APEC EWG 51 Australia passion for sustainable cities

APEC EWG 51, Australia passion for sustainable cities The 1 st Edition of APEC Low-Carbon Town Indicator (LCT-I) System 10, May, 2016 APERC Asia Pacific Energy Research Centre Nikken Sekkei Research Institute Copyrights (c) 2016 NSRI All rights reserved. Copyrights (c) 2014 NSRI All rights reserved.

INDEX passion for sustainable cities 1. Background, Features & Purpose and Principle 2. Structure of Assessment System 3. Scoring Criteria and Assessment Method 4. Example of Tier 3 5. How to Use the Assessment Results 6. Trial Evaluation by Self-diagnosis 7. Comments from Study Group-A Experts 8. Entire Schedule Copyrights (c) 2016 NSRI All rights reserved.

Background of APEC Low-Carbon Town Indicator (LCT-I) System l The necessity of a comprehensive indicator system for towns to evaluate their low carbon-ness was discussed in EWG 45 meeting where the initial idea of indicators was introduced as a part of the Concept. Since then, LCMT Task Force started the preliminary study of the indicator system. l The progress of preliminary study was reported in EWG 46, EWG 47 and EWG 48 meetings. l The framework of the LCT-I System was reported in EWG 49 meeting. l The draft of LCT-I System and the 1 st trial evaluations of selfdiagnoses in previous LCMT case towns were reported in EWG 50 meeting. Copyrights (c) 2016 NSRI All rights reserved. 3

Features and Purposes of LCT-I System ●　Focused on developing and achieving “Low-Carbon” towns / cities ●　 Included as a part of the “Concept of Low-Carbon Model Towns in the APEC Region” ●　Designed not for comparison with other towns/cities, but for defining town policies for low-carbon, and for tracking the progress ●　 Encourage utilization by government officials rather than professional city planners (and contractors) Copyrights (c) 2016 NSRI All rights reserved. 4

Principles to Comprise LCT-I System l Simple and easy-to-understand l Reflects the circumstances of each economy and the characteristics of the project ( as much as possible) l Based on the achievements of the APEC LCMT TF, existing assessment indicators and global trends Copyrights (c) 2016 NSRI All rights reserved. 5

Structure of Assessment System ●　The Assessment System is comprised of five major items 　　 　　(Tier 1) , 14 middle items (Tier 2) and 23 specific items (Tier 3) aiming maximum usability by minimum item number. ● Tier 1 is divided into two categories: low-carbon measures directly related to energy usage; and measures indirectly related to energy usage but important to reduce CO 2 emissions. ● Tier 2 is broken-down into more specific indicators and criteria as Tier 3 to evaluate broader issues for low-carbon town issues. ● The assessment system was comprised with referring existing advanced assessment systems like CASBEE, LEED, etc. Copyrights (c) 2016 NSRI All rights reserved. 6

Comprehensive structure of LCT-I System Tier 1 Directly Related Indirectly Related Copyrights (c) 2016 NSRI All rights reserved. Tier 2 Tier 3 No. of specific items Demand Side 1. Town Structure 2. Buildings 3. Transportation Supply Side 4. Area Energy System 5. Untapped Energy 6. Renewable Energy 7. Multi Energy System Demand & Supply Side 8. Energy Management System 1 Environment & Resource 9. Greenery 10. Water Management 11. Waste Management 12. Pollution 6 13. Policy Framework 14. Education &　Management 3 Governance 9 4 7

Indicators for Demand Side Tier 1 Demand Side Tier 2 Tier 3 1. Town 　 　 Structure 1. Adjacent Workplace and Residence 2. Land use 3. TOD 2. Buildings 1. Energy Saving Construction 2. Green Construction 3. Transportation 1. 2. 3. 4. Promotion of public transportation Improvement in traffic flow　 Introduction of low carbon vehicles Promotion of effective use Policies to develop a Low-Carbon Town 1. Town Structure : • Establishment of a town structure which minimizes traffic. • Control of town suburbanization and sprawl 2. Buildings: • Use Energy-saving equipment (Hardware) • Prepare a certification system or guidelines (Software) 3. Transportation: • Transfer public transportation, Car sharing, Introduce EV, PHV, FCV, etc. Copyrights (c) 2016 NSRI All rights reserved. 8

Indicators for Supply Side Tier 1 Tier 2 4. Area Energy System Supply Side Tier 3 1. Area energy system 5. Untapped Energy 1. Untapped energy 6. Renewable Energy 1. Renewable Energy 7. Multi Energy System 1. Multi Energy Policies to develop a Low-Carbon Town • 4. Area Energy System: Introduction of district energy systems such as DHC • 5. Untapped Energy: Utilization of exhaust heat from sewage heat, heat from subway / underground shopping area, etc. • 6. Renewable Energy: Introduction of renewable energies such as solar, wind, and small-scale hydropower, and biomass, etc. • 7. Multi Energy System: Introduction of high energy efficiency system (Cogeneration or Combined Heat and Power) Copyrights (c) 2016 NSRI All rights reserved. 9

Indicators for Demand & Supply Side Tier 1 Tier 2 Demand & 8. Energy Supply Management System Side Tier 3 1. Energy management of building and area Policies to develop a Low-Carbon Town 8. Energy Management System • Establishment of a whole system to monitor and operate the energy in a area • Introduction of energy management system into buildings, households, and factories • Monitoring and control of energy demand supply through utilizing ICT, etc. Copyrights (c) 2016 NSRI All rights reserved. 10

Indicators for Environment & Resource Tier 1 Tier 2 9. Greenery Environment & Resource Tier 3 1. Securing Green Space 10. Water Management 1. Water resources 11. Waste Management 1. Waste products 12. Pollution 1. Air 2. Water Quality 3. Soil Policies to develop a Low-Carbon Town • 9. Greenery: Creation of cool spots by green shade • 10. Water Management: Recycling of waste water, 3 R activities (Reduce, Reuse, Recycle), setting environmental standard, etc. • 11. Waste Management: Controlling and reducing the amount of discharged waste, garbage, etc. • 12. Pollution: Setting environmental criteria, Efforts to achieve the criteria Copyrights (c) 2016 NSRI All rights reserved. 11

Indicators for Governance Tier 1 Tier 2 Tier 3 13. Policy Framework 1. Efforts toward a low carbon town 2. Efforts toward sustainability factors 14. Education & Management 1. Life cycle management Governance Policies to develop a Low Carbon Town • 13. Policy Framework: Preparation of a low carbon guidebook, global warming countermeasures, Life Continuity Plans (LCP), Business Continuity Plans (BCP), educational systems, campaigns, etc. • 14. Education & Management: Environmental education (environment studies, eco driving, etc. ) , establishment and operation of area management organization, etc. Copyrights (c) 2016 NSRI All rights reserved. 12

Scoring Criteria and Assessment Method • The revel of achievement is assessed by a 5 star(★) system. • 3 ★ is the standard value. • In Tier 3 indicator, the case of a three point scale (1★, 3★, 5★ ) and a four point scale (1★, 2★, 3★, 5★ ) may be applied depending on the targets of Tier 3 at times. • If there are no effort in urban planning, target criteria, action plans, nor any measures, No ★ would be given. • The quantitative assessment like energy consumption should be conducted according to the analysis guidelines that were founded by each economy or the international standards. Copyrights (c) 2016 NSRI All rights reserved. 13

Example of TIER 3 Indicators (Ex. Demand side) Transportation (Promotion of public transportation) • Develop traffic nodes to improve the convenience of public transportation. • Introduce car sharing, park-and-ride and pioneering public transportation methods such as BRT and LRT as means of mass transportation. • Promote eco driving. • Introduce EV, PHV, HEV, FCV, natural gas vehicles, diesel vehicles, etc. Tier 1 Tier 2 1. Town Structure Demand Side 2. Buildings 3. Transportation Copyrights (c) 2016 NSRI All rights reserved. Tier 3 1. 2. 3. 1. 2. Adjacent Workplace and Residence Land use TOD Energy Saving Construction Green Construction 1. 2. 3. 4. Promotion of public transportation Improvement in traffic flow　 Introduction of low carbon vehicles Promotion of effective use 14

Example of TIER 3 Indicators (Ex. Demand side) Transportation (Promotion of public transportation) Assess efforts in transportation measures toward a low carbon society ★ ★★ ★★★★★ Efforts in measures for transportation are not made. However, a system for their formulation has been established, and prospects for their establishment are clear. One or more measures for transportation are in place. Three or more measures for transportation are in place. Five or more measures for transportation are in place. Introduction of leading public transportation systems LRT BRT Source : Institute for Transportation & Development policy Copyrights (c) 2016 NSRI All rights reserved. 15

Example of TIER 3 Indicators (Ex. Supply side) Multi Energy System (Multi Energy) • Introduction of a high energy efficiency system. • In addition to CO 2 emissions reduction effect, energy saving effect, cost reduction effect, can also be considered (During normal hours). • Furthermore, Cogeneration system in cases of emergency can be expected as a distributed power source system (at emergency time). Tier 1 Supply Side Tier 2 Tier 3 4. Area Energy System 1. Area energy 5. Untapped Energy 1. Untapped energy 6. Renewable Energy 1. Renewable Energy 7. Multi Energy System 1. Multi Energy Copyrights (c) 2016 NSRI All rights reserved. 16

Example of TIER 3 Indicators (Ex. Supply side) Multi Energy System (Multi Energy) Assess the presence or absence of introduction plans for CHP (or Cogeneration) in an electric power supply system. ★ ★★ ★★★★★ There are no plans for introduction in place. However a system for introduction has been established and prospects for its introduction are clear. There are plans for introduction in place. There are introduction plans which have been implemented. In addition, a subsidy system, etc. for expansion of implementation has been established. -Multi energy refers to CHP (Combined Heat and Power) and Cogeneration. -CHP and Cogeneration are systems which use natural gas, petroleum, propane gas, etc. , to simultaneously generate electricity and waste heat by means of an engine, turbine, fuel cell, etc. -The recovered waste heat, converted into steam or hot water, can be used for air-conditioning or heating. By effectively using heat and electricity without waste, an overall system energy efficiency of 75 -80% (based on the potential energy of the fuel source) can be achieved. (source: ANRE Japan homepage) Copyrights (c) 2016 NSRI All rights reserved. 17

Example of TIER 3 Indicators (Ex. Environment & resource) Water Management (Water resources) • • Recycling of waste water 3 R activities (Reduce, Reuse, Recycle) Setting environmental standard Promotion of water recycling Tier 1 Tier 2 9. Greenery Environment & Resource Tier 3 1. Securing Green Space 10. Water Management 1. Water resources 11. Waste Management 1. Waste products 12. Pollution 1. Air 2. Water Quality 3. Soil Copyrights (c) 2016 NSRI All rights reserved. 18

Example of TIER 3 Indicators (Ex. Environment & resource) Water Management (Water resources) Assess the presence or absence of efforts to reduce water usage. Efforts are not made. However, a system for their formulation has ★ been established. ★★ ★★★★★ Efforts are not made. However, a system for their formulation has been made, and prospects for their formulation are clear. Efforts are being made and actual reduction goals and fiscal year accomplishments are shown. In addition, a subsidy system etc. for introduction of equipment is in place. Copyrights (c) 2016 NSRI All rights reserved. 19

LCT-I Evaluation Sheet Output Sheet 1 Copyrights (c) 2016 NSRI All rights reserved. Output Sheet 2 20

How to Use the Assessment Results • Local and/or central governments can monitor the progress of LCT development regularly using the LCT-I System. • Efforts toward the LCT can be visualized and encourage its promotion to attract domestic / international developers, investors and related companies. • Progress can be regularly reported at the LCMT Task Force meetings at EWG meeting week or other opportunities. • The local or central government can utilize the result of the LCT-I System in order to improve the CO 2 emission status in the assessed region. • LCT projects which has marked excellent results will expect to be given an incentive scheme, where priority ; “preferential interest rate” and financial supports by international/regional organizations (World Bank, Asian Development Bank, etc. ). Copyrights (c) 2016 NSRI All rights reserved. 21

Trial Evaluation by Self-diagnosis Selected 5 Towns (Phase 1～ 5) *Except Mandaue Phase 1 Tianjin CHINA Central Business District(CBD) Phase 6* Mandaue Philippine Cooperation with neighboring cities Phase 3 Da Nang VIET NAM Redeveloping mixed-use urban district Phase 2 Samui THAILAND Phase 5 Bitung INDONESIA Phase 4 San Borja PERU Island Resort Area Industrial area Residential areas Source Adapted from METI Copyrights (c) 2016 NSRI All rights reserved. 22

Results of Trial (1) Economy Town (LCMT FS) Type of Town Radar Chart* China Yujiapu (Phase 1) Urban(CBD) Thailand Samui Island (Phase 2) Rural(Village Island) Vietnam Danang (Phase 3) Urban(Commercial Oriented Town) Peru San Borja (Phase 4) Urban(Residential Oriented Town) Indonesia Bitung (Phase 5) Urban(Commercial Oriented Town) *These results are merely the results of a trial. In addition, They are not for comparison with each other. Copyrights (c) 2016 NSRI All rights reserved. 23

Results of Trial (2) Questionnaire Do you agree? 0 1 2 3 5 levels is suitable? 4 TIER 1 are suitable? 4 TIER 2 are suitable? Copyrights (c) 2016 NSRI All rights reserved. Agree 0 2 2 The number of TIER 3 is suitable? 3 Neutral Disagree 5 0 3 The contents of TIER 3 are suitable? Strongly Agree 4 1 Strongly disagree 24

Results of Trial (3) Questionnaire Q. What are the advantages and disadvantages of using LCT-I? Answer - Advantages: Ø Help improve the town performance by monitoring the indicators. Ø By using LCT-I concept, local government will know clearly the path of low carbon town plan and development, and the goals targeted to be achieved , etc. - Disadvantages: Ø Costly to develop some indicators where the database is not supported , etc. Copyrights (c) 2016 NSRI All rights reserved. 25

Results of Trial (4) Questionnaire Q. How can LCT-I be used to help your town become more of an LCT? Answer Ø Document of LCT-I can be used as reference of city and government to develop a plan and concept of low carbon area. Ø It is also a valuable reference for local government to use as reference to develop local regulations. Ø LCT-I document becomes an important tool for any local government to use for developing future green city and sustainability that can make people live longer and in high spirit. Ø Publishing it on the APEC homepage. Ø It can be raising the public and private sector awareness to involve in developing more low carbon projects , etc. Copyrights (c) 2016 NSRI All rights reserved. 26

Comments of Study Group-A for the Draft LCT-I System Study Group A Experts form Thailand, China, New Zealand, Australia (and Japan) contents Targeted Scale of Space and Assessment Areas Experts Comments Consider the type of town (urban/rural) and difference climate with extremes of temperature DHC is not always standard in such a climate. It is Important to monitor the lifecycle change of low carbonization Assessment Area & The Tier 3 of Supply Side Criteria maybe to be expanded in details, otherwise Tier 2 and Tier 3 are quite similar. Copyrights (c) 2016 NSRI All rights reserved. TF’s Policies - Basically not for comparison between urban and rural areas. - The assessment indexes in the extreme climates such as extremely cold region like Russia will be verified through the application. - Change DHC to DCH/DH/DC - Traceable the changes in years of Low carbonization Enhancing LCT in developing economies is the important purpose of LCT-I. To ease its application, The tool is consisted of the minimum indexes of Tier 2 & Tier 3 which satisfy the convenient and easy use. Starting from this version will be expective to apply LCT-I widely. 27

Comments of Study Group-A for the Draft LCT-I System Study Group A Experts form Thailand, China, New Zealand, Australia (and Japan) contents Scoring Criteria and Assessmen t Method Experts Comments Most of the proposed indices are qualitative assessment. This may get different results when 2 assessors perform the assessment individually. TF’s Policies The lectures of assessment method and human resources development in assessment should be discussed through the application. How to Use the Assessmen t Results It is important to make sure the results from each economy in the proper way and driven by proper aims. the level of person should be suggested. - LCT-I system is originally simple self-assessment system. - the effectiveness of assessment results, and how to feedback the assessment results should be discussed in future through the application. Copyrights (c) 2016 NSRI All rights reserved. 28

8. Entire Schedule 2014 Preliminary Study (2014 ver. ) EGW 49　(Korea) Reported the Framework of LCT-I System Trial Evaluations by Previous LCMT Case Towns EGW 50　(Hawaii) Reported the Draft of LCT-I System 2016 Development of Final Report Discussion of Study Group A Experts and Task Force Japan Members EGW 51 (Australia) Workshop of the LCT-I System EGW 52 (Russia) 2017 Publication of the 1 st Edition of LCT-I System Utilization of the APEC LCT-I system LCMT Symposium, etc. Copyrights (c) 2016 NSRI All rights reserved. Information sharing with ISO will be continued 2015 Development of Draft Report 29

ANNEX < Outcomes from preliminary study > Copyrights (c) 2016 NSRI All rights reserved. 30

Review of Existing Indicators <City assessment systems collected> 1. LEED-Neighborhood Development (LEED-ND) 2. CASBEE for Urban Development 3. CASBEE for Cities 4. Urban Environmental Indicators (UEI) (OECD：Green Cities programme) 5. Global City Indicators (GCI) (World Bank) 6. Green City Index (Gr. CI) 7. 8. 9. Tianjin Eco City (Tianjin) Smart City Indicators Reference Framework for Sustainable Cities (RFSC) 10. European Initiative on Smart Cities (EISC) 11. J-CODE 12. Tianjin Yujiapu CBD (Yujiapu)） <City assessment systems collected> - Scope of Assessment Target Area Assessment Purpose Assessment Approach Year of Creation - - Copyrights (c) 2016 NSRI All rights reserved. Creator (country) Number of Assessment Indicators Assessment Method (quantitative/qualitative) Participating parties (Applicant and Assessment/Certification Agency) Required Statistical Data - Purpose of Use Case Examples Complexity Applicability to different regions or cities Alignment with international trends (ISO, etc. ) 31

Review of Existing Indicators Ex) How: How should the assessment be approached? The assessment process should be simple and easy to understand should reflect the circumstances of each economy, project characteristics, and international trends. Copyrights (c) 2016 NSRI All rights reserved. 32

Review of Existing Indicators Ex) How: How should the assessment be approached? The assessment process should be simple and easy to understand should reflect the circumstances of each economy, project characteristics, and international trends. Ease of Understanding (volume of information from evaluation results) List Type Rating System (large) Star Type Rating System (small) ⑧Smart City Index(57, 57) ⑩European Initiative on Smart Cities　(N/A) ⑤Global City Indicators (53, 53) ⑫Yujiapu(35, 35) ⑨Reference Framework for Sustainable Cities(33, 33) ⑦Tianjin Eco-city (26, 26) ④Green Growth Indicators (20, 20) ③CASBEE-City(38, 5) ⑪J-CODE(53, 3) Simple and easy-to-understand indicators ②CASBEE-Town(82, 5) ①LEED-ND (110, 4) ⑥Green City Index (30, 1) Easy (less) Copyrights (c) 2016 NSRI All rights reserved. Ease of Data Collection（ Number of indexes） Difficult（more） 33

Review of Existing Indicators Ex) When: What phase should be assessed? Assess each of the following phases: thorough understanding of the actual conditions, planning, design, construction, and operation. key goal indicators* to manage a situational change between the beginning and the end of a project key performance indicators* that monitor progress in the planning and implementation of countermeasures during the of the project, that is, in the planning, construction, and operational phases. Copyrights (c)intermediary 2016 NSRI Allstages rights reserved. 34

Review of Existing Indicators Ex) Where: What is the scope of the assessment? An assessment should be made on a municipal or administrative district basis. Copyrights (c) 2016 NSRI All rights reserved. 35

Review of Existing Indicators Copyrights (c) 2016 NSRI All rights reserved.