Why is it so important to decarbonize cities? And how can we do it?

The first question is easy to answer: The cities in which more than half of us live account for nearly two-thirds of the CO2 emissions that lie at the root of our planet’s looming climate crisis. Skyscrapers in megalopolises, shopping malls, SUVs in the streets, air conditioners in a growing number of places throughout the globe – all consume a vast amount of high CO2-content energy.

The answer to the second question is to take an integrated approach: leveraging clean electrification and digital technology to harmonize urban energy systems, while also thinking beyond individual projects to consider their impact within the surrounding communities and the built environment.

In fact, urban energy, transport and building infrastructures are gradually becoming greener: There are more electric vehicles on city streets, better water treatment and recycling schemes, and more solar panels on rooftops around the globe. According to International Energy Agency estimates, renewables like solar and wind are set to become the largest source of electricity generation worldwide by 2025, supplying one-third of the world’s electricity and ending coal’s decades-long dominance of the global power mix.

All this is, of course, welcome.

But with climate change accelerating, we need more comprehensive decarbonization actions on three fronts. First, we need even more energy to come from renewable sources. Second, we need more cars, heating and other activity to be powered by clean electricity. Third, we need everything from factories, to office buildings, homes, transport systems and consumer devices to become more energy-efficient.

This third lever might not as headline-grabbing as the rise of solar panels or electric vehicles. But it is a big piece of the decarbonization puzzle, with an even larger potential enabled by digital technologies.

Consider, for example, the technologies that make buildings more energy-efficient, by automatically adapting the amount of cooling, heating or lighting to occupancy levels at any given moment. Or digital tools that allow the operators of a manufacturing site in Sweden or a public utility in India to run their operations or distribution systems more efficiently and even remotely, rather than in person (a feature that has proved critical in these times of social distancing and lockdowns).

Imagine how much more we could achieve if we digitally integrate ultra-efficient buildings, public services – e.g. transport or lighting – and electric vehicle charging stations into a wider, highly efficient urban system, delivering better quality services for citizens and accompanying benefits such as local job creation, health, and well-being. Integration and interaction between assets are the key to disrupt the traditional equation of energy and efficiency in cities. An EV battery can store power not only for just one car, but, while a car is not in use, also for the surrounding community thanks to smart-charging infrastructures. Excess power generated by an office building’s or warehouse’s rooftop solar panels might be used to help power the wider neighbourhood.

The technologies, digital tools and data analytics capabilities to enable this efficient urban system already exist, as do concrete examples of such an integrated approach. Therefore, integration and collaboration of systems and stakeholders are the fundamental drivers to accelerate and scale the transition in cities.

Integration of energy, buildings and mobility requires cross-cutting industry collaboration, ranging from utilities and real estate, to technology companies and financial institutions. City- and state-level administration can enable and facilitate such collaboration through public-private cooperation. The public sector can drive on governance, policy and licensing, while the private sector provides agility, technology and resources. This cooperation can share and balance risks and liability between stakeholders for mutual gains and value creation for the broader community.

All of this comes against a backdrop of great urgency. Epidemics, climate and economic pain have all created unique challenges in 2020. But combating climate change must remain top of mind. Cities lie at the heart of this fight and have now the chance to build back better. We have joined the World Economic Forum in the effort to promote dialogue and mobilize action together with a group of global leaders. As co-chairs of the Net Zero Carbon Cities initiative, our ambition is to accelerate a sustainable transition in cities, supporting mayors in creating value for their communities. It is up to all of us to ensure we become part of the solution rather than part of the problem.

Copyright: World Economic Forum, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License

Table 1: Leading vaccine candidates and their specifications as of 25 October 2020 [N/A: Anticipated temperature requirement for shipment and long-term storage is already 2–8 °C]

Universal vaccine access is already a major challenge in low- and middle-income countries in part due to the lack of fully-integrated, functioning cold chains. Key barriers faced, especially in low-income countries, include insufficient capacity, inefficient and unreliable cooling equipment, inadequate maintenance, insufficient monitoring of systems and products both in transit and when stationary, lack of relevant skills and appropriate training programmes, energy infrastructure deficits, and an absence of suitable financing and effective business models. Combinations of these barriers frequently result in distribution failures that lead to vaccine wastage, missed opportunities for vaccination and insufficient immunization programmes.

Figure 1 demonstrates the typical vaccine flow in routine immunization programmes and equipment found at different levels along the cold chain, from the point of manufacturer down to the health centres and outreach points where the vaccines are administered. 

Figure 1: General structure of vaccine cold chain in routine immunization programmes   

Estimates from 2013 suggest that 46 percent of health facilities in India and more than 30 percent of healthcare facilities in Sub-Saharan Africa do not have access to electricity. At the same time, GAVI, The Vaccine Alliance still estimates that only 10 percent of healthcare facilities in GAVI-eligible countries are equipped with adequate cold-chain equipment. Recent estimates also indicate that more than 25 percent of some vaccines may be wasted globally every year because of temperature control and logistics failures.  

Even if this rate is halved for COVID-19 with new equipment deployments and a 10 percent wastage rate is achieved, it could still account for more than a billion vaccines wasted. The cost of current vaccines lost due to exposure to temperature fluctuations is estimated at USD 34.1 billion annually, not including the physical and financial costs associated with avoidable illnesses. The costs with a COVID-19 vaccine would be a multiple of this and ultimately it will be more cost effective to invest in adequate equipment.

Figure 2: Facilities with voltage fluctuations greater than +/- 15% (%). (The data were collected between 2009 and 2017 in 81 countries across all 6 WHO regions). [Adapted from EVM Global Data Analysis 2009-2018].

A multiple increase in cooling demand

Even in countries with robust vaccine programmes there are likely to be challenges in managing such a high volume of distribution. India for example has the world’s largest vaccine programme and distributes 400 million vaccines a year, immunizing 56 million people.  The Indian Ministry of Health plans to initially immunize 200–250 million people against COVID-19 in six months once a vaccine is available. Assuming a two-dose vaccine, the programme would need 400–500 million vaccine doses, meaning the amount of COVID-19 vaccines to be delivered in six months is equal to the amount of vaccinations currently given annually. Achieving herd immunity would similarly require a three- to five-times increase in volume.  

The challenge does not exist in isolation. Current vaccine campaigns must be simultaneously maintained. UNICEF and WHO estimate that up to 80 million children are at risk of missing out on vaccinations against vaccine-preventable diseases due to the pandemic. Capacity expansion must consider how to maintain existing programmes in consideration of the risks posed by vaccine-preventable diseases (VPD).  

Outreach is a big challenge

Vaccinating the majority of the people in the world poses an extraordinary challenge to all countries but particularly to low- and middle-income countries where the existing cold-chain network is not capable of meeting current demand, let alone handling extraordinarily large quantities of the vaccine in a short space of time while maintaining existing immunization needs.

Furthermore, in low- and middle-income countries, a large proportion of the population live in rural, remote areas and many of the immunization services are provided via outreach. A key challenge for COVID-19 immunization will be last-mile distribution and ensuring that each vaccination site is equipped with both adequate fixed and outreach cooling equipment to maintain the efficacy of the vaccine. The success of the immunization will critically depend on delivering quality vaccines to every community, village and settlement. Geographical barriers and poor infrastructure — such as lack of transportation and bad road conditions — already place burdens on healthcare workers and reduce the ability to deliver frequent immunization sessions. Even in urban settings, using hospitals and other health facilities may not be feasible if they are already overwhelmed by the pandemic.

Figure 3: Vaccine stores that store vaccines at -20°C (%). (The data were collected between 2009 and 2017 in 81 countries across all six WHO regions). [Adapted from EVM Global Data Analysis 2009–2018].

Local conditions need to be understood

There is an immediate need to assess the capacity of vaccine cold chains globally and to put in place robust plans to bolster capabilities where necessary and take opportunities to improve the efficiency, performance and sustainability of these critical distribution systems. These include delivery mechanisms, technologies used and operational logistics, including management protocols, human resources and waste management.

While the volume of capacity expansion may be estimated considering population sizes, local conditions to sustain such expansion need to be fully understood, particularly at the “last mile.” Policy decisions on vaccine cold-chain expansion must assess: the potential of the existing vaccine cold-chain infrastructure to meet demand while maintaining current immunization services; the ability to sustain an expansion; the capacity to integrate modal shifts (drones for outreach) or novel technologies (mobile cold rooms and vaccine portable micro-chillers); the required energy supply; and the presence and appropriateness of alternative cooling facilities and energy sources.

And while each country is quantifying the number of health workers required to immunize its population, we must not ignore the fact that a lack of qualified engineers and mechanics, and inadequate training across the cold chain, will lead to long response times in the case of equipment malfunction, potentially increasing the proportion of broken cold-chain equipment at any point.    

Opportunity for lasting legacy

The opportunity presented by an urgent demand for new cold chains and the re-engineering of existing ones to create a more sustainable low-carbon distribution infrastructure must not be missed. Indeed, as a contributor to green recovery and “Recover Better” policy agendas worldwide, all opportunities for incorporating efficient, sustainable cooling technologies and approaches into equipment procurement, optimization strategies and delivery plans must be maximized to the greatest extent possible.  

While the cold chain is an integral part of achieving immunization targets, it comes with an environmental cost. Including both energy emissions (indirect emissions) and leaks of highly potent HFC refrigerant gases (direct emissions), one estimate suggests that cold chains are responsible for approximately 1 percent of global greenhouse gas (GHG) emissions and can represent 3–3.5 percent of GHG emissions in developed economies. Recent estimates also indicate that the healthcare sector is responsible for approximately 5 percent of global emissions, including refrigerants.

Older equipment used in cold chains can be unreliable and inefficient, while sustainable solutions for health facilities and transport can support COVID-19 vaccination campaigns now and contribute to greater resiliency over time. To minimize vaccine wastage due to unreliable electricity, vaccine programs should be supported by off-grid cooling equipment with temperature monitoring systems. Building on the work of GAVI, more financing for solar-powered refrigerators and freezers can support health facilities in developing countries that suffer from a lack of reliable electricity and often rely on polluting diesel systems. Efficient cold boxes, vaccine carriers and refrigeration units in vans can similarly reduce reliance diesel and high-global warming potential refrigerants.

Leapfrog to new solutions

Given that most of the technologies deployed today will still be in operation in the next decade, the recent emergence of sustainable and data-enabled cold-chain technology allows us the opportunity to leapfrog to sustainable solutions for COVID-19 vaccine deployment that can also deliver resilient and sustainable health cold-chain systems. At a minimum, it is imperative to recognize that new cold-chain capacity should not be based on technologies that are environmentally harmful and hinder the world’s ability to meet targets related to the reduction of emissions of GHGs and other pollutants. Better still, we should go further and leapfrog to new strategies that make progress toward the SDGs.  

Drones are already proving their value for rapid delivery of pharmaceutical products in rural locations. Combined with new mobile rechargeable micro-chillers, they offer new integrated logistics solutions.  At the same time, off-grid mobile cold rooms could enable more cost-efficient long-term campaign approaches. And we have the chance to embed real-time data capability across the system to ensure vaccine quality and chain of custody from the point of manufacture through to the point of delivery and help manage risks and breakages in the system in real-time.

In the short term, it will be the poor who will face the most significant challenges in accessing a vaccine for COVID-19. If a vaccine requires cold storage, sustainable cooling will become a serious issue of equity that underpins equal and fair access to it. As governments and NGOs develop distribution plans, cold chains must guarantee the health response and draw on the most sustainable solutions to build long-term resilience. This will impact all of us for decades to come.  

Take action with the #ThisIsCool campaign. Find out more

We need a Decade of Action

2020 marks the beginning of the final Decade of Action to achieve the SDGs. With ambitious action we can still achieve SDG 7 by 2030. But the next few years will be critical if we’re to deliver an energy transition that is truly inclusive, equitable and leaves no one behind. That is why SEforALL, through our new business plan, is focused on moving beyond advocacy to action by prioritising data-driven decision-making, partnerships with high-impact countries and implementation on the ground.

To help galvanise action, the UN General Assembly has called for a High-level Dialogue on Energy to be held in 2021. This will be the first high-level meeting on energy mandated by the General Assembly in over four decades and will provide the global community with a pivotal moment for increasing action and ambition towards SDG 7 goals.

SEforALL, along with the UN Development Programme and the UN Department of Economic and Social Affairs, will lead this work, including the development of new energy compacts and multi-stakeholder partnerships that aim to accelerate a universal energy transition and access. Ahead of crucial global climate talks in Glasgow, this will be a critical moment on the international calendar for countries, businesses and key stakeholders to raise ambition.

Even before the COVID-19 pandemic hit, progress to meet universal energy access was too slow. Now COVID-19 risks derailing even the progress we have seen unless we act immediately. If we go back to business as usual, and if current trends continue, we will not deliver the promise of universal energy access.

The benefits of investing in sustainable energy are clear: a demonstrable return on investment, a more resilient economy, healthier people and a cleaner environment. Today’s decisions will impact tomorrow’s ability to recover better over the long term. We must hit ‘reset’ and seize this moment to realise our promise of sustainable energy for all.

The World Bank Group's Lighting Africa programme has in many ways contributed to laying the foundation for a vibrant household solar market in Nigeria through its market development programme activities that also includes support for MFIs to provide financing to consumers and retailers in rural areas. A major milestone was achieved in June when the Standards Organization of Nigeria adopted the IEC / Lighting Global quality standards. These standards will play a critical role in providing consumers, the supply chain, financial instructions and investors with the confidence and reassurance that they need to invest and embrace off-grid solutions.

The Nigerian Government is also addressing clean cooking in its plan with a commitment to implement the National Liquified Petroleum Gas (LPG) expansion programme to support the transition from traditional fuels for cooking – such as kerosene and wood – to cleaner LPG fuel. The project will engage with the private sector to support the transition.

Earlier this month, Yemi Osinbajo, Vice President of the Federal Republic of Nigeria, reinforced the country’s commitment to accelerate the transition to clean, affordable, reliable and renewable energy; these were, he said, the “first steps to new jobs and a cleaner, healthier environment”.

Strong foundations

Nigeria already has a strong set of institutions and partnerships ready to support turning this commitment into reality. The country's Rural Electrification Agency (REA) has played a leading role in the pandemic, using its knowledge, network and infrastructure to help deploy off-grid energy solutions that can provide lifesaving electricity access to the more remote health clinics across the country.

REA also leads the Nigeria Electrification Project, which is aimed at increasing electricity access to households and micro, small and medium enterprises (MSMEs), as well as students and patients at federal universities and university teaching hospitals. The World Bank has provided a $350 million facility and the African Development Bank an additional $200 million facility to the Nigerian government for off-grid development as part of the Nigeria Electrification Project (NEP). This investment is expected to leverage over $81 billion in additional funding from the private sector – and in the wake of COVID-19, these investments will become even more important to help speed and scale progress.

Nigeria has also explored another important measure: moving towards cost-reflective electricity tariffs. The instinct may be to undercut the cost of electricity to the consumer as a quick-fix solution to mitigating the economic challenges of the pandemic or gain political traction. However, this can undermine the long-term financial stability of, and investments into, the energy sector. In the long run, allowing cost-reflective tariffs allows utilities to perform better, improve the reliability of their service and increase investments in energy access and clean energy. The Nigerian government has made commitments to increase tariffs to cost-reflective levels through its Power Sector Recovery Program (PRSP), an important foundation for an economically viable – and investment-ready – energy sector.

A moment like this will not come again. Countries that follow Nigeria’s example and invest in sustainable energy as part of an ambitious 'recover better' strategy will be rewarded with resilient economic growth, new jobs, and sustainable energy for all in the long-term.