Project Title

APEC Low-Carbon Model Town (LCMT) Project, Phase 1 

Project Year

2010   

Project Number

EWG 09 2010A 

Project Session

Session 3   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

EWG 09 2010A 

Project Title

APEC Low-Carbon Model Town (LCMT) Project, Phase 1 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency and Low Carbon Measures (EELCM) 

Project Year

2010 

Project Session

Session 3 

APEC Funding

700,000 

Co-funding Amount

111,000 

Total Project Value

811,000 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

Not Applicable / Other 

Other Non-APEC Stakeholders Involved

Not Applicable

Proposing Economy(ies)

Canada; China; Japan; Korea; Chinese Taipei; United States 

Co-Sponsoring Economies

 

Expected Start Date

23/12/2010 

Expected Completion Date

31/12/2011 

Project Proponent Name 1

Ryo MINAMI (M) 

Job Title 1

Director 

Organization 1

International Affairs Division, Agency of Natural Resources and Energy Ministry of Economy, Trade and Industry (METI) 

Postal Address 1

1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8931, JAPAN 

Telephone 1

(+81) 3-3501-0598 

Fax 1

(+81) 3-3595-3056 

Email 1

minami-ryo@meti.go.jp 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Not Applicable 

Project Summary

The Low Carbon Model Town (LCMT) Project, seeks to promote low-carbon technologies in city planning in order to manage rapidly growing energy consumption and greenhouse gas emissions in urban areas of the APEC region. It consists of two activities, namely, i) development of the “Concept of the Low-Carbon Town” and ii) feasibility studies and policy reviews of planned urban development projects (‘Low Carbon Model Towns’) as examples of real-life applications of the concept.

The LCMT is intended to be a multi-year project. Over the next several years, future phases of the LCMT project will select 10-15 planned urban development projects which seek to be Low Carbon Model Towns, and provide feasibility studies and policy reviews of these projects. The feasibility studies will provide useful as guidance to planners of the projects being studied and serve as examples of best practice low-carbon design for planners of potential projects elsewhere in the APEC region. The policy reviews will provide guidance to policymakers on how to encourage low-carbon urban design. At the same time, the “Concept of the Low-Carbon Town” will be further developed building on the feasibility studies and policy reviews that have been conducted.

The first phase of the LCMT Project, covered by this proposal, will develop an initial version of the “Concept of the Low Carbon Town” and provide a feasibility study and policy review of a planned low-carbon urban development in Tianjin, China.

Relevance

Not Applicable

Objectives

As shown in Figure 1 (attached), the APEC region is at a critical point in the development of its cities. Both urbanization and economic growth are taking place rapidly in the APEC region, especially in developing APEC economies. If nothing is done, these rapidly growing cities may develop along the energy-intensive and emission-intensive path common in some of the newer cities of APEC’s industrialized economies. Once built, these new developments will lock their inhabitants into an emission-intensive lifestyle that could endure for decades. On the other hand, with appropriate assistance, these cities could develop into attractive low-carbon communities, similar to Hong Kong and some cities in Japan today. This project seeks to help provide the needed assistance.

The key objectives of the project are;

1) To develop the “Concept of the Low-Carbon Town”, which is intended to be a guidebook to the principles and implementation of low-carbon urban design;

2) To assist in the implementation of the concepts in selected Low Carbon Model Towns by providing feasibility studies and policy reviews of these planned urban development projects;

3) To share best practices and real-world experiences with low-carbon urban design with planners and policymakers throughout the APEC region.

Alignment

This project directly responds to the declaration at the 9th APEC Energy Ministers Meeting (EMM9), held in Fukui, Japan on 19 June 2010, focused on “Low Carbon Paths to Energy Security”. The Ministers noted that “Introduction of low-carbon technologies in city planning to boost energy efficiency and reduce fossil energy use is vital to manage rapidly growing energy consumption in urban areas of APEC. We have therefore launched an “APEC Low-Carbon Model Town (LCMT) Project” to present successful models for coordinated usage of advanced low-carbon technologies.”

Sustainable growth through shifting to low-carbon economies is one of the five attributes of the APEC‘s Growth Strategy adopted by APEC Leaders at their 2010 Yokohama meeting. The LCMT project will be a key building block of this strategy.

TILF/ASF Justification

Not Applicable

Beneficiaries and Outputs

The most obvious beneficiaries of Phase 1 of this project will be the government officials in the Tianjin region and the planners of the Yujiapu CBD, who will gain valuable advice on how to design an attractive and innovative low carbon urban development project. Planners at Tianjin Innovative Finance Investment Co., Ltd, the developer, may use the Feasibility Study as guidance to developing the project according to low-carbon concepts. The Feasibility study could provide specific guidance on the selection of mitigation measures in each building and in each block of the project based on the analysis that will be provided of CO2 reductions and investment costs for each of the measures. The Feasibility Study can also be used as a checklist for what needs to be done in each phase of the project, including planning, design, construction and operation. Local governments, such as Tianjin City, can use this same information to track the implementation of the low-carbon urban development concept. The central government of China may find the information especially useful in promoting low-carbon urban development elsewhere in China.

However, the project is intended to provide guidance to anyone who may be involved in the design of urban development projects, including government officials and planners throughout the APEC region. They will benefit both from the guidebook “Concept of the Low Carbon Town”, and from the example of a Low Carbon Model Town provided by the Yujiapu CBD, including the Feasibility Study and the Assessment Report on policy issues.

The goal of the project is to help promote low carbon urban development concepts throughout the APEC region in order to avoid the greenhouse gas emissions associated with traditional approaches to urban planning. As noted in Question #2 above, once built, traditional development will lock-in an emission-intensive lifestyle that could endure for decades. If the project is successful, the beneficiaries will be essentially everyone in the world who will benefit from the mitigation of climate change, not to mention the residents of the low-carbon cities, who will enjoy lower energy costs and a more pleasant and healthy lifestyle. Business will also benefit through providing advanced low-carbon technologies.

Dissemination

·  The target audience; Policy-makers, government officials, and planners
   responsible for urban planning
·  The number, form and content of any publications (NOTE: Publications that are
  merely a collection of power points slides or presentation will not be funded by
  APEC. APEC encourages electronic publication of project outputs and results, and
  can assist where appropriate with media releases and development of articles);
  100 copies of“Concept of the Low-Carbon Town”, the Feasibility Report of the
  Yujiapu CBD combined with the Assessment Report on policy issues. All these
  reports will be published on the APEC and APERC websites.

·  Any intention to sell outputs arising from this project: No.

Gender

The participation of women in all stages of this project is welcomed, with a number of women participating in the first meeting of the LCMT Project Task Force on 13 July 2010 in Tokyo. Women will continue to be encouraged to participate in all aspects of this project from design to implementation.

It is worth noting that women in traditionally designed cities are dependent on automobile transportation, and are often required to spend many hours a week chauffeuring children to various activities. Better city design would put many activities for children within a short distance of home. Walking to children’s activities would be healthier for mothers accompanying small children, while older children could walk, bicycle, or use public transportation on their own. Women with children, especially single mothers, are also more likely to live in poverty than men, and therefore likely to benefit more from the lower energy costs that low-carbon urban planning would bring.

Both men and women should benefit more or less equally from the mitigation of climate change and the more pleasant urban lifestyles that large-scale adoption of low carbon city planning would bring. We know of no disadvantages that low-carbon city planning would have for women.

Work Plan

Figure 2 (attached) illustrates the overall scheme of the project and the parties involved. It is important to note that the activity to the left of the dotted line, “Study Group (A): Development of the ‘Concept of the Low-Carbon Town’” is an ongoing activity that will continually be refined over the multi-year life of the project. The activities to the right of the dotted line will be repeated for each selected Low Carbon Model Town.

LCMT Task Force (TF), which was established in response to the Energy Minister’s instructions in their Fukui Declaration, is the key advisory body for the project. The first TF meeting was held in July 2010 in Tokyo, Japan with participants from Japan, Canada, China, Korea, Singapore, Chinese Taipei and USA. These economies are the TF members at present, but other economies who wish to participate may join as well. The TF will report its activities to the APEC Energy Working Group (EWG) and will generally meet in conjunction with EWG meetings. The TF may explore collaboration with other APEC fora including the Transportation (TPT) Working Group, the Telecommunications and Information (TEL) Working Group, and the Industrial Science and Technology (IST) Working Group, as appropriate.

There are a number of planned or on-going low-carbon urban development projects in the APEC region; these projects vary in size and design approach according to their individual circumstances. Economies planning low-carbon urban development projects include Singapore, Malaysia, Thailand, Chinese Taipei, Korea, and the USA. Although the Yujiapu CBD (Central Business District) project in Tianjin, China has already been selected as the Low Carbon Model Town for Phase 1 of the LCMT Project, these other urban development projects are candidates to be selected as Low Carbon Model Towns in future stages of the LCMT Project. The TF will be involved in the decision as to which low-carbon urban development projects are selected.

i) Development of“Concept of the Low-Carbon Town”

The work to develop “Concept of the Low-Carbon Town” will be carried out by a Study Group (Study Group A) as a task-shared activity, in which interested member economies/experts may participate. An active involvement in this activity by as many APEC economies as possible, especially developing economies, will be encouraged. The Asia-Pacific Energy Research Centre (APERC) will coordinate the work of the Study Group A under the direction of the Agency for Natural Resources and Energy, METI Japan (Project Overseer).

A short outline for the “Concept of the Low-Carbon Town” summarized in Figure 3 (attached) which explores the effective planning, development and operation of a Low-Carbon Town, has been developed through a self-funded preparatory study by Japan. Study Group A will further flesh out the concept into a useful guidebook for planners who wish to implement low-carbon urban design. The book is expected to encourage adoption of low-carbon design in urban development plans. Study Group A should also consider the most efficient and effective ways of sharing best practices and outcomes of this project so as to make more Low-Carbon Towns a reality in the APEC region.

The Study Group will proceed according to the following steps.

Step 1: Study Group A will be formed by the experts from interested member
           economies and relevant APEC Expert Groups under the coordination of
           APERC.

Step 2: Study Group A will review the short outline for the “Concept of the Low
           -Carbon Town”, which has been developed through the preparatory study by
           Japan.

Step 3: Study Group A may visit several planned or on-going low-carbon urban
           development projects in the APEC region, and further develop the Concept
           through studying best practices being implemented in those projects and
           elsewhere.

Step 4: Study Group A reports preliminary findings to the TF for their advice.

Step 5: Study Group A will develop the outline into a complete draft report for the
           guidance of planners in the APEC region.

Step 6: The draft report will be circulated to the EWG for their review and comments.

ii) Feasibility Study

The Feasibility Study of the Low Carbon Model Town will be conducted by a qualified urban planning consultant. Figure 4 (attached) illustrates the process of the Feasibility Study. Based on the draft Concept of the Low Carbon Town, the consultant will develop a Low-Carbon Development (LCD) Strategy specific to the selected urban development project. The consultant will then analyze the CO2 emission savings from the strategy and its costs.

In developing the LCD Strategy, the consultant will start by describing a high-level vision of how the specific urban development could best be made a model of low-carbon urban design, as shown in Figure 5 (attached). This should include specific targets for CO2 emissions, and perhaps other measures of environmental sustainability. The consultant will then provide guidelines for how these targets might be achieved.

Figure 6 (attached) illustrates examples of concrete measures the consultant may propose. The consultant will be expected to identify appropriate design measures which might be incorporated into the Low Carbon Model Town and guidelines for incorporating them into the project plan.

As shown in Figure 7 (attached), for each measure, the consultant will be expected to analyze the effects of their proposed guidelines in terms of both CO2 emission savings and costs. The consultant should then be able to summarize the overall CO2 emission savings and costs of the measures, assuming the strategy is implemented.

iii) Policy Review

While the Feasibility Study focuses on technical issues, a second Study Group (Study Group B) will be formed to provide an assessment of policy issues. As with Study Group A, this will be a task-shared activity, in which interested member economies/experts may participate. Study Group B will assess policy issues such as:

· What kinds of regulatory schemes are appropriate for land use, energy use, water
  quality, air quality, etc.?

· How should government be best organized for the town/city/region to promote low
  -carbon development?

· What kinds of economic incentives can be used?

· What kind of infrastructure investment is most suited?

The assessment should be project-specific, taking into account the economy’s governmental, legal, and regulatory structure; geography, financial resources, etc. Study Group B should work with the consultants who are doing on the Feasibility Study to identify potential barriers to implementation of the consultant’s Low Carbon Development Strategy, and consider policies that might overcome them.

Study Group B will proceed according to the following steps:

Step 1: Study Group B will be formed by the experts from interested member
           economies and relevant APEC expert groups under the coordination by
           APERC;

Step 2: Study Group B will visit the selected real-life city/town/district development
           project for a peer review of low-carbon urban development policies; the
           group will meet with both local stakeholders and the consultants who are
           doing the Feasibility Study;

Step 3: Study Group B will prepare a draft Assessment Report of their findings,
           including recommended policy improvements;

Step 4: The draft Assessment Report will be presented to the TF for their
           consideration;

Step 5: The Assessment Report, including recommended policy improvements, will
           be presented to the developer of the Low Carbon Model Town as well as to
           economy and local government authorities for their consideration.

iv) Phase 1 Specifics

In the LCMT Project Phase 1, the Yujiapu CBD (Central Business District) project in Tianjin, China was selected as the first Low Carbon Model Town, as jointly proposal by Japan and China at the EMM9. Figure 8 (attached) summarizes the key facts about the project. The YUJIAPU Central Business District is located on the east coast of northern China and is about 40 km east of Tianjin City Center. The district consists of 120 blocks and is expected to be a business center for finance and insurance in China. Not only offices, but also hotels, residences, and commercial facilities will be located in the district. The project is already being undertaken by Tianjin Innovative Finance Investment Co., Ltd with the strong support from Tianjin local government. The expected project development period is from 2010 to 2020.

Taking into account of the recent rapid urbanization in APEC economies, it is appropriate to select a high density CBD project as the first example of a Low-Carbon Model Town under the APEC LCMT project. It also matches the following the Criteria for the LCMT project made by the TF.

· The development project is coordinated or supervised by relevant government authority of the APEC member economy. It is ideal if the development project is in cooperation with other member economies.

· The responsible entity for the development project is identified, and the project is already on-going or has been committed or being implemented.

· A development project implementation plan has been developed. The plan should include major items, such as land use plan, transportation plan, energy plan, environment plan and area management plan.

· The organization and people responsible for the development project have been identified, and are committed to provide the necessary information for the purpose of assessments and recommendations.

Figure 9 (attached) shows the proposed schedule of feasibility study for the Yujiapu CBD project.

Risks

The key risks of this project are:

a) The reports and recommendations of the project are low in quality or otherwise ineffective. APERC, as an executant of this project, will avoid this risk by selecting a qualified consultant who not only has low-carbon building and urban design experience, but also has a deep understanding of the selected project (see paragraph 8 for waivers of bidding requirements). APERC will also work to recruit qualified experts from member economies to participate in the Study Groups and Feasibility Study in order to provide their unique experiences and perspectives.

b) Necessary energy related data to conduct an assessment is lacking. APERC will avoid this risk by subcontracting with local institutes to collect the necessary energy data for analysis.

c) The selected real-life project gets delayed or cancelled, and therefore it fails to become a successful Low Carbon Model Town. TF, in consultation with the project overseer, will select the model projects which are supported by relevant government authorities and for which financing is likely to be available.

The output of the project will be the LCMT Project Report, which will incorporate the Study Group A report on the “Concept of the Low-Carbon Town”, the consultants “Feasibility Study”, and Study Group B Assessment Report on policy issues.

Monitoring and Evaluation

Not Applicable

Linkages

As discussed under Question 2 above, the APEC region is at a critical point in the development of its cities. APEC is the only forum where leaders, ministers and working level government officials in the Asia-Pacific region share knowledge and coordinate activities on a broad range of issues related to economic growth and sustainability. As such, it is the most appropriate forum to be studying the many issues involved in implementing low-carbon towns, and is the most appropriate forum to be promoting implementation of the findings.

This project builds on a number of studies and research projects that have been conducted by EWG and relevant experts groups on energy efficiency and renewable energy technologies as well as the policies, programs, best practices, strategies and business models to promote these technologies. These studies and research projects have been conducted individually on specific themes. However, in this project, a holistic approach needs to be followed, which involves consideration of both energy efficiency and renewable energy, which covers residential, commercial and transportation sectors, and which encompasses not only energy policy but also policies on land use and ecology.

Sustainability

The intention of this Low Carbon Model Town Project is, as the name suggests, to provide real-life model towns that will be viewed as good examples of low-carbon urban planning. These towns will last for many decades, and they will be open for anyone to see. The towns themselves are, therefore, likely to be the most enduring legacy of this project. If these towns are successful, they will attract the attention of urban planners and policymakers throughout the world, who will visit them, hear about them from each other, and read about them in professional and popular publications.

These people will naturally want to replicate the success of the Low Carbon Model Towns in their own communities, and so the concept will spread. In this event, the reports produced by the project—the guidebook “Concept of the Low Carbon Town”, the Feasibility Studies, and the Assessment Report on policy issues—will be available to provide guidance on how it is done. Everyone involved with the project, including the experts from many economies who served on the Study Groups and in the Feasibility Study, are potentially available to assist with further efforts.

Project Overseers

The main points of contact responsible for this project are as follows.

Ms. Reiko Eda of METI, in charge of general supervision;

Mr. Satoshi Nakanishi of APERC, in charge of project coordination;

Dr. Shinji Yamamura of Nikken Sekkei Research Institute (NSRI), in charge of the Yujiapu CBD Feasibility Study;

Mr. Iwao Hasegawa of NS., in charge of Yujiapu CBD general planning

Cost Efficiency

In the past, a number of studies and research projects have been conducted by EWG on energy efficiency and renewable energy technologies as well as the policies to promote them. These have helped provide APEC policy makers with an understanding of the range of proven options for energy efficiency and renewable energy in various sectors. This project, however, offers maximum value to APEC through providing practical assessment of real-life urban development projects underway in the APEC region, as well as developing the “Concept of the Low-Carbon Town”. These activities directly facilitate the reduction of energy consumption and CO2 emissions.

To maximize the cost-efficient use of resources, the project will seek to involve the experts who were engaged in the past EWG projects mentioned above. These experts from member economies will be requested to provide input from diversified perspectives, drawing on the results of previous studies and research projects.

APERC will be monitoring the progress of the project on a regular basis, and will take appropriate action in the event that progress is not satisfactory. The TF will also be monitoring the overall progress of the project and can recommend appropriate changes to the project plan if results are not of the expected quality.

Over the longer term, as Low Carbon Model Towns are implemented, APERC will monitor the media and seek feedback from urban planning professionals on how the lessons of the Low Carbon Model Towns are being applied in other cities. Such applications of the concepts would be strong evidence that the project has been successful.

Of course, urban development projects usually take many years to implement, so actual application of the concepts in other cities will take some time. However, even over the shorter-term, it should be possible to gauge interest in the concept through references in the media, at urban planning conferences, and in initial proposals for application of the concepts.

Drawdown Timetable

Not Applicable

Direct Labour

Not Applicable

Waivers

Since this Phase 1 of the LCMT Project is to be the pilot for other projects to follow, it is vital to select a qualified consultant with an ability to deliver the desired outcomes. It is essential that the consultant not only be able to deliver high quality low-carbon building and urban design capability, but is also able to have the full cooperation of the developing authority. Furthermore, a deep understanding of the proposed project and access to the needed data and information for the Feasibility Study are also required.

The consultant who meets these criteria is Nikken Sekkei Co., Ltd (NS). NS has already laid the ground work for getting approval from the Tianjin Innovative Finance Investment, the developer for the YUJIAPU Development Project, and the Tianjin City Government to propose the YUJIAPU Development Project as the first LCMT Project. Annex A is the Memorandum of Understanding between NS and Tianjin Innovative Finance Investment Company, Ltd., demonstrating the developer’s willingness to work with NS on this project. We are not confident the developer would be willing to work with another consultant on this project and, even if they were, we think it unlikely that another consultant would get the same level of cooperation and confidence from both the developer and Tianjin local government as NS will be able to obtain. There would also likely be extra delay and costs required for the new consultant to gain a deep understanding of the project.

Furthermore, NS has developed its own internationally unique modeling system for conducting comprehensive and detailed simulations of energy-saving measures (see Annex B). These include energy efficiency improvements for different building types (such as office, commercial and residential buildings), area energy systems such as District Heating and Cooling Systems, and technologies for the utilization of untapped energy supplies.

In Phase 1 of the Low-Carbon Model Town Project, it is essential that the consultant to be able to propose various concrete measures for CO2 reduction and precisely analyze the expected mitigation effects in introducing these measures in this very large targeted development district under very tight time constrains.

For these reasons, designating NS as the consultant for the Feasibility Study is critical to the timely implementation of this first LCMT project. In this regards, a waiver of bidding requirements is requested. Also, the request for initiation of this project from January 2011 to synchronize with the progress of the proposed urban development project is also requested.

NS is one of the largest and most prominent architectural design firms in the world. For example, the British architectural magazine “Building Design” publishes a world ranking of architectural design firms in its January issue every year, and the Nikken Sekkei was rated as the world’s top architecture practice in 2010. Nikken Sekkei also ranked first in two of the five key categories, namely, urban design and architectural services (See Annex C)

Since its inception in 1900, NS has been involved in over 20,000 projects in 40 countries. In recent years, it has been devoted to environmentally friendly and energy efficient building, block, and city development projects. Annex D shows brief introduction and qualification of NS with some typical examples of architectural and urban development and low-carbon consulting projects. Although there are many firms that would be capable of proposing mitigation measures for specific aspects of this project, such as urban planning, building design, transportation planning, and energy infrastructure, there are very few that could match Nikken Sekkei’s capabilities to address all of these aspects in an integrated fashion.

Are there any supporting document attached?

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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

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