MUNIC ICIPAL FIN INANCE IN INNOVATIONS Ses ession 4: : Envi - - PowerPoint PPT Presentation

MUNIC ICIPAL FIN INANCE IN INNOVATIONS

Ses ession 4: : Envi vironmental Externalit ity Fin inancing November 15 – 16, , 2018

Aar arsi i Sag Sagar, , Gr Gree een Cit Citie ies Ana naly lyst, t, Gl Global l Gr Green Gr Growth Ins Insti titute

GGGI’s Mission

“To help developing country governments transition towards a model of economic growth that is environmentally sustainable and socially inclusive.”

UAE Qatar Peru Paraguay Norway Denmark United Kingdom Australia Republic of Korea Headquarters China Guyana Papua New Guinea Thailand Fiji Hungary Mexico Senegal Morocco Rwanda Vanuatu Kiribati Philippines Uganda Ethiopia Indonesia Colombia Costa Rica Mozambique Myanmar Lao PDR Jordan Nepal India Vietnam Cambodia Mongolia

Headquartered in Seoul, Republic of Korea, GGGI has 30 members with

• perations in

30 countries

Operatio ions

Burkina Faso, Cambodia, China, Colombia, Costa Rica, Ethiopia, Fiji, Guyana, Hungary, India, Indonesia, Jordan, Kiribati, Lao PDR, Mexico, Mongolia, Morocco, Mozambique, Myanmar, Nepal, Papua New Guinea, Peru, Philippines, Rwanda, Senegal, Thailand, Uganda, United Arab Emirates, Vanuatu, Viet Nam

Member Co Countrie ies

Australia, Burkina Faso, Cambodia, Costa Rica, Denmark, Ethiopia, Fiji, Guyana, Hungary, Indonesia, Jordan, Kiribati, Republic of Korea, Lao PDR, Mexico, Mongolia, Norway, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Rwanda, Senegal, Thailand, Tonga, United Arab Emirates, United Kingdom, Vanuatu, Viet Nam

GGGI at a Glance

Burkina Faso

GGGI Value Chain & Thematic Sectors

Development, economic growth and sustainability diagnosis Sectoral green impact assessment and prioritization Macro economic impact assessment Policy and institutions analysis Analysis of costs and investment requirements Development of sectoral/sub- sectoral investment plans and selection Design: Project and policy preparation Financing: Identification of possible financial structure Implementation

DI DIAGNOSIS GRE GREEN IMP MPACT T ASS ASSESSMENT SE SECT CTOR/S /SUB-SECTOR STRA TRATEGY & & PLA LANNING DE DESI SIGN, FIN FINANCING & & IMP MPLEMENTATI TION

Water er & Sanit itation Sustainable Ener ergy Green Citie Cities Sustainable La Landscapes

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Appli lication of f envir ironmental taxes s that can facil ilitate urb rban develo lopment AND Contrib ibute to lo local l tax revenues If If so so, how?

Environmental Externalities

• Externalities = behavioral change?
• Degraded air quality = health impacts = Monetary Value
• Degraded water quality = health impacts & damaged ecosystems = Monetary

value

• Health impacts = Loss in productivity/ quality of life
• At macro level: loss in productivity/ loss in GDP & loss of ecosystems
• At micro level: human health & ecosystems

Desig igning Green Cit ities: : Key Transformations

Water resource management

Acce Access to

• cl

clean water r and and san anit itatio ion

The way people move and connect

Co Conn nnected & & walk alkable le/ / no non n mo motor

• riz

ized citie ties

Balancing expansion & inclusive growth

Pro-poor r and and inc nclu lusiv ive citie ies

The way cities manage and account their assets

Create ‘bankable’ citie ties to

• attr

tract gr gree een fi fina nance

The way we plan

To

• ac

achieve smart rt, gr gree een & & sus ustain inable le citie ies

The way buildings are designed &

• perated

For

• r a

a res esource effic ficie ient t & & low w car arbon built built en envir ironment

The energy produced & consumed

Ac Access to

• rene

enewable le ene energy & & effic ficie iency

Waste to resources

Imp mprove the the was aste/ reso esource loo

• op

Example: ECAL in in Fij iji

1. 1.

LI LICE CENSED HO HOTE TELS

ACCOMMODATION, REFRESHMENTS AND ANY OTHER SERVICES

2. 2.

TOU OURIST T VE VESSELS LS OP OPERATI TING G WITH THIN FIJ FIJI WATE TERS

ACCOMMODATION, REFRESHMENTS AND ANY OTHER SERVICES PROVIDED ON BOARD

3. 3.

LI LICE CENSED BAR ARS

MEALS, BEVERAGES AND ANY OTHER SERVICES PROVIDED IN A LICENSED BAR, INCLUDING PRIVATE CLUBS

4. 4.

LI LICE CENSED NI NIGH GHTCLUB

• EG. MUSIC DANCING OR OTHER ENTERTAINMENT SERVICES

5. 5.

INB NBOUND TOU OUR OP OPERATORS

TRAVEL TOUR AND SIGHT SEEING SERVICES

6. 6.

ENT ENTERTAINMENT T PROGRAMS/ S/ PRODUCT CT EXH EXHIBITIONS S OR ORGANIZERS

ENTRY FEES TO THE EVENTS VENUE

7. 7.

RE RECREATI TIONAL ACTIVI TIVITY TY OP OPERATORS

RECREATIONAL ACTIVITIES PROVIDED BY SUCH OPERATORS

8. 8.

CIN CINEMA OP OPERATORS

ENTRY FEES & ALL SERVICES PROVIDED WITHIN THE PREMISES

9. 9.

LI LICE CENSED REN RENTAL/H /HIRE CAR CAR OP OPERATORS

HIRING RENTAL CARS

10. 10.

BIS BISTR TROS S AN AND COFF OFFEE SH SHOP OPS

MEALS & BEVERAGES

11. 11.

LI LICE CENSED RE RESTAURANTS

MEALS & BEVERAGES

12. 12.

AI AIRCRAFT FT OP OPERATORS

LIMITED CHARTER FLIGHT SERVICES

13. 13.

WATE TER SPO SPORTS S OP OPERATORS

ALL WATER SPORTS

14. 14.

HOM HOME STAY Y OP OPERATORS

ALL SERVICES PROVIDED TO PAYING GUESTS

15. 15.

UNLIC NLICENSED SE SERVICE OP OPERATORS

UNLICENSED REGISTERED SERVICE PROVIDER

Source: e: https:// ://www.frcs.org.fj/ j/our- services/t /taxat ation

• n/bu

busine ness/ s/env nviron

• nment

ntal-lev evy/

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Chall llenges/ Potentia ial ri risks of f ext xtern rnalit ity fi financin ing

Challenges/ Risks

Col Collection rates are lo low Ho How to

• valu

lue an externality? De Devolution of

• f power –

allo llow municipalities auth thority to

• tax

Rais ise awareness on

• n

externalities Proper reg egula latory ry mec echanisms nee eeded Ho How wou

• uld sec

econdary ry cit cities cop

• pe? Should be

e lim limited to

• la

larger cit cities? Ho How to

• effi

ficiently use e th the e revenues? Are som

• me ext

xternalities ea easier to

• valu

lue th than

• th
• thers?

Th Thank You

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Aarsi Sagar Green Cities Analyst Email: aarsi.sagar@gggi.org