2023

ENCOURAGINGENVIRONMENTALLYRESPONSIBLE
BEHAVIOURSWhite Paper.

DisclaimerT

he views, opinions, positions and recommendations expressed in this White Paper are solely those of the authors, task
force members and contributors and do not necessarily reflect the views of the U20 or any of its chairs, conveners, andpartners. Many of the references in this White Paper will direct the reader to sites operated by third parties. Neither
the institutions nor the authors of this White Paper have reviewed all of the information on these sites or the accuracy orreliability of any information, data, opinions, advice or statements on these sites.
The White Paper should be referenced as follows:
Urban 20 (2023) White Paper on “Encouraging Environmentally Responsible Behaviours”, India

Encouraging
Environmentally
Responsible
Behaviours
White Paper

Table of Contents

01
02
03
04
05
06

Setting the context
Key stakeholders and sectors fordriving ERB
Designing nudges for behaviouralchangeNudging behavioural change - Energy
Nudging behavioural change - Mobility
Nudging behavioural change - Waste
Management

07
08
09
10

Nudging behavioural change - Water
Nudging behavioural change - Industry
Conclusion
Bibliography

Contributors
U20 ADVISORS
Hitesh Vaidya
Director, National Institute of Urban Affairs (NIUA), India

Nilesh Prakash Rajadhyaksha
Programme Director - Urban Strategy Unit, NIUA, India
Head - U20 Technical Secretariat

Kanak Tiwari
Programme Director - Urban Strategy Unit, NIUA, India
Head - U20 Technical Secretariat

TASK FORCE MEMBERS
Sayli Mankikar (Convener)
Director, Policy &Partnership, Climate Centre for Cities (C-Cube), NIUA, India

Aswathy Dilip
Institute for Transportation and Development Policy

Kamilla Kristensen Rai
European Commission

Ashu Dehadani
Green Business Certification Inc., India

Bedoshruti Sadhukhan
ICLEI, South Asia

Vivek Chandran
Shakti Sustainable Energy Foundation, India

Sambita Ghosh
World Wide Fund for Nature, India

Yeshika MalikWorld Bank

6 Urban 20 2023 White Paper

Aarti Nain
United Nations Environment Programme

Dr Ramanath Jha
Municipal Corporation of Greater Mumbai- Centre for Municipal Capacity Building and Research, India

Dr Paramita Dutta Dey
NIUA, India

RESEARCH TEAM
Venkat Jayagopi
Senior Associate – Policy, C-Cube, NIUA, India

Berjis Driver
Climate Fellow, NIUA and Youth Ki Awaaz, India

Akarsha Jamuar
Young Fellow, NIUA, India

Kalyan Gandhi
Intern, NIUA, India

DESIGN TEAM
Kapil Kumar
Associate, Urban Strategy Unit, NIUA, India

Kaveri Bahure
Research Associate, C-Cube, NIUA, India

Radhika BaviskarIntern, NIUA, India

Raghav Kohli
Young Fellow, NIUA, India

Encouraging Environmentally Responsible Behaviours 7Abbreviations
BRT
CII
CO2
DCR
ERB
ESG
G20
GDP
GHG
HERs
IoT
IPCC
JPY
KPI
LEED
LiFE
MSME
NIUA
NRW
OECD
PwD
R&D
RWAs
SDGs
TESTS
TOD
UN

Bus Rapid Transit
Confederation of Indian Industry
Carbon Dioxide
Development Control Regulations
Environmentally Responsible Behavior
Environmental, Social and GovernanceGroup of Twenty
Gross Domestic ProductGreenhouse Gas
Home Energy Reports
The Internet of Things
The Intergovernmental Panel on Climate Change
Japanese Yen
Key Performance Indicator
Leadership in Energy and Environmental Design
Lifestyle for Environment
Micro, Small and Medium Size Enterprise
National Institute of Urban Affairs
Non-revenue Water
Organisation for Economic Co-operation and Development
Persons with Disabilities
Research and Development
Resident Welfare Associations
Sustainable Development Goals
Target, Explore, Solution, Trial, and Scale
Transit Oriented Development
United Nations

8 Urban 20 2023 White Paper

Encouraging Environmentally Responsible Behaviours 9

01/
Setting the contextI

n our rapidly evolving world, the urgency to address
the climate crisis has never been more pressing. The
consequences of our actions, carbon emissions, landdegradation and overconsumption, have taken a toll on theplanet’s delicate ecosystems. Cities, being the concentration
points of economic activity, are responsible for most of thisconsumption and more than two-thirds of global emissions(Trotta, 2022). The world is also rapidly urbanising and it isexpected that 70% of the world’s population will live in urban
areas by 2050, making them the key stakeholders likely toexperience the highest impacts of climate change.
The 1.5°C target set by the Paris Agreement calls forcountries to take concerted climate action to reducegreenhouse gas emissions to limit global warming. The
statement from IPCC (2022) highlights a sobering reality.
It points out how human activities have profoundly
impacted the planet, leading to transformations that haveleft lasting damage to communities and ecosystems. It
adds how global emissions continue to rise, and current
carbon-cutting efforts are insufficient to prevent climate
catastrophe, and calls for a focus on behavioural reforms
alongside technological development (IPCC, 2018). This
need for behavioural change has been further highlighted
by the Lifestyle for Environment (LiFE) global mission(NITI Aayog, 2021), a clarion call given by the Indian Prime
Minister in 2021, which seeks individual and collective action
for a pro-planet lifestyle. The mission envisions replacing
the ‘use-and-dispose’ economy with a circular economy,
defined by ‘mindful and deliberate utilisation’.

and built world’. Society’s actions towards the environment
can be significantly influenced by the integration of nature
within everyday lives. The best way to influence individual
decision-making is to ‘make the responsible choice themost straightforward choice’. Responsible behaviours
are easier to adopt if they are easy, pleasurable and haveno (or minimal) additional associated costs. Embedding
environmental responsibility in the default choice cancontribute significantly to making cities sustainable.
Beyond such self-motivated behaviours, there will need
to be different levels of legislative and financial pushes
to ensure compliance. The push for behavioural changemust, therefore be complemented with the developmentof an ecosystem that will enable such changes. To avoid
negative externalities, particularly for vulnerable groups, thesystems, products and services enabling such transitions
must first be in place before behavioural change nudges,
particularly those involving legislative or financial pushes,
are introduced.

These treaties and the LiFE mission serve as reminders
that we are at a critical juncture where holistic, decisiveand collective action in urban areas is imperative. Thereis an urgent need for individual, societal, and systemictransformation rooted in the understanding that‘environmental problems are phenomena created byhuman behaviour and, therefore, can be resolved by it’(Staats, 2004). It is critical that cities foster environmentally
responsible behavioural change by effectively implementing
appropriate nudges that ensure fairness, equity and justtransitions while moving towards sustainable futures.
Doughnut Economic Model
The definition of ‘environmentally responsible behaviour’,most contextual to this paper, is by Kollmuss & Agyeman(2010), who define it as ‘behaviour that consciously seeks tominimise the negative impact of one’s actions on the natural

10 Urban 20 2023 White Paper

Source: Author’s Depiction with reference to ‘Doughnut Economics:
Seven Ways to Think Like a 21st Century Economist’ by Kate

RaworthThe Doughnut Economic Theory (Kate Raworth 2012)provides a succinct framework for visualising ERB in
the context of cities and understanding the spectrumof themes/ sectors where actions may be required. This
sustainable economic model postulates that a thriving
human existence is only possible by considering available
resources. The doughnut represents a “safe and justspace” for humanity within planetary boundaries andaims to balance people’s defined socio-physical needs
with nine planetary (environmental) boundaries. Simply
put, the idea is that while all human beings have theright to life’s essentials, it is a collective responsibility tocurtail the ecological overshoots. It is also essential thatthe responsibility gets justly distributed and does notcompromise and impact the sustainable development goals(SDGs), especially for vulnerable groups.
While the role of ERB in establishing pro-planet
environmental actions to limit global warming is clear,matters such as the human cost of climate injustice will
also need to be addressed. To promote justice and equity, it
is necessary to embed these principles within social, legal,
and financial frameworks that support ERB in cities. By
examining correlations between these different principles
and actions, we can develop effective tools and policies that
ensure fairness and inclusivity, considering the needs andperspectives of vulnerable communities. While the existing
literature on just transitions has centered on the conflicts
between jobs and the environment, Climate Justice inits most total sense should go beyond this (McCauley &Heffron, 2018). It should combine procedural, distributive,
and restorative justice elements to address various
socio-economic issues and historical injustices.

While cities and policymakers plan their ERB actions, it
is important to have a global birds-eye view of wherecountries globally stand on emission levels and how theybalance their social and planetary obligations as part ofjust transitions. A global comparison of how countries are
faring in terms of maintaining the balance prescribed in
the Doughnut Model, indicates that there are substantial
differences across nations and between the developed anddeveloping economies; the former having achieved muchhigher social standards while transgressing planetary
boundaries. While the behavioural changes and actions
will remain similar across nations, cities based in the
Global North may consider adopting more aggressivecommitments and targets. Besides vulnerable nations andcountries in the Global South will have to be supported
financially through various climate finance avenues andsustainability funds to drive timely and comprehensive
actions and transitions to ERBs, while improving their social
standards.
Nudging behavioural change for the environment is
one of the most important yet complex challenges thatpolicymakers and governments face. While there are no
definitive solutions that assure the required pro-planet
output and impact, this white paper makes an attempt
to identify key ‘nudge areas’ that can provide large
scale impact. While many of the suggested nudges are
driven by the government, a complementary bottom-up
process, incorporating participatory planning and involving
multiple stakeholders in cities will be critical for ensuring
environmentally responsible behaviours across the urban
ecosystem.

Encouraging Environmentally Responsible Behaviours 11

02/
Key stakeholders and sectors fordriving ERB

F

our distinct stakeholder groups can be identified for
driving ERB, namely A) the public sector, B) the private
sector, C) the scientific community, and the general
population (given that the scientific community is likely tosupport ERB by informing the policies and strategies of thegovernment, it has been merged with the public sector forthe sake of this paper).

targeted. Additionally changes in industry practices will
also have a significant impact on meeting sustainability
outcomes. These have therefore been identified as thefocus sectors for this paper, where urban ecosystems thatencourage responsible behaviours can be developed.

A. Public Sector
 State (Sub-National) Governments
 Local Government – Concerned Urban Authority /Integrated Departments
 Academic institutions and scientific community
B. Private Sector
 Businesses and Corporations
 Private Utilities and Service Providers
 Professional Associations and Industry Groups PR & Marketing Agencies
 Micro, Small and Medium Enterprises / Startups
C. People
 Civil Society/ Community Organisations/ Associations
 Non-Governmental Organisations
 Personalities and Individuals
 Local Youth and Gender Organisations/ Groups

The energy supply sector (electricity, heat, and otherenergy) accounts for 35% of global GHG emissions (United
Nations, n.d.). Of this, cities account for two-thirds of global
energy consumption (IEA, 2021a), with domestic andcommercial usage forecasted to increase by 15% through2050 (Exxon Mobil, 2022). Given that energy consumption,
to a large extent, is linked to individual behaviour, it iscritical to create an enabling ecosystem to encourage
energy-efficient behaviours. This paper will focus on
two aspects of energy-related behavioural change – (i)incorporating energy-efficient infrastructure and (ii)developing energy-conserving habits. While the former willbe critical to ensure that the quantum of energy that will
be required for meeting the needs of the projected growthof population are met sustainably, the latter will be a tool
to pull back from the high per capita energy consumption
lifestyle while simultaneously ingraining low energy use
practices. Incorporating energy-efficient infrastructure will
require upfront capital investments, and hence the burdenmust be on the owners/developers of properties withsuitable subsidies provided by the state. On the other hand,energy-conserving practices will have to be inculcated more
universally. Following key action areas have been identified
for the sector:

While indicators for urban sustainability may vary between
geographies, a study by Michalina et al. (2021) on 50 existing
urban sustainability indicator frameworks, highlighted
water (water use, consumption, quality, and management),
mobility and transport, waste (responsible or material
consumption), and energy as key sectors that could be

A. Energy

Objective

OutcomeEnsuring Energy
Efficient buildings

Creating and retrofitting
Property Owners (Residentialbuildings with Energy Efficient and Commercial as well as
Infrastructure
Public buildings)

Enable individual property
owners to incorporate
energy-efficient
infrastructure.

Household energy
reduction

Shifting behaviours andpractices for minimisinghousehold energy
consumption

Enabling energy conservationby users

12 Urban 20 2023 White Paper

Stakeholder groupAll stakeholders

Action area

B. Transportation
Accounting for 37% of all CO2 emissions and a quarter of
all GHG emissions from end-use sectors, transportation is
one of the most significant contributors to climate change(Akenji et al., 2021). Cars are responsible for nearly 50% oftransport-related emissions, and, along with motorcycles,
they play a major role in increasing carbon footprints indeveloping countries (Akenji & Bengtsson, 2022). Further, thelack of infrastructure to support such a growth in personal
motor vehicles will lead to escalating road congestion
leading to a decline in effective speed and an increase in fuelconsumption (Kumar et al., 2021).
There is a need to make an ecosystem-level shiftthat prioritises and incentivises the adoption of public
transportation. Behaviour change efforts will need to focus
on private vehicle users and incorporate actions that will
minimise the gaps in convenience between the two modes.
While mainly targeting existing/ aspiring private vehicle
owners, the benefits of these actions will have significant
positive spillover effects on all public transportation users,
particularly vulnerable groups. Such transitions fromprivate to public transportation can reduce about one-third(2.2 tonnes) of the annual per capita CO2 emissions, thusaligning with SDG 11 and the universal human right to“access to a clean and healthy environment” as declared by
the UN (SuM4All, 2022).

Transportation is also one of the sectors where systemic
disadvantages of vulnerable groups like women and
Persons with Disabilities (PwDs) come to the fore. Women,
who have more caring responsibilities, are hampered by
the limitations of public transportation, particularly thelack of accessibility, the difficulties in first and last-mileconnectivity, and safety concerns (UN-NIUA Dialogue,2023). Similar barriers extend to PwDs in their access topublic transportation. Hence there is a need to integrate
universality at an ecosystem level and develop urban
infrastructure that is accessible, equitable and inclusive toall. Further, several roadblocks cause a pushback against
the shift towards public transportation (Batty et al., 2015),
particularly in developing countries. The biggest among
these is the requirement for significant upfront capital
to implement the ecosystem-level changes required tomainstream public transportation. Given the additional
14 million buses, 340 million kilometres of bus lanes,
and 1.4 million kilometres of safe bike lanes required
globally to achieve sustainable urban mobility, in addition
to investments in urban rail systems, there is a needfor significant reallocation of funds from car-oriented
infrastructure to public transportation (ITDP, 2021). Following
key action areas have been identified for the sector:

Objective

Outcome

Stakeholder group

Action area

Increasing Uptake of
Public Transport

Moving from Private to Public
Transport

All stakeholders

Encouraging and facilitating
the shift of private vehicle
owners to use public transport

C. Waste
Globally, cities generate 2.1 billion tonnes of solid waste
annually (The World Bank, n.d.-b). Only 19% of this isrecovered through recycling and composting, while 11% isincinerated. The rest is mainly disposed through landfills
or open dumping. It is further estimated that 1.6 billion
tonnes of CO2 equivalent is released annually from solid
waste treatment and disposal. (The World Bank, n.d.-b).
Given the population growth rate and likely increase in
consumption, this is estimated to increase by 70% over the
next 30 years (Kaza et al., 2018). Uncollected and improperly
disposed waste can further lead to major health (throughcontamination of soil and water) and environmental(impacting marine life and natural ecosystem) issues andthe cost of coping with these impacts may surpass the costof having an effective waste management system (TheWorld Bank, 2018a).
Source segregation can be an easy and effective way tomanage waste, particularly in middle-income countries
where basic collection infrastructure is already established.
Source segregation will reduce the cost of recycling (TheWorld Bank, 2018a), increase material recovery, and lower
waste disposal in landfills (NITI Aayog,2021). Given the low
cost of actions and the vast benefits, there is a strong needfor developing an enabling ecosystem that would enablesource segregation. Following key action areas have been
identified for the sector:

Objective

Outcome

Stakeholder group

Action area

Effective Waste
Management

Facilitating Solid Waste
Segregation at Source

All stakeholders

Creating systems for effective
segregation of solid waste atsourceEncouraging Environmentally Responsible Behaviours 13

D. Water
Universal and equitable access to water, sanitation andhygiene infrastructures are among the key global priorities
highlighted by the Global Commission on the Economics
of Water (2023). For every 1°c increase in global averagetemperature, a 20% loss of renewable water sources is
projected (IPCC, 2014). Consequently, by 2030 water demandis expected to outstrip supply by 40% (Harvey, 2023) andnearly half of the global urban population is projected to
face water scarcity by 2050 (He et al., 2021). Households
currently account for 10% of the total global water demand,and this is likely to increase exponentially. For instance, it isexpected that water demand will increase by 300% in cities
in Africa and Asia and by 200% in cities in South America(Boretti & Rosa, 2019). It is critical to address the domestic
overuse of water to ensure adaptation to current shortfalls
and mitigate future water poverty.
Enabling ERB to ensure water savings at the household level,
particularly in the case of high consumers can help reduce
scarcity. The nudges will have to target overconsumption
while ensuring that they do not inadvertently penalise
the achievement of basic standards of water provision.
Following key action areas have been identified for thesector:Objective

Outcome

Stakeholder group

Action area

Ensuring Water Savings

Reducing water usage

All stakeholders

Minimising water usage toenable water savings at thehousehold level

E. Industry
Industrialisation is essential to economic development(Zodape et al., 2015), particularly for emerging economies
where tertiary industries are not too prevalent. The
industrial sector accounts for the largest share of energy
consumption of any end-use sector – more than half thetotal energy used globally (Kahan, 2019). The energy use bythis sector is estimated to increase by a further 30% by 2050
– almost all of it coming from non-OECD countries (Kahan,2019). Micro, Small and Medium Enterprises (MSMEs), asa business segment account for 90% of all businesses
globally (World Trade Organization, n.d.). These MSMEs
also provide livelihood opportunities for 60 to 70% of theworkforce (United Nations, n.d.-b) and contribute over 40%
to the GDP of emerging economies (The World Bank, n.d.-a).
Given that MSMEs constitutes around 90% of all global
businesses and directly and indirectly contribute to about
80% of all emissions (World Trade Organization, n.d.-a), it
is extremely critical to shift them away from the current
carbon-intensive models.

This must involve a transition of both internal production
processes and products they produce since MSMEs
constitute the supply chain for most industries and sectors.
While such green transitions can be easier achieved inbigger industries, the lack of capital and capacity makes it
significantly harder for MSMEs. Globally, 40% of the MSMEs
have a funding deficit, cumulatively coming to an unmet
funding demand of $5.2 trillion, or 1.4 times the amount of
global MSME lending (The World Bank, n.d.-a). Providingthem with the skill, technical and financial assistance toachieve these transitions will be critical. Further, integrating
MSMEs into the broader R&D ecosystem can facilitate
early-stage engagement in environmentally responsible
business practices. Following key action areas have been
identified for the sector:

Objective

Outcome

Stakeholder group

Action area

Creating sustainableindustries

Shifting towards creating
sustainable products andprocesses

MSMEs

Encouraging transitions
among MSMEs towards
sustainable products andprocesses

14 Urban 20 2023 White Paper

03/
Designing nudges forbehavioural changeI

ntroduced in 2008 by social scientists Richard Thaler andCass Sunstein, ‘nudging’ was defined as “any aspect of
the choice architecture that predictably alters people’s
behaviour without forbidding any options or significantly
changing their economic incentives’. In the case of nudges
related to ERB, they will need to adhere to the principles
of climate justice and be built on the model of Doughnut
Economics elaborated in earlier sections. The design of

Stakeholder being Social Nudges
impacted by thenudge strategy

the nudges will aim at minimising overconsumption at anindividual level while simultaneously trying to ensure thateveryone achieves minimum standards of living. The nudges
can be classified as social, regulatory or financial nudges
and comprise upstream (policy), midstream (process) anddownstream (project) level interventions (Ho et al., 2022).
The details of each of these nudges vis-a-vis the threestakeholder groups, have been detailed in the table below.

Regulatory Nudges

Financial Nudges

All stakeholders

Strategies and policies that affect all stakeholders

Public sector including
scientific community

Interventions to allow thestates and cities to movetowards more responsible
actions in their ownfunctioning thereby setting an
example and taking the leadin adopting ERB. Here politicalleadership plays a big role.

Modifications in government
laws, rules and processes toenable an environment for the
ecosystem-level promotion of
responsible actions.

Financial allocations andincentives for creating an
ecosystem conducive to
responsible behaviours.

Private sector

Increasing the public
visibility of environmentally
responsible practices to help
create positive reputations forcompanies that comply.

Mandates around theminimum sustainability
standard or a minimum
quantity of sustainable goods
and services provided. These
nudges must be crafted toensure that there are minimal
or no negative externalities forsmaller producers.

Financial assistance(subsidies) and/or guarantees
to producers for transitioning
towards more sustainable
services. While guarantees
can be universal, the subsidies
should be targeted at smaller
producers who will otherwise
not be able to make thetransitions.

Encouraging Environmentally Responsible Behaviours 15

PeopleA combination of awarenessbuilding through social
campaigning/ education andincreasing public visibilityof individual actions (while
maintaining basic standardsof privacy) to create socialpressures and modify public
perceptions in favour ofindividuals undertaking
responsible behaviours.

Individual level mandates
and rules against engaging inenvironmentally irresponsible
behaviours. Efforts should
be made to ensure that suchmandates do not make itharder for individuals/ groups
to meet minimum living
standards.

In the absence of comprehensive evidence on the efficacy
and, more importantly, on the externalities of nudging
strategies, it would be prudent to set up an institutional
mechanism for regular monitoring and review of theperformance of the actions implemented. Blind spots in
the implementation may also occur or be compounded as
most city governments might not have extensive experience
initiating behavioural changes through financial and legal
mechanisms.

16 Urban 20 2023 White Paper

Financial penalties forengaging in environmentallyirresponsible behaviours.
This would tap into basic
human feelings aroundloss aversion. This can also
be complemented withfinancial rewards for ERB. The
penalties may be targeted atover-consumers and should
not be universal.

The Target, Explore, Solution, Trial, and Scale’ (TESTS)
guide by Kettle & Persian (2022) can be an effective tool
to mitigate these issues. The framework links policy
objectives with targeted behaviours and can help tune
and adjust nudges to suit local requirements. It also offers
flexibility for improvements and iteration after examining
the experiences and outcomes of executing proposedinterventions. Monitoring and evaluation can further belinked to the targets of existing sustainability indicator
frameworks like SDGs.

04/
Nudging behavioural change Energy
Key action area 1: Enable property owners to incorporate energy-efficient
infrastructure:
Stakeholder
Social Nudges
being impacted
by the nudge
strategy

Regulatory Nudges

Financial Nudges

All property
ownersMinimum Compliance with Green
Building Norms
Modification of building codes/
Development Control Regulations/Zoning Ordinances to mandate
compliance of all new developments(whether greenfield or brownfield)with green building codes (like LEED).
These mandates can initially be madefor larger sites and progressively
expanded to all new constructions andredevelopments.

Enabling Rooftop Solar
Adoption through Public
Funding Schemes
Subsidies for Solar
Rooftop installation
through public schemeswith robust supply chainof vendors/contractors tomeet demand

Fast-Tracking Construction Clearance
Setting up processes to ease andaccelerate approvals at various stagesof building construction for buildings
meeting comprehensive green building
standards.
Public Sector
includingscientificcommunity

Competition amongst cities
for promoting energy-efficient
infrastructure.
Intercity challenges withrewards/ incentives (linked tocentral grants, schemes, etc.)
to improve key energy related
indicators. Indicators could focus
on green buildings, renewableenergy mainstreaming,sustainable retrofitting andreuse of built stock, etc. Suchcompetitive frameworks canalso be established between orwithin government departments
and administrations.

Energy Efficient Infrastructurecompliance in all Public Projects
Mandating that all public infrastructure
projects, including public housing,
be built with energy-efficient
infrastructure and comply withminimum green standards. These
mandates will have to reflect in thedesigns, tenders and budgetary
allocations of any new project
undertaken by the government.

Innovation Funds
An R&D ecosystem needs
to be established forfurthering innovations
for energy-efficient
infrastructure within
academia. A percentageof public funds canbe directed towards
the creation of publicgrants, scholarships, andfellowships which probe
potential solutions.

Encouraging Environmentally Responsible Behaviours 17

Stakeholder

Social Nudges

Regulatory Nudges

Public Sector
includingscientificcommunity

Private sector

PeopleFinancial Nudges
Financing the installation ofenergy-efficient infrastructure ingovernment buildings
Creation of a dedicated fund to retrofit
existing government buildings withenergy-efficient infrastructure. This canalso be used to provide viability gap
funding for installing such infrastructure
in new projects.

Rewards and Ranking
for Best Practices
Initiating an open
ranking and certification
system of developers
who promoteenergy-efficientconstruction. This could
also be augmented
with annual awards
in collaboration with
Industry associations.
Such a system would
increase their market
visibility, boost theirbusiness and nudge
competitors to alsoalign with greener
construction practices.

Energy performance rating
disclosures
Mandating the disclosure ofbuilding energy performance
ratings and the long-term energy
cost implications by developers/
owners at the time of sale ofproperty. This would allow buyers
to make more informed choices
and increase the demand, andconsequently value of green
buildings.

Behavioural Change
Campaigning
Campaigns targetingbuyers to educate themon potential long-term
benefits and costsavings associatedwith energy-efficientbuildings and products.
This will help nudge
the demand side of
the market to be moreenergy efficient. These
campaigns can be run
by NGOs or by industry
associations.

Retrofits of existing buildings
Mandates for property owners
to retrofit existing buildings
for energy efficiency. These
mandates must be brought invery gradually, giving sufficient
time for compliance so as to not
overburden homeowners.

18 Urban 20 2023 White Paper

Incentives to boost manufacturing ofenergy-efficient fittings
Manufacturers can be nudged to increase
the production of energy-efficient fittings(like hermetically sealed windows) byproviding production-linked incentives.
The increased production can help reducethe cost of such products and make themmore affordable.

Gradually Phasing Out Energy
Intensive products
Mandates for the gradualphasing out of manufacturingof non-energy efficient fittings
and fixtures. Such mandates
could commence with certain
easy-to-transition products andbe gradually expanded to all
sectors.
Disincentives for energy-inefficientbuildings
Tax incentives/ disincentives can be
developed in the form of penalties forproperty owners of energy-inefficientbuildings or tax rebates for those whohave made the transition. These must
be applied through property taxation
rather than electric billing as the lattermight only affect the residents of thebuilding who might not be the owner andconsequently powerless to make anychanges.
Financial support for individual transition
The government can provide subsidies
for homeowners to undertake energy
efficient retrofitting and upgradation(including in informal settlements).

Good Practices

Increased Property Rates | Denmark

Green Roofing for Informal Settlements |Ahmedabad, India
Nudge: Financial support for individual transition
Case overview: In 2013, the Mahila Housing Trust team, an
NGO supported by the Self-Employed Women’s Association(SEWA) did a citywide pilot project called “cool roof” aimed
at converting 500 traditional roofs in informal settlements tocool roofs. Cool roofs reflect and emit heat, lowering indoor
temperatures by 2 to 5 degree celsius. They installed theirfirst modular roof as a pilot project, raising funds internally.
The pilot aimed to assess demand and efficiency, monitoring
temperature regularly in the installed homes. Data showeda significant temperature decrease of 7-8 degrees celsius.
This feedback allowed the team to refine and customise
the roofs. With increasing demand, they have installed over
250 roofs, creating resilient living environments for slum
dwellers. The success of the pilot led to an expansion plan toconvert over 3,000 homes from informal settlements.

Nudge: Energy performance rating disclosures
Case overview: Denmark’s introduction of building energy
ratings in 1997 made a major dent in the market only
fourteen years later, with the introduction of Article 13 of
the EU Directive that mandated advertisement of building
energy performance during sales. This increased the valueof high energy-rated homes much to the benefit of property
owners.

Key action area 2: Enabling energy conservation by users
Stakeholder
Social Nudges
being impacted
by the nudge
strategy

Regulatory Nudges

Financial Nudges

All stakeholders

Increasing urban green cover toregulate temperatures
Stronger legal mandates within
urban planning regulations to ensure
minimum per capita green cover toprevent development of urban heatislands. This will help to regulate
microclimates and reduce the demandfor cooling energy.

Financing for Heat
Mitigation
Investments in urban
cooling (or heating)projects such as districtcooling to reduce
premise-level energy
demand.

Energy efficient fixtures in government
housing
Mandate installation of energy-efficient
fixtures in public and staff housing
projects constructed by thegovernment.

Incentives for Innovation
Provide financial
support for Researchand Development onenergy-efficient products.

Public Sector
includingscientificcommunity

Showcasing best practices
in energy efficiency by thegovernment
Public challenge-based model,
with attached rewards, toinculcate energy conservation
habits within the government
ecosystem. Can be used
to showcase government
leadership and prompt citizens
to replicate.

Encouraging Environmentally Responsible Behaviours 19

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

Private sector

Public database ofenergy-efficient products
Comprehensive public
database analysing theenergy efficiency potentialof various products bydifferent manufacturers
allowing for comparison
and transparency to
end users. This would
reduce instances ofgreenwashing and reward
energy-efficient productmanufacturers.

Building Materials Policy
Establish minimum thermal andinsulation standards for materials
used in construction. This would
reduce the demand for heating/cooling energy within buildings.

Financial assistance for transition:
Provide financial support to MSMEs
to help them transition towards
manufacturing energy-efficient
products. This could also takethe form of production-linked
incentives for medium and large
companies.

Increase Manufacture of Energy
Efficient Fixtures and Appliances
Gradually phase out manufacturing of
appliances with low energy efficiency.
This could also be accompanied
by mandates on appliancemanufacturers to produce a fixed
fraction (which gradually increases) ofenergy-efficient appliances.
Appliance energy ratings andlong-term cost savings
Mandates for displaying the energy
ratings for appliances and comparisonof the associated energy costs for
similar utilisation of appliances acrossdifferent energy ratings. This would
allow users to factor in long-term
cost savings while making purchasedecisions.

PeopleComparison-based
Consumption Reporting
Developing a framework
for energy use reportingthat would allow users
to see their consumption
levels compared toneighbourhood and citylevel averages. This would
gently nudge people tochange their consumption
patterns.
Education for Energy
Savings
Raising awareness onenergy conservation
through education andawareness building
among youth. Behaviouralchange amongst younger
generations can ensure
long term behavioral
change in the society.

20 Urban 20 2023 White Paper

Establishing maximum thresholds for
consumption during periods of peakdemandMandating maximum energy
consumption limits for users. Thesecan be developed at a per unit area
rate for every property and canbe based on neighbourhood-levelaverages. These mandates can comeinto effect during periods of highenergy demand - like summer.

Non-Linear (Increasing Block)
Pricing
Establishing a system for
non-linear energy pricing that
can impose high financial costs on
overconsumption. The additional
revenue from this can be used tosubsidise energy costs for lower
energy users.
Purchase Subsidies for Energy
Efficient Products
Providing subsidies to users
to purchase energy-efficient
appliances. The subsidy can help
bridge the cost gaps between highand low energy rated appliances
prompting user choices towards
the former.

Good Practices‘Schools4energy Initiative’ | Italy
Nudge: Education for energy savings
Case overview: The Schools4energy initiative was createdwithin the ‘Interreg Mediterranean PrioritEE’ (Prioritiseenergy efficiency) project in the Province of Potenza, Italy.
The primary objective was to enhance energy efficiency
in public buildings by raising energy awareness in schools
and highlighting the achievements of students engaged
in promoting energy conservation. In the academic year
2018-2019, 4 primary and middle schools of Potenza
Municipality were involved in 3 sets of activities to promoteenergy-conscious behaviour, following which the energy
consumption data by source was monitored and analysed.
A significant decline in energy consumption across all
schools was observed. The engagement highlighted theconsiderable impact of educational programs in fostering
behavioural change.

Lei do Bem | Brazil
Nudge: Incentives for innovation
Case overview: Brazil has taken some initiatives toencourage the renewable energy sector. One such incentiveis the Lei do Bem (Good Law). This program provides tax
benefits and exemptions for companies that invest in R&D
projects focused on innovation, including technologies
aimed at reducing environmental impacts. These incentives
help companies allocate resources towards developing
and implementing sustainable technologies and solutions.
Benefits include recovering 20.4% to 27.5% of RD&I expenses
and a 50% reduction in Federal Excise tax. In addition to tax
incentives, Brazil has established research funding programs
to support R&D in renewable energy, clean technologies, andenvironmental conservation.

OPOWER, USA and Japan
Nudge: Comparison-based Consumption Reporting
Case overview: In 2009, a company called OPOWER started
the practice of sending Home Energy Reports of residential
power usage to it’s consumers. When evaluated with aseries of programs involving 6,00,000 households acrossthe United States, it was found that this program reduced
energy consumption by 2%. This proves that non-priceinterventions can impact consumer behaviour efficiently andsuccessfully. The results of the programme are comparable
to a temporary 11% to 20% increase in electricity prices.
On average, users who received the reports experienced
savings ranging from 0.3% (lowest consumption group) to
6.3% (highest consumption group) compared to the control
group that did not receive the reports. Similarly, in 2017,
Japan’s Ministry of Environment commissioned OPOWER
energy-efficient cloud services to send the Home Energy
Reports (HERs) to consumers. The results in 2018 showedthat there was a decline in average energy usage of 2% in
the houses that received HERs. It is estimated that this 2% ifachieved all over the country, can make a significant impact
equivalent to replacing 26 million refrigerators, with anestimated cost of 3 trillion JPY.

Encouraging Environmentally Responsible Behaviours 21

05/
Nudging behavioural change Mobility
Key action area: Encouraging and facilitating private vehicle owners to
shift to using public transport
Stakeholder
Social Nudges
being impacted
by the nudge
strategy

Regulatory Nudges

Financial Nudges

All stakeholders

Developing a Public Transport Policy
A public transport policy can be
developed covering the following
components:
1. Establishment of minimum service
levels for public transportation.
2. Mandating Transit-oriented
development (TOD) concepts that
increase walkability, mixed-use, etc.
3. Establishing Car-free or Low Emission
zones with restricted access to private
vehicles. In addition to improving theuptake of public transportation, thesemeasures can help to improve life on thestreet and promote local businesses.
4. Establishment of standards forbus lanes, footpaths, cycle tracks
etc, through statutory urban design
guidelines to transition street space
allocation away from cars.
5. Mandating periodic routerationalisation to improve efficiency,
reduce costs and increase userconvenience.
6. Prioritising accessibility and ensuringthat the diverse needs of user groups
with varying disabilities are met.

Financing public transport
investments
Allocate dedicated funding
sources for low carbon mobility
initiatives such as urban rails,
bus systems, cycling andwalking infrastructure. Funding
and prioritisation should bebased on a comprehensive andinter-modal mobility strategy
focused on reducing emissions
and should include funding
for TOD planning, public
space development, last mile
improvement, etc.

Digitalisation of mobility services
Digitalisation and use of IOT,
applications and data analytics cansignificantly improve public transport
efficiency user, comfort and accessibility
thereby encouraging people to use
public transportation.

22 Urban 20 2023 White Paper

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

Public sector
includingscientificcommunity

Encouraging use of public
transport by Government
Employees
Promoting Public
Transport use bygovernment employees
through incentives anddevelopment of dedicatedpublic transport routes
wherever possible
between governance hubs
and housing for public
employees.

Reform planning education
Reform planning curricula to encourageplanning for net-zero development,
including concepts such as compact
mixed-use development, transit
orientation, public space development
and integration of land use and public
transportation

Investing in fleet improvement
Periodic investments inincreasing bus fleet and routesizes are required to attract
and maintain ridership of
public transportation. Regularinvestments can also help
keep the fleet up to date,providing comfort for the users
and reducing operationalcosts through fuel efficiency.
Investments in urban rails may
also be considered whereverridership is conducive for suchlarge investments.

Private sector

Recognition of Companies
Reducing Transport
EmissionsTax rebates and otherincentives can be offered
to companies that put inplace policies and services
to encourage shared travel
and use of public transport
by employees. This canbe counted as part of the
ESG requirements and canpotentially create financial
benefits both for theemployer and employees.

Develop share of private operators inpublic transport
To increase the overall service levels of
public/ shared mobility, policies can be
introduced to ease restrictions aroundthe entry of private sector operators into
public mobility. These operators can be
encouraged to operate certain routes
with performance-based monitoring.
Such initiatives can provide higher
comfort in service thereby attracting
higher-income car users to make theswitch to public transportation.

Gap funding for private
investors
Policies can be developed forsupporting private investmentsin public transport throughmodels such as viability gap
funding, hybrid-annuity, etc.
Appropriate convergence
between financial
considerations and planningoutcomes such as higher
densities around transit can beachieved through appropriate
financial structuring of
projects.
Larger and longer-term
contracts to vendors
Manufacturers of rolling stock(buses, feeder units etc.) can beoffered longer-term contracts
by to help increase supply, andreduce costs for purchasing
by the state. Lower costs cansignificantly improve the abilityof cities to maintain and renew
public transport fleets.
Incentivise Last Mile Service
providers
Financially incentivise
individual last miletransportation solution
operators like sharedautorickshaws, feeder buses
etc., through initial low/zerointerest loans and otherpurchasing subsidies.

Encouraging Environmentally Responsible Behaviours 23

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

PeopleBehavioural Change
Campaigns
Campaigns targeting car
users by communicating
the financial and time
benefits of using public
transportation. These
campaigns can tap into
the loss aversion mindsetof the target audienceto get them to switch (atleast partially) to public
transportation.

Easy multimodal access
Establishing systems for easier access todifferent modes of public transportation
through
1. Single payment systems for all modesof transportation
2. Flexible charging for trips based on
travel time rather than on the numberof stops or switches between modes oftransportation.
3. Physical design interventions
to ease last mile connectivity andconnections between different modes oftransportation.

Congestion and Parking
Charges
Charging car users for accessto certain zones of the citywhich are easily accessible
by public transportation. The
charging can be steep todissuade the use of cars inthese regions, but exceptions
will need to be made forvulnerable groups like PwDs.
The collections can be used
to subsidise/ fund otherinitiatives to improve public
transportation.

Campaigns for Periodic
Reduction of Cars on Road
Successful campaign
designs which call forintermittent closing ofstreets to cars (Car-freedays) and expanding
similar campaigns
for public transport
uptake can help boost
social interaction, local
business and provide
space for creative public
interventions that canmake ROWs more green
and accessible to different
age groups, especiallychildren and youth.

Subsidise Public Transport
Low costs associated withpublic transport can be a major
factor for people when they
are making a choice. Free
public transportation may
be considered for vulnerable
groups, women and PwDs toincrease their uptake of public
transit. Such pricing strategies
will increase the ridership of
public transportation. While
this can strain transportationbudgets, the long-termsavings w.r.t. improved healthoutcomes, reduced pollution
etc., are likely to outweigh thecosts.
Disincentivise Multiple Car
Ownership
Increasing taxes and charges
on purchasing more than one
car per family unit. The cost
increase can be steep and will
nudge against purchasing asecond car.

24 Urban 20 2023 White Paper

Good Practices
Electronic Road Pricing System | Singapore

The Suica Card System | Japan

Nudge: Congestion Charging
Case overview: Nearly half a century ago, Singapore
introduced congestion pricing to reduce congestion in
the central business district. While implementing the
Area Licensing Scheme in 1975 led to a 20% reduction incongestion, complications arose due to the flat fee andmanual collection of fees. To address these issues, theElectronic Road Pricing system was introduced in 1998,
which determined chargeable rates based on location,
time, vehicle type, and real-time speeds. Singapore further
enhanced its transportation network by merging congestion
pricing and public transit investments, augmenting cycling
infrastructure, and leveraging TOD, all of which led toincreased public transport usage and reduced emissions.

Nudge: Easy multimodal access
Case overview: Suica is a contactless smart card system
introduced almost two decades ago by the East Japan
Railway Company (JR East). This card can be used not
only for JR East trains but also subways and buses. It has
become one of Japan’s most popular and widely accepted
forms of electronic payment due to its convenience,versatility, compatibility, integration with mobile devices andcontinuous innovation.

Route Prioritisation, Bus Rapid Transit
System | Curitiba, Brazil
Nudge: Route Rationalisation
Case overview: Curitiba is widely recognised as an
exemplary model of sustainable urban transportation due
to its efficiently planned and rationalised bus rapid transit(BRT) system. This system prioritises efficient routes andintegration with other transportation modes resulting in
reduced congestion and improved travel efficiency. This
also led to a shift in people’s behaviour to choose public
transport, reducing their dependence on private vehicles.
Furthermore, in 2010, a work program was initiated to
improve exclusive lanes by creating a ‘non-stop’ third lane
with overtaking areas at intermediate station points. The
Boqueirão Axis is a good example which indicates reduced
travel time.

Free PT (Buses and Trains) at Targeted
Locations | Australia
Nudge: Subsidise Public Transport
Case overview: Perth, Fremantle and Joondalup are among
the first cities that offer fare-free bus and train services
in specific city zones. Central Area Transit buses provide
frequent and complimentary service in the central business
district and other densely populated areas. Perth also
introduced electric buses over a year ago, which was wellreceived by commuters. Over 50 European cities and towns
have also implemented free public transportation to movetowards environmental sustainability and social equity

TOD | Curitiba, Brazil
Nudge: Transit Oriented Development
Case overview: During the 1960s, Curitiba faced thechallenges of urbanisation and an increasing reliance on
private vehicles. However, the city seized the opportunity totackle these challenges by adopting an integrated approachto land use and transport planning, and adopted a Transit
Oriented Development (TOD) strategy, which involved
creating vibrant, mixed-use communities along major
public transport corridors. The implementation of TOD had
several positive outcomes for Curitiba, such as alleviating
traffic congestion in the downtown area, curbing urban
sprawl, improving access to public spaces and creatingpedestrian-friendly streets. These measures helped improve
the quality of life of the residents of Curitiba.

Encouraging Environmentally Responsible Behaviours 25

06/
Nudging behavioural changeWaste Management
Key action area:
Creating systems for effective segregation of solid waste
Stakeholder
Social Nudges
being impacted
by the nudge
strategy

Regulatory Nudges

All stakeholders

Provide ‘industry status’ to solid
waste management
Obtaining an Industry statusprovides several advantages forprivate actors, including easieraccess to loans with lower
interest rates, the opportunity
to attract significant investors
as financing partners, and theability to refinance existingobligations in the sector.
Moreover, it facilitates the flowof international green financeinto the industry.

Public Sector
includingscientificcommunity

Strengthening leadership in
waste management
Prioritisation of waste
management, particularly
segregation, by the
topmost political andadministrative levels within
all levels of government
has a trickle-down effect.

26 Urban 20 2023 White Paper

Systems of data collection
around waste
Establishing systems to collectand analyse data around
waste segregation, types andvolumes to optimise solid waste
collection processes. Suchdata collection would also help
better design the monetaryand business systems around
waste.
Parallel systems could
be established to collectdisaggregated data on those
involved in the waste collection
ecosystem. This would allow
for the identification of various
vulnerable groups, including
women involved in the process,so that targeted welfare
policies can be devised forthem.

Financial Nudges

Incentive-linked KPIs for staff working
in the segregation of waste
Accountability and reward mechanisms
should be set for those directly involved
with day-to-day operations related
to waste, like sanitary inspectors.
They should be financially rewarded
for improving waste segregation
standards and measurable impact. This
could be built into the staff’s annual key
performance indicators (KPIs).

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

Private sector

Forging partnerships
and collaborations forsegregation
Effective waste
segregation requires
collaboration andpartnership between
government andprivate entities. These
stakeholders can pool theirresources, expertise, andinfrastructure to implement
comprehensive waste
management systems.
This can result in higher
recycling rates, reduced
landfill waste, and a moresustainable approach
to waste management
overall.

Making segregation mandatory
for waste-collection contractors
Tipping fee linked contracts
in waste collection tend
to disincentivise waste
segregation. It is critical to put inplace guidelines and protocols
as part of waste collection
contracts to ensure effective
segregation.

Incentivising start-ups and newenterprises
Given the latent financial potential in
the solid waste sector, incentives canbe set up to encourage new businesses
to enter into waste management
operations. These incentives can bein the form of viability gap fundingor subsidised land leasing. The entryof the private sector would reducethe burden on the state for waste
management operations and allow
it to focus on critical components ofthe process like managing low-value
waste, in which the private sector will
not be able to contribute.

Private sector

Developing human capital
Investing in upskilling
waste management
staff can enhance theircapabilities for waste
management. This will
give them necessary
skills to implement andmanage techniques likevermiculture, composting,and biogas projects,
leading to more efficientwaste diversion andresource recovery.
Providing social benefits
and required upskilling
can further improve theefficiency of workers(including informal sector
workers) and ensure
fairness and justice.

Policies for supporting theinformal waste management
economyPolicies must be put into
place to enhance informal
segregation and waste recovery
practices through provision ofsafety gear, recognising andproviding space for material
recovery and supporting theinformal recycling economy.

Guarantees on buybacks of processedwaste
New private sector enterprises in waste
management can be given buy-backguarantees by the state for purchasing
processed waste at fixed prices. This
will increase the market confidence toincrease investments in this sector andhelp ensure the initial viability of theindustries. The guarantees can be for
an initial fixed period from the setting
up of the enterprise.

Encouraging Environmentally Responsible Behaviours 27

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

PeoplePositive Reinforcement ofsegregation practices
By using influential
personalities or authority
figures as role models or
spokespersons, social norm
techniques can effectively
influence individual
behaviour. When individuals
see someone they admireor trust endorsing certain
positive behaviours, they
are more likely to perceive
those behaviours as sociallydesirable and feel motivatedto follow suit.

Mandating no collection of
unsegregated solid waste
By mandating households tosegregate their waste into
recyclables, organic matter,and non-recyclable waste,
the policy will improvethe efficacy of source
segregation. Mandates
against the collection of
unsegregated waste will
help ensure compliance.

Monetary compensation for segregatedwaste
Resident welfare associations (or otherforms of neighbourhood associations)can be monetarily compensated forthe segregated waste collected fromtheir local neighbourhood. While thesecompensations might be relatively
small amounts at the household level toattract interest, at the neighbourhood
level, they can pay for a variety ofservices offered by the RWAs, including
costs associated with procurementof separate waste bins, educational
campaigns, or training programs etc.

Creating E-waste
inventories with buy-backstandardisation
Buy-back programs involve
offering incentives to
consumers or businesses toreturn their used electronic
devices for recycling or proper
disposal. Standardisation
could ensure that the terms
and conditions of buy-backprograms are consistentacross different locations
or organisations, creatinga streamlined process forboth consumers and waste
management entities.

Good Practices
The ‘Bin Free in 2003’ Campaign | Municipal
Corporation of Panaji, Goa, India
Nudge: Mandating no collection of unsegregated solid
waste
Case overview: The campaign demonstrated the value of
stakeholder integration and involved stakeholders from thelocal body, Resident Welfare Associations, school and college
students and faculty, as well as imminent personalities.
The strategy involved providing separate bins at subsidised
cost, setting up material recycling stations, setting up of agovernance mechanism to ensure segregation and intensive
monitoring. While initially the segregation was in terms of
wet and dry wastes, the system has been subsequently
enhanced, and segregation at source is currently undertaken
in eight different streams with designated colour coding. Key
outcomes included the complete collection of segregated

28 Urban 20 2023 White Paper

household waste, market creation for improving recycling
efficiency, minimal waste reaching the landfill, as well asactive engagement of woman volunteers, ragpickers, andself-help groups.

Sahbhagita Scheme | Municipal Corporationof Delhi, India
Nudge: Monetary compensation for segregated waste
Case overview: Under the scheme, if an RWA achieves 90%
property tax compliance, then 10% of this collection canbe utilised as a capped incentive for development work.
Additional 5% can be availed as an overhead incentive if
the following solid waste management measures are met:
complete segregation at source, composting of wet waste,
and recycling of dry waste with remainders handed to themunicipal corporation. Implementation of the scheme isoverseen by the Sahbhagita cell along with other officers
within the local body.

07/
Nudging behavioural change Water
Key action area: Minimising Water Usage to Enable Water Savings at
Household
Stakeholder
Social Nudges
being impacted
by the nudge
strategy

Regulatory Nudges

Financial Nudges

All stakeholders

Amending Development Control Regulations
The DCR or equivalent land-related regulations should
be modified to incorporate low flow/use fixtures anddual water systems (blue/grey) in new and existing
constructions. Minimum standards for water saving
at the household level, practices such as reusing grey
water in landscaping and other purposes should be
included. Adoption of green building norms can also help
maximise water efficiency.

Public sector
includingscientificcommunity

Minimising Non-Revenue Water
Enforcing the implementation of advanced metering
technologies, regular leak detection and repair
programs, and robust monitoring systems, thereby
reducing non-revenue water levels. Substantial watersavings can also enhance the financial viability of water
utilities, promote water conservation practices, andsafeguard water availability, especially in scarce areas.
Compulsory Water Metering
Currently, water charges are primarily calculated
on plot size, and water meters can help understandconsumption and savings. Coupled with volumetrictariffs this can be a deterrent to wasteful usage of waterand enhance the water revenue at local government
levels.

Non-Linear(Increasing Block)
Price
Adopt tariff
systems where,
the tariff increases
telescopicallyfor different
consumption
blocks, thereby
acting as adeterrent foroverconsumption.
This also helps
increase revenue
collection.

Mandate water-saving fixture compliance in all projects
Mandating that all public infrastructure projects,
including housing, be built with water-saving fixturesand comply with minimum green building standards.
These mandates will have to reflect in the designs,
tenders and budgetary allocations of any new project
undertaken by the government.

Encouraging Environmentally Responsible Behaviours 29

Stakeholder Social Nudges

Regulatory Nudges

PrivatesectorCreate a Star Rating System
Having a star rating system/ equivalentlabelling schemes for water appliances/
fixtures, similar to electronic appliances, canhelp users in making sustainable choices.
Such fixtures can save water and energy
due to the overall reduction in pumping,transportation and purification.

Database of water-efficient
products
Showcasing brands manufacturing
water-efficient fixtures on a
public database which allows
for comparison between
different products. This can also
be linked to a marketplace forpurchasing these products. Thiscan significantly reduce instancesof greenwashing and would
reward water-efficient productmanufacturers.

Financial Nudges

Subsidisingwater-efficientequipment
manufacturing
Providing incentives
and subsidies
to incentivise
manufacturers togradually transition
their product lines
Increase manufacturing of Water Efficient
towards water
Fixtures and Appliances
efficiency. These
Mandates for manufacturing low-flow
incentives can initially
fixtures and appliances, and incorporating
be targeted at smallersaving modifications to existing products
manufacturers andwherever feasible can create a larger enabling can be accompanied
environment for consumers.
by technical support
required to makethese transitions.
Efficiency Disclosure in Advertising andMarketing of Star-rated Products
Mandates to disclose water savings/loss on all
marketing and advertising content releasedby brands for water fixtures and appliances.
This can not only help boost conservation
behaviours but also create competition
between brands and increase the choices forpurchasing water efficient products.
Mandatory water saving and reuse features
Mandatory dual piping, grey water treatment
and recycling features to be mandated for all
new developments

PeopleBehavioural Change Campaigns
Campaigns targeting domestic,
commercial and bulk water
consumers should be undertaken.
Schools, youth groups can play amajor role in ensuring householduser behaviour. Easy to understandFAQs and ‘how to’ guides canalso be a strong nudge towards
enabling conservation behaviour.
Real-time neighbourhood-level
dashboards
Publicising water use levels
can apply social pressure on
consumers to reduce their water
use footprint. Public dashboards ofneighborhood-level comparison
on water use per capita (including
in billing)/ water use mapping
platforms/ daily water dashboards
can be effective tools.

30 Urban 20 2023 White Paper

Rules for Preventing the Unproductive Use of
Water During Emergencies
Given the potential impact of climate change
on urban water scarcity, enforcementof protocols and rules for sustainable
management during periods of stress must
be enlisted by city governments to make themost efficient use of available supply. This canhelp reduce inequity while ensuring fairness
in access for poor and marginalised groups incities.

Purchase Subsidies
for Water-Efficient
Products
By offering subsidies,governments canmake water saving
products and fixtures
more affordable
and accessible
to consumers.
Consumer demand
will further enhance
the supply throughmanufacturing.

Good Practices
Water Efficiency Labelling System |Singapore
Nudge: Star Rating for Appliances
Case overview: The Singapore government has actively
promoted water conservation by encouraging the useof water-efficient appliances and fittings. This includes
implementing maximum flow rates for taps and mixers, aswell as maximum flushing capacities. The Water Efficiency
Labelling Scheme called for the use of water efficiency
labels for various fixtures and appliances commonly used at
the household level. This labelling scheme helps consumers
make informed choices and encourages suppliers to
introduce more water-efficient options to the market.

Reduced NRW | Manila
Nudge: Minimising Non-Revenue Water
Case overview: Manila Water has successfully managed
to reduce the level of Non-revenue water (NRW) which
represents the water lost due to leaks or illegal connections
that is not accounted for in billing. The World Bank sets
a standard of 25% or lower for NRW while Manila Water
maintained an average NRW of just 12.69% in 2022,
which was among the lowest among Asian countries.
Since 1997, Manila Water has been focusing on reducing
non-revenue water loss through measures such as
network reconfiguration, measuring supply volumes
accurately, leakage control and repairs, supply and pressure
management, and meter management programs.
Leaks and illegal connections are overcome throughactive engagement with communities, and undertaking
maintenance and rehabilitation of aging primary lines tominimise system failures.

Encouraging Environmentally Responsible Behaviours 31

08/
Nudging behavioural change Industry
Key action area: Encouraging MSMEs to transitions towards sustainableproducts and processes
Stakeholder
Social Nudges
being impacted
by the nudge
strategy
All stakeholders

Financial Nudges

Priority for green entrepreneurs
in government procurement
Systems can be set up to givepriority to green entrepreneurs
in government procurements
and tenders. This would help
boost their business, help initial
viability and give increased
visibility to their products.

R&D on green technologies
Governments can fund an
R&D ecosystem for green
products and manufacturing
processes. Breakthroughs inthis can be directed to MSMEs
through resource centres or
be directly incorporated into
Business-in-a-Box models.

Business-in-a-Box model
Formulating
business-in-a-box models
that can have standard
business plans, financial
projections, marketingstrategies and other support
material for setting up green
businesses. The government
could also set up a simplified/single window clearance
system pertaining to setting upsuch predefined businesses.

Priority funding for green
enterprises
Priority funding support may beprovided to industries engaged
in the manufacturing of green
products or engaging in green
manufacturing processes. This
funding assistance could be
provided as startup capital or for
expansion and transition.

Creating an ecosystem for Green
Entrepreneurs
Creating a platform for green
entrepreneurs to interact
and learn from each other,with technical and financial
assistance for establishing ortransitioning to green businesses.
The platform will also need to begender-responsive to address
the specific challenges faced by
women entrepreneurs.

Public Sector
includingscientificcommunity

Private Sector

Regulatory Nudges

Green Entrepreneurs Resource
Centers
Establishing a green
entrepreneurship resource
centre which can aid new andtransitioning entrepreneurs.
These centres can be used
to provide resources andinformation, and facilitateprocurements of new
entrepreneurs looking to set up
green businesses.

32 Urban 20 2023 White Paper

Stakeholder

Social Nudges

Regulatory Nudges

Financial Nudges

Private Sector

Green rating system for MSMEs
Establish a green business rating
system to recognise and reward
green entrepreneurs. This could
be done by the government or
industry associations. The rating
systems can be linked to annual
awards and recognitions, which
can help boost the profile ofbest-performing enterprises andincrease competition in green
transitioning.

Mandates, for green transitioning
The government could mandate
gradual green transitioning ofenterprises. Such mandates should
be applied in a phased manner
on medium and small enterprises,
giving them sufficient time totransition. This transition could
also be aided by providing funding
through zero-interest loans or grants
to enterprises and the drafting ofStandard Operating Procedures thatwould simplify the process.

Subsidising purchase ofgreen machinery
Establishing a subsidy
or rebate scheme tooffset cost differentials
between conventionaland green equipment
might encourage more
entrepreneurs to opt for thepurchase of the latter.

Green minimums for new enterprises
Establishing mandates forminimum requirements of green
processes for the setting up of
new enterprises. These mandates
can initially begin with medium
enterprises and gradually be
expanded to small enterprises. It
might not be advisable to mandate
these for micro-enterprises till thedevelopment of an ecosystem forgreen processes, as the initiallyhigh capital investments for green
technologies might become
prohibitive to setting up newenterprises.
PeopleDevelopment of an online
marketplace for green products
Establishing an online
marketplace would help withthe promotion of green products
to consumers. This would alsoease the comparison between
various green products andhelp minimise greenwashing bycompanies.
Increasing awareness on thepotential and future of green
businesses
Youth enrolled in various
education (high school/
university) or vocational training
programs can be made awareof the future potential of thegreen sector and of green
transitioning within each sector.
This might help nudge their early
career decisions towards theseindustries.

Green Education
Education, skilling and capacity
development programs should start
incorporating green transitioning
within their training modules. This
would help create a workforce that is
knowledgeable in these processes.

Rebates on purchase ofgreen products
Establishing a rebate
scheme for enterprises thatpurchase green products
from recognised green
enterprises. This system
could help in setting up
a steady demand andencourage more enterprises
to transition towards green
products.
Scholarships for Green
Education
Scholarship programs could
be established for students
opting for programs/
degrees/modules pertaining
to green transitions andgreen economies. This
could help nudge choices infavour of these subjects.

Encouraging Environmentally Responsible Behaviours 33

09/ConclusionIn order to enable pro-planet and environmentally
responsible behaviours, robust environmental policies
need to be enacted and enforced, mandating policy
nudges to come in at all levels - upstream, midstream,and downstream. Only then can an ecosystem-level
behavioural change take place. It will also be essential tosetup monitoring, evaluation, and feedback mechanisms
to measure the effectiveness of environmental initiatives
and policies. This, along with transparent data andinformation sharing, can enable accountability and informed
decision-making.
This paper has recommended key nudge areas that canhelp to mainstream environmental concerns across various
stakeholder groups and encourage whole-of-systembehavioural change.
A. Strengthen and upgrade legislations and policies:
Enact and enforce robust environmental policies
that incentivise, mandate and inculcate responsible
behaviour at all levels. This includes regulations oncarbon emissions, waste management, water scarcity,
sustainable resource use, and conservation measures.
Such legislation must account for the adoption of new
innovations, technologies and systems.
B. Monitor, Evaluate, and Rebuild: Establish monitoringmechanisms to assess the effectiveness of initiatives
and policies, regularly evaluate progress towards
environmental targets, and adjust strategies as needed.
Share data and information transparently to promoteaccountability and inform decision-making.
C. Capacity building and upskilling across levels: Several
eco-centric nudges hinge on whether people areskilled and understand the implications of climate
action. Investing in education and training programs forpolicymakers, government officials, and professionals
working in relevant sectors can enhance theirunderstanding of environmental issues and their ability
to develop and implement effective policies.

34 Urban 20 2023 White Paper

D. Matching funds with policy commitments: By matchingfunds with decisions, governments can demonstrate
their commitment to action by matching resources tosupport efforts by various stakeholders. This becomesa powerful incentive for stakeholders, including theprivate sector, to engage in environmentally responsible
behaviours and projects.
E. Incentivising and subsidising manufacturers andconsumers for positive action: Offering financial
incentives, tax breaks, and subsidies for environmentally
responsible practices can be a powerful motivational
tool and make it economically viable for individuals
and businesses to make sustainable choices. Researchand Development in sustainable technologies, green
infrastructure, and eco-friendly products can also be
supported to maximise options and choices.
F. Foster Collaboration and Partnerships: Encouraging
collaboration between governments, businesses,
NGOs, and communities to work together towards
common environmental goals. Fostering partnerships todevelop innovative solutions, share best practices, andimplement sustainable initiatives can ensure inclusive
decision-making and collective action.
G. Harnessing the power of women and youth-led
change: It is important to mainstream the roleof women and young adults in championing
environmentally responsible behaviours as leaders,
facilitators, and nudgers. Governments can create
platforms and opportunities for women and youth toparticipate in decision-making, policy formulation, andimplementation.
H. Investing in an enabling environment for climatechange start-ups: Governments should foster avibrant start-up ecosystem and support the growthof enterprises in the environmental sector. This can beachieved by providing financial incentives, incubation
programs, and regulatory support. Encouraging
innovation and entrepreneurship in this sector can leadto ground breaking solutions and disruptive technologies
that address environmental challenges.

I. Institutionalise pro-planet systemic changes acrossgovernment departments: Governments should
embed sustainability principles into the DNA of theiroperations, ensuring that environmental considerations
are consistently integrated into decision-making, policy
formulation, and program implementation across all
government departments. This approach helps create aculture of sustainability within the government and sets
a positive example for other stakeholders to follow.

J. Raising Awareness and Education: Implement
comprehensive awareness campaigns to educate thepublic about environmental issues, their impact, andthe importance of responsible behaviour. Promote
environmental education in schools, universities,
and citizen community centres to foster a culture ofsustainability and empower individuals with knowledge.
By implementing these measures, we can create green
pathways that embrace an ecosystem approach towards
environmentally responsible behaviour.

Encouraging Environmentally Responsible Behaviours 35

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