CLIMATE AND ENVIRONMENT - T20 Japan 2019 · climate action, negative emissions technologies, projects that offset carbon, and 4 Climate investments can be defined as the acquisition

CLIMATEANDENVIRONMENT

DeliveringNationalClimateActionThroughDecarbonized

Cities

GabrielLanfranchi(CIPPEC)KateKooka(OECD)

OlivierRichard(APUR)MalcolmShield(C40)

March15,2019

Abstract

This policy brief summarizes the current challenges facing nationalgovernments as they undertake decarbonization policies in line with theobjectivesoftheParisAgreement.Thebriefemphasizesthreepolicythemes,including the role of urban climate actions, financing transitions towarddecarbonization,andcomprehensivemetropolitangovernancemechanisms.WealsopresentninepolicyproposalsandconsidertheimplementationofrecentpoliciesinParis.

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ClimateChangeandEnvironment

Challenge

The Paris Agreement Preamble recognized the significant role of localgovernmentsintacklingclimatechange.Thesegovernmentshavethepowertocontribute to meeting the objectives set out in the Paris Agreement byundertakingambitiouspoliciesthatensuredecarbonizationby2050.1

Toavoidexceeding1.5°Cofwarming,“globalnetanthropogenicCO2emissionsdeclinebyabout45%from2010levelsby2030(40–60%interquartilerange),reachingnetzeroaround2050(2045–2055interquartilerange).”2Eachyearthatthesetargetsaremissed,thewindowforlimitingtheglobaltemperatureincreaseto1.5°Cisreducedbytwoyears.Whilelimitingtheglobaltemperatureincrease to 1.5°C is possible, it requires significant social and technologicalchangesatboththenationalandsubnationallevelsofgovernments,aswellassupportfrombusinesses,NGO´s,academia,andindividuals.Otherwise,urbanagglomerationsaroundtheworldwillfaceunprecedentedrisksbymid-centuryastheybecomeexposedtotemperatureincreasesgreaterthan1.5°Coverpre-industriallevels(Revi,Satterthwaite,etal,.2014).

With80%ofglobalGDPbeinggeneratedinurbanagglomerations,urbanareasaccountfornearlytwo-thirdsoftheworld’senergyconsumption(UN-Habitat,2016). In this context, it is estimated that by 2050 two-thirds of the globalpopulationwillbeurbanandthat90%ofurbangrowthwillbeconcentratedindeveloping countries in Asia and Africa (United-Nations; Department ofEconomicandSocialAffairs,2018).Moreover,megacities3aregrowingbothinnumber and size. Today, 529million people live inmegacities. Globally, thenumberofmegacitiesisprojectedtorisefrom33in2018to43in2030(United-Nations;DepartmentofEconomicandSocialAffairs,2018).

These broader economic and demographic trends are reflected in theexpansion of urban areas to form urban agglomerations that are highlyinterconnected.Interdependencewithinandamongtheseareasrequiresanewapproach to governance that is attuned to targeting global issues such asclimatechange.Astheseurbanpopulationsgrow,trillionsofdollarswillneed1https://www.c40.org/other/deadline_20202IPCCSpecialReportontheImpactsofGlobalWarming,2019.3Citieswithmorethan10millioninhabitantsareoftentermed“megacities”(WUP,2016).

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tobespentonexpandingandrenewingurbaninfrastructure(OECD,CitiesandClimateChange:Nationalgovernmentsenabling localaction,2014).Muchofthis responsibility and expense falls on cities themselves. On average,subnationalgovernmentsinselectedOECDcountriesareresponsiblefor64%ofclimate-relatedspendingandinvestment(OECD,UNEnvironment,&WorldBank Group, Financing Climate Futures: Rethinking Infrastructure, 2018). 4However,citiesareoften limited intheirabilitytoraisethefundsneededtofinanceinfrastructureandensurethatcitiesarelowinemissionsandresilienttoclimatechange.

As citiesmove toward a decarbonized future, they areworking together tobetter understand the implications of emissions climate change; articulatewhat constitutes appropriate limits to residual emissions and offsetting;establish effective and transparent reporting requirements; and develop amore robust understanding of the barriers and challenges to achieving adecarbonizedfuture.

Inthecontextofthesechallenges,citiesareworkingtoestablishasharedpolicyframeworkofmunicipalandregionalcarbonneutralityalignedwithexistingaccounting protocols and the emergent international consensus on whatconstitutes a truly decarbonized future. As part of this process, cities areidentifyingcommonprinciples toaddress residualemissionsaswell ashowemissionsshouldbemeasuredandreported.Theseguidelinesareconsistentwithexistingenvironmentalintegritystandardsandglobalmechanisms,suchastheinternationally-transferredmitigationoutcomes(ITMOs)ofArticle6oftheParisAgreement.

Whiletheymaysharecommonfeatures,citiesareuniqueinhowthesefeaturescombine to create governing structures and challenges,making fordifferentapproaches to decarbonization efforts and targeting residual emissions.Moreover, depending on local interests within each city and the city’srelationshipwiththenationalgovernment,differentapproachesaretakentoclimateaction,negativeemissionstechnologies,projectsthatoffsetcarbon,and4Climateinvestmentscanbedefinedastheacquisition(includingpurchasesofneworsecond-handassets)ofassetsforclimatepurposes(e.g.installingcoastaldefencesagainstfloodingandsealevelrise).Climatespendingcanbedefinedastheamountofmoneyspentonoperatingandmaintainthese(e.g.strengtheningcoastaldefences).

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thepurchaseofcarboncredits.

City-scale approaches to themanagement of decarbonization transition andany residual emissions are built on internationally-accepted environmentalintegrityprinciples.Theseprinciplesstressthatreductions(orremovals)mustbe real, permanent, measurable, independently audited, unambiguouslyowned,andtransparent.

Proposal

1.NationalgovernmentsofG20countriesshouldworkwithcitygovernmentstotargetdecarbonizationobjectiveswhileempoweringthecountryasawholetoachieveNationallyDeterminedContributions.

Existinggreenhousegas(GHG)accountingandtarget-settingprotocolsrefertotermssuchas“carbonneutrality”and“netzero,”thoughtodatethey5havenotbeenclearlyandconsistentlydefined,whichlimitscities’abilitytoeffectivelyplan long-range emissions reductions, avoid carbon lock-in6and harmonizewithnationalcarbonmanagementefforts.Thereisbroadagreementamongstcitiesthatdecarbonizationshouldbeachievedatthecitywidescale7,yetit iscurrently unclear how to manage residual emissions – the emissions thatremainwhenallfeasibleemissionsreductionseffortswithinacityhavebeenfully implemented.As such, there is a need for countries and cities toworktogether to develop decision support processes,mechanisms and tools thatsupportcitiestomeettheirownlocalobjectiveswhileempoweringcountriestoachievetheirNationallyDeterminedContributions.

Offsettingandcarbonremovalmechanismsshouldonlybeemployedbycitiesonce all other technically and economically feasible opportunities to reduce5AnnexB:CarbonProtocolsandStandardsreviewedforthisdocument<<Malcolmtoupdatethisnote>>6C40carbonlock-inreport:Keepingcitiesgreen:Avoidingcarbonlock-induetourbandevelopment,https://www.sei.org/publications/keeping-cities-green-avoiding-carbon-lock-in-due-to-urban-development/7Notjustatthemunicipaloperationslevelbutincludingallthosewhoareresponsibleforemissionsinthecitysuchastheprivatesector,citizensandgovernmentinstitutions

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emissions, across all scopes and sectors, have been fully implemented. Thisensures that cities and nations have the most shared opportunity to cutemissions.

Depending on the jurisdictional powers and constraints within which theyoperate, cities may wait until closer to the target year of their emissionsreductioneffortsbeforeoffsettingtheiremissions,ortheymaystarttooffsettheiremissionsaheadoftheirtargetyear–thechoiceofwhichwillbedrivenby local and temporal considerations. Similarly, cities may consider usingnegativeemissionstechnologiesorcarbondioxideremovalapproachesearlyon,ordecidetowaittodeploythesemeasuresclosertothetargetyear.Inbothcases, the chosen approach changes the dynamic of the city’s carbonmanagement approach and the city’s relationship with national emissionreductionefforts.Therearea seriesofpotentialbenefits,disadvantagesandrisksassociatedwithoptimizingthetimingofresidualemissionsmanagementwhich cities and nations must consider in their shared responsibility to adecarbonizedfuture.

2. Recognize the urgency of prioritizing decarbonization efforts and thebenefitslinkedtothis.

Cities’ decarbonization efforts are most often local actions that bring city,regional, national and international benefit. Local decarbonization projects,withinthehomeregionorcountry(butoutsidethecity’sinventoryboundary)can deliver local/regional job and economic improvement as well as otherbenefitssuchas improvedresiliency,airquality,andhealthoutcomes;whilesustainabledevelopmentprojectsfocusedoncarbonreductionhelpbuildtherequired solidarity for transformative national and global climate action. Ingeneral,andindependentoflocation,decarbonizationprojectsprovidenotonlyemissionsmitigationbutnumerousotherancillarybenefits,suchasimprovedequity, increasedclimateresilience,improvedbiodiversityandbetterhumanhealthoutcomes.

GrossvsNetEmissions

To ensure transparency, and enable meaningful and accurate reporting of

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progress towards their carbon neutrality goals, cities should report netemissionsseparatelyfromgrossemissions8.Thereportingofnetemissionsiswhatallowscitiestotrackprogressagainsttheircarbonneutralitygoal.

3.Empowerlocalgovernmentstofinancethelow-emission,resilienttransitionbyaligningnationalandlocalfiscalregulationswithinvestmentneedsincities

Oneoftheprimarychallengesforcitiesinaccessingsufficientfinancingistheirlimited ability to tax or borrow, which can be constrained by legislation athigherlevelsofgovernment.Whiletheseconstraintsmayhelptolimitfinancialrisks,itcanalsodeprivecitiesofimportantsourcesoffinance.

Supportivenationalpolicyframeworksandlegislationarenecessarytoensurethatcitieshavetheresources,incentivesandpotentialtoimplementeffectiveclimate initiatives. National policies and legislation typically determine theframework conditions within which cities operate, including their revenue-raisingability.

Financingmechanisms for climate-resilient urban infrastructure include theuse of catastrophe bonds, the establishment of dedicated finance facilities,dedicatedglobalclimatefunds,aswellasofficialdevelopmentassistanceforcities in developing countries (see Table 1). Financial instruments such asgreenbondscanprovideanopportunitytoraisefundsforgreeninfrastructureprojects.Subnationalgreenbondgrowthissuanceisrising,andaccountedfor21%ofgreenbondissuancein2017(ClimateBondsInitiative,2017).

A strongnational frameworkusingmarket-based instruments (for example,carbonpricingschemesandperformancestandards)canbroadentherangeofenvironmentallyandeconomicallyeffectiveoptionsavailabletocities.Nationalgovernments can also build environmental goals into national and urbanplanningstrategies,andencourageclimateactionthroughgrantsandsubsidies.Itisequallyimportanttoidentifynationalpoliciesthatconflictwithorpreventlocalclimateaction.

8Grossemissionsincludeallrelevantemissionsinallcoveredemissionsscopes,excludinganyGHGemissionsreductionsfromcarboncreditsretiredorsold.NetemissionsisequaltothegrosslevelofemissionslessallapplicableGHGemissionsreductionsclaimedfromcarboncreditspurchased,andaddingGHGemissionsfromcarboncreditssold.

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Table1.Cities’mayhaveaccesstoawidevarietyoffinancingsourcesFinancial sources potentially available to support urban infrastructureprojects.Typeofsource DescriptionIntergovernmental cashtransfers

Cash transfersof taxrevenuesorotherresources fromcentralgovernmenttolocalauthoritiesforgeneralorspecificuse

Taxes Mayinclude:Generaltaxrevenues(suchasproperty,sales,andincome tax);Targetedenvironmentalor location-specific taxesorsurchargeslinkedtoaccesstoinfrastructureservicesorotheramenities

Landvaluecapture A mechanism to allow a government to capture some of thedevelopment value impact of policy and zoning changes oramenityandinfrastructureimprovementsinadesignatedarea

Userfees/tariffs Directedattheusersofagoodorservice(suchastheperunitcharges forelectricityorwaterusage;ridershipfees forpublictransport)

Fines/penaltiesredirectedforotheruse

Financial penalties for violation of environmental qualitystandardsorotherrules

Official developmentassistance(ODA)

Mayinclude:Grantsorsubsidies;Marketrateinvestmentprojectfinancing(loans);Concessionalrateinvestmentprojectfinancing(loans); development policy loans; Pay-for-results loans; De-riskinginstruments(guarantees)

Government-issuesdebt May include:Generalobligationbonds;Special-purposebonds;Greenbonds(fordedicatedenvironmentalpurpose)

Otherprivatefinance May include: Investment in public debt (general or project-specific); Equity stake investment in specific projects;Investmentininfrastructuresystemoperatorsoperatingunderapublic-privatepartnership(PPP);orotheroperatingauthority

PPPs Build-operate contracts between government and privatecontractor

Dedicatedclimatefunds May include: Loans/grants from Global Environment Facility(GEF), Green Climate Fund (GCF), Climate Investment Funds(CIF), or country- or region-specific funds; Carbonmarkets orothermarket-basedclimateinstruments

Philanthropicresources Mayinclude:grantsorsubsidies,socialimpactinvestments

Insurancepayouts Mayinclude:privateriskorcatastrophicinsurance

Source:AdaptedfromTable1.1ofFinancingaResilientUrbanFuture:APolicyBriefonWorldBankGlobalExperienceonFinancingClimate-ResilientUrbanInfrastructure(WorldBankGroup,2018).

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Tellingly, the Inter-AmericanDevelopmentBank (IDB) governancedatabaseshowsthatfewerthanhalfofallcountrieshavedevolvedfiscalor legislativepowers to subnational governments (Floater, et al., 2017).Those citieswithdevolvedrevenue-raisingcapacity–suchasTokyoandParis–canaligntheirexistingmunicipalrevenuestreamstohelpachieveclimategoals(Slack,2016).Forexample,congestionchargesandparkingfeescanhelppromptuserstouselower-emittingpublictransitalternatives,andpropertytaxesanddevelopmentchargescanencouragedensityinurbanareas(OECD,2013;OECD,2018).Somecitiescanalsointroduceemissionspricinginitiatives,offeringthedualbenefitofraisingrevenuesthatfundlow-emission,resilientinfrastructurewhilealsohelping to internalise thecostsofemissions.Forexample,Beijing,Shenzhenand Tokyo have all implemented or are planning to implement emissions-trading schemes (WorldBank&Ecofys, State andTrends of CarbonPricing2018,2018).

To help cities achieve their targets, multi-national development banks anddevelopment finance institutions can provide technical support to facilitateaccess to international markets. Further, they can propose city-specificfinancial instruments such as bonds and grants to scale up investment.Additionalguaranteemechanismscanhelpimprovecities’credit-worthiness.Someprivate-andpublic-sectorcoalitions,suchastheCitiesClimateFinanceLeadershipAlliance,arealreadyworkingtomobiliseandaccelerateinvestmentinlow-emissionandresilientinfrastructureincitiesandurbanareas.

Finally,nationalfinanceministriescanhelpbyreviewingthefiscalframeworkof cities and identifying misalignments with climate objectives, and bydeveloping national legislation that clearly articulates whether cities canborrowandunderwhatcircumstances.Citiesandlocalgovernmentscanalignlocal taxes and charges with low-emission, resilient development (such asintroducing appropriately priced parking fees, congestion charges andemissionspricing),andreformfeesandtaxesthatencouragesprawl.

4.Buildclimateandprojectfinancecapacityincities

Only20%oftheworld’s150largestcitieshavebasicanalyticaltoolsattheir

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disposal for low-carbon urban planning – for example, quantifying thegreenhousegasemissionsassociatedwitheconomicactivityandconsumptionin a city (World Bank, Planning and Financing Low-Carbon, Livable Cities,2013). Developing capacity in local governments and administrations isfundamental to making climate action work, particularly in developingcountriesthatsufferfromcapacityconstraintsandseverevulnerabilitiestotheadverseeffectsofclimatechange.

Sufficientcapacitycanhelpovercomesomeofthechallengestoinfrastructureinvestment. Increased capacity can bring a better understanding ofadministrativeprocedures,procurementprocedures,co-ordinationwithotherlevels of government and jurisdictions, and strategic planning. Nationalgovernmentscanfundprogrammesthatprovidetrainingandtechnicalsupporttoenhanceaccesstoprivatecapitalmarkets.Buildinginstitutionalcapacityandexpertisecanhelpcitiesprepareforandpackageinfrastructureprojectsintoattractivebankableprojectsforprivateinvestors.Citiescouldalsostrengthentheir long-term planning capacity, including their use of tools such as cost-benefitanalysistoensureastronginformationbaseisbeingusedfordecisionmaking.

National governments and development finance institutions can help bybuildinglocalcapacitytoaccessprivatecapitalmarketsandtoworkwiththeprivate sector (OECD, Cities and Climate Change: National governmentsenabling local action, 2014). They can strengthen capacities and skills indeveloping risk-informedurbanplans, and in designing and selecting urbaninfrastructurethattakesintoaccountarangeoffutureclimateconditionsandtheassociateduncertainties.Theycanalsohelpbuildclimate-relatedcapacitiesto develop long-term low-emission strategies and measure greenhouse gasemissionsandprogress.

Assistingcitiesthroughstrengthenedfinancialperformanceandenhancingcityleaders’ knowledge of revenue management, expenditure control, debtmanagement,assetmaintenance,andcapitalinvestmentplanningiscentraltounlockingandimprovingcreditworthiness(WorldBank,CityCreditworthinessInitiative:APartnershiptoDeliverMunicipalFinance,2018).Furtheraffectingcreditworthiness is cities’ inability to collect revenue, which limits theircapacitytoborrow.Relatedly, the lackoftransparentaccountingpractices is

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anotherimportantbarrier,particularlyindevelopingcountries.

Estimates suggest that less than 4% of the largest 500 cities in developingcountriesareconsideredcreditworthyininternationalmarkets,andlessthan20% are considered creditworthy in local markets (World Bank, FinancingSustainableCities:HowWe'reHelpingAfrica'sCitiesRaiseTheirCreditRatings,2013).Improvingcreditworthinesscanhavetremendousimpacts:justUSD1ofinvestmentinimprovingcitycreditworthinessinadevelopingcountrycanleverage more than USD 100 in private investment in sustainable urbaninfrastructure(WorldBank,FinancingSustainableCities:HowWe'reHelpingAfrica's Cities Raise Their Credit Ratings, 2013). City creditworthinessinitiatives and project preparation facilities, such as the World Bank’s CityResilience Program (CRP) and the C40 Finance Facility, can support publicentities’ capacities in developing bankable projects and scale up theirinvestmentininfrastructure.Thisappliesinparticulartocitiesindevelopingcountries,asthemajoritystilllackaccesstoexternalfinancingsources.

5.Seizethedevelopmentbenefitsoflow-emission,resilientplanning

Coreclimatepolicies–suchasthoserelatingtoenergy,transportandcarbontaxation;subsidyandpricingreforms;supportforrenewableandlow-carbonenergy; energy efficiency programmes; and transport planning andmanagement – have the potential to affect household spending and theaffordability of energy, transport services and housing. Policies outside theclimateportfoliocanalsoinfluenceclimateandinclusivegrowth.Forinstance,local tax policies, by affecting the costs andbenefits of landuse, canhave asignificant impact on emissions and housing affordability. Considering theimpactsofpoliciesatthesubnationallevelondevelopmentandinclusivenessisthereforecentraltostrategic,cohesiveplanning.

Climatepoliciesandstrategiespresentboththreatsandopportunitiesformoreinclusive growth. If appropriately planned, low-emission, resilientinfrastructure can have positive impacts on vulnerable populations. Forinstance,increasedinvestmentinurbantransportsystemsgenerallyimprovesaccesstojobsforlow-incomepopulations.Subnationalandlocalgovernments

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canhelpbymainstreaminginclusivenessininfrastructureplanning.Citiescanalso integrate climate and inclusiveness outcomes through thoughtfulinvestmentofrevenuesfromenvironmentaltaxesandfees.Theycancapitaliseskills development and job-creation opportunities in urban infrastructurefinancing and investment, particularly relating to energy efficiencyinvestments.

Cities have an imperative to be at the forefront of climate action. Aligningnationalandlocalfiscalregulationswithinvestmentneedsandbuildingclimateandprojectfinancecapacityincitiesshouldbeprioritiestoensurecitiesareempoweredtoleadthetransitiontoalow-emission,resilientfuture.9

6.Strengthentherolenationsplayinachievingdecarbonizationobjectivesbyempowering metropolitan coordination for implementing aligned climatestrategies.

Towardtheendofthe19thcentury,manylargecitieswerebesetbythehealthrisksofcholeraandyellowfever,leadingthemtoinvestheavilyinwaterandsanitation infrastructure at a timewhenurban systemswere expanding. Todate, thewarmestyearsonrecordwere2015,2016,and2017,andclimate-relatedeffectsondevelopmenthavealreadybeenobservedinmanycitiesandcountries (ECOSOC,2018).Thus, theclimatecrisispresentsnewchallengesand opportunities to reconsider the mechanisms of local and nationalgovernanceanddecisionmaking.The lesson tobedrawn is thatsustainabledevelopment increasingly depends on “the successfulmanagement of urbangrowth.”(United-Nations;DepartmentofEconomicandSocialAffairs,2018).In aworldwhere cities are continuously expanding, urban planning shouldpromote compact, organized, efficient, and socially cohesive, metabolicallyefficientcities(Lanfranchi,Herrero,Rueda,Bauer,&Camilloni,2018).

Citiesexpand conforming urban agglomerations, which according

9Notethatrecommendations3,4,and5areadaptedfromOECD/TheWorldBank/UNEnvironment(2018),FinancingClimateFutures:RethinkingInfrastructure,OECDPublishing,Paris,https://doi.org/10.1787/9789264308114en.

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toUN10,representa“populationcontainedwithinthecontoursofacontiguousterritory inhabited at urban density levelswithout regard to administrativeboundaries”.Urban agglomerations are social, economic and environmentallinked, creating a high interdependence amongdifferent administrativeunits,turningthereforeinto metropolitan urban systems.Metropolitanareasinvolve participation of other levels of government thataffectthedecision-makingstructureofthesystem.

Thus,notsurprisingly,climatechangeandurbanizationarealsoincreasinglylinkedbyurbanservicesand functional systems.Notonlydo infrastructure,energy,water,waste,andtransportationsystemshaveadirecteffectonurban-GHG emissions (Colenbrander, Lindfield, Lufkin, & Quijano, 2018), citiesthemselvesalsotendtosufferhardfromtheconsequencesofclimatechangebecauseshiftingweatherpatternsputthesesystemsatrisk.Climateactionsinalargecityareinterventionstotheurbanfunctionalsystemthatencompasstheentirescopeof theagglomeration– rather thanbeing limited to fragmentedpatchesofterritory–inordertobeeffective.Suchholisticinterventionsarekeyfor policy initiatives that improve governance across entire territories.Notwithstanding, there are currently few cases where such models ofmetropolitangovernanceexist.Mostexistingurbangovernmentmodelshavetheir roots in the formation of nations in the eighteenth and nineteenthcenturies.Duringthisperiod,administrativeandspatialboundariesmatchedthe local governing power of cities. During the twentieth century, with theadventoftheautomobileandhighways,citiesexpandedbeyondtheiroriginallimits.Yetdespitesuchexpansion,mechanismsforlocalgovernmentremainedmostly unchanged. As cities and their urban systems continue to grow andexpand – demanding and consuming more energy-traditional governingarrangementsandmechanismsofurbanareasarebeingchallenged(McCarney,Blanco, Carmin, & Colley, 2011). At present, the existing level ofinterdependence in metropolitan areas requires a new approach forgovernance that is attuned to targeting climate change. In addition to that,horizontalcoordinationisneededformanagingmultipleinstitutionsthatco-10 [1] United Nations, Department of Economic and Social Affairs, Population Division(2018). The World’s Cities in 2018—Data Booklet (ST/ESA/SER.A/417);https://population.un.org/wup/General/FAQs.aspx.

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existinametropolis,particularlywhencommonchallengesposeathreattoallactorsinvolved.

Ontheotherhand,localstrategieshavetobealignedwithnationalpoliciesandgoals, taking into account how local authorities serve as a vehicle for theimplementationofnationallydrivenpolicies(Corfee-Morlot,etal.,2009).Evenmore, cities will have to work with nation states in order to cancel outemissionsfromfueluseinbuildings,transport,industry,theprovisionofgrid-suppliedenergyandthroughthetreatment/disposalofwastegeneratedwithinthe city, since such opportunity of cancelling out exist almost exclusivelyoutside city boundaries,mostly because local governments do not have thepowerorcapacitytodriveit.Inthisvein,thenewmetropolitanentityshouldbe the one, which carries out low carbon strategies designed by multiplepolitical-administrative levels of an urban agglomeration, including theidentification of financial, social and political barriers for implementingmetropolitanclimatestrategies(Lanfranchi&Contin,2017).Also,pressuretoreducecarbonemissionsincertainsectorscouldhurtcompetitivenessofsomesectorsvis-à-visothersectorsof thecityanddrivecompanies to relocate todistrictswherepolicies are less stringent. The role of nations is central togenerating incentives for subnational governments to define instances andmechanismsofpublic-privatemetropolitancoordination.

Improving metropolitan governance and tackling contemporary urbanchallenges requires a new approach to territorial management. Such anapproach includes the reforming of longstanding legal frameworks, thecreation of institutions capable of managing metropolitan systems, thedevelopmentoffinancingtoolsessentialtofunding,thebuildingofnewgreeninfrastructure,andthedesignandimplementationofparticipatorymethodsformetropolitan planning and action. As an example, in order to promoteconsensus and dialogue between stakeholders, CIPPEC Cities Program hasdevelopedamethodcalledPlanificACCION(Planning&Action).Thismethodallows simultaneously targets planning and action by combining the use ofparticipatoryplanningstrategiesandprojectco-creation.Italsoallowsfortherapididentificationofkeychallengesandgoalsfollowedbystrategicprojectsthatpromotedialogueandconsensusbuildingwhileprovidingquicksolutionsforgovernmentsandtheircitizens.Byfacilitatingparticipatoryplanningand

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building social capital among leaders and communities, PlanificACCIONcontributes toreframe thewayweplanandact towards thecomprehensivedevelopment of cities. It focuses on developing policies in key areas fordevelopment: reducing inequalities, enhancing urban resilience, promotinginclusivedigitalizationandempoweringmetropolitangovernance(Lanfranchi&Yañez,2018).

The G20 should recognize the benefits of a new integrative metropolitanapproachforaddressingthosebarriersandatthesametimedealingwiththechallenges arisen by the complex interrelations of human, environmental,work,commerce,education,andhealthsystemsofametropolis.

7. Create under G20 a metropolitan working group, which focuses onpromotingthedevelopmentofcomprehensiveterritorialpoliciesbetweenthenationandsubnationalgovernments.

Assaidpreviously,newmetropolitangovernancethatextendsbeyondformaljurisdictionsshouldbedevelopedformanagingandleadingclimateactionsina coherent fashion. In addition,metropolitan entities could strengthen theirfinancingcapacitythroughbacking/guaranteesfromnationalgovernments.

Inadditiontothechallengesfacinglocalgovernmentsduetotheirweakfiscalautonomy,theyalsooftenlackcapacityinareassuchasmeasuringemissions,mainstreaming climate risks in infrastructure planning, and financing anddelivering infrastructure projects efficiently. Monitoring and verificationpowerscouldbetransferredtometropolitanentitiesthatshouldbetailoredforeachmetropolitanarea.Decarbonizingametropolitanregionwillundoubtedlyrequire joint efforts and both horizontal and vertical coordination, since itrelies on complex inter-governmental policy networks and organizationalmanagement (McCarney, Blanco, Carmin, & Colley, 2011). It is essential toreview the governmental schemes and foster a comprehensive institutionalapproach to be addressed across the metropolis instead of territorialjurisdictionsorthematicsectors(Gómez-Álvarez,andLanfranchi,2017).Thestate,asweunderstandittoday,isnottheonlysocialactorcapableofgivingshape to a local reality. Companies, social organizations and individuals

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connectedthroughsocialnetworksplayacriticalroleinthetransformationofthis reality. Thus, to be effective, Climate Action Plans should grow out ofconsensusandactiveparticipationofanarrayofpolitical,economic,andsocialactorswhose interests are tied to the territory in question. They should beinvolved in theearlystagesof climatestrategyplanning,bydefiningsectorspriorities,barriersandopportunities.Also,theengagementofthecommunityensures the effective implementation of climate change policies, whilegenerating legitimacy in its implementation (GómezÁlvarezandLanfranchi,2017).

G20shouldtakenoteofthestrategicrolemetropolitangovernancecouldplayinimplementingclimatestrategiesatregionallevelandtherebytheyshouldberecognizedfortheircontributionintheG20framework.Tothriveinmeetingtoday’sglobalchallenges,empowermentofcitiesisparamount,byraisingtheprofileofurbanissuesintheG20agendaandultimatelyenhancingtheroleofcitiesintheG20process(Lanfranchi&Yañez,2018).

Finally,in2018,duringtheG20Argentina,theClimateAction&Infrastructurefor Development Task Force proposed to formalize the Urban 20 asengagement groupwithin the G20 system, as a space to enrich discussionsregardingurbanissues.TheU20Summit,empoweredbyC40,showedthehighrelevancethatsubnationalgovernmentshavefortacklingglobalthreatssuchasclimatechange.DuringG20Japan,theformalizationtookplace,beingU20officiallyanengagementgroup.Thisisanimportantstepinrecognizingtheroleofcitiesintheglobalarena.

LessonsfortheImplementationofDecarbonizationPolicies

We now turn our attention to implementation and consider policiesundertaken in Paris, to highlight how cities are tacking the challenges ofclimatechangethroughanarrayofactionsthatspanacrossthesethreepolicyperspectives.

Paris’ambitiousclimateplansetsoutapolicytrajectoryoverthenext30yearsand includes 500 actions for implementation. These actions cover a broadspectrum of issues, ranging from the production of urban space to social

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inclusion. Paris is emblematic not only of the advancements that cities canmake in tackling the challengesof climate change through the sortofpolicyinstrumentsdiscussedinthisbrief,italsoinvitesustoconsiderthepersistentchallengesthatcitiesface,suchadvancementsnotwithstanding.Inthiscontext,thecaseofferslessonstopolicymakersfortargetingclimatechangethroughthedecarbonizationofcities.

OverviewofPolicyadvancementsinParis

8. Acknowledge the role of local governments as pathfinders to support thetransitionandrapidactions

Today, decarbonization depends on reducing energy consumption andgreenhousegasemissionsandinvestinginalternativeandrenewableformsofenergy. These objectives call attention to how the city is constructed andmanaged and, more broadly, how the practices and lifestyles of those whobenefitfromthecityshapeit.

WhiletheGrandParismetropolitanauthorityareaishometo7millionpeople,the105km2areaof the city itself comprises2.2million residents,1millioncommuters,280,000touristseveryday(34millionsin2017),bringingthedailydensity tomore than 30,000 people per km2. One of the significant climatechangechallengesforParishasitsrootsinitsdenseandcompacturbanform:itisaboutstrengtheningtheassetsitcanoffer(thecityofshortdistances,ofsocialandfunctionalmix)whilelimitingnegativeimpactssuchastheeffectsofurbanheatislandsortheconsequencesofurbansprawlexperiencedduringthe20thcentury.

Beginning in 2001, policies targeting collective urban mobility and therecuperation of public spaces were launched and mark the first series ofprojectstowardlow-carbontransition.Theseincludedthecreationofabicyclenetwork, a large-scale bicycle share system of more than 20,000 bicycles,investmentsinbuslanes,intramwayinfrastructuretoreconnectpublicspaces,andtheextensionofmetrolines.By2004,thecityhadbeguntoassessingitsimpactintermsofgreenhousegasemissions.

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In 2007, the first climate plan was unanimously approved. It set the firstobjectives for reducing greenhouse gas emissions and energy by 25% andinvesting in renewable energy for public buildings, such as government,schools,andsocialhousing,amongothers.In2012,asecondclimateplanwasbegun; it marked an important step toward heightened public awareness.Between2004and2014,thecarbonfootprintoftheParisregionwasreducedbynearly10%.

Parisispartoftheprecursorgroupofthe"1.5°C"citiesofC40andproposesanambitiousandpioneeringobjectiveofthecarbonneutralityofcities.InMarch2018,thenewParisianClimatePlanwasunanimouslyapprovedbytheParisCouncil. The final approval of thisplanwas the culminationof a five-monthpolicyprocessthatbroughttogethercitizens,professionals,associations,andexperts.Thisprocessmadewayforasharedvisionformeetingthechallengesofcarbonneutrality. InNovember2018, followingtheapprovalof theParisClimateplan,theGreaterParisMetropolis,whichincludestheCityofParisand130 othermunicipalities, approved itsMetropolitanAir Climate andEnergyPlan. Similarly, the plan targets climate neutrality and its approval isemblematic of democratic decision making and consensus, with 131municipalitiesunanimouslyvotinginfavouroftheplan.Also,Parisdecidedtosetupalowemissionzoneonitsterritory,joinedbytheMetropolis,whichnowwishestoextenditto78othermunicipalities.

In addition to that, this city decided to ban diesel engines by 2024 and allthermalenginesby2030facinganothermajorissue,airquality.Theobjectivesof these advancements are to promote alternative forms of energy, such aselectrichubs,NGV/BioNGVstations,andhydrogenstations.

Finally,additionalpolicyinitiativesfocusonreducingwasteproductionatthesource, improvingsystematicsortingandreuseofwaste,andpromoting thecirculareconomyandsustainablefoodchains.

Ongoingchallenges

9. Enable local governments to adapt or develop the necessary legal andregulatorytools

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Notwithstandingrecentpoliciesthatpromotedecarbonizationandmitigatetheunderlyingcausesofclimatechange,Parisfacesongoingpolicychallenges.Forone,thermalrenovationofthebuiltenvironmentwillpresentamajorchallengeover the next thirty years: 85% of Paris' energy consumption is due toresidential and tertiary buildings (110,000 buildings concerned). Massivebuildingrenovationthusrequiresnotonlymobilizingallexistingregulatory,incentive,operationalandfinancial levers,butalsoreinforcingobligationsatthelevelofthelaw.

The progressive and comprehensive greening of energy networks is also amajor challenge. InFrance, energynetworksareownedby local authorities.Pariscanthereforesetbindingtargetsfortheshareofrenewablesintheenergymixandincludethemincontractswithitsnetworkoperatorstoachieve100%greenenergyby2050.Thisgreeningislinkedtoenergyproductionwhereveritisrelevantbymobilisingallthelocalenergysourcesavailable(geothermal,solar,energyrecovery,windenergy).Toachievethis,obstaclesstillneedtoberemoved, such as regulations related to landscape planning and historicalpreservation, which prevent the installation of solar panels on roofs. Localforms of energy production and distribution such as self-consumptionmustalsomake itpossible to limit thedemandand investmentson thenetworks,whichcontinuetoplayamajorrole.Withthislocal/globalhybridization,thecarbonimpactremainscontainedwhilecontributingtomakingthesenetworksmorerobustandresilient.

Aimingforcarbonneutralityalsomeansexploringallavenuestoavoid/limitgreenhousegasemissions,including:

- optimizing existing buildings (rather rehabilitating than destroyingthem, deconstructing than demolishing them) and the developingprogramme flexibility (to be able to transform offices into housing,nurseriesintofacilitiesforpeoplewithdisabilities);

- optimizing the uses and role of buildings, as a resource for theirenvironment (by hosting greening, urban services, urban agriculture,etc)orbyconsideringunderutilizedareas(vacantpremises,carparks,schoolyards,etc.)asapermanentortemporarysource;

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- using bio-sourced, low-carbon materials should also lead to areconsideration of the energy performance criterion, which appearsincreasingly insufficient, in view of the need to reduce the carbonfootprintinconstruction.

- de-waterproofing, greening: a city's carbon neutrality requires theclimaticadaptationofitsopenspacesandbuildingsinordertoavoidtheuse of air conditioning and to limit the effects of urban heat islands.Breakingthecarbonintensityofpublicspacecanbeachievedthroughtheuseofsustainable,low-carbonmaterialsand/orwithinterestingclimatebenefits. Permeable soils also prevent overloading of the seweragesystemandpromoteurbancooling.

- mutualizingatallscales,fromthebuildingtotheneighbourhood,takingadvantageofthespecificityofmixedanddenseurbanfabricsandgoingbeyond the boundaries (property, parcel) and the inherent legal andtechnical obstacles, by taking advantage of the temporality of energy(heat exchanges between tertiary and residential buildings), byreinforcingsolidaritybetweennewbuildingsandstock(the"resource"building for its environment), by taking advantage of the mass effect(areaswhereseveralbuildingscanbegroupedtogetherforrehabilitationpurposes),orevenatthemicrolevelbyfacilitatingencroachmentontheprivate space of the neighbouring plot to provide external thermalinsulation.

Mostofthesetrackswillalsorequireanadaptedregulatoryframework.

Lessonstobedrawn

Overall,severalqualitiesunderliethepolicyadvancesinthePariscase,whichshouldbetakenintoaccountinordertoreplicatethelessonstobedrawn:

1. Astrongandsharedpoliticalwillforovercomingresistancetochangesinthestatusquo

2. Asetofplanninginstrumentstoguidethedevelopmentofpoliciesand

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their implementation: climate plans, adaptation strategies, resiliencestrategies,urbanregulations,incentiveprogramstopromoteinnovation

3. Multiscale projects that incorporate the local, metropolitan, regional,nationallevelsofgovernance

4. Coordination across sectors, including business, civil society, andgovernmenttobuildconsensusonpolicyinitiatives

Conclusion

Thispolicybriefhasstressedtheimportanceofpolicyadvancementsinthreekey crosscutting policy areas: the proactive role of urban climate actions inadvancing theobjectivesof theParisAgreement,pathways for financing thetransition, and the need for newmetropolitan governancemechanisms thattake intoaccount for theurban systemasawhole.Theninewe’ve includedshowhowcities can tackle the challengesof climate change in linewith theParisAgreement.Theseproposalscanbesummarizedasfollows:

1. National governments of G20 countries should work with citygovernmentstotargetdecarbonizationobjectives

2. Recognizetheurgencyofprioritizingdecarbonizationefforts

3. Empower local governments to finance the low-emission and resilienttransition

4. Buildclimateandprojectfinancecapacityincities

5. Take advantageof thedevelopmentbenefits of low-emission, resilientplanning

6. Strengthentherolenationsplayinachievingdecarbonizationobjectives

7. CreateunderG20ametropolitanworkinggroup

8. Acknowledgetheroleoflocalgovernmentsaspathfinderstosupportthetransition

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9. Enable local governments to adaptordevelop thenecessary legal andregulatorytools

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