Urbanization: Opportunities and Challenges
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1 Urbanization: Opportunities and Challenges Tianjin Eco-City Cleantech Focus Mark L. Clifford Executive Director, Asia Business Council September 28, 2010
2 The future of Asia lies within its cities About half of the world s most populous cities are located in Asia By 2030, more than half of the world s urban populations will live in Asian cities China has 236 cities with more than 500,000 residents 80% of the future economic growth of the developing world will come from its cities 2
3 Asian economies are rapidly urbanizing Urban Population as % of Total Population Korea Malaysia Taiwan China Indonesia Vietnam India Sources: Country sources, Statistical Yearbook for Asia and the Pacific 2009 (United Nations ESCAP), 3
4 Urbanization presents many challenges Demand for Better Buildings Increasing Electricity Demand and Shortages Water Scarcity and Cleanliness Air Pollution Traffic Congestion 4
5 But also new business opportunities Green Buildings Electricity Management and Energy Efficiency Waste Water Treatment Pollution Control Transportation and Mobility Other Opportunities 5
6 Green Buildings 6
7 Green Buildings Are Key to Asia s Future Green building are the cheapest, quickest way that Asian countries can improve energy efficiency Green buildings cost only slightly more than conventional buildings (typically 0-4%) and often have a more rapid payback than expected Experience will bring costs down and increase efficiency gains 7
8 Buildings emit one third of the world s energy Buildings use 30%-plus of all primary energy in the world Energy use in one ordinary 18-story high rise in Singapore or Hong Kong has greenhouse gas emissions equivalent to 900 cars Efficient buildings enhance energy security and sustainability 8
9 The Zuellig Building to save 15% of energy and 47% of water usage 33-story high rise in Makati City in Manila scheduled for completion in 2011 Energy-saving technologies Daylight dimming system Carbon dioxide sensors in occupied areas Variable speed drives for chilled water pumps Water-saving technologies Selection of efficient fittings and fixtures System to capture rain and condensate water Water-saving surface materials State-of-the-art drainage and irrigation systems 9
10 Electricity Management and Energy Efficiency 10
11 Electricity shortages will affect Asia in the future In developing Asian economies, demand for electricity has been increasing 2.4% annually, more than double the global rate Asian cities are expected to see more serious electricity shortages over the next 25 years 11
12 Korean Smart Grid to reduce 200 million tons of greenhouse gases by 2030 Smart grid technology A smart grid uses digital technology to communicate with facilities and appliances to understand usage patterns, thus delivering energy more efficiently Smart grid market is estimated at about $15-20 billion today, and rising to $120 billion annually by 2030 On Jeju Island, south of Seoul, the Korean government will construct smart grid infrastructure and then connect buildings, transportation systems, and renewable energy sources to the grid The Korean government has teamed up with Samsung, SK Group, and LG Electronics to provide power delivery systems that can save energy 12
13 Functions of Korea s Smart Grid Variable pricing based on demand reduces electricity consumption Smart meters provide guidance to consumers on energy usage Information and communications technologies (ICT) sensors allow utilities to monitor the grid system in order to improve control of the electric distribution grid Image Source: buildaroo.com, 13
14 Waste and Water Treatment 14
15 Asia suffers from low per capita availability of fresh water and high pollution More than 1 billion people in Asia have inadequate access to clean water By 2030, Asia faces a 40% gap between water demand and supply In China, less than 40% of municipal waste water is treated 16 of the world s 20 most polluted cities are in China 15
16 Hitachi s wastewater treatment Hitachi s Plant Technologies Division and two cities in Japan began selling treated sewage water to the waterscarce city of Perth, Australia The treated sewage water was sent to Australia as ballast for shipping instead of sea water, where it was used in industrial processes instead of drinking water Saves energy, reduces waste, and creates a valuable international commodity Image Source: 16
17 Turning waste into cement Taiheiyo s eco-cement Japan s largest cement company burns urban waste such as incinerator ash and sewage sludge during the cement manufacturing process The process removes environment-polluting dioxins and recovers useful metals to create eco-cement Eco-cement has helped to reduce landfills, prevent the depletion of natural mineral resources, and reduce air pollution Calera s green cement Calera combines carbon dioxide with seawater or groundwater brine to make cement. By turning carbon into building materials for pavement, the manufacturing process would be carbon-negative Viable without subsidies or legislation 17
18 Transportation and Mobility 18
19 Asia is facing increasing traffic congestion The number of vehicles in Asia is expected to increase from 150 million in 2000 to 350 million by 2020 In the period , more than half of the world s increase in fuel consumption will come from transportation In the same period, transportrelated carbon dioxide emissions are expected to increase 57%, with developing Asian countries contributing 80% of the increase 19
20 ERP in Singapore Electronic Road Pricing (ERP) charges vehicles for driving into the city center during peak transit hours Implemented in 1998 Road traffic has decreased by 25,000 vehicles per day Average road speed has increased by 20% Image Source: US Department of Transportation, 20
21 Private Involvement in ERP Cisco The internet business solutions group worked with the Seoul government to develop a smart transportation pricing engine that implements "pay as you drive" pricing that reflects real driving distances and vehicles environmental impact rather than flat fees Steria Asia An innovation center in Singapore has produced applications such as the e-trafficscan system, which provides drivers with real-time information about their speeds on major roads ST Electronics The electronic systems house provides a fully automated toll-collection system, improving traffic flow and increasing driver safety 21
22 Other Business Opportunities Education and Training Businesses can develop corporate centers to train employees or set up private universities Other opportunities to engage local universities to design specific programs oriented toward developing employment skills Will increase local worker quality at a lower cost and larger scale than sending people overseas for training Connectivity and Consumer Behavior By 2011, Asia will contain more than half of the world s mobile connections Commercial opportunities for businesses to embed services and applications into a variety of consumer devices like mobile phones, computers, and household appliances so that they can predict and respond to consumer needs Development and Preservation 280 million urban dwellers in East and Southeast Asia live in the slums Businesses can attract workers and consumers to cities where they have operations by financing and developing larger scale metropolitan projects and redeveloping existing neighborhoods to build residential capacity 22
23 Summary The future of Asia lies in its cities Urban growth in Asia creates many problems, but also many business opportunities Opportunities in the areas of green buildings, electricity, water treatment, pollution, and transportation will continue to expand as urban populations increase 23
24 For more information, please see the Asia Business Council s website: 24
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