124 J. JUPESTA AND T. WAKIYAMA
can be achieved at the city level. The outcomes will be used as guidance on
ways in which cities in selected countries can play a key role in the green
growth agenda by stimulating growth through smart investment in urban
infrastructure, that is, by building physical infrastructure, introducing
fi nancial and tax incentives, ensuring energy supplies, and increasing
awareness of sustainable lifestyles, which should involve systematic institu-
tional governance through coordination between involved institutions
(national and local governments, local communities, academics, and
industries).
With regard to China, the author proposes the following policy recom-
mendations for the city of Shanghai (which are in line with pathways to
achieving low-carbon city targets):
- The Chinese central government and relevant local governments
must update current economic incentive policies. The protocol for
approving green buildings must be simplifi ed, and costs must be
reduced. - The energy performance contract may serve as a good tool for
involving private businesses. - Carbon trading and carbon taxes can be adopted as part of eco-
nomic incentive policies to promote green building development.
Carbon trading schemes such as the Clean Development Mechanism
(CDM) can help developers overcome investment barriers, as costs
and risks associated with employing technologies and knowledge
can be reduced signifi cantly. Investors can pay off initial extra costs
within a manageable risk range by selling carbon reduction credits
granted for implementing green building projects. In fact, different
partners such as developers, energy companies, and even real estate
management companies can enjoy benefi ts under carbon trading
mechanisms of China’s building sector.
In Japan, Yokohama represents a government ordinance–designated
city that displays increasing trends in terms of population and energy
consumption levels. In 2007, the city established an execution plan for
global warming countermeasures; based on that plan, the city established
a 25 % reduction target for total GHG emissions by the 2020 fi scal year
from 1990 levels as a midterm target and an 80 % reduction target for
- To achieve these targets, the city initiated a series of activities using
various fi nancing methods focused on household and commercial energy