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