Sustainable infrastructures - Making Cities...

Sustainable infrastructures -

Making Cities Work

August 2008 Copyright Siemens AG

“Foro Bogotá 2038”

Dr. Andreas MehlhornSiemens AG

Agenda

Sustainable Infrastructures - The Challenge

Insights, Lessons Learned and Theses from Siemens

September 2008 – Dr. Andreas Mehlhorn Copyright Siemens AG

Insights, Lessons Learned and Theses from Siemens “Megacity” & “Sustainable Urban Infrastructure” Studies

Summary and Outlook

City's Vision &value-add to stakeholders

Policies

Sustainable infrastructures are the spine and nervous system of cities that “make them work”

Traffic & Transportation

Water & Wastewater

Energy supply

Healthcare

Safety &Security

Waste Management

Education

Communication

Urban infrastructure decisions are not easy tasks –they require a strategic and programmatic approach

Prioritization: Hype versus important trends and levers

Integrating technological, economical and political

� What are the most important trends influencing cities and what are key infrastructure areas for a successful urban development?

� How to consider all relevant perspectives when deciding about infrastructure solutions? Technical

economical and political perspectives

Consensus and collaboration of public,

private and academic sector

Execution andimplementation

deciding about infrastructure solutions? Technical feasibility, effectiveness / efficiency, ease of implementation / barriers to change

� How to jointly shape the future of a city and the quality of life of its citizens by combining public leadership with private and academic competences?

� What are the best mechanism for executing infrastructure programs, that last and how to overcome barriers to implementation?

Global megatrends imply significant sustainability challenges for city managers

Case for action for urban development

Compe-titiveness

Global Megatrends

1. Urbanization

� 2008: 3.3 bn. people (> 50%)will live in cities

� 2030: 5 bn. people (60% of total population) will live in cities

� Cities are competing globally for best policies and infrastructure solutions to make their urban areas attractive to live and to invest in

EnvironmentQuality

of Life

Governance2. Population Growth / Demography

� Rapid population growth:6.6 bn. (2007) - 9.2 bn. (2050)

� Increase of life expectancy:2007: 7% 2050: 16%

3. Energy demand / Climate Change

� 75% share of cities in globalenergy demand

� Cities responsible for about80% of greenhouse gases

} age 65 and older

…that put pressure on existing urban infrastructures and call for new, sustainable solutions

Energy Healthcare Safety & Security

Water & Wastewater

Affected infrastructure of a city 1)

Growing demandfor health- and elder care

Water-borne diseases

Efficient healthcare systems

Traffic & Transportation

Increasing mobility Traffic jamsIncreasing

energy demand of transport

Mobile care & health

monitoring

Increase of road accidents

Growing demand forsafety and security

Safety of mass transport

Terrorist attack on water supply

Continuity of electricity supply

Medical care in emergencies /

crisis

Increasing need for surveillance

Increasing scarcityof natural resources

Energy cost increase of transport

Sinking ground water by over-

extraction

Cost increaseof energy

generation

Growing need for environmental care

Air pollution through cars

Contaminationof ground water

Need to improve energy

efficiency

Diseases through toxic substances

1) Selection

Sustainable infrastructures are challenging, but feasible: Think different

Agenda

Results, Lessons Learned and Theses from Siemens

Results, Lessons Learned and Theses from Siemens “Megacity” & “Sustainable Urban Infrastructure” Studies

Summary and Outlook

Insights based on “Megacity Challenges” and “Sustainable Urban infrastructure” studies

Infrastructure Know-how from global business in

� Global survey on infrastructure challenges of 25 Megacities

� > 500 interviews and secondary research for selected cities

Thought leadership initiatives on“Urban Infrastructures”

Siemens AG

from global business inthree sectors:

- Industry

- Energy

- Healthcare

research for selected cities

� Research partners: Globe Scan, MRC McLean Hazel

� Detailed analytical approach to assess and optimize most important levers for sustainable infrastructures

� First case study in London; further studies in 6 urban areas by 2010

� Research partner: McKinsey

Research partners

“Megacity Challenges”-study showed high investment needs, with transportation infrastructures as top priority

% of > 500 respondents mentioning

Highest needs for investment over the next 5-10 years

� Overall high investments in all urban infrastructure areas expected

� Transportation perceived to be biggest challenge and top priority to attract investors

� Water and Energy: Awareness / priority ≠ objective situation

“Sustainable Urban Infrastructure”-studies indicate a clear need for quantitative assessments to prioritize and direct policies and investment

Sustainability issuesEnergy, Water, Waste, CO2, …

Infrastructureareas, e.g.� Transport

� Domestic Buildings

� Commercial &

Public Buildings

� Industrial

Critical issue

Sensitive issue

“Sustainable Urban Infrastructures” - Studies

Source: Siemens / McKinsey & Company and Greater London Authority

� Industrial

� …

Sensitive issue

No issue

Not applicable

Example

� Key performance indicator

(KPI) for benchmarking

� Total footprint of

infrastructure element for a

certain sustainability issue

� Share of infrastructure

element in overall city

footprint for respective issue

� Use of water per

inhabitant in residential

buildings

� Total emission of

greenhouses gases by

public buildings

� Share of commercial

buildings in overall

greenhouse gases

Example: CO2 emissions in London 2006

100% = 44 Million tons CO2e

The sustainability “footprint” gives a first indication on actual status and major areas for improvement

CO2 from buildingskg CO2/person

CO from industry

2,500CO from transport 1,000

Values per year (2005 or most recent available before)

“Sustainable Urban Infrastructures” – Comparison of cities footprint

Source: Siemens / McKinsey Sustainable Urban Infrastructure Report – London Study, http://www.siemens.com/sustainablecities

London New York City

Stockholm RomeTokyo

CO2 from industrykg CO2/person

Air pollution kg of particle matter(PM10)/person

Municipal wastekg/person

CO2 from transportkg CO2/person

Water m3/person

Key issues for policy making and investments: What are the levers with a positive business case?

Insulation

Heating efficiency

Lighting

Appliances

Abatement (reduction)potential 1) Mt CO2

Average abatement cost 2)

EUR/t CO2

Additional investmentEUR billions

Buil-dings

Selected levers

1) Abatement by 2025 2) Decision maker perspective 3) Economical levers only 4) Pro rata share of total investment at national level

1.1 5)

Higher car efficiency 3)

Biofuels

Hybrid passenger cars

Hybrid bus

Grid mix

Trans-port

Ener-gy

Lessons learned for execution: Implementation and behavioral change on public, business and individual level

21% Examples:

� Public buildings

� Hybrid buses

� Traffic management

CityNational level

Examples:

� Biofuels

� Central electricity

supply (grid mix)

� Traffic management

Individuals

Examples:

� Buildings insulation

� Low-emission cars

� Efficient household

appliancesBusinesses

supply (grid mix)

Examples:

� Lighting in

commercial buildings

� Cooling displays

� Decentral energy (CHP)

Key element of sustainability programs: City-Centric strategy framework based on the consent of stakeholders

Agenda

Results, Lessons Learned and Theses from Siemens

Results, Lessons Learned and Theses from Siemens “Megacity” & “Sustainable Urban Infrastructure” Studies

Summary and Outlook

Sustainability is a multi-dimensional challenge, with infrastructure as key enabler and backbone…

Sustainability Infrastructure

� Megatrends have significant impact on city management and urban infrastructure

� Sustainability challenge for city managers: Balance between

Our key findings

Infra-structureSolutions

competitiveness, quality of life and environment

� Actual focus should be on…

�Robust, quantitative assessments to prioritize and focus infrastructure policies and investment

�Consensus and joint action of public and private sector

�Comprehensive implementation programs

�Stable policies triggering change

…that needs an integrated and strategic approach to meet cities´ demands on a long term perspective

Vision and strategy of city / city managers

Complementary expertise:

CityAuthority

Horizontal

reatio

Complementary expertise:

Sustainable infrastructure solutions to meet cities' strategic and operative needs

� Engineering and

technology

� General contracting

� …

� Urban planning

� Risk assessment

(PPP / projects)

� Financial modeling

and assessment

Horizontaland VerticalPartnership

Network

Infrastructure Experts

reatio

s Iden

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