http://www.boverket.

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Barriers to sustainable urban development

This English version is a shortened version of a report in Swedish (15 hinder för
hållbar stadsutveckling 2012) which summarises som of the work of the Delegation
for Sustainable Cities which was conducted between the years 2008 – 2012. The
Delegation for Sustainable Cities had a broad representation of stakeholders,
including representatives of trade and industry, academia, architects, planners,
technology consultants and export promoters were included. One assignment of the
Delegation was to examin which possible systems and structures can comprise
barriers to sustainable urban development and also identifying proposals for
measures and solutions. The assignment with its proposals are presented in “Take
Action now!” published on www.boverket.se.

Barriers to sustainable urban development are phenomena which actively counteract

and are in the way of a desirable change or sluggishness which results in the change
progressing slowly in relation to challenges and targets.
Inadequate physical structures and technical systems, unclear or insufficient
legislation, groups of actors with different targets and agendas, cultures with
approaches which change slowly, time-consuming planning and work forms are
different types of barriers.

The fifteen barriers which the Delegation has chosen to highlight can be divided into
six different groups: barriers related to the three dimensions of sustainability and the
importance of expanding the approaches and including more values (1, 2, 4, 5)
barriers related to silo thinking (6, 7, 9), barriers related to driving forces and
incentives for change (3, 8, 10), barriers related to long term investments in buildings
and infrastructure (11, 12), barriers related to provision of knowledge (13) as well as
barriers related to public and private collaboration (14, 15). Both the three dimensions
of sustainability and silo thinking relate to difficulties of attaining a holistic view in the
planning, while barriers in the other four groups have a more direct connection to
economic priorities and financing.
1. Visions of sustainability have not been integrated in different policy areas
A coherent strategy for leading urban development in a sustainable direction is
lacking. Visions of sustainability have not been integrated with a holistic view in
different policy areas.

Sustainable development requires a holistic perspective where economic, social and

ecological aspects are considered and weighed together. How the three dimensions
should be understood has been made concrete and precise in different contexts. The
Brundtland Commission defined sustainable development as ecological
sustainability, social inclusion and economic growth.
The high-level panel on global sustainability of the UN adds the concept social
resilience, i.e. the society’s conditions for adjustment in relation to crises and new
situations. In the Swedish SymbioCity concept, the term ‘sustainability’ is
supplemented with the spatial dimension which is of key importance for sustainable
urban development. Institutional factors and integrated urban systems are also seen
as important means for attaining sustainability targets.

The difficulties of highlighting and handling target conflicts and weighing together the
three dimensions in decision situations are well-known. In a current report, the high-
level panel states that an important cause of sustainable development not having an
impact in practice is that the sustainability vision and economic policy are still two
parallel independent tracks.

Sustainable development has not been integrated in the economic system conditions
and therefore has neither been included in the central current in national and
international economic political debate. As a result of this, public economy analyses
with adequate breadth are conducted too rarely to illustrate the actual costs of both
taking and not taking measures.
The lifecycle perspective is rarely applied. The panel searches for new approaches
which are able to take into account human, social and ecological values.
The panel also proposes that the international community should measure
development with other measures alongside GDP and develop a new index for
sustainable development. The World Bank presents similar ideas. Other actors
question the dominating role of the growth perspective in social planning and
advocate social planning which is based on several welfare targets.

As the sustainability challenges are brought to a head, the need of collective and
politically anchored strategies for steering urban development in a sustainable
direction is increasing. The concluding chapter discusses how a strategy with
sustainability as a principal target in practice should be a starting point for collective
national urban policy.

2. Quality of life issues and the attractiveness of cities are given too little
weight in the context of urbanisation
Values linked to the quality of life and to the attractiveness of cities are not given
adequate importance in planning and in the basis for decision-making.
An ambition which is becoming increasingly explicit is that urban development should
take place with human beings as a starting point. The ambition is based on insights
that the climate issue is mainly about the survival of human beings rather than the
survival of the planet. Urban development is about human beings in the city
– their health, values, experiences, relationships with each other and conditions for
making choices in everyday life. Urban development should be based on how human
beings experience and use the physical environment and how it can be made more
safe, pleasant, attractive and ecologically sustainable. Sustainable urban
development requires that human beings can support themselves, develop
meaningful relationships and influence their situation and local decisions. If human
beings cannot fulfil their basic needs, this contributes not only to a lower life quality
for individuals, but also to ill health, crime, unsafeness and lower harmony in society
by large.

Sustainable urban development is thereby about promoting and creating values

which provide conditions for a richer quality of life in many respects and which
contribute to the greater attractiveness of cities. So that, for example, architectural
quality and urban environment quality, health, equality, safety, trust and equity can
have an impact in practice, it is necessary that these values are highlighted in
widened public economy calculations. The soft values need to be lifted to the same
level as other more quantifiable values. Too often investments for, for example,
children and youths are not given adequate importance or they are levied as costs
when instead it is a matter of investments which often repay themselves many times
over in the future.
The State can allocate resources for developing broader approaches and public
economy analyses which are able to both highlight environmental effects and values
linked to the quality of life and to the attractiveness of cities in a lifecycle perspective.

Everything cannot be measured and valued in economic terms. The unmeasurable

values of city life must also be included in the change process and become a part of
the proposals which are developed. This requires a planning culture where
unmeasurable values are taken into account early in the process.

3. Unsustainable lifestyles and behaviour leads to high carbon dioxide

emissions
Unsustainable lifestyles and behaviours leads to high carbon dioxide emissions and
high resource consumption. Focus on well-being can be a driving force for lifestyle
changes but needs to be combined with economic incentives and initiatives to break
a structural constraint.

Creating technological breakthroughs and calling for lifestyle changes are two
important strategies for attaining sustainable development. These two strategies are
mutually supportive in many aspects. The realisation of a technology shift to smart
energy use in cities requires that technical system solutions and the lifestyles of
human beings support and strengthen each other positively.

The travelling habits, energy use in homes, food habits and other consumption of city
dwellers have a large impact on the collective resource consumption and the
collective carbon dioxide emissions in cities. In traditional environmental reports,
consumption-related carbon dioxide emissions are underestimated as carbon dioxide
emissions from imported consumption goods, where carbon dioxide emissions which
occurred abroad, were not included. In Sweden these account for 55% of the
consumption-related carbon dioxide emissions. City dwellers have, as a result of
among other things, higher income and access to a greater range of consumption
goods, more resource-consuming lifestyles than those living outside cities on
average. The population of a city has different lifestyles which generate different
footprints. Research shows strong connections between a high level of income and
high energy use, but also large differences in lifestyles and thereby energy
consumption between families in the same income segment. The happiness research
of recent years indicates that materialism and consumption cultures are the cause of
stress, while time for close relationships, regular exercise and commitment to life-
long targets and ambitions are factors which provide a breeding-ground for
happiness. A stronger focus on well-being can therefore be an important driving force
for lifestyle changes.

Experiences from previous trials show that a combination of initiatives and incentives
is required to change behaviours: access to better technology and products including
alternative modes of transport, information and consultative meetings, campaigns
and competitions etc. Targeted initiatives towards specific population groups have
also turned out to be successful. The English trial with the York Green
Neighbourhood Challenge was based on the understanding that the potential of
change of human beings depends on where and how they live and their attitudes and
in the trial target groups were identified based on these parameters.

The short journeys account for a large share of the journeys in cities while the
Swedish National Institute of Public Health identifies a lack of physical activity as a
large threat against public health in Sweden. Breaking a structural dependency on
cars and creating conditions for physical activity in everyday life are examples of how
urban planning can contribute to better conditions for less resource-demanding and
more healthy lifestyles. Making room for urban cultivation is another example. Access
to qualitative parks, greenery, safe and attractive public spaces, footpaths and cycle
paths and sports centres provides conditions for exercise and recreation in everyday
life, as well as meaningful leisure activities in the city. Leisure trips and holiday travel
account for high carbon dioxide emissions and therefore conditions for seeking
recreation and having holidays at home are both a climate issue and an equitable
issue. Densification which results in better connected cities is positive but a too far
driven densification of cities in which opportunities for recreation are strongly limited
is not acceptable.

The UN panel emphasises that sustainable urban development requires active

choices.Municipalities, regions and the State can set frameworks and provide
conditions for lifestyles free of fossil fuels, but it is still individuals who make the
choices.

4. Increased social and spatial division in cities

Increased social and spatial division in cities is a threat against social sustainability
and contributes to lower harmony and more ill health.
The increasing segregation in cities is a threat against socially sustainable urban
development. When different groups do not meet in everyday life, the risk of
intolerance and opposition increases. Segregation tends to result in households
which have little resources being concentrated in less attractive residential areas
where welfare development is lower. The disadvantaged city districts are often
physically separated from the city’s other parts and the lack of interesting activities for
the surroundings in the city district contributes to isolation and marginalisation.

Greater income differences in society strengthen the negative effects of segregation

and can be read as higher income differences – but also as higher differences in
health and life expectancy – between different districts in the same city. Research
indicates that there is a connection between large income differences in a society
and factors such as higher physical and mental ill health, a higher level of stress and
shorter life expectancy among those in the population who have the lowest incomes.

There is voluntary and involuntary segregation. In the first case, people with the
same lifestyles, age, socioeconomic conditions or ethnic origin come together based
on their own free will. Segregation which takes place based on free will can also
have negative effects on an aggregate level. The concentration of the middle class to
certain suburbs or city districts contributes to the division of the city to a high degree.

The fact that people in the same life situation draws to each other is not problematic
per se. The problem is the scale at which this takes place – that there are segregated
city districts and suburbs where the population, through an unfavourable localisation
is more or less excluded from the rest of the offering of the city and region. On a
regional scale there is a division between districts which develop and stagnate
respectively.

The Swedish National Board of Housing, Building and Planning describes that even if
the socioeconomic forces which drive segregation processes are too large to cope
with, it is still possible to create conditions for integration through a number of
measures. “Through a diversified distribution of apartments, mixed forms of tenure
and good meeting places, you can attain urban environments which, taking into
account the circumstances promote rather than counteract integration. By bridging
barriers and boundaries in the built structure, you can achieve better contacts
between different parts of the city, and through well-developed public transport,
better contact opportunities are also created. In addition to creating conditions for
integration, measures should also be taken against the negative effects of
segregation. And then many times it is perhaps more about measures at an individual
level or group level, rather than area level.”

Initiatives for breaking the segregation are often project-based and one-sidedly
focused on areas with few resources. Initiatives which focus on areas with a high
level of resources often encounter strong resistance. In order to cope with problems
of the greater division in cities, municipalities need to combine measures to lift
marginalised areas, city districts and suburbs while not continuing to contribute to
strengthening the segregation by planning for new “monocultures.”

Overcoming strategies which aim to create conditions for different population groups
to meet and develop relationships is becoming increasingly important. Protecting
and developing public spaces and planning for children from different areas to meet
in schools and through leisure activities are such examples. Work in the direction
towards the long term visions must take place in many well-coordinated stages.
5. Insufficient dialogue with citizens about development of the city
Insufficient dialogue with citizens about the city’s long term development entails a
democratic deficiency. Insufficient feedback and monitoring of conducted dialogue
processes prevents knowledge-building.

Participation and influence in society are fundamental for good public health, as well
as for the degree of taking responsibility for your immediate environment.
Many key projects for the city are dependent on the citizens’ acceptance of its
implementation. Insufficient dialogue processes can result in a local negative opinion
and block the implementation of projects. Good experiences of dialogue with
residents and local business proprietors have a ripple effect which increases the
capacity of the next investment.
A negative process spreads in the opposite direction. A clear recipient of the results,
feedback and that the intentions of the dialogue are clear are important. In our
current “network society,” there is a greater need of early and continuous dialogue on
the city’s development with the city’s citizens as a supplement to dialogues during
special urban planning projects.

As the only regulation, the Planning and Building Act commands consultation with the
citizens. A deficiency is that consultation takes place early in the comprehensive plan
process and late in the detailed development plan process, but not in between.

Many municipalities have worked for a long time and methodically with different types
of citizens’ dialogues and there is also a great deal of research from the 1970s about
the importance and value of citizens’ dialogues. However, a shortcoming is that time
has not been spent to systematise and learn from dialogues conducted previously.
Focus is often on a specific process which has lacked opportunities to utilise and
generalise the lessons.

The municipalities can strengthen the influence processes by more clearly valuing
dialogues and allocating resources for this in the annual planning and budget
process. The State can contribute to the development by allocating research
resources and coordination resources for continued development of networks for
knowledge sharing between cities, researchers and other actors. During new state
investments which include dialogue processes, it is important that experiences and
lessons from previous processes are utilised.

6. Silo thinking approach impedes holistic solutions

The silo thinking and silo actions impede holistic solutions and realisation of the
vision of the integrated and multi-functional city.

Realising the vision of the integrated and multi-functional city requires a holistic view,
collaboration and an organisational system approach, in contrast to the current
sectorised silo approach and silo actions in which each actor prioritises their own
special interest, and each problem can be handled separately from other problems.

Sectorisation and specialisation are an old phenomenon which formed the basis of
much advancement. Sectorisation contributes to streamlining benefits and facilitates
division of responsibility and demands for accountability. It is the most common
organisational principle in state, regional and municipal administration and in both
private trade and industry and within university and college spheres. The drawback is
that a too far driven sectoral approach impedes actors to cooperate on holistic
solutions. The problem becomes aggravated by institutionalised power relationships
maintaining and strengthening the negative effects of sectorisation by giving some
special interests precedence over others. Some sectors (for example, the energy
sector and transport sector) have support in stable measures and clear knowledge,
while other sectors which represent soft values (for example, cultural heritage
preservation) find it harder to assert their interests.

To a large degree the silo thinking we grapple with now have been inherited from a
modern planning tradition which to a great extent solved conflicts through division of
function and physical distinction and large-scale solutions. Many of the current
planning tools were originally developed to facilitate large-scale industrialised
construction of residences during the extension of the environmental programmes.
The current urban construction tasks consist of supplementation and adjustments in
existing urban environments and development of ‘mixed cities’ to a large extent and
then the tools function in a worse manner.

The fundamental sector division of society is difficult to move away from.

The solution lies in developing cross-border collaboration processes and integrated
planning models and by organisations appointing “cross-border crossers,” i.e.
persons who move between different spheres and bring with them and mediate
approaches, values and knowledge. In the management of the process, an
understanding of the entirety is required.

Attempts to break the sectoral approach and initiate long term, cross-border
processes need to be promoted in both education and professional life. Monitoring
and feedback on experiences are key for gradually being able to evaluate and
improve the processes so that they really result in system changes. Investments in
cross-sectoral perspectives in education are important for laying the foundation of an
integrated approach at an early stage and a habit among students to collaborate
across discipline boundaries. An investigation which the Delegation conducted on
how Swedish colleges with a planning specialism work to incorporate cross-sectoral
perspectives in the education shows that there are structural, mental and cultural
barriers which prevent teaching cooperation and exchange of students across
traditional sectoral borders.

7. Lack of coordination within and between different levels

Lack of coordination within and between different levels is an effect of a silo thinking
approach and results in difficulties for municipalities to realise good holistic solutions.

Urban development is a complex activity which takes place through a targeted

interplay between public decisions and market decisions against the backdrop of
economic, technical and social trends. Legislation, regulations and the adaption
strategies of human beings collaborate. The responsibility and disposition to attain
sustainable urban development is shared between the State, municipality, companies
and individuals.
Through laws, other regulations, targets and limits, taxes and grants, the Swedish
parliament and government, as well as state authorities set many of the frameworks
at a national level for other groups of actors. Direct impact on the development of
cities takes place through localisation of state activities and investments in
infrastructure. By means of investments in roads and railways, the Swedish Transport
Administration has a great influence on the development of cities. The State can also
influence the development through public discussions and investigations.
Municipalities have the overall responsibility for planning and building pursuant to the
Planning and Building Act. Therefore, municipalities play a key role in urban
development, together with the private building and property sector, citizens and
other actors.

All urban building is local and good holistic solutions can be realised through site-
specific considerations between different requirements. At the same time, it is
necessary that municipalities coordinate their planning with neighbouring
municipalities and other municipalities in the region. In many cases, inadequate
regional collaboration and a too rigid handling of the plan monopoly has resulted in
inadequate holistic solutions.

Many municipalities also experience that state prescriptive sectoral requirements are
often in the way of good local solutions and that often these requirements also
conflict with each other. The Swedish Association of Local Authorities and Regions
describes how many municipalities experience a lack of coordinated support from
central authorities when they plan and build cities which take noise aspects into
account. State sectoral authorities impose different requirements and set up criteria
which municipalities should weigh together. The Swedish National Board of Housing,
Building and Planning, The Swedish Environmental Protection Agency and the
National Board of Health and Welfare have general advice which is not coordinated.
Consensus also needs to develop between central and regional authorities. The
county administrative boards apply guiding values differently and lack consensus on
how disturbances should be handled.
Regulations in the Planning and Building Act and the Environmental Code also have
an inherent conflict.
A holistic approach and system for how balancing should be conducted between
different interests is lacking.

The concluding chapter discusses how national urban policy can provide tools for
better coordination of the State’s sectoral interests as well as between state, regional
and municipal actors.

8. One-sided and short term project focus prevents a long term approach
Investments in demonstration projects and pilot projects are important to drive the
development forward. But when a one-sided and short term focus on projects (which
per se do not contribute to long term target fulfilment) dominate long term planning,
this is an obstacle to sustainable urban development.
Sustainable urban development requires a holistic view, system approach and long
term perspective. At the same time we can claim that the development is progressing
towards weaker public management and reduced public funds for investments in
infrastructure which is important for society. All in all, this contributes to reducing the
disposition of the State and municipalities over the development and often, to a too
large extent, transferring power and responsibility to private trade and industry.

The fact that many municipalities do not own land impedes the setting of
requirements with higher ambitions than the minimum levels of regulations and
thereby the development of appropriate urban structures. It contributes to “free land
planning” which is controlled too much by market forces and the initiative of local
developers. In order to meet this development, municipalities need to use market
forces to control the development in the right direction in a more offensive manner.
The estimates should be profitable, but should also be based on environmental
values, and social values in a long term lifecycle perspective. Competition on land
which follows from urbanisation is an argument for more efficient land use and more
robust structures.

Within the framework of a long term strategy, formulating projects which are
conducted and evaluated is an effective model for driving the development forward.
The Delegation has also called attention to the need of continued support for pilot
projects in many contexts. Problems which we would like to highlight in this context
include that planning with too limited project focus sometimes dominates the entirety
and long term planning.

A relatively new but growing phenomenon is that multinational companies enter as

owners in municipal energy and transport companies. A result of the international
ownership is that power and influence opportunities are moved from local actors. A
strategic issue for the State and individual municipalities is therefore how large
national and local control we should have over assets in the form of technical
infrastructures and other functions.

9. Lack of leadership capacity and know-how for complex, cross-sectoral

processes
Lack of leadership capacity and know-how for complex, cross-sectoral processes
comprises an obstacle to the development of cities.
Sustainable urban development is not a condition or end result – it is a direction and
process. Political vision and political leadership thereby become important for
identifying a direction for the development while having preparedness to handle new
situations. Visionary leadership requires the ability to, based on broad analysis, draw
an attractive vision and to develop strategies in collaboration with legitimate interests.
The prerequisites for consensus improve with broad knowledge-building and
participation, which reduces the risk of interest conflicts. Courage is required to dare
to tackle remaining conflicts, take controversial decisions, take risks and provide
mandates and space for creative officials.

An important part of leadership is creating participation and credibility on the direction

of development so that different actors can take their necessary decisions without
risks of radically changed rules of the game. Leadership also involves being able to
mobilise the citizens for urban development.
Citizens’ dialogues are an important tool for this.
Shared knowledge-building facilitates consensus and creates a base for leadership.
Processes for attaining cross-border consensus require broad analyses of a high
quality, development of a shared vision and development of shared strategies. This
provides supporting material for designing options and for the choice of options
based on impact analyses that are easy to communicate and which connect to the
shared targets.
It is essential that experiences from sector-wide collaboration are documented and
evaluated for continuous knowledge-building and experience-building.

10. Lack of incentives for long term sustainable decisions

Lack of incentives for long term sustainable decisions impede a fast reorganisation
and contribute to a gap between visons and concrete decisions and measures.

Many testify that there is a gap between visions and real action. Individual decisions
are not taken in accordance with overall targets and in some cases also breach laws
and rules. In concrete situations, other factors are more important and comprise an
excuse for making deviations from set sustainability targets. Short term economic
interests often get precedence over environmental issues and quality issues. In other
cases, local environmental issues get precedence over regional functional issues.

There are many possible causes of the gap and these have a varied nature. One
cause is the lack of clearly explicit strategies for sustainable urban development
which facilitate choices between different options for acting. The differing time
perspectives of different actors, economies and ambitions result in what is right and
possible in the individual case not being clear-cut. Climate sceptics and other actors
have not taken on board what the challenge entails or have economic or other benefit
from prevailing order persisting. Competing visions are another part of the problem.
Despite most Swedish municipalities embracing the vision of the connected,
functionally integrated, attractive city, there are still external establishments of trading
areas and the expansion of the Swedish societies still takes place to a large extent
with the “car society” as a norm.

In order to bridge the gap between the vision and concrete action, it is essential that
the State creates policy instruments and incentives which steer more decisions in the
right direction. Incentives are needed to encourage actors to comply with applicable
rules, encouragement for actors who surpass set requirements and incentives to take
risks and conduct innovations. For example, the tax deduction for home renovation
(ROT) which is linked to energy efficiency measures could be introduced.

11. Structural lock-ins that are hard and costly

Structural lock-ins that are hard and costly, i.e. buildings and technical infrastructure
with a long depreciation period and expensive operation, curb a fast adjustment.

The buildings and technical infrastructure of cities are long-lived and steering for the
city’s continued development while they command large economical values and in
many cases also cultural history values. The Swedish urban system corresponds to a
real capital value of approximately SEK 6,000 billion. It is therefore important to
supplement the existing structures in a way which permits a good climate, social and
economic function while retaining cultural history values. Significant improvements
can be attained with strategic supplementations, particularly if the measures bridge
the “structural constraints” and release the vast potential in valuation changes,
sustainable behaviour and urban life.

A problem which Swedish cities currently grapple with is that investments in roads
and settlements based on modernism’s function-divided ideals have entailed lock-ins
in socially and ecologically unsustainable structures. The sparse and divided
structures of the city contribute to and preserve an unfavourable socioeconomic
division. In many cities and regions, the inhabitants live with a structural dependency
on cars in which they are dependent on cars to cope with everyday life.

In order to avoid future lock-in effects, it is important that future investments are
made based on an explicit sustainability and system perspective.
The investments which are now made in buildings, roads, parks and green zones,
track infrastructures, water pipes, broadband, smart electricity supply networks
should remain for many decades and should be adapted to new ecological, technical,
economical and human conditions. In terms of heavy investments with a long
depreciation, society must carefully examine whether in the long run there will be
economic resources for operation, as well as the investment being environmentally
and socially sustainable.

12. Insufficient state investments in socially important infrastructure linked to

the cities’ development and needs
State investments in socially important infrastructure are insufficient in relation to the
cities’ development and needs. Another problem is that large infrastructure projects
are delayed due to inadequate consultation procedures at early stages, lengthy
processes and insufficient adaptation to the municipalities’ investments in terms of
time.

Swedish cities and urban regions are now facing extensive needs of investing in
robust socially important infrastructures. This applies to railway tracks for reinforced
large-scale interaction, public transport zones and footpaths and cycle paths in and
between cities and districts. This also applies to investments in rainwater systems
and other climate adaptation measures, as well as IT infrastructures and smart
electricity supply networks which share innovative solutions to realise energy
efficiency targets. The relevant property owners have not yet found any functioning
financing model for the forthcoming energy efficiency of blocks of flats in the Million
Programme areas.

Some of these investments probably require state co-financing to be implemented.

The development is moving towards weaker public management and lower public
funds for investments in socially important infrastructure. This contributes to that
investments need to be conducted based on a combination of public and private
funds.

Often large infrastructure projects are delayed due to lengthy processes with time-
consuming appeals and complaints. The inadequate coordination of state and
municipal investments which follow prevent a quick adjustment. However, the
planning of structures which are difficult to change needs to be given time and should
be preceded by thorough consultation.
The problem often stems from sufficient time for consultation not being allocated in
early stages and that the state infrastructure planning is inadequately coordinated
with the municipal planning. Shortcomings in consultation in early stages entail more
appeals and more problems at the end of the process and in the completed
environment.

13. Insufficient support for research, learning and pilot projects

Insufficient support for research and learning in relation to the importance of cities is
an obstacle to favourable development. This applies to the entire chain of research,
development and demonstration in the form of pilot projects and monitoring as well
as training at different levels.

Solving the problem of cities requires new knowledge which is developed in

collaboration between universities, trade and industry, municipalities and other public
authorities. We require interdisciplinary and practice-based research which focuses
on solving complex problems. Research which entails cooperation between
researchers from different disciplines and/or cooperation with practitioners is time-
consuming and is traditionally considered as providing less useful qualifications than
specialised research. This type of research is therefore not favoured in the
competition for research funds. In 2009 the Delegation for Sustainable Cities
conducted mapping of the investments of
Swedish research financiers within the area sustainable urban development. The
mapping reveals that of the collective research resources, less than one per cent
goes to cross-sectoral and practice-based research within the urban development
area.

In order to have an impact and attain progress, pilot projects and experimental
activities are required, both in new and existing environments, where front line
knowledge is converted to innovative solutions. New thinking is associated with risk
and therefore continued state incentives which stimulate new thinking with a holistic
view and innovations are necessary.
Dissemination of knowledge and continuing professional development of those who
are already active is another important issue. Inadequate knowledge among many
key actors in the town planning sector and in many municipalities is an obstacle to
sustainable urban and regional development. Now many actors do not take on board
new research results and lessons from good examples to a sufficient degree to apply
in their own activities, which partially depends on that the research is too theoretically
focused and therefore does not provide practically usable results. Inadequate
monitoring hinders the learning from own experiences. Investments in the knowledge
boost and greater expertise among actors in the execution stage are essential for
realising the intentions in changed regulations and collective visions.

14. Lack of suitable business models

The lack of suitable business models, which regulate cost and profit allocation
between different parties, comprises an obstacle to system-integrated solutions in
Sweden and for export of Swedish knowledge and technical solutions.

Urban development is now a field of activity which is growing and actors are
increasingly getting involved and seeing business opportunities. System-integrated
solutions require collaboration between different actors. The incentives of trade and
industry to collaborate on projects are a key issue. However, the earlier cooperation
method of actors does not function any longer and this causes collisions in business
models.

Solutions are dependent on the existence of driving forces for market-driven actors to
deliver sustainable services. Construction of systems which will operate for a long
time necessitates a new type of business model which stimulates sustainable town
planning and which allocates profits and long term risks between different actors.
Accordingly, the lack of functioning business models is an obstacle to the export of
Swedish knowledge and services within sustainable urban development.

Swedish knowledge, which is demanded in other countries and marketed under the
umbrella concept SymbioCity, includes the skills for a holistic approach, experiences
of working in sector-wide processes and sound planning and environmental expertise
coupled with experiences of integrated system solutions. There is considerable
potential for commercialisation of municipal expertise among Swedish actors,
regardless of whether the knowledge and services are organised and marketed in
private or public activities.

A problem which is highlighted in different contexts is that pursuant to the Swedish

Local Government Act, municipalities may not compete with commercial actors.
Among others, the Delegation for Sustainable Cities, the Swedish Trade Council and
Swentec have together with Swedish municipalities, examined different business
strategies to enable export of municipal expertise in collaboration with expertise
among private actors. Initiatives where the State is included in the dialogue and
gathers actors are still essential. Greater clarity on the assignments, work methods
and collaboration of authorities which promote export is required. There is a need of
continuous learning processes for relevant actors, greater insight of different
business strategies and models as well as insight and understanding of different
cultures and social systems.

15. Conservative public procurement rules

Public procurement is an important policy instrument for sustainable urban
development. Conservative rules for public procurement and the current application
of the rules prevents prioritisation of qualitative values and implementation of
innovative and transformative solutions.

The public sectors play a key role, not just through planning and exercise of authority,
but also through procurement. Investments in town planning currently amount to
approximately SEK 300 billion per year, where the State, county councils and
municipalities account for half of the investments. Procurement
in the planning and administration stage is added to this.

The procurement of municipalities and other public actors is regulated through the
Public Procurement Act. The purpose of the Act is to strengthen competition within
the EU. The Act guarantees transparency and provides tenderers who feel
discriminated against the right to appeal. The Act has been criticised for generating
extra work and obstructing procurement of qualified services and solutions.
Requirements for efficiency and risk of appeal result in sustainability requirements
being toned down and the development of a procurement structure where the lowest
price almost always wins.
The demand for local system solutions which cannot be made in the same
procurement are considered as a competition barrier.

Here the Delegation would particularly like to highlight that the Public Procurement
Act – and a too cautious application of the Act – prevents the development of
transformative solutions.
The interim report of the procurement investigation emphasised that public
procurement can contribute to innovative technology leaps and new solutions
through procurement of transformative solutions. It is solutions which provide the
same or better service as conventional technology but at an energy or resource
utilisation level which is at least 80% lower.
The concept “smart cities” is based on, for example, ideas on how IT technology can
contribute to transformative solutions by linking information and energy systems.
Transformative and innovative solutions require long term cooperation between an
experienced and long term risk-enduring purchaser and in many cases collaboration
between several different commercial actors. Negotiation procurements should be
applied to a greater extent, but are hindered by a fear of the procurement being
appealed and projects thereby being delayed.

Against the backdrop of the procurement’s large scope and social impact, it is
strategically important that public purchasers have the ability and incentives to drive
creative solutions which require close collaboration between purchasers and
suppliers. How risk is divided between suppliers and different parts of the purchaser
system needs to be cleared.
It is essential that procurement rules permit exchange of information between parties
by, for example, competitive dialogue and negotiated procurement and that public
purchasers are given tools for developing sustainability requirements which are not
classified as restricting competition.