Financing adaptation in Copenhagen
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- August Stokes
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1 Financing adaptation in Copenhagen
2 Presentation outline Introduction to Copenhagen Introduction to the climate change adaptation work in Copenhagen Financing adaptation measures in Copenhagen Storm water Flooding from the sea Involving the private sector
3 Copenhagen The City of Copenhagen (app inhabitants) is the capital of Denmark. (Metropolitan area app. 1, Inhabitants)
4 Copenhagen Climate Adaptation Plan The plan was approved by the City Council the 25. august 2011 Identification of threats Pointing to the overall solutions Determines an overall strategy Must be accompanied by concrete action, such as Cloudburst Plan and construction activities
5 Main Challenges - rain and flooding from the sea
6 Risk calculation Probability * cost
7 The economy of adapting! Damages over the next 100 year Sea: bill Euro. Rain: bill Euro. Total: bill Euro. Adaptation measures Sea: 530 mill Euro Rain: 800 mill bill Euro Total: bill Euro We save: bill Euro.
8 Risk assessment - rain water and sea level flooding Estimated costs and the probability of damage show that rain water is the most immediate threat But in 30 years time the risk of flooding due to rising sea levels will be greater (and the damage higher) Long decision making process - complicated financing Consequences for urban development Therefore we must start planning now
9 Cloudburst in Copenhagen July 2011
10 July damages More 150 mm rain within 2 hours Close to 1 billion euros Damage to critical infrastructure Hospitals minutes from evacuation Emegency services threatened
11 Reality check
12 Socio-economic calculations on the level of protection
13 The costs of protecting Copenhagen against extreme rain events
14 Financing climate change in Denmark - storm water Storm water management - publicly owned water companies - financed by water fees Fees controlled and regulated by a government institution - focus mainly on efficienciency and cutting administrative costs Improvement of public space - paid by the local government
15 Financing climate change in Denmark - coastal protection Coastal protection is not a national or regional issue Controlled and financed locally Private financed - who benefits from the protection Makes financing af coastal protection for Copenhagen very complicated - lots of stakeholders
16 Financing storm water management solutions Traditional solutions - financing mechanisms are all clear - the waste water companies pay - financed throug water fees Green Solutions - Unclear financing due to legislation that does not take climate change into account, but Copenhagen has lobbied hard to change the legislation, and it seems to be working
17 Capital vs. revenue Revenue costs financing is also clear when it comes to traditional solutions (payed by water companies through the water fees) Revenue costs on green solutions are unclear - can it be financed by the water companies? Or the municipality (tax money)?
18 Partnerships as part of the development and financing Great potential, locally and internationally Global investment need Partnerships Copenhagen Municipality will partner universities, foundations and private companies in the development of solutions. Innovation Copenhagen will create new solutions regarding adaptation that can be attatched to the Copenhagen brand on high quality of life
19 Private landowners - the main financial challenge The municipality and water companies cannot pay for measures in private houses Private initiatives have the estimated biggest effect on the extent of damages Amounts to about 1/3 of the total cost of the cloudburst plan!
20 Private landowners - insurance may be the key Damage costs for weather related damages have quintubled over the past 10 years. Rising insurance prices But also an incentive for private landowners to take action
21 Summary We have the plans - and know what measures we need to take But we are still struggling with finding the right financing mechanisms Copenhagen is fortunate - we have public money - but many cities don t We need strong public leadership - and close cooperation between public budgets and water companies. We still miss sufficient incentives to the private landowners!
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To protect their property
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