Public-private partnerships in sustainable development: the Biogas Väst case study Kim Cornelissen Master Degree in Urban Planning School of Management, UQAM, Montréal Göteborg, September 11 2007 Context.
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Public-private partnerships in sustainable development: the Biogas Väst case study Kim Cornelissen Master Degree in Urban Planning School of Management, UQAM, Montréal Göteborg, September 11 2007 Context of the research • Political issues in 2004 i Québec • Public hearings on a by-law proposal on sustainable development • Public hearings a by-law proposal on Public-Private partnerships (PPP) Research question In a context of globalization, can public-private partnerships between the City and the Industry be used in a vision of sustainable development? Axis of public hierarchy A Public sector doesn’t share its power with private sector or NGO (hierarchy) repression rivalry competition Does not induce use of PPP B Public sector shares some responsibilities with private sectors or NGOs contractual C Public sector shares equal power with private sector or/and NGOs (no hierarchy) cooperation third party Contract PPP Source: adapted from Proulx, Bourque and Savard, 2005 collaboration complementarity Consensus PPP Public-private partnership (PPP) Contract Consensus Fixed project Development project • Fixed planning • Fixed period Legal Agreement Public services Consortium Investments in project Alternate choice • Flexible planning • Flexible period Agreement based on trust Common goal Network Investments out of the project Interdependence Example of a Contract PPP (Arlanda-Stockholm rail link) Public partner: Swedish Government Private partner: Arlanda Link Consortium Alstom, John Mowlem, NCC, Siab and Vatenfall Figure 2: Example of a Consensus PPP (USAid Campaign to Reduce Child Mortality) Private Public NGOs Source : UsAid, Unicef, Unilever et al. 2002:2 PPP involving Cities • Contract PPPs • Objectives • Some Uses: •Infrastructures (ex: roads, schools, jails) •Public services (taxes, public transport) •Utilities (ex: water, energy) • Consensus PPPs • Objectives • Some Uses: •Social issues (ex: health, education) •Environment (ex: awareness campaigns) •Innovation (ex: new markets) PPP between the City and its Industry •Involvement of the industry in City projects • Government Support (infrastructures and education) • Laboratory for new products and services • Attractiveness for high-skilled employees • World-City Status • Objectives • World-City characteristics • 2nd city status: the post-industrial city Sustainable Development Definitions IUCN (1980) Brundtland (1987) A development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable Development in City Planning Local Agenda 21 Planning public population private NGOs Projects public private NGO: non-governmental organization Projects public NGOs Projects PUBLIC Role of actors in Sustainable Development PUBLIC PRIVATE Environmental and social questions MUST be addressed Environmental and social questions CAN be addressed The Biogas Väst Project Source: Biogasmax Partners in Biogas Väst Groupe TRUST (1994) Göteborg Volvo Cars Corp. AB Volvo BRG, Göteborg Energi, Traffikkontoret BIOGAS VÄST (2000-2005) Coordination: Business Region Göteborg Västra Götaland Göteborg and 11 other municipalities Volvo Cars Corp./AB Volvo, LRF Göteborg Energi, Traffikkontoret, Gatubolaget, Renova, Gryabb Vägverket FordonsGas Regional Development International Development “Steering Committee” (2003) Biogas Cities (2005) Coordination: Business Region Göteborg Västra Götaland/Göteborg/ municipalities Renova, Traffikkontoret FordonsGas, LRF Coordination: Business Region Göteborg Västra Götaland/Göteborg Volvo Cars Corp./AB Volvo Göteborg Energi, Traffikkontoret FordonsGas Interviews (19) N Previous work or actions in environment Previous work with other partners Private sector 4 2 0 Public sector (elected) city/region 3 3 1 Public sector (employed) regional and national 4 2 0 Parapublic sector 3 1 1 Others (civil society) 5 3 1 19 11 3 Total PPP definitions “Complete cooperation…not the legislation, it’s something else .” * “Strategic partnership where municipalities, the public organizations and the private organizations take part on an equal footing.” * “When, as a municipality, you don’t want to wait for public money so you ask private investments. Definitions of Biogas Väst as a PPP “Cooperation project between the companies and the public sector…with a vision…some projects and the same ideas that we will develop the market within this area…” * “Cities and the private partners can go together because we need each other, for the legitimacy of all of us. * “A highway construction project, it’s more of a financing system. Biogas Väst, it’s more like a cooperation project.” Public-private partnership (PPP) Contractual Cooperative Fixed project Development project • Fixed planning • Fixed period Legal Agreement Public services Consortium Funds in project Alternate choice • Flexible planning • Flexible period Agreement based on trust Common goal Network Funds out of the project Interdependence Göteborg and Volvo’s Interdependence 1. 2. 3. 4. 5. Dependency on the transport industry Model “citizen” for employees Shared credibility and legitimity Shared responsibilities Shared image: “green” and innovative “Think Global, Act Göteborg!” Göteborg wants to be seen as… National and International Leader Leader in sustainable transport Leader in environmental industries Exceptional Quality of Life (Event City) Brundtland definitions “In small steps, we’re gonna make the World more and more healthy to visit: out with the bad, in with the good.” * “A technology which doesn’t destroy it for the future generations.” * “Finding possibilities for people to transport themselves in the future, without questioning the environment.” IUCN definitions “The possibility of combining the environmental progress, the industrial opportunities and the city growth.” * “A development where you combine the needs of men with the care of the Nature. * “The economy, the ecology and the social. None of them can be alone.” Environmental Impacts of Biogas Väst Benefits CO2 reduction Replacement for petrol Alternative to ethanol Smog reduction Benefits or Challenges Multiple Biogas Production Sites can be good for local energy independence or there can be a excess of infrastructures in the future Economic Impacts of Biogas Väst Benefits Local jobs offer Laboratory for new products/services Export opportunities Support of local economy Challenges Small impact in the global environmental issues Insufficient biogas production Social Impacts of Biogas Väst Benefits Increase of individual Awareness Increase of Individual Empowerment Improve health conditions Independence from fossil fuels Challenges Research on health issues (biogas emissions) is required Lack of women in the energy sector Comments on the absence of citizens and NGOs in Biogas Väst Population not targeted There should be inclusion of NGOs (i.e.women/ecologists groups) No participation without investment Planning Sustainable Development (public) Local Agenda 21 Planning public private citizens NGOs Projects Projects public private voters consumers public NGOs Projects PUBLIC Role of Partners in Biogas Väst Göteborg’s Aalborg Charter Planning public citizens private NGOs Biogas Väst PPP public voters private consumers Planning: LA 21 Projects in neighbourhoods public citizens NGOs private Weather station public Conclusion PPPs in sustainable development can be used between the City and the Industry if… type is consensus it complies with Brundtland and IUCN it complies with LA21/Aalborg Charter More research needed on… Contract public-private partnerships in sustainable development More research needed on… Second-cities strategies to become World Cities More research needed on… Sales and political support to sustainable partnerships “Why should we pay if we do something for the environment? We should pay less!”