The speed and scale of urbanizationprovide an unprecedented opportunity in the coming years toinvest in clean energy technologies to contain carbonemissions from the country's sprawling cities.Therefore, supporting low carbon cities is one of thegovernment's top priorities. Shanghai municipal andchangning district governments are firmly committed to thetransition to a low-carbon city and requested for the WorldBank's support in making changning district andShanghai leaders in designing novel and efficient ways toachieve carbon-intensity-reduction targets. This reportdocuments the methodology of and key findings from applyingabatement cost curves and scenarios to set low-carbontargets and define cost-effective low-carbon investmentprograms in Changning district, Shanghai. At the request ofchangning district government, the Bank team supported aShanghai energy conservation institution, assisted by aninternational firm, in conducting a comprehensive survey ofbuildings in Hongqiao area in the changning district, and indeveloping carbon dioxide (CO2) abatement cost curves toidentify the abatement potential, cost, and ease ofimplementation of various mitigation measures. Threealternative abatement scenarios were developed to establishan ambitious low-carbon target for Hongqiao area. The use ofCO2 abatement cost curves, bottom-up investigation surveys,and ease-of-implementation considerations for defining aninvestment program to reduce CO2 emissions were the first ofits kind at the time. The abatement cost curve developedunder this upstream analytical work allowed the districtgovernment to make informed decisions about medium-termtargets for CO2 abatement and to identify priority actionsand investments to meet them. This study also provides thesolid analytical underpinning for the design of the WorldBank and Global Environment Facility (GEF) green energy forlow-carbon city in Shanghai project. It includes thefollowing chapters: executive summary; the objectives: 12thfive-year plan carbon intensity reduction target and beyond;the methodology: a bottom-up and comprehensive approach; thebottom-up survey: data collection and identification ofabatement technologies; the abatement measures: carbonabatement cost curves; the abatement priorities: abatementtechnologies ranked by cost and ease of implementation; thelow-carbon targets: abatement scenarios for 2015 and 2020;from abatement cost curve to implementation: green energyfor low-carbon city in Shanghai project; and thesignificance: potential replications in other cities.
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