Infrastructure Packaging

Historically, cities as separate urban government units had never garnered any significant attention from the United Nations, but at Tuesday’s U.N. Climate Summit in New York, mayors from all over the world took center stage.
A common theme throughout the day was that cities are crucial to fight climate change because urban areas are responsible for nearly 70 percent of all carbon emissions.
To reduce pollution from urban centers, U.N. Secretary-General Ban Ki-moon announced the establishment of the Climate Finance Leadership Alliance, tasked with funding low-carbon and climate-resilient infrastructure projects and make their implementation better and easier as a key component of the struggle against global warming.

Despite the U.N.’s usual good intentions, the purpose of CFLA seems to be a work in progress, not due to a lack of focus by the loose partnership, but in part because infrastructure project funding is so different for various sectors in different cities. Participants at the summit highlighted that any financing initiative must be flexible in order to bring everyone to the table.
So far about 20 partners — ranging from the C40 advocacy group to Citibank — have committed to CFLA, according to Amanda Eichel, adviser to Michael Bloomberg, U.N. special envoy on cities and climate change and former mayor of New York.

Partners will not engage in direct funding of infrastructure projects, but rather leverage the right investors to make those projects a reality in developing countries, precisely where the risk is highest.
CFLA will thus function like a consulting firm for cities on “how to package projects in an interesting way to make them more attractive to investors,” Eichel said.
“A common communication, language and approach” in presenting infrastructure projects is the main reason cities have such trouble funding large infrastructure projects, Bloomberg’s adviser explained.
Investors struggle to navigate the bureaucracy’s competing priorities and the lack of clarity on any potential returns, so the initiative will provide them with guidance on each sector instead of focusing on individual cities, in order to maximize development impact.

To illustrate how the process works, Eichel gave the example of a mass transit development project in a particular urban area. CFLA would study what transport needs are across a range of cities within that sector and give recommendations on how to “market and advertise” that type of project to potential investors. It would then be up to that city to apply that “branding” strategy and choose their own partners and contracts based on individual cities’ criteria.

Outside of its partners, the initiative’s unofficial steering committee is led by the World Bank,Bloomberg PhilanthropiesU.N.-Habitat and the Rockefeller Foundation. Although final roles have yet to be finalized, Bloomberg Philanthropies and World Bank will be in charge of researching and assessing “the state of climate finance in cities” in annual reports, because measuring impact can provide more confidence to investors. U.N.-Habitat will act as technical adviser, determining the type of project for particular needs in various cities. The Rockefeller Foundation will be a core member of this group, although in a still unknown capacity.

Capacity building

Joan Clos, executive director of U.N.-Habitat and former mayor of Barcelona, insisted the problem is not a lack of money but putting it in the right places.
“What is lacking is not funding, what is lacking is the quality of the project,” he told Devex, stressing that the real issue is making sure cities know how to get a slice of that money. “Financial institutions require that [urban infrastructure] projects have a clear business model, they are understandable, in order to be funded.”
We are in the “demand side of the equation” to build up the capacity of developing country cities, Clos said.

The head of U.N.-Habitat specified that “turning solid waste into energy is one of the most important group of projects.” For instance, landfills in developing countries are usually the highest emitters of methane gas, but urban governments there don’t have the technology to harness the waste and turn it into energy. The goal is to convince investors that they can make a return on that type of financial risk, which Clos noted can be done by showing them the potential for “maturity of long-term investment” in sanitation and transportation projects, to name just two.

CFLA, he said, will help create institutional settings to attract investors. These would be “innovative instruments … not necessarily on the financial side” in the form of new water, electricity or transport companies, legislative reform or utility subsidies. The field is open because each city has a unique set of issues despite a shared, overarching problem within different sectors.

“The scarce resource is the solid business plan” for infrastructure projects, and the initiative has been established to remedy just that, Clos pointed out.
CFLA will thus adopt a unique business and climate change-based approach to development, which has the potential to push more private sector engagement if investors see they can make a profit.

Top U.S. banks want to be a part of the initiative, and surely Bloomberg’s name and business acumen will also help attract investors. But it remains to be seen if governments, aid groups and the private sector will be able to work together to achieve the goal of helping cities develop low-carbon and carbon-resilient infrastructure to really make them the next battleground to combat climate change.

Source: www.devex.com
Picture: Johannesburg by SmartCityStudio

Clean Energy Centre

“UN-Habitat launched the construction of a Multifunctional Clean Energy Centre at St. Christine Community School Centre in Kibera Kenya. This is a joint initiative funded by DANIDA and UN-Habitat. It is the first of a series of Multifunctional Clean Energy Centres that UN-Habitat plans to construct in other Sub-Saharan African cities.
The proposed 3-floor facility has been designed taking into account bio-climatic and energy efficiency considerations. It will constitute the following spaces:  toilets and bathrooms, a solar charging facility, computer room, a classroom as well as a community hall.  The project seeks to improve access to basic urban services to the community, offering a multi-purpose facility which combines improved sanitation (public toilets and bathrooms), clean cooking fuel and lighting. The toilets will be used by the school of about 415 pupils and the surrounding community.
This facility has been designed as an income generating tool for the school. The local community will be able to have access to the public toilets and bathrooms at a fee. The biogas produced will replace firewood and charcoal which the school currently buys at a high price. This will greatly reduce its expenditure associated with meal preparation. Some of the electricity generated by the solar photovoltaic panels will be used for lighting the building and also at the solar charging facility for recharging of solar lanterns and mobiles phones at an affordable fee.
The biogas generated in the digester, that forms part of the sanitation system, will be used at the school’s kitchen to prepare meals for the children. The liquid fertilizer, an end product of the biogas system, will be used at the school’s garden. A total of 150 solar lanterns, 50 of which have been donated by Philips East Africa, shall be rented out to the school’s parents and the surrounding community to ensure clean, bright and affordable lighting is accessible to replace kerosene lamps thereby enabling children to read at night. In addition, the facility will include a water tank where water will be stored for use at the school and some of it will be sold to the community at an affordable rate.”
Source: UN-Habitat, Picture: Above: Kibera

Trade trash for food

According to Co.exist: “To eliminate landfills and encourage local agriculture, a new program lets residents exchange their recyclable trash in exchange for credits with nearby farms. Mexico City is turning its trash into food. The government’s environmental agency recently launched the Mercado de Trueque, a barter market where recyclable materials are exchanged for fresh food to support the city’s farmlands. “This innovative program is designed to show citizens directly and tangibly how what we call trash becomes raw materials. If solid waste is properly separated, it still has value,” writes the Ministry of Environment (in Spanish). The market accepts glass, paper and cardboard, aluminum beverage cans, PET plastic bottles, and returns “green points” redeemable for agricultural products grown in and around Mexico City, including lettuce, prickly pears, spinach, tomatoes, plants, and flowers. “The intention is to encourage and support the producers of soil conservation in order to raise public awareness of the local supply,” writes the Ministry. “It’s important to consume local products to avoid large shipments of goods, reduce the carbon footprint, generate fair trade and maintain agricultural lands south of the city. “Collecting and sorting recyclables is already a big business in some developing countries, but it’s not a habit for many households. Drawing a direct link between sorting and exchanging waste and a sustainable food supply may bring a new awareness into the mix. The first market, held on one Sunday this March, sold out, exchanging nearly three tons of 60 agricultural products for trash.”