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Urban Development

Brazil to power up investments in street lighting and energy efficiency

MD Staff

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Can you imagine how much money and natural resources could be saved if the world adopted energy efficiency as a priority in sectors such as public lighting or industry?

Although this is an essential concept for the future of infrastructure, it’s still little known in countries such as Brazil. In 2016, for example, when the American Council for an Energy-Efficient Economy (ACEEE) examined policies and performance of the world’s 23 top energy-consuming countries, the Latin American giant ranked 22nd.

Insufficient investment in infrastructure helps explain this outcome, as well as Brazil’s lagging economic growth over the past seven years. Over the last two decades, investments were well below the estimated cost to replace or repair existing infrastructure (estimated at 3 percent of GDP). Energy saw investments decrease from above 2 percent of GDP in the 1970s to 0.7 percent of GDP in 2016, according to a recent report.

However, a new initiative – combining financing and technology innovation – can help fill this gap, and render Brazil’s energy sector more efficient and sustainable. Over the next 15 years, the World Bank’s Financial Instruments for Brazil Energy Efficient Cities (FinBRAZEEC) Project will focus on two urban sectors that have the potential to attract private sector investment at scale: efficient street lighting and industrial energy efficiency.

With FinBRAZEEC, Brazilian cities can create subprojects to completely replace the current sodium-vapor lamps for LED. Also, industries will be able to update pumping systems, engines, furnaces and other types of equipment. Given Brazil’s 86% urbanization rate, these initiatives have tremendous potential to reduce energy use, pollution and greenhouse gas emissions.

Risk mitigation

To enable them, FinBRAZEEC is piloting one of the most innovative financing structures the World Bank has developed to date. 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 project’s financial intermediary.

Under the project, CEF will lead the co-lending arrangement comprising the Green Climate Fund (GCF), CEF, and commercial lenders to eligible efficient public street lighting and industrial energy efficiency projects.

In order to mitigate the credit risk of energy efficiency projects, commercial lenders will benefit from a partial credit guarantee offered by CEF. The guarantee product will be backstopped by a $200 million contingent loan from the World Bank and grants from the GCF and the Clean Technology Fund (CTF) – $195 million and $20 million, respectively –, providing additional credit enhancement by supporting the facility, when needed, to meet its debt obligations to commercial lenders.

Altogether, this financing facility is expected to make more than $1 billion available for urban energy efficiency projects, leveraging the concessional financing being provided by the World Bank and other international organizations.

FinBRAZEEC is expected to serve as a demonstration model for leveraging private sector capital for clean energy investments in Brazil. Once the model is proven, it can be replicated in other countries, and in other sectors in Brazil. Moreover, it will provide an example of how Brazil’s now scarce public-sector resources, particularly those of the public banks, can be used to leverage private sector capital for infrastructure investments.

Currently, while there is private investment in infrastructure, the majority – around 70 percent – comes from public sources, including state banks, where resources are increasingly limited.

Mobilizing private sector investments not only are essential to help Brazil fill its infrastructure gap: without them, meeting the United Nations Sustainable Development Goals (SDGs) targets by 2030 will be much harder. The United Nations Conference on Trade and Development (UNCTAD) estimates that developing countries alone would require annual investments of between 3.3 trillion and 4.5 trillion dollars. About 2.5 billion dollars a year are missing to fill that need.

Climate change contributions

FinBRAZEEC is expected to help Brazil avoid the equivalent of 12.5 million tons of CO2 equivalent over the life of the project, as well as to help the country meet its goal of improving energy efficiency in the power sector by 10 percent by 2030, set as part of its Nationally Determined Contribution under the Paris Agreement on climate change.

The facility will be complemented by support for technical assistance and project preparation being provided by the GCF, the Global Infrastructure Facility, and the World Bank’s Energy Sector Management Assistance Program (ESMAP).

FinBRAZEEC draws on a series of lessons learned from previous World Bank experience in Brazil. ESMAP technical assistance helped identify viable business models for investment in urban street lighting, industries, transport and public buildings, providing useful tools and lessons for designing the FinBRAZEEC project.

The project also builds on the experience of another recent World Bank contingent loan for Uruguay’s national power company, which provided the government with a new financial mechanism to mitigate the impact of drought – and resulting decrease in hydroelectric energy generation – on the cost of electricity and on public sector accounts.

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Urban Development

BRIDGE for Cities 4.0: Connecting Cities through the New Industrial Revolution

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photo: UNIDO

Organized jointly by the United Nations Industrial Development Organization (UNIDO) and the Finance Center for South-South Cooperation (FCSSC), “BRIDGE for Cities 4.0 – Connecting Cities through the New Industrial Revolution” took place in Vienna from 3 to 4 September.

An annual event devoted to encourage knowledge sharing and connectivity among cities, this year’s edition of the event explored the impact of the 4th Industrial Revolution (4IR) and how technology-driven innovation can facilitate the transition towards smart city development.

The two-day event attracted around 800 Participants from over 100 countries. Besides high-level plenaries on particular aspects of the 4IR (urban innovation hubs, circular economy, smart mobility), a Mayors Roundtable led to the adoption of a Declaration of Intent by 15 Cities expressing strong interest to work with UNIDO. A Business Roundtable resulted in the formulation of a Resilience Framework for Projects along the Belt and Road.

To enrich the event, two specific sessions were designed to match regions and cities with similar development challenges. One focused on Metropolis GZM, Poland; Sverdlovsk region, Russia and the Ruhr region in Germany. All three region share a common past linked to mining and heavy industry and now are transitioning to an economic model based on knowledge and innovation. The second matched Shenzhen, China and Phnom Penh, Cambodia, on the basis of the existing sister city agreement. Shenzhen is nowadays a model for cities in the developing world and Phnom Penh is taking advantage of the expertise available in China while developing its city master plan. This cooperation was sealed through an exchange of letters between the two cities’ representatives.

In parallel, the innovations presented by exhibitors visualized practical solutions, and City-Business workshops facilitated partnerships among previous case cities and other stakeholders. The interaction with the famous humanoid Sophia Robot provided participants with an opportunity to obtain first-hand insights regarding the possibilities and opportunities of artificial intelligence (AI) today.

The event has been the first of UNIDO at the Vienna International Centre to receive the Austrian Ecolabel for Green Meetings and Green Events.

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Urban Development

São Paulo to Host International Conference on Sustainable Cities

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The city of São Paulo will host the conference “Catalyzing Sustainable Urban Futures” from September 16 to 20, 2019 at Ibirapuera Park, bringing together mayors, public managers, and urban practitioners from across Brazil and abroad. Made possible by a partnership between the Global Platform for Sustainable Cities (GPSC) led by the World Bank, São Paulo City Hall, and the Sustainable Cities Program, the event will host the 3rd Global Meeting of the Global Platform for Sustainable Cities and the 2nd International Conference on Sustainable Cities.

Press are invited to sessions on September 17 afternoon, opening day (September 18) and throughout the rest of the week. Register by September 6:

The event will feature a Mayors’ Roundtable on the opening day (September 18) chaired by São Paulo Mayor Bruno Covas, where Brazilian and international city leaders will discuss their unique approaches to sustainable urban development.

“São Paulo is moving towards an increasingly sustainable future by enacting strategic measures to benefit our population. Hosting the 3rd Global Meeting of the Global Platform for Sustainable Cities to discuss the topic with domestic and international experts and officials helps us achieve our goal of further contributing to the sustainable urban development of our city,” stated Mr. Covas.

“Cities are where the future is being built. Rapid urbanization brings opportunities – but also unprecedented challenges such as increasing disaster risks exacerbated by climate change – to cities and their residents, especially the poor and vulnerable,” says Sameh Wahba, Global Director, Urban, Disaster Risk Management, Resilience and Land Global Practice, World Bank.“The 3rd Global Meeting of the Global Platform for Sustainable Cities will bring together cities around the world to share innovative and integrated solutions to address those challenges. We look forward to working with our partners in Brazil and worldwide to link knowledge to investment in building low-carbon and sustainable cities for all.”

In the span of one week, nine thematic sessions will focus on topics central to city planning and management, including: biodiversity; financing sustainable urban development; gender and race inequalities; generating opportunities, work, and income for residents; geospatial data; inclusiveness and affordable housing; social participation; transit-oriented development; and urban regeneration. These topics are closely aligned with the 17 Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and the GPSC’s three knowledge pillars: sustainability, integrated urban planning and management, and municipal finance.

“For us who work with a focus on municipal management, the opportunity to bring together cities that are taking action and creating policies toward the 2030 Agenda in different parts of the world has a unique meaning. We strive to share the most modern initiatives to improve the sustainability of our urban development processes and residents’ quality of life in Brazilian cities. We believe these practices can also be inspiring elsewhere in the world and we look forward to sharing this knowledge at the conference,” said Jorge Abrahão, General Coordinator of the Sustainable Cities Program.

In addition to participants from Brazil, the event will gather representatives from GPSC’s 28 cities in 11 countries, along with its knowledge and investment partners. The estimated audience is 800 people, including urban leaders, civil servants, urban practitioners, academic researchers, journalists, experts from financial institutions, international organizations, the UN, private sector leaders, and civil society organizations. The conference “Catalyzing Sustainable Urban Futures” is supported by the Global Environment Facility (GEF).

WHAT
Catalyzing Sustainable Urban Futures:
3rd Global Meeting of the Global Platform for Sustainable Cities and
2nd International Conference on Sustainable Cities

WHO

  • Bruno Covas, Mayor of São Paulo
  • Jorge Abrahão, General Coordinator of the Sustainable Cities Program
  • Sameh Wahba, Global Director, World Bank Group

See a full list of speakers here.

WHEN: September 16–20, 2019
Open to press starting Sept 17 afternoon; official opening on Sept 18.

WHERE: Ibirapuera Park, São Paulo, Brazil

  • Sept 17 afternoon – UMAPAZ (Av. Quarto Centenário, 1268 – Vila Mariana, São Paulo – SP, 04030-000)
  • Sept 18 morning – Auditorium Oscar Niemeyer
  • Sept 18 afternoon – Auditorium Oscar Niemeyer and Bienal Foundation
  • Sept 19 – Bienal Foundation
  • Sept 20 – Site visits by registration

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Urban Development

UN and civil society team up to make cities more sustainable and inclusive

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Salt Lake City in the US state of Utah, is hosting the United Nations Civil Society Conference. Image: Visit Salt Lake

How can we make sure that cities become more inclusive, with a smaller environmental footprint, and leave no-one behind? These questions will be tackled at the UN Civil Society Conference, which is due to take place in the capital of Utah, Salt Lake City, at the end of August.

Representatives of civil society will have the opportunity to meet with senior UN officials, and discuss a wide range of solutions to the challenges of urban life.

The theme of this year’s conference, “building sustainale and inclusive cities and communities”, reflects the fact that over half of the world’s population, some 55 per cent, now live in urban areas, with that figure expected to rise to 68 per cent by 2050.

Conference sessions will discuss topics connected to the main theme, including climate change; opportunities for youth; and emerging technologies and innovation.

Leaders of large urban centres, such as Salt Lake City in the state of Utah, the communities that live in them, as well as the private sector, are at the forefront of finding sustainable solutions to poverty; climate change; clean water and energy; and many of the other challenges connected to urban living.

Salt Lake City’s sustainability credentials include the development of a Climate Positive Plan, laying out a path for a transition to 100 per cent clean energy by 2032, and an 80 per cent reduction in carbon emissions by 2024. In addition, the nearby Utah Valley University, works to educate the campus and larger community on the UN’s 2030 Agenda for Sustainable Development, and has been an affiliate member of the UN’s Department of Global Communications (DGC) since 2017.

“As a city committed to being inclusive, safe, resilient, and sustainable, it is an honor to be the first US host city of the UN Civil Society Conference outside of New York,” said Mayor Jackie Biskupski in a statement. “I can think of no better time and no better place than Salt Lake City, for the UN and the world’s NGOs to expand awareness in this country of sustainable development goals and the value of global unity.”

Highlights include interactive thematic sessions, NGO-sponsored workshops, exhibits and a youth hub. Speakers and attendees will include leaders and other representatives from NGOs, UN agencies, academia, faith traditions, the public and private sectors and youth from around the world.

The UN Civil Society Conference is described by the UN as the Organization’s “premier event in the civil society calendar”, focusing on UN topics of interest to civil society and NGOs, where issues of global concern can be discussed.

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