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Protection notice / Copyright notice© Siemens AG 2008. All rights reserved. Megacity Challenges Stefan Denig Head of Issue Management Siemens AG
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 2 Cities have to face serious sustainablity challenges Mid-2007, 50% of the world population will be living in cities Urbanization Cities directly or indirectly account for 60% of world's water use Increasing scarcity of natural resources Traffic congestion on city streets in Western Europe will increase 188% by 2010 Increasing mobility Cities account for 80% of the world’s greenhouse gases, while covering only 0.4% of earth's surface Growing need for environmental care Malfunctions of critical infra- structures pose high risks to urban economies: in 2003 3-day power outage in New York City caused loss of 1 bn USD Growing demand for safety and security Urban air pollution causes an estimated 130,000 premature deaths each year in developing countries (Source: WHO) Growing demand for health- and elder care Until 2030, 90% of the world's population growth will occur in cities (Source: UN) Demographic change
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 3 Urban development is a key topic of Siemens’ research programs Research approach Research project undertaken with McKinsey & Company and the Economist Intelligence Unit Describes a series of technological levers of varying effectiveness, and with different cost implications, which can all contribute to greater environmental sustainability in cities Looks at financial and other implementation barriers to these technologies as well as selected strategies to overcome them Sustainable Urban Infrastructure Global research project undertaken by MRC McLean Hazel and Globescan, with the support of Siemens More than 500 public and private sector experts from 25 global cities interviewed Shows how challenges and solution approaches are prioritized for five infrastructures (transpor- tation, energy, water, health, safety & security) as well as for city governance and finance Megacity Challenges
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 4 Megacity challenges: Survey of megacity decision makers in worlds’ 25 largest cities n=522 across 25 cities during Oct./Nov. 2006
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 5 Importance for Economic Attractiveness Unprompted Percentages (n=522) Transportation Seen as Major Driver of City Competitiveness (Latin America 21%) (Africa 13%) (Latin America 21%) (India / China 11%) (Asia 9% and Latin America 8%) (India/China 12% and Africa 10%) (India/China 12% and Latin America 6%)
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 6 Environment in Top Tier of Infrastructure Priorities Need for Investment Average % of “Very High” Across All Cities
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 7 Environment matters... Mass Transit is the Priority Predicted by Transport Experts Strong Role for Renewables Predicted by Electricity Experts
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 8... but may be sacrificed for growth Views of Knowledgeable Stakeholders
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 9 Cities emphasize supply over demand management With demand constantly outstripping supply, there is a strong case for wider adoption of demand management strategies Solutions to Transportation Problems Unprompted Mentions of Transport Experts (%)
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 10 Solution approaches: It’s not all about money, it’s about management Political boundaries and silo-based thinking get in the way of integrated solutions to infrastructure challenges in metro areas Reasons for Problems City Managers Have to Face Unprompted Mentions of Knowledgeable Stakeholders (%)
Oktober 2008 © Siemens AG / 2008. All rights reserved Page 11 Public sector must lead and control, but a role seen for the private sector Strong support for public ownership of infrastructure (except electricity) Private sector operation valued for delivering efficiency, ahead of funding Role of Public Private Partnerships and the Private Sector Percentage agreement by stakeholder group
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