City Energy Efficiency Transformation Initiative
The City Energy Efficiency Transformation Initiative (CEETI) aims to help cities improve municipal services, enhance competitiveness, achieve cost savings, and reduce environmental impact through energy efficiency.
Cities are the engines of economic growth. More than half of all people on the planet live in an urban area. The United Nations forecasts that the world’s urban population will increase to 64% by 2050 with 94% of that increase occurring in developing countries. Most of the developing world’s cities have also experienced growing poverty. Nearly one third of the urban population lived on less than US$1.25 a day in 2008, with smaller urban centers (including peri-urban areas) accounting for a larger share of the urban poor.
Cities are the consumers of about two-thirds of the world’s energy and are responsible for about 70% of the world’s greenhouse gas emissions. Increased and rapid urbanization means massive requirements for energy to power economic activity and expand basic infrastructure. Energy efficiency can offer practical solutions for budget-constrained cities to expand municipal services and improve their competitiveness.
CEETI is a 3-year technical assistance program with an initial budget of US$9 million. Led by the World Bank’s Energy Sector Management Assistance Program (ESMAP), the initiative provides technical assistance to help cities identify, develop and mobilize finance for transformational investment programs in energy efficiency.
CEETI consists of three main components:
- capacity building and e-learning;
knowledge creation and exchange; as well as
financial and technical support.1
CEETI funding can be used towards the following activities:
Diagnostics and assessments of urban energy use and energy efficiency potential
Identification, development, and supervision support of IBRD/IDA lending operations and IFC investments
Technical assistance for policy, regulatory and institutional reforms
Training and workshops to enhance understanding of urban energy efficiency
South-South-North exchanges to share and disseminate experience and good practice
Facilitating access to – and mobilization of - financing for energy efficiency investment programs
ESMAP support will be available through three channels:
World Bank country programs | IFC programs | the World Bank Low Carbon and Livable Cities (LC2) initiative
The allocation2 of grant funding seeks to support proposals focusing on cities meeting the following criteria:
Commitment of the relevant authorities to preparing and implementing energy efficiency investment programs.
City-level or a national mandate to transform energy use in the metropolitan area.
Proposals that demonstrate ambition and scale, with the potential to transcend sector impacts or alter the trajectory of energy use in the city.
Priority will be given to proposals that seek to develop transformational urban energy efficiency investment programs and projects. Proposals should address energy efficiency with a cross-sectoral approach through, for example, combining solutions from urban planning, energy and environmental management, and/or urban transport.
The program will also seek to have representation of large cities and/or groupings of medium and small sized cities in the portfolio, as well as a diversity of geographies. Sectors that could be supported include: lighting, water and waste-water, buildings (municipal, commercial and residential), power and heat, waste management, and transportation.
1 All grants will be Bank-executed, i.e. procurement of services must be carried out by the Bank/IFC.
2 The first round of grant allocations is planned for March 2014.
BUILDING ON A SOLID FOUNDATION
The initiative builds on ESMAP’s extensive work on urban energy efficiency, including development of the Tool for Rapid Assessment of City Energy (TRACE), which has now been deployed in 27 cities to help them quickly identify potential energy efficiency improvements, target underperforming sectors, and prioritize interventions.
Other ESMAP efforts in this area include support to energy, transport, urban, environment, and water units within the Bank to develop urban energy efficiency components in their lending and non-lending operations. This has included assistance to Uruguay (improvements in water systems), Rio de Janeiro (diagnostic and pre-feasibility studies in buildings and public lighting), Gaziantep, Turkey (diagnostic and financing of EE recommendations), Shanghai (building retrofits), and Tianjin (landfill gas recovery).
Visit our publications to browse through guidance notes and other publications on urban energy efficiency issues, such as on public procurement of energy efficient products and services and energy efficiency in water and wastewater utilities.
About the World Bank Group and Sustainable Urban Development
ESMAP's City Energy Efficiency Transformation Initiative is part of a broader World Bank Group effort to support cities plan and finance sustainable urban development, which also includes the Low Carbon and Livable Cities (LC2) initiative. LC2 offers a comprehensive package of support that targets climate-smart urban development, and can help cities tap their full emissions reduction potential. Working together, the Bank programs offer a full range of solutions for cities. For example, in the Rio de Janeiro Low Carbon City Development Program, ESMAP’s TRACE was used to identify two potential energy efficiency investments: efficient street lighting using LEDs and energy efficiency retrofits to municipal buildings, such as schools and hospitals. Going forward, ESMAP’s City Energy Efficiency Transformation Initiative will provide technical assistance for the implementation of the energy efficiency portfolio under Rio’s Low-Carbon City Development Program.