ICLEI Report - Financing the Resilient City-Final

8/6/2019 ICLEI Report - Financing the Resilient City-Final

1/48

FINANCINGT H E R E S I L I E N T C I T Y

CONCEPT CLIMATE

ICLEI Global Reports

A demand driven approach

to development, disaster risk

reduction, and climate adaptation

An ICLEI White Paper

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2/48

Financing the Resilient City: A demand driven approach to development, disaster risk reduction and climateadaptation

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3/48

Financing the Resilient City:

A demand driven approach to development,

disaster risk reduction and climate adaptation

An ICLEI White Paper


4/48 Financing the Resilient City

The report in brief

The level of resilience of our cities and towns is dependent on the quality and performance of

the overall urban system, not solely on the climate change adaptation of single infrastructure

elements.

Adaptation to climate change is becoming increasingly relevant as the negative impacts of

climate change increase. At the same time, awareness about disaster risk reduction is also a

growing concern.

There needs to be a shift, in both adaptation to climate change and disaster risk reduction,

from a singular and specific focus on affected infrastructures and locations towards a more

integrated focus on overall risks, development conditions, and local area performance.

The report calls for:

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The right capacity must be available at the local level to leverage the right finance. Capacity is

needed at the local level to organize effective demand for resilience as one of the key conditions

for comprehensive resilience upgrading of vulnerable urban areas. This would allow locally

driven, large and complex projects to advance as quickly as conventional top-down projects.

The challenge is to match local demand for resilience with the supply of finance.

Conditions at the local level for leveraging finance include:

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In addition, there are challenges to the supply of finance:

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5/48A demand-driven approach to development, disaster risk reduction, and climate adaptation

Foreword

Cities taking action

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Introduction

Implementing climate adaptation financing

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AnnaBoluda

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Content

Executive summary

. Introduction: Background and purpose

. Framing the demand-driven strategy:

Mobilizing response by defining opportunity

. The requirements of resilient city building 0

. Resilience upgrading: A description

. Performance-oriented investment: Re-focusing the purpose

. Demand-driven investment: Re-focusing the approach

. Creating market conditions for resilient city-building 9

. Establishing planning processes for resilience upgrading 0

. Building institutional capacity for comprehensive

resilience upgrading

. Financing the resilient city

. Creating greater financial flows for resilient city-building 6. Financial product innovation 9

6. Conclusion

. References

8. Acknowledgements

8. ICLEI Think Tank 0 participants

8. ICLEI professionals consulted with 6

8. Supporting organizations 6



List of figures and photos

Figure Leveraging climate adaptation funds 8

Figure The elements of a `Resilience Upgrade` project

Figure Resilience Upgrading: A demand-driven approach

Figure Effi ciency and performance synergies from

integrated upgrading 6

Figure Creating a market for resilience: Resilience upgrading

innovation challenge 9

Figure 6 A generalization of prevailing adaptationplanning practice

Figure A generalization of integrated planning for

resilience upgrading

Figure 8 Investment structuring for complex urban

upgrading projects

Figure 9 Focusing the areas for resilience mainstreaming

and finance innovation.

Figure 0 ( reprinted) The resilience upgradinginnovation challenge 8

Photo A vulnurable location in Mumbai, India



Executive Summary

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Innovation in projectPlanning & design, and

Financing solutions

BBuilding local capacity for complex

Redevelopment projects, integratingResilience & sustainability

Performance

Increase in the variety and complexity of necessary project measures

Increaseinfin

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requiringnon-

conventionalornon-marketfinance

New Build Retrofit 1of Single Facility

Building, Infrastructure

Resilience Upgradeof a Geographic Area or a

Utility/Service System

Single projectfinancing

Portfolio financing (by type ofarea/system and measure)

Retrofit 2of Entire Utility/Service

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AMainstreamingAdaptation/drm &Sustainability intoConventionalDevelopment

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The original

concepon of an

internaonally-

supported

Adaptaon Project

A ResilienceUpgrading Project

APPROACH

Top-Down

Supra-Local Project OriginaonIDF/ODA Oriented

Addional

Boom-UpLocal Project Originaon

Private/Local Public Finance Oriented

Mainstream

PURPOSE

Climate

Risk Reducon

Special

Purpose

Overall Urban

Performance

Enhancement

Integrated

Current concepon

of an internaonally-

supported Disaster

Risk Migaon

Project

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Figure R Up: A -v pp


25/48



landscapes according to risk relevant features. Urban structure types, block size, and form

are dependent upon the transportation or surface water networks that frame the block, as

well as the formal or informal nature of the building typologies, their individual forms, their

connections as well as their interconnections to adjacent structures Other differentiations

are made based upon land uses, orientation, structure density and building and sealing

material. Furthermore, at the street level, via valuable local knowledge, photography and

site visits, the climate change relevant indicators and parameters for each urban structure

type can be surveyed ( f pp 2-4).

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developing an alternative drinking water source, implementing an integrated monitoring

and management system of the catchments supplying the citys water, improving the

effi ciency of the citys water distribution network, and reducing consumer demand throughcampaigns and awareness raising. (GEF, , p.19).

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Sample investorsBenets from direct

investment

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integrated investments

Internaonal Adaptaon Fund

Upgraded storm water drainage

and retenon system. Reducedood risk and damage.

Permeable surfacing reduces

size/cost of upgrade. Street &

BRT contribute to planned

drainage paern.

Local Roads Department

(Municipality)

Upgraded street & sidewalk

grades. Permeable surfacing. A

greener more user friendly

streetscape.

Reduced maintenancecost due

to reduced ood risk. Reducedtrac congeson/ increased

emergency access due toseparated bus lane.

Local Property Developer

Community center (cum

emergency shelter) in new

commercial/retail building.

Increased development height

allowance in exchange for

center. Increased property value

and shopping trips due to

reduced congeson and risk.

Regional Transportaon

Department (Sub-naonal

Government)

Separated, above-grade BRT

lane with sound barrier/oodwater retenon wall abungresidenal area.

Reduced planning

cost/increased roung eciencydue to community permission in

exchange for retenon wall.



Effi ciency

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doing even in the absence of greenhouse benefits. (Hamilton and Quiggan, 1997).

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of measures

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c

pr

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routines

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mainstreaming

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upgrade project

measures

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ICLEIeV(2011)

Figure 8 Iv f px b p p



5 Financing the resilient city

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ontrang for systems

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ICLEIeV(2011)

Figure 9 F f fi v



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ComplexDevelopmentChallen

ges

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planning process,

engaging local

stakeholders to

design

comprehensive

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projects

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types

of projects

bundled as

specic

investment

porolios

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standardized

nancing oers

that are value-

engineered and

risk-managed for

predictable

performance

Financial

instruments

customized

to service

specic

project types

or porolios

of measures

The Demand-Side Challenge The Supply-Side Challenge

customized uniform customized uniform

c

pr

FINANCE

SOLUTIONS

instruments

instuons

rounes

o measure

in tru en s

instuon

r u n s

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development

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New Capacity Requirements

PolicalCondions

ComplexMarket&

ICLEIeV(2011)

Figure 0 (5 p) T p v



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f f x .

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f p b.

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v .

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fi pp p f -b

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v v.



6 Conclusion

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f p vb b .



7 References

Hamilton, C. and Quiggan, J., 1997, Economic Analysis of Greenhouse Policy: A laypersons

guide to the perils of economic modeling. S, Sb E Dvp

A f N S W. ...//p_fx/DP15.pf

( 6 Db, 2010).

ICLEI, 2007, Resilient Communities and Cities Initiative.

ICLEI, 2010, Resilient Cities: The annual global forum on cities and adaptation to climate

change, ../-.

Moon, K., Downes, Rujner and Storch, 2009, Ap f Ub S Tp

App f Vb A f C C R H C MC I: E-Proceedings: 45th ISOCARP Congress 2009 Low Carbon Cities. T H,

ISOCARP. .p./D/_/1596.pf ( 9 Db,

2010).

GEF, , T Gb Ev F. Financing Adaptation. W, D.C.,

.f./f//f./f/pb/p-_0.pf

( 6 Ob, 2010).

Parry, M., Nigel, Pam, Arnell, Berry et al., 2009, Assessing the Costs of Adaptation to

Climate Change: A review of the UNFCCC and other recent estimates. L: IIED,

G I f C C. p://pb../pf/11501IIED.pf( 14 Nvb, 2010).

Woetzel, J., Mendonca, L., et al., 2009, Preparing for Chinas Urban Billion. MK

Gb I, p 16 115. ..//p/pf/C_

Ub_B/C_b_b_f_p.pf( 21 M, 2011).

United Nations, Dp f E S Aff, Pp Dv. W

Ub Pp, 2009 Rv. N Y. URL: p://../p/

p/_. ( 26 Ap, 2011).

World Bank b p://.b.//-p--

---, f p b D H .C C C: A U A. W, D.C.: T W B

(2010).



8 Acknowledgements

8. ICLEI Think Tank 0 participants

Amanda Eichel S P Av C f N Y/C40,

USA

Anne Odic Cv vpp

b L A Ub

Dvp

AfD (A F

Dvpp)

Annette Bhring L Kpf

D, R,

K- S

GIZ (G

Dvp

Cp)Cristina Rumbaitis del

Rio

A D T Rf

F

Gnter Meinert S Ub Sp GIZ/C A

Helena Molin Valds Dp D UNISDR

Jeb Brugmann M P T Nx P

Konrad von Ritter D, P Dvp KRITTER Av

Sv

Luna Abu-Swaireh R P Offi ,

R Offi f Ab S

UNISDR

Mathias Gauger S V M I,

SFS COFEA IP

S F

Sv GbH

Monika Wiebusch S S,

Kp S

KfW Eb

Mzukisi ka-Gwata P M: C C

Ap

C f Jb,

S Af

Robert Kehew H S Av

Ub Ev P

B

UN Hb

Sandra ValenciaMosquera

C C Exp I-ADvp B

Sandy Taylor H f C C &

Sb

B C

C, UK

Snke Kreft S Exp C

I

G

Youssef Nassef M, Ap, T

S P

UNFCCC

Konrad Otto-

Zimmermann

S G ICLEI W S

Yunus Arikan M, C C C ICLEI W S

Monika Zimmermann D, Cp C ICLEI W S

Richard Simpson R A, Cp C ICLEI W S



8. ICLEI professionals consulted with

Barbara Anton P C, W ICLEI Ep

S

Yunus Arikan M, C C C ICLEI W S

Victorino Aquitania R D ICLEI S A

S

Alice Balbo R C Cf P Offi , Gb Ap

C, Cp C

ICLEI W S

Kobie Brand R D ICLEI Af S

Steve Gawler D, I P ICLEI O

S

Ewa Jackson M ICLEI C Offi

Konrad Otto-

Zimmermann

S G ICLEI W S

Holger Robrecht D, Sb M ICLEI Ep

SRichard Simpson R A, Cp C ICLEI W S

Melissa Stults C D, Gb Ap

C

ICLEI USA Offi

Wolfgang Teubner M D ICLEI Ep

S

Monika Zimmermann D, Cp C ICLEI W S

8. Supporting organisationsICLEI v T T f b vp fi xp

Fb 2011 p f G M f E Cp

Dvp (BMZ) pp pp f G Dvp

Cp / D Gf f I Zb (GIZ).



ICLEIs current services and contributions

Resilient Cities annual global forum on cities and adaptation to climate change in

Bonn, Germany, are held back-to-back with the UNFCCC Bonn talks.

3-5 J, 2011

11-13 M, 2012

31 M 2 J, 2013

Adaptation planning guidance for local governments including:

ICLEI O Ap T,

ICLEI C C C, C C,

ICLEI USA ADAPT ;

Implementation of adaptation projects for example:

ICLEI Af (5 C Ap N, f Iv C

C C Ip T T (ICCCI T) L Iv C-

C R Ap P T T (L RAP ));

ICLEI Ep p ICLEI S A S A (A-

CAp), pfi b p, pv -

p b ;

Nairobi Work Programme

ICLEI v pp Nb W P-

(NWP) f U N F Cv C C

(UNFCCC). T R C , b f

p, A P f ICLEI NWP;

Intergovernmental Panel on Climate Change (IPCC).

ICLEI v ffi bv -

Iv P C C (IPCC).


48/48

ICLEI b

v v

f v v

b pv b

b p f

v

v .

ICLEI f

1990

I C f L

Ev Iv.

ICLEI World Secretariat

K-F-S. 7

53113 B, G

P: +49-228 / 976 299-00

Fx: +49-228 / 976 299-01

E: @.

World Wide Web

../

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