A new financial instrument will allow Brazil to increase its investment in urban infrastructure and make the country more energy efficient. The Financial Instruments for Brazil Energy Efficient Cities – FinBRAZEEC will catalyze resources from the private sector and climate funds to create new markets in the areas of efficient street lighting and industrial energy efficiency.
“With this project, CAIXA has the opportunity to develop innovative financing mechanisms that will attract new investors,” said Antonio Gil Padilha Bernardes Silveira, executive director of sanitation and infrastructure at Caixa. “We will work to support the development, implementation and financing of projects for public lighting in Brazilian municipalities and industrial energy efficiency.”
Brazil’s public sector funding declined in 2015 and 2016, exacerbating the gap in infrastructure financing and highlighting the urgency of bringing private funds into the financing equation. The country’s high urbanization rates (86% in 2018) make investments in urban energy efficiency crucial to address the 2030 SDG’s Energy Efficiency and National Determined Commitments (NDC) goals.
FinBRAZEEC will help Brazil increase investments in urban energy efficiency and meet the goal of improving energy efficiency in the electricity sector by 10% by 2030, set as part of its Nationally Determined Contribution under the Paris Agreement on climate change.
“The FinBRAZEEC project offers one of the first genuine project financing structures in the Brazilian market”, said Martin Raiser, the World Bank Director for Brazil. “Its innovative financing model will help us unlock investment potential in the street lighting and industrial energy efficiency sectors, which had previously been identified as particularly promising for market based solutions. But we hope the example will encourage similar approaches also in other areas”.
Under the project, which includes a US$ 200 million project IBRD loan combined with Green Climate Fund (GCF) and Clean Technology Fund (CTF) resources, the World Bank will partner with Caixa Econômica Federal (CEF), the second largest state-owned financial institution in Latin America and the fourth largest bank in Brazil, as the financial intermediary and borrower of IBRD and climate funds. CEF will lead the syndication of commercial lenders and will establish a Guarantee Facility that will provide partial credit guarantees to the commercial lenders participating in the syndication.
“The creative approach of FinBrazeec’s new financial instruments galvanizes the experience of the World Bank in strengthening a truly domestic, modern and de-risked infrastructure asset-class market for investors,” according to Antonio Barbalho, Practice Manager for Energy, Latin America and the Caribbean. “The World Bank developed a cutting-edge financial and risk mitigation product, opening new windows of opportunity for supporting infrastructure investments,” adds Barbalho. The instrument encompasses best practices in infrastructure project preparation and provides flexible features to mobilize private finance while managing and mitigating risks.
FinBRAZEEC is expected to mobilize more than US$ 1.1 billion for urban energy efficiency investments in Brazil. In addition to the US$200 million IBRD loan, it will count on US$180 million of counterpart funds, as well as US$195 million in climate funds from the GCF and US$25 million in climate funds from CTF. The Project’s goal is to leverage US$ 730 million in commercial debt and equity, making it an excellent example of the World Bank’s strategy of Maximizing Financing for Development.
The Project will also benefit from a strong technical assistance program, supported by a US$ 4 million GCF grant, as well as nearly US$1 million in Bank-executed funds from the Energy Sector Management Assistance Program (ESMAP) and the Global Infrastructure Facility (GIF). These funds will be used to increase CEF’s capacity to implement the innovative financial products and support sub-project pipeline development.
The living air purifiers cities need more of
In our all-too-hectic urban lives, a city park is a great place to unwind. Trees and green spaces have mental health and well-being benefits, on top of being great for relaxation and recreation.
Trees also help reduce air pollution. According to the study Tree and forest effects on air quality and human health in the United States, particulate matter, which is particularly damaging to lungs, is retained on tree surfaces, while leaves act as filters, absorbing polluting gases.
But the study also warns that while trees can mitigate the effect of air pollution, deposits of air pollutants on leaves can also affect photosynthesis “and therefore potentially affect pollution removal by trees”. As with everything, balance is key.
The cooling effect of trees
Trees can also significantly cool temperatures in cities. In hot climates, tree cover can reduce energy expenditure on air conditioning, while driving down the consumption of air polluting fossil fuels that power these cooling systems. Experimental investigations and modelling studies in the United States have shown that shade from trees can reduce the air conditioning costs of detached houses by 20–30 per cent.
“Trees could reduce temperatures in cities up to 8°C, lowering use of air conditioning and related emissions by up to 40 per cent,” says Simone Borelli, an Agroforestry and Urban/Periurban Forestry Officer with the Food and Agriculture Organization of the United Nations.
“When part of a wider landscape mosaic, large green patches within and around cities would also reduce emissions through avoided sprawl and excess mobility requirements,” he adds.
Urban tree-planting has to be done right. Species planted should be ones that are most effective at trapping pollution, typically those with large leaves. Officials also need to account for things like wind patterns and tree spacing. If water is scarce, they’ll want to consider drought-tolerant varieties, and avoid trees that increase pollen and allergies.
Action is all the more important given that urbanization is accelerating—the proportion of people living in cities will be 60 per cent in 2030 and 66 per cent in 2050. Nearly 90 per cent of this increase will occur in Africa and Asia. To address the impacts of this rapid growth and the related challenges, a large-scale effort is needed.
Building the Great Green Wall of Cities
Nearly 8,000 km long and 15 km wide, the Great Green Wall is an African-led movement of epic proportions initiated in 2007 to green the entire width of northern Africa, a semi-arid region extending from Senegal to Djibouti. A decade in and roughly 15 per cent under way, the initiative is slowly bringing life back to some of Africa’s degraded landscapes, providing food security, jobs and a reason to stay for the millions who live along its path.
An initiative of this nature in urban areas is being developed by the Food and Agriculture Organization and other partners in preparation for the UN Climate Summit in September 2019. It aims to create up to 500,000 hectares of new urban forests and restore or maintain up to 300,000 ha of existing natural forests in and around 90 cities of the Sahel and Central Asia by 2030. Once established, this “Great Green Wall of Cities” would capture 0.5–5 gigatonnes of carbon dioxide per year and stock carbon for centuries.
On 1 March 2019 the UN General Assembly established the UN Decade on Ecosystem Restoration 2021-2030, which should give further impetus to tree-planting efforts.
“UN Environment promotes the planting of trees as a key way to mitigate climate change and boost land-based biodiversity, 80 per cent of which is in forests,” says Tim Christophersen, head of UN Environment’s Freshwater, Land and Climate Branch, and Chair of the Global Partnership on Forest and Landscape Restoration. “We are working with partners across the planet to boost tree planting for ecosystem restoration. There is scope for planting one trillion more trees, in addition to the 3 trillion that already exist on Earth. But it has to be done right; planting indigenous trees, supported by local communities, is a good way to go.”
Let the stones gather some moss
In those forest ecosystems, trees are not alone in cleaning the air. An ambitious project by Greencity Solutions in Berlin, Germany, seeks to marry high-tech applications with another natural air purifier: moss.
“The ability of certain moss cultures to filter pollutants such as particulate matter and nitrogen oxides from the air makes them ideal natural air purifiers,” says Greencity Solutions.
“But in cities, where air purification is a great challenge, mosses are barely able to survive due to their need for water and shade. This problem can be solved by connecting different mosses with fully automated water and nutrient provision based on unique Internet of things technology,” it explains.
Or by planting more trees that will provide the cover and humidity, that will help moss take hold and grow.
New study expected to chart Melaka’s pathway to urban sustainability
Within the framework of the ‘Sustainable City Development in Malaysia’ project, which seeks to address the country’s urban challenges and which is being implemented by the United Nations Industrial Development Organization (UNIDO), executed by the Malaysian Industry-Government Group for High Technology (MIGHT), and supported by the Global Environment Facility (GEF), the ‘Melaka Sustainability Outlook Diagnostic: Pathway to Urban Sustainability’ was launched today. The report is the result of an assessment performed by the World Bank’s Global Platform for Sustainable Cities (GPSC) in which Melaka actively participates. The study will inform the Melaka State’s Structure Plan and its long-term planning document; it will also offer key recommendations for the State to chart its own pathway to urban sustainability.
The diagnostic consists of an overview report containing a policy brief, an executive summary and a benchmark assessment as well as six supporting reports that cover each of the diagnostic’s dimensions, namely Reinforcing Melaka’s Economic Success; Integrating Environmental Plans; Enhancing Housing and Services; Shaping a Compact, Efficient, and Harmonious Urban Form; Shifting Melaka’s Mobility Modal Split; and Demonstrating Fiscal Sustainability.
One of the report’s recommendations calls for the State and the City of Melaka to obtain a credit rating; accordingly, both entities already agreed to undergo a formal rating assessment with UNIDO’s support. Depending on the assessment’ result, they could tap capital markets to finance future infrastructure projects. Moreover, another recommendation calls for the City of Melaka to complete a climate-smart capital investment plan for which the city indicated its willingness, with UNIDO coordinating local and national inputs to raise funds.
Being one of most urbanized countries in Asia, 75 percent of Malaysians reside in urban areas and over 90 percent of the national economic activities are conducted in cities. Rapid urbanization has created tremendous economic opportunities for the country, but has also put enormous pressure on its urban infrastructure and services.
Make Dhaka Walkable
When it comes to urban mobility, Global South cities suffer significant challenges such as lack of transport equity and poor accessibility for the urban poor. On the March of 25-28, 2019, the Share the Road Programme (a partnership between UN Environment and FIA Foundation) participated in a workshop dubbed ‘make Dhaka walkable’ held in Dhaka, Bangladesh, organized by the Sustainable Transport Equity Partnerships (STEPS) – a global alliance of researchers and practitioners including the Walk21 Foundation, UN Environment and the University of Leeds. The organizations are committed to identifying the essential steps decision makers and multi-disciplinary teams of experts must collectively take to meet the needs of people walking. STEPS aims to promote urban transport systems that can meet the travel needs of low income, city populations in the Global South.
Despite walking making up to 75% of all journeys, the conditions in which people walk in Dhaka are often unsafe and unpleasant. In order to highlight the needs of pedestrians in Dhaka, the meeting brought together engineers, planners, civil rights activists, NGOs, social scientists and many more for a real interdisciplinary perspective of the transferability of global walkability practices.
The opening workshop included representatives from Dhaka Transport Coordination Authority (DTCA), Road Transport and Highways Division, Ministry of Road Transport and Bridges, University of Asia Pacific and others to help push the local walking agenda forward.
One of the gaps identified through the STEPS programme is the severe inadequacies of non-motorized transport in transport policy in the Global South. The Share the Road programme shared knowledge on the experience of non-motorized transport in Nairobi -the small initiatives needed to make big differences, the need to have NMT users included in the planning of road construction projects, and the importance of securing a percentage in transport budgets. The vital and economic aspects of walkability projects cannot be ignored.
Having discussed the ‘eight steps to walkable Dhaka’ facilitated by Walk21, the workshop was brought to a close by Professor Jamilur Choudhury from University of Asia Pacific who gave some personal reflections on the development of transport policy and walking in the city, and stated his commitment to moving the walkability agenda forward locally.
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