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The IEA has estimated that over the next four decades US$31 trillion will be required to promote energy efficiency in buildings. However, the opportunities to make such investments are often constrained, particularly in contexts of austerity. We consider the potential of revolving funds as an innovative financing mechanism that could reduce investment requirements and enhance investment impacts by recovering and reinvesting some of the savings generated by early investments. Such funds have been created in various contexts, but there has never been a formal academic evaluation of their potential to contribute to low carbon transitions. To address this, we propose a generic revolving fund model and apply it using data on the costs and benefits of domestic sector retrofit in the UK. We find that a revolving fund could reduce the costs of domestic sector retrofit in the UK by 26%, or £9 billion, whilst also making such a scheme cost-neutral, albeit with significant up-front investments that would only pay for themselves over an extended period of time. We conclude that revolving funds could enable countries with limited resources to invest more heavily and more effectively in low carbon development, even in contexts of austerity.

One of the major challenges decision and policy makers face when trying to introduce sustainable food waste management strategies is to isolate high value waste material. In our paper we assess whether it is logistically, economically and socially feasible to isolate exhaust coffee grounds from the catering industry in one British district and use them as raw material for a novel process to produce alternative high added value products in a near-perfect circular economy cycle making use of reverse logistics and generating near-zero waste. We chose coffee as the product because it is the most traded food commodity in the world, and the second most traded commodity in general, which makes the impact of the outcomes particularly significant. Due to resource and time constraints we had to limit the range of high added value products and to constrain the geographic area, hence we focused on the production of high quality compost for the amateur and professional growers market and on the geographic catchment area of the York municipal waste collection service. To do so, we developed a series of theoretical scenarios corresponding to the different possible logistic and process options that stakeholders could identify and we evaluated the economic indicators. We conclude that the process is technically feasible with available technology within current infrastructure and modest investments and the economic case is very attractive to investors. The outcomes of our research can be used as a model for similar developments in other geographical areas.

Cities are major contributors to global emissions, producers of waste and consumers of resources such as energy, water and food: implementing green development strategies is hence a core challenge of modern city-planning. The attention of research has been focusing on the development of energy efficient, low carbon strategies, yet city decision-makers need truly integrated approaches, as the one proposed by the water-energy-food Nexus. The purpose of our paper is to investigate whether it is possible to take one step in this direction by extending existing approaches to energy efficiency strategies to progressively include other priority resources, in particular water. To test this hypothesis we have taken a robust and well accepted methodology, the ELCC (Economics of Low Carbon development strategies for Cities) developed by SEI and CCCEP, and we have extended it to the case of demand side water efficiency strategies for cities. We have then applied the adapted ELCC framework to the case study of the domestic sector of the city of Bologna (Italy), identifying and prioritizing several efficiency measures. Measures were evaluated through their capital investment, annual values of savings, payback period and reduction in consumption, and then aggregated in different scenarios in order to highlight potential urban investments and to showcase a possible approach to the prioritization of demand side water efficiency measures. The results show that, with an upfront investment of € 17 million, a feasible subset of Bologna’s households could be equipped with five selected cost-effective measures, generating annual savings of € 10.2 million and reducing the total domestic water consumption of 34% by 2020 compared to the 2012 initial value. With additional € 28.5 million, households could be equipped with more costly appliances reaching an overall water reduction of 37% by 2020. Our findings confirm that it is possible to successfully extend current approaches to urban energy efficiency strategies to include demand side water efficiency, adding an important building block to the construction of an integrated Nexus-based approach to green development strategies at the city-level. We encourage further tests to confirm the robustness of the methodology.

What is the most effective and efficient way to decarbonize a city? There are hundreds of low carbon options available and although they present a significant opportunity to reduce energy bills and carbon footprints there is often a lack of reliable information on their performance. The higher levels of risk and uncertainty that emerge as a result can be a major barrier to action, making it hard to develop a political, a business or a social case for investment in low carbon options. This in turn makes it harder to set targets, stimulate investment, target interventions, develop new delivery mechanisms and so on. To address this problem, we describe the approach adopted in a city-scale mini-Stern review that reviews the performance and assesses the scope for the deployment of hundreds of low carbon options at the city scale. The review identifies the business case for major scale investments in low carbon options at the city scale, examining the investment needs and payback periods associated with different levels of decarbonization. The results of a case study from the UK are presented. These highlight the presence of very significant and commercially viable opportunities for decarbonization at the city scale – and the potential economic benefits associated with exploiting these. However, it also highlights the scale of the challenge and the need for innovations in a number of areas if major scale investments are to be secured and delivered. To push the debate forward, the chapter concludes by proposing ten key steps to deliver major scale investments in low carbon cities.