Protection notice / Copyright notice© Siemens AG 2008. All rights reserved. Megacity Challenges Stefan Denig Head of Issue Management Siemens AG

Protection notice / Copyright notice© Siemens AG 2008. All rights reserved.

MegacityChallenges

Stefan DenigHead of Issue Management

Siemens AG

Page 2 Oktober 2008 © Siemens AG / 2008. All rights reserved

Cities have to face serious sustainablity challenges

Mid-2007, 50% of the world population will be living in cities

Urbanization

Cities directly or indirectly account for 60% of world's water use

Increasing scarcityof natural resources

Traffic congestion on city streets in Western Europe will increase 188% by 2010

Increasing mobility

Cities account for 80% of theworld’s greenhouse gases, while covering only 0.4% of earth's surface

Growing need forenvironmental care Malfunctions of critical infra-

structures pose high risks to urban economies: in 2003 3-day power outage in New York City caused loss of 1 bn USD

Growing demand forsafety and security

Urban air pollution causes an estimated 130,000 premature deaths each year in developing countries (Source: WHO)

Growing demand forhealth- and elder care

Until 2030, 90% of the world's population growth will occur in cities (Source: UN)

Demographic change


Urban development is a key topic of Siemens’ research programs

Research approach

Research project undertaken with McKinsey & Company and the Economist Intelligence Unit

Describes a series of technological levers of varying effectiveness, and with different cost implications, which can all contribute to greater environmental sustainability in cities

Looks at financial andother implementation barriers to these technologies as well as selected strategies to overcome them

Sustainable Urban Infrastructure

Global research project undertaken by MRC McLean Hazel and Globescan, with the support of Siemens

More than 500 public and private sector experts from 25 global cities interviewed

Shows how challenges and solution approaches are prioritized for five infrastructures (transpor-tation, energy, water, health, safety & security) as well as for city governance and finance

Megacity Challenges


Megacity challenges: Survey of megacity decision makers in worlds’ 25 largest cities

n=522 across 25 cities during Oct./Nov. 2006


Importance for Economic AttractivenessUnprompted Percentages (n=522)

Transportation Seen as Major Driver of City Competitiveness

(Latin America 21%)

(Africa 13%)

(Africa 13%)

(Latin America 21%)

(India / China 11%)

(Asia 9% and Latin America 8%)

(India/China 12% and Africa 10%)

(India/China 12% and Latin America 6%)


Environment in Top Tier of Infrastructure Priorities

Need for InvestmentAverage % of “Very High” Across All Cities


Environment matters . . .

Mass Transit is the PriorityPredicted by Transport Experts

Strong Role for RenewablesPredicted by Electricity Experts


. . . but may be sacrificed for growth

Views of Knowledgeable Stakeholders


Cities emphasize supply over demand management

• With demand constantly outstripping supply, there is a strong case for wider adoption of demand management strategies

Solutions to Transportation ProblemsUnprompted Mentions of Transport Experts (%)


Solution approaches:It’s not all about money, it’s about management

• Political boundaries and silo-based thinking get in the way of integrated solutions to infrastructure challenges in metro areas

Reasons for Problems City Managers Have to FaceUnprompted Mentions of Knowledgeable Stakeholders (%)


Public sector must lead and control, but a role seen for the private sector

• Strong support for public ownership of infrastructure (except electricity)

• Private sector operation valued for delivering efficiency, ahead of funding

Role of Public Private Partnerships and the Private Sector Percentage agreement by stakeholder group

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Protection notice / Copyright notice© Siemens AG 2008. All rights reserved. Megacity Challenges Stefan Denig Head of Issue Management Siemens AG