The Governance Framework of the Urban Environment

The institutional framework for Urban Environmental Management, which consists of norms, laws and regulations and the institutions in charge of implementing them, determines the mechanisms through which the diverse actors - interested in or affected by environmental problems - administer progressive environmental improvements and assure the sustainability of natural resources that affect the functionality of urban centers.  Some examples of these mechanisms include public participation in strategic planning, budgeting, auditing and reporting in decision-making processes, among others.  These instruments help promoting a more transparent and fair governance environmental structure. 

Usually, the responsibilities, privileges and capacities for urban environmental management remain within the main municipal management body; nonetheless, in some cases, inter-municipal entities assume that managing task.  The following are key aspects that municipal governments  as key actors to address urban environmental challenges- may consider to achieve a better performance when managing the natural resources and environment in urban centers: 

Coverage, Quality and Management of Public Services and Infrastructure: In order to ensure an adequate quality of life for the urban population, the institutions and authorities in charge of the provision of public services and infrastructure shall promote equal access to them while assuring their sustainability (e.g. access to water and sanitation, provision of waste management services).  An adequate administration of the public infrastructure, natural resources and the services that they provide, is a key determinant to the effectiveness of environmental management in a city.  An example of this may be illustrated by the municipal entities in charge of managing or supervising water services.  These entities are responsible for establishing tariffs and collection methods of payments as well as for the maintenance and operation of public infrastructure through different mechanisms including concessions to private operators or inter-organizational managing agencies.   

Land-use Planning:  The capacity of municipal governments to manage, implement and regulate land-use processes is critical to secure the environmental sustainability of a city.  For instance, adequate zoning codes (e.g. codes defining densities, uses and their coefficients) as well as the capacity of municipal authorities to execute and supervise these norms are fundamental to an effective environmental management institutional framework. 

Land-use regulations are relevant since they impact not only the urban centers but also their peripheries, which in many times are the biggest supplier of natural resources and environmental services of cities.  Land-use planning is also linked with the expansion of urban infrastructure networks (e.g. roads and transport systems) and determines growth, energy consumption and mobility patterns of the urban population.  On the other hand, weak land-use planning processes can promote and accelerate environmental degradation, increase natural disaster risks and vulnerabilities and have negative health impacts (e.g. low-income settlements located in instable soils or next to polluting industries).

Environmental Regulation in Economic Activities:  The capacity and effectiveness of municipal governments to regulate industries through instruments of command and control, such as permits, licences and standards, among others, are determinant to the environmental quality of urban centers.  These instruments derive mainly from the national or local environmental legislation and are executed under the principles of municipal norms.  Norms may be of two types: 1) environmental quality or norms or performance standards and ii) end-of-pipe regulations, which in many cases allude to the adoption of clean technologies that help reducing pollution.  Both performance and technological norms aim to reach established targets; if these are not achieved, regulators may impose penalties relative to the infractions. 

Other mechanisms that have been incorporated in the environmental legislation of Latin America include environmental licenses and environmental assessments.  Examples of the latter are: Environmental Impact Analysis, Strategic Environmental Assessments and Environmental Auditing, all of which can be used at the municipal level when approving public and private investment projects.  Additionally, the private sector  for example, through industry associations  is working more proactively with municipalities to implement environmental information systems and voluntary agreements to reinforce quality control, monitoring and evaluation of their activities that impact the environment.      

Moreover, municipal authorities can count on the use of economic instruments, already incorporated in the national and local legislation, for promoting environmentally friendly practices.  Examples of these instruments include taxes, subsidies, arbitrages, fee-for-services, polluting charges and transferable permits, among others.  The main objective when applying economic instruments for urban environmental management is to create financial incentives for mitigating negative environmental impacts and adopting clean technologies and environmental conservation practices and behaviours.  Economic instruments incorporate social and environmental costs in the pricing of goods and public services.  Therefore, they send a clear message of the relevance of environmental protection to the diverse sectors dealing with the natural resources and environment (e.g. industry, users, and citizens). 

In the area of municipal management, the use of economic instruments is key to revenue generation for financing and maintaining public services.  Their use also helps strengthening the planning, regulatory and monitoring capacity of the municipality and consequently, helps building a responsible environmental management framework.  In sum, municipal governments will be likely to succeed in managing environmental challenges when adopting and implementing economic instruments effectively, and articulating them with those based on command and control principles.

Institutional Capacity of Municipal Governments: Local environmental policies are a combination of intentions, rules, actions, incentives and norms of conduct.  In order to formulate adequate policies, it is necessary to take in consideration multiple factors that go beyond the policy objectives and goals.  Financial allocations in municipal budgeting are fundamental to determine the way to achieve the objectives proposed.  Additionally, the analysis of policy formulation should be linked to its implementation processes. 

The administrative and financial capacity of municipal governments is a main factor for determining the effectiveness of environmental management as well as its economic and social performances.  Such capacity is determined, for example, by the municipal budget allocations and the adequate use of economic instruments for environmental management.  When municipal governments have the capacity to generate and administer their own resources to address environmental challenges responsibly, the environmental agenda can gain support and contribute both to the national and regional environmental sustainability.  In addition to the traditional instruments for environmental management there are financial instruments such as fiscal transfers and ordinances.  These, for instance, impact the capacity of the municipal government to collect financial resources for environmental management. 

The relationship between the central and municipal governments has an effect on the effectiveness of urban environmental management processes.  The central government influences directly the definition of policies, programs and projects at the local scale through planning and environmental agencies, and related sectoral and decentralized entities.  At the same time, the influence that central agents exert depends on the level of the decentralization process as well as on the administrative and political subdivisions in each country.  Similarly, the balance of power between the central and local governments can either facilitate or hinder the adequate administration of the natural resources and environment at the local level.  In most cases, linkages between central and municipal governments are established through laws, mandates or agreements that designate administrative responsibilities, and transfer competences and financial resources to municipalities.  Nonetheless, designation of privileges to municipalities does not always imply that the necessary financial incentives will be transferred to them in order to enhance their technical and administrative capacities. 

Leadership and political will of public authorities to foster an environmental agenda at the local level are determinants to the performance and achievements of municipal governments in this arena.  An effective environmental management framework requires the commitment from authorities in order ensure that capacities, including technical and technological, are transferred throughout the different organizational levels.  These capacities are essential so that municipal governments can lead and facilitate strategic planning and participatory processes, and implement policies and programs pertaining to urban environmental agenda.  Additionally, commitments from authorities can improve interinstitutional coordination processes (both horizontally  with local agencies, and vertically - with regional, national and international agencies) and consolidate alliances with civil society groups and the private sector, including academic and scientific organizations. 

Civil Society and Private Sector Participation: The capacity of municipal governments to enable and strengthen participatory processes to engage both civil society and private sector in planning and decision-making activities is essential to consolidate local environmental governance.  Good indicators of responsible environmental management may include the increase of information dissemination practices and participation strategies, reach-out to and inclusion of non-governmental organizations and community groups in the different stages of management processes.  Moreover, municipal governments may implement mechanisms to promote and establish alliances with the private sector in order to assure compliance with regulations.  These mechanisms include green seals, voluntary certification and corporate social responsibility programs, among others.  They contribute to increase legitimacy of private actors and the credibility of government-industry joint actions.  In the region, the private sector has been a leader when introducing clean technologies and implementing voluntary measures for environmental quality and compliance and therefore, it has demonstrated its role as agent of change and innovation