Sustainable Low-Carbon Cities in China: Why It Matters and What Can Be Done Xxxix Axel Baeumler, Ede Ijjasz-Vasquez, and Shomik Mehndiratta

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Countries andRegions Countries DIRECTIONS INDEVELOPMENT Sustainable Low-Carbon City Development inChina Development Axel Baeumler, Ede Ijjasz-Vasquez, EdeIjjasz-Vasquez, Baeumler, Axel Shomik Mehndiratta, Editors Sustainable Low-Carbon City Development in China Sustainable Low-Carbon City Development in China Edited by Axel Baeumler, Ede Ijjasz-Vasquez, and Shomik Mehndiratta © 2012 International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved 1 2 3 4 15 14 13 12 This volume is a product of the staff of The World Bank with external contributions. 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Carbon dioxide mitigation--China. 4. Urbanization--Environmental aspects--China. 5. City planning-- Environmental aspects--China. 6. Urban ecology (Sociology)--China. I. Baeumler, Axel. II. Ijjasz-Vasquez, Ede. III. Mehndiratta, Shomik. HT243.C6S87 2012 307.1’2160951--dc23 2011052340 Contents Foreword, World Bank xix Foreword, National Development and Reform Commission xxi Preface xxv Acknowledgments xxvii About the Authors xxix Abbreviations xxxii Overview: Sustainable Low-Carbon Cities in China: Why it Matters and What Can be Done xxxix Axel Baeumler, Ede Ijjasz-Vasquez, and Shomik Mehndiratta PART 1 INTRODUCTION TO LOWCARBON CITIES 1 Chapter 1 Cities and Climate Change: An Urgent Agenda 3 Dan Hoornweg Chapter 2 Eco-Cities and Low-Carbon Cities: The China Context and Global Perspectives 33 Axel Baeumler, Mansha Chen, Kanako Iuchi, and Hiroaki Suzuki v vi Contents Chapter 3 Low-Carbon Cities in China: Characteristics, Roadmap, and Indicators 63 Xiaodong Wang, Noureddine Berrah, Ximing Peng, Lorraine Sugar, and Hua Du Chapter 4 Developing Low-Carbon Cities in China: Local Governance, Municipal Finance, and Land-Use Planning—The Key Underlying Drivers 97 Zhi Liu and Andrew Salzberg PART 2 SECTORAL ACTION FOR LOWCARBON CITIES: ENERGY 129 Chapter 5 Low-Carbon Electricity for Cities 131 Ximing Peng Chapter 6 Industrial Energy Efficiency 147 Gailius Draugelis Chapter 7 Energy Efficiency in Buildings 179 Gailius Draugelis and Shawna Fei Li Chapter 8 District Heating Reform 205 Gailius Draugelis and Shawna Fei Li PART 3 SECTORAL ACTION FOR LOWCARBON CITIES: URBAN TRANSPORT 235 Chapter 9 Introduction: Urban Transport and Climate Change 237 Shomik Mehndiratta Chapter 10 Cycling and Walking: Preserving a Heritage, Regaining Lost Ground 243 Shomik Mehndiratta Contents vii Chapter 11 Improving Public Transport in Chinese Cities: Elements of an Action Plan 269 Shomik Mehndiratta and Andrew Salzberg Chapter 12 Motorized Vehicles: Demand Management and Technology 299 Shomik Mehndiratta, Zhi Liu, and Ke Fang PART 4 SECTORAL ACTION FOR LOWCARBON CITIES: WATER, WASTE MANAGEMENT, AND URBAN AIR POLLUTION 323 Chapter 13 Municipal Solid Waste Management and Low-Carbon Cities in China 325 Dan Hoornweg and Jian Xie Chapter 14 Greenhouse Gas Emissions from Water and Wastewater Utilities 347 Alexander Danilenko, Takao Ikegami, Paul Kriss, Axel Baeumler, and Menahem Libhaber Chapter 15 Air Pollution Control and Carbon Reduction Co-benefits 367 Jostein Nygard, Jie Cao, Stefan Csordas, Steinar Larssen, Li Liu, Jon Strand, and Dingsheng Zhang PART 5 SECTORAL ACTION FOR LOWCARBON CITIES: ADDITIONAL APPROACHES 385 Chapter 16 Additional Approaches: Historic Built Assets, ICT, and Urban Agriculture and Forestry 387 Axel Baeumler, Ede Ijjasz-Vasquez, and Shomik Mehndiratta viii Contents Chapter 17 Energy Efficiency in Historic Built Assets 389 Guido Licciardi Chapter 18 Benefits of Downtown Regeneration 401 Guido Licciardi Chapter 19 ICT and Low-Carbon Cities 405 Junko Narimatsu and Randeep Sudan Chapter 20 Urban Agriculture Is Climate-Smart 417 Anjali Acharya, Dan Hoornweg, and Marielle Dubbeling Chapter 21 Urban Forestry 423 Leticia Guimarães and Monali Ranade PART 6 BEYOND MITIGATION: CITIES’ ADAPTATION TO CLIMATE CHANGE 433 Chapter 22 Adapting to Climate Risks: Building Resilient Cities in China 435 Paul Procee and Henrike Brecht PART 7 FINANCING A LOWCARBON CITY 465 Chapter 23 Financing a Low-Carbon City: Introduction 467 Axel Baeumler and Shomik Mehndiratta Chapter 24 Cities and Carbon Finance 471 Monali Ranade and Marcus Lee Chapter 25 World Bank Financial Instruments to Support Low-Carbon Cities in China 491 Frederic Asseline Contents ix BOXES 1 Measuring Low-Carbon Cities xlii 2 Indicators Can Set the Right Administrative Incentives for Local Governments xlvii 3 Three Market Principles for Low-Carbon Cities xlviii 4 Financing Structures for Cities Need to Be Fundamentally Rethought li 5 Adaptation—Elements of an Integrated Climate Risk Management Approach liii 6 Key Energy Sector Recommendations lv 7 Key Urban Transport Sector Recommendations lviii 8 Key Water, Wastewater, and Solid Waste Recommendations lx 9 A Growing Role for Technology lxii 10 When to Adopt Which Abatement Technology at What Cost lxv 1.1 Neptis Foundation Images Illustrating Metropolitan Indicators for Four World Cities 11 1.2 Chreod Ltd. Images of Population Densities of Selected Metropolitan Regions, 2000 14 1.3 Greenhouse Gas Emissions and Urban Lifestyle: Three Personal Examples 15 2.1 NDRC Pilot on Low-Carbon Province and City Development 40 2.2 MoHURD Initiatives on Low-Carbon Eco-City Development 41 2.3 Emerging Low-Carbon City Initiatives in China 42 2.4 Abandoned Eco-City Developments in China 44 2.5 Key Lessons from a Stocktaking Analysis of Eco-City Initiatives and Regulations in China 46 2.6 Urban Design Challenges for the SSTEC Project 48 2.7 World Bank Support for Integrated Low-Carbon City Initiatives 50 2.8 Eco2 Cities: Ecological Cities as Economic Cities 52 2.9 STAR Community Index 57 2.10 The European Eco-Management and Audit Scheme (EMAS) 59 3.1 Selected Definitions of a Low-Carbon City 66 3.2 London’s Low-Carbon Action Plan: From Vision to Action 70 x Contents 3.3 Changning District, Shanghai: Initial Results of a GHG Abatement Cost Curve at City District Level 79 3.4 European Green City Index and LEED for Neighborhood Development 81 3.5 New York: An Example of GHG Inventory and Reporting 87 3.6 The CoolClimate Network: A University- Government-Industry Partnership Developing Carbon Footprint Management Tools 88 4.1 Incentives for the Performance of Municipal Leaders 102 4.2 Land Purchase and Disposal Cost Differentials 105 4.3 In-Situ Urbanization 107 4.4 Empirical Evidence Regarding Urban Forms and CO2 Emissions 111 4.5 Urban Design Regulations in Chinese Cities: Taking a New Look 113 4.6 Low-Carbon Neighborhood Design in China 122 5.1 Technologies of the Future 135 6.1 Targeting Large Energy–Consuming Enterprises to Meet FYP Energy Intensity Reduction Obligations 150 6.2 Beijing’s Fixed Assets Investment Appraisal and Examination Method 152 6.3 Shanxi’s Special Compensation Fund for Eliminating Inefficient Capacity 153 6.4 Energy Performance Contracting to Promote Energy Efficiency 156 6.5 Rewarding Outstanding Energy Conservation Achievements 158 6.6 Energy Efficiency Leasing Concept 163 6.7 EMSs and Energy Agreements Program in Ireland 166 6.8 Vermont’s Energy Efficiency Utility 170 6.9 Global Environment Facility Funding for China’s ESCO Loan Guarantee Program 171 6.10 The International Finance Corporation’s China Utility-Based Energy Efficiency Finance Program (CHUEE) 172 6.11 World Bank Support for Industrial Energy Efficiency in China 174 7.1 Climate Zoning for Building Thermal Designs in China 182 7.2 GEF’s Huayuan Borui New Community: Combining Green Building and Heating Supply Reform 187 Contents xi 7.3 World Bank/GEF–Supported Heat Reform and Building Energy Efficiency Project 188 7.4 Considering

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