Building Sustainable Action Plans in Mid-Size Cities in LAC: A Vehicle for Integrating Cross-sector Response to climate action

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1 Building Sustainable Action Plans in Mid-Size Cities in LAC: A Vehicle for Integrating Cross-sector Response to climate action David Wilk Inter-American Development Bank Resilient Cities Congress - ICLEI Bonn, Germany June 3, 2011

2 -INDEX- 1. Climate Change in LAC 2. IDB s response to CC 3. Sustainable Emerging Cities Platform 4. Preliminary results from Trujillo 5. Lessons learned and next steps

3 Climate Vulnerability and Adaptation LAC vulnerability to detrimental effects of climate change high impacts on water, urban infrastructure, energy, agriculture, marine/coastal ecosystems and forest/biodiversity Unprecedented historical and projected costs Historical costs: US$81 bill. / year ( ) Projected cost (2 C temp. incr): US$17-21 bill. / year ( ) The study on economic impacts of CC, financed by IDB and UK ( Stern Mexico ), shows a cost of % of GDP by 2050 The study on Economics of Climate Adaptation of the CCRIF establishes current losses at 6% of GDP in many countries (i.e. Jamaica); Expected loss could rise to 9% of GDP by 2030.

4 Climate Vulnerability in Cities Infrastructure Sea level rise can affect coastal infrastructure incl. transport systems, water and sanitation, urban housing and economic activities in general 50% of LAC cities with populations over 5 million are located in lower line coastal areas, if sea level rises by one meter, losses could be approx. 0.54% of regional GDP 1 Increase and intensification of extreme weather events such as hurricanes, flooding, etc. Informal settlements in cities exacerbate the vulnerability of the residents: including poorly constructed buildings, inadequate infrastructure, lack of safe drinking water, drainage and sanitation services and severe overcrowding with negative public health consequences Water resources E.g. Expected droughts in East Central America and the Andean region. Salinization of aquifers due to SLR Health Higher incidence of diseases, such as malaria, dengue, cholera and other water-borne diseases. Intensification of the heat island effect could lead to thermal stress (specially for elder and children) Tourism In extreme cases, major tourist infrastructure (hotels, ports, airports, services, etc.) would become unutilized. 1 Dasgupta et al. 2007

5 GHG Emission and Mitigation Challenges LAC concentrates 8.6% of world population and 8.2% of the global GDP, but generates 12% of global emission (including land use/land use change) BUT: Per-capita emissions from generation/consumption will grow 10% in , and 33% in Challenges and opportunities: & Opportunities Diversify the energy matrix with renewable energy RE(wind, solar, geothermal, etc.) Promote energy efficiency-- EE(muncipal services, housing) Land use/transport planning-- Modernization of urban transport Maximize mitigation-adaptation synergies and co-benefits (EE reduces pressure on hydroelectric sources and increases the adaptive capacity to changes in weather)

6 Bank s Response/ Lessons Learned SECCI -- Sustainable Energy and climate Change Initiative Established in 2007 to mainstream CC in Bank operations SECCI Funds --IDB-OC Fund and IDB- Multi-donor Fund US$53 million allocated since 2007 (grants) Ninth General Capital Increase(GCI-9) Commitment to global environmental sustainability and adaptation/mitigation to climate change, while ensuring that energy requirements for development are met. Adaptation to CC SECCI Technical Assistance

7 Facilitates Access to International Sources of Climate Finance Funds under the UNFCCC (GEF). Kyoto Protocol (Clean Development Mechanism CDM), facilitating preparation of PDD and project validation. New mechanisms: CDM s Program of Activities, Nationally Appropriate Mitigation Actions (NAMAs) and voluntary markets. Assist countries access the Climate Investment Funds (CIF), including the Clean Technology Fund (CTF), and the Pilot Program for Climate Resilience (PPCR) under the Strategic Climate Fund (SCF) Member of the TSU assisting the TC of UNFCCC in the design of the Green Climate Fund (GCF) Canalization of Bank and Multi-donor funds under the Bank s new Sustainable Cities Initiative.

8 New Climate Change Strategy Areas of Intervention Mitigation A. Knowledge development B. Institutional Strengthening/ Capacity Building Adaptation C. Instruments to mainstream CC in Bank operations D. Expand Sector Lending and Technical Assistance E. Scaling-up Investments, addressing financial gaps and leveraging private sector

9 A. Knowledge Development Studies on economics of climate change, social dimensions and social vulnerability. Tools and instruments to assess GHG impacts and climate risk: GHG Emissions inventories CC vulnerability and risk assessments Risk mitigation strategies Networks, partnerships, platforms.

10 B. Institutional Strengthening/ Capacity Building National and Sub-national Climate Change Action Plans Strengthen institutional capacity Support national and local funding institutions, commercial banks and financial intermediaries Institutional/financial schemes to address climate risk and vulnerability to catastrophic events (Contingent Credit Facilities) Strengthen civil society participation and ownership of climate change- related decision making

11 C. Instruments to mainstream CC in Bank operations Promote sector-specific instruments based on currently available technological options and management practices Technical notes containing orientation and best practices Screen projects in support of energy efficiency opportunities early in the project cycle Consistency with existing Bank environmental and social safeguards Develop reporting mechanisms to measure climate performance of Bank s own investments and operations

12 D. Expand Sector Lending and Technical Assistance Water resource management and sanitation Sustainable energy Sustainable urban transport Integrated urban development and climate resilience Disaster risk management NCAR: Schematics of Olmos WEAP area

13 E. Scaling-up Investments, addressing financial gaps and leveraging private sector Scale-up low carbon and climate-resilient investments (loans, grants, guarantees, investment grants, carbon finance and green procurement. Enhance the use of private sector instruments (loan guarantees, risk-sharing mechanisms, etc.) Maximize the use of international resources (CIF, GEF, Adaptation Fund, Kyoto Protocol and new UNFCCC mechanisms emanating from COP16. Use of new funding mechanisms

14 EMERGING AND SUSTAINABLE CITIES PLATFORM

15 Sustainable Cities Initiative

16 SUSTAINABLE CITIES The vision of a sustainable city adopted in the present Platform is one of a place that offers a high quality of life for its inhabitants, minimizes its environmental impact and has a local government with the fiscal and administrative capacity to sustain its economic growth and efficiently manage its urban functions.

17 LAC REGION OF CITIES Most urbanized developing region on the planet: 75% live in urban areas (460 million) 4 of the 20 cities in the world with more than 10 million inhabitants 550 cities with between 100,000 and 2 million inhabitants Cities centers of economic activity 55% of the region s Gross Domestic Product (GDP) 25% of the regional GDP in 21 metropolitan economies

18 1. EMERGING SUSTAINABILITY CITIES Anticipatory Approach / Opportunities Population 1940/ BOGOTA 1. Take advantage of economies of scale and control the costs of agglomeration. 2. Produce infrastructure in the coming decades produce it in a sustainable way. 3. Prevent and avoid situations that are difficult and costly to correct. 4. More efficient/ sustainable use of resources. LIMA TRUJILLO BUCARAMANGA

19 LA PLATAFORMA THE PLATFORM/ DIMENSIONES DIMENSIONS ENVIRONMENTAL SUSTAINABILITY/ CLIMATE CHANGE QUALITY OF LIFE COMPREHENSIVE AND SUSTAINABLE URBAN DEVELOPMENT FISCAL SUSTAINABILITY AND GOVERNABILITY CONTROL AIR/WATER POLLUTION REDUCE, REUSE, AND RECYCLE INCREASE ENERGY EFFICIENCY REDUCES ITS VULNERABILITY TO NATURAL DISASTERS AND ADAPTS TO CLIMATE CHANGE PLANNING GROWTH REDUCE INEQUALITY IMPROVE ENVIRONMENT REDUCE TRAFFIC IMPROVE PUBLIC SAFETY PROMOTE COMPETITIVENESS /ECONOMIC DEVELOPMENT MODERNIZE FISCAL AND FINANCIAL MANAGEMENT ORGANIZE PUBLIC UTILITIES AND SERVICES INCENTIVIZE MANAGEMENT BY RESULTS PROMOTE PARTICIPATION

20 Environmental Sustainability and Climate Change What do undertand by an environmentally sustainable and resilient city? Itisa citythat: Manages its environment and controls its solid waste and air, and water emisions Protects natural resources important for the sustainability of a city (soil, water and forests) through adequate urban planning instruments. Applied Planning Legislation (w/ecological Zoning and other protections) Waste management Collects and disposes adequately sold waste; Promotes Recycling; Captures and uses methane gas in landfills. Collects and treats runoff water. % of waste recycled/total collected Methane gas captured (ton. CO2) Coverage of waste collected (%) Wastewater Network coverage Treatment of runoffs (%) Air quality Ensures compliance with air quality standards Air quality index Mitigates Greenhouse Gases Effects Transportation Promotes public transport systems, uses transportation management practices and the use of alternative fuels in public and private vehicle fleets % of CO2 pre capita % of trips using public transport % Use of alternative energy sources in the vehicle fleet Industry Promotes technological improvements, the use of alternative sources of energy, and energy efficiency in industrial production. % of CO2 emissions in industry Energy Use Promotes use of renewable energy and improve energy efficiency in public and private activities and facilities Production/use of renewable energy (kwh) Is Resilient to Natural Disasters and adpats to climate change Adapts to changes in hydrological systems (melting glaciers, water shortages due to drought, etc.). Net water balance (local and external sources) Reducing the potential for contaminating water sources (surface and groundwater) Efficient (urban uses) and water saving Has contingency plans and defenses against floods, power outages and infrastructure disruptions. Existence of Risk Maps. Risk Management and Adaptation measures for urban infrastructure

21 METHODOLOGY TRUJILLO: INDICATORS AND MEASUREMENTS APPLICATION: TRUJILLO, PERU ENVIRONMENTAL SUSTAINABILITY/ CLIMATE CHANGE COMPREHENSIVE AND SUSTAINABLE URBAN DEVELOPMENT FISCAL SUSTAINABILITY AND GOVERNABILITY GAP NEEDS IMPROVEMENT SUSTAINABLE LAND WATER ENERGY AIR NOISE GREENHOUSE GASES WASTE SANITATION CC & DRM PUBLIC HEALTH PLANNING HOUSING LAND USE URBAN INEQUALITY MODE OF TRANSPORTATION MOBILITY POLLUTION CRIME PERCEPTION EFFECTIVENESS POLICE MANAGEMENT PARTICIPATION PRODUCTIVITY EMPLOYMENT EDUCATION INNOVATION PARTICIPATIVE PLANNING TRANSPARENCY FINANCEAND ADMINISTRATION REVENUE DEBT MANAGEMENT BY RESULTS MONITORING OF MANAGEMENT MODERNIZATION OF THE ADMINISTRATION

22 APPLICATION: TRUJILLO, PERU METHODOLOGY Stage I ENVIRONMENTAL SUSTAINABILITY/ CLIMATE CHANGE COMPREHENSIVE AND SUSTAINABLE URBAN DEVELOPMENT FISCAL SUSTAINABILITY AND GOVERNABILITY A. IDENTIFY/MEASURE B. PRIORITIZE 1.PRIORITY FOR THE CITY 2. AUTONOMY AND JURISDICTION 3. ENVIRONMENTAL IMPACT C. ACTION PLAN WASTE SANITATION LACK OF MEASUREMENTS MOBILITY SECURITY REVENUE MONITORING OF MANAGEMENT

23 METHODOLOGY APPLICATION: TRUJILLO, PERU PLAN OF ACTION AND DEVELOPMENT ENVIRONMENTAL SUSTAINABILITY/ CLIMATE CHANGE COMPREHENSIVE AND SUSTAINABLE URBAN DEVELOPMENT FISCAL SUSTAINABILITY AND GOVERNABILITY ACTION PLAN WASTE SANITATION INFORMATION MODE OF TRANSPORTATION MOBILITY SECURITY NONPOSITIVE BASE MONITORING OF MANAGEMENT 1. GREATER DEPTH/ SOLUTIONS US $600,000 WASTE MOBILITY SECURITY NONPOSITIVE BASE 2. CC ASSESSMENTS US $200,000 INFORMATION 3. MONITORING AND EVALUATION US $100,000 MONITORING OF MANAGEMENT **CC Assessments: GHG Inventory & Vulnerability Map**

24 RESULTS OF ACTION PLAN ENVIRONMENTAL SUSTAINABILITY/ CLIMATE CHANGE TRUJILLO, PERU COMPREHENSIVE AND SUSTAINABLE URBAN DEVELOPMENT FISCAL SUSTAINABILITY AND GOVERNABILITY STRATEGY Climate Change 1st stage focus on GHG emission baseline & minitoring. 2nd stage: vulnerability reduction Efficient, clean and safe mobility Income and adequate government mechanisms STRATEGY Integrated System and Culture of Appropriate Solid Waste Management Safe city STRATEGY Modernized aqueduct and culture of appropriate water use

25 RESULTS GREATER DEPTH/ SOLUTIONS DIFFUSION AND MONITORING INTERNAL RESULTS ACTION PLANS DEVELOPED CRITICAL DIAGNOSES EXAMINED IN GREATER DEPTH SOLUTIONS IN PRIORITY AREAS IDENTIFIED IDB CITIES NETWORK INDEPENDENT MONITORING SYSTEM EXTERNAL REVIEW COMMITTEE PLATFORM EVALUATION PHASE III FINANCING PLAN INVESTMENT PROJECTS PREPARED 4 CITIES (COMPLETE CYCLE)

26 Lessonslearned In order to increase the resilience to climate and promote low carbon growth, cities need to mainstream climate change and disaster risk management into urban development planning and climate change action plans that incorporate: Vulnerability assessments (natural hazards and extreme weather events), including GHG emissions inventories/cost-effectiveness of mitigation Adequate land use planning(with climate resilience focus) Integrated water resources management Disaster risk management Financing and risk transfer mechanisms Promote green housing and EE in municipal services Sustainable urban transport strategies Maximize complementarities between mitigation and adaptation measures through eco-efficiency measures * Source: Developing Eco-efficient and Sustainable Urban Infrastructure in Asia and Latin America, ESCAP, ECLAC, UDL

27 Lessonslearned Key agenda items for support by MDB s: Strengthen the knowledge base and analytical capacities Support adequate engagement of all relevant stakeholders (participatory process) Provide necessary planning and management tools (Suport the development of Action Plans (from problem identification and priorization, to feasibility studies and actions) Mobilize the necessary funding schemes, combining fiscal resources, private sector investment, carbon finance, MDBs and other international funding sources