The Path to Net Zero in Latin American Cities - The UK's Capabilities and Contributions - Connected ...
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April 2021
Connected Places
The Path to
Net Zero in Latin
American Cities
The UK’s Capabilities and
Contributions
Supported by FCDO and UKRI
2 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 3
Santiago, Chile
Context
The last five years have seen cities around the
world become decisive drivers and venues of
innovation in pursuit of net zero and clean growth.
Cities are now recognised as the dense
concentrations of people, assets and systems
where it is possible to enact transformations
at scale and achieve essential economic and
social outcomes at the same time as targeting
climate change. The quest for a green recovery
from Covid-19, coinciding with COP26, is adding
stimulus to more cities to translate net zero
pledges, plans and ambitions into real world action.
To know what kinds of interventions are possible and desirable in
cities, and the roles the UK can play in trading and enabling them,
depends on a deeper grasp of where cities are at and how they
can innovate.
This report, which combines the findings from the FCDO-supported
project “Leveraging UK Expertise on Net Zero in Pacific Alliance
Cities” and the Innovate UK-supported webinar “Latin America Net
Zero Urban Innovation Challenges and Opportunities”, explores the
potential for the UK to support the different paths that cities may go
on towards net zero based on their individual starting points, their
span of control, and the priorities they now have to address.
4 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 5
The analysis is focused on Latin America strategies tend to be less developed than in • Incumbent businesses, including start-
and informed by urban performance data, other systems of cities. There are a growing ups and SMEs, are starting to recognise
insights from SMEs and UK export missions, number of capable innovation partners Villavicencio, Colombia their role in leading a net zero transition,
and practitioner recommendations in but fewer areas of mature local domestic especially in cities dominated by particular
the UK and in the region. It is designed specialisation in sectors that can immediately companies or sectors. The demonstration
to complement the rich body of work accelerate to net zero. This presents a lot of capacity and convening power of industrial
undertaken by multilateral organisations, opportunity – and urgency - for long-term companies and private infrastructure and
city networks and others on Latin American partnership and capacity development. energy providers is especially significant
cities, by focusing on what specifically the The interviews and research carried out for in contexts where city governments have
UK’s companies, conveners and cities can this work reveal that in a global context, limited influence
contribute. Its results help to provide a Latin America’s cities’ net zero journey stands
In the next cycle there is a shared recognition
broad understanding of the current net zero out in a number of ways:
that to achieve scalable net zero impacts, the
challenges faced by Latin American cities and
• The profound role of natural assets region’s cities need support to better convene,
how UK expertise may help to address them.
in their wider region, which shapes the collaborate and co-ordinate, especially
Latin America is a critical region for possibilities and resources for net zero with business, citizens, academia and civic
the world’s net zero ambitions. It is 80% action and climate resilience. Protection, leadership. Services and innovations that build
urban, and a continent where unplanned utilisation and smart management of the collaborative capacity within cities, and
and underpowered cities have resulted deserts, coasts, wind, forests, wetlands, more people with the skills and influence to
in many urgent mitigation imperatives in food basins, and biodiversity – including act as an effective interface, are at the heart of
transport, energy and waste. The gateway through improved technologies, services what many cities seek.
cities such as São Paulo, Mexico City and and management - are high priorities in
More partnership-led institutions and
Bogotá continue to lead the charge in terms these nature-rich cities, especially given
financial tools are in demand – from municipal
of demonstrating what is possible and the high risks of natural and man-made
companies to business improvement
promoting potential opportunities. At the disasters which result in significant human
districts to value capture. Gaps in financing,
same time, diversification away from the and economic costs each year
benchmarking, real-time management and
region’s megacities continues and there is
• The urgency to shift to more compact performance monitoring related to net zero
more recognition that medium sized cities
development. Latin American cities all need to be closed rapidly. The pivot to
hold the key to clean growth.
are entering a critical cycle where they innovative procurement practices, such as
These ‘middleweight’ cities, from Antofagasta need to demonstrate the effects of the challenge-led procurement approach, can
to Arequipa and from Santa Marta to São transport-oriented development, begin underpin efforts to engage start-ups and SMEs,
Jose dos Campos, are much less locked in modal shift away from the car, and shift create a more level playing field, and generate
to inefficient path dependencies, and have towards effective metropolitan planning. more opportunities for local actors in the
the agility to change and eagerness to Electric vehicles play a role in a more agile race to net zero while also providing a specific
partner up. A lot of groundwork and piloting urban model, alongside public transport mechanism to match specific local needs to
has been done in the last decade to create expansion, multi-modal stations, mobility potential expertise in a transparent way.
an environment where long term plans, as a service, and much improved facilities
climate plans, and effective financial and incentives for pedestrians and cyclists
instruments, are all more customary in supporting active mobility
Latin America’s mid-sized cities, although
• A communication task with
big institutional weaknesses and basic
communities is essential in high-division,
infrastructure gaps persist.
low-trust cities where information flow from
As a group, Latin American cities are striking authorities to citizens is often ineffective,
in that governance deficits mean that despite and carbon literacy is low. Policies which
high levels of awareness, the scope and generate a more participative approach
operationalisable ambition of their net zero with citizens should be encouraged
6 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 7
The UK’s potential contribution
Contents
plan, establish effective localised cost-benefit
analysis, unlock green public spaces, as well
The UK was the first nation to industrialise
as build research partnerships on agendas
and urbanise, and among the first to
such as circular economy and hydrogen.
experience de-industrialisation. As a source
Appetite is very high for UK companies’
of solutions and innovations, the UK is
integrative expertise and technology, 1. Leveraging UK Expertise to Address Net Zero 6
on a path to becoming a distinctive net zero
the capacity building of its experts and Challenges in Latin American Cities
market because of its: 1.1 Project summary 8
institutions, and UK cities’ ambitious
• World-leading sector-specific capability in leadership in terms of how to decarbonise 1.2 Medium-sized Latin American cities in regional perspective 13
areas essential for financing and building systems and raise the profile of low carbon 1.3 The opportunity to leverage UK expertise in the journey to net zero 25
net zero cities in a more integrated way agendas.
• Competitive ‘first mover’ advantage in The UK will itself need to innovate in order 2. Moving Forward and COP26 40
niche technologies and place-based to make the most of its potential to drive
innovations that can be scaled globally significant trade and reputational advantage Appendices 42
to city governments and users from its net zero activities abroad and at A – Examples of UK expertise and leadership in the journey to net zero 42
home. Practitioners observe that the UK’s net B – Data sources underpinning the national ‘systems of cities’ 46
• Know-how around systems integration,
zero export and scalable expertise potential performance snapshots
breaking down siloes, and the regulatory
may in future benefit from: C – Webinar Summary and Statistics 48
and policy adjustments that spur change
References and endnotes 50
1. A co-ordinated system to alert SMEs to
• L eadership in UK cities to promote low
non-UK language advertised opportunities,
carbon innovation and internationalisation
and to support them to respond efficiently
despite significant institutional deficits and
place fragmentation 2. Ongoing support to UK cities to build
capacity and resources to mobilise around
UK SMEs have particular expertise in net zero
net zero and showcase progress in an
niches such as smart streetlighting, lithium-
internationally relevant way to overseas
ion battery storage, electric vehicle charging
decision makers and investors
infrastructure and subscription models, and
mobile ticketing and payments-as-a-service. 3. M
ore structured support to share
Many capabilities that have comparative UK global expertise and to combine
advantage in emerging economies are in the different sectors that contribute to
the ‘softer’ domains of regulation, behaviour a low-carbon system into a smart
incentives, systems engineering and integrated offer
integration. UK companies and joint ventures
4. Efforts to design the UK ‘package’ of net
can play a leading role in helping cities to
zero expertise specifically to complement Authors
design and deliver less siloed systems and
existing capabilities in cities, and to link
overcome pervading fragmentation. Dr. Tim Moonen – Co-Founder and Managing Director, The Business of Cities
to supply and delivery on the ground
In general, the biggest priority areas Jake Nunley – Head of Research, The Business of Cities
5. More partnerships between UK companies Harriet Seymour – Associate, The Business of Cities
for mitigation in Latin American cities –
and organisations active locally such as the Guilherme Johnston – Head of Global Partnerships, Connected Places Catapult
particularly smaller and medium sized
Inter-American Development Bank (IDB), Precilia Godart – Global Partnerships Officer, Connected Places Catapult
cities – are around decarbonising transport,
the Latin America Development Bank
energy and waste. There is consistent
(CAF), UN-Habitat, UNDP, ICLEI and C40,
demand for assistance to develop bankable Acknowledgements
which can help to facilitate interactions
projects, redesign electricity markets, The authors would like to warmly thank colleagues within the UK, Latin America and elsewhere
between the UK and local service
introduce baseline monitoring systems, for their insight and input to this report.
providers and strengthen UK involvement
integrate metropolitan transport, centralise
in city-led challenges
mobility data, execute a regional climate
8 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 9
1 Leveraging UK
It is especially pertinent in Latin America, where There is no one system or catalyst that will decarbonise
megacities are home to 10% more of the urban population cities. It will require millions of small and large
than in other global regions, and where fast-changing interventions, not only into buildings, transport, energy,
Expertise to Address
medium-sized cities are home to nearly 45% of the total waste and materials, but also more broadly into city
urban population (see Figure 1). This means that while systems, assets, services, planning and business models.
Latin America’s gateway cities such as São Paulo and Digitisation, integration, efficient retrofits, co-ordinated
Net Zero Challenges in
Buenos Aires will play important demonstrator and governance, aligned incentives and applied technologies
convenor roles, the path to net zero will also fundamentally will all be required (see Figure 2). The abatement
depend on what happens in ‘middleweight’ cities such contribution of medium-sized cities in particular is
Latin American Cities
as Bucaramanga and Concepción. striking in the pursuit of targets for 2030 and beyond.
18
1.1 Project summary Figure 2:
Contribution of Reference Scenario
17.3
different sectors with a continuation of Energy Efficiency
In January 2021, Connected Places Catapult and The Business of Cities were commissioned by the to the reduction of 16 business-as-usual trends Reduced Sprawl 2.3
urban greenhouse Liveable Density
FCDO in Chile and Colombia to deliver a project focusing on identifying the net zero challenges in six gas emissions by
medium-sized cities in Chile and Colombia – Antofagasta, Bucaramanga, Concepción, Iquique, Santa 2050 14 Governance Residential
Mixed Use
Regulation
Renewable Energy Supply
Buildings
Marta and Villavicencio – and to identify how UK expertise could contribute to addressing these. Partnerships
Carbon Capture 3.4
Finance
Incentives Battery Storage
12
Market-making
Context Procurement
Education Retrofits
IoT Responsive Environments
1.5
Communication
The global journey to ‘net zero’ depends to a very large extent on
1 10 Leadership System Monitoring
Life Cycle Management
Commercial
1.8 Buildings
what happens in cities.
8 Public Transport
Active Mobility
Net zero - where total greenhouse gas decarbonisation of cities – which we take Optimised Logistics 2.5
emissions are equal or lower than emissions here to mean all ways of reducing cities’ 6
EVs Urban
Ports & Airports
Transport
removed from the environment – is shaped in CO2 emissions – will be essential to the journey Mitigation Scenario 0.7
with ambitious action Circular Economy
large part by CO2, which is responsible for to net zero.3 This imperative applies to cities 4 1.3
Source: Adapted to cut emissions Material Recovery
Urban
75% of greenhouse gas emissions globally. large and small, and cities in established and from Coalition for
Materials
Urban Transitions 1.2
Cities account for over 70% of these CO2 emerging economies. All cities will play their (2019), including
2
authors’ own Zero-emission Waste 0.8
Urban Waste
emissions.2 An increased pace in the part. (see Figure 1). annotations Waste Prevention
on example
interventions.5 1.8
0
Figure 1: Size of 2015 2020 2025 2030 2035 2040 2045 2050
Latin American
metropolitan
areas and
distribution of
urban population
compared to
metropolitan
areas in other
These efforts synchronise with other core benefits cities With its ambitious net zero targets and world-leading
parts of the world are seeking – cleaner air, better mobility, cost savings expertise in several sectors relating to decarbonisation,
for citizens and companies, higher liveability, and talent the UK has the potential not only to transform itself
retention. Latest forecasts suggest that the economic internally, but also to work together with partners
benefits of decarbonising cities may amount to £17.5 globally – such as the Pacific Alliance cities – to achieve
trillion in Net Present Value by 2050.6 global climate commitments. COP26, together with the
recently released Ten Point Plan for Net zero Transition,
In the context of Brexit and the recovery from Covid-19, represents a unique opportunity to accelerate global
and as the host country of COP26, the UK government emissions reduction and the shift to renewable energy.
and the agencies within it have begun shifting attention
Source: UN World Urbanisation Prospects (2018 update).4 *Only includes metropolitan areas with populations above 300,000. Urban population
refers to total population residing in cities with metropolitan populations larger than 300,000.
more decisively to questions around how to promote
decarbonisation and a green economic recovery.
10 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 11
.
Project aims and methodology • The scope and ambition of their climate Dimension Questions it can help answer
change and associated net zero strategies,
This project, designed to build on, • How well set up is the city to become net zero?
including areas where awareness raising
complement and triangulate existing Inherited assets to go net • How difficult will it be for this city to become net zero?
may be required (ambition and strategy)
work in this space, provided an important zero • How much progress is possible?
insight into the challenges Latin American • The size, scale and mix of projects • Which can be the biggest drivers of change?
cities face in their journey to net zero, currently being mounted to progress to
• Which cities are willing pioneers?
and to the opportunities for the UK to net zero, including the potential role for Ambition and strategy to
• Where is awareness raising required?
provide expertise that can accelerate their the UK, and the extent and maturity of become net zero
• Who are the potential IFI partners?
decarbonisation efforts. It combined insights platforms to convene action (projects
from global datasets, local strategies, and and platforms) • What scale and sector are the projects being mounted?
Platforms and projects to
• Where are the gaps?
direct interaction via expert interviews and • The tools and powers they have to catalyse net zero
• What type of expertise can the UK offer?
a webinar with key stakeholders in Pacific undertake bold reforms and shift to net
Alliance cities to create a framework of zero, and which sectors seem to offer Span of powers and • Where can UK net zero companies or institutions find a capable
analysis that can be applied globally (see the most scope for intervention (span of influence to shift to net government partner?
Figure 3). This framework enables cities to zero • In which sectors is there most scope to intervene?
powers and influence)
be evaluated according to a 5-pronged system
• T
he maturity and dynamism of the net zero • Who are the potential partners for net zero?
that analyses: Investment and innovation
innovation and investment environment, • How easy is it to access funding?
environment for net zero
• The assets and systems they inherit, how • How mature is the current clean/greentech ecosystem?
including the extent of specialisation in
difficult it may be to decarbonise them, and sectors allied to net zero and presence
which systems can be the main drivers of of potential partners (innovation and In answering the questions ‘how are Chilean • Open the market for UK expertise to
change (inherited assets) investment) and Colombian cities distinctive in terms of medium-sized cities in the Pacific
their journey to net zero?’ and ‘what is the Alliance region, such as Bucaramanga
role of the UK in supporting that journey?’, and Antofagasta
the project aimed not only to expand the
Figure 3: • Match capability to needs and assess which
Framework Inherited evidence base on medium-sized Latin
underpinning assets cities would be a best fit for UK expertise
American cities, but also to define potential
analysis of the on net zero
challenges cities pathways for the UK to foster and support
face in the journey +100% sustainable market development activities. • Differentiate the sectors where the UK
to net zero
and its companies and cities are world
In particular, the project was designed to:
leading and can provide the leading-
• Strengthen understanding of Pacific edge ideas, innovations, capabilities and
Alliance cities’ net zero related challenges lessons to support the rest of the world
Innovation Ambition
and and and opportunities as they relate to urban to decarbonise
investment Strategy innovation among key UK stakeholders
• Provide a resource for UK representatives
Pee
-100% • P
rovide valuable insights into which sectors and businesses to communicate the UK
r
in which cities are most suited to UK support, offer in a more focused way
Ave
and which stakeholders the UK can work
rage
with to accelerate the journey to net zero
What this report is and is not
Span of Projects
powers and and This report provides a series of summary insights drawn from the main outputs of the FCDO-supported
influence platforms project “Leveraging UK Expertise on Net Zero in Pacific Alliance Cities” and the Innovate UK-supported
webinar “Latin America Net Zero Urban Innovation Challenges and Opportunities.”
12 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 13
1.2 Medium-sized Latin American cities in
Section 1.2 – Medium-sized Latin American cities regional perspective
in regional perspective Medium-sized cities will be essential to Latin
Latin America’s medium-sized cities hold the key to much of the continent’s urban
America’s journey to net zero.
emissions abatement and mitigation potential. Understanding at a broad level where
these cities have come from in terms of the assets and systems they inherit; where they
are at now in terms of how dynamic their urban innovation ecosystems are; and where Not only do medium-sized cities hold the • Inherited city systems, connectivity and
they are going in future as a result of the tools and powers they have to undertake bold majority of urban emissions abatement assets
reforms, is an important first step in being able to map the net zero challenges faced by potential to 2030 and beyond. In many cases
• Existing innovation ecosystem dynamics
each region and the potential pathways to support market development activities. they also have the appetite, consciousness
and culture of enterprise
Section 1.2 is based on Connected Places Catapult’s and The Business of Cities’ City and eagerness to amend their development
Typologies tool, which draws upon a combination of comparative global benchmarks, trajectories and engage in the conversations • Governance capacity, budgetary power and
longitudinal socioeconomic databases and real-time global ‘big’ datasets in order to and partnerships necessary to spur change. strategic ambition
characterise cities’ performance across three main opportunity areas. This snapshot primarily looks at Colombian
Yet the ability of medium-sized cities to
progress to ‘net zero’ depends on many and Chilean cities, including:
factors. This not only includes inherited • Colombia’s two most globalised cities
systems and assets relating to spatial form (Bogotá and Medellín), plus a group of
and public transport that are built up and three medium-sized cities: Bucaramanga,
evolve over multiple cycles, but also elements Villavicencio and Santa Marta7
Section 1.3 – The opportunity to leverage UK that influence the ability of cities to enact
• Chile’s two most globalised cities
change, including the size and scale of their
expertise in the journey to net zero urban innovation ecosystems, the presence
(Santiago and Valparaíso), plus a group
of three medium-sized cities: Iquique,
of platforms and partners to convene
Antofagasta and Concepción
The UK has world-leading experience and expertise in several sectors relating to multiple stakeholders, and the future
decarbonisation. Mapping the ways that the UK has already contributed, and how they ambitions and strategies of the city and
could contribute further, to the journey to net zero in other countries is an important the planning, governance and financial tools Santa Marta
means of matching needs and capability. they have to realise them. Bucaramanga
Medellin
Bogotá
Section 1.3 explores 4 types of sector where the UK has real-world leading capabilities This section provides a ‘birds eye’ snapshot
and expertise and where its businesses and cities have the potential to amplify their of Colombian, Chilean, and other Latin Villavicencio
impact. More specifically, it reflects the particular roles of cities and SMEs, and the American cities in global and regional
needs for ongoing improvements within the UK to drive and reinforce existing expertise
perspective that is designed to answer some
and contributions. It provides a short, non-exhaustive outside-in scan of the opportunity
of these questions. It is based primarily on
for the UK to support the decarbonisation agenda, with a focus on Latin America and
The Business of Cities’ and Connected
other middle-income countries globally.
Places Catapult’s ‘City Typology Index –
It does not provide a fully in-depth and comprehensive analysis that captures all UK an in-house performance and progress
actions in the net zero space in full, nor is it an audit of particular firms within the net Iquique
dashboard which assesses 500 cities with
zero space. It is based on insights from: Antofagasta
over 175,000 individual data points, across
• Studies from UK Catapults such as Connected Places Catapult and Energy Systems three main opportunity areas: Valparaíso Santiago
Catapult
Concepción
• Analysis undertaken by and on behalf of the UK government
• National government reviews and policy briefs
• Global benchmarks and comparative studies of city performance
Figure 4: Map of
• Global big data platforms of real-time investment and innovation activity in cities cities analysed in
• Interviews with key participants in the ecosystem in the UK and internationally this snapshot
14 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 15
Summary insights on the performance of 11 other medium-sized Latin American cities are also
provided to help contextualise these two national systems of cities. This group of cities includes
Arequipa, Caruaru, Cuenca, Cuiaba, Florianópolis, Hermosillo, Joinville, Juiz de Fora, Londrina,
Niteroi and São Jose dos Campos.
Colombian and Chilean cities in global context Metropolitan Size/Global Metropolitan Size/Global
population/m rank population/m rank
Colombia and Chile’s cities are important economic centres among more than 100 major Latin
Bogotá 10.7 54th Santiago 6.2 109th
American cities. This wider group of cities is diversified and includes global financial centres,
gateways for trade and tourism, emerging innovation hubs, underperforming megacities and Medellín 3.7 191st Valparaíso 1.0 454th
smaller niche players. All of these cities have differing levels of need, appetite and capacity Cali 2.8 248th Concepción 1.0 456th
(see Figure 5). Barranquilla 2.4 294th Antofagasta 0.4 503rd
Bogotá is just outside the 50 biggest cities globally, while Santiago sits just outside the top 100 Bucaramanga 1.1 442nd Iquique 0.4 505th
(see Table 1). Both of these cities are the dominant cities in their respective national systems, Santa Marta 0.7 480th
where many urban innovations are designed, devised or tested. Colombia and Chile’s 2nd tier Villavicencio 0.5 497th
cities – Medellín, Barranquilla and Cali – are all among the 300 largest, and have the scale and
Table 1: Metropolitan population size of
influence to have developed strong appetite for urban innovations. Meanwhile the 3rd tier cities Colombian and Chilean cities
– Bucaramanga, Villavicencio, Santa Marta, Concepción, Antofagasta and Iquique – are smaller,
more specialised centres playing complementary roles.
Colombian, Chilean and Latin American cities in 2020 Relative to other systems of cities in middle- more rapidly, Chilean cities inherit a denser
income countries, the Colombian and Chilean spatial form and have been densifying and
systems of cities: consolidating more effectively in the most
recent cycle. Chilean cities also have a more
• Are more asymmetric and dominated by
developed and efficient public transport
their respective capital cities, in population
Figure 5: The backbone than Colombian cities, on average.
journey of Latin and governance terms, although less
American cities
uneven than many other nations in Latin Understanding the differences between the
across the three
main opportunity America assets and systems that cities inherit provides
areas, in 2020
a useful way into assessing the magnitude
• Inherit less affordable and resilient
of the challenge to re-engineer the built
transport systems
environment and infrastructure in line with
• Demonstrate more of a track record what is required to meet local and global
of urban leadership on key agendas, emissions reduction targets. This can be an
and of mounting and delivering system important first step in identifying logical
innovations and plans concrete areas for intervention as well as
• Have not yet successfully scaled as many highlighting the extent of awareness-raising
mobility innovations that may be necessary.
However, there are also important differences
between the two systems of cities. For
Source: The Business of Cities and Connected Places Catapult, based on composite performance. Colombian and Chilean cities
highlighted in orange. See Appendix for full details of the indicators that comprise each of the three opportunity areas.
example, while Colombian cities inherit
a less dense built form and are sprawling
16 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 17
City ‘types’ and different Meanwhile Colombia’s five cities have
City Systems and Assets
Ecosystem and Enterprise Strategic Capacity
priorities of Colombia and opportunities to: Dynamics and Ambition
Chile’s cities 1. Build more mature and specialised Cities with
high-performing
innovation ecosystems that fulfil global Cities with
Chile’s five cities all have room to innovate Cities with universities
some capacity
roles and enhance local productivity Santiago significant gaps but limited
and ‘catch up’ to leaders in Latin American, advantages
of metropolitan track record of
and potential
especially to: 2. Achieve more efficient built form that is coverage and commercialising
to make major
access, and basic research and
well connected by next-generation mobility Mismatcher Non-Converter Progressive strategic steps
1. Build more integrated governance systems priorities talent strengths
forward
that convene multiple sources of leadership solutions and reliable digital platforms into fully fledged
ecosystems
and can drive bolder city-wide initiatives in 3. C onvene and organise the partnerships and
key agendas such as decarbonisation and platforms that can underpin a new cycle of For cities like Santiago, the imperative is to build more of the confidence and tools to undertake and implement
green growth investment and innovation in key agendas bold system-changing reforms, address major metropolitan mobility gaps, and find ways to ensure more routes to
commercialisation, experimentation and impact among its high-performing universities and research institutions.
2. Unlock new sources of financing and such as decarbonisation and green growth
investment and develop tools to achieve These are summarised in the typology below,
greater fiscal agility which uses performance, trend and strategy
3. Grow the skills base necessary to underpin data to observe which of the seven ‘types’ of
a more mature and specialised innovation city each city appears to be currently, across
each core dimension: city systems and assets, Ecosystem and Enterprise Strategic Capacity
ecosystem City Systems and Assets
Table 2: The different Dynamics and Ambition
‘types’ of Colombian ecosystem and enterprise dynamics, and
and Chilean city across strategic capacity and ambition. Cities with
the three opportunity high-performing
areas
Cities with Cities that
universities
moderate lack the
Concepción but limited
systems and fundamental
track record of
Ecosystem and Enterprise Strategic Capacity assets, with room capacity or
City Systems and Assets to expand and
commercialising
incentives to
Dynamics and Ambition research and
Prospector improve with the Non-Converter Inhibitor pursue bold
talent strengths
right catalysts projects alone
Cities with Cities with a Cities with into fully fledged
Bogotá significant gaps competent some capacity ecosystems
of metropolitan track record but advantages and
coverage and limited openness potential to make For cities like Concepción, the opportunity is to scale existing innovations, testbeds and pilots to demonstrate the
access, and basic or international major strategic path to transformed infrastructure systems, and work on the skills, partnerships and civic innovation foundations
Mismatcher Domestic Progressive
priorities reach steps forward that can create innovation momentum.
For Bogotá, there are clear opportunities to connect up the existing ecosystem, build more international
relationships and partnerships, and at the same time establish pathways to address major metropolitan mobility
and digital gaps.
Ecosystem and Enterprise Strategic Capacity Ecosystem and Enterprise Strategic Capacity
City Systems and Assets City Systems and Assets
Dynamics and Ambition Dynamics and Ambition
Cities with Cities that
Cities with Cities with Cities with limited
Cities with moderate lack the
moderate promising Valparaíso knowledge assets
Medellín some capacity systems and fundamental
systems and commercial and and limited
advantages and assets, with room capacity or
assets, with room $ entrepreneurial
potential to make to expand and
translation and
commercialisation
incentives to
to expand and activity despite Prospector improve with the Embryonic Inhibitor pursue bold
major strategic so far
Prospector improve with the Enterpriser knowledge and Progressive right catalysts projects alone
steps forward
right catalysts talent constraints
For cities like Valparaíso, while there is an ongoing priority to develop more localised capability and capacity to
For Medellín, there is an opportunity to overlay cutting edge innovations on top of existing infrastructure, and to take the net zero initiative, there is also an opportunity to build on existing infrastructure by overlaying existing
benefit from public-led strategic partnerships that can help to build confidence, explore potential reforms, and innovations, and to enter into longer-term partnerships necessary to build the confidence and resources for net
mobilise the ecosystem in support of net zero transformation. zero transformation at scale.
W
18 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 19
Ecosystem and Enterprise Strategic Capacity Strategic Capacity
City Systems and Assets City Systems and Assets Ecosystem and Enterprise Dynamics
Dynamics and Ambition and Ambition
Cities with Cities that
Cities with Cities with limited Cities with Cities with limited
Santa some capacity lack the
significant gaps knowledge assets Iquique significant gaps knowledge assets
Marta advantages fundamental
of metropolitan and limited of metropolitan and limited
and potential capacity or
coverage and translation and coverage and translation and
to make major incentives to
access, and basic commercialisation access, and basic commercialisation
Mismatcher Embryonic Progressive strategic steps Mismatcher Embryonic Inhibitor pursue bold
priorities so far priorities so far
forward projects alone
For cities like Santa Marta, with fewer urban assets to leverage but some capacity or leadership advantages to For cities like Iquique, with fewer assets or advantages to leverage, support is needed to foster and connect up the
build on, support will be needed to foster and develop enterprise and resilient jobs, and there is an opportunity to ecosystem, consolidate and innovate around one or two key urban and economic agendas, and pursue projects
support existing projects to scale and endure. that can establish momentum and visibility.
Colombia’s cities in Latin American In particular:
context • There are big gaps between the more mature and
Colombian cities mainly stand out for their more higher-momentum innovation ecosystems of Bogotá
Ecosystem and Enterprise Strategic Capacity integrated governance arrangements, larger budgetary and Medellín and cities with an up to now less well-
City Systems and Assets
Dynamics and Ambition established culture of enterprise and innovation
capacity, and higher fiscal agility. These are important
Cities with advantages that can help Colombian cities to undertake (e.g. Santa Marta, Bucaramanga and Villavicencio)
the scale and
Cities with Cities with limited bold reforms in the next cycle. However, relative to • Especially in these smaller cities, tech partnerships
capacity to
Antofagasta significant gaps knowledge assets
of metropolitan and limited
be a capable other Latin American cities that are also making rapid and other urban innovation and co-creation
partner and improvements, they do not yet have especially agile,
coverage and translation and platforms can help to fuel the ecosystem and unlock
customer, but
access, and basic commercialisation efficient or innovative urban infrastructure networks,
Mismatcher
priorities
Embryonic
so far
Promiser face financial investments needed to spur city-level change
or strategy or many of the core ingredients necessary to support
constraints • T
here may be imperatives for reform and partnership
a more distributed model of urban innovation in the
to ensure that key urban systems are more inclusive,
next cycle (e.g. reliable digital platforms and high
Cities like Antofagasta will have an opportunity to build on their capacity and calibre advantages, to unlock new affordable and resilient
collaborations to mount more compelling strategies, and to address the urgent deficits in their infrastructure and density spatial form).
mobility systems.
Colombian cities inherit greater potential to integrate governance
systems and have higher budgetary capacity
Ecosystem and Enterprise Strategic Capacity Figure 6: Colombian
City Systems and Assets cities’ performance,
Dynamics and Ambition
relative to Latin
Cities which America
have strong
Cities with Cities with limited local capacity
Bucaramanga significant gaps knowledge assets but have
Villavicencio of metropolitan and limited not yet built
coverage and translation and a decisive
access, and basic commercialisation vision for
Mismatcher Embryonic Catalyser
priorities so far connectivity,
innovation or
net zero
For cities like Bucaramanga and Villavicencio, while there is an overdue priority to address urgent deficits in
Source: The Business of Cities
infrastructure and mobility systems, there is also an opportunity to use local capacity and potential for integrated research. *Latin America city
growth and to build more decisive visions for decarbonisation, innovation and sustainable development. average refers to the average
of 80 cities in Latin and Central
America and the Caribbean.20 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 21
Colombia’s cities and the promise of future digital
and mobility innovation
Overall, in the next cycle of Latin American urbanisation, Colombia’s most established cities will
be especially well placed to bridge the gap with the region’s leaders. They can work to deploy and
implement new tech innovations that provide greater coverage, integration, transparency and
reliability for digital systems. These can underpin long-term improvements to urban productivity,
trade, wellbeing and sustainability.
But Colombia’s smaller and medium-sized cities also have great potential to become competitive
‘middleweight’ cities in the future Latin American system. The extent to which they are able to
make progress on the big agendas of the day – including decarbonisation – will depend on if
they are able to apply comprehensive solutions to grow a cleaner and more sustainable mobility
platform, make the most of business partnerships, and co-create mechanisms to achieve even
more consistent investment and policy delivery.
In a fast-moving Latin American context, And they also have priorities to innovate in
Chile’s cities in Latin American In particular:
Colombian cities can build on the order to:
advantages of:
context • There is still a significant gap between
1. Improve the reliability and coverage of the more mature and higher-momentum
Chilean cities stand out for their more efficient
1. More signs of actionable data, innovation, ‘whole city’ digital platforms in order innovation ecosystem of Santiago and the
and innovative transport networks, their more
transport and net zero strategies that can to support a more distributed model of rest of the nation’s cities
developed track record of high-quality science
help to chart a path to decarbonisation and innovation
and technology research, and their more • There may be a need for efforts to convene
sustainable development
2. Grow the pool of local specialised expertise established culture of citizen engagement. the tech ecosystem and unlock mechanisms
2. Their promising financial and fiscal necessary to deliver urban and place-level to translate science and technical expertise
However, relative to Latin American cities
capability, necessary to procure expertise transformations into commercial advantage
that are also making rapid improvements,
and spur change
3. Develop more inclusive and affordable they are not yet as widely recognised for • There may be imperatives for reform and
3. More integrated ‘whole city’ governance public transport systems to drive modal demonstrating leadership on the key agendas partnership to ensure that all types of city
arrangements that can underpin bold shift and decarbonise the transport sector of the 21st century, partly as a result of their are able to envision and implement bold
reforms in the next cycle lower budgetary capacity and fiscal agility. strategies on agendas such as green growth
Figure 7: Top areas where Chilean cities have also not yet fully translated and decarbonisation
Colombian cities are their science and technology research
ahead and behind relative
to Latin American cities capability into the type of innovation activity
that can underpin a more mature and higher
*The 8 sub themes
among the 14
momentum ecosystem.
sub themes that
make up the City
Typology Index where
Colombian cities, as
a group, are furthest
ahead and behind
the regional average.
See Appendix for
full list of measures
and sources in each
sub theme. Regional
average = average
across 80 cities in
Latin and Central
America and the
Caribbean.22 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 23
Chilean cities have an opportunity to build more integrated, efficient
Figure 9: Top areas
and reliable infrastructure systems in the next cycle where Chilean
cities are ahead
and behind relative
to Latin American
cities
Figure 8: Chilean
cities’ performance,
relative to Latin
America
*The 8 sub themes among the 14 sub themes that make up the City Typology Index where Chilean cities, as a group, are furthest ahead and
behind the regional average. See Appendix for full list of measures and sources in each sub theme. Regional average = average across 80
cities in Latin and Central America and the Caribbean.
Source: The Business of Cities research. *Latin America city average refers to the average of 80 cities in Latin and Central America and
the Caribbean.
In a fast-moving Latin American context, And they also have priorities to innovate in Chile’s cities and the promise of future digital and
Chilean cities can build on the advantages of: order to:
1. Stronger capability to deliver 1. Improve the reliability and coverage of
mobility innovation
transformational research that can help to ‘whole city’ digital platforms in order
solve important societal challenges to support a more distributed model of Overall, in the next cycle of Latin American urbanisation, Chile’s most established cities
innovation and connect up the different will be especially well placed to bridge the gap with the region’s leaders. They can build
2. Relatively efficient and innovative public
parts of the ecosystem on an already capable public transport backbone and can work to scale existing mobility
transport systems that can underpin a shift innovations, pilots and testbeds in order to accelerate modal shift and decarbonisation.
to more sustainable modes of travel 2. Ensure that the scientific and research
community have access to the resources But Chile’s smaller and medium-sized cities also have great potential to become competitive
3. Less rapidly sprawling built forms that ‘middleweight’ cities in the future Latin American system. The extent to which they are able
needed to commercialise ideas and create
can support more examples of at-scale to make progress on the big agendas of the day – including decarbonisation – will depend
innovation spillovers
realisation of testbeds, pilot projects and on their ability to build the confidence and resources necessary to underpin more ambitious
promising urban innovations 3. Unlock new sources of finance and new strategies, and to leverage their capable universities and track record of citizen engagement
tools to mount even more compelling and to deploy new innovations.
ambitious strategies24 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 25
Other medium-sized Latin American cities in regional context
Outside of Colombia and Chile, many other medium-sized Latin American cities are beginning to Section 1.3 – The opportunity to leverage UK expertise
make strides towards re-imagining their infrastructure systems, diversifying their economies, and
asserting stronger ambitions for a net zero future. in the journey to net zero
Introduction
The UK was the first nation to industrialise and urbanise, and one of the first nations to experience
de-industrialisation and urban decline. The UK is now leading a cycle of low-carbon re-urbanisation,
both at home and in particular through world-class capabilities of companies that have understood
Figure 10: The
that sustainable net zero cities require integrated approaches.
journey of selected
medium-sized
As a source of solutions and innovations, the UK is on a path to becoming a distinctive net zero
Latin America cities market in that it simultaneously possesses:
across the three
main opportunity • World-leading sector-specific capability in areas essential for financing and building net zero cities
areas, in 2020
in an integrated way.
• A competitive ‘first mover’ advantage in niche technologies and place-based innovations that can
be scaled globally to city governments and users.
• Research, insight and applied urban experience in addressing a wider suite of implementation
agendas that support the net zero urban transition.
• Know-how around systems integration, breaking down siloes, and creating the regulatory and
policy environment needed to spur change.
• Experience at the UK city level of seeking to innovate around efficient and low-carbon
city-building despite significant institutional deficits and place fragmentation. The UK’s
own institutional context has spurred UK cities to develop distinctive appetite for net
zero-related collaboration, innovation, sharing practices, and internationalising their
Source: The Business of Cities and Connected Places Catapult, based on composite performance. Colombian and Chilean cities companies and reputation.
highlighted in orange. See Appendix for full details of the indicators that comprise each of the three opportunity areas.
These can be mapped in the following visual:
The majority of medium-sized Brazilian, strengths and on acquiring the support they
Peruvian, Mexican and Ecuadorian cities need to innovate around key agendas (e.g.
highlighted above inherit urban forms that housing, citizen engagement), scale existing
prioritise private cars and are less well pilots and demonstrators, and develop a
connected by public transport and digital more resilient jobs base.
infrastructure. This confirms the imperative
Where many of these cities have an
to establish investments and spatial planning
advantage is where their medium size enables
tools to address digital and mobility gaps and
a more integrated development approach
to undertake and implement bold system-
and organised ambition. Niteroi stands out
changing reforms.
as an example of a city being nimble on
Most of these cities (although Joinville agendas allied to decarbonisation. Meanwhile
and Florianópolis are to a limited extent many cities – from Arequipa and Cuenca to
an exception) do not yet have mature or Londrina and Hermosillo – have some of
specialised innovation economies, and the ‘Goldilocks’ scale advantages to become
have a less visible track record of utilising capable partners and customers in the next
knowledge and research assets or translating cycle. The main challenge these cities face
and commercialising them into large job- is around unlocking the financial and fiscal
producing companies. In many of these tools and collaborations needed to execute
cities, the focus for the next cycle may need compelling strategies and to continuously
to be on connecting up the existing industry drive improvements.
Medellín, Colombia26 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 27
The UK’s core net zero export advantage Sources: Press
releases and media
The UK’s cities are also leading the charge for net zero internationally and despite limited
articles. 8 capacity are growing their reach and influence on net zero agendas (see below).
Business Models,
New Technologies Behaviour Change, Policy Leadership
Capacity Building
& Services Planning and & Innovation
Systems Integration
Model B2B, B2C, B2G B2B, B2G G2C, R&I C2C, G2G
Financing the Net • Financing green cities •P ioneering Green • Green finance • Financial regulation
Zero Future • Green bonds Investment Bank education and training and standards
•Platforms to simplify models • Enhancing bankability • Applying track record
investing in green • Digital marketplaces of projects of climate-related
$
•D esign of public • Project design and financial disclosures
private partnerships communication
• Advice broker for local
banks and firms
• Green bond market
intelligence and
advisory
Glasgow can become the city of our
times, on the issue of our times. The
launch of Sustainable Glasgow can be
Low Carbon Urban • Advanced battery • Creation of flexible • Diverse energy • Energy market a landmark in our race to Net Zero.”
Energy storage (silicon, energy networks research base design and regulation Susan Aitken,
Glasgow City Council Leader
lithium-sulfur) • Systems engineering • Footprinting, target expertise “We have been taking a lead in the
• Flexible and affordable • Optimisation and setting and climate • Applying high battle against climate change and [the
Belfast Resilience Strategy] will enable
solar power solutions integration of smart action planning regulatory ambition us to ensure a collective response.”
“In Newcastle we have made
• Carbon Capture and grid technologies expertise Frank McCoubrey, Mayor of Belfast
no secret of our bold ambitions
Storage • Digital technologies • Demand-side to be Net Zero by 2030.”
Nick Forbes,
• Renewable energy for energy efficiency management and Newcastle City Council Leader
optimisation and distribution energy storage
optimisation
Clean Urban Mobility • EV hardware • Design of subscription • Design of PPPs • Pioneering Low
“Cities and city-regions will make the
and supporting services for metropolitan Emission Zones difference on climate change and, in
infrastructure • Systems integration transport systems and setting rigorous decarbonising by 2038, Greater
“Offshore wind in Liverpool Bay has Manchester can create a blueprint for
• Smartphone apps and • Diverse research base vehicle emissions every other city in the world.
helped make the UK the largest
mobile payments for next-generation standards producer of wind power in Europe.” It wouldn’t be the first time.”
Steve Rotherham, Andy Burnham,
• E-Freight technologies mobility • Proactive adoption Mayor of Greater Manchester
Mayor of Liverpool City Region and
of net zero urban Acting Mayor of Liverpool
mobility solutions and
“[We are] pushing ahead with the most
modal split initiatives
“The new [Zero Carbon Homes] ambitious plans to tackle air pollution
• Integrated transport Taskforce will help to think about how of any big city in the world.”
authorities housebuilding can tackle the climate Sadiq Khan, Mayor of London
emergency we are facing and help the
region reach its net zero goal.”
Andy Street,
Low Carbon Urban • Architectural design • Integrated approaches • Tools and frameworks • Implementing bold Mayor of the West Midlands
Built Environment • Digital Twin and masterplanning for planning, delivery net zero city-level
technology • Whole life cycle, and integrated plans
• Building Information circular economy governance • Encouraging carbon
Modelling (BIM) approaches literacy
• Digital technologies
for urban service
delivery
• C ivil engineering
expertise
• Green construction “Bristol City Council and its partners are
techniques hugely ambitious for cutting emissions
and making our city more resilient, as
shown in our One City Climate Strategy.”
Marvin Rees, Mayor of Bristol28 The Path To Net Zero In Latin American Cities The Path To Net Zero In Latin American Cities 29
UK net zero SMEs Figure 11: Illustrative chart to map a sample of UK startups and SMEs in net zero-related
sectors and their potential fit with Latin American cities’ net zero needs. Chart is indicative and
has not been verified by the businesses themselves.
The UK is home to exceptional growth-oriented SMEs with niche capabilities and experience
to support cities to shift more rapidly towards net zero. These include areas such as smart
streetlighting, lithium-ion battery storage, electric vehicle charging infrastructure and
subscription models, and mobile ticketing and payments-as-a-service, where the UK is Strong initially
observed fit with Connected
rapidly establishing itself as a global pacesetter. Carbon Trust
Latin American Energy Carbon Greyparrot Green Urban
cities’ needs Osprey Chain Urban Electric finance
Elmtronics Telensa
ZPN Energy Networks Eight19
Connected Citymapper
HumanForest Kerb Beryl Spark EV Azuri Urban energy
Opportunities Pod Point Zenobe Vivacity
Arrival Technology
Solar PV
Technologies Oxis Energy
Ember core Labs Addionics SEaB Acceleron Urban mobility
Beringar Nexeon ENIAN Tevva Energy
As observed in the sections below, UK SMEs have many globally relevant capabilities in sectors Awen Open Energi Emex
Boxergy elmo Masabi Electron Motors Urban built
LimeJump Future Planet
essential to accelerating progress to net zero, especially in the ‘softer’ domains related to Alchera InstaVolt Project Nozama.green environment
Etopia ENSO Renovagen Capital
regulation, incentives, systems engineering and integration. Their export and scalable expertise Petalite Vortex IoT MacRebur
Active Antonym Upside Emitwise Naked Green Small
Building Energy
potential will in future benefit from: Centre Onto
Swytch Energy Consult businesses*
Global Pavegen
Sero Airex Surple YAYZY Route Scaling SMEs**
Konnect
• A co-ordinated system to alert SMEs to non-UK language advertised opportunities, and to Tepeo Retrofit Spark Bioregional
Pivot Works Change Bulb Carbon
support them to respond efficiently Energy Wondrwall Clean
Less immediately HELPFUL Clim8 Zeigo Solutions
• Ongoing support to UK cities to build capacity and resources to mobilise around net zero visible fit with
Invest Bboxx
and showcase progress in an internationally relevant way to overseas decision makers and Latin American
investors cities’ needs
• More structured support to share UK global expertise and to combine the different sectors that Domestic Visible appetite Established Observed
contribute to a low-carbon system into a smart integrated offer orientation with for global growth presence in presence in
global promise emerging Latin American
• Support for UK net zero expertise as a package, how it can complement existing capabilities markets markets
in cities, and link to supply and delivery on the ground
• Improved institutional machinery to support small UK companies in sustained city-wide Source: The Business of Cities research. Note: The shaded box marks the companies that seem on initial evidence to have the highest
potential to help Latin American cities accelerate towards net zero. Other businesses may well have specific contributions to make not
partnerships abroad accounted for in this short review. The fit with Latin American cities needs has been assessed through research into a range of cities
in Latin America, with a particular focus on their inherited assets, ambitions to become net zero and particular sectors, platforms and
• Greater alignment between the geometry of institutions seeking to export services and know- projects being prioritised to catalyse decarbonisation. *Small businesses = up to 50 employees. **Scaling SMEs = 50-250 employees.
how and the geometry of solutions required
Opportunities in Latin America
As cities across the world transition towards a net zero goal in the finance, energy, mobility and
built environment sectors, more opportunities are being created for UK SMEs to export their
technology and services, business models, and policy and regulation expertise. This briefing
note includes examples of partnerships that are already underway, with a particular focus on
cities in Latin America. UK Advantage 1: Financing the Net Zero Future
An indicative scan based on publicly available company databases, practitioner
recommendations and existing UK export missions points to a broad range of opportunities for Examples of scaling SMEs Examples of key knowledge
Sector Major players and enablers
UK SMEs to serve and support the transition to net zero in Latin American countries, based on and small businesses institutions
their current market presence and offering to markets and users in Latin American cities (see
Green Finance Institute
the illustrative chart below).9 CarbonChain, Clim8 Invest,
Green Investment Group UK Centre for Greening
In general, the most important areas for mitigation in Latin American cities – particularly smaller Barclays Electron,
Green urban Finance and Investment
and medium sized cities – are around decarbonising transport, energy and waste.10 For example, Future Planet Capital,
finance HSBC HELPFUL, Regal 38I83, University of Oxford
recent data suggests that the mobility sector accounts for nearly half of Brazil’s urban abatement Natwest Sustainable Finance
Spark Change, ENIAN
potential to 2050, and that throughout Brazil around 40% of cumulative abatement potential is Programme
held in cities with fewer than 300,000 inhabitants.11You can also read
