Cities and Green Growth. Javier Sánchez-Reaza Head Urban Development Programme Regional Development Policy Division

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1 Cities and Green Growth Javier Sánchez-Reaza Head Urban Development Programme Regional Development Policy Division

2 The logic of city-scale action Economic role of cities (urbanisation and income) Negative externalities (congestion, pollution, sprawl) Contribution to climate change Vulnerability to climate change impacts Opportunities for synergies and complementarities (attractiveness) Pollution emission growth rate ( ) Correlation between per capita CO2 emissions in transport and density in predominantly urban areas Change in attractiveness and pollution emissions across OECD metro-regions ( ) Osaka 4.00% Fukuoka 3.00% Stockholm 2.00% Rome Seoul Dallas Atlanta Mexico city Tokyo Paris1.00% New York Istanbul Zurich Chicago Detroit Baltimore Los Angeles Busan Helsinki 0.00% Hanburg Budapest Melbourne Ankara Aichi -1.00% Lyon Naples Auckland -2.00% Lille London -3.00% Guadalajara Madrid Monterrey -4.00% Absolute change in attractiveness

3 However, the trend has been towards sprawl Land consumption has increased more rapidly than the population growth in most OECD countries. Changes in built-up area ( ) Urban built-up area (in km2) 700, , , , , , ,000 0 OECD BRICs Rest of the world There are cases of urban population growth that outpaces land consumption. Dublin Lisbon Rome Madrid Bratislava Naples Valencia Helsinki Prague Turin Warsaw Krakow Marseille Lyon Stockholm Paris Milan Barcelona Oslo Ankara Izmir Istanbul Budapest Lille Vienna Population and built-up area growth rate in selected European regions ( ) Total population growth Built-up land growth 0% 1% 2% 3% 4% 5% 6% Annual average growth rate ( )

4 This is a particular challenge for developing countries 81% of the growth of energy use will come from developing countries. The form they give to their cities now is crucial for determining the energy use.

5 Green Cities Case-Studies: Paris, France Chicago, USA Stockholm, Sweden Kitakyushu, Japan

6 Reducing Urban Sprawl - International best practices Preferential property tax rate for multiple dwellings (Copenhagen; Sweden) Two-rate property tax system (Sydney, Hong Kong, Pittsburg, Denmark, Finland) Special Area Tax Development fees Ending the incentives to urban sprawl. Property taxes and fees related to urban development can be reformed to incentivise compact development. But the rate structure must truly differentiate between desirable (compact, transit-oriented development) and undesirable (single-family auto-dependent sprawl) outcomes to be effective.

7 Promoting public transportation and green mobility International best practices Bus Rapid Transit BRP (Curitiba, Bogotá Transmilenio, Mexico City Metro Bus) Public Bicicle Services (Paris, Lyon, Barcelona, Mexico City) Cultural Change Marked better quality services and time savings gradually promote a cultural change in favour of public transportation and cleaner mobility. Linkages to other modal transportation are an important feature

8 Financing public transit International best practices Value capture tax (Hong Kong, Miami, Milan, Bogota) Congestion charges (Singapore, London, Stockholm, Milan) High-occupancy toll lanes Parking charges and fees Transportation-related fees and taxes can also be used to fund public transit and create disincentives for auto use.

9 Facilitating the development of green tech clusters International best practices Paris Enterprise Region (France) Lahti Cleantech Cluster (Finland) i6 Green Challenge Programme (US) Tax incentives and funding for green tech industrial zones and incubators drive entrepreneurship, innovation and commercialisation

10 Increasing demand for green tech firms products International best practices Helsinki public procurement centre (Finland) Hamburg hydrogen fuel buses (Germany, Spain, UK) Calgary s renewable energy purchasing (Canada) Public-private-partnerships City governments can green regional growth by the purchase of or the investment in construction, transportation, ICT, renewable energy, etc.

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