Green growth in Cities:Key findings from the OECD synthesis report

Tadashi Matsumoto, Ph.DSenior Policy Analyst, Regional Policy for Sustainable Development, OECDInternational 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 reviews in 20 countries: tailored studies assessing how a given metro-area can boost competitiveness

New series on national urban policy analysing the implicit and explicit policies that impact urban development in a country (completed: Poland, Korea, Chile; potential: China, Mexico)

Thematic work

•Urban Trends and Governance

•Global port cities

•Green Growth in Cities

•Compact Cities

•Urban Trends and Policies in OECD Countries

•Cities and Climate Change

•Cities, Climate Change and Multi-level Governance

•Competitive Cities in the Global Economy

OECD Roundtable of Mayors and Ministers

Unique global forum for mayors and ministers to exchange best urban policy practices

75 mayors and 47 ministers have participated in four Roundtables since 2007

OECD database on metropolitan regions and OECD regional database

The fundamental tools for enhancing cross-country comparability and improving analysis and evaluation of policies

OECD Metropolitan Database: a tool for policy makers

Interactive maps and data on metro areashttp://measuringurban.oecd.org/

Green Growth in CitiesKey findings from OECD Synthesis report

• Conceptual framework (2011)

• Synthesis report: Green Growth in Cities

Green Cities Programme

City case studiesParis (2011)Chicago (2011-12)Kitakyushu (2012)Stockholm (2012)

National-level case studiesKorea (2011)China (2012)

Launch: 23 May 2013 in Stockholm

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

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

Growth

GDP growth primarily, but also urban quality

of life

Greenurban activities that can be leveraged to reduce environmental impact

(land-use planning, transport, buildings,

energy, waste and water)

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

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

Cities are key spenderson infrastructure relevant to green growth

Green Growth in Cities: Why are cities important?

Atlanta

BaltimoreChicago

Dallas

DetroitLos Angeles

New York

Helsinki

Lille

Lyon

Paris

HanburgBudapest

Naples

Rome

Madrid

Stockholm

Zurich

Ankara

Istanbul

London

MelbourneAichi

FukuokaOsaka

Tokyo

Busan

Seoul

Auckland

Guadalajara

Mexico city

Monterrey

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

-140 -120 -100 -80 -60 -40 -20 0 20 40 60 80

Pollu

tion

emiss

ion g

rowt

h rat

e (20

01-2

030)

Absolute change in attractiveness

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

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: Which policies to pursue?

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

Make existing revenue sources greener

Tap new sources of finance

Ensure policy alignment across levels of government

Financing green cities: the Chicago Proposal

CASE STUDY:KITAKYUSHU,JAPAN

Environmental Performance

• Air and water pollution mostly declined, while economy grew

• Remaining challenge: greenhouse gas emissions

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

Sulfur Dioxide (SO2）

Nitrogen Dioxide (NO2）

Suspended Particle Matter (SPM）

Photochemical Oxidant (Ox）

Kitakyushu GDP

Parts per million GDP (trillion JPY)

Case study: KitakyushuFacts and Trends

Socio-Economic Trends

• Sluggish growth rates and population decline

• Transition towards service based economy

• Strong specialisation in manufacturing 0.97

0.98

0.98

0.99

0.99

1.00

1.00

1.01

1.01

1.02

1.02

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4

4.1

4.2

4.3

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Kitakyushu GDP per capita

Japan GDP per capita

Population

GDP per capita (million JPY) Population (million)

Case study: KitakyushuFacts and Trends

Sector/Activity RECOMMENDATIONS

Land use andtransportation

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

Waste recyclingFoster 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 efficiencyFurther 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 innovationIdentify and map green innovation assets and actors and integrate them in a coherent regional innovation strategy

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

Case study: KitakyushuPolicy recommendations

Level RECOMMENDATIONS

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

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

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

NationalReduce the city’s dependency on central government policiesPursue opportunities from decentralisation and deregulation

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

Case study: KitakyushuGovernance recommendations

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