u.s.-taiwan sustainability symposium, december 10, 2012

7/30/2019 U.S.-Taiwan Sustainability Symposium, December 10, 2012

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Dr. David J. JhiradProfessor and Director

Johns Hopkins SAIS Energy Resources and Environment ProgramUS-Taiwan Sustainability Symposium, December 10, 2012



Global Developments in Infrastructure and Energy Energy -Water Nexus

The Strategic Benefits of Energy Efficiency Sustainable Mobility and Transport

The Obama -Roussef Joint Initiative on Urban Sustainability The Rockefeller Foundation Asian Cities Climate Resiliency

Network( ACCRN )

Innovative Partnerships and Financing ( ARISE )



• 68.7% Of the world’s population willlive in urban areas by 2050 (in 2010,this figure was 50.5%)

• 25% of global GDP comes from the

top 100 cities

• 13% Of the world’s population live inat-risk coastal areas (which make up2% of the world’s land area)

• 75% Of people who live in at-risk

coastal areas (0–10 m above sealevel) are in Asia

• 80% expected $80 billion to $100billion per year in climate changeadaptation costs will likely be borneby urban areas



Sources:BoozAllenHamilton,GlobalInfrastructurePartners,WorldEnergyOutlook,OECD,Boeing,DrewryShipping

Consultants,USDepartmentofTransportaon(2007)



2010

Theenergysector’swaterneedsaresettogrow,makingwateranincreasingly

importantcriterionforassessingtheviabilityofenergyprojects

20%

40%

60%

80%

100%

2010

Coal

Nuclear

Other

Energy

Biofuels

Fossilfuels

Power

Globalwateruse Waterforenergy

Source:IEAWEO2012



20%

40%

60%

80%

100%

Industry Transport Power

genera9on

Buildings

Unrealisedenergy

efficiencypoten9al

Realisedenergyefficiencypoten9al

Two-thirdsoftheeconomicpotenaltoimproveenergyefficiencyremains

untappedintheperiodto2035

EnergyefficiencypotenalusedbysectorintheNewPoliciesScenario

Source:IEAWEO2012



Inaddiontocungenergyexpendituresbyanaverageof20%,improved

efficiencybringswidereconomicgains,parcularlyforIndia,China,theUnited

Sates&Europe

Energyexpenditurein2035comparedwith2010

Trillion

EfficientWorld

Scenario

NewPolicies

Scenario

-$0.3

$0

$0.3

$0.6

$0.

$1.2

$1.5

China India European

Union

United

States

Japan

Source:IEAWEO2012



DistrictCoolingcouldgreatlyincreasetheenergyefficiencyofverydensely

populatedciessuchasNewYorkCity,replacingtheneedforaircondioning

andhencegreatlyreducingelectricityconsumpon.

Sources:CenergyandLogstor



E l e c t r i c a l a n d T h e r m a l E f c i e n c y

i n %#

Source:Logstor



Source:IEAWEO2010



ASmartCityincenvizesandsupports:

• Non-motorizedtransportthroughpriorizaonofbicycleandpedestrianinfrastructuredevelopment

• Transit-orienteddevelopmentofresidenalandcommercialareas• Useandefficiencyofpublictransport(e.g.BusRapidTransit)

• AffordabletransportsoluonsforeveryoneButputsinplacedisincenvesfor:

• Individualcarusethroughmeasuressuchascongesoncharging,limitedparking,andvehicletaxes

• Urbansprawlthroughproperzoning



• Dedicatedlanesandbusstopswitheasyaccess

• Local,ExpressandFeederServices• Ticketsintegratedacrosswholesystemandaffordableforgeneralpublic

• Reliableuserinformaonsystem• Cleanbuseswithlowemissions,e.g.usingCNG

• Integratedintozoningtoenabletransit-orientedhubs



Majorglobalgastradeflows,2010Majorglobalgastradeflows,2035

Source:IEAWEO2012



" Sustainable development forthe next 20 years: Rio+20 !

" Integrating environmental,economic and social goals!" Addressing rapid urbanization!

" Domestic priority on

infrastructure in US & Brazil!" New frame for bilateralengagement and action !

Brasilia, March 2011!

Source:Dr.ShaliniVajjhala



- President Obama !



" Key Objectives!

" Bundling: moving from project to portfolio-finance!

" Avoiding losses: capturing savings and externalities!

" Leveraging: making the most of public resources!

" Structure: Bilateral public-private partnership with federal,

state and local governments and communities!" JIUS Cities: Rio de Janeiro and Philadelphia !




" Local leadership on sustainability !

" Rio mega -events: Rio+20, 2014World Cup, 2016 Olympics!

" Philly 100% green stormwater plan!

" Major gaps in implementation!

" Opportunity to transforminfrastructure finance & delivery !

" Model for both established &emerging cities around the world!




" Targeting urban adaptation investments !

" Identifying opportunities for avoiding losses!

" Enabling integrated planning and policy !

" Creating local institutions and delivery mechanisms!

" Financing integrated, flexible, resilient infrastructure!

"Successful adaptation is often a

non-event

!" Need to create space for continuous improvement!

" Building investor confidence in sustainable systems !




Grants!

Local Green * Development B-Corporation![Implementing Authority / Delivery Mechanism]!

Sustainable Development Portfolio!

Integrated Systems / Public Goods / Networks!

Asset

Manager

Loans!( Zero/Low-

Interest )$

5-10% Return!

10-15% Return!

+15% Return!

Social!Programs!

Public!Private!

[Equity/Debt]!

Concessional Finance!

Independent Management Board!( Governments, Stakeholder Groups, etc. )!

National/Local Capital! National/Local Capital!

Project!Finance!

Corporate Finance!



Grants

New B-CorpLand concession & development rights incentive mechanisms;15-year life, contracting authority with State and City of Rio

Green building, affordable housing, transit, energy, water,

lighting systems, etc.

Asset Manager

MDB

Development

Policy Loans(Zero/Low-Interest)

20+% Return (Private Equity/Debt)

Job Training

Center(s)

Public Private

Jardim Gramacho Board -- City and State of

Rio, Duque de Caxias, local stakeholders

Tech. Assistance/Planning Grants12%-15% IFC & Sovereign Funds (1st loss)

E-Waste

Recycling

FacilityConstruction, technology

firms -- corporate finance

Jardim Gramacho Redevelopment (~$2 billion, 15-year, est. ROI 12-25%)

Revenue Streams: Real Estate Development, CDM Credits

15-20% Return (Private Equity/Debt)

OPIC (Risk Insurance)




• Historically, the landfill has received 3 millionmetric tons of waste per year, releasing large

volumes of methane, a highly potent

greenhouse gas.

• In June, the landfill was closed, with daily trash

now transported to the most advanced

treatment plant in Latin America to curbproduction of greenhouse gases and pollution

of nearby marshes.

• Further, about 75 million cubic meters of

methane gas will be collected over the next 15

years from the remaining waste.

• The Brazilian petroleum company Petrobras

plans to purchase the landfill's methane gas for use in its refineries.

• A portion of the revenue stream from the

methane sales will help rehabilitate the

impoverished favelas that have sprung up

around the landfill - generating social and

environmental benefits.



" Project Recipes!

" FinancialIngredients!

" Policy Menus!

" www.epa.gov/jius!



• Structuring at least 3 Sustainable Development Portfoliosto jump-start the master planning process

• $1.2-1.5b bankable portfolios developed by NGOs andentrepreneurs

• Gramacho Landfill• Guanabara Bay

• Another currently being selected in the US

• Identifying legal and financial structure for the SDCs



• 7 year initiative launched in2008

• $60 M of $90M GlobalClimate Change Initiative

• Investing in 10 cities in 4Asian countries

• Emphasis on 2nd tier cities

Source:CrisnaRumbaisdelRio(RockefellerFoundaon)



ImpactThe resilience and capacity of agrowing number of developing

country/Asian cities in relation tocurrent and future climate risks is

enhanced, and through this work the

lives of poor and vulnerable men andwomen are improved.

Outcomes1. Capacity of Cities to plan, finance,coordinate and implement climatechange resilience strategies2. Network for Knowledge, Learningand Engagement

3. Expansion, deepening of experience,scaling up

Source:CrisnaRumbaisdelRio(RockefellerFoundaon)



ARISE



Innovative Public-Private Partnerships• Visibility, transparency, well-defined channels of communication

• Global Initiative on Urban Resilience: World Bank; SAIS/ERE;

ICLEI; C-40; US Green Building Council; Abu Dhabi Eye-on-

Earth Summit

Intermediary entities to ensure access to full array of capitalavailable• Bring together different stakeholders representing different

“colors” of money – public and private grants all the way to

venture capital and private equity

Global entity to prepare portfolios of smaller projects: New Rolefor Green Climate Fund?• De-risks individual projects

• Reduces aggregate transaction costs

u.s.-taiwan sustainability symposium, december 10, 2012

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