Better Growth Better ClimateMadhav Pai

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The Global New Climate Economy Partnership

Global Commission

Chaired by Felipe Calderón and Nicholas Stern

Comprising 24 members including: • former heads of government

• finance ministers• leaders in business, finance and

economics

Economic Advisory Panel14 world leading economists, chaired by

Professor Lord Nicholas Stern

Includes:

Two Nobel prize winners: Daniel Kahneman and Michael Spence

7 Commissioning Countries

ColombiaEthiopia

IndonesiaNorwaySweden

South KoreaUnited Kingdom

8 Partner Research Institutes

Climate Policy Initiative (USA)Ethiopian Development and Research Institute

Indian Centre for Research on Economic Relations (ICRIER)

Global Green Growth Institute (South Korea)London School of Economics (UK)

Stockholm Environment Institute (Sweden)Tsinghua University (China)

World Resources Institute (USA)

Members of the Global Commission

Jean Pascal TricoireCEO, Schneider

Electric

Felipe Calderón (Chair)

Former President, Mexico

Ingrid Bonde

CFO and Deputy CEO, Vattenfall

Sharan Burrow

General Secretary, International Trade

Union Confederation

Chen Yuan

Former Chairman, Chinese Development

Bank

Helen Clark

Administrator, UNDP

Luísa Diogo

Former Prime Minister, Mozambique

Dan Doctoroff

Former CEO, Bloomberg

S. (Kris) Gopalakrishnan

Co-founder, Infosys

Angel Gurría

Secretary General, OECD

Chad Holliday

Chairman-designate, Shell

Sri Mulyani Indrawati

Managing Director and COO, World Bank

Caio Koch WeserVice Chairman, Deutsche Bank

Ricardo Lagos

Former President, Chile

Michel Liès

CEO, Swiss Re

Trevor Manuel

Former Finance Minister, South Africa

Takehiko Nakao

President, Asian Development Bank

Eduardo Paes

Mayor, Rio de Janeiro

Annise Parker

Mayor, HoustonPaul PolmanCEO, Unilever

Nicholas Stern (Vice-Chair)IG Patel Professor at the

London School of Economics and Political Science

Zhu LevinFormer CEO, China International Capital

Corporation

Jens StoltenbergFormer Prime

Minister, Norway

Maria van der HoevenExecutive Director, International Energy

Agency

Ngozi Okonjo-Iweala

Minister of Finance, Nigeria

Naina Lal Kidwai

Chairman, HSBC India

Suma Chakrabarti

President, EBRD

Kristin Skogen LundDirector General, Confederation of

Norwegian Enterprise

Key drivers of growth and climate performance

RESOURCEEFFICIENCY

INNOVATION

INFRASTRUCTURE INVESTMENT

HIGH QUALITY, RESILIENT, INCLUSIVE = BETTER GROWTH

ENERGY

LAND

USECITIES

WIDER

ECONOMY

CITIES: Rapidly growing urban areas are key drivers of economic growth and emissions

Sources: Population split from 2011, GDP split estimate from Grubler et al 2007 cited in GEA 2012, Energy use split from GEA 2005, Emissions

from World Energy Outlook 2006

60% of population

80% of GDP70% of energy consumption

3C’s: New Model of Urban Development

1. Compact urban growth

2. Connected infrastructure

3. Coordinated governance

Managed expansion, mixed-use urban form, good quality urban design

Smarter transport systems, smarter utilities, smart grids

Integrated land use and transport authorities, integrated planning, PPPs

A different model of urban development is possible: Atlanta and Barcelona have similar populations and wealth levels but

very different carbon productivities

Atlanta’s built-up area Barcelona’s built-up area

Population: 5.26 million

Total area: 16,605 km2

Urban area: 7692 km2

Transport carbon emissions: 6.9

tonnes CO2 p.c.

Population: 5 million

Total area: 3263 km2

Urban area: 648 km2

Transport carbon emissions:

1.2 tonnes CO2 p.c.

ATLANTA BARCELONA

Source: LSE research, drawing on data from Atlanta Regional Commission (2014), Autoritat del Transport Metropolita (Area de Barcelona) (2013), GenCat (2013), UCSB (2014), D’Onofrio(2014), based on latest data.

A range of smart transport systems have taken

off in numerous cities worldwide since 2000

Source: Embarq 2013

There are affordable mass transit solutions: BRT can be delivered at 15% of the cost of a metro

Number of cities (Source: Wright 2007)

Implementing smart

transport infrastructures

such as Bus Rapid Transit

(BRT) has transformative

effects

Cities

1995 201020001990 20142005

USD/MWh

Current fossil fuel

range, indicative

Solar PV, historical

Best utility-scale

project, 2014

Sources: Citi Research 2012; G. F Nemet, “Beyond the learning curve”, Energy Policy 34, 3218-3232 (2006)

ENERGY: The cost of solar PV is dropping fast

ENERGY: Wind turbines have evolved to have 100 times more power generation capabilities than 30 years ago

Sources: Cityfix.com, NY Times, LSE and NCE Cities – Paper 03 Accessibility in Cities: Transport and Urban Form, p 10-11

Energy in Cities1. Building Sector:

• Improved design• Insulation• Lighting and heating/cooling• Small scale renewables

Leeds, UK• Payback < 3 years• Domestic sector emission

reductions of 16%

2. Transport Sector:• Efficient vehicles• Cleaner fuels• Public Transport

3. Waste Management:• Recylcing• Landfill gas capture• Composting of waste

Lima-Callao, Peru• Payback 2.6 years• Transport related emission

reductions of 26% by 2025

Kolkata, India:• Payback 11.8 years• Waste related emission

reductions of 41% by 2025

INNOVATION: Google is becoming one of the biggest “clean tech” companies on the planet

Source: Google, Greentech Media

Savings in global infrastructure spending

to 2030 from more compact, connected

urban development

Source: New Climate Economy analysis.

$3 trillion

Recommendations of Global Commission

• Make better planned urban development a central element of national economic development strategies

1. BETTER URBANISATION

• Consider greater fiscal autonomy for cities to unleash investment in smarter urban infrastructure

2. FISCAL AUTONOMY

• Eliminate fuel subsidies, congestion charging, land and development taxes, density bonuses

3. TAX REFORM

• Minimum density standards, maximum parking requirements, growth boundaries

4. REGULATORY REFORM

Recommendations of Global Commission

• Redirect existing infrastructure funding towards more compact, connected and coordinated urban infrastructure, including MDB financing

5. REDIRECT INVESTMENT

• Strengthen role of strategic planning at national, regional, and city levels including setting up integrated land use and transport authorities

6. PLANNING AND

GOVERNANCE

• Land Value Capture, enhancing own source revenue to boost creditworthiness, ‘city bonds’

7. FINANCING MODELS

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