Toward Sustainable Urban Infrastructure in the Asia- Pacific Region

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1 Toward Sustainable Urban Infrastructure in the Asia- Pacific Region Donovan Storey Chief, Sustainable Urban Development, Environment & Development Division National Workshop on Sustainable Urban Development in the Philippines, Manila, September 2014

2 The Asia-Pacific: Urban growth & its fragile resource base In 2014 the Asia-Pacific region has over 2 billion urban citizens Since 2000 an astonishing increase of 630 million people in cities in the ESCAP region A region of megacities - yet largest urban population & fastest growth is in small-medium size towns & cities Mix of migration, population growth & reclassification Economic transformation correlated with urbanization Cities disproportionately contribute to economic growth relative to population but they also consume vast resources The Asia-Pacific region utilizes three times the energy input required for proportionate GDP growth than any other region Growth underpinned by inefficiency and resource waste

3 The Asia-Pacific urban challenge and opportunity The region s urban areas have spatially large consumption, production and resource footprints: it is an urban growth pattern defined by inefficiency and waste The region s urban areas are increasing vulnerable to climate change and disasters, which threaten to set back the region s development gains What solutions and strategies can be implemented at the city, national and regional level to close the gaps between urban growth patterns, sustainability, quality of life and inclusive development? How can meeting critical infrastructure gaps, particularly public infrastructure and housing contribute to a greener and more resilient urban and national future?

4 Cities as resource consumers 1 billion new consumers in emerging market cities by 2025 Annual consumption in emerging cities is set to rise by $10 trillion by 2050

5 Infrastructure challenges for Green Economy Infrastructure is a critical determinant of energy consumption, greenhouse gas emissions and environmental impact in general It has a long life span, which can create a lock-in effect (energy intensity, physical structure etc) for decades Need then to transition now to green economy based upon eco-efficient infrastructure design and approaches for future generations

6 The Increasing Carbon Footprint of Urban Asia Cities increasingly dominate & drive economic and development transformation But this development has a high cost Globally, cities account for 67% of all energy use and emit 71% of all GHG The carbon footprint of Asian cities is rapidly increasing, several factors: Urban expansion & suburbanisation Rising consumerism & changing lifestyles Poor urban planning, management and governance Lack of effective institutional relationships

7 Climate Change Vulnerability of the Region Climate Change Vulnerability Index 2013 Manila is the second highest city which are at risk caused by climate change Source:

8 The World s Infrastructure Gap

9 Closing Gaps for a Sustainable Urban Future Through new thinking & commitment such gaps can be closed which support inclusive, sustainable and resilient cities Ecology: Infrastructure development should contribute to greening cities Green economics: Infrastructure development should strengthen & deepen urban economies, and livelihood opportunities Governance: Through a more engaged civic involvement, through greater cross-sectoral coordination and planning Socio-cultural: Outcomes should build upon and enrich cultural norms and values, and create benefits for society as a whole through the built-environment Resilience: Through strengthening cities but also communities, and providing greater capacity & resources to recover from disaster Adapted from Paul James, University of Western Sydney

10 Understanding urban systems, vulnerability & climate change Meeting the region s infrastructure gaps, need for resilience, eradicating poverty and dealing with projected impacts of climate change require holistic & integrated approaches Source: Sam Kernaghan & Mark Vassarotti

11 9 Essential transformations 1. Change the way we design cities: a paradigm shift in which sustainability moves from the periphery to centre of planning 2. Change the way people move: from private cars to public transport, from road to rail, mitigating need for movement 3. Change the way we design and operate buildings: from energy wasting to energy creating 4. Change the way we produce, transport and consume energy: improve the efficiency of the energy system and diversify to renewable energy sources 5. Change the way water resources are managed: develop ecoefficient approaches to water resources 6. Change the way solid waste is managed: from a cost to a resource 7. Address patterns of exclusion so that investment in people becomes the next driver of growth 8. Change the way cities are governed and broaden the stakeholders 9. Change and strengthen the financing sources for urban development

12 Challenges and Opportunities Energy-water efficiency in industry Greening Industries Enhancing industrial competitiveness Sustainable urban development Improving resource accessibility basic needs for life Reducing negative environmental impacts Improving public health

13 The Philippine Context

14 Urbanization in the Philippines Urban population in the Philippines: - 37% of total population (1980) - 46% of total population (2030) (Source: UNDESA, 2014)

15 Natural Disaster Vulnerability of the Philippines Source:

16 The Economic Cost Source:

17 Infrastructure Gaps in the Philippines Infrastructure focus for the government s development plan. In 2014/15 15 major projects worth a total US$14 billion A tripling of public spending as % of GDP to 5% over Aquino s term: most to transport, energy and airports Financing: Govt; ODA & emphasis on PPP A housing gap of 3.6 million units in 2010 to 5.8m in 2016 (NHMFC, 2013) Natural disasters are increasing this gap & vulnerable areas limit land available (HUDCC) DepEd to build & repair 50,000+ classrooms from 2014 There are opportunities to close gaps through green, resilient and pro-poor responses: to build better & more sustainable cities

18 Importance of Integrated Sustainable Urban Infrastructure Urbanization Urbanization results in informality & vulnerability to disasters, larger consumption footprint which contribute to climate change Sustainable Urban Infrastructure (Resilient and Eco-Efficient) Urbanization entails increased demand of resources and infrastructure. Climate Change Impacts (natural disasters) Lack of Natural Resources / Infrastructure (energy/water) Lack of drainage infrastructure led to larger flood damage. Natural disasters degrade natural resources Source: Prof. Dr.-Ing. Theo KÖTTER (2004), World Bank (2005), UN-HABITAT (2007)

19 Integrating Resilience into Urban Infrastructure Resilience The ability of system and its component parts to anticipate, absorb, accommodate, or recover from the effects of a hazardous event in a timely and efficient manner, including through ensuring the preservation, restoration, or improvement of its essential basic structures and functions (IPCC 2012). Infrastructure plays an important role in the development of countries. In many developing countries, evolving infrastructure can be particularly climate-sensitive and therefore highly vulnerable to the destruction that occurs due to natural disasters. (UNDP 2010). Various efforts for integrating resilience into infrastructures have been placed : - Climate-Resilient Infrastructure by UNDP - Critical Infrastructure Resilience Strategy by Australian Government - Climate Resilience Infrastructure Development Facility (CRIDF) by DfID - Climate Resilient Infrastructure Services (CRIS) by USAID

20 Integrating Resilience into Urban Infrastructure Means of integrating resilience into Urban infrastructure For Informal Settlement Upgrading 1) Integrating Disaster Risk Management (DRM) and green building materials into the work programs of organizations dedicated to informal settlement upgrading. 2) Strengthening connections between the informal and formal sectors, between rural and urban communities. 3) Advocating for the revision of shelter policy to include green and resilient materials 4) Sustained programs for capacity building of informal settlement communities. Source: Adapted from ADPC (2013)

21 Integrating Resilience into Urban Infrastructure Case for informal settlement upgrading Bang Bua squatter community, in northern Bangkok, Thailand The Baan Mankong National Collective Housing Program aims at addressing physical and socio-economic vulnerabilities and providing housing security to urban slum dwellers whose tenure is insecure or not legally recognized. Bang Bua community has over time reduced vulnerability by: 1) Factoring risk information into layout and decisions. The community sought to ensure that design and layout considerations included risk information. 2) Implementing structural strengthening. Structural measures focused on establishing a resilient structural housing design in compliance with building codes and in response to risk assessment findings. 3) Ensuring housing security. An affordable long-term leasing agreement was reached with the Treasury Department, and the existing community savings groups successfully mobilized the community fund reserve to ensure consistent payment. During the 2011 floods, the Bang Bua community was not as affected as other informal settlements in the Bangkok area. Source: ADPC (2013)

22 Affordable, Green & Resilient Housing Joint ESCAP & Hilti Foundation project in the Philippines to develop local sustainable value chains & social enterprises producing affordable, green (i.e. resource & energy efficient, pollution min.) building materials & disaster resilient & climate sensitive building systems Increased use of affordable & green building designs & technologies & related site & infrastructure development supporting sustainable urban development (retrofitting, upgrading, reducing housing backlog, holistic settlement planning, green infrastructure) through increased capacity

23 Integrating Eco-efficiency into Urban Infrastructure Eco-efficiency The concept of eco-efficiency seeks to develop synergies between the economy and the environment rather than just balance the trade-offs. An ecoefficient approach to urban infrastructure development can help governments save precious financial resources. Eco-efficiency can drive green growth and green economy. (UNESCAP, 2011) Source: UNESCAP (2011)

24 Integrating Eco-efficiency into Urban Infrastructure Strategies for integrating eco-efficiency into urban infrastructure 1. Driving Change: Leadership and political commitment - Political commitment and leadership are essential for moving beyond ad hoc decision-making and sector-specific policies, allowing governments to respond to challenges and creating opportunities for the long term. 2. Bridging the gap: Long-term vision and transition management - Only governments can bridge the time gap between short -term costs and long-term benefits of eco-efficient infrastructure. 3. Building the business case: Leveraging financing - Governments need to build the business case for eco-efficient infrastructure. Governments need to tilt the balance in favour of sustainable practices and channel private sector investment into eco-efficient infrastructure project (e.g. PIMAC in Republic of Korea). Source: UNESCAP (2013)

25 Integrating Eco-efficiency into Urban Infrastructure Strategies for integrating eco-efficiency into urban infrastructure 4. Reshaping governance: Integration and coordination - Promoting eco-efficient infrastructure requires looking at infrastructure networks as a whole system, adopting a life-cycle approach and prioritizing policies with multiple returns (economic, social and environmental). a) Vertical integration: Coordination between central and local governments b) Horizontal integration: Coordination among relevant actors 5. Leveraging public support: Public participation - While strong leadership is required to steer cities in an eco-efficient direction, public participation in planning and designing infrastructure can drive change. Source: UNESCAP (2013)

26 The Opportunities Fundamentally the shift is about how cities are to develop Cities that embark on a resource efficient and low carbon transformation will become more livable, competitive, sustainable and ultimately more successful Change requires breaking away from brown growth traps A quantum shift in thinking and action: governance, innovation, technology and enablers (esp. fiscal policy) Regional cooperation mechanisms: enhancing institutional strengthening & development; technology transfer; mobilization of finance: new normative frameworks for low-carbon urban development based on regional platforms of exchange