JESSICA and EIB financing of Cities Working with the EIB Katowice, January 11 and 12, 2007 THINK REGIONALLY AND ACT LOCALLY Towards More Resilient Cities Brian Field Urban Planning and Development Adviser European Investment Bank JESSICA and EIB financing of Cities Frank Lee January 2007 The Urban Dimension of Cohesion Policy European Week of Cities and Regions Open Days Brussels, 11th October 2011

PLANNING, SUSTAINABILITY & THE URBAN AGENDA Sustainable development has finally moved from the periphery to the mainstream of the urban agenda.

THE LEIPZIG CHARTER SUSTAINABLE COMMUNITIES Innovation and education policies Improve physical environment High quality public spaces SUSTAINABLE COMMUNITIES Local economy and labour market policies Efficient affordable transport Regenerate deprived neighbourhoods Infrastructure networks and energy efficiency Training for children and the young

INVESTMENT IN SUSTAINABLE COMMUNITIES KNOWLEDGE INFRASTRUCTURE SUSTAINABLE COMMUNITIES ENVIRONMENT SOCIAL SKILLS REAL ESTATE DEMOGRAPHIC LOGISTICS INTANGIBLE TANGIBLE CITY ASSETS

OVERCOMING FRAGMENTATION INTEGRATED PLANNING An integrated approach to urban development for the effective improvement in the socio-economic conditions of regions requires the identification of cooperating elements of infrastructure investments with the evolution of social capital that should be developed simultaneously in the areas where applied.

THE BANK RESPONSE Traditional Lending Structured Finance An Implicit Action Plan for Cities 2007-2013 Traditional Lending Structured Finance Financial Engineering Technical Assistance Networking/Partnering Targeted investment in more sustainable urban regeneration and renewal

THE FOUR KEY ELEMENTS Technical Assistance. Provide technical support to prepare bankable projects, e.g. JASPERS, ELENA etc. Traditional Lending. Increase lending by encouraging greater use of framework and global loans, as well as project-specific investment loans. Financial Engineering. Support the use of new financial instruments such as JESSICA and JEREMIE. Structured Finance. Taking more risk by extending the scope of the Bank’s Structured Finance Facility (SFF) to include urban investments.

SUSTAINABLE PROJECTS The EIB’s « three pillars » Eligibility = consistency with EU priorities Technical quality and economic soundness Financial viability and adequate security Complies with EU procurement and environmental and social protocols A project assessment with many facets 8

FLEXIBILITY & RESILIENCE The sustainable cities paradigm increasingly includes much stronger emphasis on the concept of resilience, i.e. the ability of cities and city systems to respond and/or rebound quickly from global shock and other unforeseen eventualities.

PRINCIPLES FOR RESILIENT CITIES Resilient cities are prepared, i.e. they are able to attract long-term investors who can continue to build value over the long-term as they adjust and succeed in changing environments. The debate has focussed on the twin track of “continuity” and “adaptability”, where continuity relates to a city’s ability to avoid and manage major shocks while adaptability constitutes a city’s ability to respond to major trends while spreading and managing their risks.

COMMUNITIES, GOVERNANCE & LEADERSHIP Truly sustainable and resilient cities and communities will be those where informed political leadership and municipal governance are accompanied by a balanced approach to environmental, economic and social well-being.

THE COMPETITIVE CITY CIRCUS Two themes appear to permeate the resilience debate and have obviously informed policy-makers, i.e. an economic imperative for cities to compete in what is fast becoming something of a circus, and the perceived importance of big/mega projects often designed by signature architects (so-called global destination projects). City leaders need to avoid an ill-considered rush to compete and, when eventually doing so, should focus on their comparative advantage and give priority to investment in projects that differentiate their offer from that of their competitors.

COMMUNITIES MATTER The sustainability and resilience debate is not just about economic advantage, even when tempered with a slick gloss of eco-branding, it’s about communities. It’s about changing the way people and societies behave. The sustainability debate ignores the societal content at its peril. Sustainable cities need sustainable communities, and to engage communities in the sustainability agenda, people need to feel involved and have a genuine say in decision-making. Astute leaders will ensure that they do so.

THINK REGIONALLY AND ACT LOCALLY Resilience will be founded, as it always has been in the past, upon strength and quality of political leadership, and the collective, mutually supportive response of urban communities and neighbourhoods, and this will flow directly from new and emerging governance structures which genuinely involve everybody in setting the agenda…(after Charlie Hughes of Smart Futures, The Future Cities Forum, December 2010).

EIB CONTACT INFORMATION Brian G. Field Urban Planning and Development Adviser European Investment Bank 100 boulevard Konrad Adenauer L-2950 Luxembourg Tel: +352 4379 83063 Fax: + 352 4379 62599 Email: b.field@eib.org