Side-event Low-carbon urbanisation and industrialisation The role of Chinese cities

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1 Side-event Low-carbon urbanisation and industrialisation The role of Chinese cities Paul SIMONS Deputy Executive Director International Energy Agency Marrakech China Pavillon, 16 November 2016

2 The IEA works around the world to support an accelerated clean energy transition that is enabled by real-world SOLUTIONS supported by ANALYSIS and built on DATA

3 China as an IEA Association country & beyond Sept 2015: opening doors to emerging economies Nov 2015: China became IEA s Association country Chinese Energy Minister attended the IEA Ministerial for the first time IEA Ministers endorsed steps to modernise the IEA Association countries: China, Indonesia and Thailand March 2016: 20 th anniversary of IEA-China relations More engagements and analysis related to China Three-year work programme More personnel exchanges (NEA high-official and secondees), workshops (energy data), visits and meetings Publications: WEO Air quality report (2016), A report on Chinese companies in the sub-saharan power sector (2016), WEO special report on China (2017)

4 EJ Action in cities will be critical, notably in emerging and developing economies 600 Final energy demand in the 4DS Urban Emerging/developing Urban non-oecd Urban Urban OECD OECD Developed economies 100 Non - Urban World Two-thirds of the growth in global energy demand to 2050 comes from cities in emerging and developing economies

5 Locking-in sustainable new urban infrastructure, unlocking existing assets Urban forms can lock-in the energy system of cities in either inefficient or sustainable energy use patterns for decades.

6 Cities are key players in China s energy transition Urban and non-urban CO 2 emissions and emissions reductions by sector in the Chinese 2DS Chinese cities hold 80% of the cost-effective potential to reduce emissions in the Chinese 2DS

7 Energy-Efficient Buildings in the Urban Environment Building Sector Energy Demand by End-Use in China (2014) Floor Area Growth in China to 2050 Energy-efficient building envelopes, through rigorous, low-energy new building construction, will be critical to reducing energy demand in China s buildings.

8 IEA EV deployment scenarios EV stock in the NPS and 2DS 2DS BEV share of EVs in 2040: NPS: 1/3 rd 2DS: >50% Others ASEAN OECD Asia India 67 OECD North America NPS 84 Europe 112 China Horizon 2050 (2DS): 900 million EVs 40% global car stock

9 Systems integration: utilising wastes and local resources in China Technical potentials from selected urban supply sources for electricity and district heat demand in China in 2050 Notes: RTSPV = rooftop solar PV, MSW = municipal solid waste, IEH = industrial excess heat Growing cities and metropolitan areas could rely on local renewable energy supply - with smart grids enabling the transition

10 Local and national actions can make the lowcarbon transition possible National Policies Capacity-building programmes Funding mechanisms Regulatory frameworks alignment Local Policies Integrated Land Use and Transport planning Enforcement of Building Codes Green municipal buildings and transport fleets Business Models Integrated service offerings Energy performance contracting Eco-Choice labelling SUSTAINABLE URBAN ENERGY SOLUTIONS Leveraging all solutions to urban energy sustainability requires strong private and public action both at local and national levels

11 Conclusions Urban areas will shape the global energy future, as they will account for the bulk of energy demand and CO 2 emissions Cities in emerging and developing economies can lead the lowcarbon transition globally while reaping many benefits Re-shaping urban development trends in Asia towards greater sustainability will be strategic to achieve the 2DS Efficient heating & cooling systems, better public transport and electric vehicles will be critical to decarbonise energy demand in cities Acting together with industry, national and local governments can drive innovation through international co-operation