The CDM and building sustainable cities
Now even George W. acknowledges that the world needs to “confront the serious challenge of global climate change”. The scientific consensus is that if present trends continue, the world is due for a 1.4 to 5.8ºC warming by 2100. The current international policy response is embodied in the Kyoto Protocol, which sets binding limits on greenhouse gas emissions. One part of the Protocol, the Clean Development Mechanism (CDM), allows for emissions trading between developed and developing countries. I’ve been thinking recently about how the CDM may serve as an unexpected new source of funds to finance more sustainable urban development, of which all urbanists should be aware.
In the context of global warming, it is important to realize how massive the coming global urbanization will be. By 2030 there will be 1.7 billion new urban residents in cities, the equivalent of building a city the size of Vancouver every week. The two largest sectors of global energy use, transport and power generation, serve primarily urban residents and industries, and account for almost 60% of total energy use. Therefore the form that this urban growth takes, and particularly its density, will clearly affect energy use and carbon emissions, as has been argued so frequently by compact city theorists.
Consider a city in the developing world with a high population density but little public transit. What public transit exists is mostly motorbike and minivan taxis, with inefficient old engines burning gasoline. Suppose this city, with the help of some significant investment from an Annex 1 (rich) country or investment firm, build a new electric mass transit system, out of light-rail or bus rapid transit. Suppose they finance the switch to a cleaner burning fleet of taxis. Suppose they make sure new settlements in the growing city are designed to be easily accessible to mass transit, reducing private automobile use. A clear reduction in CO2 emissions would have occurred, generating a Certified Emission Reduction. Sale of the CER would cover most or all of the initial foreign investment. Moreover, the city would be left with a more livable, sustainable place. There are two significant hurdles to be overcome if these kinds of scenarios are to occur. The first is the calculation of the baseline (the “additionality”): what would have happened to emissions without the project? A strict interpretation of the Kyoto Protocol says the project should not have happened without the external funding to qualify for the CDM. The second hurdle is financial viability. Several studies have suggested the minimum viable size for a CDM project is one that stores about 100,000 tons of CO2 per year (or other greenhouse gases with an equivalent global warming potential). Only very big projects within cities are likely to reach this threshold.
As a small-scale example of this, Dhakal (2003) shows that a modest promotion of electric vehicle use in Kathmandu, converting all three-wheeled passenger travel to electric motors and 20% of the bus-travel to trolley buses run on overhead electricity, would save 20,400 tons of CO2 annually. As a CDM project to perform this upgrade could claim credit for several years worth of decreases in emissions, the value of the project on the global carbon market might be in excess of US$500,000, which would cover a significant portion of the project.
I believe the CDM may prove to be a grand opportunity for sustainable urban development. Estimates of the potential global market of the CDM have varied widely depending on assumptions, from $3-21 billion per year. Urbanists need to press for a broadening of the interpretation of CDM under the Kyoto Protocol. If even a small part of the global market for CDM could be used to leverage projects in cities in the developing world, it would make a huge difference. In the process, we would also build more sustainable, livable cities. In essence, I believe the world has the technical know-how to build more sustainable cities, but poorer cities simply lack the capital to enact this change. The CDM could be one of the important tools to close this funding gap.


The City of Sacramento, California, attempts to speed up the infill development process with their model-house pilot program. The solution? Homogenation. The pilot program has a set of four pre-approved plans from which interested persons can choose.
David Sucher's excellent 









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