A Collaborative Approaches to Cities Development Hazem Galal, Global Leader for Cities and Local Government

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1 A Collaborative Approaches to Cities Development Hazem Galal, Global Leader for Cities and Local Government A Dialogue on Cities and Climate Change Workshop, World Bank Role of the Private Sector in Managing Climate Change 21 September 2009

2 PwC has been active in the area of cities sustainable development, a key factor in addressing climate change Examples PwC is a leading member in the World Council for Sustainable Development s Vision 2050 Member of Jury for Globe Award 2009 Sustainable City Award Review of carbon markets: Creating a successful international framework Building Trust in Emissions Reporting Global Trends in Emissions Trading Schemes The world in 2050: Can rapid global growth be reconciled with moving to a low carbon economy? Cities of the future: Global competition, Local leadership 2

3 We developed a Comprehensive Framework to assist cities with Sustainable Development, where the Environmental is an essential component Strategic Ambition Capacity Vision Enablers Management Capacity Leadership City Brand Prioritisation Social Intelligence City Finance Management Capacity Programme& Project Performance & Risk Partnerships Property People Policy & Management Intellectual Social Environmental Sustainable Local Economy Infrastructure ICT Culture & Leisure Participation & Political Delivery& Achievement Performance& Results KPIs Performance & Results (KPIs) A City of the Future, A City of Opportunities Source: PwC s Cities of the Future Framework 3

4 Successful City Governments leverage close interactions and continuous dialougue with multiple stakeholders leading to true partnerships and collaboration with the private sector, NGOs, academia and enthusiastic citizens Source: PwC s Cities of the future: Global competition, Local leadership 4

5 Applying the assessment tool, several developed and developing cities are forming closer collaboration with the private sector - Utrecht The CoF assessment tool helps in charting the path to sustainable development by identifying strengths and weaknesses and learning from other cities In Utrecht, a survey was conducted to compare the private sector and NGOs perception of the capitals: Environment scored very poorly, although in reality it s one of the cities reported strengths: A multi stakeholder Utrecht Development Board was established as a binding agent for the future of the city Developing cities from (e.g. Rosario in Argentina and Suracaba in Brazil, sponsored by the Chamer of Commerce) also used the tool to have insights and to formulate solutions Source: Utrecht s Assessment Report and PwC analysis 5

6 Collective action is necessary to address climate change - Vision 2050 by the World Business Council for Sustainable Development What is Vision 2050 A project led and executed by 29 WBCSD member private sector companies from almost all major business sectors, and a good geographic spread US, Europe, Africa, Latin America & Asia Lays out a positive vision of a world in 2050 and the role of business in pathways to get us there: Resources, Energy & Environment (REE), People & Values, Economic and Governance What it is not Exhaustive and detailed picture with a complete set of answers A binding set of commitments and promises A universal perspective A macro think-piece to enable further dialogue and strategy development Release of findings and outreach to begin in October 2009 Coordination and collaboration with other initiatives such as the Sustainable Cities Partnership Source: Vision 2050 Definitions and regional workshops facilitated by PwC 6

7 The highly ambitious 2050 Vision is categorised under four vision elements People and values: Social cohesion is strong and people place a high value on resilient communities. Intra-generational inequities and intergenerational jealousies have diminished in a world of more fluid identities. All have the opportunity to be educated to the level required to play meaningful roles in the "societies" in which they live. Economy: A hyper-innovative and globally interdependent economy thrives in a world of stabilizing population through high levels of cooperation, eco-efficiency and creativity. Framework conditions for business local, national and global - stimulate equality of opportunity for entrepreneurship and inclusion. Markets not only reflect environmental realities but encourage the best use of ecosystem services. Governance: Effective governance is multi-scalar, pluralistic, transparent, fair and inclusive. International collaboration is the winning strategy. Governance structures are trusted, able to adequately address challenges that carry both global and local impact and enable appropriate solutions. Resources, energy and environment: Energy and resources are used more efficiently and harmful emissions and waste are significantly reduced. Ecosystems degradation has been reversed and ecosystem services are maintained and enhanced: biodiversity has been conserved and is prospering. 7 Source: WBCSD regional workshops facilitated by PwC

8 Example of a Pathway: Materials Pathway for a Closed loop, Circular Economy ) EDUCATION AWARENESS Developed world has been educated: governments, Industry, general public Develop world - recycling mandates: - trade policies - fight illegal or unhealthy circuits 2) POLICIES & GLOBAL GOVERNANCE 3) INDICATORS & ACCOUNTING - Agree on a set of FOR C2C indicators 4) RECYCLING & REUSE - Agree on a set of rules on the accounting and economy of resources, energy and materials - Establish the true cost of primary and secondary materials 5) NO LANDFILL REUSE OF LANDFILL Emerging economies have been educated Continued efforts to make LCM part of the genetic code Continue to fine-tune policies: - eliminate toxic substances - design and recycling mandates Expand principles to worldwide agenda: - trade policies - best available technologies - global targets Application of the rules on a global scale By 2050 create a world where closed loop, circular economy is the general principle for the management of natural, nonrenewable Materials Recycling technologies are 10x more efficient Technologies are available to mine economically existing landfills Factor 10 per capita consumption of nonrenewable resources should not exceed 56tpy - Difficult to recycle, harmful or scarce materials must progressively be replaced or ultimately be banned. - Technology development continues to improve recycling yields. - Goods are increasingly better designed and engineered to be reused and recycled. 6) STORAGE OF TOXIC AND/OR NON-USEABLE MATERIALS 7)DEMATERIALISATION 8) ECO-EFFICIENCY 9) DIFFUSE SOURCES OF MATERIAL LOSSES Eliminate as much as possible the use of land filling Solution to radioactive waste is accepted and practiced All waste is inventorised in such a way that recycling is possible at a future date Reduce size of goods, avoid waste in packaging, increase lifetime Inventorise diffuse sources, study harmful character Policies established to address issues around diffuse sources 8 Source: WBCSD regional workshops facilitated by PwC

9 Some private sector organisations are contributing to solving environmental issues, but more efforts are needed to reverse the effects of Climate Change Private Sector s Role Examples WBCSD Tomorrow s Leaders: The leading global companies will be those that provide goods & services and reach new customers in ways that address the world s major challenges. Becoming heavily engaged in a multilateral dialouge to find the balance between: what is needed to maintain its license to operate, innovate & grow; and how to balance this with rules & constraints that it is willing to undertake What is needed? Supplying the necessary innovations and technologies to: Strong public-private partnerships (PPP) between governments & business to coordinate innovation & implementation immediately address its own impacts of climate change; and commerialise new green technologies that would reduce emissions and other environmental hazards Public trust in national governments & business for acceptance of the transition A sense of equitable burden & benefit sharing amongst countries Effecting functioning markets which allow these technologies to be delivered Strong global cooperation with enhanced global governance & institutions to create the necessary infrastructure to finance initiatives 9 Source: WBCSD regional workshops facilitated by PwC