Intro of the Carbon Finance Capacity Building Project

8/9/2019 Intro of the Carbon Finance Capacity Building Project

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Making Carbon Finance Work for

City Development

Carbon Finance Workshop

Quezon City, Sept 28, 2009

Konrad von Ritter,World Bank Institute


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Greenhouse Gas Emissions of CitiesPreliminary Data (t CO2 per capita)

0

5

10

15

20

25

Shanghai Bangkok Cape Town London Barcelona Heidelberg Toronto New York

City

National

Source:compiled by World Bank Staff from multiple sourcescomparability of data still under review. Contact Dan Hoornweg ([email protected])


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Cities and Climate Change

Over 5 billion likely to live in cities by 2030 contributing over 80% ofGHG emissions

Rapid urban growth renders cities a key for climate action

Cities are an indispensable key actor to movetowards low carbon growth.

Cities face multiple development challenges to serve their inhabitants

Climate Change is a Development Challenge: needsto be addressed through the lens of SustainableUrban Development

Sustainable Urban Development often linked to Low CarbonGrowth

Great Opportunities for Co-benefits: reducing GHG

and promoting City Development


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Potential Sectors with Co-Benefits

Cities

Public Transport

Metered Services

Wastewater

Buildings

Solid Waste

Street Lighting


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Urban Mitigation OpportunitiesUrban Water Supply & Sewerage

Typical Components Opportunities

Water supply, storage and treatment facilities

Secondary and tertiary distribution networks

Loss reduction

Sewage collection, treatment and outfall

facilities

Water supply and sewerage connections

Water pressure and quality monitoring

systems

Energy efficiency in water & wastewater

pumping

Managing GHG emissions from secondary &

tertiary treatment

Sludge disposal techniques

Reducing water supply variability & losses from

CC

Integrated energy-water management

Urban Solid Waste Management


Establishing & managing sanitary landfills

Establishing and operating municipal waste

collection and recycling schemes

Encouraging proper waste disposal practices

Regulating uncontrolled & informal disposal

operation

Collection & utilization of landfill gas

Energy-efficient solid waste collection

Waste stream separation & materials recovery

Local, city-wide, regional recycling schemes

Composting

Source: Dan Hoornweg, WB


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Urban Mitigation Opportunities (contd.)

Urban Transport


Highway Construction

Urban Bus Fleets

Improved Pedestrian Access

Signage, Crossings, Traffic SafetyMass Transit Systems

Modal Integration

Improved Urban Planning

Bus Rapid Transit

Vehicle fleet renewal with high-efficiency

clean vehiclesFiscal & tax regimes, including congestion

charges & engine capacity taxes

Non-Motorized transport

Energy: Energy Efficiency and Renewable Energy


Building: Retrofitting and construction of

public buildings for energy efficiency

Efficient Steet lighting

Energy efficiency in Residential Sector

Renewable Energy

City Planning and Use of sustainable

building materials and products

Change building codes

Government procurement of energy-efficient

goods & services

Energy Efficient Streetlighting


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Industrialized

Country

Developing Country

Funding

TechnologyProjects to reduce GHG

emissions

Certified EmissionReduction (CER)

Emission reduction compared

to an existing baseline

Financing Low Carbon Development

in Cities the CDM Option


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CDM for Urban Development -

already a reality in Quezon City:

Payatas Landfill: First

registered CDM Biogasemission reductionproject in solid wastemanagement in thePhilippines.

Quezon City: agreementwith PANGEAGreenEnergy (Feb 14, 2007, forthe development andimplementation ofPayatas Landfill GasCapture


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Quezon CityQuezon CityQQualityuality CCommunityommunity

Carbon Finance & PoA for City Administration:The Quezon City Experience

Biogas Emissions Reduction Project

Updates

***30,860 CERs for the 1st Monitoring Period (01 March to 31 August 2008) were

issued on June 25, 2009

***2nd Verification to be conducted in September 2009 to cover 01 September

2008 to 30 June 2009GHG avoidance


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Potential Role of Carbon Finance

for Cities A market-based tool that can:

catalyze climate mitigation action;

promote clean technologies Strengthen city level institutions

CDM can generate additional revenues forpriority urban investment programs (in

non-Annex 1 Countries)


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Constraints Limiting Access

by Cities to Carbon Finance Project by Project approach high transaction costs

Few approved methodologies in high priority urban

sectors e.g. transport

Regulations limiting cities ability to enter into long-term

CDM project contracts

Weak institutional capacity at city level to: undertake CDM projects

Integrate CDM into priority city development programs design policies and measures to encourage CDM activities

New Opportunity: CDM Program of Activities

Will require Building Institutional Capacity


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Capacity Development: Key Drivers

Emerging ClimateFinancing

Instruments

- CTF Mission in

PHL: Scope for

Urban

Component?

Cities Development:Shift towards Low

Carbon Paths: QC

SWM, EE

(Building, Street

lighting, others)

UNFCCC Evolving

Regime Post-Kyoto:

How large the Carbon

Market? Programatic?

Capacity and Knowledge

Carbon Finance

Policy Measures

Low Carbon Growth


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Carbon Finance Assist

Cities and Climate Change Program

World Bank Institute Climate Change PracticesCarbon Finance Assist (CFA) Program helps Citiesharvest their carbon assets to mobilize Carbon Financefor Urban Development through:

Knowledge Sharing Carbon Expo Urban Stream with ICLEI, UCLG Symposium on Cities and Climate Finance, Barcelona, May 09

City Twinning for Carbon Finance

Learning Programs Multi-module learning program (under development)

Carbon Finance CB in Emerging Mega Cities: JointC40 CFA Switzerland initiative in 5-6 select mega cities

Customized Hands-on Support to Select Cities

Quezon City: Todays workshop


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Guiding Questions for Today

Identify:

Urban Climate Mititgation Opportunities: What are the highest priority Urban Sectors with Strong

Carbon (Emission Reduction)Potential? Carbon Finance Potential (CDM)

What are Baseline, Emission Reductions,Additionality toestimate Carbon Finance Potential?

Institutional Arrangements

Who is Qualified toA

ct as CoordinatingE

ntity (CE

) forProgram ofActivities (PoA): Private, Public, etc.?

Financing Options How will the underlying program/project be financed?

How will the CDM program/project preparation be financed?


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Starting Point for QC

Urban Climate Mititgation Opportunities: What are the highest priority Urban Sectors with Strong

Carbon (Emission Reduction)Potential?

Solid Waste, Energy Efficiency (Building, Street Lighting)

Carbon FinanceP

otential (CDM) What are Baseline, Emission Reductions,Additionality toestimate Carbon Finance Potential?

To be done! Learn from existingPoAs, UNFCCCGuidelines.

Institutional Arrangements Who is Qualified to Act as Coordinating Entity (CE) for

Program ofActivities (PoA): Private, Public, etc.? To be explored. Learn from PangeaGreen Energy

Financing Options How will the underlying program/project be financed?

How will the CDM program/project preparation be financed?

To be explored. Using experience from WB and QC projects.

Documents

Intro of the Carbon Finance Capacity Building Project