Category: Environment

• Weekend link roundup — Ukraine and gas supply to Warren Buffet and Canadian housing supply

  I spent much of this morning reading about and listening to discussions about what’s happening in Ukraine and so, instead of a typical post this morning, I’m just going to share a mélange of links.

  • Monocle 24 Foreign Desk episode talking about Russia’s invasion of Ukraine. Speakers are Ukrainian MP Lesia Vasylenko, former NATO chief Richard Shirreff, Russian journalist Ekaterina Kotrikadze, and Russia expert Mark Galeotti. I found this helpful in better understanding some of the dynamics at play here and what might happen going forward — though, of course, who knows. All of this is both deeply sad and frustrating. [Link]
  • Discussion in Bloomberg Green about the feasibility of the EU shutting off Russian gas right now, as opposed to through a protracted transition. Currently, the EU satisfies about 20% of its total energy needs through gas and about 40% of it comes from Russia. [Link] Also, a chart showing Russian natural gas exports, by destination. [Link]
  • Warren Buffet published his widely read annual letter to Berkshire Hathaway shareholders this weekend. He likes to deliver news like this on a Saturday so that people have time to digest it before the markets reopen on Monday. The overall message was one that we have heard before: BH has a lot of cash (~$144 billion to be exact) and they’re not finding very many compelling opportunities in which to deploy it. [Link]
  • To add to the above, here is a longish Q&A session with Buffet’s partner, Charlie Munger. He continues to be worried about excess money in the system and high inflation. [Link]
  • Construction has been recently completed on a Mies van der Rohe design from 1952 that had been forgotten and buried in some archives. Originally commissioned to be a fraternity house at Indiana University, the building is now the Eskenazi School of Art, Architecture + Design. This is a supremely cool story, particularly for an architecture school. [Link]
  • Yet another simple example by Bobby Fijan on how highly restrictive zoning codes and design guidelines don’t always produce the end results that we might want. Different times and different contexts in this example. But it’s interesting to think about how best to promote design excellence in our cites. Is more creative market freedom the answer? [Link]
  • My friend Randy Gladman, who is senior vice-president of development advisory at Colliers here in Toronto, published an opinion piece in the Financial Post last week about the hidden costs of inclusionary zoning. It is consistent with the ad nauseam discussions that we have been having on this blog for the past few years, but it of course remains an important read. [Link]
  • Steve Pomeroy of Focus Consulting makes an argument in the Globe and Mail that elevated home prices in Canada isn’t primarily the result of a supply deficit. Using recent census data that allegedly shows that housing supply in Vancouver actually kept pace with demand (over how long of a period?), Pomeroy instead points to the other typical culprits: strong demand, low interest rates, unused homes owned by non-residents, and so on. This one likely deserves a dedicated post at some point. [Link]

  Ironically, the post turned out to be wordier than my usual ones.

  2022.02.26

• The Russian gas network

  

  

  Reuters recently published an extraordinary set of diagrams (here in this article) that help to explain the energy dynamics at play right now across Europe. Above are two examples. Among other things, the graphics show the various gas pipelines in use (or planned), which countries they flow through, their vintages, and ultimately who depends on who. It’s worth a read or, at the very least, a scroll through.

  2022.02.16

• Coldest place in Canada

  

  I have never been to the Canadian Arctic, but it’s something that is on my list and that I plan to do. And because of some random dinner conversation over the weekend, I have just added Eureka, Nunavut to my weather app so that I can keep tabs on what is the coldest place in Canada.

  The average annual temperature is close to -20 degrees celsius, but as you can see from the above screenshot, it’s a bit colder than that right now. I have it placed next to Rio de Janeiro in my app for dramatic effect.

  First established in 1947, Eureka is a research community / weather station at 80°N with apparently no permanent population. Staff rotate through it with more people coming in the summer months. There is no sunlight between October and February.

  It is the third northernmost settlement in the world after Alert (which is also in Nunavut on Ellesmere Island) and Nord in Greenland. But again, Eureka is on average the coldest.

  The weather station was established in partnership with the United States. Prior to this, we had very little data from the north. But there was a general understanding that having it would be valuable for improving forecasting across the continent.

  So on April 7, 1947, six people showed up on the shorelines of Eureka, built some temporary structures (apparently they were done in time for dinner), and started reporting weather data. Now that data is available on my phone whenever I want it.

  2022.02.06

• Toward more multi-family housing

  This recent article by Brookings is a good reminder of the all too important link between land use policies/patterns and GHG emissions. Because electric vehicles are cool and all, but they’re still not as efficient as just walking around and/or taking transit.

  As has been argued before on this blog, we need to not only electrify our transport network, but we also need to change how we get around. And probably the best way to encourage a modal shift, is to plan and build our cities differently. Something that is simple, but not easy.

  It also turns out that people who live in multi-family buildings tend to consume less energy (on a per capita basis) than those in single-family houses. So there are numerous benefits to encouraging denser housing on top of transit and within mixed-used communities.

  With all of this in mind, here are some interesting charts from the above Brookings article.

  

  This first one shows new housing permits in the metro areas of Atlanta, Chicago, and Washington DC, according to their urban, suburban, or exurban status. Here, Chicago is an outlier, with the “urban core” (defined as Cook County) now making up about half of all new housing.

  If you look at the entire study period, the number is less. The urban core accounted for about one-third of new housing permits in Chicago, and only 15% of permits in Atlanta and DC. But in all cases, housing permits in the urban core have been increasing since the 2008 financial crisis.

  

  

  But here’s the other thing. Looking at these next two charts, there appears to be a clear trendline toward more urban housing typologies. The first of these next two is showing single-family housing permits as a percentage of all new housing. And the second is structure type over time.

  Atlanta is still building mostly single-family housing, but less of it. And based on these charts, Chicago has already passed its inflection point. DC is not far off. Every city region is of course going to be different, but it does look like there is some kind of broader housing shift underway.

  2022.01.07

• New York City releases climate resilience plan

  New York City is projecting that Lower Manhattan is likely to see more frequent flooding by as early as the 2040s. This could move to monthly flooding by the 2050s and daily by the 2080s. These time horizons may seem like a ways away, but I’m personally going to try my damnedest to see the 2080s.

  In light of these projections, New York City released a new Financial District and Seaport Climate Resilience Master Plan at the end of last year. The plan is projected to cost somewhere between $5 to $7 billion and entails building out a new multilevel waterfront that extends the current shoreline into the East River by up to 200 feet.

  Here are a couple of renderings:

  

  

  

  The upper level will be elevated by about 15-18 feet (designed to protect against storms like Sandy) and the lowest level will be a continuous waterfront esplanade (designed to connect humans to the water). Overall, the plan encompasses about one mile of waterfront, running from The Battery to the Brooklyn Bridge.

  City building take times. In the case of this plan, it is building for the next century.

  For a copy of the full press release, click here.

  Images: NYC Economic Development Corporation

  2022.01.05

• Crypto energy consumption

  One of the main criticisms of cryptocurrencies is that they consume a lot of energy and are therefore not sustainable. But all blockchains are not created equal and there are different ways in which transactions on a blockchain can be validated.

  Bitcoin and Ethereum use something known as “proof of work” (though Ethereum plans to change this sometime next year). This method of validation does indeed use quite a bit of energy.

  But another way to validate and maintain security on a network is through something known as “proof of stake.” This is what Solana and many other blockchains are now using. Put differently, there’s no “mining” required, which is the work that is so energy intensive.

  To demonstrate the difference, the Solana Foundation recently published this comparison chart:

  

  To try and further put this into context, the entire Solana network is currently doing about 20 million transactions per year. Right now, they are claiming that this is equivalent to the electricity usage of about 986 American households.

  If you’d like to take a look at the footnotes, click here.

  2021.11.29

• Rise of renewables in the US

  

  Here are some fascinating figures (from Environment America) about the growth of renewables in the United States:

  • Between 2011 and 2020, renewable energy production (solar, wind, and geothermal) grew at an average rate of 15% per year. Assuming this same rate of growth, the US could be on target to meet all of its electricity needs with renewables by 2035.
  • The US produces 23x more solar power and 3x more wind power than it did in 2011.
  • The median efficiency for new residential solar panels increased by 37% from 2010 to 2019. At the same time, the cost of distributed solar photovoltaic systems fell by 71% and the cost of utility-scale systems fell by about 80% between 2010 and 2018.
  • During this same time period (2010-2018), the cost of land-based wind power fell by 66%.
  • The median range of new electric vehicles increased by more than 3x between 2011 and 2020. The median range is now more than 250 miles on a single charge. By the middle of this year, cumulative plug-in EV sales surpassed 2 million units.
  • Texas is the US state that currently produces the most renewable energy.

  To download the full report by Environment America, click here.

  Photo by Nuno Marques on Unsplash

  2021.11.15

• [Film] CROSSROADS: Life in the Resilient City

  Five cities. Five stories.

  Here is a short film by Nils Clauss and Neil Dowling, which recently premiered at the Seoul Biennale of Architecture and Urbanism. (If you can’t see the embedded video above, click here.) The film is named after this year’s Seoul Biennale (which is going on right now until the end of October) and focuses on five crossroads of city life that were put forward by French architect Dominique Perrault: above/below, heritage/modern, craft/digital, natural/artificial, and safe/risk.

  To illustrate these urban crossroads, the filmmakers visit New York, Seoul, Mumbai, Paris, and Nairobi. But instead of interviewing so-called “experts”, these crossroads are examined from the perspective of people just living through them. The documentary is very well done. And having just come back from Paris, I can say that I think they chose the right city to tackle the heritage/modern crossroad.

  To close things out, I would like to share one screenshot from the film. Here you can see an ingenious little urban table that slips over a street bollard. It’s just perfect. There is so much that can be done to better activate our streets and public spaces.

  

  2021.10.11

• Built form and climate impact

  

  Building height and density are not one and the same. You can have tall buildings configured in a low-density way (think post-war towers in the park). And you can have low/mid-rise buildings configured in a high-density way (think Paris and Barcelona). This is one of the reasons why it is important to decouple density and tallness when thinking about our cities.

  This line of thinking is the approach that a recent study took when trying to determine the optimal built form for minimizing climate impact. In the study they define four building typologies: 1) high density, high-rise, 2) low density, high-rise, 3) high density, low-rise, and 4) low density, low-rise.

  What they found was that taller environments tend to have higher life cycle GHG emissions, but that lower-density environments are (obviously) far more land consumptive. To determine life cycle GHG emissions they looked at both embodied and operating emissions, which is why the taller stuff didn’t score as well under their methodology. There’s typically a lot of concrete and steel in tall buildings.

  This lead the team to conclude that if you want to optimize around climate impact, you should probably aim for that perfect middle ground: dense, but not super tall.

  But as Joe Cortright (City Observatory) rightly pointed out in his email newsletter, one of the big limitations of this analysis is that it does not consider transportation-related impacts. And since we know that transportation is one of if not the largest source of GHG emissions and that how we get around is heavily dependent on land use patterns, it is probably an important piece to consider.

  Photo by Alfons Taekema on Unsplash

  2021.08.20

• A new agricultural frontier in Canada and Russia

  

  Last year over the holidays, I attended a virtual wine tasting event that was put on by one of our partners. It was with a vineyard / winemaker in Spain and so it was evening for us and some ungodly hour for him.

  At the end of the tasting — which was exceptional, by the way — I asked him what he thought about the Niagara region. Some of you may know that I love to support local Ontario wines. His response was hilarious and something along the lines of: “When we think of Niagara wines, we think of a part of the world that shouldn’t produce wine but somehow does.”

  Ouch.

  This was maybe the case before. But I think the region, vines, and industry have all matured. We also have some exceptional winemakers, some of which have come from the Old World because our startup-y wine region affords them far more creative freedom.

  But you might also argue that things are changing because our climate is changing. The Financial Times recently published an interesting “big read” about how agricultural production and crop types are shifting around the world in the face of climate temperatures.

  It turns out that wine grapes are a pretty good leading indicator. A canary in the coal mine if you will. Because climate matters a great deal if you’re trying to make exceptional wines. And if you’ve been harvesting a particular thing at a certain time for the last 5 decades and you’re now doing it several weeks earlier, it might be a sign that something is changing.

  It also turns out that two countries, in particular, stand to disproportionately benefit from this shifting agricultural landscape: Canada and Russia. As temperatures change, a new agricultural frontier is going to be created. And it is expected that more than 50% of this land will be in these two countries. See image at the top of this post.

  Of course, there’s a flipside to this change. Countries on the other end of the spectrum with marginal growing climates and/or low production yields, could be severely impacted by higher temperatures. So perhaps it is a good idea to stay on top of what’s happening in the world of wine. Might I recommend something from Niagara?

  Image: FT

  2021.07.25