United Nations Consultancy Report - Global Policy Challenges

2017

UNITED NATIONS CONSULTANCY REPORT Reducing the Environmental Impact of Cities: Songdo IBD, South Korea

670049493_POCM001_Assignment 2_2017-2018

Contents Executive Summary ........................................................................................................................... 2 Introduction ...................................................................................................................................... 3 What are Smart Cities? .................................................................................................................. 3 The Internet of Things ................................................................................................................... 3 Why make Cities ‘Smart’? .............................................................................................................. 3 How are Smart Cities Governed? ................................................................................................... 4 Report Outline ............................................................................................................................... 4 Case Analysis: Songdo International Business District ........................................................................ 5 The Geography of Songdo.............................................................................................................. 5 Land Reclamation .......................................................................................................................... 5 Implementation of Technology to Reduce Environmental Impact .................................................. 6 Green Spaces ................................................................................................................................. 7 Water Use ..................................................................................................................................... 7 Energy Use .................................................................................................................................... 7 Songdo as an Aerotropolis ............................................................................................................. 8 Key Messages ................................................................................................................................ 8 Policy Recommendations ................................................................................................................ 10 References ...................................................................................................................................... 13

Figures Figure 1. Systems of a Smart City [3] .................................................................................................. 3 Figure 2.The extent of land reclamation to create Songdo ................................................................. 5 Figure 3. The extent of biodiversity loss in the South Korean mudflats between 1997 and 2014 [51] 10

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Does the Governance of Smart Cities Enable them to Contribute Effectively toward the Achievement of SDG 11?

Executive Summary

Sustainable Development Goal 11; to make cities and human settlements inclusive, safe, resilient and sustainable is set against a backdrop of exponential human population growth and climate change.

Cities all over the world are striving to become smarter; to employ networks for the benefits of their inhabitants and the environment. The human population is becoming increasingly urban and this is stretching city resources and impacting on quality of life. The internet has the potential to make services more efficient and transport, power and water supply more environmentally friendly through the employment of digital networks. The Far East is a hot bed of development and Songdo, Incheon, South Korea is seen internationally as an example to other countries of a city built from the ground up to be ‘smart’. The challenges of governance to the following themes are considered: land reclamation, implementation of technology to reduce environmental impact, green spaces, water use, energy use and Songdo as an Aerotropolis. These themes are discussed in the light of recent research to formulate policy recommendations of relevance to other cities around the world. These policy recommendations relate to how biodiversity can be considered during planning of cities and city level policies which can assist with pushing towards greater consideration of the environment in cities.

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Introduction What are Smart Cities?

Cities all over the world are attempting to become ‘Smart Cities’ [1]. Forerunners include San Diego, San Francisco, Ottawa, Amsterdam and Bangalore [2]. It is a place where networks are made more flexible, efficient and sustainable and technologies are implemented to make the city’s operations more beneficial to its inhabitants [3].

technology can reduce waste and reduce the environmental footprint of its residents, through the reduction in the need to travel and through increasing efficiency of services [8].

Figure 1. Systems of a Smart City [3]

“A smart city is an ultra-modern urban area that addresses the needs of businesses, institutions, and especially citizens. The aim is to improve cities’ management of natural and municipal resources and in turn the quality of life of their citizens” [4].

Smart cities are based on six pillars; social, management, economy, legal, technology and sustainability [5]. The linkage between these elements is the utilization of technology; big data, devices and applications that seamlessly react with one another, to produce alerts, request services, produce utility bills in real time and enable communication, reducing the need for travel and increasing efficiencies [6].

Information Technology is embedded into the city and brings the residents together so as to enhance innovation, knowledge, problemsolving and creativity [2]. These linkages through the Internet of Things (IoT) are shown in Figure 1.

The Internet of Things The IoT has received lots of attention recently and has developed as sensors and equipment have become more power efficient; as have routes for data traffic and high-capacity networks have grown exponentially [7]. Digital technology is powering our communication channels with each other and it is becoming an integral part of all processes and products [7].

The philosophy of Smart Cities is based on the idea that the large scale implementation of

Why make Cities ‘Smart’?

The world’s population is rapidly increasing; numbering nearly 7.6 billion in mid-2017, with 60% of the worlds people living in Asia [9].

Population is expected to reach 8.6 billion in 2030 [9]. The numbers of people living in urban areas is now greater than those living in rural areas; and this pressure is increasing unplanned urban sprawl, and placing increased demand on services [10].

The world has experienced unprecedented urban growth in recent decades and by 2030 it is estimated that 5 billion people will live in urban areas [10]. As humankind continues to urbanise its planet, cities are driven to becoming smarter [11], as a way to develop new ways to deal with quality of life factors that arise with urban living including inclusivity, overpopulation, energy consumption, resource management and protection of the environment [10].

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670049493_POCM001_Assignment 2_2017-2018 Cities currently consume 75% of the world’s resources and generate 80% of greenhouse gases, so could have serious consequences on the environment in the next decades [3].

The relevance of Sustainable Development Goal 11; to make cities and human settlements inclusive, safe, resilient and sustainable [10] is therefore highlighted.

Songdo is such a new Smart City, academic literature is rather limited on the detail of ‘Smart Technology’ implementation in the city [15] and so wider literature has been applied.

Cultural and local aspects on this should be borne in mind by the users of this report.

How are Smart Cities Governed?

The themes through which Smart Cities operate are those driven by local authorities such as transport, entrepreneurship, planning, energy use, waste management, housing and service provision [12] and so are often led on a hierarchical basis. However, development of smart networks is reliant on the implementation of a market based approach to support the management and provision of these themes for the residents and workers of the city [7]. Additionally, best practice models of Smart Cities often employ a ‘Smart City Association’; a collaborative model of governance, comprising both public bodies, private sector companies, charity bodies and residents, to supervise smart initiatives and often achieve better results [13]; a blend of approaches to governance takes root.

Report Outline To examine whether the governance of smart cities enables them to contribute effectively toward the achievement of SDG 11 and can reduce the environmental impact of cities, the next section of this report examines the Songdo International Business District in South Korea; a Smart City built from scratch with these aspirations embedded into the city from the beginning [14]. This section addresses the following environmental issues: Land Reclamation, Implementation of Technology to Reduce Environmental Impact, Green Spaces, Water Use, Energy Use and lastly Songdo as an Aerotropolis. The final section of this report makes policy recommendations for existing cities and the planners of new cities, based on how the early phases of Songdo are working for its residents and environment. As

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670049493_POCM001_Assignment 2_2017-2018

Case Analysis: International District

Songdo Business

The Geography of Songdo The chain of bays of the East China Sea, the Yellow Sea and Bo Hai, are a melting pot of major urban metropolises and symbolise a region of ‘hot’ development [16]. South Korea has evolved from a primarily agricultural nation to one of the world’s leading technological centres, known for manufacturing and electronics excellence in just a few decades [17].

land for starting their own business which became known as the Fisherman’s Living Land Policy [14]. The reality of the effectiveness of this policy is discussed further in Policy Recommendation 8.

The Korean government has since reconsidered its land reclamation policy and at the top level of hierarchical governance, the Ministry of Maritime Affairs successfully ensured that all reclamation projects within Korea were downsized by a half and Songdo was only granted 10.5% of the original area planned for the city [14].

Figure 2.The extent of land reclamation to create Songdo

Songdo is a new urban centre, in Incheon, covering an area of 1500 acres reclaimed from the sea. The area includes 100 buildings, with South Korea’s first green convention centre, the Convesia Convention Centre at its heart.

The city has been planned with two fifths of the site devoted to green space, wetlands and canals; which is a far greater ratio than in many other Asian urban centres [18].

Inbuilt ‘green’ aspects of Songdo include 25km of cycle lanes, vegetated green roofs to reduce storm run-off and an automated waste collection system that negates the need for refuse trucks, making it possible for Songdo to emit a third of the greenhouse gas emissions of a typical similar sized urban centre [19].

Land Reclamation Building the city of Songdo on land reclaimed from the sea (see Figure 2) was a source of conflict between many stakeholders and with sustainability as a central theme to the city, could be seen as somewhat of a contradiction [14]. The waters around this part of Korea are a biodiversity hotspot [20] and supported a thriving fishing industry. Songdo’s fishermen were the first group to protest about the development and in 1995 many were arrested, however, they were granted shares in Songdo as compensation and were each given a plot of

Creation of new land to build Songdo could be attributable to the need to create a new city to ameliorate population density issues against a background of high population growth, however, the original aspiration was for Songdo to be an international city. Land was provided free of charge to foreigners, and corporations were given significant tax breaks

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670049493_POCM001_Assignment 2_2017-2018 through the designation of Songdo as a ‘Free Economic Zone [14]. Nationals, it was expected, would be employees of international companies [14] which was a source of conflict with the local population and demonstrates a lack of embedding inclusivity within the culture of the city. Additionally, it has been shown that a person’s attachment to a place has a strong correlation with how likely they are to protect it [21]. It is arguable that attracting a new population to Songdo without this attachment, are less likely to care for its environment.

Implementation of Technology to Reduce Environmental Impact The core technologies implemented in Songdo were in large part developed in the USA which did not foster local interest in the city. High speed wireless, fixed fibre optic broadband was installed in every home and business with the aim of connecting medical, business and residential systems in an urban setting for the first time [22].

The technologies employed in Songdo include Cisco Smart+Connect which enables the transformation of the way that people interact, live, work and learn [23]. In Songdo, a decision was taken to employ the technology through hierarchical governance [24], but communication is a social interaction and use of the technology to reduce travel is a very personal choice. However, technology has great potential to influence social innovation [25].

Songdo has implemented technology for smart metering throughout the residential district.

The adoption of smart meters have been shown to have a significant effect on the behaviour of occupants who reduce their heating temperatures and therefore there is a marked reduction in the amounts of energy consumed [26]. Mogles et al. [26] found that engagement of households with smart metering is high and in their study, 82% of households found them useful. Therefore, in this respect Songdo is likely to reduce the environmental footprint of its residents

through implementation of the technology at the hierarchical level.

Energy reduction through intelligent transport services can be assimilated in the short term through apps that assist with finding car parking spaces, encourage car sharing and display real time communication with the traveller about weather, roadworks and congestion [27]. This encourages optimisation of routes and reduces unnecessarily long journey times [8]. Intelligent transport systems in smart cities aim to improve people’s experience of travel and therefore quality of life [8]. Chen et al, [8] advocate apps which link all available forms of transport and a payment platform such as that provided in Helsinki, to be ideal in promoting a modal shift away from private car use. This will be particularly pertinent to Songdo, as 300,000 workers and students are expected to commute to Songdo on completion [18]. The hierarchical governance structure has collaborated with the market in this respect. A similar example is IBM working closely with the Australian government to examine commuting patterns with the aim of making infrastructure smarter [23].

There is a strong link between salary, commuting time and housing [28]. The implementation of the technology in Songdo, and close distance between workplaces and residential areas [18] are intended to reduce commuting time, which is better for the environment through reducing vehicle use , but also good for the health of its residents, as has been shown historically [29]. Top down hierarchical governance is being used to influence commuting patterns, thereby reducing environmental impact.

Technology is moving apace and smart cities are aspiring to employ sensors on massive scales [30]. Songdo has implemented RFID tags on vehicles which link to sensors on the roads and enable traffic flow to be monitored and connect with smart street lights which can be adjusted according to pedestrian traffic levels

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670049493_POCM001_Assignment 2_2017-2018 [30]. This will reduce the environmental impact of the city through reductions in journey times and more efficient use of energy for lighting.

Green Spaces After the 2008 financial crisis, and Songdo had failed to meet its targets in recruiting international business, the President of the Republic of Korea launched a vision of ‘Green Growth’, to focus on creating greater links between economic growth and environmental protection [14]. Cities were to be at the centre of this and Songdo was signalled to be a flagship model eco-city [14]; an example of more top down hierarchical governance shaping the city. The master plan of Songdo granted two fifths of the site to be dedicated to green space parks, wetlands and canals [18].

Green spaces are important for providing climate regulation, and opportunities for recreation [31], both key themes of the SDGs. The main green area of Songdo is Central Park and a feature of this is an artificial canal using seawater as its primary water source [32].

Artificial wetland is likely to have less diversity than natural or even restored wetland [33], however, species richness has been shown to have little association with well-being [34], and so this loss may have little impact on Songdo’s new residents. However, a clear link between access to green space and self-rated wellbeing has been shown [35], [36]. The aspirations of the hierarchical governance have a strong chance of coming to fruition.

Taken together, technology which affords a reduction in vehicle usage and allowing space for green areas, which have been shown to increase air quality [37], Songdo is likely to be a place which affords its residents and workers several health benefits. It has been shown in the far east that wealthier cities have larger areas of green space [29] however, cities with higher densities have less green space [31] and therefore, the planners and governors of Songdo have an important role to play in achieving this balance going forward.

Water Use The literature is very vague regarding smart applications to water use in Songdo and so wider research is focused on here. Water is one of the most important resources in urban areas [30] and water supply infrastructure forms part of the physical infrastructure of the Smart city [3]. Water consumption and usage has traditionally been a mechanical process, however smart metering, as long as they are robust, cheap, easy to maintain and produce reliable billing, allow for enhanced understanding by both consumers, system operators and policy makers [30].

However, the actual delivery systems are usually linear and non-intelligent. Through monitoring pressure, vibration and sound continuously through the system, advanced sensing can be applied to the system to monitor leaks, blockages and water quality [30]. By increasing the efficiency of understanding when and where incidents occur water waste can be reduced, thereby reducing the environmental impact of the city.

The application of sound sensors is limited due to cost, however, data from smart sensors can be mined to predict demand and seasonal changes in water use [38]. A better understanding of users’ behaviour towards water is needed to promote water saving action, which can be achieved through the use of smart meters [38].

Achievement of environmental aspirations here are linked closely to market governance.

Energy Use Again, research of implementation of smart energy in Songdo is limited and so wider research is used.

There is a paradox evident in smart cities in that the use of sensors and technology is likely to increase the amount of energy used; in direct competition with the endeavour to become more sustainable [39]. If ICT systems continue to grow at the current rate, it will endanger international targets for CO2 emissions reductions, as they are now

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670049493_POCM001_Assignment 2_2017-2018 responsible for the same amount of emissions as air travel [40]. Hierarchical governance objectives are likely to compete with market governance goals.

A problem created through the employment of sensors throughout a Smart City is the reliance on batteries and the need to replace and recharge them [30]. To counter this, the harvesting of power from alternative means is being heavily researched [41]. Methods of energy harvesting in the context of cities can include small scale wind turbines, Radio Frequency energy can be converted into DC voltage, energy can be scavenged from electric fields around power lines and kinetic energy can be harvested from vibrations and excess light and heat can be sourced from within residential and office buildings [30]. However, Songdo has been built ‘Smart’ from the ground up with an integrated approach to energy efficiency which should ameliorate many of these effects as recommended by Poggi et al [42]. The relationship between hierarchical and market governance is likely to be successful for benefitting the environment, however, city administrators could encourage more of these innovations through the market.

Smart power is generated in Songdo by natural gas which is distributed through a smart grid [30]. This is an improvement to the conventional system where energy flows to customers in one direction. In times of low demand, energy is returned to the power plant, stored and available for use later [30].

Smart grids can also self- monitor through sensors distributed throughout the network, which, in a similar way to the water distribution system can be used to determine where problems are occurring more quickly and efficiently thereby reducing energy loss [43]. Market governance is likely to benefit the environment in this way.

Songdo as an Aerotropolis Songdo has done well in implementing energy efficient measures for urban living [19] however, the city is linked directly to Incheon

airport with a bridge and was built as an urban centre around it [18]. In the region of the world where Songdo is situated, cities have become national gateways to the world and cities are frequently built around airports [44].

The contribution of aviation to global carbon dioxide is projected to triple by 2050 and increasing use of policy interventions to mitigate this in the future are highly likely [45].

The lost opportunity for Songdo, through the implementation of its tele-presence facilities is that it could mitigate the need for air travel and thereby further offset the environmental costs of the technology. Therefore, the hierarchical governance model is in conflict here.

Magnifying this effect, Songdo is presented as a space where wireless context-aware, computer driven information and communication technologies permeate through all aspects of life, which are arguably most attractive to high flying, international businessmen [46]. This relates to the earlier point made in the report that people without local attachment to their environment are less likely to care for it [47]. This could be deleterious to the aspirations of the hierarchical governance.

Key Messages Ostensibly, Songdo is not necessarily built on the most environmentally sound foundations [48] [49], however, setting that aside, the example of this city demonstrates how given the right policies and by implementing technology for the good of its citizens, smart cities can contribute to more sustainable living [6]. However, the whole life cycle of the city should be considered from the planning process onwards and the success of these projects relies on them bringing multiple stakeholders along and having clear goals and governance in place for finance and legislation [50]. Difficulties in public-private partnership working negotiated in Korea were sometimes due to global issues, such as the financial situation of 2008 as well as inflexibilities in national legislation, which is not unexpected in

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670049493_POCM001_Assignment 2_2017-2018 a radical and new project [24], and could have been encountered in similar projects elsewhere. The top down approach to governance has however led to many contradictions [14] and the overall environmental benefits of Songdo may be a challenge to achieve.

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670049493_POCM001_Assignment 2_2017-2018 [36]. Planners should therefore build in as high a percentage of greenspace as possible in new urban developments and maintain as much as possible in existing urban areas in support of SDG 11.

Policy Recommendations 1. Land Reclamation projects should be limited in number and not take place in internationally recognised, or regionally recognised areas of high biodiversity value [49]. The effects in Korean mudflats are explained in Figure 3.

Figure 3. The extent of biodiversity loss in the South Korean mudflats between 1997 and 2014 [51]

4. Technological solutions should be implemented which enable communication, facilitate access to services and improve quality of life for all groups of residents.

These have been implemented in Songdo through a series of public-private partnerships with an aim from the top leadership of the country to create a green city [15]. This is an ambition to be commended, however, the emphasis on attracting business and students to Songdo [14] means that a diverse population is unlikely [53] and therefore inclusivity in this case may be less of an issue, however should not be discounted in this or other smart cities.

All new urban areas should consider the biodiversity and cultural value of the land they plan to expand, or develop on to and seek measures to mitigate adverse effects on this. Integration of the price of ecosystem losses should be accounted for in the projects estimated costs to enable excessive reclamation and environmental degradation to be regulated [52]. The precautionary principle should be applied in reclamation projects as the effects are largely irreversible [48].

5. Market governance should be applied to the implementation of ‘Smart systems’ to balance cost, efficiency and their potential for reducing environmental impact balanced against the amount of energy they will consume [30].

6. Smart metering should be implemented widely and as expediently as possible to enable households and business to monitor their own energy use.

Although the reduction in energy use by households with smart meters is significant , it is very small, [26] however, the larger the number of households utilising the technology, the greater its impact will be. There is the potential, over a large scale and time for very significant reductions to be made [38].

2. Utilisation of existing ecological assets such as wetlands and remnant forests should be considered by planners as recreating these rarely provides comparable levels of ecosystem services [31].

3. The amount of green space in Songdo is to be commended [37]. Greenspace has been found to be important for mental wellbeing, stress relief and social cohesion

7. Cities whether Smart or not, should produce a baseline Sustainable Energy

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670049493_POCM001_Assignment 2_2017-2018 Action Plan (SEAP) and work towards stricter targets for Energy Consumption [54]. SEAP’s are a form of hierarchical governance allowing a city to define the concrete and actual measures it will put in place for the benefit of the environment and can monitor the achievement of targets, agree timeframes and delegate responsibilities through the utilisation of the plan [54]. This would also allow for greater understanding of smart cities and their potential for sustainability.

selective in the choice of residents attracted to the city [53].

Technology in Smart cities does not in itself increase inclusivity or add to social cohesion [58]. Therefore, Smart city strategies should include projects to develop citizens’ IT skills, raise awareness of environmental issues and a wide range of social groups should be included in the city [59].

It is arguable as to how successful the case of the ‘Fisherman’s Living Land Policy’ was for this group in Songdo, whose livelihood was adversely affected by the development. The areas of land awarded through the policy to the fishermen are incongruous to the city and it is difficult to see how this group has been fully integrated into the new community which focusses on business [19].

8. When attracting businesses to Smart Cities, Businesses should be encouraged to produce Corporate Social Responsibility plans. These should be measurable and progress against them monitored.

Globalised business is no longer just about profit with businesses increasingly being held accountable for their environmental and social responsibilities [55], [56].

9. Public transportation should be made an attractive option to support enhanced quality of life and reduce emissions from personal car use.

Smart card implementation can assist with this through making transport easily accessible and users enjoy using the technology [57].

Energy savings are achieved when users change their behaviour and therefore travel less or adopt more environmentally sound means of transport [8].

10. Smart Cities should develop inclusive policies which strive to be inclusive to all sectors of society; especially those in target groups of the SDGs’ namely women, children, the less well-off and the elderly.

Songdo’s hospital was not to be inclusive, as its primary purpose was to treat the international residents and local’s health insurance would not cover them to be treated there [14].

11. Citizens should be encouraged to actively participate in measuring elements of their environment for themselves [25] utilising the technology available through smart cities.

This allows residents to ‘act locally, but think globally’ in support of LA21 [60], through their own community to share data and be part of the global effort in tackling sustainability issues [25].

12. The opportunity of the possibility for air travel to be reduced by Smart Cities should not be lost and reductions could be incentivised to both the businesses reducing their air travel and incentives to air lines for improving the sustainability of their industry. Business can achieve significant savings through reducing air travel [45]. Hierarchical policies can assist in this. In the EU, small increases in air ticket prices reduced business travel due to the way which businesses budget [45].

It has been argued that the hierarchical governance of Songdo has been highly

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670049493_POCM001_Assignment 2_2017-2018 13. Smart cities should continue to develop and share best practice through Smart City networks such as the Smart Cities Council.

Smart Cities are generating huge amounts of data which should be shared and made available to all [61]. The reuse of public sector information can have significant impacts on society informing how to best shape the environment and services [62].

The RAMSAR convention was applied to Korean National law in a very specific way which enabled the land reclamation to take place in an area of international biodiversity importance [48].

Nations should recognise the spirit of international conventions that they are partisan to and should implement national legislation in accordance with them to uphold these international agreements [49].

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