SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY EUROPEAN COMMISSION. Urban Policy within the framework of EU Cohesion Policy

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1 Urban Policy within the framework of EU Cohesion Policy /09/2007 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY Marco Orani European Commission Directorate General for 1

2 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICy The urban dimension is the main territorial dimension of Cohesion Policy Important reference are done to the urban dimension in the Regulations of Structural Funds Priorities for urban development are indicated in the Guidelines for Cohesion 2

3 Mainstreaming the Urban Actions in Cohesion Policy Approach NSRF should include an urban strategy Operational Programmes, concerning regions including urban areas, should contain objectives and operations aiming to urban sustainable development 3

4 Community Strategic Guidelines for Cohesion specify the main objectives of Structural Funds intervention in Urban Areas Cities as motors for regional development and competitiveness Internal cohesion within cities and balanced urban development Polycentric urban development (growth poles, small and medium towns, urban-rural links) 4

5 Cities as motors for regional development and competitiveness Cities have a substantially higher productivity that non-urban areas Strong positive correlation between economic growth and urban dimension Importance of economies of scale, clustering, continuous creation of new networks Links between research institutions, enterprises, administrations (triple helix) 5

6 Cities as motors for regional development and competitiveness Cities are economic subjects which actively operate to attract firms and investors and to create the conditions for their improved competitiveness. Firms rely on externalities in the form of public goods (infrastructures, services, environmental and cultural assets) and on agglomeration and networking advantages Metropolitan areas compete between them but cooperation between cities is a game with a positive sum 6

7 Urban cohesion and balanced urban development Avoid social segregation Control urban sprawl and land use Ensure adequate services of general interest (health, education,) Put in place effective and balanced urban systems: urban transport, urban waste management 7

8 Polycentric Urban developmant Ensure the links between urban and rural areas Promote the development of medium and small cities Facilitate the creation of networks between cities 8

9 Strategic approach In the absence of a strong strategic approach, an inertial scenario will prevail. This scenario will bring to an unsustainable development of Urban Areas. A strong strategic approach is necessary in order to reach the objective s linked to CO² emissions, urban mobility, avoidance of segregation, controlled use of urban and peri-urban land. 9

10 Sustainable Urban Development Planning and governance Urban sustainable development requires: Careful planning based on a vision of the future of the urban area and of what this area is and might become (creating a better future for the city based on shared values); An effective governance, implying all the relevant stakeholders public and private and based on a shared framework 10

11 Urban Integrated development: governance and planning Planning to be established for the functional urban area The functional urban area may not coincide with the administrative city Appropriate governance : Single administration (municipality, city-region, metropolitan government) or amalgamation of urban authorities, inter-municipal single purpose or multi purpose joint authority, collaborative framework Links between the different levels of government. based on appropriate instruments (delegation, contrat de plan, programme agreement) 11

12 Strategy for the whole urban area: a master plan A strategic plan of the whole urban or metropolitan area should be established which analyses the strengths and the weaknesses defines consistent medium to long term objectives f based on strategic and shared vision of the future of the city coordinates the different neighbourhood, sectoral and technical plans coordinates the use of instruments by public and private stakeholders is a frame for the coordination of the public and private interventions in the urban area. 12

13 Sustainable urban development Planning tools The strategic master plan implemented via: Sectoral operations, concerning the main urban systems, as transport, waste and water management, energy management and the services of general interest (health,education, etc) Operations aiming at improving the innovation capacity ( triple helix) Operations aiming at selectively regenerate urban areas as qualitative milieu for economic development, social inclusion, housing and cultural activity Each one of this operation should be implemented on the base of an integrated operational plan. 13

14 Sustainable Urban Development Integrated approach The strategic plan and the plans of the operations should be: Integrated: including all the necessary measures, both hard and soft Partnership: public sector, businesses, civil society Bottom-up: close to citizens, connecting to broader policies Outward looking: interaction, learning 14

15 Sustainable Urban Development and sectoral policies Complementarity Macro-level/ national policies National policies / strategies OPERATIONS SKILS research ZONE BASED SME s Environm. A Urban Transpourt Urban Development Strategy: master plan 15

16 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY The Regulations of Structural Funds and Sustainable Urban Development

17 An enlarged scope for eligibility under ERDF Supporting integrated local and urban development through: financing the urban urban infrastructures: urban transport systems, water and waste management, cultural heritage, IT and research infrastructures, Development of endogenous potential by measures which support local development. Housing (Art. 7.2) Area-based actions aiming at sustained urban development (Article 8) Urban development funds (art 44 Gen Reg) 17

18 Enlarged ERDF eligibility: Sustainable urban development (art 8 of Feder regulation) The ERDF may support the development of participative, integrated and sustainable operations to tackle the high concentration of economic, environmental and social problems affecting urban areas. These operations may include activities such as: the rehabilitation of the physical environment, brownfield redevelopment, the development of natural and cultural heritage, the promotion of entrepreneurship, local employment and community development, and the provision of services to the population. 18

19 Enlarged ERDF eligibility: Financial Engineering The Structural Funds may support financial engineering instruments providing risk capital funds, guarantee funds and loan funds for enterprises, primarily small and mediumsized ones, for urban development funds, that is, funds investing in PPP and other projects included in an integrated plan for sustainable urban development. 19

20 Financial Engineering The Commission is offering to the MS a ready made mechanisms: JESSICA: Joint European Support for Sustainable Investment in City Areas JEREMIE: Joint European Resources for Micro to Medium Enterprises 20

21 Enlarged ERDF eligibility: Housing Eligible for the new MS, when programmed within the framework of an integrated urban development operation or priority axis for areas experiencing or threatened by physical deterioration and social exclusion. Submitted to a ceiling of 3% per program and of 2% of the total ERDF allocation Limited to multi-family housing or buildings owned by public authorities or non profit operators for use as housing designated for low income households or people with special needs 21

22 Enlarged ERDF eligibility: Housing The areas selected for housing operations shall comply with criteria, defined in the implementing regulation. Only the following interventions shall be eligible (a) renovation of the common parts of multifamily residential buildings, : (b) delivery of modern social housing of good quality through renovation and change of use of existing buildings owned by public authorities or non-profit operators. 22

23 Cohesion Fund The Cohesion Fund can provide assistance to actions in the field of environment falling within the priorities assigned to the Community environmental protection policy ( urban waste and water management in particular) ; the Fund may also intervene in areas related to sustainable development which clearly present environmental benefits, namely energy efficiency and renewable energy and, clean urban transport and public transport 23

24 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY Urban interventions on the Operational Programmes

25 Urban interventions in the Operational Programmes: a first assesment Generally indicate the approach proposed to sustainable urban development; Often contain a priority axis for urban development; In most cases indicate the selection criteria for the selection of urban areas; Rarely indicate how the urban authorities are involved in planning and implementation Very rarely indicate the procedure for subdelegating to urban authorities, possibly by means of a global grant. 25

26 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY Conclusions:looking forward

27 OP Planning It is essential that urban objectives be pursued putting in place the appropriate planning and management tools. Medium-to long-term development plans for sustainable urban development should be prepared for the main cities, based on a shared vision of the future of the cities. These plans should be implemented through sectoral operational plans (waste, urban transport) and through operational plans concerning specific districts or neighbourhoods. 27

28 OP Urban operations For areas of severe deprivation, focusing on social inclusion, we wish to develop the approach of the URBAN programmes which have included in an integrated programme the social and economic dimension, the natural and physical environment. We wish to see integrated operations promoting the urban environment and avoiding uncontrolled urban growth and urban sprawl We wish to pursue a sustainable development strategy of urban and metropolitan areas, concerning the main urban systems: urban transport, energy management, waste management 28

29 OP Urban competitiveness The actions aiming the competitiveness of the urban economy should ensure synergy and coherence between investments in education, in Research and measures addressed to enterprises. It should be taken into account that an attractive urban environment is an important location factor. 29

30 OP Partnership and Governance An appropriate multilevel governance of the urban intervention, with the participation of all relevant stakeholders and a clear definition of responsibilities and competences. The challenge is to set up systems that take the best experiences gained at European level into account while respecting the specific institutional context of various Member States. 30

31 OP Capacity building and skills development Capacity building and technical assistance measures should be put in place in order to increase the management capacities of urban and local authorities Skills development plans should be prepared 31

32 OP Exchange of experiences and networking An improved exchange of experience and knowhow between cities can increase the quality of urban operations; In the next planning period, the URBACT programme will contribute to the Regions for economic change initiatives, promoting networks of cities on strategic themes; Such networks should aim at identifying and preparing projects or operations to be financed in the mainstream programmes. Technical assistance can be mobilised to help cities and regions to implement the identified projects or operations. 32

33 SUSTAINABLE URBAN DEVELOPMENT AND COHESION POLICY Thank you for your attention

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