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Governing Urban Infrastructure in Developing Cities: The Role of Carbon Finance

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Global Change, Energy Issues and Regulation Policies

Part of the book series: Integrated Science & Technology Program ((ISTP,volume 2))

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Abstract

One of the key issues in the post-Kyoto climate regime is to reach consensus on how to finance actions needed in fast-growing economies that will enable altering their business-as-usual emission pathways. Specifically, cities in developing countries will play a significant role in climate mitigation and adaption given their contribution to greenhouse gas emissions and inherent vulnerability to induced global change (e.g., sea-level rise, increased water scarcity and drought, forced migration, etc.). Changing their pathways and increasing climate resilience in these countries requires significant incremental investments in urban infrastructures today. However, financial and institutional capacities are much lower as compared to the developed world. International financial and technology transfer are bound to bridge the gap under a well-designed institutional framework. This chapter discusses different climate finance mechanisms, possible improvement and instrumentalization in light of enhancing urban infrastructure governance in developing cities, in conjunction with their policy relevance, implementability, and economic and environmental effectiveness. Also, we posit institutional implications for using carbon finance to facilitate the development of climate-resilient urban infrastructure in fast-growing cities in developing countries.

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Notes

  1. 1.

    Because carbon dioxide (CO2) from energy use constitutes the major part of greenhouse gases emissions in urban area, we use GHG (greenhouse gas) and carbon/CO2 interchangeably throughout the text for simplicity.

  2. 2.

    All GHG gases are concerned and the effects of non-CO2 ones are converted in equivalent quantities of CO2.

  3. 3.

    By comparison, the MRVable nationally appropriate mitigation commitments or actions, including quantified emission limitation and reduction objectives, by all developed country parties, although ensuring the comparability of efforts among them, take into account differences in their national circumstances.

Abbreviations

BAP:

Bali Action Plan

BAU:

Business as usual

BEE:

Building energy efficiency

BIC:

Brazil, India, China

CCAP:

Centre of Clean Air Policy

CDM:

Clean development mechanism

CD4CDM:

UNEP’s Capacity Development for CDM Project

JI:

Joint implementation

CER:

Certified emission reduction

COP:

Conferences of the Parties

CPAs:

CDM Programme activities

DC:

Developing countries

EU:

European Union

FDI:

Foreign direct investment

gCO2/p-km:

Gram CO2/passenger km

gCO2/v-km:

Gram CO2/vehicle km

GHG:

Greenhouse gases

Gteq C:

Gigaton of carbon equivalent (= 1,000 Mteq C)

Mteq CO2 :

Gigaton of CO2 equivalent (1 Gteq CO2 = 1 Gteq C *44/12)

Mteq C:

Megaton of carbon equivalent

Mteq CO2 :

Megaton of CO2 equivalent (1 Mteq CO2 = 1 Mteq C *44/12)

IEA:

International Energy Agency

IPCC:

Intergovernmental Panel on Climate Change

MOP:

Meeting of the Parties to the Kyoto Protocol

MRV:

Monitoring, reporting, and verifying/measurable, reportable, and verifiable

NAMA:

Nationally Appropriate Mitigation Actions

NDRC:

National Development and Reform Commission, a macroeconomic management agency of People’s Republic of China.

NLT:

No-lose target

OECD:

Organisation for Economic Co-operation and Development

PAM:

Policies and measures

PCDM:

Programmatic CDM

PoA:

Programs of activities

SA:

Sectoral approach

SCM:

Sectoral crediting mechanism.

SD:

Sustainable development

SD-PAMs:

Sustainable development policies and measures

SNLT:

Sectoral no-lose target

teq CO2 :

Ton of CO2 equivalent

UN:

United Nations

UNEP:

United Nations Environment Program

UNFCCC:

United Nations Framework Convention on Climate Change

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Authors and Affiliations

  1. CIRED, 45 bis, avenue de la Belle Gabrielle, 94736, Nogent-sur-Marne, Cedex, France

    Jun Li

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  1. Jun Li
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Correspondence to Jun Li .

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Editors and Affiliations

  1. Pprime/ENSMA, BP 40109, Chasseneuil Cedex, 86961, France

    Jean Bernard Saulnier

  2. , Campus do UniCEUB, University Center of Brasilia, SEPN 707/907, Brasilia, DF, 70790-075, Brazil

    Marcelo D. Varella

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Li, J. (2013). Governing Urban Infrastructure in Developing Cities: The Role of Carbon Finance. In: Saulnier, J., Varella, M. (eds) Global Change, Energy Issues and Regulation Policies. Integrated Science & Technology Program, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-6661-7_13

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