April 2021

Connected Places

The Path to Net Zero in Latin American Cities The UK’s Capabilities and Contributions

Supported by FCDO and UKRI 2 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 3

Santiago, Chile Context

The last five years have seen cities around the world become decisive drivers and venues of innovation in pursuit of net zero and clean growth. Cities are now recognised as the dense concentrations of people, assets and systems where it is possible to enact transformations at scale and achieve essential economic and social outcomes at the same time as targeting climate change. The quest for a green recovery from Covid-19, coinciding with COP26, is adding stimulus to more cities to translate net zero pledges, plans and ambitions into real world action.

To know what kinds of interventions are possible and desirable in cities, and the roles the UK can play in trading and enabling them, depends on a deeper grasp of where cities are at and how they can innovate. This report, which combines the findings from the FCDO-supported project “Leveraging UK Expertise on Net Zero in Pacific Alliance Cities” and the Innovate UK-supported webinar “Latin America Net Zero Urban Innovation Challenges and Opportunities”, explores the potential for the UK to support the different paths that cities may go on towards net zero based on their individual starting points, their span of control, and the priorities they now have to address. 4 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 5

The analysis is focused on Latin America strategies tend to be less developed than in • Incumbent businesses, including start- and informed by urban performance data, other systems of cities. There are a growing ups and SMEs, are starting to recognise insights from SMEs and UK export missions, number of capable innovation partners Villavicencio, Colombia their role in leading a net zero transition, and practitioner recommendations in but fewer areas of mature local domestic especially in cities dominated by particular the UK and in the region. It is designed specialisation in sectors that can immediately companies or sectors. The demonstration to complement the rich body of work accelerate to net zero. This presents a lot of capacity and convening power of industrial undertaken by multilateral organisations, opportunity – and urgency - for long-term companies and private infrastructure and city networks and others on Latin American partnership and capacity development. energy providers is especially significant cities, by focusing on what specifically the The interviews and research carried out for in contexts where city governments have UK’s companies, conveners and cities can this work reveal that in a global context, limited influence contribute. Its results help to provide a Latin America’s cities’ net zero journey stands In the next cycle there is a shared recognition broad understanding of the current net zero out in a number of ways: that to achieve scalable net zero impacts, the challenges faced by Latin American cities and • The profound role of natural assets region’s cities need support to better convene, how UK expertise may help to address them. in their wider region, which shapes the collaborate and co-ordinate, especially Latin America is a critical region for possibilities and resources for net zero with business, citizens, academia and civic the world’s net zero ambitions. It is 80% action and climate resilience. Protection, leadership. Services and innovations that build urban, and a continent where unplanned utilisation and smart management of the collaborative capacity within cities, and and underpowered cities have resulted deserts, coasts, wind, forests, wetlands, more people with the skills and influence to in many urgent mitigation imperatives in food basins, and biodiversity – including act as an effective interface, are at the heart of transport, energy and waste. The gateway through improved technologies, services what many cities seek. cities such as São Paulo, Mexico City and and management - are high priorities in More partnership-led institutions and Bogotá continue to lead the charge in terms these nature-rich cities, especially given financial tools are in demand – from municipal of demonstrating what is possible and the high risks of natural and man-made companies to business improvement promoting potential opportunities. At the disasters which result in significant human districts to value capture. Gaps in financing, same time, diversification away from the and economic costs each year benchmarking, real-time management and region’s megacities continues and there is • The urgency to shift to more compact performance monitoring related to net zero more recognition that medium sized cities development. Latin American cities all need to be closed rapidly. The pivot to hold the key to clean growth. are entering a critical cycle where they innovative procurement practices, such as These ‘middleweight’ cities, from Antofagasta need to demonstrate the effects of the challenge-led procurement approach, can to Arequipa and from Santa Marta to São transport-oriented development, begin underpin efforts to engage start-ups and SMEs, Jose dos Campos, are much less locked in modal shift away from the car, and shift create a more level playing field, and generate to inefficient path dependencies, and have towards effective metropolitan planning. more opportunities for local actors in the the agility to change and eagerness to Electric vehicles play a role in a more agile race to net zero while also providing a specific partner up. A lot of groundwork and piloting urban model, alongside public transport mechanism to match specific local needs to has been done in the last decade to create expansion, multi-modal stations, mobility potential expertise in a transparent way. an environment where long term plans, as a service, and much improved facilities climate plans, and effective financial and incentives for pedestrians and cyclists instruments, are all more customary in supporting active mobility Latin America’s mid-sized cities, although • A communication task with big institutional weaknesses and basic communities is essential in high-division, infrastructure gaps persist. low-trust cities where information flow from As a group, Latin American cities are striking authorities to citizens is often ineffective, in that governance deficits mean that despite and carbon literacy is low. Policies which high levels of awareness, the scope and generate a more participative approach operationalisable ambition of their net zero with citizens should be encouraged 6 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 7

The UK’s potential contribution plan, establish effective localised cost-benefit analysis, unlock green public spaces, as well The UK was the first nation to industrialise as build research partnerships on agendas Contents and urbanise, and among the first to such as circular economy and hydrogen. experience de-industrialisation. As a source Appetite is very high for UK companies’ of solutions and innovations, the UK is integrative expertise and technology, 1. Leveraging UK Expertise to Address Net Zero 6 on a path to becoming a distinctive net zero the capacity building of its experts and Challenges in Latin American Cities market because of its: institutions, and UK cities’ ambitious 1.1 Project summary 8 • World-leading sector-specific capability in leadership in terms of how to decarbonise 1.2 Medium-sized Latin American cities in regional perspective 13 areas essential for financing and building systems and raise the profile of low carbon 1.3 The opportunity to leverage UK expertise in the journey to net zero 25 net zero cities in a more integrated way agendas. • Competitive ‘first mover’ advantage in The UK will itself need to innovate in order 2. Moving Forward and COP26 40 niche technologies and place-based to make the most of its potential to drive innovations that can be scaled globally significant trade and reputational advantage Appendices 42 to city governments and users from its net zero activities abroad and at A – Examples of UK expertise and leadership in the journey to net zero 42 home. Practitioners observe that the UK’s net B – Data sources underpinning the national ‘systems of cities’ 46 • Know-how around systems integration, zero export and scalable expertise potential performance snapshots breaking down siloes, and the regulatory may in future benefit from: and policy adjustments that spur change C – Webinar Summary and Statistics 48 1. A co-ordinated system to alert SMEs to References and endnotes 50 • Leadership in UK cities to promote low non-UK language advertised opportunities, carbon innovation and internationalisation and to support them to respond efficiently despite significant institutional deficits and place fragmentation 2. Ongoing support to UK cities to build capacity and resources to mobilise around UK SMEs have particular expertise in net zero net zero and showcase progress in an niches such as smart streetlighting, lithium- internationally relevant way to overseas ion battery storage, electric vehicle charging decision makers and investors infrastructure and subscription models, and mobile ticketing and payments-as-a-service. 3. More structured support to share Many capabilities that have comparative UK global expertise and to combine advantage in emerging economies are in the different sectors that contribute to the ‘softer’ domains of regulation, behaviour a low-carbon system into a smart incentives, systems engineering and integrated offer integration. UK companies and joint ventures 4. Efforts to design the UK ‘package’ of net can play a leading role in helping cities to zero expertise specifically to complement design and deliver less siloed systems and Authors existing capabilities in cities, and to link overcome pervading fragmentation. to supply and delivery on the ground Dr. Tim Moonen – Co-Founder and Managing Director, The Business of Cities In general, the biggest priority areas Jake Nunley – Head of Research, The Business of Cities 5. More partnerships between UK companies for mitigation in Latin American cities – Harriet Seymour – Associate, The Business of Cities and organisations active locally such as the particularly smaller and medium sized Guilherme Johnston – Head of Global Partnerships, Connected Places Catapult Inter-American Development Bank (IDB), cities – are around decarbonising transport, Precilia Godart – Global Partnerships Officer, Connected Places Catapult the Latin America Development Bank energy and waste. There is consistent (CAF), UN-Habitat, UNDP, ICLEI and C40, demand for assistance to develop bankable Acknowledgements which can help to facilitate interactions projects, redesign electricity markets, between the UK and local service The authors would like to warmly thank colleagues within the UK, Latin America and elsewhere introduce baseline monitoring systems, providers and strengthen UK involvement for their insight and input to this report. integrate metropolitan transport, centralise in city-led challenges mobility data, execute a regional climate 8 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 9

It is especially pertinent in Latin America, where There is no one system or catalyst that will decarbonise megacities are home to 10% more of the urban population cities. It will require millions of small and large 1 Leveraging UK than in other global regions, and where fast-changing interventions, not only into buildings, transport, energy, medium-sized cities are home to nearly 45% of the total waste and materials, but also more broadly into city urban population (see Figure 1). This means that while systems, assets, services, planning and business models. Expertise to Address Latin America’s gateway cities such as São Paulo and Digitisation, integration, efficient retrofits, co-ordinated Buenos Aires will play important demonstrator and governance, aligned incentives and applied technologies convenor roles, the path to net zero will also fundamentally will all be required (see Figure 2). The abatement Net Zero Challenges in depend on what happens in ‘middleweight’ cities such contribution of medium-sized cities in particular is Latin American Cities as Bucaramanga and Concepción. striking in the pursuit of targets for 2030 and beyond.

18 Figure 2: 17.3 1.1 Project summary Contribution of Reference Scenario different sectors with a continuation of Energy Efficiency In January 2021, Connected Places Catapult and The Business of Cities were commissioned by the to the reduction of 16 business-as-usual trends Reduced Sprawl 2.3 urban greenhouse Liveable Density FCDO in Chile and Colombia to deliver a project focusing on identifying the net zero challenges in six gas emissions by medium-sized cities in Chile and Colombia – Antofagasta, Bucaramanga, Concepción, Iquique, Santa 2050 14 Governance Residential Regulation Mixed Use Renewable Energy Supply Buildings Marta and Villavicencio – and to identify how UK expertise could contribute to addressing these. Partnerships 3.4 Finance Carbon Capture Battery Storage 12 Incentives Market-making Context Procurement Education Retrofits 1.5 IoT Responsive Environments 1 10 Communication Leadership System Monitoring Commercial The global journey to ‘net zero’ depends to a very large extent on Life Cycle Management what happens in cities. 1.8 Buildings 8 Public Transport Net zero - where total greenhouse gas decarbonisation of cities – which we take Active Mobility Optimised Logistics 2.5 EVs emissions are equal or lower than emissions here to mean all ways of reducing cities’ 6 Urban Ports & Airports Transport Mitigation Scenario removed from the environment – is shaped in CO2 emissions – will be essential to the journey 0.7 3 with ambitious action Circular Economy large part by CO2, which is responsible for to net zero. This imperative applies to cities 4 Material Recovery 1.3 Source: Adapted to cut emissions Urban 75% of greenhouse gas emissions globally. large and small, and cities in established and from Coalition for Urban Transitions 1.2 Materials (2019), including Cities account for over 70% of these CO2 emerging economies. All cities will play their authors’ own 2 Zero-emission Waste 0.8 2 Urban Waste emissions. An increased pace in the part. (see Figure 1). annotations Waste Prevention on example interventions.5 1.8 0

Figure 1: Size of 2015 2020 2025 2030 2035 2040 2045 2050 Latin American metropolitan areas and distribution of urban population compared to metropolitan These efforts synchronise with other core benefits cities With its ambitious net zero targets and world-leading areas in other parts of the world are seeking – cleaner air, better mobility, cost savings expertise in several sectors relating to decarbonisation, for citizens and companies, higher liveability, and talent the UK has the potential not only to transform itself retention. Latest forecasts suggest that the economic internally, but also to work together with partners benefits of decarbonising cities may amount to £17.5 globally – such as the Pacific Alliance cities – to achieve trillion in Net Present Value by 2050.6 global climate commitments. COP26, together with the recently released Ten Point Plan for Net zero Transition, In the context of Brexit and the recovery from Covid-19, represents a unique opportunity to accelerate global and as the host country of COP26, the UK government emissions reduction and the shift to renewable energy. and the agencies within it have begun shifting attention Source: UN World Urbanisation Prospects (2018 update).4 *Only includes metropolitan areas with populations above 300,000. Urban population refers to total population residing in cities with metropolitan populations larger than 300,000. more decisively to questions around how to promote decarbonisation and a green economic recovery. 10 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 11

. Project aims and methodology • The scope and ambition of their climate Dimension Questions it can help answer change and associated net zero strategies, This project, designed to build on, including areas where awareness raising • How well set up is the city to become net zero? complement and triangulate existing Inherited assets to go net • How difficult will it be for this city to become net zero? may be required (ambition and strategy) work in this space, provided an important zero • How much progress is possible? insight into the challenges Latin American • The size, scale and mix of projects • Which can be the biggest drivers of change? cities face in their journey to net zero, currently being mounted to progress to • Which cities are willing pioneers? net zero, including the potential role for Ambition and strategy to and to the opportunities for the UK to • Where is awareness raising required? become net zero provide expertise that can accelerate their the UK, and the extent and maturity of • Who are the potential IFI partners? decarbonisation efforts. It combined insights platforms to convene action (projects • What scale and sector are the projects being mounted? from global datasets, local strategies, and and platforms) Platforms and projects to • Where are the gaps? direct interaction via expert interviews and catalyse net zero • The tools and powers they have to • What type of expertise can the UK offer? a webinar with key stakeholders in Pacific undertake bold reforms and shift to net Alliance cities to create a framework of zero, and which sectors seem to offer Span of powers and • Where can UK net zero companies or institutions find a capable analysis that can be applied globally (see the most scope for intervention (span of influence to shift to net government partner? zero • In which sectors is there most scope to intervene? Figure 3). This framework enables cities to powers and influence) be evaluated according to a 5-pronged system • Who are the potential partners for net zero? • The maturity and dynamism of the net zero Investment and innovation that analyses: • How easy is it to access funding? innovation and investment environment, environment for net zero • How mature is the current clean/greentech ecosystem? • The assets and systems they inherit, how including the extent of specialisation in difficult it may be to decarbonise them, and sectors allied to net zero and presence which systems can be the main drivers of of potential partners (innovation and In answering the questions ‘how are Chilean • Open the market for UK expertise to change (inherited assets) investment) and Colombian cities distinctive in terms of medium-sized cities in the Pacific their journey to net zero?’ and ‘what is the Alliance region, such as Bucaramanga role of the UK in supporting that journey?’, and Antofagasta the project aimed not only to expand the Figure 3: • Match capability to needs and assess which Framework Inherited evidence base on medium-sized Latin cities would be a best fit for UK expertise underpinning assets American cities, but also to define potential analysis of the on net zero challenges cities pathways for the UK to foster and support face in the journey +100% • Differentiate the sectors where the UK to net zero sustainable market development activities. and its companies and cities are world In particular, the project was designed to: leading and can provide the leading- • Strengthen understanding of Pacific edge ideas, innovations, capabilities and Alliance cities’ net zero related challenges lessons to support the rest of the world Innovation Ambition and and and opportunities as they relate to urban to decarbonise investment innovation among key UK stakeholders Strategy • Provide a resource for UK representatives Peer Average -100% • Provide valuable insights into which sectors and businesses to communicate the UK in which cities are most suited to UK support, offer in a more focused way and which stakeholders the UK can work with to accelerate the journey to net zero

What this report is and is not Span of Projects powers and and This report provides a series of summary insights drawn from the main outputs of the FCDO-supported influence platforms project “Leveraging UK Expertise on Net Zero in Pacific Alliance Cities” and the Innovate UK-supported webinar “Latin America Net Zero Urban Innovation Challenges and Opportunities.” 12 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 13

1.2 Medium-sized Latin American cities in Section 1.2 – Medium-sized Latin American cities regional perspective in regional perspective Medium-sized cities will be essential to Latin

Latin America’s medium-sized cities hold the key to much of the continent’s urban America’s journey to net zero. emissions abatement and mitigation potential. Understanding at a broad level where these cities have come from in terms of the assets and systems they inherit; where they are at now in terms of how dynamic their urban innovation ecosystems are; and where Not only do medium-sized cities hold the • Inherited city systems, connectivity and they are going in future as a result of the tools and powers they have to undertake bold majority of urban emissions abatement assets reforms, is an important first step in being able to map the net zero challenges faced by potential to 2030 and beyond. In many cases • Existing innovation ecosystem dynamics each region and the potential pathways to support market development activities. they also have the appetite, consciousness and culture of enterprise Section 1.2 is based on Connected Places Catapult’s and The Business of Cities’ City and eagerness to amend their development Typologies tool, which draws upon a combination of comparative global benchmarks, trajectories and engage in the conversations • Governance capacity, budgetary power and longitudinal socioeconomic databases and real-time global ‘big’ datasets in order to and partnerships necessary to spur change. strategic ambition characterise cities’ performance across three main opportunity areas. Yet the ability of medium-sized cities to This snapshot primarily looks at Colombian progress to ‘net zero’ depends on many and Chilean cities, including: factors. This not only includes inherited • Colombia’s two most globalised cities systems and assets relating to spatial form (Bogotá and Medellín), plus a group of and public transport that are built up and three medium-sized cities: Bucaramanga, evolve over multiple cycles, but also elements Villavicencio and Santa Marta7 Section 1.3 – The opportunity to leverage UK that influence the ability of cities to enact • Chile’s two most globalised cities change, including the size and scale of their (Santiago and Valparaíso), plus a group expertise in the journey to net zero urban innovation ecosystems, the presence of three medium-sized cities: Iquique, of platforms and partners to convene Antofagasta and Concepción The UK has world-leading experience and expertise in several sectors relating to multiple stakeholders, and the future decarbonisation. Mapping the ways that the UK has already contributed, and how they ambitions and strategies of the city and could contribute further, to the journey to net zero in other countries is an important the planning, governance and financial tools Santa Marta

means of matching needs and capability. they have to realise them. Bucaramanga Medellin Section 1.3 explores 4 types of sector where the UK has real-world leading capabilities This section provides a ‘birds eye’ snapshot Bogotá and expertise and where its businesses and cities have the potential to amplify their of Colombian, Chilean, and other Latin Villavicencio impact. More specifically, it reflects the particular roles of cities and SMEs, and the American cities in global and regional needs for ongoing improvements within the UK to drive and reinforce existing expertise perspective that is designed to answer some and contributions. It provides a short, non-exhaustive outside-in scan of the opportunity of these questions. It is based primarily on for the UK to support the decarbonisation agenda, with a focus on Latin America and The Business of Cities’ and Connected other middle-income countries globally. Places Catapult’s ‘City Typology Index – It does not provide a fully in-depth and comprehensive analysis that captures all UK an in-house performance and progress Iquique actions in the net zero space in full, nor is it an audit of particular firms within the net dashboard which assesses 500 cities with zero space. It is based on insights from: Antofagasta over 175,000 individual data points, across • Studies from UK Catapults such as Connected Places Catapult and Energy Systems three main opportunity areas: Valparaíso Catapult Santiago • Analysis undertaken by and on behalf of the UK government Concepción • National government reviews and policy briefs • Global benchmarks and comparative studies of city performance • Global big data platforms of real-time investment and innovation activity in cities Figure 4: Map of cities analysed in • Interviews with key participants in the ecosystem in the UK and internationally this snapshot 14 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 15

Summary insights on the performance of 11 other medium-sized Latin American cities are also provided to help contextualise these two national systems of cities. This group of cities includes Arequipa, Caruaru, Cuenca, Cuiaba, Florianópolis, Hermosillo, Joinville, Juiz de Fora, Londrina, Niteroi and São Jose dos Campos.

Colombian and Chilean cities in global context Metropolitan Size/Global Metropolitan Size/Global population/m rank population/m rank Colombia and Chile’s cities are important economic centres among more than 100 major Latin Bogotá 10.7 54th Santiago 6.2 109th American cities. This wider group of cities is diversified and includes global financial centres, gateways for trade and tourism, emerging innovation hubs, underperforming megacities and Medellín 3.7 191st Valparaíso 1.0 454th smaller niche players. All of these cities have differing levels of need, appetite and capacity Cali 2.8 248th Concepción 1.0 456th (see Figure 5). Barranquilla 2.4 294th Antofagasta 0.4 503rd Bogotá is just outside the 50 biggest cities globally, while Santiago sits just outside the top 100 Bucaramanga 1.1 442nd Iquique 0.4 505th (see Table 1). Both of these cities are the dominant cities in their respective national systems, Santa Marta 0.7 480th where many urban innovations are designed, devised or tested. Colombia and Chile’s 2nd tier Villavicencio 0.5 497th cities – Medellín, Barranquilla and Cali – are all among the 300 largest, and have the scale and Table 1: Metropolitan population size of influence to have developed strong appetite for urban innovations. Meanwhile the 3rd tier cities Colombian and Chilean cities – Bucaramanga, Villavicencio, Santa Marta, Concepción, Antofagasta and Iquique – are smaller, more specialised centres playing complementary roles.

Colombian, Chilean and Latin American cities in 2020 Relative to other systems of cities in middle- more rapidly, Chilean cities inherit a denser income countries, the Colombian and Chilean spatial form and have been densifying and systems of cities: consolidating more effectively in the most recent cycle. Chilean cities also have a more • Are more asymmetric and dominated by developed and efficient public transport their respective capital cities, in population Figure 5: The backbone than Colombian cities, on average. journey of Latin and governance terms, although less American cities uneven than many other nations in Latin Understanding the differences between the across the three main opportunity America assets and systems that cities inherit provides areas, in 2020 a useful way into assessing the magnitude • Inherit less affordable and resilient of the challenge to re-engineer the built transport systems environment and infrastructure in line with • Demonstrate more of a track record what is required to meet local and global of urban leadership on key agendas, emissions reduction targets. This can be an and of mounting and delivering system important first step in identifying logical innovations and plans concrete areas for intervention as well as • Have not yet successfully scaled as many highlighting the extent of awareness-raising mobility innovations that may be necessary. However, there are also important differences between the two systems of cities. For Source: The Business of Cities and Connected Places Catapult, based on composite performance. Colombian and Chilean cities example, while Colombian cities inherit highlighted in orange. See Appendix for full details of the indicators that comprise each of the three opportunity areas. a less dense built form and are sprawling 16 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 17

City ‘types’ and different Meanwhile Colombia’s five cities have Ecosystem and Enterprise Strategic Capacity City Systems and Assets priorities of Colombia and opportunities to: Dynamics and Ambition Chile’s cities 1. Build more mature and specialised Cities with high-performing Cities with innovation ecosystems that fulfil global Cities with universities Chile’s five cities all have room to innovate some capacity significant gaps but limited roles and enhance local productivity Santiago advantages and ‘catch up’ to leaders in Latin American, of metropolitan track record of and potential coverage and commercialising especially to: 2. Achieve more efficient built form that is to make major access, and basic research and Mismatcher Non-Converter Progressive strategic steps well connected by next-generation mobility priorities talent strengths 1. Build more integrated governance systems forward that convene multiple sources of leadership solutions and reliable digital platforms into fully fledged ecosystems and can drive bolder city-wide initiatives in 3. Convene and organise the partnerships and key agendas such as decarbonisation and platforms that can underpin a new cycle of For cities like Santiago, the imperative is to build more of the confidence and tools to undertake and implement green growth investment and innovation in key agendas bold system-changing reforms, address major metropolitan mobility gaps, and find ways to ensure more routes to commercialisation, experimentation and impact among its high-performing universities and research institutions. 2. Unlock new sources of financing and such as decarbonisation and green growth investment and develop tools to achieve These are summarised in the typology below, greater fiscal agility which uses performance, trend and strategy 3. Grow the skills base necessary to underpin data to observe which of the seven ‘types’ of a more mature and specialised innovation city each city appears to be currently, across Ecosystem and Enterprise Strategic Capacity each core dimension: city systems and assets, City Systems and Assets Table 2: The different ecosystem Dynamics and Ambition ‘types’ of Colombian ecosystem and enterprise dynamics, and and Chilean city across strategic capacity and ambition. Cities with the three opportunity high-performing Cities with Cities that areas universities moderate lack the but limited Concepción systems and fundamental track record of Ecosystem and Enterprise Strategic Capacity assets, with room capacity or commercialising City Systems and Assets to expand and incentives to Dynamics and Ambition research and Prospector improve with the Non-Converter Inhibitor pursue bold talent strengths right catalysts projects alone Cities with Cities with a Cities with into fully fledged Bogotá significant gaps competent some capacity ecosystems of metropolitan track record but advantages and coverage and limited openness potential to make For cities like Concepción, the opportunity is to scale existing innovations, testbeds and pilots to demonstrate the access, and basic or international major strategic Mismatcher Domestic Progressive path to transformed infrastructure systems, and work on the skills, partnerships and civic innovation foundations priorities reach steps forward that can create innovation momentum.

For Bogotá, there are clear opportunities to connect up the existing ecosystem, build more international relationships and partnerships, and at the same time establish pathways to address major metropolitan mobility and digital gaps.

Ecosystem and Enterprise Strategic Capacity Ecosystem and Enterprise Strategic Capacity City Systems and Assets City Systems and Assets Dynamics and Ambition Dynamics and Ambition

Cities with Cities that Cities with Cities with Cities with limited Cities with moderate lack the moderate promising knowledge assets some capacity Valparaíso systems and fundamental Medellín systems and commercial and and limited advantages and assets, with room capacity or assets, with room entrepreneurial translation and $ potential to make to expand and incentives to to expand and activity despite commercialisation major strategic Prospector improve with the Embryonic Inhibitor pursue bold Prospector improve with the Enterpriser knowledge and Progressive so far steps forward right catalysts projects alone right catalysts talent constraints

For cities like Valparaíso, while there is an ongoing priority to develop more localised capability and capacity to For Medellín, there is an opportunity to overlay cutting edge innovations on top of existing infrastructure, and to take the net zero initiative, there is also an opportunity to build on existing infrastructure by overlaying existing benefit from public-led strategic partnerships that can help to build confidence, explore potential reforms, and innovations, and to enter into longer-term partnerships necessary to build the confidence and resources for net mobilise the ecosystem in support of net zero transformation. zero transformation at scale. W 18 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 19

Ecosystem and Enterprise Strategic Capacity Strategic Capacity City Systems and Assets City Systems and Assets Ecosystem and Enterprise Dynamics Dynamics and Ambition and Ambition

Cities with Cities that Cities with Cities with limited Cities with Cities with limited some capacity lack the Santa significant gaps knowledge assets Iquique significant gaps knowledge assets advantages fundamental Marta of metropolitan and limited of metropolitan and limited and potential capacity or coverage and translation and coverage and translation and to make major incentives to access, and basic commercialisation access, and basic commercialisation Mismatcher Embryonic Progressive strategic steps Mismatcher Embryonic Inhibitor pursue bold priorities so far priorities so far forward projects alone

For cities like Santa Marta, with fewer urban assets to leverage but some capacity or leadership advantages to For cities like Iquique, with fewer assets or advantages to leverage, support is needed to foster and connect up the build on, support will be needed to foster and develop enterprise and resilient jobs, and there is an opportunity to ecosystem, consolidate and innovate around one or two key urban and economic agendas, and pursue projects support existing projects to scale and endure. that can establish momentum and visibility.

Colombia’s cities in Latin American In particular: context • There are big gaps between the more mature and Colombian cities mainly stand out for their more higher-momentum innovation ecosystems of Bogotá Ecosystem and Enterprise Strategic Capacity and Medellín and cities with an up to now less well- City Systems and Assets integrated governance arrangements, larger budgetary Dynamics and Ambition capacity, and higher fiscal agility. These are important established culture of enterprise and innovation Cities with advantages that can help Colombian cities to undertake (e.g. Santa Marta, Bucaramanga and Villavicencio) the scale and Cities with Cities with limited capacity to bold reforms in the next cycle. However, relative to • Especially in these smaller cities, tech partnerships significant gaps knowledge assets Antofagasta be a capable other Latin American cities that are also making rapid of metropolitan and limited and other urban innovation and co-creation partner and coverage and translation and improvements, they do not yet have especially agile, customer, but platforms can help to fuel the ecosystem and unlock access, and basic commercialisation Mismatcher Embryonic Promiser face financial efficient or innovative urban infrastructure networks, priorities so far investments needed to spur city-level change or strategy or many of the core ingredients necessary to support constraints • There may be imperatives for reform and partnership a more distributed model of urban innovation in the to ensure that key urban systems are more inclusive, next cycle (e.g. reliable digital platforms and high Cities like Antofagasta will have an opportunity to build on their capacity and calibre advantages, to unlock new affordable and resilient collaborations to mount more compelling strategies, and to address the urgent deficits in their infrastructure and density spatial form). mobility systems.

Colombian cities inherit greater potential to integrate governance systems and have higher budgetary capacity

Ecosystem and Enterprise Strategic Capacity Figure 6: Colombian City Systems and Assets Dynamics and Ambition cities’ performance, relative to Latin Cities which America have strong Cities with Cities with limited local capacity Bucaramanga significant gaps knowledge assets but have Villavicencio of metropolitan and limited not yet built coverage and translation and a decisive access, and basic commercialisation vision for Mismatcher Embryonic Catalyser priorities so far connectivity, innovation or net zero

For cities like Bucaramanga and Villavicencio, while there is an overdue priority to address urgent deficits in Source: The Business of Cities infrastructure and mobility systems, there is also an opportunity to use local capacity and potential for integrated research. *Latin America city growth and to build more decisive visions for decarbonisation, innovation and sustainable development. average refers to the average of 80 cities in Latin and Central America and the Caribbean. 20 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 21

Colombia’s cities and the promise of future digital and mobility innovation

Overall, in the next cycle of Latin American urbanisation, Colombia’s most established cities will be especially well placed to bridge the gap with the region’s leaders. They can work to deploy and implement new tech innovations that provide greater coverage, integration, transparency and reliability for digital systems. These can underpin long-term improvements to urban productivity, trade, wellbeing and sustainability. But Colombia’s smaller and medium-sized cities also have great potential to become competitive ‘middleweight’ cities in the future Latin American system. The extent to which they are able to make progress on the big agendas of the day – including decarbonisation – will depend on if they are able to apply comprehensive solutions to grow a cleaner and more sustainable mobility platform, make the most of business partnerships, and co-create mechanisms to achieve even more consistent investment and policy delivery.

In a fast-moving Latin American context, And they also have priorities to innovate in Chile’s cities in Latin American In particular: Colombian cities can build on the order to: context advantages of: • There is still a significant gap between 1. Improve the reliability and coverage of Chilean cities stand out for their more efficient the more mature and higher-momentum 1. More signs of actionable data, innovation, ‘whole city’ digital platforms in order and innovative transport networks, their more innovation ecosystem of Santiago and the transport and net zero strategies that can to support a more distributed model of developed track record of high-quality science rest of the nation’s cities help to chart a path to decarbonisation and innovation and technology research, and their more sustainable development • There may be a need for efforts to convene 2. Grow the pool of local specialised expertise established culture of citizen engagement. the tech ecosystem and unlock mechanisms 2. Their promising financial and fiscal necessary to deliver urban and place-level However, relative to Latin American cities to translate science and technical expertise capability, necessary to procure expertise transformations that are also making rapid improvements, into commercial advantage and spur change 3. Develop more inclusive and affordable they are not yet as widely recognised for • There may be imperatives for reform and 3. More integrated ‘whole city’ governance public transport systems to drive modal demonstrating leadership on the key agendas partnership to ensure that all types of city arrangements that can underpin bold shift and decarbonise the transport sector of the 21st century, partly as a result of their are able to envision and implement bold reforms in the next cycle lower budgetary capacity and fiscal agility. strategies on agendas such as green growth

Figure 7: Top areas where Chilean cities have also not yet fully translated and decarbonisation Colombian cities are their science and technology research ahead and behind relative to Latin American cities capability into the type of innovation activity that can underpin a more mature and higher *The 8 sub themes momentum ecosystem. among the 14 sub themes that make up the City Typology Index where Colombian cities, as a group, are furthest ahead and behind the regional average. See Appendix for full list of measures and sources in each sub theme. Regional average = average across 80 cities in Latin and Central America and the Caribbean. 22 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 23

Chilean cities have an opportunity to build more integrated, efficient Figure 9: Top areas and reliable infrastructure systems in the next cycle where Chilean cities are ahead and behind relative to Latin American cities Figure 8: Chilean cities’ performance, relative to Latin America

*The 8 sub themes among the 14 sub themes that make up the City Typology Index where Chilean cities, as a group, are furthest ahead and behind the regional average. See Appendix for full list of measures and sources in each sub theme. Regional average = average across 80 cities in Latin and Central America and the Caribbean.

Source: The Business of Cities research. *Latin America city average refers to the average of 80 cities in Latin and Central America and the Caribbean.

In a fast-moving Latin American context, And they also have priorities to innovate in Chile’s cities and the promise of future digital and Chilean cities can build on the advantages of: order to: mobility innovation 1. Stronger capability to deliver 1. Improve the reliability and coverage of transformational research that can help to ‘whole city’ digital platforms in order solve important societal challenges to support a more distributed model of Overall, in the next cycle of Latin American urbanisation, Chile’s most established cities innovation and connect up the different will be especially well placed to bridge the gap with the region’s leaders. They can build 2. Relatively efficient and innovative public parts of the ecosystem on an already capable public transport backbone and can work to scale existing mobility transport systems that can underpin a shift innovations, pilots and testbeds in order to accelerate modal shift and decarbonisation. to more sustainable modes of travel 2. Ensure that the scientific and research community have access to the resources But Chile’s smaller and medium-sized cities also have great potential to become competitive 3. Less rapidly sprawling built forms that ‘middleweight’ cities in the future Latin American system. The extent to which they are able needed to commercialise ideas and create can support more examples of at-scale to make progress on the big agendas of the day – including decarbonisation – will depend innovation spillovers realisation of testbeds, pilot projects and on their ability to build the confidence and resources necessary to underpin more ambitious promising urban innovations 3. Unlock new sources of finance and new strategies, and to leverage their capable universities and track record of citizen engagement tools to mount even more compelling and to deploy new innovations. ambitious strategies 24 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 25

Other medium-sized Latin American cities in regional context Outside of Colombia and Chile, many other medium-sized Latin American cities are beginning to Section 1.3 – The opportunity to leverage UK expertise make strides towards re-imagining their infrastructure systems, diversifying their economies, and asserting stronger ambitions for a net zero future. in the journey to net zero Introduction The UK was the first nation to industrialise and urbanise, and one of the first nations to experience de-industrialisation and urban decline. The UK is now leading a cycle of low-carbon re-urbanisation, both at home and in particular through world-class capabilities of companies that have understood that sustainable net zero cities require integrated approaches. Figure 10: The journey of selected As a source of solutions and innovations, the UK is on a path to becoming a distinctive net zero medium-sized Latin America cities market in that it simultaneously possesses: across the three main opportunity • World-leading sector-specific capability in areas essential for financing and building net zero cities areas, in 2020 in an integrated way. • A competitive ‘first mover’ advantage in niche technologies and place-based innovations that can be scaled globally to city governments and users. • Research, insight and applied urban experience in addressing a wider suite of implementation agendas that support the net zero urban transition. • Know-how around systems integration, breaking down siloes, and creating the regulatory and policy environment needed to spur change. • Experience at the UK city level of seeking to innovate around efficient and low-carbon city-building despite significant institutional deficits and place fragmentation. The UK’s own institutional context has spurred UK cities to develop distinctive appetite for net zero-related collaboration, innovation, sharing practices, and internationalising their Source: The Business of Cities and Connected Places Catapult, based on composite performance. Colombian and Chilean cities companies and reputation. highlighted in orange. See Appendix for full details of the indicators that comprise each of the three opportunity areas. These can be mapped in the following visual:

The majority of medium-sized Brazilian, strengths and on acquiring the support they Peruvian, Mexican and Ecuadorian cities need to innovate around key agendas (e.g. highlighted above inherit urban forms that housing, citizen engagement), scale existing prioritise private cars and are less well pilots and demonstrators, and develop a connected by public transport and digital more resilient jobs base. infrastructure. This confirms the imperative Where many of these cities have an to establish investments and spatial planning advantage is where their medium size enables tools to address digital and mobility gaps and a more integrated development approach to undertake and implement bold system- and organised ambition. Niteroi stands out changing reforms. as an example of a city being nimble on Most of these cities (although Joinville agendas allied to decarbonisation. Meanwhile and Florianópolis are to a limited extent many cities – from Arequipa and Cuenca to an exception) do not yet have mature or Londrina and Hermosillo – have some of specialised innovation economies, and the ‘Goldilocks’ scale advantages to become have a less visible track record of utilising capable partners and customers in the next knowledge and research assets or translating cycle. The main challenge these cities face and commercialising them into large job- is around unlocking the financial and fiscal producing companies. In many of these tools and collaborations needed to execute cities, the focus for the next cycle may need compelling strategies and to continuously to be on connecting up the existing industry drive improvements.

Medellín, Colombia 26 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 27

Sources: Press The UK’s cities are also leading the charge for net zero internationally and despite limited The UK’s core net zero export advantage releases and media articles. 8 capacity are growing their reach and influence on net zero agendas (see below).

Business Models, New Technologies Behaviour Change, Policy Leadership Capacity Building & Services Planning and & Innovation Systems Integration Model B2B, B2C, B2G B2B, B2G G2C, R&I C2C, G2G

Financing the Net • Financing green cities • Pioneering Green • Green finance • Financial regulation Zero Future • Green bonds Investment Bank education and training and standards • Platforms to simplify models • Enhancing bankability • Applying track record investing in green • Digital marketplaces of projects of climate-related • Design of public • Project design and financial disclosures private partnerships communication • Advice broker for local $ banks and firms • Green bond market intelligence and advisory Glasgow can become the city of our times, on the issue of our times. The launch of Sustainable Glasgow can be Low Carbon Urban • Advanced battery • Creation of flexible • Diverse energy • Energy market a landmark in our race to Net Zero.” Energy storage (silicon, energy networks research base design and regulation Susan Aitken, Glasgow City Council Leader lithium-sulfur) • Systems engineering • Footprinting, target expertise “We have been taking a lead in the • Flexible and affordable • Optimisation and setting and climate • Applying high battle against climate change and [the Belfast Resilience Strategy] will enable solar power solutions integration of smart action planning regulatory ambition us to ensure a collective response.” “In Newcastle we have made Frank McCoubrey, Mayor of Belfast • Carbon Capture and grid technologies expertise no secret of our bold ambitions Storage • Digital technologies • Demand-side to be Net Zero by 2030.” Nick Forbes, • Renewable energy for energy efficiency management and Newcastle City Council Leader optimisation and distribution energy storage optimisation

Clean Urban Mobility • EV hardware • Design of subscription • Design of PPPs • Pioneering Low “Cities and city-regions will make the and supporting services for metropolitan Emission Zones difference on climate change and, in infrastructure • Systems integration transport systems and setting rigorous decarbonising by 2038, Greater • Smartphone apps and • Diverse research base vehicle emissions “Offshore wind in Liverpool Bay has Manchester can create a blueprint for helped make the UK the largest every other city in the world. mobile payments for next-generation standards producer of wind power in Europe.” It wouldn’t be the first time.” • E-Freight technologies mobility • Proactive adoption Steve Rotherham, Andy Burnham, Mayor of Liverpool City Region and Mayor of Greater Manchester of net zero urban Acting Mayor of Liverpool mobility solutions and modal split initiatives “[We are] pushing ahead with the most “The new [Zero Carbon Homes] ambitious plans to tackle air pollution • Integrated transport Taskforce will help to think about how of any big city in the world.” authorities housebuilding can tackle the climate Sadiq Khan, Mayor of London emergency we are facing and help the region reach its net zero goal.” Andy Street, Low Carbon Urban • Architectural design • Integrated approaches • Tools and frameworks • Implementing bold Mayor of the West Midlands Built Environment • Digital Twin and masterplanning for planning, delivery net zero city-level technology • Whole life cycle, and integrated plans • Building Information circular economy governance • Encouraging carbon Modelling (BIM) approaches literacy • Digital technologies for urban service delivery • Civil engineering expertise

• Green construction “Bristol City Council and its partners are techniques hugely ambitious for cutting emissions and making our city more resilient, as shown in our One City Climate Strategy.” Marvin Rees, Mayor of Bristol 28 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 29

Figure 11: Illustrative chart to map a sample of UK startups and SMEs in net zero-related UK net zero SMEs sectors and their potential fit with Latin American cities’ net zero needs. Chart is indicative and has not been verified by the businesses themselves. The UK is home to exceptional growth-oriented SMEs with niche capabilities and experience to support cities to shift more rapidly towards net zero. These include areas such as smart streetlighting, lithium-ion battery storage, electric vehicle charging infrastructure and subscription models, and mobile ticketing and payments-as-a-service, where the UK is Strong initially observed fit with rapidly establishing itself as a global pacesetter. Connected Carbon Trust Latin American Energy Carbon Greyparrot Green Urban Chain cities’ needs Osprey Urban Electric Telensa finance Elmtronics Eight19 Connected ZPN Energy Networks Citymapper HumanForest Kerb Beryl Spark EV Azuri Urban energy Opportunities Vivacity Arrival Technology Technologies Oxis Energy Pod Point Zenobe Solar PV Ember core Labs Addionics SEaB Acceleron Urban mobility Beringar Nexeon As observed in the sections below, UK SMEs have many globally relevant capabilities in sectors ENIAN Tevva Awen Energy Emex Boxergy elmo Masabi Electron Motors Open Energi Urban built Future Planet essential to accelerating progress to net zero, especially in the ‘softer’ domains related to Alchera InstaVolt Project LimeJump Nozama.green environment Etopia Renovagen Capital Petalite ENSO Vortex IoT regulation, incentives, systems engineering and integration. Their export and scalable expertise Active Antonym Upside Emitwise MacRebur Small Building Naked Green potential will in future benefit from: Onto Swytch Energy Energy Consult businesses* Centre Global Pavegen Sero Airex Surple YAYZY Route Scaling SMEs** Konnect • A co-ordinated system to alert SMEs to non-UK language advertised opportunities, and to Bioregional Tepeo Retrofit Spark support them to respond efficiently Pivot Works Change Bulb Carbon Energy Wondrwall Clean Less immediately HELPFUL Clim8 Zeigo Solutions Invest • Ongoing support to UK cities to build capacity and resources to mobilise around net zero visible fit with Bboxx and showcase progress in an internationally relevant way to overseas decision makers and Latin American investors cities’ needs

• More structured support to share UK global expertise and to combine the different sectors that Domestic Visible appetite Established Observed contribute to a low-carbon system into a smart integrated offer orientation with for global growth presence in presence in global promise emerging Latin American • Support for UK net zero expertise as a package, how it can complement existing capabilities markets markets in cities, and link to supply and delivery on the ground

• Improved institutional machinery to support small UK companies in sustained city-wide Source: The Business of Cities research. Note: The shaded box marks the companies that seem on initial evidence to have the highest potential to help Latin American cities accelerate towards net zero. Other businesses may well have specific contributions to make not partnerships abroad accounted for in this short review. The fit with Latin American cities needs has been assessed through research into a range of cities in Latin America, with a particular focus on their inherited assets, ambitions to become net zero and particular sectors, platforms and • Greater alignment between the geometry of institutions seeking to export services and know- projects being prioritised to catalyse decarbonisation. *Small businesses = up to 50 employees. **Scaling SMEs = 50-250 employees. how and the geometry of solutions required

Opportunities in Latin America As cities across the world transition towards a net zero goal in the finance, energy, mobility and built environment sectors, more opportunities are being created for UK SMEs to export their technology and services, business models, and policy and regulation expertise. This briefing note includes examples of partnerships that are already underway, with a particular focus on cities in Latin America. UK Advantage 1: Financing the Net Zero Future An indicative scan based on publicly available company databases, practitioner recommendations and existing UK export missions points to a broad range of opportunities for Examples of scaling SMEs Examples of key knowledge Sector Major players and enablers UK SMEs to serve and support the transition to net zero in Latin American countries, based on and small businesses institutions their current market presence and offering to markets and users in Latin American cities (see 9 Green Finance Institute the illustrative chart below). CarbonChain, Clim8 Invest, Green Investment Group UK Centre for Greening Electron, In general, the most important areas for mitigation in Latin American cities – particularly smaller Green urban Barclays Finance and Investment Future Planet Capital, and medium sized cities – are around decarbonising transport, energy and waste.10 For example, finance HSBC HELPFUL, Regal 38I83, University of Oxford recent data suggests that the mobility sector accounts for nearly half of Brazil’s urban abatement Natwest Spark Change, ENIAN Sustainable Finance potential to 2050, and that throughout Brazil around 40% of cumulative abatement potential is Programme held in cities with fewer than 300,000 inhabitants.11 30 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 31

The UK is recognised as a global leader towards sustainable assets. Meanwhile UK Capacity building clear pathways to unlocking commercial in green finance. London in particular Export Finance is one of the world’s most green finance in Latin American cities • Green finance education and training. is a well-established and leading centre flexible export credit agencies. Its lower The Green Finance Institute (GFI) offers • Green bond market intelligence and for sustainable finance services, providing minimum domestic content requirement a transferable Green Finance Education advisory. The Climate Bonds Initiative a transferable wealth of experience and (20%) has been instrumental in helping to Charter to educate professionals in the provides market intelligence on the connections.12 UK SMEs in the fintech provide the debt financing necessary for finance sector on green and sustainable evolution of the global green bonds industry are helping to lead innovations UK exporters to win and fulfil contracts principles, and a programme to match market, showcases green infrastructure and facilitating the flow of green finance, with overseas buyers – especially in sectors experts with cities in Latin America to opportunities and provides advisory by simplifying investments into green like renewable energy and electric vehicles provide financial and policy expertise.14 services that can help investors, instruments and companies, and increasing where large upfront working capital and Meanwhile the Oxford Sustainable Finance governments and developers understand transparency of carbon emissions in contract bond requirements can be a Programme runs the leading short course what investments will drive a low investment portfolios. Meanwhile large banks barrier for SMEs on sustainable finance globally, and the carbon economy16 and FTSE 100 companies provide investment • Green bonds. The London Stock Exchange Chartered Banker Institute’s Green Finance for environmental projects and business and its dedicated global sustainable Certificate has helped more than 30,000 Policy and regulation: ventures, seed-funding to assist the scale investment centre was the first global banking and finance professionals to • Financial regulation and standards. up of green tech companies, and expertise exchange to introduce a dedicated green gain the world’s first global benchmark The British Standards Institution (BSI) on financial models for green initiatives. bond segment, and is home to the first qualification for sustainable finance15 is leading global efforts to define best UK expertise in this area encapsulates: certified green bonds.13 The Climate • Capacity building for bankability of practices for sustainable finance, through Bonds Initiative, which has a strong • ‘Green finance’ expertise – expertise clean urban infrastructure projects. its Sustainable Finance Standardisation regional presence in Latin America, is regarding how to strengthen sustainability The UK has demonstrated exportable Programme. In 2020, the BSI published developing a large liquid green and climate reporting and standards, disclosure and leadership and technical skills in a publicly available framework with the bonds market to help drive down costs monitoring, and sustainability compliance structuring facilities and projects to aim of strengthening the ability of financial for climate projects in developed and institutions of all sizes and in all regions • ‘Financing green’ expertise – in terms of catalyse finance capital, thus helping emerging markets to align their decision making to global the track record of supplying investment build local financing capacity and green • Green finance platforms that simplify initiatives like the Paris Agreement.17 The into city systems and assets that can finance skills investing in green finance. Many UK GFI assembles world leading public and underpin a shift to decarbonisation • Project design and communication. SMEs and start-ups are at the forefront private sector financial and policy experts The UK is uniquely placed to help to In general, the current UK approach to of global efforts to improve the ease for to collaborate on financial innovations that structure and communicate projects ‘financing green’ in Latin American markets citizens and institutions to invest in carbon can help unlock investment to facilitate a to make them more attractive to green especially relates to building capacity around instruments transition to net zero how to structure projects to enhance their finance. Financial experts can also assist • Applying track record of Climate- attractiveness to private sector and capital Business models and systems with the design of business models for Related Financial Disclosures. The markets. Initiatives relating to the greening of integration tenders UK Financial Stability Board’s Task Force the financial system are newer but provide • Green Investment Bank model to • Facilitation of Public Private for Climate-Related Financial Disclosures much room for contribution. raise investment in cities: UK green Partnerships. The UK financial sector provides a framework for companies and Within these two main areas, UK expertise is banks provide a world-leading successful excels in structuring and facilitating other organisations around the world to focused on: and tested model for specialised public public private partnerships that can help develop more effective climate-related to create an enabling environment for Technology and services finance institutions that mobilise private financial disclosures, encouraging them investment into green economy solutions. stimulating, shaping and de-risking private to identify and then disclose details of the • Financial capital. The UK is home to This can be replicated in emerging markets sector activity and investment. This can be material risks and opportunities arising unique pools of private and institutional to improve the viability of projects in the used to meet appetite in Latin American from climate change under different capital and expertise in financing green waste, water and energy sectors cities for partnerships with private sector scenarios18 projects in cities, which can be leveraged contribution • Creation of digital marketplaces. Some to deliver net zero innovations at scale, and SMEs are utilising technology platforms and • Advice to local and regional banks on finance renewable energy and sustainable smartphone apps to simplify investments facilitating green investment. UK firms infrastructure at pace. UK based asset into low carbon sectors have an established track record of building managers are leading the restructuring capacity, reducing barriers and providing of pension funds to direct investments 32 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 33

In particular, UK expertise is focused on: network providers are leading efforts Technology and services: to share technology for automation and Presence in Latin America control, design solutions to adapt networks • Advanced battery storage. Many UK to changing energy needs, and share the start-ups and SMEs are driving next regulation structure needed to set up The UK, facilitated by government partnerships, is experienced at applying investment generation battery energy storage solutions new markets and financial expertise to assist decarbonisation in Latin American cities.19 The UK- for cities. These range from using new Colombia Partnership for Sustainable Growth leveraged the City of London’s expertise to • Systems engineering expertise. The UK silicon and lithium materials for battery help turn the finance industry in Colombia green and the UK Partnering for Accelerated energy sector has transferable expertise in applications and smart 3D structures to Climate Transitions (UK-PACT) initiative provided finance structuring for over 100 companies bringing together different energy vectors 20 improve performance, to creating batteries in Colombia’s industrial sector, including in the Santander department. and removing the siloes between systems, based on recyclable materials that can including the digital, transport, heat and UK Export Finance supported a loan of up to 85% to help Mexico City finance a contract be used for a range of urban applications for double-decker buses from Alexander Dennis in order to decongest the city centre, building sectors. This includes transferable including electric vehicles and connecting and its team of International Export Finance Executives, including representatives in experience working with energy providers renewable energy to grid infrastructure Colombia, Mexico and Brazil, helps to promote the UK’s ability to support exports through to help plan the whole system via visioning guarantees and loans to buyers and exporters as well as to provide advice on financing • Flexible and affordable solar power and target setting exercises options in-country.21 solutions. UK energy providers and • Optimisation and integration of Meanwhile UK investment banks are well placed to advise and structure green bonds and SMEs are at the leading edge of urban smart-grid technologies. Many UK SMEs regular issuances in Colombia’s capitals market, and there are also opportunities for UK solar technologies. This includes the deploy expertise on the optimisation and green finance actors to help build the capacity of financial institutions. Both Colombia and development of space-efficient solar integration of smart energy systems, for Chile have a high interest in establishing green banks based off successful global models panel designs with lower manufacturing example on where and how to co-locate and are encouraging existing financial institutions to green their investment portfolios.22 costs, which can be adapted to any rooftop storage and generation facilities and the or building, and the scaling up of solar installation of smart meters power into urban environment via pay-as- you-go systems • Digital technologies for energy efficiency and distribution. SMEs and • Carbon Capture and Storage (CCS) UK Advantage 2: Low Carbon Urban Energy network providers use data analytics and technology. UK firms and universities have cloud-based software to optimise energy been sharing knowledge on CCS with many Examples of scaling Examples of small Examples of key efficiency and distribution processes. Sector Major players countries around the world, including SMEs businesses knowledge institutions The use of AI, digital platforms, and new China and Mexico.24 The UK CCS research control and automation technologies Azuri Technologies Arup, Mott Macdonald, Acceleron, Addionics, institute is a major interface of international Faraday Institution is helping to reduce complexity and Anglo American, BP, Bboxx Awen, Boxergy, Carbon research and leads an international increase transparency around the uptake Centrica, Cornwall Bulb Clean, Connected EPSRC at the UKRI working group to accelerate deployment of Low Insight, Delta EE, Energy, Eight19, of renewable energy, for example by using Carbon Trust UK Battery CCS globally Carbon EA Technology, ICF Emitwise, Naked Energy, machine learning to create a networking LimeJump Industrialisation Centre Urban Consulting, Octopus Nozama.Green, Open • Renewable energy optimisation. SMEs platform that reduces the complexity of Energy Energy, OVO Energy, PA Nexeon Energi, Renovagen, UK CCS Research and research institutions are pioneering energy contractual processes. Consulting, Palladium Oxford PV Surple, Tepeo, Upside Centre technologies for energy optimisation. For International, RSK Energy, YAYZY, Zeigo, Capacity building: Oxis Energy UKERC example, UK SMEs are designing energy Group, SSE Renewables Zenobe, ZPN Energy SEaB Energy harvesting solutions that increase energy • Footprinting, target setting and energy efficiency from solar cells, which can be action planning. The UK has a unique cadre used in urban solar panels of world-leading environmental consulting UK businesses are at the international forefront of a number of net zero urban energy technologies. Systems integration: start-ups capable of partnering with Capabilities encompass all stages of the energy life cycle, from research and design to financing and development, businesses, organisations and governments and the scaling-up, implementation and management of urban energy technologies. Urban services and consulting • Creation of flexible energy networks. to advise on the measuring and monitoring firms, alongside startups and scaling SMEs, have demonstrable and transferable expertise in the urban green The UK is world leading in the design of of urban carbon footprints and set targets energy sector. The UK’s innovative SMEs are more highly specialised in energy and other sectors both directly and new flexible and hybrid energy markets, for energy transition. The UK is also home 23 indirectly related to net zero. including smart energy grids and the first to the 1st mobile banking compatible app zero-carbon gas grid, as it works to unlock that allows consumers to track the carbon the capacity of its own network. Energy footprint of their purchases25 34 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 35

• Diverse energy research base. UK flexible energy market. UK companies, UK Advantage 3. Clean Urban Mobility enterprises, universities and research including management consulting firms, can institutes also provide demonstrable offer market design and policy expertise Examples of scaling Examples of small Examples of key knowledge Sector Major players expertise in green urban energy research for cities looking to copy this regulatory SMEs businesses institutions that can help accelerate the transition to setup, for example through guiding cities on net zero. Several larger players have formed how to use policy and financial incentives Coventry University Institute for dedicated research institutes and innovation to encourage investment into low-carbon Future Transport and Cities Beryl Alchera, Antonym, platforms to share knowledge and energy solutions. This is especially relevant Network Rail (within UKRRIN) Bulb Connected Kerb, Ember collaborate with global research institutions to middle-income countries, where Arrival Core, elmo, Elmtronics, The Welding Institute Clean CityMapper and industry experts. The UK is also home energy markets tend to be more vertically London ENSO, HumanForest, Urban Onto UCL Centre For Transport Studies to a multitude of research institutions and integrated and there are fewer incentives for Electric Vehicle Osprey, Petalite, Spark Mobility SMEs who collaborate on green innovations competition26 Company Masabi EV, Swytch, Urban UCL Energy Institute MaaSLab (LEVC) in hydrogen, solar and hybrid energies Pod Point Electric Networks, • Applying high regulatory ambition. University of Birmingham Tevva Motors Vivacity Labs • Demand-side management and energy The UK and its cities are leading by example University of Exeter Future of storage optimisation. UK SMEs are in the decarbonisation of their energy Mobility Centre leading efforts to create new smart meters, systems, having set ambitious targets and smart tariffs and data software systems that climate action plans. UK optimise the storage of renewable energy cities have decarbonised rapidly since UK businesses and research institutions • Building out the necessary supporting and the use of energy through time to reduce the beginning of the 21st century.27 have acquired significant and infrastructure. SMEs have become agile the use of grid intake. For example, the In particular, UK cities stand out for: transferable expertise in low carbon providers of electric infrastructure in cities, Equiwatt energy management app rewards – Their experience in reducing emissions urban mobility in a range of city namely on-street, rapid-charging points and customers for cutting consumption during whilst diversifying their economies, which contexts.31 Investment into transforming hubs. Large public transport institutions peak times can provide important and transferable the UK’s domestic transport sector has and universities have expertise in how to Policy leadership: insights for Latin American governments supported businesses to become well placed connect electric transport to the existing – Their track record of setting up net zero to share best practices globally within cities grid infrastructure and transport network • Energy market design and regulation advisory groups that convene multiple and the urban businesses looking to serve expertise. The UK is a leader in the • Smartphone apps and mobile ticketing sectors and municipalities from across them. Much of the UK contribution in this energy policy and regulatory space, as the for public transport. UK SMEs are metropolitan areas space lies in its expertise in providing the challenges faced by its own energy industry spearheading digital innovations to hardware, software and systems to incentivise have encouraged it to innovate and adapt. – Applying an effective model of climate support net zero transport. This includes a switch to electric mobility and improve The UK’s reformed regulations that have legislation, which can help inform the smartphone apps for city-wide bikeshare sustainability of road-based transport systems underpinned the creation of an output- institutional and regulatory frameworks schemes and the effective integration of big on the one hand, and its experience creating based energy market have been critical required for implementation of national open transport data sets to optimise travel the data tools that can help to promote to the launch of a more competitive and policies in cities efficiency. UK firms lead in ‘fare payments smarter use of existing transport assets and as a service’, mobile ticketing, and underpin large scale systems improvement contactless payments systems for public on the other. transport, which help to drive modal shift In particular, expertise lies in: Presence in Latin America • E-freight technologies. UK SMEs have Technologies and services: agile expertise in E-trucks for freight and urban deliveries, developing and Many UK urban services firms already have an established presence in middle income • Electric vehicles (EVs) hardware. The manufacturing battery packs and on-board countries in Latin America, including Colombia and Chile. For example, Mott Macdonald has UK is a leader for new energy efficient EV battery-management technology capable of undertaken projects in Calama in Chile and Bogotá and Medellín in Colombia for over 40 years, models that meet low emission targets – 28 enhancing cost effectiveness including designing the Medellín Metro system and five airport masterplans in Colombia. It has for electric buses, cars, taxis, and private worked in the region’s urban environment, power and transport sectors for over 40 years, and is bikes. SMEs have created new production a partner globally in 100GW+ worth of renewable energy projects. Partnership between the UK methods that can help with delivery of EV and Latin America also occurs through government projects.29 The UK-PACT project involves UK models at scale companies providing financial and technical analysis to help scale renewable energy clusters in

emerging markets.30 In Colombia the project has helped to scale up the solar cluster in Tolima. 36 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 37

Business models and systems – Low-emission power systems for rail • Experience creating integrated to raise sustainable local funds and integration: infrastructure, often with a specific metropolitan transport an increased ease of use as a result of focus on hydrogen33 authorities. Several UK cities boast metropolitan-scale payments systems • Subscription services, pay as you go world-renowned transport authorities such as the TfL Oyster Card. Transport schemes and new leasing models. – Exploring the readiness of grid that oversee the development and for London (TfL) is considered to be UK companies possess a niche in designing infrastructure for electric vehicles delivery of all metropolitan public a world-leading transport authority subscription services, pay-as-you go – Solving challenges in integrating electric transport services. Many UK cities which is integrated with other policy schemes and new leasing models. These transport systems into the existing have integrated delivery into a co- areas (e.g. housing and land use are necessary to drive consumer uptake networks, including supply chain ordinated network under a strong planning), and many cities, such as by reducing the cost of commitment from issues, electric vehicles and charging single governance structure, which Auckland and Sydney, have organised city customers, and de-risking potential 34 infrastructure, and electric rail networks allows for clear strategic visions, their own authorities around this investments. Such expertise can support alignment of stakeholders, the ability model35 the wider adoption of EVs in cities in Policy leadership: middle-income countries • Pioneering Low Emissions Zones and • Integrated and retrofitted transport setting rigorous emission vehicle infrastructure. Metropolitan institutions, standards. UK cities have been at the such as TfL and Transport for the West forefront of global efforts to increase the Presence in Latin America Midlands have accumulated expertise in stringency of vehicle emissions restrictions. developing and retrofitting existing trains Around 10% of the world’s urban low Many UK green transport SMEs have appetite for global expansion and mass adoption.36 and railways with new technologies emission zones are located in UK cities Citymapper already serves users in over 41 metropolitan areas, including Mexico City and including Glasgow, Norwich, Bristol and 37 Capacity building: São Paulo. Other small SMEs have also begun to gain a foothold in global markets, through York. London launched the world’s first knowledge sharing and expanding R&D facilities abroad.38 The Colombian government • Design of Public Private Partnerships Ultra-Low Emission Zone with increased recognises the UK as its partner of choice on rail development, and there many future (PPPs) for metropolitan transport restrictions, and Oxford has plans to opportunities for partnerships in green urban mobility.39 systems. The UK has substantial implement the world’s first Zero Emission capabilities in structuring and managing Zone scheme in 2021 PPP agreements and since 2018, it has • Proactive adoption of net zero urban been leading new ways of structuring mobility solutions and modal split partnerships that are flexible and adaptable initiatives. Some cities, including Milton UK Advantage 4: Low Carbon Urban Built Environment to technical changes, such as through Keynes and Leicester, have been involved the harnessing of big data in the operation in developing and deploying their own Examples of scaling Examples of small Examples of key 32 Sector Major players of integrated transport systems. The electric vehicle fleets, or promoting electric SMEs businesses knowledge institutions UK public and private sector can provide vehicles for public transport in city centres. UCL CASA support for complexities in partnership Others, such as London and Manchester AECOM, Arup, Mott Airex, Beringar, Emex, Macdonald (advanced Grey parrot, UKGBC design, procurement processes and have been adapting road infrastructure to stakeholder management in transport urban services, make space for more cycling, by widening Green Consult Global InstaVolt, Lixea UKRI and University of Low masterplanning and Glasgow Big Urban Data infrastructure projects and systems in pavements, creating pedestrian areas and MacRebur, Pavegen, Carbon civil engineering) Active Building Centre Centre middle-income cities Pivot Energy, low-traffic neighbourhoods in city centres Urban Deloitte, EY, Mott Bioregional University of Cambridge • Diverse research base. UK research and building extensive safe and connected Built Macdonald, PwC Project Etopia, Reath Green Alliance Martin Centre for bike lane networks Environ- (energy systems) institutions, business and cities are Energy Saving Trust Route Konnect, Architectural and Urban ment undertaking globally leading research in Foster & Partners, Studies Ansys Granta Sero, Space Syntax, urban green mobility. Many universities Atkins, BDP (sustainable buildings and design) Telensa, Topolytics University of Cambridge have dedicated research centres that Centre for Digital Built Vortex IoT, Wondrwall are well engaged with industry experts Britain and government institutions to share knowledge, particularly in: 38 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 39

The UK has a globally competitive – Create smart urban systems that integrate Greyparrot’s automated waste monitoring – Their experience in integrated place- advanced urban built environment renewable energy, construction and system is helping to analyse large waste based city strategies sector with experience to accelerate net intelligent digital technologies flows.45 UK research institutions are also – Applying digital technology to improve zero in cities.40 Architecture, engineering leading global research and innovation – Develop more intelligent and agile infrastructure (see below) and consulting firms, alongside tech start- in the circular economy, specifically in transport systems that are better suited ups and scaling SMEs, deliver technical and materials manufacturing and construction, – Policy innovations that encourage public- to shifts in demand strategic expertise in spatial design, physical the bioeconomy, recycling technologies and private partnerships and public carbon developments and digital innovations which – Build out smart streetlighting systems value from waste literacy 41 that combine energy efficiency with provide large urban development efficiencies. – Incorporating nature-based solutions other public realm benefits (air quality Capacity building: In particular, expertise is focused on: sensors etc) • Encouraging carbon literacy. UK cities • Tools and frameworks for planning, Technology and services: are increasingly advocating the education • Civil engineering expertise. The UK’s delivery and integrated governance. of its citizens and companies in regard to • Architectural design. The UK has deeply world-leading civil engineering sector UK cities have at their disposal many tools emission activities and low-carbon sectors. embedded green design and commercial pursues whole lifecycle approaches to and frameworks for the planning and Education initiatives can be applied to city capabilities to serve new individual energy new infrastructure and system retrofits delivery of low-carbon developments. populations across the world efficient and smart buildings and for wider in cities around the world43 This includes financial and fiscal tools urban green infrastructure such as tax increment financing and value • Purposeful coalitions for the net zero • Green construction techniques. capture mechanisms, a more established agenda. Actors in the low-carbon built • Deployment of digital twin technology. The UK’s construction sector, which track record of integrated land use and environment sector are integrating their The UK leads at applying digital twin generated exports worth £1.6billion in transport planning, and mature systems for practical capabilities by forming replicable technology for urban infrastructure 2018,44 is mobilised by the UK Green incorporating nature-based solutions as a coalition groups that transcend siloed projects, to provide analytical insights Building Council to share expertise and way to simultaneously solve infrastructure relationships between private sector, public into where buildings and urban assets can develop green urbanism techniques with challenges, enhance public spaces, and sector and academic actors and encourage improve energy efficiency. Researchers and developers, designers, occupiers and policy empower local leaders integrated place-based solutions to the industry experts have together fostered an makers, and use low-carbon materials net zero agenda in cities. For example, emerging digital ecosystem and are setting during construction Policy and regulation Mott Macdonald’s Net zero Infrastructure ethical parameters42 Industry Coalition brings together academic Planning and systems integration: • Bold city plans. Many UK cities are leading • Standards for Building Information institutions, local authorities, transport by example and have developed replicable Modelling (BIM). The UK is world-leading • Integrated approaches and institutions and built environment actors net zero models. These have been achieved in setting rigorous and implementable masterplanning. UK firms are known for to explore place-based and industry-wide through international partnerships and pilot international standards for BIM software, integrated, full system planning approaches solutions for challenges associated with the schemes. Cities such as London, Bristol, whose virtual infrastructure designs that are capable of aligning infrastructure decarbonisation agenda in the engineering Glasgow, Manchester, Birmingham and increase efficiencies in the design, plans with sustainability targets. Target- and infrastructure sectors46 Milton Keynes all stand out for: construction and management of green setting and certifications are a hallmark of city infrastructure their approaches to sustainable building design. The UK also has many sources • Digital technologies to smooth the of expertise to integrate and embed net at-scale, integrated delivery of urban Presence in Latin America zero policies from the start of long-term services. UK SMEs are applying data developments in city-wide networks and analytics and other digital technologies to place-based plans Many UK businesses and cities are already actively sharing expertise and best practices scale urban streetlighting, smart buildings globally. Large urban service firms have an established global presence in middle • Whole life cycle, circular economy and heating systems and intelligent income countries in Latin America, working on engineering, building design and master transportation. Their deployment of approaches. UK SMEs are applying plans. Scaling SMEs in master planning and digital urban innovation have established affordable IoT and other data analytics data analytics and machine learning to international knowledge sharing and collaborations, such as Bioregional, who ran a ‘One tools is helping cities to: increase transparency and automation Planet Cities’ programme which brought together businesses, community organisations, and reduce waste in waste facilities and government councils and schools in the UK, Canada, Denmark and South Africa to share – Increase building energy efficiency and recycling chains. For example, Reath are 10 principles to create and structure locally owned sustainability visions. Meanwhile cities provide owner-occupiers with the tools to developing the world’s first global Open including Manchester and London have already adopted global approaches to their urban develop data-driven real estate strategies Data Standard for reusable packaging, and built environment, and have shared replicable models throughout Europe. 40 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 41

2 Moving Forward and COP26

Notwithstanding current challenges, UK solutions In addition to the above and concretely: • 135 attendees out of 264 registered at the project webinar agreed to receive the 6 detailed city providers have the capability, and, if provided with profiles once available. This demonstrates the importance given to solutions aiming at addressing adequate information, are well placed, to solve key net zero challenges issues faced by Latin American cities in addressing • The City of Villavicencio in Colombia has already expressed interest to FCDO Colombia to work further with a UK solution provider showcased during the project in the field of mobility and decarbonisation. street lighting. More similar requests are expected • Connected Places Catapult is exploring an opportunity to conduct a City Challenge in Brazil / The results from the project and webinar have helped to identify what those challenges are and to Latin America in collaboration with the SIN Network and CAF. The outcomes of this challenge provide a repository of which UK SMEs seem to be best positioned to address them. will be presented at COP26 As the UK’s innovation accelerator for cities, transport, and places, Connected Places Catapult • Ongoing discussion with the Centre for the 4th Industrial revolution from the World Economic benefits from a strategic status to convene the market alongside UK SMEs and academia and to Forum based in Colombia around Sustainable policies in Latin America and project follow-up spark new possibilities to address these challenges. By promoting partnerships with government activities and local authorities in the UK and in Latin America, development banks such as CAF – Latin • Ongoing discussion with C40 on organising jointly a Multi-Cities challenge in Latin America America Development Bank, and international organisations that place sustainable actions at as a follow-up from the project and ensuring UK expertise particularly from SMEs continue the forefront of their ambitions such as ICLEI and C40, Connected Places Catapult can help to be showcased catalyse change. • Connected Places Catapult is working together with CIVTECH from the Scottish government Currently, Connected Places Catapult is conducting ongoing discussions with local stakeholders to generate opportunities for UK SMEs in Latin America through a challenge-based approach for the delivery of follow-up projects and other related activities such as thought leadership pieces promoting the assets and information delivered during the project in line with the UK’s preparation for a successful COP26. Particular focus will be given to promoting UK SMEs identified in the project as solution providers for the net zero challenges in the region. Latin America continues to present opportunities for UK companies on net zero related issues. COP26 and its follow-up activities are a good opportunity to further spark the generation of opportunities locally. The region’s challenges and willingness from cities to develop robust climate change action plans represent an opportunity for an expanded UK-Latin America partnership. Connected Places Catapult and The Business of Cities are looking forward to continuing the collaboration with Innovate UK and other UK partners for additional follow-up project activities. 42 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 43

Appendices A. Examples of UK expertise and leadership in the journey to net zero

Examples of UK expertise and leadership in need of assistance.55 City governments can use Examples of UK expertise and leadership 9. OXIS Energy partnered with CODEMGE and Green Finance this to set up green banks and financial vehicles in Low Carbon Urban Energy Mercedes Benz in 2020 to develop the world’s Global Leadership that will attract private investment for low-carbon Global Leadership first Li-S manufacturing plant in the city of solutions. It will also map out the skills required to Juiz de Fora, Brazil. OXIS will supply the 1. The UK government is the largest contributor to the 1. The UK has decarbonised faster than any other support the successful formation of green banks, technology to produce Li-S cells61 International Development Association and is country so far in the 21st century, with emissions and connect expertise to where it is needed most a founding member of the Climate Investment decreasing by 3.7% on average each year. The UK 10. Zeigo launched a digital platform for Power Funds, to which it has invested almost £1.8 billion 9. The Climate Finance Accelerator, a UK funded was the fastest G20 country to decarbonise its Purchase Agreements. Artificial Intelligence since 200848 technical assistance programme, leverages UK- economy since 2000, and has cut emissions by 40% simplifies the contractual process, connecting based green finance experts, who have provided between 1990 and 2018, even as the economy has corporate energy buyers with generators and Institutional Depth and Capacity assistance to policy makers and finance experts in grown by 70%58 suppliers of renewable energy 2. The UK hosts organisations including the Green Colombia, Mexico, Nigeria and Vietnam56 2. Mott Macdonald is the #1 technical advisor for Ambitious Cities Investment Bank, the London Energy Efficiency 10. The UK-PACT Green Recovery Challenge Fund 59 renewable energy infrastructure 11. UK cities together reduced their emissions by Fund, the Climate Bonds Initiative and Climate is a £12 million capacity-building fund to support 49 3. The Climate Group EP100, including Arup and 29% from 2005-2015 in comparison to the national Change Capital low-carbon transitions in ODA-eligible countries, Mott Macdonald, encourages knowledge sharing to average of 27%. In Exeter, the top performer, 3. To date, 155 green bonds and 7 green issuers including in Latin America57 accelerate the energy-transition emissions fell by 44%62 are listed on the Sustainable Bond Market on the Successful SMEs London Stock Exchange (LSE). As of 2020, the Successful SMEs 12. The Mayor of London launched the London 11. Clim8 Invest – a UK sustainable investing app Power energy company aiming to make low- amount raised in green bonds on the LSE is £22 4. Acceleron is using new battery technologies to 50 – provides consumers with a simple means for carbon energy accessible and affordable to billion create the world’s first recyclable, upgradeable and investing in a targeted portfolio of publicly listed London residents 4. Camco Clean Energy have pioneered renewable serviceable lithium-ion batteries companies that are already making an impact in 13. Manchester has mobilised 60 organisations into energy finance by creating a Renewable Energy 5. Bboxx has developed “plug and play” solar home the race to decarbonisation an ambitious climate change partnership, to share Performance Platform. This has mobilised systems that are currently operating in 11 African 12. SparkChange has created a technology platform best practices, set collaborative targets and provide business investment in small scale renewable and Asian countries.60 It has also created a digital that simplifies institutional investments in carbon transparent updates. These account for 20% of the energy projects in Sub -Saharan Africa, including in IoT platform to enable remote monitoring of instruments. The platform provides investors with city’s greenhouse gas emissions63 rapidly urbanising cities such as Abuja, Kano and building energy usag. 51 direct exposure to the value of physical carbon Bujumbura Ambitious Governments allowances and an ability to bypass complex 6. Emitwise has created smart data software to help 5. Unilever is providing £860 million in a climate and costly requirements associated with current commercial businesses calculate and monitor their 14. The 2050 Calculator was developed by the UK and nature fund to be used by its brands over market entry mechanisms carbon footprints government to help explore emission reduction the next 10 years to enable more decisive and 7. Carbon Clean Solutions has researched and pathways. To date it has been used in over 15 52 13. CarbonChain offers carbon foot printing meaningful climate action countries, including Colombia64 and carbon risk assessments of trade finance created a modular, scalable CCS solution that can 6. Barclays have created an Energy Banking Team portfolios, to help improve emissions in the supply be adapted to any site 15. The UK jointly launched the Powering Past Coal and pledged £100 billion of investment by 203053 chains of polluting industries, including oil and 8. The Carbon Trust has helped to unlock the Alliance at COP23 to provide knowledge-sharing to 7. All major UK banks offer green loan gas, metals and agriculture Colombian FENOGE Fund to finance energy access help other countries to move away from unabated programmes54 coal power65 14. Regal 38I38 provides green financial services and energy efficiency under the UK-PACT project Capacity building and a virtual sustainable banking platform based 8. The Green Finance Institute is working on Green Blockchain technology, specifically to develop a Green Bank Design Platform to for Emerging Countries. This platform helps consolidate and match UK expertise to those in clients make investment decisions that meet environmental criteria 44 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 45

Examples of UK expertise and leadership Ambitious Cities Examples of UK expertise and leadership been selected to connect 22,000 streetlights for in Clean Urban Mobility 10. Coventry is a hub for low-carbon transport in Low Carbon Urban Built Environment the major streetlight modernisation programme in 78 Global Leadership - it hosts LEVC, a global leader and the UK’s only Global Leadership Uberlandia, Brazil manufacturer of fully electric taxis. A new clean 1. 1 in 5 zero emission cars sold in Europe are made in 1. The UK is a global leader in the use of BIM Ambitious Cities 66 transport hub has been announced, to spearhead 73 the UK software, with 70% industry usage 9. The Accelerator Cities Project saw 5 city research into EVs, hydrogen and biomethane for 2. The Bloomberg Building is widely considered to authorities combine with industry experts to Successful SMEs transport68 be the world’s most sustainable office building74 catalyse action on home retrofitting79 2. Arrival has a unique manufacturing process for 11. Leicester City Council is one of the many cities 3. The National Digital Twin project led by 10. Bristol was crowned the European Green Capital multiple types of EVs, moulding modular materials that is investing heavily in electrifying its vehicle Cambridge’s Centre for Digital Built Britain for its ‘One City’ climate strategy model80 into shape in micro factories, rather than using fleet and is piloting 22 local on-street electric alongside Atkins and Ordnance Survey, is sheet metal in traditional production lines67 vehicle charging infrastructure points to encourage 11. Glasgow has piloted energy efficiency, active leading the global implementation of digital twin 69 mobility apps, and intelligent street lighting 3. Ecofleet uses EVs & optimisation software to uptake of EVs 75 technology for urban infrastructure throughout the city reduce carbon emissions in last mile deliveries 12. London launched the UK’s first Ultra Low 4. Telensa has developed the world’s largest smart from warehouse to clients Emission Zone, which incentivises larger 12. Manchester led the Triangulum project to streetlighting control system. It provides 4. Elmo has developed the world’s first “total cost of players to invest in smaller firms operating in the successfully model a low energy urban district and a footprint of 2 million lights covering cities/ 0 explore digital and smart networks in achieving ownership” subscription service for EVs e-Mobility space. 76 regions worldwide transformation. It also offers a Carbon Literacy 5. Green Tomato Cars operates the largest zero- 13. London’s TfL is leading the way in promoting project, through which every individual in the city emission taxi passenger fleet in Europe electric vehicles with more than 400 electric buses Successful SMEs is entitled to a days’ worth of certified learning on now in operation across London, and more than 5. Bioregional Oxfordshire supported the master 6. Masabi, a mobile ticketing company, has worked the carbon impacts of everyday activities, and has 3,500 Zero Emission Capable Black Taxis now planning of the UK’s first eco-town77 with 5+ transport authorities globally launched a Grow Green Project which supports licensed and in operation around the city. TfL also 7. Octopus Energy develops EV charging for off- 6. BlockDox platform uses IoT and data analytics for investment in nature-based solutions for climate uses waste heat from the London Underground peak periods to improve cost and efficiency for smart buildings and intelligent transport and water resilience in cities81 network to provide supply local homes and other consumers 7. Pavegen is a global leader in harvesting energy amenities71 13. Newcastle partnered with ENGIE to use a District 8. OVO Energy is an experienced provider of vehicle- and data from footfall Energy solution for its innovation district82 14. Milton Keynes developed the UK’s first fully to-grid products 8. Telensa has been working in Brazil with local electric bus and launched the first fully dedicated 14. Belfast, Edinburgh and Leeds have agile Place- partners since 2015, and its market-leading smart 9. Riding Sunbeams pilots solar farms to power non-road based network for cycling and walking, Based Climate Action Networks83 street light and Central Management System has railway infrastructure in cities named redways72

Bogotá, Colombia 46 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 47

B. Data sources underpinning the national Ecosystem momentum and potential ‘systems of cities’ performance snapshots Presence and density of companies that have received >€1m in funding (Dealroom) Presence and density of start-ups in seed/Series A stage (Dealroom) Presence and density of recognised smaller innovation companies (Dealroom) Size, scale and growth trajectory of start-up ecosystem (StartupBlink) Growth in VC investment, 2010-12 to 2015-17 (Center for American Entrepreneurship) City Systems and Assets Urban Innovation Partners and Platforms Public transport backbone Number and density of leading urban tech firms (Google Analytics) Composite public transport systems strength (aggregate across 20 benchmarks) Participation and openness of tech and start-up community (Teleport Cities) Length of metro, light rail and BRT systems, no. of stations and ridership per capita (local sources) Inherited railway track capacity (Google Analytics) Pool of talent and specialised expertise Metropolitan-level car dependency (Deloitte City Mobility Index) No. and per capita size of workforce in Advanced Urban Services sector (LinkedIn Talent Insights) No. and per capita size of workforce in wider digital, policy and knowledge economies (LinkedIn Talent Insights) Digital backbone No. of registered publicly available Wi-Fi hotspots (WifiMap) Science and technology research capability Mobile internet quality, coverage and uptake (aggregate score across 3 benchmarks) Aggregate ranks of each metropolitan area’s top universities, across STEM subjects (QS) 75th percentile broadband download and upload speeds (MLab) % of science publications in top 1% most cited globally (Leiden University Ranking) Weighted variability of internet speeds within metropolitan area (MLab) % of science publications published in collaboration with industry (Leiden University Ranking) Presence of top global innovative universities (Reuters, Times Higher Education) Public transport inclusivity, affordability and satisfaction % of monthly income spent on public transport pass (Numbeo – self reported data) Strategic Capacity and Ambition Citizen satisfaction with public transport (aggregate of citizen perception surveys e.g. Eurobarometer, census, etc.) Average commute time (Moovit) Whole city governance integration % of commuters regularly commuting for >1 hour (Moovit) No. of local governments per 100,000 people (OECD) % of commuters regularly commuting for >2 hours (Moovit) Extent of metropolitan-level coordination (The Business of Cities research) Size of city government vs. metropolitan population (local sources) Mobility innovation record Composite track record of mobility innovation (aggregate across 10 benchmarks) Financial and fiscal capability Uptake of digitised mobility solutions (Nestpick Best Cities for Generation Z) Absolute and per capita capital budget of city government (local sources) Absolute and per capita budget of main transport authority (local sources) Citizen centric and future proof systems Credit rating of local authority/metropolitan area (Moody’s) Perceived deployment, uptake and usefulness of smart citizen services (IMD Smart City Index 2020) % of government spending conducted at local government level (OECD) Traffic of local government websites as percentage of the population (EasyPark Smart Cities Index 2019) Risk of system collapse due to economic and natural disaster (Lloyd’s City Risk Index) Strategies and implementation potential Average annual exposure to air pollution and number of days in line with WHO guidelines (Plume Labs) Scope and ambition of transport strategy (The Business of Cities research) Perceived night-time safety (Numbeo) Scope and ambition of data and innovation strategy (The Business of Cities research) Track record of public sector, data-driven innovation (OECD) Built form and place dynamics Maturity of open data platform (The Business of Cities research) Expansion of built-up area, 2000-2015 (OECD) Scope and ambition of climate change strategy (The Business of Cities research) Per capita expansion of built-up area, 2000-2015 (OECD) Level of transport authority integration (The Business of Cities research) Population density (Demographia World Urban Areas) A note on the ELO algorithm Ecosystem and Enterprise Dynamics Note: not all cities are included in all indicators. Final scores are calculated according to an aggregate of each city’s Innovation Ecosystem Maturity position across all measures, using an ELO algorithm. The Business of Cities’ ELO algorithm computes the overall Number and density of local tech-enabled firm HQs (Crunchbase) performance of each city relative to all other cities on aggregate across multiple benchmarks and datasets. The Elo Number of successfully scaled tech-enabled firms (Crunchbase) algorithm rates cities or regions by comparing their performance in every possible permutation against a list of Number of globally influential tech enabled firms (Crunchbase) other cities/regions. The system produces the most accurate comparative assessment of city/region performance, as Number and density of tech-enabled firms specialising in urban tech (Crunchbase) it accounts for the fact that some cities/regions appear in more benchmarks and datasets than do others, and that Total VC investment and VC investment relative to city size (Center for American Entrepreneurship) each dataset measures a different number of cities. 48 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 49

C. Webinar Summary and Statistics Audience and key statistics

• 264 people registered to attend • Organisations that attended Include: • 181 people dialled into the webinar o ACI MEDELLIN o Adapt Chile (Including speakers and event team; 22 in total) São Paulo, Brazil o Alcaldía distrital de Santa Marta o ANDI - Asociación Nacional de Empresarios de Colombia o 19 from Academia o Arup o 19 from Central Government o ASSENTIAN o 15 from Consultancies o Brasil-Portugal Chamber of Commerce of Rio Grande do Sul o British Embassy Santiago o 10 from Not for Profits o British Embassy, Mexico City o 6 from Large Organisations o Broadway Malyan o 10 from Other (supply/Catapults) o Brunel University London o 12 from Local Government o Buro Happold o 7 from SME/start ups o C40 Cities Climate Leadership Group o 1 From Think Tank o CAEM o Catapult Network o 2 from Trade association o Chipside Mipermit o 58 (joined directly via zoom link without registering o CNDU Chile before the event, therefore no specific data could be o Colombia GBC captured apart from name and e-mail address). o Connected Places Catapult o ConnectedCities o CORFO o Council of European Municipalities and Regions - Plaforma o CPK o Cranfield University o Creo Antofagasta Agenda • Attendee spilt by city and o Mexico City, Mexico o UK Department for Transport country: o Milan, Italy o ECLAC o Efdc o Milton Keynes, UK 10 mins - Introduction Representatives from 40 o EIT Climate-KIC cities from 11 countries o Newcastle, UK o Embassy of Chile to the United Kingdom • 5 mins: Guilherme Johnston – Head of Global Partnerships – Connected Places Catapult attended the event o Pewsey, UK o Energeo.co.uk o Energy Systems Catapult • 5 mins: Welcoming Remarks - Fiona Clouder - UK Government’s Regional Ambassador for Latin America and the o Porto Alegre, Brazil o Antofagasta, Chile o Puebla. Mexico o FCDO UK Caribbean, COP26 o Arica, Chile o Reading, UK o Footprint International o Awka, Nigeria o Fundación Chile o Santa Marta, Colombia o Gateshead Council o Bedford, UK o Santiago, Chile 10 mins - Addressing Net zero Challenges in Pacific Alliance Cities: Project Findings o Belo Horizonte, Brazil o Hexsor Scientific o São Paulo, Brazil o ICLEI South America • Dr Tim Moonen – Director - The Business of Cities, United Kingdom o Birmingham, UK o Sheffield, UK o Ilos Urbanismo & Arquitectura S.A.S o Bogotá, Colombia o STROUD, UK o Independent Consultants o Bologna, Italy o Villavicencio, Colombia o Innovate UK 60 mins – Urban Innovation Challenges in Latin American cities o Swindon, UK o Instituto Atlântico o Warszawa, Poland o KMBC Part 1: The Challenges in Latin American cities o Cardiff, UK o Washington, USA o Concepción, Chile o Litterlotto • Felipe Harman, Mayor of Villavicencio, Colombia o Wolverhampton, UK o London Electric Vehicle Company (LEVC) o Damascus, Syria o Loughborough University • Nicolás Sepulveda, Executive Director of Creo Antofagasta, Chile o Exeter, UK o Middlesex University • Mario Delannays, Regional Secretary of the Ministry of Environment, Biobío Region, Chile o Florence, Italy o Ministry Housing and Urbanization.Chile o Fortaleza, Brazil o MJC2 • Moyra Rojas, Regional Secretary to the Ministry of Environment, Tarapacá Region, Chile o Gateshead, UK o Municipality of Arica o Nelen • Edson Gomez, IT Adviser for the Bucaramanga Mayor Office, Colombia o Gloucester,UK o New Urban Mobility Alliance, World Resources Inst. o Leamington Spa, UK • Raul Pacheco, Secretary of Planning, Mayor’s Office of Santa Marta, Colombia o Newcastle University o Leeds, UK o NX3 Startup Factory o Lima, Peru o Patrick Wilson Architects Part 2: Welcoming new perspectives o Liverpool, UK o Polestar IIoT o London, UK o ProColombia • Matheus Ortega – C40 - City Adviser for Salvador, Brazil o Prodabel/Belo Horizonte, Brazil Municipality o Medellín, Colombia o SEREMI MINVU • Rodrigo Perpetuo - Executive Secretary of ICLEI South America o Sheffield Hallam University o Steer Davies Gleave o Sustentabilize.se 20 mins - Hearing from UK SMEs o Tekiu • Signol o The Business of Cities o Ufabc • Beringar o UFRGS • Connected Energy • Out of the 264 registered to attend the event: o UN-Habitat o 135 wanted to receive the project report after the event. o Unibo • Ehab o 5 did not want to receive the report. o Universidad Católica de la Santísima Concepción o 122 did not specify. o Universidad de Concepción o Universidad Iberoamericana Puebla 15 mins - Q&A • 10 participants responded to the Post Webinar Survey o Universidad Nacional de Colombia • 71 participants agreed to share their details to a 3rd o Universidad Peruana Unión 5 mins – Closing remarks party o University of Exeter • Gonzalo Muñoz - High level champion for United Nations Framework Convention on Climate Change (UNFCC) o University of Wolverhampton o Urbanalytica in Chile o Zaha Hadid Architects 50 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 51

10 Based on insights from desk research assessing the main abatement opportunities in 6 medium-sized Chilean and Colombian cities (Bucaramanga, Santa Marta, Villavicencio, Antofagasta, Concepcion and Iquique) and insights from References and endnotes interviews with regional stakeholders about the main challenges faced by Latin American cities. 1 1 Marion Davis, Shagun Mehrotra et al. (2021) ‘Seizing the Urban Opportunity: How national governments can recover from Covid-19, tackle the climate crisis and secure shared prosperity through cities. Insights from six emerging economies’. Coalition for Urban Transitions. Available at: https://urbantransitions.global/wp-content/uploads/2021/03/ Seizing_the_Urban_Opportunity_WEB.pdf 12 London ranks 3rd globally for the Quality of green finance tools and 4th for the Depth of green finance tools in the 1 Greenhouse gas emissions – where total emissions are equal to or less than emissions removed from the Global Green Finance Index, available at: https://www.assetfinanceinternational.com/index.php/equipment-finance/ environment. news-emea/emea-articles/19768-europe-takes-pole-position-in-race-for-green-finance-depth-quality-reveals-latest- 2 Centre For Climate and Energy Solutions (2020) ‘Global Emissions’. Centre For Climate and Energy Solutions. global-green-finance-index Available at: https://www.c2es.org/content/international-emissions/#:~:text=CO2%20accounts%20for%20about%20 13 The UK provides green bonds to China, India, the Middle East (and provided the first sovereign green bonds to Asia 76,are%20expressed%20in%20CO2%2Dequivalents;%20https://www.c40.org/why_cities#:~:text=A%20Global%20 Pacific and the Americas). Opportunity%20for%20Cities,70%25%20of%20global%20CO2%20emissions. 1 4 AFI (2020) ‘Green Finance in the UK and Spain: latest developments and key service providers’. AFI. Available at: 3 The Committee on Climate Change note that net zero can be achieved via a combination of emissions removal and https://ecodes.org/images/que-hacemos/04.Produccion_Consumo/pdf/Green_Finance_in_the_UK_and_Spain__latest_ reduction. Here we focus on opportunities for emissions reduction, specifically CO2 emissions reduction, which we developments_and_key_service_providers.pdf broadly term as ‘decarbonisation.’; Office for National Statistics (2019) ‘Net zero and the different official measures of the UK’s greenhouse gas emissions’. Office for National Statistics. Available at: https://www.ons.gov.uk/economy/ 1 5 AFI (2020) ‘Green Finance in the UK and Spain: latest developments and key service providers’. AFI. Available at: environmentalaccounts/articles/netzeroandthedifferentofficialmeasuresoftheuksgreenhousegasemissions/2019-07-24 https://ecodes.org/images/que-hacemos/04.Produccion_Consumo/pdf/Green_Finance_in_the_UK_and_Spain__latest_ developments_and_key_service_providers.pdf 4 United Nations, Department of Economic and Social Affairs, Population Division (2018). ‘File 22: Annual Population of Urban Agglomerations with 300,000 Inhabitants or More in 2018, by country, 1950-2035 (thousands)’. World 16 AFI (2020) ‘Green Finance in the UK and Spain: latest developments and key service providers’. AFI. Available at: Urbanization Prospects: The 2018 Revision, Online Edition. Available at: https://population.un.org/wup/Download/ https://ecodes.org/images/que-hacemos/04.Produccion_Consumo/pdf/Green_Finance_in_the_UK_and_Spain__latest_ developments_and_key_service_providers.pdf 5 S. Colenbrander, L. Lazer, C. Haddaoui, N. Godfrey, A. Lobo, H. Clarkson, R. Huxley, S. Parnell, B Smith, S Smith and T. Altenburg (2019) ‘Climate emergency, urban opportunity: how national governments can secure economic 17 BSI Group (2020). ‘BSI launches first sustainable finance guide setting standards for financial institutions to align prosperity and avert climate catastrophe by transforming cities’. Coalition for Urban Transitions. Available at: https:// to global sustainability challenges’. BSI. Available at: https://www.bsigroup.com/en-GB/about-bsi/media-centre/press- urbantransitions.global/en/publication/climate-emergency-urban-opportunity/ releases/2020/january/bsi-launches-first-sustainable-finance-guide-setting-standards-for-financial-institutions-to-align- to-global-sustainability-challenges/ 6 Marion Davis, Shagun Mehrotra et al. (2021) ‘Seizing the Urban Opportunity: How national governments can recover from Covid-19, tackle the climate crisis and secure shared prosperity through cities. Insights from six emerging 18 Anthesis (2020) ‘A Guide to mandatory climate-related financial disclosures’. Anthesis Group. Available at: https://www. economies’. Coalition for Urban Transitions. Available at: https://urbantransitions.global/wp-content/uploads/2021/03/ anthesisgroup.com/wp-content/uploads/2020/12/A-Guide-to-Mandatory-Climate-Related-Financial-Disclosures.pdf Seizing_the_Urban_Opportunity_WEB.pdf 19 Has invested $165million into Colombia. 7 In some cases, comparative data is also provided for Cali and Barranquilla, in order to contextualise these 20 Department for Business, Energy and Industrial Strategy (2019). ‘UK and Colombia mark new climate partnership three cities. with £8.5 million investment’. Press release. Available at: https://www.gov.uk/government/news/uk-and-colombia-mark- 8 Place-Based Climate Action Network (n.d.) ‘New net zero carbon roadmaps published for Belfast and Edinburgh’. new-climate-partnership-with-85-million-investment Available at: https://pcancities.org.uk/news/new-net zero-carbon-roadmaps-published-belfast-and-edinburgh ; GMCA 2 1 Prime Minister’s Office, 10 Downing Street (2017) ‘PM marks £1.7bn funding to help businesses export post-Brexit’. (2021) ‘North West leaders in politics, business and energy set out bold vision for net zero by 2040’. Available at: Press release. Available at: https://www.gov.uk/government/news/pm-marks-17bn-funding-to-help-businesses-export- https://www.greatermanchester-ca.gov.uk/news/north-west-leaders-in-politics-business-and-energy-set-out-bold- post-brexit#:~:text=The%20Prime%20Minister%20will%20today,double%2Ddeckers%20to%20Mexico%20City. vision-for-net zero-by-2040/ ; West Midlands Combined Authority (2020) ‘Taskforce launched to drive construction of 22 Adriana Becerra, Paul Bodnar et al. (2020) ‘State of Green Banks 2020’. Green Bank Design Platform. Available at: low carbon, energy efficient homes across the West Midlands’. Available at: https://www.wmca.org.uk/news/taskforce- https://www.greenfinanceinstitute.co.uk/wp-content/uploads/2020/11/state-green-banks-2020-report.pdf launched-to-drive-construction-of-low-carbon-energy-efficient-homes-across-the-west-midlands/ ; Emma Grimshaw 23 6 UK cities are in the top 100 globally for how many high-innovation, tech-enabled companies they host in sectors (2020) ‘UK100 Net Zero pledge: Bristol reveals ‘bold and brave’ plans to cut emissions’. BristolLive. Available at: https:// allied to net zero and green energy: London, Edinburgh, Bristol, Glasgow, Manchester and Birmingham. Meanwhile, www.bristolpost.co.uk/news/bristol-news/uk100-net zero-pledge-bristol-4783884 ; Jack Loughran (2019) ‘London’s Bristol, Edinburgh and Glasgow are in the global top 75 cities for the no. of renewable energy firm HQs, while air quality a ‘public health emergency’, says Mayor Sadiq Khan’. E&T. Available at: https://eandt.theiet.org/content/ Manchester is in the global top 35 for the presence of high-innovation energy efficiency and management HQs. articles/2019/01/london-s-air-quality-is-a-public-health-emergency-says-mayor-sadiq-khan-ahead-of-ulez-launch/ (Source: Crunchbase, June 2020 data). ; GMCA (2019) ‘Greater Manchester sets out concerted activity designed to decarbonise the city-region’ Available 24 at: https://www.greatermanchester-ca.gov.uk/news/greater-manchester-sets-out-concerted-activity-designed-to- Chris Stark, Mike Thompson, and Climate Change Committee (2019) ‘Net Zero - The UK’s contribution to stopping decarbonise-the-city-region/#:~:text=Andy%20said%20at%20the%20Green,can%20inspire%20change%20in%20others global warming, Committee on Climate Change’. The Climate Change Committee. Available at: https://www.theccc.org. ; Daniel Holland (2020) ‘Newcastle stands by pledge to go carbon netural by 2030 despite problems posed by Covid-19 uk/publication/net zero-the-uks-contribution-to-stopping-global-warming/ pandemic’. Chronicle Live. Available at: https://www.chroniclelive.co.uk/news/north-east-news/newcastle-stands- 25 YAYZY (n.d.) https://www.yayzy.com/ pledge-go-carbon-18697238 ; Glasgow City Council (2020) ‘City chiefs join forces to tackle climate change’. Available at: 26 Middle income countries refers to all countries currently classified as lower- or upper-middle income according to https://www.glasgow.gov.uk/article/25669/City-chiefs-join-forces-to-tackle-climate-change the World Bank’s classification of income per capita (includes Chile and Colombia). 9 Based initially on a scan of all tech-enabled firm in sectors relating to low carbon headquarted in the UK and 27 More than half of UK’s local authorities have set net zero targets more ambitious than the 2050 national deadline ; ranking in the global top 1,000 according to Crunchbase’s aggregate measure of firm activity, online and media edie (2020) ’Which UK cities are leading on climate action – and how?’. https://www.edie.net/news/6/Which-UK-cities- visibility, investment momentum, etc. Supplemented with suggestions from practitioners via interviews and additional are-leading-on-climate-action---and-how-/. The UK government also invests directly in projects for Latin America. publicly available lists of UK SMEs working in this space. For example, The Sustainable Infrastructure Programme provides £177.5m of UK technical assistance and capital investment to mobilise private sector investments, especially where there is high perceived financial risk. Work includes partnership with TransMilenio to structure the commissioning of a fleet of 10 electric buses in Bogota. 52 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 53

28 Mott Macdonald (n.d.) ‘Latin America and Caribbean’. Mott Macdonald. Available at: https://www.mottmac.com/ 48 UK government (n.d.). UK International Climate Finance Booklet. Available at: https://assets.publishing.service.gov. latin-america-and-caribbean uk/government/uploads/system/uploads/attachment_data/file/832315/UK-International-Climate-Finance-Booklet.pdf 29 Other examples include Centrica, who has energy management projects in Mexico partnered with S2 Energy. BP 49 The Department for Business Innovation & Skills and ARUP (2013) ‘The Smart City Market Opportunities for the also has ongoing solar projects in Brazil. UK’. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/ 30 UK-PACT is delivered by Palladium International, ICF Consulting Services and PA Consulting Services file/249423/bis-13-1217-smart-city-market-opportunties-uk.pdf. Page 19. 31 Transport is the biggest contributor of CO2 in the UK ; Sion Barry (2019) ‘The UK-wide green transport projects from 50 The Global City (2021) ‘Finance for a sustainable future’. The Global City. Available at: https://www.theglobalcity. electric planes to hydrogen vehicles’. Business Live. Available at: https://www.business-live.co.uk/technology/uk-wide- uk/industries/sustainable-finance; Michael Holder (2020) ‘Barclays closes £400m green bond in support of energy green-transport-projects-16816963 efficient home mortgages’. Business Green. Available at: https://www.businessgreen.com/news/4022420/barclays- closes-gbp400m-green-bond-support-energy-efficient-home-mortgages#:~:text=Over%20the%20past%20three%20 32 Having rejected traditional PFI and PF2 models. years,for%20the%20past%20two%20years. 33 University of Exeter. The University of Birmingham is spearheading research into rail infrastructure- e.g. .first 5 1 REPP (n.d.) ‘https://repp.energy/about-repp/camco-clean-energy/; Department for Business, Energy & Industrial hydrogen powered train under the HydroFlex programme. The Durham University project Network-H2 is to share Strategy (2018) ‘Renewable Energy Performance Platform: Mid-Term Evaluation’. Department for Business, knowledge to support the development of a hydrogen-fuelled transport network. Energy & Industrial Strategy. Available at: https://aidstream.org/files/documents/REPP-Mid-Term-Evaluation- 34 Cardiff/Bristol universities are working with Aston Martin to identify challenges to an integrated, cross-sector Report-2018-20181019111053.pdf electrified transport system, focusing on energy networks, electric vehicle charging infrastructure, electric and hybrid 52 Unilever (2020) ‘Unilever sets out new actions to fight climate change, and protect and regenerate nature, to aircraft and the electrification of the rail network. preserve resources for future generations’. Unilever. Available at: https://www.unilever.com/news/press-releases/2020/ 35 Other successful examples in the UK include the Transport for Greater Manchester and the Transport for West unilever-sets-out-new-actions-to-fight-climate-change-and-protect-and-regenerate-nature-to-preserve-resources-for- Midlands. Nicole Badstuber (2015) ‘Six things other cities can learn from Transport for London’s success’/ The future-generations.html Conversation. Available at: https://theconversation.com/six-things-other-cities-can-learn-from-transport-for-londons- 54 Barclays (2021) ‘Update on Barclays’ ambition to be a net zero bank by 2050’. Available at: https://home.barclays/ success-42901 society/our-position-on-climate-change/highlights/ 36 Maeve Campbell (2020) ‘UK announces ‘ambitious’ plan to become hub for green transport’. Euronews. Available at: 54 The Global City (2021) ‘Finance for a sustainable future’. The Global City. Available at: https://www.theglobalcity.uk/ https://www.euronews.com/living/2020/03/30/uk-announces-ambitious-plan-to-become-hub-for-green-transport industries/sustainable-finance 37 Victoria Turk (2020) ‘How Citymapper deals with the chaos of the world’s cities’. Wired. Available at: https://www. 55 Angela Whitney, Tamara Grbusic, Julia Meisel and Paul Bodnar (2020). ‘State of Green Banks’. Rocky Mountain wired.co.uk/article/how-citymapper-works#:~:text=Since%20launching%20in%20London%20in,maps%20and%20 Institute. Available at: https://rmi.org/insight/state-of-green-banks/ translating%20the%20app. 56 Energy & Environment (n.d.) ‘The Climate Finance Accelerator (CFA) programme’. Available at: https://ee.ricardo. 38 For example, Beryl has shared its bike share system app with key bike share schemes across the world, including com/climate-finance-accelerator New York and Montreal. 57 The first round of funding focused on projects for Greening Financial Systems and Electrifying Urban Mobility. The 39 UK government (2019) Colombia Prosperity Fund Programme 2019/20 Annual Review. Available at: https:// second round focuses on Nature-Based Solutions and Clean Energy Transition. webcache.googleusercontent.com/search?q=cache:f9W3lHG1B4EJ:https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/attachment_data/file/873858/Annual_Review_for_the_Colombia_Prosperity_ 58 Chris Stark, Mike Thompson, and Climate Change Committee (2019) ‘Net Zero - The UK’s contribution to stopping Fund_Programme_2019-2020.odt+&cd=1&hl=en&ct=clnk&gl=uk global warming, Committee on Climate Change’. The Climate Change Committee. Available at: https://www.theccc.org. uk/publication/net zero-the-uks-contribution-to-stopping-global-warming/ 40 The UK’s market share in Advanced Urban Services is estimated to be up to 10%; Scott Cain (2017) ‘The advanced urban services sector: a $1tn opportunity’. Linkedin. Available at: https://www.linkedin.com/pulse/advanced-urban- 59 Mott Macdonald (n.d.) ‘Renewable energy’. Mott Macdonald. Available at: https://www.mottmac.com/energy/ services-sector-1tn-opportunity-scott-cain/ renewable-energy 41 Nicola Walt, Lean Doody, Karl Baker and Scott Cain (2014) ‘Future Cities: UK Capabilities for Urban Innovation’. 60 Bboxx (n.d.) ‘About’. Available at: https://www.bboxx.com/about/#/mission ARUP and Future Cities Catapult. Available at: https://www.arup.com/perspectives/publications/research/section/ 61 This is following success from previous engagements with Brazilian blue chip companies to utilise Li-S cells for the future-cities-uk-capabilities-for-urban-innovation electrification of buses, trucks and aircrafts. OXIS Energy (2020) ‘OXIS Energy and CODEMGE sign lease agreement 42 Will Sowter (2020) ‘Digital twin technology – a future UK export success’. Infrastructure Intelligence. Available at: with Mercedes Benz Brazil to build world’s first Li-S manufacturing plant’. Available at: https://oxisenergy.com/wp- http://www.infrastructure-intelligence.com/article/oct-2020/digital-twin-technology-%E2%80%93-future-uk-export- content-uploads-2020-05-oxis-mbb-final-pressor-pdf-pdf/ success 62 Adeline Bailly (2018) ‘Cities have led the way in reducing UK carbon emissions, but should do more to tackle 43 Greg Guthrie (2019) ‘What net zero emissions means for civil engineers’. Available at: https://www.ice.org.uk/news- transport pollution’. Centre for Cities. Available at: https://www.centreforcities.org/blog/cities-led-way-reducing-uk- and-insight/the-civil-engineer/august-2019/what-net zero-emissions-civil-engineers ; Mark Hansford (2020) ‘Engineers carbon-emissions-tackle-transport-pollution/ can deliver on net zero but only if they bring communities with them’. Available at: https://www.ice.org.uk/news-and- 63 Manchester Climate Change Partnership and Agency (2020) ‘Manchester Climate Change Framework 2020-2025’ insight/the-civil-engineer/october-2020/engineers-can-deliver-on-net zero-with-community Manchester Climate Change Partnership Climate Change Agency. Available at: https://www.manchesterclimate.com/ 44 Office for National Statistics (2020) ‘Statistical Bulletin: International trade in services, UK: 2018’. Available at: https:// sites/default/files/Manchester%20Climate%20Change%20Framework%202020-25.pdf www.ons.gov.uk/businessindustryandtrade/internationaltrade/bulletins/internationaltradeinservices/2018 64 Mott Macdonald (2020) ‘The Philippines joins the UK Government’s 2050 Calculator programme being delivered 45 Lanna Deamer (n.d.) ‘The 30 UK tech scaleups tackling climate change to watch’. Startups Magazine. Available at: by Mott Macdonald and partners’. Mott Macdonald. Available at: https://www.mottmac.com/releases/the-philippines- https://startupsmagazine.co.uk/article-30-uk-tech-scaleups-tackling-climate-change-watch joins-the-uk-governments-2050-calculator-programme-being-delivered-by-mott-macdonald-and-partners 46 Priority sectors include low-carbon heating in buildings and infrastructure, and city-scale transitions ; Net zero 65 Chris Stark, Mike Thompson, and Climate Change Committee (2019) ‘Net Zero - The UK’s contribution to stopping Infrastructure Industry Coalition (2021) ‘ A place-based approach to net zero’. Mott Macdonald. Available at: https:// global warming, Committee on Climate Change’. The Climate Change Committee. Available at: https://www.theccc.org. www.mottmac.com/download/file?id=39870&isPreview=True uk/publication/net zero-the-uks-contribution-to-stopping-global-warming/ 47 Bioregional (n.d.) ‘One Planet Cities’. Available at: https://www.bioregional.com/projects-and-services/influencing- 66 Parliament UK (2018) ‘Electric vehicles: driving the transition: Government Response to the Committee’s Fourteenth wider-change/one-planet-cities Report of Session 2017-19’. Parliament UK. Available at: https://publications.parliament.uk/pa/cm201719/cmselect/ cmbeis/1881/188102.htm 54 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 55

67 Arrival (n.d.) ‘Radical impact’. Available at: https://arrival.com/?topic=the-new-method Valparaiso, Chile, UNESCO World Heritage 68 Press Team (2017) ‘Ground breaks for £30m clean transport lab on University’s Tech Park’. Coventry University. Available at: https://www.coventry.ac.uk/primary-news/ground-breaks-for-30m-clean-transport-lab-on-universitys- tech-park/ 69 Hannah Figg (2019) ‘Leicester awarded £100k to pilot public on-street chargers for electric cars’. Eltis. Available at: https://www.eltis.org/in-brief/news/leicester-awarded-ps100k-pilot-public-street-chargers-electric-cars 70 Greater London Authority (n.d.) ‘The Mayor’s Ultra Low Emission Zone for London’. Available at: https:// www.london.gov.uk/what-we-do/environment/pollution-and-air-quality/mayors-ultra-low-emission-zone- london#:~:text=The%20Mayor%20launched%20the%20central,will%20be%2018%20times%20larger. 7 1 Nicolas Nhede (2020) ‘London Mayor and TfL target a zero-carbon railway by 2030’/ Smart Energy International. Available at: https://www.smart-energy.com/renewable-energy/london-mayor-and-tfl-target-a-zero-carbon-railway- by-2030/ 72 Computer World (2019). ‘Best Smart cities in the UK’. Available at: https://www.computerworld.com/article/3412328/ best-smart-cities-in-the-uk.html#slide1 73 Zeina Hazem (2019) ‘BIM adoption in the UK – history and impact’. PlanRadar. Available at: https://www.planradar. com/gb/bim-in-uk-construction-technology-market/ 74 CRL (2018) ‘Five of the UK’s most impressive eco-buildings’. Pbctoday. Available at: https://www.pbctoday.co.uk/ news/planning-construction-news/uk-eco-buildings/40160/ 75 University of Cambridge Centre for Digital Built Britain (n.d.) ‘National Digital Twin Programme’ Available at: https:// www.cdbb.cam.ac.uk/what-we-do/national-digital-twin-programme 76 Telensa (n.d.) ‘Telensa deploys massive smart streetlighting project in Uberlândia, Brazil’ Available at: https://www. telensa.com/news/telensa-deploys-massive-smart-streetlighting-project-in-uberlandia-brazil/ 77 Bioregional (n.d.) ‘NW Bicester - how One Planet Living helped shape the UK’s first eco-town.’ Available at: https:// www.bioregional.com/projects-and-services/case-studies/nw-bicester-how-one-planet-living-helped-shape-the-the- uks-first-eco-town 78 Telensa (n.d.) ‘Telensa deploys massive smart streetlighting project in Uberlândia, Brazil’ Available at: https://www. telensa.com/news/telensa-deploys-massive-smart-streetlighting-project-in-uberlandia-brazil/ 791 UK GBC (2020) ‘Accelerator Cities’. Available at: https://www.ukgbc.org/ukgbc-work/accelerator-cities/ 80 Steve Bundred (2016) Review of Bristol 2015 European Green Capital Year. Report to Bristol City Council. Available at: https://www.bristol.gov.uk/bristol-green-capital#:~:text=In%202015%20Bristol%20became%20the,happier%20 place%20to%20live%20in 81 The Carbon Literacy project is now included in the Transformative Actions Program led by ICLEI ; Carbon Literacy Project (n.d.) https://carbonliteracy.com/ ; Manchester Climate Change Agency (n.d.) https://www.manchesterclimate. com/content/grow-green 82 Engenie (n.d.) ‘Newcastle Helix District Energy Scheme’. Available at: https://www.engie.co.uk/about-us/references/ newcastle-helix-district-energy-scheme/ 83 Place-Based Climate Action Network (n.d.) ‘Driving Climate Action in UK cities and communities’. Available at: https://pcancities.org.uk/ Visit our website 56 cp.catapult.org.uk

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