremental climate change opportunities 17 iv Contents 6. Linking climate change opportunities to development objectives - urban transport 18 7. Urban WSS project components and incremental climate change opportunities 20 8. Linking climate change opportunities to development objectives - urban WSS 20 9. Urban SWM project components and incremtental climate change opportunities 22 10. Linking climate change opportunities to development objectives - SWM 22 11. General urban infrastructure components and incremental climate change opportunities 24 12. Linking climate change opportunities to development objectives for general urban infrastructure 25 13. International organizations and associations focused on urban climate change action 28 14. Good practice examples of climate change mitigation in urban transport projects 30 15. Good practice examples of climate change mitigation in water supply and sanitation projects 31 16. Good practice examples of climate change mitigation in solid waste management projects 33 17. Good practice examples of climate change mitigation in the power, energy and general urban infrastructure areas 34 FIGURES 1. Selection process for the portfolio review 11 2. Process for dialogue on incremental climate change mitigation in urban projects 37 BOXES 1. Sustainable transport and air quality for Santiago (Chile) 14 2. Yerevan water and wastewater project (Armenia) 14 3. Municipal solid waste management (Tunisia) 23 4. Third Tamil Nadu urban development project (TNUDP III) (India) 25 v FOREWORD It is estimated that urban areas currently con- the opportunities available for climate tribute to about 75 percent of greenhouse gas change mitigation in World Bank urban sec- emissions through energy use, waste man- tor projects and represents the �rst system- agement and land use changes. As urbaniza- atic effort in this area. tion increases around the globe, with the ur- ban population expected to more than The report has already been well received by double over the next 25 years from the current colleagues within the Bank and is consid- 3.2 billion urban dwellers, this problem is ered a signi�cant contribution to the Bank’s likely to become increasingly exacerbated. Cities and Climate Change work program. With a growing carbon market and increas- However, this also raises the possibility of ing donor �nancing for climate change, we opportunities for urban solutions. Cities of- now have an enhanced ability to internalize fer enormous opportunities for climate climate change mitigation interventions in change mitigation that are starting to be no- operations and can hopefully bring greater ticed and captured. This study focuses on bene�ts to our client countries. vii ABBREVIATIONS AND ACRONYMS AFR Africa Region APL Adaptable Program Loan ARI Air Conditioning and Refrigeration Institute BRT Bus Rapid Transit CAS Country Assistance Strategy CC Climate Change CDM Clean Development Mechanism CFL Compact Fluorescent Lamps CHP Combined Heat and Power CNG Compressed natural gas DSM Demand-Side Management EAP East Asia and Paci�c Region ECA Europe and Central Asia GEF Global Environmental Facility GHG Green House Gases GIS Geographic Information System IBRD International Bank for Reconstruction and Development ICLEI International Council for Local Environmental Initiatives ICR Implementation Completion Report IDA International Development Association IEA International Energy Agency ITS Intelligent Transportation Systems LCR Latin America and Caribbean Region LSG Local Self-Government ix Mainstreaming Climate Change Mitigation in Cities MNA Middle East and North Africa Region M&V Measurement and Veri�cation MUNEE Municipal Network for Energy Ef�ciency NGO Nongovernmental organization NMT Non-Motorized Transport PCN Project Concept Note PAD Project Appraisal Documentation PDO Project Development Objectives PREM Poverty Reduction and Economic Management Network PRSP Poverty Reduction Strategy Paper PSAC Program Development Policy Credit PSAL Private Sector Adjustment Loan PSD Private Sector Development SAR South Asia Region SDN Sustainable Development Network SIDA Swedish International Development Corporation SIL Speci�c Investment Loans SWAp Sector-Wide Approaches SWM Solid Waste Management SWOT Strengths, weaknesses, opportunities, and threats TDM Transportation Demand Management UFW Unaccounted for Water ULB Urban Local Body UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development WSS Water Supply and Sanitation x EXECUTIVE SUMMARY Objectives practice for climate change mitigation in Today, half of the world’s population lives urban infrastructure; and develop an under- in cities, accounting for three-quarters of standing of operational considerations to global energy use and greenhouse gas emis- help integrate climate change mitigation in sions. In the coming years, as urbanization urban projects. increases, mitigating climate change will become an increasingly important part of The study comprised three parts: the urban assistance portfolio. Recognizing this trend, the World Bank’s Global Environ- • a review of the Bank’s 1995–2005 urban ment Facility (GEF) Climate Change Program portfolio to document opportunities for undertook a desk study to identify opportu- climate change mitigation; nities for scaling-up the contribution of • a review of good practice outside the global environmental �nancing to the World Bank for climate change mitigation tar- Bank’s urban portfolio.1 geted at urban infrastructure; and • consultations with urban sector practitio- Speci�c objectives of the study were to: de- ners regarding practical aspects of in- termine the extent to which climate change corporating climate change mitigation mitigation opportunities have been inte- components into urban infrastructure grated into urban assistance projects; iden- projects. tify climate change mitigation mainstream- ing opportunities for future projects; identify entry points for mainstreaming climate 1 This report refers to cities, municipalities, and the change mitigation in urban projects; high- urban portfolio interchangeably. Urban is de�ned as relating to the built-up areas of the world, includ- light examples of non-World Bank good ing cities, municipalities, and peri-urban regions. 1 Table 1: Summary of Incremental Climate Change (CC) Mitigation Opportunities by Type of Urban Infrastructure General Urban Infrastructure, Urban Transport Urban Water Supply & Sanitation Urban Solid Waste Management including Buildings Typical Components: Typical Components: Typical Components: Typical Components: • Highway Construction • Water supply, storage and treatment • Establishing & managing sanitary • Steam or hot water production and • Urban Bus Fleets facilities land�lls distribution facilities • Improved Pedestrian • Secondary and tertiary distribution • Establishing and operating municipal • Capacity building of district heating Access networks waste collection schemes providers and heat sector reform • Signage, Crossings, traf�c • Capacity building for WS&S operators • Local recycling schemes • Heat metering and demand safety • Institutional reform • Capacity building of municipal solid management equipment • Mass Transit Systems • Loss reduction waste operators • Retro�tting of public buildings • Modal Integration • Sewage collection, treatment and • Encouraging proper waste disposal for energy ef�ciency outfall facilities practices • Replacement of boilers and other • Water supply and sewerage • Regulating uncontrolled & informal equipment. connections disposal operation • Water pressure and quality monitoring Mainstreaming Climate Change Mitigation in Cities systems 2 Incremental CC Mitigation Incremental CC Mitigation Incremental CC Mitigation Incremental CC Mitigation Opportunities: Opportunities: Opportunities: Opportunities: • Improved Urban Planning • Energy ef�ciency in water & waste- • Collection & utilization of land�ll gas • Weatherization of buildings • Bus Rapid Transit water pumping • Energy-ef�cient solid waste collection • Use of biofuels based on local • Land Use Planning • Managing GHG emissions from • Waste stream separation & materials feedstock • Vehicle Emissions secondary & tertiary treatment recovery • Additional lighting & appliance Inspections • Sludge disposal techniques • Local, city-wide, regional recycling ef�ciency initiatives • Street Lighting • Reducing water supply variability & schemes • Selective use of renewable energy • Vehicle fleet renewal with losses from Climate Change • Composting as economical high-ef�ciency clean • Integrated energy-water management • Use of sustainable building vehicles materials and products • Traf�c Demand Manage- • Government procurement of ment (e.g., rotating energy-ef�cient goods & services odd-even access) • Fiscal & tax regimes, including congestion charges & engine capacity taxes • Non-Motorized transport (dedicated bike & pedestrian pathways) Executive summary Key �ndings change mitigation opportunities, including The degree to which climate change mitiga- investment in improved thermal perfor- tion has been embraced in urban infrastruc- mance of buildings, rehabilitation of district ture assistance varies considerably. heating schemes, and reform and improved management of heat utilities. Projects in solid waste management have made the most rapid progress in main- Increasingly, the overlap between adapta- streaming climate change mitigation oppor- tion measures and mitigation measures in tunities, most recently through composting the urban context will �gure into future and recycling. The urban transport sector project design. For example, improving the has also made noteworthy progress, particu- energy ef�ciency of building construction larly by incorporating regulatory and �scal (with improved insulation, reflective glass, measures to reduce vehicular congestion or ef�cient air conditioning) will mitigate and investment in clean and ef�cient trans- climate change by reducing GHG emissions port infrastructure. Bus Rapid Transit (BRT) while also rendering the urban infrastruc- and investment in infrastructure for non- ture more adaptable to warmer weather motorized transport (bicycles and pedestrian) conditions. are two examples of greenhouse gas (GHG) emissions-reducing components included Consultations with urban practitioners re- in recent urban transport projects. vealed operational considerations for cap- turing additional climate change mitigation Water supply and sanitation and general ur- opportunities in future urban assistance ban infrastructure including buildings2 seem projects. A key consideration is engagement to have the most unrealized climate change with urban infrastructure specialists and mitigation potential; however, the review country counterparts early in the project found considerable regional variation. Some preparation process. In engaging with client regions emphasized energy ef�ciency and countries it is vital to demonstrate that cli- integrated water-energy conservation strate- mate change mitigation can generate local gies embedded within the assistance pro- co-bene�ts, and can contribute to general gram, while other regions did not. Projects sector objectives and speci�c project devel- in regions with substantial heating loads opment objectives. served by imported fuels (ECA and EAP) Operational considerations were more likely to incorporate climate Many urban practitioners are unfamiliar 2 This broad category includes social housing, mu- with the modalities of climate change miti- nicipal infrastructure such as hospitals and schools, and power and energy. gation in the urban sector; therefore, a 3 Mainstreaming Climate Change Mitigation in Cities program of cross-support between the ur- step. Practitioners also recommended that ban and environment networks would add the Environment Anchor formally engage value. In addition to familiarizing urban the Urban Sector board in context and sug- infrastructure practitioners with emerging gesting new initiatives (e.g., additional climate change mitigation technologies resources and operational guidelines) to and applications, a cross-support program make it happen. would help codify the linkages between climate change mitigation and urban sec- Engagement at the Sector Board, Unit Direc- tor objectives. Typical linkages found in tor, and practitioner level must be followed the review include: (i) high and increasing by designating resources necessary to identify cost of oil (for non-oil producing coun- entry points for mainstreaming climate tries), making oil dependency and urban change mitigation in the regional and country- infrastructure energy ef�ciency national speci�c urban context. Finding workable cli- concerns; (ii) local pollution abatement mate change mitigation opportunities that and congestion concerns, which if ad- deliver local as well as global bene�ts will dressed by Non-Motorized Transport require accelerated knowledge management (NMT) or Transportation Demand Manage- efforts (e.g., a handbook on climate change ment (TDM), can yield global bene�ts as mitigation measures and their local and glob- well; (iii) increased investment in infra- al bene�ts); sector work (to match climate structure made possible by mobilizing change mitigation modalities with urban GEF, UNFCCC, and CDM �nancing; and sector priorities such as municipal �nance, (iv) improved access to urban services decentralization, land issues, housing and such as affordable and reliable water sup- slum upgrades, cultural heritage, etc.); pilot- ply and waste collection, and improved ing efforts to demonstrate climate change- quality of human services made possible urban infrastructure linkages in speci�c proj- by rehabilitated urban infrastructure, such ects; and analytic development (to create as adequately space-conditioned schools benchmarks/indicators that cities can use to and hospitals. identify opportunities and identify “good practice gaps� in urban infrastructure). Next steps A clear view of next steps emerged from the Speci�c follow-up activities suggested by portfolio review process and consultations urban practitioners and peer reviewers with urban practitioners. Practitioners include: stressed the importance of engagement at the Sector Board level and at the regional • Preparation of guidance notes focused Sector Manager level as an essential �rst on capturing climate change mitigation 4 Executive summary opportunities in relatively under-served • Undertake analytical work needed to urban sub-sectors, notably water supply create climate change-related perfor- and sanitation and general infrastructure mance indicators that are relevant to city including buildings. managers and allow for monitoring the • Undertake a similar portfolio review fo- effect of climate change mitigation mea- cused on climate change adaptation op- sures over time. portunities in the urban context. • Undertake analytical work in order to • Collaborate with interested urban practi- develop a co-bene�ts framework, which tioners to pilot the key �ndings and helps link climate change mitigation in- guidelines in an operational setting. terventions to local bene�ts/priorities. 5 1 INTRODUCTION The strategic context Over the past decade, the World Bank has Reducing energy use and greenhouse gas continually looked for ways to better inte- (GHG) emissions in cities is fundamental to grate climate change considerations into its any comprehensive effort to slow the pace assistance and lending portfolios. Previous of global warming. Today, half of the world’s sector strategies articulating such an inte- population lives in cities, accounting for grated approach include the 1999 Energy three-quarters of global energy use and and Environment Strategy [2], 2001 Envi- greenhouse gas (GHG) emissions [1], and ronment Strategy [3], 2002 Urban Transport the trend toward urbanization is projected Strategy [4], and Infrastructure Strategy [5]. to continue over the next �fty years. In addition, the Bank’s Energy, Transport and Water Department tracks on an annual ba- In the urban sector, an ideal climate change sis the amount of assistance and lending in mitigation intervention should yield global support of energy ef�ciency, renewable en- bene�ts, especially GHG emissions reduc- ergy, and other GHG emission reducing tions, at the same time that it contributes to technologies [6]. sector and project development objectives. Examples include use of improved building Nevertheless, with urban lending and assis- materials and building envelope energy tance projects spread across a variety of ef�ciency; improved energy ef�ciency in operational sectors, the Bank has not yet urban utilities, improved transport ef�ciency, developed a systematic approach to inte- sequestration and utilization of methane gas grating climate change mitigation in its ur- from land�lls and waste water treatment, ban infrastructure projects. The recent inte- and cleaner primary energy supply and gration of relevant sectors in the Sustainable utilization. Development Network (SDN) offers a real 7 Mainstreaming Climate Change Mitigation in Cities opportunity to rethink how urban projects • Identifying speci�c entry points (project de�ned broadly might better internalize cli- development objectives, sector objec- mate change mitigation. The Bank is also tives, macroeconomic linkages) for main- currently working on a Strategic Framework streaming climate change mitigation for Climate Change (SFCC) that will include within urban projects; a plan for scaling-up clean energy interven- • Highlighting examples of non-World tions through a set of new climate invest- Bank good practice for climate change ment funds. mitigation in urban infrastructure; • Developing an understanding of opera- Goals and objectives of the study tional considerations to enhance integra- The goal of this study was to review the po- tion of climate change mitigation in ur- tential for mainstreaming climate change ban project preparation. mitigation opportunities in urban infrastruc- ture projects and to suggest directions for Methodology increased integration of climate change The study comprises three parts, each of within the urban sector. which is reported in separate sections of this report: (i) a review of the Bank’s urban port- Speci�c objectives of the study included: folio from 1995–2005, document opportu- nities for climate change mitigation; (ii) a • Determining the extent to which climate review of good practice outside the Bank for change mitigation opportunities have climate change mitigation targeted to urban been integrated into recently completed infrastructure; and (iii) consultations with and ongoing urban assistance projects; urban sector practitioners regarding practi- • Identifying climate change mitigation cal aspects of incorporating climate change mainstreaming opportunities that could mitigation components within urban infra- be supported in future projects; structure projects. 8 2 PORTFOLIO REVIEW PROCESS Time frame The portfolio review excluded all projects To understand how climate change mitiga- having climate change as a principal theme, tion opportunities have been included in including GEF projects and projects funded mainstreaming urban projects historically by carbon �nance mechanisms and the and under current practice, the review in- Montreal and the Ozone Depleting Sub- cluded projects approved by the World Bank stance Protocols. This allowed a focus on Board from FY 1995 through FY 2006. opportunities for incremental inclusion of climate change mitigation components in Selection criteria mainstream urban projects. Hundreds of World Bank projects have provided assistance and lending in the ur- Screening methodology ban setting, but the portfolio review fo- Over 277 projects were implemented by cused only on projects prepared by the the Urban Development, Environment, �ve Sector Boards with a strong urban Energy and Mining, Transport, and Water focus (Environment, Urban Development, and Sanitation Sector Boards between Energy and Mining, Transport, and Water FY95 and FY06. For the portfolio review, and Sanitation), and on projects contain- after removing projects which contained ing any of 31 sector codes or 18 thematic GEF or other climate change components codes determined to have an urban focus or which did not involve direct assistance (See Table 2). to cities and municipalities, 171 projects 9 Mainstreaming Climate Change Mitigation in Cities Table 2: Listing of Urban-Related Themes and Sectors Used to Bound the Portfolio Review Urban-Related Themes Urban-Related Sectors Public Human Urban Administration, Industry and Development Development Law, and Justice Education Trade 63 Child Health 71 Urban BC Central gov’t EP Primary YC Housing 65 Education svcs/housing administration education construction 67 Health system 72 Municipal �nance BH Sub-national ES Secondary YW Other industry performance 73 Municipal government education YZ General governance and administration ET Tertiary 70 Other human development institutions BZ General education 89 Non-comm. 74 Other urban EV Vocational Diseases/injury training EZ General Financial and Environment and Water, Private Sector Natural Resources Energy and Sanitation, and Development Management Mining Transportation Flood Protection 39 Infrastructure 81 Climate LA District heating TV Aviation WD Flood services for PSD 82 Environ. policies and energy TP Ports, protection 41 Small and ef�ciency services waterways and WA Sanitation 83 Land management medium enterprise LC Oil and gas shipping WS Sewerage 84 Pollution mgmt support LD Power TW Railways 86 Other WB Solid waste LE Renewable TA Roads and management energy highways WC Water supply LZ General TZ General WZ General transportation Social Development, Public Sector Gender, and Information and Health and Other Governance Inclusion Communications Finance Social Services 26 Decentralization 62 Other Social CZ General FC Housing JA Health Development information and �nance and real JB Social Svcs communications estate markets were left for closer consideration (See Fig- From these 95 projects which met the port- ure 1). Of this remainder, 95 projects were folio review criteria and reasonably covered identi�ed which represented the review’s all regions and all sectors, a �nal sample of target population: city-focused infrastruc- 40 projects (21 active and 19 closed) was ture projects of all types across all regions, selected (See Table 3). A listing of the but lacking an explicit climate change mit- 40 projects is provided in Annex 1. igation component. 10 Portfolio review process Figure 1 Selection Process for the Portfolio Review Condition 1: Selection of 31 sector codes and 18 theme codes relevant to urban projects (see Table 2) Search for projects combining conditions 1 and 2, and approved between 1995 and 2006 in the Condition 2: Selection of 5 Business Warehouse database relevant Sector Boards: UD, TR, EMT, WS, and ENV 277 projects Exclusion of projects with GEF and carbon finance funding, and with primary component targeting Title and theme review climate change* 171 projects Exclusion of national-level (non-urban) projects and those with limited potential for Abstract-level review incremental CC mitigation 95 projects Sample of closed and active projects representing all sectors and regions, possible to review in Quick PAD-level review the time available 40 projects Projects reviewed in detail for opportunities to mainstream climate change mitigation Detailed review activities in WB urban projects of PADs and ICRs * This allowed a focus on foregone opportunities and the incremental potential for CC mitigation components in urban projects Table 3: Distribution of Projects Selected for Review by Region and Sector Board Project Category Region AFR EAP ECA LCR MNA SAR Urban transport 1 2 1 3 0 1 Water Supply and Sewerage 1 4 2 1 1 1 Solid Waste Management 0 3 2 0 1 0 General Urban Infrastructure, including Power, Energy, District heat and Buildings 2 3 8 0 2 1 11 3 OPPORTUNITIES FOR CLIMATE CHANGE MITIGATION IN THE URBAN PORTFOLIO Overall �ndings ments while putting in place the increased The portfolio review focused on four subsec- capacity to plan additional longer-term tors of urban operations: water supply and improvements. sewerage; urban transport; solid waste man- agement; and general urban infrastructure Similarly, there are also Water Supply and (power, energy and buildings). Within these Sanitation (WSS) projects that demonstrate subsectors, the study explored three areas: a comprehensive and nearly complete in- current good practice project examples corporation of climate change mitigation already in the portfolio; untapped opportu- opportunities. Box 2 describes the Yerevan nities for climate change inclusion in proj- Water and Wastewater Project in Armenia, ects; and potential entry points and linkages which combines a range of energy ef�ciency to sector or project development objectives. improvements within an infrastructure reha- These three areas are detailed below. bilitation project to yield improved reliability and affordability for customers Good practice examples and �nancial stability for operators. It was determined that a number of proj- ects in the Bank portfolio sample set could In addition to the above, the study also iden- serve as good practice examples of com- ti�ed other good practice examples (see prehensive inclusion of climate change Box 3 (p. 23) on Tunisia Solid Waste Man- mitigation opportunities. The Santiago Sus- agement Project and Box 4 (p. 25) on the tainable Transport and Air Quality Project Tamil Nadu Urban Development Fund) of (See Box 1) illustrates balanced attention projects that could serve as reference points to short-term transport systems improve- for teams designing new operations. 13 Mainstreaming Climate Change Mitigation in Cities Box 1 Sustainable Transport and Air Quality for Santiago (Chile) This project will help reduce greenhouse gases (GHG) from ground transport in Santiago by promoting shifts to more ef�cient and less polluting forms of transport, and by adopting sustainable, low-GHG trans- port measures. Components include; (i) promotion of bicycle use in peri-urban communities; (ii) evaluat- ing clean technologies (hybrid diesel-electric, diesel, and CNG) for buses and improving the routing and public image of bus services; (iii) improved planning and institutional coordination within the sector; and (iv) detailed study of long-term options for improving public transport and reducing congestion, including integrating land-use and transport policies, engineering and regulatory studies for traf�c calming measures in the city center; assessment of Congestion Pricing in Santiago; traf�c optimization studies, and design of programs to package carbon emission reductions for Carbon Trading. The project is in line with the CAS, as it will: (i) enhance economic growth and social progress by making the city more appealing and favoring a larger effective labor market; (ii) heighten the inclusion of vulnerable groups, by providing improved urban mobility at affordable prices and reasonable travel times; (iii) improve urban environmental conditions which primarily affect the poor; (iv) promote public private partnerships through a renovated concession mechanism for private operators to provide public transport services; and (v) build capacity within key public agencies. Key outcomes include stabilizing the modal share of public transport, reducing carbon intensity of average urban trips, introducing land-use policies that favor reduction in average trip length, removing barriers to clean transport technologies, increasing bicycle and pedestrian modal shares, and improving urban air quality. Source: World Bank Documents Box 2 Yerevan Water and Wastewater Project (Armenia) Yerevan is the capital city of the Republic of Armenia. This $20 million IDA-�nanced project will continue improvements in Yerevan’s water and wastewater services focused on reducing environmental pollution, providing continuous water supply at affordable cost, transitioning to private operation and management of the service provider, and establishing conditions for �nancial stability of water and wastewater utilities. The project supports the CAS goals of: (i) reducing non-income poverty by ensuring access to basic urban infrastructure; and (ii) removing the �nancial constraints to infrastructure investment and service improvement. Lending will create the Yerevan Water and Wastewater Fund, which will invest in energy ef�ciency measures to make water and wastewater services more affordable, such as diverting water production from pumped to gravity water resources, reducing unaccounted for water through distribution system improved monitoring and rehabilitation, and phasing out old, inef�cient pumping plants. System reliability and control, enabling safe, continuous water supply by rehabilitating storage ca- pacity in water distribution pressure zones; realigning transmission mains in areas prone to landslides; improving distribution system water flow transferability to enable supply from different water sources. Environmental pollution is addressed with a wastewater component which rehabilitee wastewater col- lectors overflow chambers, and pumping stations to reduce uncontrolled discharges into water courses. Source: World Bank Documents 14 Opportunities for climate change mitigation in the urban portfolio Untapped opportunities for climate development objectives (See Table 4). Ex- change inclusion in projects amples of linkages to development objec- Signi�cant unrealized opportunities for cli- tives or macroeconomic pillars include: mate change mitigation were found of the projects reviewed. The incremental climate • When energy ef�ciency or water loss re- change mitigation potential varied across duction measures reduces delivery costs types of urban infrastructure and according of essential urban services, making them to the nature of the assistance, the project more affordable and accessible to the development objectives, and macroeco- urban poor;3 nomic considerations of each client coun- • When local recycling or solid waste try. The broadest spectrum of unrealized stream separation generates local income climate change mitigation opportunities and jobs;4 was found in two sectors: Water Supply and • When additional arrangements for non- Sanitation and General Urban Infrastruc- motorized transport (bicycle or pedestri- ture, including Power, Energy, District Heat an) reduces congestion and air pollution & Buildings. In terms of absolute magnitude, from short-duration trips;5 however, the greatest potential may be in • When improved thermal performance of the Urban Transport sector (because of the buildings reduces expenditure on heat- growing scale of vehicular GHG emissions) ing and cooling public buildings and cre- and Solid Waste Management (including ates an indoor environment where essen- recycling and composting in addition to tial health and education services can be land�ll gas recovery and utilization). more effectively delivered.6 Potential entry points and linkages to The review’s �ndings by subsector are de- development objectives tailed in the following section. An entry point exists whenever integration of climate change mitigation can be shown Subsector Review to contribute to the broader development or Urban transport macroeconomic issues or objectives of the Urban transport projects cover a wide range client country. The portfolio review identi- of investment and assistance supporting �ed potential entry points and linkages to an even broader range of urban transport sector or project development objectives 3 Project Appraisal Document on a proposed loan to that would help mainstream inclusion of Ukraine for a Lviv Water and Wastewater Project 4 climate change mitigation. The review found Project Appraisal Document on West Bank and Gaza Solid Waste and Environmental Management Project numerous instances where incremental 5 Project Appraisal Document on China Guangzhou City Center Transport Project climate change mitigation opportunities 6 Project Appraisal Document on Belarus Social Infra- could contribute to meeting the project structure Retro�tting Project 15 Mainstreaming Climate Change Mitigation in Cities Table 4: Opportunities for Incremental Climate Change Mitigation in Different Subsectors that also Contribute to Meeting Project Development Objectives (Based on the Portfolio Review) Subsectors General Urban Water Infrastructure (incl. Development Urban Supply & Solid Waste Power, Energy & Objectives Transport Sewerage Management Buildings) Access to Urban Services ✓ ✓ ✓ ✓ Conserving Finite Resources & Improving Resource Management ✓ ✓ Financially Sustainable Urban Services ✓ ✓ ✓ ✓ Improving Service Quality & Affordability ✓ ✓ ✓ ✓ Livelihood Improvement & Poverty Reduction ✓ ✓ Mitigating Environmental Damage ✓ ✓ ✓ ✓ De-centralizing services provision & building local capacity ✓ ✓ Sustainable Urban Development ✓ ✓ ✓ ✓ infrastructure, from pedestrian access to pub- transport conditions and indicators (e.g., ac- lic transport services and mixed-mode urban cess to public transport, road congestion, trip transport systems including road and rail. length and duration, local air pollution) im- The World Bank’s Urban Transport Sector plicitly reduces both local air pollution and Board provides a network for understanding global climate change. complex, multi-modal urban transport link- ages and issues and addressing country- and Eight urban transport projects were included city-speci�c situations, within an overall in the portfolio review, including three closed program of advisory and lending assistance. and �ve active projects spread across all re- Urban transport project components typi- gions except the Middle East and North Africa cally include lending in support of improved (MNA). Typical components included High- public transportation services, promotion of way Construction; Urban Bus Fleets; Im- vehicle fleets meeting local emissions stan- proved Pedestrian Access; Improved Signage, dards or operating on clean fuels, support for Crossings, Traf�c Safety; Mass Transit Systems; non-motorized transport, and capacity build- and Modal Integration (See Table 5). ing to plan for and manage increasing mo- torization and road congestion. Lending and As expected, all of the eight projects were other assistance which improves urban already focused on improving public 16 Opportunities for climate change mitigation in the urban portfolio Table 5: Urban Transport Project Components and Incremental Climate Change Opportunities Urban Transport Typical Components Incremental CC Mitigation Opportunities Highway Construction Integrated Transportation and Land Use Planning Urban Bus Fleets Bus Rapid Transit and better integration of buses with other transport modes; Vehicle Emissions Inspections Improved Pedestrian Access, Signage, Streetlighting Crossings, Traf�c Safety Mass Transit Systems Vehicle fleet renewal with high-ef�ciency clean vehicles Modal Integration Transportation Demand Management Fiscal & tax regimes, including parking charges, congestion charges & progressive taxes on engine size Non-Motorized transport (dedicated bike & pedestrian paths) integrated with motorized modes Use of Intelligent Transportation Systems (ITS) where possible to increase transportation ef�ciency transport services, especially for the poor, • support for vehicles operating on alterna- increasing the modal share of non-motorized tive fuels; transport, and reducing traf�c congestion • setting and enforcing stricter emissions and travel times, all of which provide both standards for motor vehicles, including local and global environmental bene�ts. vehicle inspection and maintenance programs; Nevertheless, the portfolio review identi�ed • promotion of non-motorized transport seven opportunities for climate change miti- (bicycles and walking) through dedicated gation which were not included in the proj- infrastructure (bike paths and walkways) ects reviewed. These are: and more-effective modal integration with public transport; • improved air quality and reduced fuel • improved amenities, decreased travel use through renewing public and private time, and higher per-passenger fuel ef�- vehicle fleets (e.g., buses and jeepneys);7 ciency via dedicated, high-quality public transport schemes (Bus Rapid Transit); 7 A recent review of World Bank urban transport • regulatory and �scal transportation projects mentions that improved operation of diesel demand-management policies, such as buses in Rio de Janeiro resulted in an annual saving of 40 million liters of fuel (a 12.5% reduction), avert- parking charges reflecting true land prices ing 107,800 tons of CO2 emissions per year. See especially in congested areas, excise Promoting Global Environmental Priorities in the Urban Transport Sector, World Bank Group, 2006. or import taxation according to engine 17 Mainstreaming Climate Change Mitigation in Cities Table 6: Linking Climate Change Opportunities to Development Objectives - Urban Transport Incremental Sector or Climate Included Climate Project Change Climate Change Change Development Mitigation– Project Name Country Opportunities Opportunities Objectives PDO Linkage Urban Mobility Senegal Integrating Procure mini- Safe, environmen- High-ef�ciency Improvement transport modes buses with higher tally sustainable minibuses Project that make public fuel economy & and �nancially cheaper and transport more lower emissions viable urban cleaner to attractive and transport sector operate pedestrians safer Buenos Aires Argentina Improved Consider other Reform and Regulatory Urban Transport pedestrian transport rehabilite the measures & TDM Project corridors, ef�ciency urban transport will decrease the bikepaths, traf�c improvement infrastructure in number of management, bus modalities, such order to reduce vehicles and jeepney rapid as traf�c demand congestion, accessing the access, capacity management and increase traf�c urban center building for urban other regulatory safety, and reduce transport planning measures air pollution São Paulo Brazil New METRO line Energy ef�cient Improve the Alternative fuel Metro Line 4 reduces conges- construction/ accessibility of buses cheaper to Project tion and improves operations of rail/ the low-income operate & have transport ef�ciency bus terminals; population to better energy Pilot low-emission affordable and security relative or alternative-fuel quality transport, to imported oil buses within while maintaining feeder bus the �nancial network sustainability of the urban transport sector size, and usage or access fees for roads It is important to ensure that applied climate or downtown areas; and change mitigation opportunities also make • application of Intelligent Transportation a material contribution to the project’s core Systems (ITS) to achieve greater ef�ciency development objectives. Table 6 provides in transportation, especially in alleviating examples from three of the projects reviewed 8 congestion. which illustrate how selected climate change mitigation opportunities contribute to main- stream project or sector objectives. 8 Intelligent Transportation Systems (ITS) combine computer modeling, centralized control, and ad- The review suggests that mainstreaming in- vanced surveillance systems to dynamically detect cremental climate change opportunities in and alleviate traf�c bottlenecks through re-routing and active control of traf�c signs and signals. urban transport projects is straightforward, 18 Opportunities for climate change mitigation in the urban portfolio because transport-related issues such as • Extending WSS services to the urban congestion, air quality, urban quality of life, poor; and safety are urban sector priorities and • Improving operator performance; rank high in both the Bank’s Country Assis- • Increasing rural access to sustainable tance Strategy (CAS) and the country’s WSS; and Poverty Reduction Strategy (PRSP). In the • Better managing the water resource Buenos Aires Urban Transport Project, for base. example, improved energy ef�ciency in subway construction and increased capa- Urban WSS projects typically focus on im- city in the Urban Transport Planning Agency proving infrastructure for and delivery of are positive contributions to the project’s de- potable water, storm drainage, and sanita- velopment objectives. A project in Senegal, tion, and providing a broad range of assis- demonstrated that replacing the public tran- tance to public and private WSS operators. sit vehicle fleet would contribute to a safer Typical components of a WSS project (See and more environmentally sustainable ur- Table 7) include water supply, storage, treat- ban transport sector, while going further to ment and distribution networks; capacity procure energy ef�cient and low-emissions building and institutional reform; sewage feeder buses could improve the accessibi- and storm water collection, treatment and lity of the poor to affordable and quality disposal facilities; and water supply and transport. sewerage connections and kiosks. Many WSS projects incorporate climate change Water supply and sanitation mitigation through components to enhance Improving water supply and sanitation the ef�ciency of water supply, by installing (WSS) is a key element of the World Bank’s new or rehabilitated pumping equipment commitment to reducing poverty and attain- and reducing unaccounted-for (lost and ing the Millennium Development Goals. stolen) water. With a project portfolio of almost $7 billion, the World Bank is the largest external �nan- Ten urban WSS projects were reviewed, in- cier of WSS projects and is a recognized cluding �ve closed and �ve active projects leader in terms of sector knowledge and representing all six regions. Incremental analytics and development of comprehen- climate change mitigation opportunities are sive strategy and policy for the sector. The shown in Table 7 and linkages with devel- World Bank’s WSS practitioners work closely opment objectives for several active proj- with national and local governments, as ects are shown in Table 8. As with the urban well as civil society and local entrepreneurs, transport sector, it was possible to identify using a comprehensive approach focused several strong linkages between additional in four areas: climate change mitigation and sector and 19 Mainstreaming Climate Change Mitigation in Cities Table 7: Urban WSS Project Components and Incremental Climate Change Opportunities Urban Infrastructure - Water Supply & Sanitation Typical Components Incremental CC Mitigation Opportunities Water supply, storage and treatment facilities Energy ef�ciency in water & wastewater pumping Secondary and tertiary distribution networks Managing GHG emissions from sewage treatment Capacity building for WSS operators Reducing water supply variability & losses Institutional reform Integrated energy-water management Loss reduction Sewage collection, treatment and outfall facilities Water supply and sewerage connections Water pressure and quality monitoring systems. Table 8: Linking Climate Change Opportunities to Development Objectives - Urban WSS Incremental Sector or Included Climate Project Project Climate Change Change Development CC Mitigation PDO Name Country Opportunities Opportunities Objectives Linkage OSE Uruguay Unaccounted for Integrated Lagging Savings from integrated Modernization Water Reduction water-energy competitiveness management plus Program management; in public carbon revenue flow GHG capture in utilities; Reform will improve water utility sewage sludge of public competitiveness & treatment and enterprises accelerate privatization disposal Lviv Water & Ukraine Rehabilitation of GHG capture Financial Lagoon gas capture Wastewater pumping stations, from sludge sustainability of will create a carbon Project reduction of treatment local gov’t revenues stream to leakage through offset the cost to pipeline municipalities of replacement providing these services Ahwaz & Iran Rehabilitation and Additional Enhance quality Service delivery cost Shiraz Water improvement of energy of life for the savings from EE ϩ Supply and water supply and ef�ciency and urban poor carbon revenue Sanitation sewarage GHG mitigation streams will keep WSS Project infrastructure measures services affordable project objectives. For example, in the tegrated water-energy management will 9 Uruguay OSE Modernization Project, in- contribute directly to the reform process for cremental electricity cost savings from in- water supply and wastewater services pro- viders. The Ukraine/Lviv Water/Wastewater 9 Obras Sanitarias del Estado (OSE) is a state-owned Treatment Project already largely incorpo- water utility established to supply water and sanitation rates the climate change mitigation oppor- for the entire country, except for Montevideo, where sewerage is provided by the City of Montevideo. tunities shown in Table 8. Similar projects in 20 Opportunities for climate change mitigation in the urban portfolio the future could incorporate additional Pillars of the Bank’s SWM portfolio include GHG emission reductions from sewage supporting comprehensive and strategic treatment and disposal, including methane planning by local governments; helping cit- gas capture and use, thereby contributing to ies rationalize operator performance while more �nancially sustainable provision of expanding services to growing urban popu- urban wastewater services. lations; supporting community participation in planning, siting, and operations; encour- Most of the reviewed projects included aging private sector involvement; and mobi- components to enhance the ef�ciency of lizing new funds (such as the Prototype Car- the water and wastewater sector, through bon Fund and the Climate Investment Fund) the installation of new or rehabilitated for GHG emissions reduction. pumping equipment and reduction of water losses due to leakages in the delivery sys- SWM components typically focus on col- tem. While these measures are speci�ed on lection, treatment and disposal of solid the water supply and distribution side, there wastes, mainly municipal refuse, and ca- is little corresponding attention to improv- pacity building of both local governments ing ef�ciency in wastewater treatment and (for planning) and operators (for improved sewage pumping and the management of management). Incremental climate change GHG emissions from treatment lagoons or mitigation opportunities beyond the nearly- sludge treatment and disposal. Also note- mainstreamed land�ll gas capture include worthy within the WSS sector are incremen- incremental recycling opportunities (See tal opportunities for climate change adapta- Table 9), plus improvements in the energy tion, especially addressing variable water ef�ciency of collection (e.g., fuel-ef�cient supply due to reduce seasonal run-off, aqui- vehicles) and comprehensive (city-wide) fer depletion, or increased evaporation. recycling programs. Solid waste management (SWM) The portfolio review examined a total of six The World Bank Group has a portfolio of projects, three closed and three active, 85 active “urban environment� projects across three regions. Of the six, two proj- with $3.5 billion in loan and grant commit- ects, along with their incremental opportu- ments. Solid waste management (SWM) is nities for climate change mitigation and the main component in more than half of potential entry points for mainstreaming these projects. Another 20 projects with within sector and project development ob- large SWM components are under prepara- jectives, are shown in Table 10. The Shanghai tion within the Urban Environment pipeline, Urban Environment Project is indicative of with a total projected value of $4.5 billion. the incremental climate change mitigation 21 Mainstreaming Climate Change Mitigation in Cities Table 9: Urban SWM Project Components and Incremental Climate Change Opportunities Solid Waste Management Typical Components Incremental CC Opportunities Establishing & managing sanitary land�lls Collection & utilization of land�ll gas Establishing and operating municipal waste collection Energy-ef�cient solid waste collection schemes Local recycling schemes Waste stream separation & materials recovery Capacity building of municipal solid waste operators Local, city-wide, regional recycling schemes Encouraging proper waste disposal practices Composting Regulating dumpsites/informal disposal operations Table 10: Linking Climate Change Opportunities to Development Objectives - SWM Incremental Sector or Included Climate Project Climate Change Change Development CC Mitigation Project Name Country Opportunities Opportunities Objective PDO Linkage Solid Waste and West Improved MSW Possibility of Strengthening of Incremental Environmental Bank and collection & carbon �nance for institutions, carbon revenue Management Gaza disposal, including land�ll gas to arresting stream contributes Project land�ll gas supplement emerging to institutional recovery operating budgets pollution and pro- strenghening, & awareness tection of scarce recycling extends campaigns; local natural resources useful life of recycling to scarce land�ll reduce waste space stream volumes & create jobs Shanghai Urban China Carbon �nance of Integrated Financially Reduced energy Environ sludge disposal water-energy sustainable costs contribute to management urban svcs �nancial viable of provision wastewater services provider opportunities, such as integrated water-energy There are also good practice examples of management practices for the waste water comprehensive inclusion of climate change portion of the project, thus reducing overall mitigation opportunities for urban solid sewerage costs and rendering the urban ser- waste management projects. The Tunisia vices providers more �nancially viable. Municipal Solid Waste Management project 22 Opportunities for climate change mitigation in the urban portfolio Box 3 Municipal Solid Waste Management (Tunisia) This $27 million IBRD-�nanced project assists the Tunisian Government in developing the key elements of environmentally and �nancially sustainable municipal solid waste management. The project includes assistance to improve solid waste management at the national and local levels and rehabilitation of envi- ronmentally harmful dumpsites into modern land�lls with biogas collection and utilization capacity. These actions will enable the Tunisian Government to access additional revenue through the Clean Development Mechanism (CDM), thus improving cost recovery for the SWM sector. Institutional Support and Capacity Building will support the establishment of national coordination of the SWM sector plus a decentralized municipal solid waste management system at the regional and inter-municipal level focused on introducing modern SWM management as well as measures to achieve cost optimization and cost recovery. The project will �nance construction of a 5th cell in the Djebel Chekir land�ll (largest land�ll in Tunisia), including the construction, and operation of a biogas management system and nine new land�lls in Bizerte, Nabeul, Sousse, Monastir, Kairouan, Sfax, Gabes, Jerba and Medinine designed along the principles of sustainable management of municipal solid waste. Project outcomes include institutional strengthening of the sector, policy instruments for sustainable waste management, introduction of a national cost recovery system; outreach and communication to change citizens’ behaviors, and incremental revenue generation from reductions in greenhouse gas emissions. Source: World Bank Documents (See Box 3) is a good example of blended assistance to capacity building of municipal 10 IBRD/carbon �nance operation which will facilities including heat utilities; expan- quickly replicate good practice in land�ll sion of electricity distribution networks management on a sub-national and then and capacity building for electricity pro- national scale. viders; retro�tting of public buildings for energy ef�ciency; replacement of boilers General urban infrastructure and buildings and other equipment; and construction/ This category, which includes power, ener- rehabilitation of social housing and mu- gy, district heat, and social housing and nicipal buildings. buildings, contains a broad spectrum of projects focused on urban buildings and Projects in this category showed consider- facilities and on providing them with energy able variability by region in the extent to services, primarily heat and electricity. Typ- which they addressed climate change miti- ical components include: construction/ gation opportunities. Projects in countries rehabilitation of district heating facilities; with substantial heating needs (mainly in ECA) were found to be fairly comprehen- 10 sive in addressing energy ef�ciency and term used for carbon credits to help �nance GHG. climate change mitigation opportunities. 23 Mainstreaming Climate Change Mitigation in Cities There is, however, scope to introduce �nancial resources to local government greater ef�ciency on the demand side, i.e., bodies (See Table 12). at the end user level, with investments in weatherization of residential and commer- There are many good practice examples cial buildings, and the use of building of a more comprehensive treatment of materials and technologies that increase climate change mitigation opportunities the energy ef�ciency of the building enve- within the context of general urban infra- lope (See Table 11). structure, especially municipal buildings and facilities. The Third Tamil Nadu Urban Observed entry points for climate change Development Project (See Box 4) is a good mitigation in this sector included reduction example of an IDA operation which seeks of �scal drain from municipal budgets, to incorporate climate change mitigation providing for the minimum infrastructure opportunities within an overall framework necessary to deliver essential human ser- of municipal renovation together with im- vices, improving access to urban services, proved municipal capacity to maintain and devolvement of authority, capacity and these improvements in a sustainable way. Table 11: General Urban Infrastructure Components and Incremental Climate Change Opportunities Power͞Electricity͞District Heat͞Buildings Typical Components Incremental CC Opportunities Steam or hot water production and distribution Weatherization of buildings facilities Capacity building of district heating providers and Development of biofuels based on local feedstock heat sector reform for use in buildings and facilities Heat metering and demand management Additional lighting & appliance ef�ciency initiatives equipment Retro�tting of public buildings for energy Government procurement of energy-ef�cient ef�ciency goods and services Replacement of boilers and other equipment Selective use of renewable energy as economical Use of sustainable building materials & product 24 Opportunities for climate change mitigation in the urban portfolio Table 12: Linking Climate Change Opportunities to Development Objectives for General Urban Infrastructure Included Incremental Sector or Project Climate Change Climate Change Project Develop- CC Mitigation Name Country Opportunities Opportunities ment Objective PDO Linkage Small Towns Kyrgyz Incorporate energy Decentralize Reduced operating Infrastructure Republic ef�ciency into provision of urban costs through and Capacity various urban and social energy savings will Building infrastructure infrastructure contribute to Project improvements, from improvements and devolution and street lighting to build capacity of provide addition new water Local Self-Govern- resources for distribution systems ment (LSG) LSGs Third Tamil India Improve technical Build climate Devolve responsi- Carbon revenue Nadu capability, change manage- bility and capacity streams will performance & ment into capacity for �nancing and provide incremen- �nancial sustain- building & training providing urban tal �nancing & ability of agencies for urban managers; services to Urban possible public- responsible for create dedicated Local Bodies private partner- urban services carbon subproject (ULBs) ships for ULBs preparation facility to identify subproj- ect for CDM funding Croatia Croatia Reduction of heat Installation of heat Reducing GHG in Reduced energy District and water losses metering and preparation for EU requirements will Heating through rehabilita- additional heat accession help meet strict EU tion of district conservation & standards for heating networks demand manage- themal perfor- ment mance of buildings Power Djibouti Wind farm, T&D Household CFL Affordable and CFLs help Acess and loss reduction program, integrated accessible energy minimize electricity Diversi�cation water-energy mgmt services bills and reduce oil import needs Box 4 Third Tamil Nadu Urban Development Project (TNUDP III) (India) Tamil Nadu Urban Development is a $30 million IDA-�nanced repeater project consisting of an Urban Investment component focused on developing sustainable urban investments such as water supply, waste water collection, solid waste management, storm water drains, and sanitation facilities, and an Institutional Development component providing support for management improvements and institutional changes that contribute to the sustainability of urban policy reforms, organizational performance, and urban services delivery. This project includes a project preparation facility focused on incorporating innovative “clean energy� concepts into a program of sustainable urban investments. Source: World Bank Documents. 25 4 REVIEW OF NON-WORLD BANK GOOD PRACTICE IN URBAN CLIMATE CHANGE MITIGATION As the second part of the desk study, staff by city governments. Organizations actively undertook a review of urban-focused cli- promoting and coordinating such activities mate change mitigation initiatives outside include the International Energy Agency, the World Bank, and identi�ed a large and the United Nations, bilateral donors such growing volume of good practice from as USAID and SIDA, and NGOs. Table 13 which World Bank practitioners can learn. provides a list of some of the better-known There are also numerous networks and as- urban climate change action networks. sociations focused on climate action in the urban context with which the World Bank is The World Bank cooperates with or has already actively collaborating. The summary worked with many of these networks. The below highlights elements which are poten- World Resource Institute EMBARQ program tially useful in considering how to scale up has participated in developing several urban climate change mitigation interventions in transport assistance projects ultimately World Bank urban infrastructure projects. �nanced by the Bank, including the Mexico City BRT project and projects in Lima, Peru, Networks for urban climate change and Santiago, Chile. The Bank’s Latin Amer- mitigation ica and Caribbean Vice Presidency (LAC) is There are many formal and informal net- working with The Climate Group in the UK works dedicated to documenting and repli- to develop urban indicators to measure the cating climate change mitigation activities GHG “footprint� of large cities. 27 Table 13: International Organizations and Associations Focused on Urban Climate Change Action Network Sponsorship Goal or Objective Signature Activities ICLEI (International ICLEI’s World ICLEI helps localities increase awareness of ICLEI helps participating local governments establish and Council for Local Secretariat is sustainability issues and plan and implement action implement sustainable development through a �ve-step Environmental hosted by the City toward concrete climate targets. process: (1) establish baselines; (2) set targets; (3) develop Initiatives)11 of Toronto plans; (4) implement; and (5) measure results. Low Carbon The Climate Mobilizes municipal leaders to undertake climate • Cities Climate Summits (Oct. 2005 and May 2007) Leaders: C40 Group (U.K.)12 change mitigation and information sharing • Establishment of the London Climate Change Agency Municipal Network Alliance to Save Assists Eastern European and Eurasian municipali- • Policy and tariff reform, for Energy Energy/USAID ties in implementing energy-ef�ciency improvements • Disseminating energy management best practices Ef�ciency in heating and water systems, residential structures, • Energy planning & energy management techniques (MUNEE)13 and municipal buildings. • Watergy is active in India, Mexico, Brazil, Philippines, Watergy Network Alliance to Save Helps cities realize energy, water and monetary Sri Lanka, and South Africa. Energy/USAID14 savings through technical and managerial changes • Toolkits provide manuals, case studies, best practice in water supply systems guides, and resource documents. Partnership for SIDA, ADB, Helps cities respond to the uncontrolled growth of PSUTA encourages city governments to improve transport Sustainable Urban EMBARQ urban motorized transport, which threatens air system sustainability, through international cooperation. Mainstreaming Climate Change Mitigation in Cities Transport in Asia15 quality, increases congestion, and creates poor road 28 safety conditions. Energy UNECE (UN Assists SE and Eastern Europe, Caucasus, and Develops capacity at the local level for energy ef�ciency and Ef�ciency 21 Economic Central Asia countries in enhancing energy renewable energy investment, including promoting energy Commission for ef�ciency, diminishing fuel poverty arising from ef�ciency markets Europe) economic transition and meeting international environmental treaty obligations. MEELS16 IEA DSM Program Documents the role of municipalities as owner, Case studies in good practice of municipalities in undertaking Annex 9 operator, regulator, and customer of urban infrastruc- energy ef�ciency ture, including good practices in taking energy ef�cient actions. 11 http://webstore.iclei.org 12 Low Carbon Leader: Cities. http://theclimategroup.org 13 http://www.munee.org/ 14 Watergy: Taking Advantage of Untapped Energy and Water Ef�ciency Opportunities in Municipal Water Systems, prepared by the Alliance to Save Energy for USAID, 2002. http://www.watergy.net/resources/publications/watergy.pdf 15 Sustainable Urban Transport in Asia: Making the Vision a Reality. A CAI-Asia Program. Jan. 2007. http://www.wri.org/climate/pubs_description.cfm ?pid=4268 16 Municipalities and Energy Ef�ciency in a Liberalized System (MEELS) – The Role of Municipalities in the Energy Sector. Final Report of Annex IX of the IEA Demand Side Management Program. October 2002. http://dsm.iea.org/Files/Exco%20File%20Library/Key%20Publications/GrazReport2Final.pdf Review of non-world bank good practice in urban climate change mitigation Urban transport Water supply and sanitation There are many examples of good practice Many good practice examples from outside in realizing climate change opportunities the Bank can also be found for the water within urban transport projects, mostly supply and sanitation sector (See Table 15). focused on Bus Rapid Transit (BRT), Non- For example, a considerable amount of Motorized Transport (NMT), and Transpor- donor-supported work has been done under tation Demand Management (TDM). Good the auspices of the USAID-sponsored practice examples in developed countries Municipal Network for Energy Ef�ciency (Korea, US, Canada, UK) include a fee-based (MUNEE), through which efforts in Eastern approach in London, England, where reve- Europe and Central Asia have helped nues from a downtown congestion charge implement a combination of water sector are used to support bus transport, taxi fleet reforms, integrated water-energy manage- renewal, and other clean transport mecha- ment, capacity building, automation and nisms. Since introduction in 2003, traf�c in advanced technologies for water storage the central zone has been reduced by 15%, and supply, and legacy distribution network with more than £170 million in congestion remediation. Several of these projects in- charge revenues invested in bus network im- volved rehabilitation of older distribution provement such as new bus lanes and im- networks, resulting in enormous savings of 17 proved signaling arrangements. water and energy plus vastly improved reli- ability and quality of supply. The review also found several notable exam- ples of good practice in China, Colombia, Another water and waste water network Mexico, and Argentina (See Table 14). Of par- delivering good practice in climate change ticular note is the integrated approach to man- mitigation is the “Watergy� activity carried aging transport-related downtown congestion out by the Alliance to Save Energy and sup- and pollution in Bogota, Colombia, where a ported by several donors, including USAID, combination of bike lanes, pedestrian prom- throughout Latin America, Africa and South enades and BRT has resulted in signi�cant Asia. In Veracruz, Mexico, for example, GHG emission reductions along with the application of GIS mapping techniques to- mainstream urban transport indicators (local gether with hydrological modeling allowed pollution, downtown congestion, long travel for signi�cant increases in the operational times, urban quality of life, and safety). ef�ciency of a water supply system reliant on well water and diurnal above-ground 17 The Climate Group, Case Studies. Available at: storage. The ability to optimize water pump- http://theclimategroup.org/index.php/reducing_ ing and storage against hourly water re- emissions/case_studies/. Last accessed on March 25, 2007. quirements plus improved controls and 29 Table 14: Good Practice Examples of Climate Change Mitigation in Urban Transport Projects18 Country Project Title Climate Change Mitigation Components Key Drivers China Guangzhou Pedestrian Pedestrian-oriented streets and downtown motorcycle bans reduce noise, Crime, noise, downtown Mobility/Motorcycle pollution, parking and driving on walkways, encouraging pedestrian travel pollution, congestion Ban Colombia Bus Rapid Transit Bogota has implemented numerous GHG emission reduction measures. The City Pollution, congestion, long travel (BRT), Non-Motorized has built 200km of bike lanes and sidewalks, shaded promenades, and a 17 times, improved urban quality of Transport (NMT) and kilometer pedestrian zone to encourage NMT. TDM measures include alternating life, safety, crime Traf�c Demand odd-even car access within Bogota, doubling parking fees, increased gas taxes, Management (TDM) in and barriers preventing illegal parking. The combined GHG emission effect was Bogota18 estimated at 318 metric tons per day from 1997 levels. China Median Bus Lanes and Kunming’s newly-established Urban Transportation Institute planned and Congestion, long travel times, Bus Rapid Transit in implemented a 20 km median bus lane BRT system which accommodates not pollution, high fuel consumption Kunming18 only buses but also bicycles and pedestrians. Korea Bus Rapid Transit and Seoul’s BRT project included new ‘clean’ bus fleets, new contracting arrange- Increasing car ownership and Sector Regulation in ments with bus operators, 75 km of median bus-only lanes including cut-outs at congestion, declining bus Mainstreaming Climate Change Mitigation in Cities Seoul18 bus stops, bus management systems using GPS technologies, Extensive system rider-ship, and bus 30 marketing and promotional activities, and modern bus stations with improved operator pro�tability. amenities. Mexico BRT, diesel bus The Center for Sustainable Transport planned a BRT system running along 14 km Local pollution, congestion, conversion, and NMT of the central Insurgentes Avenue transport artery. The BRT carries more than safety, travel times in Mexico City 100 million passengers and prevented an estimated 36,000 tons of CO2 emissions in its �rst year. An associated pilot project retro�tted Mexico City’s diesel buses with catalytic converters and diesel particulate �lters, reducing soot emissions from old and new buses. Argentina NMT in Buenos Aires19 Since 2003, the City of Buenos Aires has expanded a bicycle network including Congestion, travel times, local 164 km exclusive lanes, and another 400 km of shared lanes, allowing cyclists to pollution commute to the city and getting motorized transportation off the road. Some 240,000 bicycle trips substituted for private car or public transport in 2003, avoiding 4,000 tons of CO2 and signi�cant amounts of local air pollutants. 18 Clean Air Institute for Asian Cities – Innovative Practices. http://www.cleanairnet.org/caiasia/1412/articles-60116_innovative.pdf 19 ICLEI. 2006. International Progress Report on “Cities for Climate Protection.� Available at: http://www.iclei.org/documents/USA/documents/CCP/ ICLEI-CCP_International_Report-2006.pdf. Table 15: Good Practice Examples of Climate Change Mitigation in Water Supply and Sanitation Projects City/Country Project Title Description Key Drivers Metrics & Indicators Tirgu Mures, Romania Reducing distribution Water loss audit ϩ leak monitoring Reduced pressure on Aquaserv losses were cut by losses in municipal water ϩ leak detection & remediation for water supplies; low 1/3, ϩ electricity savings & supply20 an older distribution network capacity of local utility; reduced water treatment costs lower operating costs Konjic, Bosnia- Water Loss Reduction for Water loss & water resource Water conservation, Reduction of 2 million m3 of Herzegovina Konjic Municipal Water management, including new tariffs �nancial viability of utility; losses over 5 years. Increased Utility21 & GIS-based customer informa- delay of capex for revenues of $600,000 from tion system, on a 40-yr. old rehabilitation; introduction price reform. distribution network with UFW of of commercial practices & 60–70 % price reform Krasnogorsk, Russia Water Utility Reform and Upgrading and automation of the Transforming municipal Savings Percent Water Ef�ciency22 entire water supply network, enterprises into viable kWh/m3 0.19 17% including variable speed drives, commercial entities; Total Use 15 0.1% pressure sensors, and control of (MWh) pumps and storage according to water demand 31 Veracruz, Mexico Energy ef�ciency plan for Energy/hydrology diagnostics ϩ Service interruptions, high 24% Energy savings, pumping the Metropolitan System sectorization & GIS maps ϩ well operating costs and energy intensity reduced from of Water and Sanitation23 rehabilitation, VSDs, and SCADA customer complaints .48 to .39 kWh/m3 Soweto, South Africa Operation Gcin’amanzi Individual prepayment meters, • UFW of 200% Monthly HH water needs (Save Water)24 rehabilitation of the delivery • Unreliable supplies dropped by 85%, saving network ϩ private plumbing • Dilapidated facilities 15 million kL water, 27 million �xtures, tariff reform, community kWh of power, and $7 million empowerment Fortalez, Brazil Study and implement Water system automation, High operating costs & • 22 GWh energy savings energy and water improved ef�ciency of pumps, Susceptibility to power • $2.5 million annual savings savings measures in optimized storage and delivery cuts • Improved reliability the water company arrangements (CAGECE)25 20 Ecolinks, www.rec.org/ecolinks/bestpractices/PDF/romania_aquaserv.pdf 21 Ecolinks, www.rec.org/ecolinks/bestpractices/PDF/bih-VIK.pdf 22 MUNEE, www.munee.org/go.idecs?i=51 23 Review of non-world bank good practice in urban climate change mitigation Alliance to Save Energy Watergy Case Study, www.watergy.net/resources/casestudies/veracruz_mexico.pdf 24 Alliance to Save Energy Watergy Case Study, www.watergy.net/resources/casestudies/soweto_southafrica.pdf 25 Alliance to Save Energy Watergy Case Study, www.watergy.net/resources/casestudies/fortaleza_brazil.pdf Mainstreaming Climate Change Mitigation in Cities coordination yielded a 25% improvement pro�tability through carbon revenue in the energy intensity of delivered water. In streams. The examples also suggest incre- the City of Fortalez, Brazil, application of mental climate change mitigation opportu- modeling and control technology allowed nities beyond land�ll gas, including materi- optimization of the integrated water supply als recovery, recycling and composting. and distribution network, resulting in sig- ni�cant electricity savings. General infrastructure and buildings Good practice examples in general urban Solid waste management infrastructure can be found as well. As As shown in Table 16, good practice exam- shown in Table 17, So�a, Bulgaria, Mexico ples in the solid waste management area City, Mexico, and Cape Town, South Africa come from a variety of sources, notably the have all given comprehensive city-wide at- International Council for Local Environmen- tention to climate change mitigation oppor- tal Initiatives (ICLEI), and can be found in tunities in urban infrastructure and invested all regions. In Kromeriz, Czech Republic, in multi-year investment programs to sys- Naga, Philippines, and Sao Paulo, Brazil, tematically capture GHG emissions reduc- uncontrolled legacy land�lls were rehabili- tion opportunities. As a result, each of these tated to stop the environmental impacts of cities has seen an impressive reduction in its leachate and to allow capture and produc- city-wide carbon footprint. The European tive use of land�ll gas. Projects in Distributed Energy Partnership (EU DEEP) is Khabarovsk, Russia and Danube Region, comprehensive in that it addresses the sus- Bulgaria illustrate innovative approaches to tainability of all aspects of municipal infra- recycling, waste stream volume reduction, structure, including building materials, fa- and local/regional coordination to provide cility operations, and even the ongoing solid waste management services. In most procurement of goods and services for mu- of the examples, the local development nicipal use. These examples point to the bene�ts of land�ll rehabilitation and im- bene�ts of increased capacity within cities provement are multiple, including environ- and municipalities to comprehensively ad- mental improvement, jobs creation, opera- dress the sustainability of municipal infra- tional cost reduction, and improved structure and operations. 32 Table 16: Good Practice Examples of Climate Change Mitigation in Solid Waste Management Projects City/Country Project Title Project Description Key Drivers Metrics & Indicators Khabarovsk, Community Sustainable neighborhood recycling reduced the Conserving land�ll space, Recycling paper & textiles Russia Waste Recycling volume of organics flowing to the land�ll and cre- Creating local jobs saved 65,000 kWh of energy in Program26 ating secondary materials for local manufacture making roo�ng paper Danube Modernization of Regional study of SWM to identify improved Urbanization-created stresses Operational savings from Region, SWM in practices (composting, waste stream separation, on proper disposal of SWM, regionalization, waste Bulgaria Bulgaria27 improved collection, measurement & tolling), groundwater & runoff pollution, minimization due to local investments (vehicles, containers, regionalized need for regional solutions; composting, leachate land�lls), and business models (public-private �nancial burden on municipali- prevention, improved utilization partnerships, village-level micro-enterprise, ties of scarce land�lls regional coops) Kromeriz, Biogas from Rehabilitation of legacy dumpsites to eliminate Environmental impacts of Some 337,177 m3 of biogas Czech Household leachate, capture methane, and create local uncontrolled land�lls; control of has been captured and used Republic Waste28 open spaces energy costs; urbanization as HH heating fuel Naga, The Making Fertilizer The city of Naga has built a Materials Recovery Environmental hazards of 16,000 tpy of reduced Philippines29 from Waste Facility (MRF) in an area that was once a uncontrolled land�lls, conserving greenhouse gas emissions 33 dumpsite and is now a controlled land�ll. The scarce land, reducing the cost of USD $168,000 a year MRF enables the city to effectively reuse, urban services operational savings recycle, and compost the 60 tons of municipal waste generated in the city every day. Sao Paulo, Converting São Paulo rehabilitated the Bandeirantes Land�ll High cost of urban services, 730,000 tpy of GHG emission Brazil30 Waste to Energy dump to allow land�ll gas capture and use in a �nancially sustainable SWM reductions as well as power for Local Power 20 MW power plant serving the area. The land�ll practices, power shortages, local output and revenue from Generation receives an average 7,000 tons of waste a day self-reliance carbon credits from the city of São Paulo. 26 Ecolink, www.rec.org/ecolinks/bestpractices/PDF/russia_megan.pdf 27 Ecolinks, www.rec.org/ecolinks/bestpractices/PDF/bulgaria_modernization.pdf 28 UN-Habitat, www.bestpractices.org/bpbriefs/urban_infrastructure.html 29 ICLEI. 2006. International Progress Report on “Cities for Climate Protection�. Available at: http://www.iclei.org/documents/USA/documents/CCP/ICLEI-CCP_International_Report-2006.pdf. Last accessed on March 25, 2007. 30 ICLEI. 2006. International Progress Report on “Cities for Climate Protection�. Available at: http://www.iclei.org/documents/USA/documents/CCP/ICLEI-CCP_International_Report-2006.pdf. Last accessed on March 25, 2007. Review of non-world bank good practice in urban climate change mitigation Table 17: Good Practice Examples of Climate Change Mitigation in the Power, Energy and General Urban Infrastructure Areas Country Project Title Project Description Key Drivers Metrics and Indicators So�a, City-Wide Energy The City of So�a undertook complete review of Excessive energy use in Public buildings energy Bulgaria Ef�ciency Action energy consumption, identifying energy conservation public buildings caused consumption reduced by 30% Plan31 measures, and preparing a long-term plan including high operating costs & in 314 municipal buildings and �nancing and solutions to legal and administrative poor quality of services 300,000 residential units barriers delivered Bishkek, Energy Ef�ciency at Improvements in district heating systems, including Poor indoor climate quality Total cost: $32,000 Kyrgyzstan the Republican pipe insulation, flow regulators, room temperature in winter; high heating bills Bill savings: $17,000 per yr Center of Surgery32 reductions based on occupancy, and regular O&M Mexico City, Energy Ef�ciency in Comprehensive study of opportunities for energy and Financially sustainable The estimated emissions Mexico Social Housing33 water savings in social housing yielded a plan to install public housing reduction from these changes compact fluorescent bulbs, low-flow showerheads, and is 31,000 tons CO2 per year. tap aerators into 75,000 social housing units over three years. Cape Town, Sustainable Local Cape Town is addressing GHG emissions across Power crunch, desirability 5% reduction in electricity Mainstreaming Climate Change Mitigation in Cities South Africa Governments sectors, including retro�tting of municipal buildings for to be a world-class African use, 10% reduction in CO2 34 Program energy ef�ciency, retro�tting 2,310 households in city, upcoming World Cup emission, 10% reduction in Khayelitsha, promoting high density public transport and Olympics private vehicle trips, and 90% corridors and bus rapid transit systems, and rehabili- penetration of CFL lighting – tating the Bellville South land�ll site to capture all by 2010 methane emissions to be used as an energy source for adjacent industry. EU Dissemination of DEEP assists European public authorities to shift to Reducing energy needs of Reduce GHG emissions by Energy Ef�ciency more sustainable building design and use of “green� public buildings and 40% over today’s levels Measures in Public electricity. Simple standards applicable Europe-wide operations, increasing the Buildings (DEEP)34 are developed for energy performance, procurement sustainability of urban of goods, use of sustainable building materials for infrastructure, meeting public construction and renovation works, together GHG emissions reduction with purchasing criteria for green electricity. targets 31 Ecolinks, www.rec.org/ecolinks/bestpractices/PDF/bulgaria_energy.pdf 32 Energy Savings International AS, www.ensi.no/references/040909.sf.td.Brochure%20Children%20Hospital.pdf 33 The Climate Group, Case Studies. Available at: http://theclimategroup.org/index.php/reducing_emissions/case_studies/. Last accessed on March 25, 2007. 34 http://www.iclei-europe.org/deep 5 CONSULTATIONS WITH URBAN PRACTITIONERS After the review was completed, one-on-one climate change-related issues (mitigation and meetings were conducted with urban practi- adaptation) within urban policy dialogue and tioners from all six regions. These practitio- sector work. A brief concept note on cities ners were provided with the portfolio review and climate change in the Bank’s Middle East results, as well as initial ideas regarding in- and North Africa Region (MNA) emphasizes cremental climate change mitigation oppor- the need for governments to plan for both ad- tunities for each type of infrastructure. The aptation and mitigation measures to reduce consultations were structured around a sim- GHG emissions, which would reduce oil im- ple template of discussion topics, which have ports and provide carbon emissions trading also been used to organize this section. opportunities.35 Speci�c mitigation measures suited to MNA cities include energy ef�cien- Desirability of mainstreaming climate cy in private buildings and municipal facili- change mitigation in urban infrastructure projects ties, production of electricity from renewable energy sources, methane recuperation from Practitioners noted that Bank assistance to solid-waste management facilities, and co- the sector comprises just a diminutive amount bene�ts from efforts to improve urban mobil- of total urban investment. Therefore, any im- ity and reduce traf�c congestion. In countries pact the Bank could have on the urban cli- in the Bank’s Latin America and Caribbean mate change mitigation agenda would have Region (LAC), urban practitioners have start- to be highly leveraged, either by mobilizing ed circulating a newsletter entitled Carbon additional lending or by demonstrating good Copy - Carbon Finance in Latin America and practice and overall leadership. Caribbean Cities [8]. Some regions appeared to have made more 35 MNA Cities and Climate Change, Anthony G. progress than others in terms of raising Bigio, Sr. Urban Specialist, MNSSD, April 19 2007. 35 Mainstreaming Climate Change Mitigation in Cities Practitioners agreed that mainstreaming cli- education services delivered via urban in- mate change mitigation opportunities was frastructure; and �nancial sustainability of most complete in the solid waste manage- municipal entities and state-owned utilities ment, energy, and power sectors, followed that provide urban services. by urban transport. The water supply, sanita- tion and general urban infrastructure sectors Respondents also pointed to the need to ef- were seen as somewhat lagging, at least in fectively incorporate climate change mitiga- relative terms. 36 tion components within lending operations, in order to identify the real incentives that Climate change mitigation-urban developing countries have to pursue climate infrastructure linkages change mitigation and to show how global Mainstreaming climate change mitigation bene�ts of climate change mitigation yield requires �nding the areas of overlap be- local bene�ts or vice versa. tween the development agenda and macro- economic objectives and climate change Several respondents noted that the reason mitigation. that carbon �nance and carbon offset proj- ects have made recent strides is because All respondents underscored the necessity they clearly support key country and sector of aligning incremental climate change mit- objectives by defraying the cost of deliver- igation opportunities with existing factors ing urban services or improving manage- driving urban policy and investment. Typi- ment of scarce resources. cal drivers include: high and increasing cost of oil to oil-importing countries, energy Practitioners noted that municipal of�cials ef�ciency as an energy security concern; are inherently conservative. They will only local air pollution abatement and urban consider capturing climate change mitiga- congestion solutions, which can also bring tion opportunities if they make comparable global bene�ts; new sources of �nancing or better contributions to sector and project from climate change sources such as the development objectives than other alterna- GEF and the Kyoto Protocol-based Clean tive uses of the funds. Development Mechanism (CDM); access to a minimum level of urban services such as Including climate change mitigation in the urban assistance portfolio water supply and sanitation, waste collec- tion, affordable transport, or health and Respondents suggested a simultaneous bottom-up and top-down effort to engage 36 In this report we have grouped together results urban sector practitioners and managers. from the General Urban Infrastructure and Energy Respondents stressed the importance of and Power sectors into one large General Urban Infrastructure category. engagement at the Sector Board and at the 36 Consultations with urban practitioners regional Sector Manager level. Several rec- embracing climate change mitigation within ommended that the environment depart- country policy and strategy documents such ment formally brief the Bank’s Urban Sector as the CAS and country policy reports such Board, describing why climate change miti- as the PRSP. Although all agreed such inclu- gation is important in the urban context, sions were useful, as it presupposes a dia- and providing speci�c proposals for addi- logue on climate change issues with PREM tional resources and operational guidelines. and Country Directors, it is not suf�cient to Sector Board support and participation by guarantee consideration of climate change the urban center are essential if climate in the preparation of individual projects. change mitigation is to become part of the urban policy dialogue and taken into ac- Figure 2 depicts the sequence of engage- count in project preparation. ment suggested by practitioners. The �rst step is to work with the Urban Sector Board In some regions the advent of results- to create new commitments to pursue ad- focused Country Assistance Strategies may ditional climate change mitigation opportu- provide new opportunities to include cli- nities. Equally important is engaging with mate change mitigation. There were differ- regional unit managers and country leads ent opinions regarding the importance of for each urban sector. These engagements Figure 2 Process for Dialogue on Incremental Climate Change Mitigation in Urban Projects Sector Board Commitment to Climate Change Mitigation Regional and Country-Level Comprehensive Policy Dialogue Sector Work and Analytical Underpinnings Climate change Climate change Climate change Climate change poverty macroeconomic urban services urban development linkages linkages linkages linkages Multi-sector Strategy Country Assistance Strategy DPL APL SIL PRG CF/GEF/OBA 37 Mainstreaming Climate Change Mitigation in Cities could be signi�cantly aided by analytic Several practitioners pointed out the impor- work, examples of regionally-based good tance of engaging directly with political practices, and availability of additional re- leaders in the urban context, e.g., mayors, sources. The critical step is to develop con- as an entry point. These political leaders are crete arguments to convince practitioners of also opinion leaders, and are much more the relevance of climate change mitigation likely to be open to the potential for align- to existing and future sector objectives and ing global climate change mitigation oppor- development outcomes. The results of this tunities with local urban development ob- dialogue can then �nd their way into policy jectives. Moreover, these urban leaders are documents such as the CAS. often connected into a wider network of opinion leaders. One outstanding example There is also a need for counterparts to em- of collaboration between urban leaders is brace the concept of climate change inclu- the C40 group of big cities who are collab- sion as a priority for assistance, and to be oratively developing methodologies for esti- willing to borrow for it. If inclusion of addi- mating total GHG emission on an urban- tional climate change increases the size of wide scale and undertaking comprehensive the loan, then it will be competing at the mitigation efforts with speci�c target on a margin with country-driven development long-term basis.37 priorities. Practical issues and barriers Several respondents pointed out the poten- The main barriers to greater inclusion of cli- tial supportive role that the environment units mate change mitigation opportunities are: within each region might play in encourag- ing greater inclusion of climate change miti- • lack of expertise and available resources gation opportunities. Although no respon- within the sustainable development net- dent suggested formal inclusion of climate work; change mitigation within the integrated safe- • dif�culties in getting the attention of task guards assessment process, environment unit team leaders, sector managers, and coun- staff reviewing project concepts and partici- terparts; and pating in project preparation and appraisal • lack of awareness and understanding by are usually capable in highlighting incre- urban practitioners and counterparts of mental opportunities for climate change mit- the potential bene�ts of climate change igation. However, their ability to do so would mitigation in the urban setting. be improved if they were provided with tem- 37 plates of good practice examples selected to See Low Carbon Leader: Cities. The Climate Group, Oct. 2005. http://www.theclimategroup match the regional context. .org/assets/Cities_publication.pdf 38 Consultations with urban practitioners Even though the above constraints may be and their impacts, both in terms of GHG fast disappearing because of the growing in- emissions reductions and contributions to terest in climate change, several practitio- sector and development objectives. In this ners noted that the incremental cost in terms regard much of the work done by the urban of additional sector work, more project infrastructure-focused networks described preparation, and larger lending and assis- in Section 5, such as MUNEE, ICLEI, and tance requirements could still be seen as a Watergy, are worthy of note. barrier by both Bank staff and counterparts. Practitioners would be open to considering Each region has speci�c urban infrastruc- incremental climate change mitigation op- ture priorities and development needs. There portunities but only if it did not detract from is a need for analytic work to identify the their other priorities or require extra re- potential climate change mitigation modali- sources or incur extra costs. ties for an array of different urban sector pri- orities and development needs. For exam- Analytic work required to scale-up ple, in MNA, key urban sector priorities climate change mitigation include municipal �nance, decentraliza- Several practitioners identi�ed speci�c in- tion, land issues, housing and slum up- frastructure additions or mitigations that de- grades, and cultural heritage. Climate serve further analysis in order to fully under- change mitigation measures well suited to stand their climate change mitigation value. apply to these sector priorities need to be Examples include long sea outfalls for sew- developed and demonstrated. age disposal, upgrading tertiary road sur- faces to improve fuel economy, large-scale Similarly, the identi�cation and dissemina- recycling, composting, and methane gas tion of good practice in urban-centered cli- from sewage treatment and sludge disposal. mate change mitigation measures is essen- Analytic work is vital not only to under- tial. Furthermore, the good practice standing the dynamics of a climate change examples must embrace and demonstrate mitigation intervention, but also to develop mainstreaming within each region’s context the Measurement and Veri�cation (M&V) and priorities. methodologies needed to develop an incre- mental cost analysis or to qualify the mitiga- Benchmarking can play an important role tion measure for carbon �nancing. in raising awareness of opportunities and “good practice gaps� between regions and Several practitioners suggested development countries. Although there are many daunt- of handbook or tool kits that describe indic- ing issues in comparing between cities in all ative climate change mitigation measures their diversity, one exciting development is 39 Mainstreaming Climate Change Mitigation in Cities the Global City Indicators Project, which Several respondents suggested that the region- the World Bank is supporting through the al environment unit is well placed to pursue World Bank Institute. Included among the entry points on an ongoing basis. However, array of indicators nominated for data col- this would likely require some capacity build- lection and reporting will be environmental ing and technical training of regional environ- sustainability, as measured by greenhouse mental staff. No-one suggested formal incor- gas emission per capita [9]. poration of climate change mitigation into the existing integrated safeguards process. Gaining entry to project preparation Probably the single most important practi- Any of these entry strategies would bene�t cal consideration to moving the urban cli- from the availability of a cadre of climate mate change mitigation agenda forward is change mitigation experts in the Environ- how to gain entry to the project preparation ment or Urban center who could be mobi- process. Incorporating climate change miti- lized to assist in project preparation, sector gation opportunities within high-level poli- work, or policy dialogue within the Bank cy dialogues and within guidance docu- and with counterparts. These experts would ments such as the CAS and PRSP is important; be made available to assist in project recon- however, gaining entry to the preparation naissance and preparation, participate in process of speci�c urban infrastructure proj- project pre-appraisal and appraisal, and to ects is the only way that the value of addi- engage with counterparts on the value of tional climate change mitigation can be climate change mitigation activities. proven. The respondents had several sug- gestions on how to initiate this dialogue: Support needs Respondents pointed out that awareness of • build on the requirement to consider en- climate change issues was high in the devel- vironmental issues contained in the PCN oping countries in which they work. The template; challenge was in developing a strategy to • undertake “component preparation pi- engage in climate change mitigation that lots,� where climate change mitigation did not detract from the myriad other priori- specialists would work with urban practi- ties for development assistance. In this re- tioners in identifying incremental climate gard additional assistance to both Bank staff change mitigation opportunities for inclu- and counterparts in pursuing a climate sion in projects under preparation; and change mitigation dialogue in the country • consider climate change opportunities as context and providing speci�c �nancial and part of the feasibility studies typically un- technical assistance would be bene�cial. dertaken ahead of project appraisal. Such assistance might be centered in a trust 40 Consultations with urban practitioners fund facility similar to ESMAP or ASTAE at many stand-alone GEF and carbon �nance the regional or global level. projects, there are relatively few projects that include IDA- or IBRD-�nanced com- Respondents also suggested that training ponents together with GEF and carbon- sessions on climate change mitigation op- �nanced components. This would seem to portunities and �nancing might be bene�- be a missed opportunity, since blending cial. Any such outreach or training to Bank IBRD lending with carbon �nance could staff would have to be regionally and sector- partially offset the higher IBRD interest focused, short, and action oriented. payments. Another way to increase awareness of climate The urban context presents important change mitigation opportunities in the urban opportunities for programmatic lending, context would be brief (4 pages) guidance or either through APLs or adjustment op- applications notes which include quantitative erations (PSAL/Cs). Such programmatic results and are chosen to resonate with spe- lending is distinct from an SIL and more ci�c regions or types of infrastructure. A good similar to sector-wide approaches (SWAp), practice example of this type of knowledge where the Bank is �nancing a certain cat- dissemination is the carbon �nance newslet- egory of investments (transport, water sup- ter produced by LAC [8]. ply, etc.) over a certain period of time. This approach lends itself to incorporating Another suggestion for sharing good prac- climate change mitigation (or adaptation), tice would be to organize BBL sessions un- as the programmatic lending outcomes der the infrastructure sector boards that are expressed on a city-wide basis using highlight the climate change mitigation op- measurable indicators (e.g., commuting portunities within speci�c projects, includ- trip length, GHG emissions per capita). It ing results where available. is likely that in some regions (LAC, EAP) programmatic lending under IBRD will in- Financing strategies for climate change crease, with the possibility that program- mitigation matic climate change �nancing mecha- Practitioners noted the lack of projects nisms could be added to support which blend together different �nancing incremental climate change mitigation sources. For example, while there are opportunities. 41 42 6 CONCLUSIONS The study comprised three parts, each of climate change mitigation potential simply which is reported in separate sections of this due to the scale of urban vehicular emis- report: (i) a review of the Bank’s historical sions to climate change. Table 1 summarizes urban portfolio (1995–2005) focused on both the conventional components found in documenting opportunities for climate each category of urban infrastructure pro- change mitigation; (ii) a review of good ject as well as the additional climate change practice outside the Bank for climate change mitigation opportunities. mitigation targeted to urban infrastructure; and (iii) consultations with urban sector The portfolio review also looked for and practitioners regarding practical aspects of found entry points and linkages to sector incorporating climate change mitigation and development objectives that would components within urban infrastructure mainstream the inclusion of climate change projects. mitigation opportunities. An entry point or linkage exists whenever the climate change Conclusions of the portfolio review mitigation opportunity can be clearly The study suggests that there are already shown to generate co-bene�ts in terms of some best practice projects in the Bank contribution to the broader sector and portfolio but signi�cant untapped climate project development objectives of the change mitigation opportunities also exist. client country. Examples of linkages to de- The greatest unrealized potential was found velopment objectives or macroeconomic in two sub-sectors – Water Supply and Sani- pillars included: tation (WSS) and General Urban Infrastruc- ture, including Buildings. However, Urban • When energy ef�ciency or water loss re- Transport may well have the largest absolute duction measures reduces the delivery 43 Mainstreaming Climate Change Mitigation in Cities costs of essential urban services, making climate change by reducing GHG emissions them more affordable and more accessi- while also rendering the urban infrastruc- ble to the urban poor; ture more adaptable to hotter weather con- • When local recycling or solid waste ditions. Similarly, several projects focusing stream separation generates local income on urban water supply were found to have and jobs; unrealized adaptation value, especially as • When additional arrangements for non- regards securing diversity and sustainability motorized transport (bicycle or pedestri- in water sources. an) reduces congestion and air pollution from short-duration trips; The adaptation agenda is not nearly as well- • When improved thermal performance of developed as the mitigation agenda, but buildings reduces the �scal drain of heat- will be equally or more important in future ing and cooling public buildings and cre- urban projects. For example, climate ates an indoor environment where essen- change-induced increases in asthma, ma- tial health and education services can be laria, dengue fever, and possibly rat-vector more effectively delivered. borne ailments will place new demands on • When capacity for city planning is ex- urban public health infrastructure. Similarly, panded suf�ciently to impact the long- there are strong linkages between compre- term urban patterns in the direction of hensive disaster preparedness and climate mixed-use development or more com- change, especially as regards building resil- pact urban and peri-urban footprints, ience into urban infrastructure. thus reducing the demand for transporta- tion services, primary energy, and other This study concludes that climate change GHG emission-producing resources. adaptation should be given an equal footing in developing linkages between climate Climate change mitigation vs. adaptation change and assistance to urban infrastruc- The focus of this study was on climate ture. A next step suggested in this regard is a change mitigation opportunities in the study focused on the climate change adap- World Bank’s urban portfolio. However, of tation potential, including a review of good increasing interest for future project design practice inside and outside the Bank. is the overlap between adaptation measures and mitigation measures in the urban con- Good practice outside the Bank text. For example, improving the energy There is a growing volume of urban climate ef�ciency of building construction (with change mitigation good practice outside of improved insulation, reflective glass, or the Bank, including valuable knowledge ef�cient air conditioning) will mitigate networks and associations focused on the 44 Conclusions urban context. The Bank should take advan- objectives and macroeconomic con- tage of this growing knowledge base and cerns. One possible path might be en- project experience by scaling-up its collab- gaging directly with political leaders in oration with groups, NGOs and donors such the urban context, e.g., mayors, as an en- as EMBARQ, MUNEE, ICLEI, The Climate try point. These political leaders are also Group, the Alliance to Save Energy, USAID, opinion leaders, and are much more like- SIDA, and UNECE. ly to be open to the potential for aligning global climate change mitigation oppor- Barriers to additional climate change tunities with local urban development mitigation objectives. Realizing additional climate change mitiga- • Operational Barriers. The main barriers to tion within urban infrastructure lending and greater inclusion of climate change miti- assistance will require overcoming a suc- gation opportunities are (i) the lack of ex- cession of barriers: pertise and resources available within the sustainable development network; (ii) dif- • Relevance. The climate change mitiga- �culties in getting the attention of task tion agenda must align with the broader team leaders, sector managers, and coun- development agenda and support macro- terparts; (iii) lack of awareness and under- economic objectives, e.g., defraying the standing by urban practitioners and coun- cost of delivering urban services or im- terparts of the potential bene�ts of climate proving management of scarce resources. change mitigation in the urban setting; Mainstreaming climate change mitiga- and (iv) competing priorities and limited tion requires �nding the areas of overlap preparation time. Overcoming these bar- between development objectives and riers will require resources and expertise; climate change mitigation. thus, a climate change mitigation “SWOT • Convincing the Counterparts. Counter- team� has been suggested,38 that can pro- parts must embrace the climate change vide support to regions by doing quick mitigation as a priority for assistance, and diagnostic exercises. Practitioners would be willing to borrow for it. If inclusion of be open to considering incremental cli- additional climate change increases the mate change mitigation opportunities but size of the loan then it will be competing only if it did increase their work load, at the margin with country-driven devel- preparation budget or preparation time. opment priorities. This underscores the importance of focusing on incremental 38 climate change mitigation opportunities A similar proposal is contained in the proposal to scale-up energy ef�ciency investment within the that contribute to mainstream development Bank. 45 Mainstreaming Climate Change Mitigation in Cities Next steps urban sector priorities such as municipal �- A clear view of next steps emerged from the nance, decentralization, land issues, housing portfolio review process and consultations and slum upgrades, cultural heritage, etc.); with urban practitioners. Practitioners piloting efforts to demonstrate climate stressed the importance of engagement at the change-urban infrastructure linkages in spe- Sector Board level and at the regional Sector ci�c projects; and analytic development (to Manager level as an essential �rst step. Prac- create benchmarks/indicators that cities can titioners also recommended that the Environ- use to identify opportunities and identify ment Anchor formally engage the Urban “good practice gaps� in urban infrastructure). Sector board, describing the rationale for in- corporating additional climate change miti- Speci�c follow-on activities suggested by gation within the urban context and suggest- urban practitioners and peer reviewers ing new initiatives (e.g., additional resources include: and operational guidelines) to make it hap- pen. The report was also disseminated within • Preparation of guidance notes focused the Bank. The team also received valuable on capturing additional climate change comments from participants at a presentation mitigation opportunities in relatively of this work to delegates from the Bangkok under-served urban sub-sectors, notably Metropolitan Administration in May 2007, as water supply and sanitation and general well as at the Cities and Climate Change infrastructure including buildings; Workshop in June 2007, and to the Energy • Undertake a similar portfolio review fo- Ef�ciency Thematic Group in October 2007. cused on climate change adaptation op- portunities in the urban context; Engagement at the Sector Board, Unit Direc- • Collaborate with interested urban practi- tor, and practitioner level must be followed tioners to pilot the key �ndings and by designating resources necessary to identify guidelines in an operational setting; entry points for mainstreaming climate • Undertake analytic work needed to cre- change mitigation in the regional and country- ate climate change-related performance speci�c urban context. Finding workable indicators that are relevant to city man- climate change mitigation opportunities that agers and allow for monitoring the effect deliver local as well as global bene�ts will of climate change mitigation measures require accelerated knowledge management over time; and efforts (e.g., a handbook on indicative climate • Undertake analytical work in order to de- change mitigation measures and their local velop a co-bene�ts framework, which and global bene�ts); sector work (to match helps link climate change mitigation in- climate change mitigation modalities with terventions to local bene�ts/priorities. 46 7 REFERENCES [1] State of the World Population 2007: [5] Infrastructure Action Plan, The World Unleashing the Potential of Urban Bank, July 2003. Growth, United Nations Population Fund (UNFPA), July 2007. [6] Improving Lives: World Bank Group Progress Report on Renewable Energy [2] Fuel for Thought. Fuel for Thought: An and Energy Ef�ciency - Fiscal Year 2006, Environmental Strategy for the Energy Energy and Mining Sector Board, The Sector. Prepared jointly by the Environ- World Bank, December 2006. ment Department, the Energy, Mining, and Telecommunications Department, [7] “Clean Energy for Development Invest- and the International Finance Corpora- ment Framework: The World Bank tion, The World Bank, Washington, Group Action Plan,� The World Bank, D.C., 2000. Washington, D.C., April 15, 2007. [3] Making Sustainable Commitments: An [8] Carbon Copy. Carbon Finance in Latin Environment Strategy for the World America and Caribbean Cities, ed. By Bank. The World Bank, Washington, Dan Hoornweb. Latin America and D.C, December 2001. Caribbean Region, The World Bank, Washington, D.C. November 2005. [4] Cities on the Move: A World Bank Urban Transport Strategy Review. The [9] City Indicators: Their Development and World Bank, Washington, D.C., August Use, Daniel Hoornweg, et al, The World 2002. Bank. 47 Mainstreaming Climate Change Mitigation in Cities Annex 1: Listing of Urban Projects Reviewed Sector Region Country Project Fiscal Year Project ID Urban AFR Senegal Urban Mobility Improvement FY00 55472 Transport EAP China Guangzhou City Transport FY98 3614 EAP Philippines Metro Manila Urban FY01 57731 Transport Improvement LAC Argentina Buenos Aires Urban FY97 39584 Transport LAC Brazil Sao Paulo Metro Line 4 FY02 51696 LAC Colombia Bogota Urban Transport FY96 6872 Water Supply & AFR Burkina Ouagadougou Water FY01 306 Sewerage Faso Supply EAP Cambodia Urban Water Supply FY98 45629 EAP China Second Shanghai FY96 3648 Sewerage EAP Mongolia Second Ulaanbaatar FY04 74591 Services Improvement EAP Vietnam Water Supply FY97 4830 ECA Azerbaijan Greater Baku Water Supply FY95 8288 Rehabilitation ECA Ukraine Lviv Water/Wastewater FY01 35786 LAC Uruguay Water & Sanitation FY00 63383 Modernization MNA Iran Ahwaz & Shiraz Water and FY04 71191 Sanitation SA India Bombay Sewage Disposal FY96 10480 Solid Waste EAP China Hubei Urban Environment FY96 3602 Management EAP China Second Shanghai Urban FY06 75732 APL EAP Vietnam Three Cities Sanitation FY99 51553 ECA Latvia Municipal Solid Waste FY98 40553 ECA Uzbekistan Tashkent Solid Waste FY98 49582 MNA West Bank Solid Waste & FY01 54051 and Gaza Environmental Management General Urban EAP Indonesia Kalimantan Urban FY94 3951 Infrastructure Development (including ECA Georgia Municipal Infrastructure FY95 8417 Power, Energy, Rehabilitation District Heat & AFR Ghana Urban Environmental FY96 973 Buildngs) Sanitation AFR Rwanda Urban Infrastructure & City FY06 60005 Management APL EAP China Zhejiang Urban FY04 66955 Environment (Continued on next page) 48 References Annex 1: Listing of Urban Projects Reviewed (Continued) Sector Region Country Project Fiscal Year Project ID EAP Indonesia East Java UDP II FY96 39312 ECA Belarus Social Infrastructure Retro�t FY01 44748 ECA Croatia District Heating Project FY06 94389 ECA Kyrgyz Small Towns Infrastructure FY05 83377 Republic & Capacity Building ECA Latvia Riga District Heating FY01 8530 Rehabilitation ECA Lithuania Municipal Development FY99 35802 ECA Ukraine Kiev Public Buildings FY00 55739 Energy Ef�ciency ECA Ukraine Sevastopol Heat Supply FY01 55738 Improvement MNA Djibouti Power Access and FY06 86379 Diversi�cation MNA Lebanon First Municipal FY00 50544 Infrastructure SA India Third Tamil Nadu Urban FY06 83780 49 World Bank Global Environment Facility Coordination Team Environment Department THE WORLD BANK 1818 H Street, NW Washington, D.C. 20433, USA Telephone: 202.473.1816 Fax: 202.522.3258 Email: GEOnline@worldbank.org Web: www.worldbank.org/gef