What generates 70 percent of the greenhouse gases emitted from cities like New York, Beijing, or New Delhi? Not long ago, I might have answered “cars.” But the real culprit is buildings – our homes, offices, schools, and hospitals. Many of which use electricity, water, and fuel extremely inefficiently because of the way they were initially designed.
In fact, about 40 percent of the world’s electricity is used to cool, light and ventilate buildings, even though much more efficient technology exists.
The longevity of buildings is why we need to think much more about them at the new construction phase. Decisions about building materials, insulation, and plumbing live on for decades or longer. That’s why IFC, the private sector-focused arm of the World Bank Group, is working to help builders and developers in emerging markets lock in climate-smart choices at the early design stage.
Our new certification tool EDGE, which stands for Excellence in Design for Greater Efficiencies, was designed specifically for emerging markets, where housing needs are set to grow exponentially as a result of urbanization pressures. It is Internet-based and easy to use, offering developers a range of inexpensive design choices that might otherwise be overlooked in the rush to build.
Buildings certified by EDGE use 20 percent less energy than their peers, offering long-term emissions savings and lower utility bills – a major benefit in affordable housing.
As world leaders convene in Doha for this year’s UN Climate Change Conference developing countries are looking for ways to maintain momentum for change to help them transition to climate-smart growth.
When it comes to delivering improved, cost-effective infrastructure and services – a precondition for green growth – public-private partnerships (PPPs) are one way forward. At a recent event co-sponsored with the United Nations Development Programme (UNDP) in Doha, we shared our unique perspective on public sector efforts to attract and leverage private sector climate finance through PPPs.
Some key takeways from the event include:
- PPPs help tap new money for infrastructure: Since the 2008 financial crisis, governments have limited financial resources to devote to capital expenditures and expanded public services. Involving the private sector offers a solution.
- PPPs boost efficiency through cost savings and shorten delivery periods. They also spur innovation by bringing in private sector know-how.
- PPPs facilitate projects under one umbrella: When it comes to climate initiatives, PPPs can efficiently organize and consolidate the numerous and complex arrangements that make a renewable energy (or any other climate-related) project work.
- PPPs allow for appropriate allocation of supply and risk demand to the private sector, reducing taxpayer costs.
- Since 1989, IFC has been the only multilateral institution providing advice to national and municipal governments on designing and implementing PPP transactions to improve infrastructure and access to basic services such as water, power, agribusiness, transport, health and education.