Green Growth in Cities : Key Findings from the OECD Synthesis Report

Green growth in Cities: Key findings from the OECD synthesis report Tadashi Matsumoto, Ph.D Senior Policy Analyst, Regional Policy for Sustainable Development, OECD International Seminar on Sustainable Cities in Asia, 22 January 2013 – Kuala Lumpur, Malaysia

OECD urban policy expertise

34 OECD Member Countries

“Enhanced engagement” with Russia, Brazil, China, India, Indonesia and South Africa Regional initiatives covering Europe, the Caucasus and Central Asia; Asia; Latin America; the Middle East and North Africa (MENA); and the Sahel and West Africa Club

OECD urban policy expertise Reviews of metro-regions and national urban policy to identify opportunities to address competitiveness, sustainability and governance challenges

Horizontal analyses targeting, for example, urban competitiveness, climate change, port cities and green growth in cities Policy dialogue on urban issues to facilitate knowledge exchange and best practices to inform policymakers’ agendas (Roundtable)

Statistical indicators on urban and metro-regions – the fundamental tools for enhancing cross-country comparison and improving policy evaluation

34 metropolitan Thematic OECD database Roundtable work on reviews of metropolitan Mayors in and 20 •Urban Trends and tailored countries: Ministers regions and OECD Governance studies assessing regional database •Global port cities how a

given metro-area can Unique global forum •Green Growth in Cities boost competitiveness for mayors and tools The fundamental •Compact Cities ministers to exchange for enhancing cross•Urban Trends and practices best urban policy New series onPolicies

country comparability in OECD Countries national urban and improving analysis •Cities and Climate Change 75 mayors and 47 policy analysing and evaluation oftheand •Cities, Climate Change ministers have implicit and explicit policies Multi-level Governance participated in four policies that impact •Competitive Cities the in Roundtables sincein2007 urban development Global Economy a country (completed: Poland, Korea, Chile; potential: China, Mexico)

OECD Metropolitan Database: a tool for policy makers Interactive maps and data on metro areas http://measuringurban.oecd.org/

Green Growth in Cities Key findings from OECD Synthesis report

Green Cities Programme • Conceptual framework (2011) City case studies

Paris Chicago Kitakyushu Stockholm

National-level case studies

Korea (2011) (2011) (2011-12) China (2012) (2012) (2012)

• Synthesis report: Green Growth in Cities Launch: 23 May 2013 in Stockholm

Green Growth in Cities: What is green growth in cities?

Fostering economic growth and development through urban activities that reduce negative environmental externalities and the impact on natural resources and environmental services.

Green urban activities that can be leveraged to reduce environmental impact (land-use planning, transport, buildings, energy, waste and water)

Growth GDP growth primarily, but also urban quality of life

Green Growth in Cities: Why are cities important?

Cities play an outsize role in national growth and key environmental impacts

Cities are key spenders on infrastructure relevant to green growth

4.00% Fukuoka 3.00%

Osaka

Stockholm 2.00% Rome

Pollution emission growth rate (2001-2030)

Urban policies can lower the abatement costs of national environmental policy targets

Change in attractiveness and pollution emissions across OECD metro-regions (2001-2030)

Tokyo

Seoul

New York Chicago Los Angeles -140

-120

-100

-80

-60

Dallas Atlanta Paris 1.00% Zurich Istanbul Baltimore Detroit Helsinki Busan 0.00% Hanburg -40 -20 0 20 40 Budapest Melbourne Ankara -1.00% Aichi Lyon NaplesAuckland Lille -2.00% London -3.00%

Mexico city

60

80

Guadalajara Madrid

Monterrey

-4.00%

Absolute change in attractiveness

Green Growth in Cities: Which policies to pursue?

When the goal is to increase:

Green growth policies to prioritise are:

Jobs

•Energy-efficiency building retrofits •Public transport •Waste management

Urban attractiveness

•Increase the efficiency of the transport system •Sustainable public service delivery •Climate change adaptation

Regional production of green products/services

•Identifying potential for green product and service specialisation •Fostering green technology R&D and innovation activities

Urban land values

•Urban redevelopment, including eco-districts •Reducing incentives for greenfield development

Green Growth in Cities: Making it happen • National price signals and standards are crucial • Align local and national green growth objectives and harmonise monitoring tools • Increase inter-municipal co-operation • Reform urban revenue structures to align with green growth goals • Mobilise private finance for green infrastructure investments

Financing green cities: the Chicago Proposal

Ensure policy alignment across levels of government

Make existing revenue sources greener

Tap new sources of finance

CASE STUDY: KITAKYUSHU, JAPAN

Case study: Kitakyushu Facts and Trends Environmental Performance • Air and water pollution mostly declined, while economy grew • Remaining challenge: greenhouse gas emissions

Parts per million

GDP (trillion JPY) 4.5

0.08

4

0.07 0.06 0.05 0.04

Sulfur Dioxide (SO2）

3.5

Nitrogen Dioxide (NO2） Suspended Particle Matter (SPM）

3

Photochemical Oxidant (Ox） Kitakyushu GDP

2.5 2

0.03 1.5 0.02 0.01 0 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

1 0.5 0

Case study: Kitakyushu Facts and Trends Socio-Economic Trends • Sluggish growth rates and population decline

GDP per capita (million JPY)

Population (million)

4.3

1.02

4.2

1.02

4.1

1.01

4

1.01

3.9 1.00 3.8

• Transition towards service based economy

1.00 3.7 0.99 3.6 0.99

3.5

• Strong specialisation in manufacturing

Kitakyushu GDP per capita

3.4

Japan GDP per capita

3.3

0.98 0.98

Population 3.2

0.97 1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Case study: Kitakyushu Policy recommendations Sector/Activity RECOMMENDATIONS Land use and transportation

More fully integrate land-use and transport planning to revive urban centres and reduce urban sprawl

Waste recycling

Foster high value added recycling and maximise recycling synergies between industries and residential areas

Renewable and smart energy

Scale up the Higashida smart-grid experiment and make use of national feed-in tariffs for renewable energy supply

Energy efficiency

Further improve industrial energy efficiency and exploit energy savings in commercial and residential buildings

Green goods and services

Improve incentives for locally produced green goods and services to reach domestic and international markets

Green innovation

Identify and map green innovation assets and actors and integrate them in a coherent regional innovation strategy

R&D and SMEs

Co-ordinate R&D with businesses and support innovative SMEs and their role in a regional innovation system

Case study: Kitakyushu Governance recommendations

Level

RECOMMENDATIONS

Citizens

Build on the strong legacy of citizen participation to empower civil society to help drive green growth

City

Increase horizontal co-ordination in the local administration to better align economic and environmental policy goals

Region

Strengthen regional co-operation to better exploit local and regional green growth assets, such as for green innovation

National

Reduce the city’s dependency on central government policies Pursue opportunities from decentralisation and deregulation

International

Intensify international exposure and city collaboration, in addition to reinforcing existing relationships in Asia

Green Growth in Fast-Growing Asian cities – a new project proposal

OECD Strategy on Development (May 2012, Paris) • Incorporating inclusive green growth into development policies – Clarify how the green growth concept as well as the recommendations of the OECD Green Growth Strategy could be made more relevant to a range of developing country contexts

• Specific attention will be paid to the issues of: – multilevel governance, – greening cities and integrating sustainable development into urban and regional planning, – greening infrastructure investment.

Three elements of the project

1. Concept paper (Q4 2012- Q2 2013) – Provide analytical framework in assessing green growth policies in fast-growing Asian cities

2. Case study (2013-14) – Assess the impact of urban green growth policies on economic performance and environmental quality

3. International conferences (2013-14) – Manila, the Philippines (4-5 February, 2013) – Kitakyushu, Japan (18-20 October, 2013)

Concept paper – unique characteristics of Asian cities • Rapid urban expansion and motorisation – motor vehicles in Asia will increase by more than four times in the next 20 years

• Informal settlements – Asia remains host to 500 million slum dwellers (over half of the world’s slum population)

Concept paper – unique characteristics of Asian cities • Vulnerable urban infrastructure – 304 million people live in cities located in the areas of less than 10 metres above sea level

• Rapid increase in greenhouse gas emissions and environmental degradation

Concept paper – key policy issues • • • • • •

Stronger and greener production Local quality of life and human health Urban resilience Affordability and mobility Multi-level policy coherence Financing urban green growth

The case study • 4-6 Asian cities will be selected based on: – population size – speed of growth – economic structure – personal income levels, etc.

• Individual report as the deliverable • The first study expected to start in mid-2013

… thank you for expressing interest!

THANK YOU Further contact: Tadashi.matsumoto@oecd.org