A new approach for a balance between economic development and energy infrastructure became the focus of discussion at the Innovate4Climate event recently held in Singapore. New approaches and ideas are imperative in financing the innovative climate-smart development. One of the most recommended options is using Key Index Approach. This is particularly true for infrastructure and energy technologies. They must be at the heart of sustainable development.
Of course, every city has different needs, in terms of social, economic, and environmental aspects. The conditions are widely varied. One that works in a city may not for in another. The city planners need to recognize this well.
Key Index Approach for a Balanced Growth
Mitsubishi Heavy Industries (MHI) is working a program that uses Key Index Approach. The KIA focuses on energy, as a way for helping the governments, developers, and investors to identify a sustainable way for developing a city or a region. The KIA approach targets the economic, social, and environmental priorities.
The question is “What is included in the Key Index Approach?” MHI notes that the economic, social, and environmental priorities are wide ranging. They include health and education, access to public transportation, electricity, prices, digitalization, energy consumption, as well as carbon dioxide emission. The KIA helps the city planners to identify a balanced between investment in infrastructure and the use of technologies in achieving the development goals.
The indices will determine the development strategies. For example, a city that has a problem with environmental indices may favor an investment strategy in environmental sectors like renewable energies, instead of economic infrastructures. The same rule applies for economic or social indices. In this way, the city planners may recommend investment in renewable generation infrastructures.
Steps to Creating Key Index Approach
There are three main steps to creating the Key Index Approach. They include evaluation and visualization, determining the gaps, and recommending the solutions:
Evaluation and Visualization
In this step, the city planners evaluate and visualize the need for key development index in the following steps:
- Developing 3 indices for economic, environmental, and social priorities. They must be weighted based on the city’s priorities.
- Inputting related statistic data and visualize the indices to determine the current positions;
- Evaluating the balance of economic, social, and environmental priorities.
Understanding the Gap and the Effect
This step includes setting the target indices for the three priorities. Then, the tea, can stimulate the future indices based on the development goals and see the effects on the three aspects of priority.
Finally, the team can make a list of high-quality infrastructure to meet the prioritized needs. Then, make sure that the priorities are linked to the development plan. In the end, the planners need to monitor the public data (statistic data) to see the progress in the achievements of Key Index score.
The Key Index Approach is expected to be a tool for global progress. The MHI is collaborating with the University of New South Wales to work on the Key Index Approach. The results are still to come in a near future.