POST TRAVEL REPORT - LARGE CITIES CLIMATE SUMMIT, NEW YORK, MAY 2007

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1 Page 1 of 11 COUNCIL REPORT Agenda Item 6.2 POST TRAVEL REPORT - LARGE CITIES CLIMATE SUMMIT, NEW YORK, MAY June 2007 Presenter Lord Mayor Purpose 1. To report to Council on the outcomes of my travel to New York to participate in the second Large Cities Climate Summit held in New York on May Recommendation 2. That Council receive this report. Key Issues Details of Travel 3. At the invitation of the Mayor of New York City, Michael Bloomberg, I travelled to New York to attend the second C40 Large Cities Climate Summit hosted by the City of New York in association with the Large Cities Climate Leadership Group, The Partnership for New York City, the Clinton Foundation, the Climate Group, the Rockefeller Brothers Fund and the International Council for Local Environmental Initiatives (ICLEI). 4. The C40 Large Cities Climate Leadership Group (C40) is a group of cities committed to the reduction of urban carbon emissions and adapting to climate change. The City of Melbourne is a member. It was founded following the World Cities Leadership Climate Change Summit organised by the Mayor of London in October In August 2006 the Group signed a memorandum of understanding with the William J. Clinton Foundation's Climate Initiative, under which the Clinton Foundation provides technical and communications support to the C40 cities. Earlier this year the City of Sydney joined the group and the Lord Mayor of Sydney also attended the Summit. Melbourne and Sydney are the only Australian participants. 5. A list of the Mayors and cities that attended the Summit is at Attachment 1 and images of my activities at Attachment Mayor Bloomberg invited me and the other Mayors attending to bring with me up to two CEO s of Melbourne companies that are engaged in mitigating the effects of climate change. Mr Anthony Pratt who heads Pratt Industries in the United and Mr John McFarlane, CEO of the ANZ Bank joined me at the Summit. Mr McFarlane was only able to attend the opening event but Mr Pratt attended the whole Summit and spoke in a panel session on recycling and reducing waste in cities. Council s Director Sustainability also attended the Summit with me. 7. Details of the Summit can be found at the following websites: ; and 8. Two of Council s projects are featured among the 36 case studies included in the Summit website. These are the Queen Victoria Market solar array and CH2.

2 Page 2 of The Summit was designed specifically for Mayors and business leaders to present their climate change action initiatives in relation to transport, energy, water, job creation, buildings, communication, alternative fuels, waste, risks and economics. It also provided the opportunity for the Clinton Climate Initiative representatives to negotiate and develop its agenda of projects with the C40 group. 10. I addressed the Summit in a Panel Session on the first day (see attachment 3) together with the Mayors of Austin and Houston and a senior Executive of Alcoa. The Panel session was called Buildings; Creating Green Skylines. The panel discussion, has been recorded as a webcast which can be accessed at: In my opening remarks I addressed Melbourne s approach to facilitating the development of green office buildings in our city; the value of CH2 as a flagship and the success of combining market information with performance-based planning controls. The Mayor of Austin (Will Wynn) advised that he had introduced mandatory disclosure of historical electricity bills and a requirement to upgrade energy efficiency, to a maximum of $5000, at the point of sale of all residential property. The Mayor of Houston (Bill White) described how his city provides a low-cost energy retrofitting service for whole neighbourhoods of existing housing of years old. Dr Mohammad Zaidi of Alcoa referred to the company s first carbon capture installation that it has created in Western Australia and the company s determination to remove carbon emissions from the aluminium manufacturing process and develop smart use of aluminium in lightweight vehicles and active (energy generating) building facades. 12. At the invitation of the Summit organisers, I also was the guest at a business breakfast for senior representatives of the companies that sponsored the Summit: Alcoa, Shell, JPMorganChase, Deutsche Bank, Siemens and TimeWarner. This gave me the opportunity to promote Melbourne as a business and investment location. 13. One of the purposes of the Summit was to demonstrate to the world, through international media, that cities care about addressing climate change issues and are actively doing so. I participated in three press conferences during the three days of the summit and gave interviews to Swiss, UK, USA and Australian media representatives. 14. The other major purpose of the Summit was to unveil the first project of the Clinton Climate Initiative with the C40 group. The first project, already reported to Council s Environment Committee on 5 June 2007 is the US$5 billion Energy Efficiency Building Retrofit Program. The project was announced by President Clinton, flanked by the Mayors of London and New York, at a major press conference which I attended along with the Mayors of the participating cities and representatives of the companies involved. A copy of the Press release is at Attachment The Director of the Clinton Foundation later announced the Foundation s intention to develop other and similar programs to make it cheaper and easier for cities to reduce greenhouse gas emissions associated with solid waste management, transport, street lighting, water recycling, renewable energy and distributed energy systems, ports and airports. 16. The Summit Communiqué is at Attachment 5 and it was announced that the host of the next Summit, in two years time, will be the City of Seoul (also a partner with Melbourne in the Business Partners City network). It is my view that the relationship that the City of Melbourne has formed with the C40 Cities and the Clinton Climate Initiative is highly valuable to Melbourne for strategic and investment purposes and should be actively fostered in the interests of the Melbourne community.

3 Page 3 of 11 Outcomes in relation to Council Policy 17. Participation in the Summit has a strategic fit with Council Policy. As identified in the Council Plan under the theme of Environmentally Responsible City, Council seeks to, amongst other strategies: Reduce greenhouse gas emissions, promote renewable energy and maintain air quality in the City of Melbourne; Demonstrate and encourage leadership in Sustainability. 18. The visit provided an opportunity to present Melbourne s achievements against these objectives, build Melbourne s international reputation as a progressive city, to learn from the achievements of others and to enable Melbourne to participate in the projects developed by the Clinton Climate Initiative. 19. The Clinton Climate Initiative and, through it the C40 group, also provides a platform to promote local technology to the substantial world market represented by the participating cities. The Active Reactor lighting technology (that Council is trialling in Collins Street this year) and the UR-3R waste treatment systems developed by Global Renewables Pty Ltd have already been referred to the Clinton Climate Initiative. 20. The visit also provided me with an opportunity to meet again with the Chief Minister of Delhi, the next host of the Commonwealth Games after Melbourne and to confirm her continuing interest in building on-going relations between our two cities. Estimated Cost 21. For the Lord Mayor, the cost to Council of the travel was AU$ 11, For the Director Sustainability, the cost to Council of the travel was AU$ 12,019.

4 Page 4 of 11 Attachment 1 C40 Large Cities Climate Summit 2007 Attendees City Addis Ababa, Ethiopia Albuquerque, United Austin, United Bangkok, Thailand Berlin, Germany Bogotá, Colombia Chicago, United Copenhagen, Denmark Curitiba, Brazil Delhi, India Houston, United Indianapolis, United Istanbul, Turkey Johannesburg, South Africa Lima, Peru London, United Kingdom Los Angeles, United Melbourne, Australia Mexico City, Mexico Mayor/Governor Mayor Berhane Deressa Mayor Martin Chavez Mayor Will Wynn Governor Apirak Kosayodhin Mayor Klaus Wowereit Mayor Luis Eduardo Garzon Mayor Richard M. Daley Lord Mayor Ritt Bjerregaard Mayor Beto Richa Chief Minister Shiela Dikshit Mayor Bill White Mayor Bart Peterson Mayor Kadir Topbas Mayor Amos Masondo Mayor Oscar Castaneda Lossio Mayor Ken Livingstone Mayor Antonio Villaragoisa Lord Mayor John So Mayor Marcelo Ebrard Casaubon Mumbai, India Mayor Shubha Umesh Raul New Orleans, United Mayor Ray C. Nagin New York, United Mayor Michael R. Bloomberg Philadelphia, United Mayor John Street Rio de Janeiro, Brazil Mayor Cesar Maia Rotterdam, Netherlands Mayor Ivo Opstelten Salt Lake City, United Mayor Rocky Anderson Sao Paulo, Brazil Seoul, South Korea Sydney, Australia Trenton, United Tokyo, Japan Toronto, Canada Mayor Gilberto Kassab Mayor Oh Se-hoon Lord Mayor Clover Moore Mayor Douglas Palmer Governor Shintaro Ishihara Mayor David Miller Other City Delegations Barcelona, Spain Beijing, China Cairo, Egypt Dhaka, Bangladesh Jakarta, Indonesia Karachi, Pakistan Lagos, Nigerian Madrid, Spain Paris, France Portland, United Rome, Italy Moscow, Russia San Francsico, United Seattle, United Shanghai, China Singapore Stockholm, Sweden Warsaw, Poland

5 Page 5 of 11 Attachment 2 Images of the C40 Large Cities Climate Summit

6 Page 6 of 11 Attachment 3 Press release Day 1 FOR IMMEDIATE RELEASE New York, New York May 15, 2007 LAUNCH OF C40 LARGE CITIES CLIMATE SUMMIT FEATURES MAYORAL PANELS ON TRANSPORT, WATER & ENERGY ALONG WITH KEYNOTE LUNCHEON ADDRESS BY MAYOR MICHAEL BLOOMBERG Calls to action include discussions on encouraging large-scale behavioral change and promoting exchanges of information on technological upgrades that can be implemented quickly to save natural resources. On the first day of the historic conference bringing together leaders of the world s largest and most innovative cities with international business leaders, environmental experts and representatives of major urban utilities, wide-ranging panel discussions were held on promoting environmentally responsible transport, water and energy, among other subjects. At his keynote luncheon address, Mayor Michael Bloomberg lauded the strong, cooperative atmosphere of this historic climate change summit. The Mayor also reiterated his administration s goal of a 30% reduction in New York City s global warming emissions by 2030, and outlined a major conservation plan for New York City to achieve this objective based on three main elements: fostering the use of cleaner burning heating fuels, a process which would include offering incentives; replacing old, heavily polluting power plants with newer, more efficient generators; and, finally, decreasing transportation-related CO2 emissions, by reducing vehicle traffic through strategies such as congestion pricing. The Transport panel discussion opened with remarks by Kathryn S. Wylde, President & CEO of Partnership for New York City, on the challenge facing all large city leaders to simultaneously beat congestion and survive the next election. Ken Livingstone, Mayor of London discussed London s successful implementation of a congestion charge. Mayor Livingstone described how the initial proposal for a congestion change came from a consortium of London business interests that calculated the cost of congestion in terms of London s productivity and competitiveness at two billion pounds annually. Although press coverage of the congestion charge before it was adopted was overwhelmingly negative, the positive results of the charge were immediate and applauded by most Londoners. In one year, the congestion charge has brought about a 38% drop in private cars entering London twice the anticipated figure. There has also been a more than 80% increase in cyclists and a rise in bus passengers from four million to six million. This modal shift has been accompanied by substantial emissions reductions, including a 20% reduction in carbon emissions. Mayor Livingstone was able to reassure leaders concerned with the effect that making such changes would have on their electability that his own poll ratings jumped 12% within one week of adopting the congestion charge. Panelist Beto Richa, Mayor of Curitiba, Brazil, pointed out that the battle for the world s climate would, in fact, be fought in the major metropolises represented at the summit, since those cities are home to the majority of the world s population. He noted that, in coming up with solutions to the problem of transport congestion, cities need to look for integrated solutions that addressed multiple problems associated with climate change simultaneously. In Curitiba, Mayor Richa is developing green lines, consisting of roadway arteries in which all traffic is fuel-efficient and bordered by plantings that both combat carbon emissions and increase biodiversity. Mayor Richa also argued that in expanding urban mass-transportation systems fair prices compatible with user s wallets had to be maintained. Quality of life concerns and standards of sustainability, must be linked, he stated.

7 Page 7 of 11 At the panel discussion on water, Shintaro Ishihara, Governor of Tokyo outlined some of the signature infrastructural upgrades that have been made in recent years in Tokyo to conserve water. Among these, a long-term pipe replacement program that has included broad introduction of flexible stainless steel piping has dramatically reduced water leakage, while also safeguarding against potential damage from earthquake and other natural disasters. In the course of discussing the search for alternative sources of water, Clover Moore, Lord Mayor of Sydney, called into question the efficacy of desalination plants (pointing to the fact that the costs of running such plants currently tend to outweigh their environmental benefits), and called for a renewed dedication to promoting behavioral change as the only long-term solution to the problem. Most people in Sydney realize that we have to change the way we live change our ecological footprint, she said. The primacy of recycling in conserving water was endorsed by many city leaders along with an appeal to broaden the commitment to, and opportunities for, recycling across the globe. Separately, changes in water pricing were presented as one means to foster an understanding that everyone must work together to conserve water. Amos Masondo, Mayor of Johannesburg, advocated for large-scale education programs to enhance public awareness of why water needs to be understood as a public good for which all citizens are responsible. Other municipal representatives and environmental experts commented on the substantial reductions in water consumption that could be generated by widespread use of relatively simple and affordable technology, such as low-flow toilets and showerheads. In the afternoon, Lord Michael Hastings of KPMG LLP moderated a Plenary session called "The Business of Climate Change: Job Creation and Development" which focused on climate-friendly economic development strategies for cities. Panelists included Oh Se-Hoon, Mayor of Seoul; Gilberto Kasab, Mayor of Sao Paolo; Lorraine Bolsinger, Vice President of Ecomagination at GE; and Kevin Parker, Head of Global Asset Management at Deutsche Bank. The final session of the day was a panel discussion called "Creating Green Skylines" which addressed how cities can provide incentives for high performance building in new and existing residential and commercial construction. Panelists included John So, Lord Mayor of Melbourne, Mayor Will Wynn of Austin, Houston Mayor Bill White, and Mohammad Zaidi, Executive Vice President of Market Strategy, Technology, and Quality at Alcoa. Rohit Aggarwala, Director of the NYC Mayor's Office of Long-Term Planning and Sustainability moderated the discussion.

8 Page 8 of 11 Attachment 4 News President Clinton announces landmark program to reduce energy use in buildings worldwide May 16, 2007 Four Multinational Corporations, Five Global Banks, and Fifteen Cities Partner with the Clinton Foundation to Retrofit Buildings and Reduce Carbon Emissions. New York, NY Former President Bill Clinton today announced the creation of a global Energy Efficiency Building Retrofit Program, a project of the Clinton Climate Initiative (CCI). This program brings together four of the world's largest energy service companies (ESCOs), five of the world's largest banks, and fifteen of the world's largest cities in a landmark program designed to reduce energy consumption in existing buildings. "Climate change is a global problem that requires local action," said President Clinton. "The businesses, banks and cities partnering with my foundation are addressing the issue of global warming because it's the right thing to do, but also because it's good for their bottom line. They're going to save money, make money, create jobs and have a tremendous collective impact on climate change all at once. I'm proud of them for showing leadership on the critical issue of climate change and I thank them for their commitment to this new initiative." Urban areas are responsible for approximately 75 percent of all energy use and greenhouse gas emissions in the world. Buildings account for nearly 40 percent of global greenhouse gas emissions, and in cities such as New York and London this figure is close to 70 percent. The Energy Efficiency Building Retrofit Program will provide both cities and their private building owners with access to the necessary funds to retrofit existing buildings with more energy efficient products, typically leading to energy savings between 20 to 50 percent. Honeywell, Johnson Controls, Inc, Siemens and Trane will conduct energy audits, perform building retrofits, and guarantee the energy savings of the retrofit projects. ABN AMRO, Citi, Deutsche Bank, JPMorgan Chase, and UBS have committed to arrange $1 billion each to finance cities and private building owners to undertake these retrofits at no net cost, doubling the global market for energy retrofit in buildings. These banks will work alongside energy efficiency finance specialist Hannon Armstrong and CCI to develop effective mechanisms to deploy this capital globally. Cities and building owners will pay back the loans plus interest with the energy savings generated by the reduced energy costs thanks to the building retrofits. An initial group of fifteen of the world's largest cities has agreed to participate in the retrofit program, and offer their municipal buildings for the first round of energy retrofits: Bangkok, Berlin, Chicago, Houston, Johannesburg, Karachi, London, Melbourne, Mexico City, New York, Rome, Sao Paulo, Seoul, Tokyo, and Toronto.

9 Page 9 of 11 As part of the Energy Efficiency Building Retrofit Program, cities have agreed to develop a program to make their municipal buildings more energy efficient and provide incentives for private building owners to retrofit their buildings with energy saving technologies. The retrofit program will be consistent with, and work within, city procurement and tendering rules. Participation in the program will be open to local banks and companies, who will be invited to contribute to the funding pool and to expand the list of green products used in retrofits. This is the first of many programs that CCI is organizing with partner cities in the C40 Large Cities Climate Leadership Group, an association of large cities that have agreed to work together to reduce their greenhouse gas emissions. "Mayors are responsible for coming up with pragmatic solutions and implementing them effectively and this program will allow us to do that," said New York City Mayor Michael R. Bloomberg. "We've laid out an ambitious agenda to reduce our carbon emissions, 80 percent of which come from buildings, while being economically competitive and continuing to grow. By bringing together cities and partnering with the private sector, President Clinton and the Clinton Foundation are providing the tools to help cities accomplish our goals. I applaud their leadership and am proud to stand with our partners today." Mayor of London Ken Livingstone, Chair of the C40, said: "The C40 brings together the world's most significant cities to tackle climate change. This first program to come out of our partnership with the Clinton Climate Initiative is a considerable breakthrough. This procurement alliance will make it financially feasible for cities to radically cut emissions from buildings. Fifteen cities have already signed up to take advantage of this initiative and I am confident many more will follow. National governments still struggle to agree a way forward on global warming, but cities, which are responsible for around three quarters of global greenhouse gas emissions, are today demonstrating the leadership and decisive action necessary to prevent catastrophic climate change." CCI and its partners will also assist participating cities with their initiation and development of programs to train local workers on the installation and maintenance of energy saving and clean energy products. The U.S. Green Building Council and the American Society of Heating, Refrigerating and Air Conditioning Engineers have agreed to help coordinate these programs. About the Clinton Climate Initiative Building on his long-term commitment to preserving the environment, President Clinton launched the Clinton Foundation's Climate Initiative in August 2006 with the mission of applying the Foundation's business-oriented approach to the fight against climate change in practical, measurable, and significant ways. In its first phase, CCI is working with the C40 Large Cities Climate Leadership Group to accelerate efforts to reduce greenhouse gas emissions. CCI team members have visited nearly all of these cities and are working with them to define projects and take action. The C40 Large Cities Climate Leadership Group is comprised of the following cities: Addis Ababa, Bangkok, Beijing, Berlin, Bogotá, Buenos Aires, Cairo, Caracas, Chicago, Delhi, Dhaka, Hanoi, Hong Kong, Houston, Istanbul, Jakarta, Johannesburg, Karachi, Lagos, Lima, London, Los Angeles, Madrid, Manila, Melbourne, Mexico City, Moscow, Mumbai, New York, Paris, Philadelphia, Rio de Janeiro, Rome, Sao Paulo, Seoul, Shanghai, Sydney, Toronto, Tokyo, and Warsaw. For more information contact the Clinton Foundation Press Office: /press@clintonfoundation.org Fact Sheet Energy Efficiency Building Retrofit Program

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11 Page 11 of 11 Attachment 6 Press Release C40 climate summit a huge success. Seoul to host next meeting On the final day of the C40 Large Cities leadership summit the Mayor of London, Ken Livingstone, Chair of the C40 called on national government to empower and enable cities to tackle climate change in a joint communiqué agreed by all attending cities. The Mayor also announced that the city of Seoul was chosen by all the 40 cities as the next city to host the C40 summit within the next 2 years. Before the next summit, specific conferences will be hosted on key issues. The city of Los Angeles will host a workshop on tackling carbon from ground based airport emissions. Rotterdam will host a conference and develop an information exchange on reducing emissions from ports and ships. London will host a workshop on tackling traffic congestion. Mayor of London and Chair of the C40 Ken Livingstone said: This summit has been a fantastic success with a real sense of purpose. The biggest cities from all over the world have come together to share ideas and learn from each other. It has been a tremendously positive and galvanising experience. 'Today we state clearly that major cities are ready to take up the lead in tackling climate change. They are all ready, willing and able to implement radical emission reduction programmes. And following the announcement yesterday by C40 Mayors and President Clinton, we now have a major new tool with which to achieve this. I am pleased to stand here with Mayor Oh Se-hoon, the Mayor of Seoul, to announce that the next summit of the C40 cities will be in the city of Seoul. Notes to Editors 1. On the final day of the C40 Large Cities Climate Summit the Mayor, Chair of the C40, has called on national government to empower and enable cities to tackle climate change in a joint communiqué agreed by all attending cities.copies of the communiqué which will be sent to the G8 summit at Heiligendamm in Germany can be found at For further information please contact Nicola Dillon on / nicola.dillon@london.gov.uk or Helen Collier on in the Mayor's Press Office (numbers not for publication) For out of hours media enquiries please call For non-media enquiries please call the Public Liaison Unit on