„ Climate Change as Opportunities for Cities—Innovations in Adaptation Policy “

1. „Climate Change as Opportunities for Cities—Innovations in Adaptation Policy “ Jo-Ting Huang, Prof. Dr. Edeltraud Guenther ICREP Conference: Improving energy access through climate finance University of Twente, The Netherlands, 28 March 2013

2. Introduction Environmental Management and Accounting

3. Literature review • Climate change adaptation is critical for long-term sustainability for economies, societies, and environments (O’Brien et al, 2012). • Relatively small amount of information and literature on adaptation benefits. The current literature mainly addresses the costs of inaction in climate change (Stern, 2007). • The lack of positive literature of local adaptation options to provide a positive influence on motivating local economies to address climate change adaptation (Eisenack and Hoffmann, 2012). • A wider definition benefits should be also considered, including social and environmental costs and benefits, for instance, job creation, institutional adaptive capacity or ecosystem services (UNFCCC, 2011). • First mover advantage addresses that innovation creates competitiveness (Porter, 1995) • Definition of adaptation by UNFCCC “an adjustment in natural or human systems in response to actual or expected climate stimuli or their effects, which moderates harm or exploits benefit opportunities” (IPCC, 2001). Environmental Management and Accounting

4. Research questions and Methodology Environmental Management and Accounting

5. Questionnaires of CDP Cities 2012 • Risks • Do current and/or anticipated effects of climate change present significant physical risks to your city? • Effects of climate change • Opportunities • Does climate change present any economic opportunities for your city? • If yes, please indicate the opportunities and describe how the city is positioning itself to take advantage of them. • Economic opportunity • Describe how the city is maximizing this opportunity • If not, why not? • Please describe any other opportunities (e.g. social or physical) that climate change presents for your city. Environmental Management and Accounting

6. Questionnaires of CDP Cities 2012 • Adaptation • Do you have a plan for increasing your city's resilience to the expected physical effects of climate change? • Effects of climate change • Actions to reduce vulnerability • What is the current status of this initiative as it relates to your city? • Which statement best characterizes the type of initiative? • Which statement best describes how this initiative is funded or financed? • Please describe any other efforts you have undertaken or will undertake to ensure business and operational continuity - for both the city government and the businesses located in your city - in the event of a significant weather-related event. • If not, why not? Environmental Management and Accounting

7. Sample: 65 Cities Source: CDP cities 2012 Environmental Management and Accounting

8. Findings: opportunities in cities • Risks and opportunities of climate change in cities • Finding 1: Among 65 responding cities, 86% of cities confirmed that they have economic opportunities in climate change efforts. 38 Cities presented other climate change opportunities (e.g. social or physical). Environmental Management and Accounting

9. Findings: Climate change opportunities Environmental Management and Accounting

10. Findings: relation between economic opportunities and adaptation efforts Environmental Management and Accounting

11. Findings: relation between economic opportunities and adaptation efforts Results of set-theoretic method qualitative comparative analysis (crisp-set): ~P~A(X)=~O (5 cases confirmed; 4 cases contradictory) PA(X)=O (53 cases confirmed; 3 cases contradictory) What is X? Environmental Management and Accounting

12. Types of innovation • (Source: European Public Sector Innovation Scoreboard (EPSIS) – • Methodology report, 2012) Environmental Management and Accounting

13. Typology of public sector innovation Environmental Management and Accounting • (Source:Hartley,2006;OECD,2009)

14. Policy innovations based on regional innovation system A Institutions Social capital Stakeholder engagement: scientists, academics, economists, risk management, insurance, and legal experts Animators Universities, research institutes Public financial support Formal rules Building code, Bidding rules, municipal plans Municipal budget, international and national funding Firms: specialization and concentration of firms and knowledge in the center of the cluster Supports of businesses to develop nine cluster fields, for example, environmental technology, health, living, well-being, and etc. Venture capital Physical infrastructure Adaptive buildings, floating housing Project-based adaptation plans Technological infrastructure Knowledge infrastructure Mapping software, future scenario software, green roofs for storm water Working platform for stakeholders, assessment tools, committees Incentives Infrastructure (adapted from Andersson and Karlsson (2004); Eriksson, 2000)

15. Conclusion • In the sample of selected 65 cities: • 86% of cities confirmed that they have economic opportunities in climate change efforts. 58% Cities presented other climate change opportunities • There is correlation between climate change adaptation efforts and economic opportunities in selected 65 cities. • Innovation is a sufficiency condition for cities to obtain economic opportunities. Further steps: • Regression analysis on financial performance of cities

16. References • CDP, 2012, Measurement for management - CDP Cities 2012 Global Report - Including special report on C40 Cities. • Eisenack, K., Hoffmann, E., A Synthesis of Barriers to Adaptation. 6. Workshop on Social Sciences in Climate Change Adaptation. University of Kassel, Germany. (Presentation) • Eriksson, A. (2000), RegionalaInnovationssystem – FrånTeori till Genomförande • (Regional Innovation Systems – from theory to accomplishment), Swedish Office of Science and Technology, Stockholm • European Public Sector Innovation Scoreboard (EPSIS) – Methodology report, 2012 • Hartley, J. and J. Benington (2006). Copy and Paste, or Graft and Transplant? Knowledge Sharing Through Inter-Organizational. Public money & management, 26 (2): 101-108 • IPCC, 2001. Climate change 2001; impacts, adaptation and vulnerability, Report of WorkingGroup II of the Intergovernmental Panel on Climate Change. • Johansson, B., Karlsson, C. & Stough, R.R. (eds.), 2004, The Emerging Digital Economy: Entrepreneurship, Clusters and Policy, Springer-Verlag, Berlin • Nauta, F., & Kausbergen, P. (2009). OECD Literature review. Public sector innovation. Lectoraatinnovatie rapport. • O’Brien, K., Pelling, M., Patwardhan, A., Hallegatte, S., Maskrey, A., Oki, T., Oswald- Spring, U., Wilbanks, T., Yanda, P.Z., 2012: Toward a sustainable and resilient future. • Porter, M.E., van der Linde, C., 1995. Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9, 4, pp. 97–118. • Stern, N., 2007. The economics of climate change: the Stern review. Cambridge University press. • United Nations Framework Convention on Climate Change (UNFCCC), 2007. Climate Change: Impacts, Vulnerabilities and Adaptation in Developing Countries. UNFCCC: Bonn. Environmental Management and Accounting

17. Thank you for your attention! For more questions: www.tu-dresden.de/wwbwlbu/en E-Mail: jo-ting.huang@tu-dresden.de TechnischeUniversität Dresden is validated according to EMAS regulations since January 2003, successful revalidation in December 2006 and in December 2015. Information: http://tu-dresden.de/die_tu_dresden/umweltschutz?set_language=en&cl=en Environmental Management and Accounting