In their efforts to protect consumers from higher capital costs, utilities have racked up more and more debt and weakened their credit. Storms, wildfires, record heat waves, and cold fronts are pushing our electricity grids to the limit. The general public is demanding a wholesale shift to zero carbon energy to stop climate change. Meanwhile, new technologies are starting to erode the utilities’ traditional monopolies.
Fortunately, there is a tool that has been able to help reduce risks while providing capital at scale: securitization. Around since the 1970’s, securitization raises capital at scale by aggregating large numbers of similar assets together and creating liquidity for potential investors.
In a circular city, “reduce-reuse-recycle” will replace “take-make-dispose”. Urban mobility will be carbon-neutral, relying on low- to zero-emission vehicles within a broader energy network powered by renewables. Cities and businesses will also generate savings from using recycled building materials and turning waste into fuel to power buses.
In other words, circular cities will blend ancient approaches with modern technologies. But how will they do it, and where will the money come from?
The track record of state and local Green Banks in the U.S. shows how these financial institutions can move projects forward in cities. For example, consider a success story from the New York City Energy Efficiency Corporation (NYCEEC). A property management company that wanted to make improvements to six of its multifamily properties. Incentives from the local utility would cover part of the cost, but significant gaps remained, and the developer needed an affordable loan. NYCEEC provided a $1.3 million loan, which is due to be repaid within six years. The improvements will reduce greenhouse gases in an amount equivalent to removing 3,200 vehicles from the road, and will also reduce the emission of fine particulates which damage city residents’ health.
Innovative procurement is a much more flexible and open process compared to traditional procurement. Instead of buying a specific product or service the local authority is given an opportunity to discover new approaches. It’s allowing them to have a greater influence on products and find solutions that are catered to solving particular challenges, but will it replace traditional procurement? Bax & Company is engaging with cities to hear their perspectives on innovative procurement in order to help them better manage this promising, but uncertain, process. They spoke to James Arnott, the Principal Officer in Development & Regeneration Services of Glasgow City Council (GCC) to hear about Glasgow’s experience.
There is a definitive need for affordable housing programs for low-income households. But there is also clearly a need for housing assistance for people earning up to and beyond the city’s median income. When available funds and programs don’t align well with defined needs – and there is simply not enough money to solve the problem, the housing affordability challenge can seem insurmountable. If there is a silver lining to the current state of housing in the Bay Area, it’s that the affordability crisis has served as a much-needed call to action. Under a regional framework known as the 3Ps (production, preservation, and protections), new programs that seek to facilitate new housing construction, preserve existing affordable housing, and to enact tenant protections have been tried, tested, funded, and legislated at the local, regional, and state levels.
Building fairness and greater equity means ensuring all Torontonians have access to and can capitalize on the positive opportunities on offer in our city. To do so, we need to be thoughtful stewards of what makes our city an excellent place to live.
The “new” philanthropy, as I see it, needs to play a role in getting us there. The new philanthropy is participatory. It thinks about and changes the distribution of power. It amplifies the voices of those with “living experience” of the challenges it aims to alleviate. It sets the kind of table where all can have a seat and share, in spite of the different perspectives that are on the menu. It aims to move the money equitably and disrupt giving patterns.
The Baltimore-based Climate Access Fund (CAF), a nonprofit Green Bank, was launched in 2017 to address the gap between the community solar regulation and the way the solar market has traditionally worked. CAF provides a one-stop shop for low-income community solar, working to attract solar developers to the nascent market.
Cities can and should inform their community members living in Opportunity Zones about what Opportunity Zones are, and how they work to protect them from speculation and displacement. Cities should also create zoning overlays to ensure projects proposed in Opportunity Zones actually provide community benefit. Cities can even create impact investing prospectuses marketing their Opportunity Zones to ethical investors. And, finally, cities should be ambitious, and create their own Opportunity Funds to include investment experts, policy experts, and members of the community to fund equitable, sustainable projects that actually benefit communities.
Every city needs a biostrategy for economic and environmental well-being.
A recent study by the International Downtown Association reports that vibrant downtowns contain around 3% of citywide land, but contain 14% of all citywide retail and food and beverage businesses, and 35% of all hotel rooms. This results in $53 million in sales tax per square mile, compared to the citywide average of $5 million. Not to mention that downtown residential buildings also add to the tax base. In the 24 cities included in the study, residential growth in these downtowns outpaced the rest of the city by 400% between 2010 and 2016.
Partnerships between city officials and contractors result in new and visionary downtown destinations. Along with large vertical construction projects, there are opportunities for countless other projects, including parking structures, enhanced Wi-Fi, landscaping, pedestrian and biking paths, and traffic improvements.
Public meeting-driven community engagement doesn’t produce equitable outcomes for communities. To get to an inclusive, fair outcome, the development & planning communities need to get more representative feedback from community members.
The two most important points of the 2018 SAFE Vehicles Rule proposed (or preferred) alternative include: a cap on greenhouse gas emissions (GHG) and fuel economy requirements for passenger vehicles at 2020 standard (35.5 mpg) through MY 2026, and; a revocation of the California waiver to the 1975 Clean Air Act. Recently, EPA indicated they are considering “tweaking” the preferred GHG proposal, but appear to be committed to the revocation of the waiver for California—an action that will likely lead to a drawn-out legal battle between the administration and California.