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Competitive Cities and Climate Change OECD CONFERENCE PROCEEDINGS MILAN, ITALY 9-10 OCTOBER 2008 ACKNOWLEDGEMENTS

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Competitive Cities and Climate Change OECD CONFERENCE PROCEEDINGS MILAN, ITALY 9-10 OCTOBER 2008 ACKNOWLEDGEMENTS Competitive Cities and Climate Change OECD CONFERENCE PROCEEDINGS MILAN, ITALY 9-10 OCTOBER 2008 ACKNOWLEDGEMENTS This two-day event – the OECD Conference on Competitive Cities and Climate Change and the 2nd Annual Meeting of the OECD Roundtable of Mayors and Ministers for Urban Development -- was organised by the OECD, the Milan City Council and the Province of Milan, with the participation of the Club of Madrid and with the support of the Fondazione Eni Enrico Mattei (FEEM). The conference was hosted by ISPI (Instituto per gli Studi di Politica Internazionale). Special thanks are given to the Mayor of Milan, Mrs. Letizia Moratti, and to President of the Province of Milan, Mr. Filippo Penati. We are also grateful to Mr. Fabrizio Grillo and Mrs. Laura Mazzini of the Milan City Council and to Mr. Giorgio Monaci of the Province of Milan. We would like also to thank the Fondazione Eni Enrico Mattei (FEEM) for the support to the conference and in particular to Mr. Bernardo Bortolotti, Executive Director. We would also like to express our appreciation for the fruitful collaboration with the Club of Madrid, and in particular with Mr Fernando Perpina, Secretary General of the Club of Madrid, as well his colleagues Mrs. Maria Elena Aguero and Mrs. Agustina Briano. The OECD international conference on Competitive Cities and Climate Change and the 2nd Annual Meeting of the OECD Roundtable of Mayors and Ministers on Urban Development is part of the OECD programme of work on urban and regional development, directed by Mario Pezzini, Deputy Director, Public Governance and Territorial Development. The conference was co-ordinated by Lamia Kamal-Chaoui, Head of the Urban Development Programme, in collaboration with Raffaele Trapasso, Administrator and Erin Byrne, Project Co- ordinator, with the support of Suzanne Leprince, Secretary of the OECD Territorial Development Policy Committee, and Shivani Ratra, Internal Consultant. Substantive contributions to the conference were provided by Michael Donovan, OECD Urban Development Unit and Laurie Geller, Senior Program Officer, National Academies, Board on Atmospheric Sciences and Climate, United States. The content of the conference has also benefitted from valuable suggestions from the OECD informal group on cities and climate change, including Jan Corfee-Morlot (Environment Directorate), Mary Crass (International Transport Forum), Jollands Nigel (International Energy Agency), Hiroshi Kobayashi (Regional Sustainable Development Division) and his colleague, Tetsuya Shimomura. The proceedings were edited by Victoria C. Elliott, writer/editor at the Lawrence Berkeley National Laboratory, and prepared for publication by Erin Byrne, OECD Secretariat. 1 TABLE OF CONTENTS OECD INTERNATIONAL CONFERENCE “COMPETITIVE CITIES AND CLIMATE CHANGE” .................................................................................................................................... 3 ANNEX 1: AGENDA (PARTICIPANTS) ................................................................................... 7 ANNEX 2: AGENDA (CONTENT) ........................................................................................... 11 REMARKS BY OECD SECRETARY-GENERAL, ANGEL GURRÍA ................................... 19 OPENING REMARKS BY THE MAYOR OF MILAN, LETIZIA MORATTI ....................... 22 OPENING REMARKS BY THE PRESIDENT OF THE PROVINCE OF MILAN, FILIPPO PENATI ....................................................................................................................... 24 OPENING REMARKS BY THE DIRECTOR OF THE OECD PUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENT DIRECTORATE, ODILE SALLARD .............................. 26 COMPETITIVE CITIES AND CLIMATE CHANGE: AN INTRODUCTORY PAPER by Lamia Kamal-Chaoui, Head Urban Development Programme Directorate For Public Governance and Territorial Development, OECD ..................................................................... 29 CHAPTER 1: COMPETITIVE CITIES IN A CHANGING CLIMATE: AN ISSUES PAPER ..................................................................................................................................................... 48 CHAPTER 2: CITIES AND CLIMATE CHANGE: HARNESSING THE POTENTIAL FOR LOCAL ACTION by Jan Corfee-Morlot, Ian Cochran and Pierre-Jonathan Teasdale, Environment Directorate, OECD .......................................................................................................................................... 78 CHAPTER 3: CLIMATE CHANGE, URBAN INFRASTRUCTURE AND ECONOMIC DEVELOPMENT by Gianmarco I.P. Ottaviano, University of Bologna and FEEM ............................................ 105 CHAPTER 4: WATER IN THE URBAN ENVIRONMENT: MEETING THE CHALLENGES OF A CHANGING CLIMATE by Matthias Ruth and Rebecca Gasper, Center for Integrative Environmental Research University of Maryland, College Park, United States ............................................................... 107 CHAPTER 5: REDUCING CO2 EMISSIONS FROM URBAN TRAVEL: LOCAL POLICIES AND NATIONAL PLANS by Mary Crass, International Transport Forum ....................................................................... 124 CHAPTER 6: CITIES AND ENERGY by Nigel Jollands, International Energy Agency ....................................................................... 135 CHAPTER 7: CITIES, CLIMATE CHANGE AND URBAN ECONOMIC DEVELOPMENT by Joan Fitzgerald, Northeastern University, New York University ......................................... 147 CHAPTER 8: GOVERNING CLIMATE CHANGE IN CITIES: MODES OF URBAN CLIMATE GOVERNANCE IN MULTI-LEVEL SYSTEMS by Kristine Kern, Wageningen University, and Gotelind Alber, Sustainable Energy and Climate Policy ......................................................................................................................................... 171 2 OECD INTERNATIONAL CONFERENCE “COMPETITIVE CITIES AND CLIMATE CHANGE” 2nd Annual Meeting of the OECD Roundtable Strategy for Urban Development October 9-10, 2008, Milan, Italy ISPI - Istituto per gli Studi di Politica Internazionale Via Clerici, 5 20121 Milan Introduction The OECD international conference on "Competitive Cities and Climate Change” is the fifth of a series of conferences organised by the OECD to examine the challenges faced by large cities concerned with improving their economic competitiveness while providing the social and environmental conditions that are necessary to retain and attract skilled workers and investment. In a context of globalisation, previous OECD conferences addressed city competitiveness from the following perspectives: business environment, social cohesion, physical attractiveness, the role of central government. The conference in Milan addresses the environmental dimension of city competitiveness, focusing on the relationships between urbanisation and climate change, and the implications in terms of urban policy making. As stressed by the OECD Secretary General, Angel Gurría, at the Madrid conference in March 2007: “In our cities, citizens, industries and institutions must respond to the challenges of technological change and globalisation. In our cities, as elsewhere, we must deal with the social implications of change (…) Urban areas could (also) play a central role in successfully addressing global environmental challenges (…) Cities generate almost 70% of total gas emission. There is no doubt that improvements in urban design, housing stock, traffic congestion and accessibility, disaster prevention and waste management, are crucial component of a strategy to combat global warming. If cities fail to deal effectively with environmental challenges, our planet is in serious trouble”. The conference is being organised in co-operation with the City of Milan and the Province of Milan, with the collaboration of the Club of Madrid and the support of the Fondazione Eni Enrico Mattei. As with previous OECD conferences, it will promotes policy dialogue among city mayors and national government representatives, in order to identify a common policy agenda for cities. It will bring together ministers, mayors, and regional leaders as well as eminent personalities from the Club of Madrid (former Head of States and governments), high-level representatives of international organizations, major local government networks and prominent experts. The Milan conference will host the 2nd annual meeting of the OECD Roundtable Strategy for Urban Development, which was created at the Madrid conference on 29-30 March, 2007 at the initiative of the Mayor of Madrid, Alberto Ruiz-Gallardón. 3 Competitive Cities and Climate Change: background and rationale The world’s urban population has multiplied ten-fold during the past century, and within the next decade, there will be nearly 500 cities of more than a million people, including several ‘megacities’ with populations exceeding 20 million. Meanwhile, cities have strengthened their role as drivers of innovation and entrepreneurship that account for a disproportionately strong share of a country’s GDP per capita. A series of recent OECD conferences have highlighted how cities respond to the challenges of technological change and globalization. The OECD Conference, “City Competitiveness” (Santa Cruz de Tenerife, Spain, 2005), examined policies implemented by cities and regions for fostering their competitiveness in the international marketplace, for promoting regional innovation, and for encouraging the growth of networks and partnerships with the private sector and universities. The OECD conference “Enhancing City Attractiveness
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