Historic context and future projections

When agriculture began to develop around 10 000 years ago, the first food surpluses that were produced enabled towns to develop, the food being brought in to markets by local producers. Today, about half the world's population still till the soil, three quarters using manual labour. The other half live in urban areas, consuming two-thirds of total primary energy, of which around 60% is consumed in buildings. Cities and towns also produce over 70% of global energy-related CO2 emissions. This share continues to increase as people living in developing countries shift from the use of traditional biomass (much of which is carbon neutral) to fossil fuel combustion (IEA, 2008a) as governments endeavour to provide energy access for the two billion people still without basic energy services.

Worldwide, the urban population is increasing by around one million people per week. This includes people driven in from the rural areas by an increasing frequency of droughts and floods and other probable consequences of climate change. The challenge to provide basic energy services for the larger number of city-dwellers in future, in order to provide an acceptable quality of life for everyone whilst also reducing greenhouse gas emissions, is daunting (not to mention providing clean water, food, sanitation and mobility). Increasing the contribution from local renewable energy sources, together with using energy more wisely and efficiently than we do now, will become a major part of the solution.

Regardless of the endeavours already made by administrators of leading cities to improve energy efficiency, in most cases, energy demands by their citizens continue to grow. This leads to future concerns for energy insecurity and increased greenhouse gas emissions. By 2030 it is thought that cities and towns will house around 60% of the world's projected 8.2 billion people as the trend to increased urbanisation continues (UNPD, 2007). Residents who live, travel and work within a city will then consume around three-quarters of the world's annual energy demand. By 2030 over 80% of the projected increase in demand above 2006 levels will come from cities in non-OECD countries. If most of this demand continues to be met by fossil fuels, then cities and towns continuing under a business-as-usual future will result in large increases in CO2 emissions, particularly those located in non-OECD countries (Fig. 1).

Figure 1 • Carbon dioxide emissions from energy use in cities grows by 1.8% per year (versus 1.6% globally) under business-as-usual scenarios between 2006 and 2030, with the share of global CO2 from cities rising from 71% to 76%

Gigatonnes

Figure 1 • Carbon dioxide emissions from energy use in cities grows by 1.8% per year (versus 1.6% globally) under business-as-usual scenarios between 2006 and 2030, with the share of global CO2 from cities rising from 71% to 76%

Gigatonnes

2006 2020 2030

H Non-OECD cities

H OECD cities

— Share of cities in world (right axis)

2006 2020 2030

Source: IEA, 2008a

Revenue needed for the public administration of cities partly flows from central governments returning some of the taxation paid by cities and businesses and partly from direct payments made by residents, often as a rate levied on the capital value of their property. Some cities also operate businesses related to their operations to provide some extra revenue and many have interest-bearing investments. City councils allocate this revenue as annual budgets in order to provide services for their inhabitants such as water supplies, waste collection and treatment, education and recreational facilities. The funding is also used to build and maintain local infrastructure. Hence expenditure on capital investments relating to renewable energy projects is usually contestable, as is funding sought for financial incentives to support renewable energy technology deployment within the city boundaries. Where appropriate, securing local funding can be linked with any regional and national support measures also in place.

To achieve their overall sustainability objectives, communities must involve energy efficiency measures which are a key element of future energy security and climate change mitigation. However since these are well documented in many other publications, including several from the IEA (see for example, IEA, 2008h), they are not discussed in detail in this report. Suffice to say that because obtaining data and information relating to producing such policies is a challenge for many cities, producing an international database of cities and their energy policies is difficult. The IEA Energy Efficiency Division is considering undertaking a detailed survey of cities to glean such information.

International initiatives already exist that focus mainly on energy efficiency to assist towns and cities with their greenhouse gas (GHG) emissions reduction and sustainability goals. Those well established include the ICLEI3 "Cities for Climate Change protection campaign"; the European Commission's Covenant of Mayors4; Architecture 20305; the Clinton Foundation's C-40 Climate Change Initiative6; The European Green Capital competition7 (with Stockholm being the winner for 2009 and Hamburg for 2010); the Low Carbon Communities of the Americas8 that includes encouraging light coloured roofs and pavements to reflect back sunlight; and the Carbon Neutral Network9 established by the United Nations Environment Programme (UNEP) to encourage countries, cities and businesses to reduce their GHG emissions and set varying targets with the long term aim to become carbon neutral. For example Vancouver, Canada, is aiming to become carbon neutral by 2012; Sydney, Australia, for a 70% reduction by 2050; and Slough, England, for 20% reduction by 2028. Other examples of cities that have also signed up to the UNEP network and set carbon reduction goals include Copenhagen, Denmark; Brisbane, Australia; Rizhao, China; and Waitakere, New Zealand, thereby demonstrating the geographic spread.

International initiatives focusing on renewable energy are less common. They include the CONCERTO10 initiative that was launched by the European Commission to support local communities develop projects based on demonstrating the environmental, economic and social benefits of integrating energy efficiency techniques together with renewable energy sources through a sustainable energy-management system operated on a community level. Also the ICLEI "Local Renewables Initiative" actively supports the deployment of renewable energy use in cities for the following reasons.

I renewable energy sources are mature, available and ready for use today.

I rsing local resources to produce energy locally establishes a solid foundation for decentralised, secure energy supply - thereby making communities more resilient.

I financial benefits are inherent for many renewable energy programmes - both in terms of saving money and generating an income over the short to long term.

I r steady transition from fossil fuels to local renewables will normally reduce CO2 emissions and contribute to climate protection.

I rwitching to local renewables supports local job creation and stimulates the economy.

I local renewables give an impulse to sustainable urban development, and encourage technical and social innovation.

I local action for renewable energy deployment is critical in order to achieve national and international targets on sustainable energy and climate protection.

I rhe uptake of renewables implies the involvement of local stakeholders using synergies to create change.

Within the UNFCCC climate change negotiation process between governments, there is little mention of cities or the mitigation role they could possibly play. Some of the organisations listed above are attempting to redress this situation by encouraging their city members to integrate greenhouse gas

3. Originally founded in 1990 as the International Council for Local Environmental Initiatives, ICLEI — Local Governments for Sustainability is an international association of over 1000 local governments from 68 countries, as well as national and regional local government organisations that have made a commitment to sustainable development — see www.iclei.org.

4. www.eumayors.eu

5. www.Architecture2030.org

6. www.C40cities.org

7. http://ec.europa.eu/environment/europeangreencapital/green_cities.html œ

8. http://www.nrel.gov/applying_technologies/climate_initiatives.html 8

9. http://www.unep.org/climateneutral/ a

10. http://concertoplus.eu/CMS/component/option,com_frontpage/Itemid,239/

emission reductions into their policies. ICLEI is producing a Local Government Climate Roadmap for presentation during the UNFCCC 15th Conference of Parties in Copenhagen at the end of 200911. The aim is for post-Kyoto negotiators to better recognise the potential role for cities by mobilising national governments to support the various local initiatives that are occurring worldwide.

In essence, a city can influence the use of renewable energy by its citizens, by local businesses, or for its own consumption when managing the city by:

i e ncouraging the purchase of "green" electricity or biofuels for transport that are produced outside the city and then imported for use within the boundary;

i i nvesting in local renewable energy projects that relate to its current core business activities, such as waste management, for example by production and use, or sale of, landfill gas and sewage biogas;

i eupporting and investing in new, privately owned, renewable energy projects (such as wind farms, small hydro schemes, geothermal projects, biomass district heating schemes, or combined heat and power (CHP) systems) located either inside or outside the city boundaries, with the heat or electricity then sold to city-based consumers;

i i ncentivising the uptake of small-scale, building-integrated, renewable energy systems such as solar hot water heating, ground-source heat pumps or solar photovoltaic power generation systems; and i e ncouraging the development of a renewable energy manufacturing industry within the city by the attraction of new businesses.

In addition, when designing and planning new suburbs or entire cities on green field sites, incorporating renewable energy systems into the overall design should be given due consideration.

This report endeavours to incorporate each of these aspects into a framework that will enable all stakeholders involved in providing energy services for use in cities to better understand how best to utilise renewable energy for the benefit of the citizens, both now and in the future. It should also be a valuable information source for the actual and potential users of renewable energy services, whether businesses or residents so that they might better comprehend the benefits and constraints of developing renewable energy projects whether small or large-scale. The overall aim is to identify policies that have resulted in the successful deployment of renewable energy technologies. These are presented in a format that will help potential users learn from the experiences of others in order to stimulate the replication of similar projects worldwide. This in turn should lead to lower costs as the technologies involved track downwards along their specific experience/learning curves.

After this introductory section the report aims to:

i inform readers by outlining the current status of the energy supply sector (Section 3); and describing the concepts behind sustainable cities of the future including distributed energy systems and intelligent grids (Section 4);

i integrate more local renewable energy resources into the energy supply system necessary to maintain the life and growth of a community by assessing the potential for increased deployment of existing and emerging renewable energy technologies including their markets and costs (Section 5) in order to provide desirable energy services derived from heating, cooling, lighting, electronic entertainment, driving electric motors, and mobility (Section 6);

11. See http://www.roteirolocalclimaticas.org/EN/downloads/COP-Decision_small.pdf where the draft Roadmap includes the statement: Drawing on lessons from the success of the implementation of the Rio Agenda's Local Agenda 21 and the successful g measures that are being implemented by cities around the world on sustainable energy economy through energy savings and the application of new and existing renewable and high efficiency technologies, to reduce dependence on fossil and nuclear g fuels and aim for lowest carbon options. g

I inspire municipal councillors, officers and citizens, whatever the size of their community, to increase the deployment of renewable energy alongside their sustainability and energy efficiency goals by offering visionary scenarios (Section 2) and by illustrating what other selected towns and cities have already achieved in an endeavour to improve the quality of life of those who live and work there whilst also reducing their carbon footprints (Section 8); and to

I incentivise mayors, decision-makers, politicians and officials to provide leadership by understanding the full range of policy options available (Section 7) and then selecting and developing the most effective policies for encouraging renewable energy uptake in their own communities at minimal cost, in association with energy efficiency measures, and gaining from the numerous co-benefits available such as water conservation, municipal waste reduction and treatment, reduced local air pollution, improved health, employment creation, social cohesion, and lower greenhouse gas emissions (Section 9).

It is anticipated that the information and analysis presented will be useful to members of both large and small communities worldwide that are contemplating undertaking a range of initiatives and developing policies to encourage the local deployment of renewable energy projects (Fig. 2).

Figure 2 • The various sections of the report have been structured to provide information and inspiration to members of the target audience who may wish to encourage the greater deployment of renewable energy technologies for the provision of energy services within their local community

Preparation and planning

INSPIRATION

Section 2. A vision of future cities Section 8. Case studies of lead cities

INFORMATION

Section 3. Current status of the energy sector Section 4. The concept of sustainable energy supply

INTEGRATION

Section 5. Renewable energy resources and technologies Section 6. Transport -electric cars and biofuels

INSPIRATION

Section 2. A vision of future cities Section 8. Case studies of lead cities

INFORMATION

Section 3. Current status of the energy sector Section 4. The concept of sustainable energy supply

INTEGRATION

Section 5. Renewable energy resources and technologies Section 6. Transport -electric cars and biofuels

Produce an action plan to encourage deployment of renewables

Liaise with local businesses and seek partnerships

Instigate energy savings initiatives

Set achievable targets and develop policies

Actions and outcomes

Instigate energy savings initiatives

Set achievable targets and develop policies

Produce an action plan to encourage deployment of renewables

Liaise with local businesses and seek partnerships

Provide knowledge and discussion to enable citizen interaction

Provide knowledge and discussion to enable citizen interaction

Encourage the greater deployment of renewable energy projects as another step towards greenhouse gas mitigation, energy supply security and sustainable growth and development

The target audience is very broad as are the definitions for "city" and "town". When compiling the report it was anticipated that potential readers will have a diverse range of backgrounds and widely differing levels of knowledge, experience and understanding of the topic. This was borne in mind, particularly when selecting the case studies (Section 8) that range from mega-cities to small towns covering a wide geographic spread in an attempt to ensure that there is some useful knowledge to be gained for every reader of the report.

The structure of the report consists of the following eight sections that aim to:

I provide a vision for cities of the future from the perspectives of the contrasting lives of two fictitious residents with the differing outcomes dependent on the future pathway as chosen by policy makers today (Section 2);

I peview the current status of typical energy systems that supply cities whether in OECD or non-OECD countries and whether the energy sector is privatised or not (Section 3);

I Pescribe the new and emerging concepts of supplying affordable, reliable and sustainable energy for meeting the energy demands of large and small communities to enable them to function, including centralised and decentralised energy systems, based in part around renewable energy technologies (Section 4);

I Proadly cover the renewable energy technologies currently available or close-to-market that can provide electricity, heating, cooling and mobility, leaving the interested reader to obtain the technical details from the various IEA Implementing Agreements and other organisations, web sites and literature as listed in the references (Sections 5 and 6);

I Piscuss what policies and measures are available at the national, regional and municipal levels and how the most appropriate ones may best be selected and employed in order to support renewable energy deployment within a city and hence gain the optimum benefits offered for the economic, environmental and social well-being of the community (Section 7);

I identify some key case study examples to show how several selected towns and cities have already successfully encouraged the local uptake of renewable energy inputs and, in some instances, become the model for national policy developments with replications also occurring in other countries (Section 8); and

I present recommendations for actions (Section 9) that could be agreed and acted upon by leaders, businesses and citizens of a town or city, in relation to:

• setting targets for renewable energy and greenhouse gas reductions;

• developing policy plans designed to meet the targets;

• deciding upon the introduction of relevant regulations and incentives; and

• providing education, training and information.

The notion that consumers alone decide on what energy sources they will use in future is largely theoretical. In reality, cities determine what infrastructure is required and are certainly a more powerful intermediary with large energy companies than the individual energy consumer could be. The challenge will be for municipal urban authorities to provide a sense of opportunity, excitement and hope for their residents looking towards the future. This could be achieved by combining community-based innovation, the use of new technologies, and innovative planning design, hence moving towards having a city better suited to a future carbon-constrained world.

If each of the many successful renewable energy demonstration projects and innovative policies undertaken by leading cities as identified throughout this report could be replicated twentyfold or thirtyfold, or even one hundredfold, during the coming decade, then cities could become facilitators of change in the energy sector .

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