Monday, May 11, 2009

Sustainable urban habitat: industry has to take the lead

Sustainable urban habitat: industry has to take the lead
The Financial Express, May 11, 2009, Page 5

fe Bureau

The title says it all. An exploration of sustainability in the provision of basic urban services in Indian cities, is true to its name. Brought out by The Energy and Resources Institute (Teri) in partnership with Sustainable Urbanism International and Arghyam, and with support from Rohini and Nandan Nilekani, the report not only highlights the state of affairs in cities, but also makes recommendations for making cities sustainable. Focusing on sectors like buildings, water, solid waste management, transport and power, the report also makes a case for engaging the private sector either on its own or through public-private partnerships (PPPs) in developing sustainable cities.

For example, corporates have a big role in the construction and maintenance of sustainable buildings. It also offers them strategic business opportunities. Companies can begin with themselves by converting their offices and residences into green buildings. Small, but institutionalised steps like annual water and energy audits would subsequently help in maintaining sustainability. It’s important because buildings consume 30-40 % of the global energy use and emit 24% of world CO2 emissions. About 90% of the energy is used for heating, cooling, lighting and other applications. Construction and material manufacture account for only 10% of the energy used. Improved energy efficiency measures alone can help reduce 30% of greenhouse gas emissions by 2020. Whether it’s industry or transport, all the sectors offer scope for emission reduction.

Similarly, having a preferential policy for purchasing green products would go a long way. Besides, manufacturers can produce resource efficient products, particularly electrical appliances. It’s desirable for companies to test, certify and label their products. Financial institutions can come out with innovating green products. MNCs can facilitate transfer of clean technology. More importantly, corporates and public-private organisations have a role in creating a market for greener products and technologies.

Referring to water, the report recommends laying down institutional mechanisms for PPPs in executing services contracts like billing and collection, management contracts like water treatment and mapping of distribution network. Similarly, in solid waste management, the private sector’s role has been underlined in service improvement and better cost recovery. It calls for capacity building of local bodies to enable them to appreciate the issues regarding processing facilities and landfills before they enter into contracts with the private sector. In fact, they have to be informed not only legally, but also technically.

Though the Teri report fills the knowledge gap in this area in the country, yet it’s only the first step in this direction. Says RK Pachauri, director-general, Teri, in the foreword to the report, “Clearly, recommendations for improved service delivery in cities cannot be complete without appropriate regulatory frameworks and institutional arrangements to empower city governments with adequate financial resources, institutional capacities, and more importantly, good governance practices.”

Making cities sustainable is important because half of the world population lives in cities. The proportion of people living in cities is projected to rise to 70% by 2050, according to the UN-Habitat. It will have significant impacts. Cities contribute the most to a nation’s GDP, which leads to corresponding level of energy consumption and CO2 emissions. So, cities, particularly production and services centres, hold the key to reduce CO2 emissions and check climate change. In cities, most of the energy is consumed by industry; residential and commercial buildings, and services and transport. It’s a little wonder that initiatives like UK’s Sustainable Cities Index 2008, UN-Habitat’s Sustainable Cities Programme and Clinton Climate Initiative’s C40 Large Cities Climate Leadership Group have sprung up worldwide.
Real Estate

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