Cities around the world, large and small, face common challenges, especially due to rapid urbanization and climate change. According to United Nations (UN) estimates, four billion people – more than half of the world’s population – live in urban areas today. By 2050, over two-thirds of the global population will be urban, challenging cities to meet accelerating demand for affordable housing, well-connected transport systems and other infrastructure and services, as well as jobs.
In addition, rising global temperatures increase the risks of rising water levels, landslides, droughts, hurricanes, and other disasters. Without urgent action, these climate impacts could push an additional 100 million people into poverty by 2030, according to the World Bank.
The good news is that, armed with knowledge and creativity, urban centers are finding ways to tackle new and old problems alike, with fewer losses and greater recovery capacity – in other words, creating “resilience”.
The Catalyzing Sustainable Urban Futures global conference held recently in São Paulo, Brazil, which was co-hosted by the São Paulo City Hall, the Sustainable Cities Program, and the World Bank’s Global Platform for Sustainable Cities (GPSC), with the support of the Global Environment Facility (GEF), looked closely at this topic of “resilience”.
Representatives from four continents examined three global issues, with sustainability and resilience as an ever-present backdrop. The first was climate change, a concern that mayors can no longer afford to sidestep. According to the World Bank, cities consume about 2/3 of the world’s energy and account for over 70% of global greenhouse gas emissions.
The second issue was the need for more green spaces – think about public parks with trees, birds, bees, and other species. Today, around one million animal and plant species are threatened with extinction, eroding the foundation of our shared livelihood, society’s ability for adaptation, and nature’s capacity to store carbon. Green spaces do not only help cities mitigate and adapt to climate change, but also serve as important places for human-wildlife coexistence – and a home for conserving urban biodiversity.
Third, there was a constant discussion about solid waste management. Without it, rivers will overflow and the air will be polluted by harmful substances, among other problems. With it, millions of people, including those in the recycling industry, will be presented with new opportunities.
Mitigating and adapting to climate change
Today, 90% of urban expansion takes place in developing countries, and much of it occurs near natural hazards, rivers, and coastal regions, in the form of informal and unplanned settlements. A lack of infrastructure and proper land use plans exacerbates the risks facing residents, especially in view of climate change. Thus, several cities are now devising their own mitigation and adaptation plans. São Paulo, for example, is set to launch its plan in June 2020.
Another Brazilian city, Recife, already has a plan in place, in preparation for the city’s 500th anniversary celebration in 2037. One-third of the local population lives in hill areas susceptible to disasters; another third of the population resides at sea level, which means that flooding is a threat.
“With the participation of civil society and the general population, we have compiled a strategic plan based on a set of urban and environmental plans containing a series of initiatives to mitigate [disaster risks], increase resilience, and adapt to the consequences of the climate crisis,” stated Mayor Geraldo Júlio at the conference.
Plans in developed countries are even more ambitious. Paris, France, has pledged to become a carbon-neutral city by 2050, enacting 500 measures in various industries, such as construction, transport, energy, and food. These measures include goals such as using only green energy (biomass, wind, and solar), banning diesel cars by 2024, and eliminating all cars running on petrol fuels by 2030.
Less asphalt, more forests and parks
“With fewer cars on the street, we will not need as many parking lots or as much asphalt,” said the Deputy Mayor of Paris, Pénélope Komitès. “We can, for example, use garage buildings to plant urban forests that help regulate the temperature.”
Just like Paris, the expansion of green spaces is becoming a trend, from China to Paraguay. These spaces capture carbon and improve air quality, among other benefits. Such changes are most welcome in Chinese cities like Ningbo, which has over 40 square kilometers of protected areas despite its population of 8 million people.
In Latin America, the city of Asunción, Paraguay, is planning to build a green urban corridor – at least 35,000 hectares in size – to take better care of its biodiversity, especially birds. The project is in the preliminary phase.
Parks also help reduce heat, a much-needed improvement in a city like Caruaru in the Brazilian state of Pernambuco, where a linear park (i.e., longer than it is wide) will be built with a bike path connecting 14 neighborhoods, with the potential to benefit 140,000 people.
Together, these measures create opportunities for cities to deliver growth that is green, low carbon and competitive – and to build societies that are resilient, inclusive, and livable.
Waste remains rather unsustainable
According to the World Bank report What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050, in 30 years the global rate of waste production will be double the growth rate of the population. “Cities and countries are developing rapidly, but without suitable systems to cope with changes in the waste disposed of by citizens,” the study highlights.
Against this trend, São Paulo is gradually enacting initiatives and setting goals to alleviate the problem. For example, this year the local government joined the New Plastics Economy Global Commitment to ensure that 100 percent of plastic packaging can be recycled or reused by 2025.
In addition, there is an initiative in place in São Paulo to increase composting yards. Currently, there are five composting yards that receive waste from public markets with a capacity of up to 10 tons / day. By the end of 2020, the local government has promised a total of 17 composting yards to treat 100 percent of the waste from the more than 800 open markets held each week in the state capital.
Composting yards, waste disposal eco-points (available in São Paulo and Caruaru), or simply improved urban sanitation systems (as in the more precarious neighborhoods of Abidjan, Côte d’Ivoire) are among the various solutions that can be adopted by cities around the world to boost sustainability and resilience. Granted, these ideas are not always easy to implement and can be rather expensive. However, according to the What a Waste 2.0 report, the cost of inertia tends to be much higher for both the environment and the poor.
Bridge for Cities 2020: Mayors discuss urban development during COVID-19 crisis
The Bridge for Cities 2020 event provided a forum for mayors and other urban stakeholders to discuss and exchange views on relevant experiences, challenges and opportunities related to the COVID-19 pandemic. The event placed particular emphasis on green, social and technological innovations which can assist cities to recover from the crisis and act as an accelerator for the Sustainable Development Goals.
Organized jointly by the United Nations Industrial Development Organization (UNIDO) and the Finance Center for South-South Cooperation (FCSSC), in close collaboration with the City of Vienna, the event attracted more than 500 attendees.
In his opening statement, UNIDO’s Director General, LI Yong, stressed that “the pandemic has forced us to think outside-the-box and identify innovative solutions. It is important for us all to work collaboratively towards an inclusive and climate-resilient recovery. Bridge for Cities aims to facilitate long-lasting city-to-city partnerships in the course of the COVID-19 crisis and beyond.”.
CAI E-Sheng, Chairman of the FCSSC, added that “in the post-pandemic era, urban development should be resilient. Resilient cities should have both the ability to deal with the crisis, and the ability to recover from the crisis.”
Discussing how digitalization can help to promote behavioral shifts in designing and imagining cities in the context of the COVID-19 crisis, Professor Carlo Ratti, Director of the MIT Senseable City Lab, highlighted that “to respond to the pandemic, cities must act fast, try new innovations, and obtain citizens feedback, as this constant feedback loop will allow the transformation of cities for the future.”
The first Mayors’ Roundtable brought together representatives from Almaty, Antananarivo, Dortmund, Manama, Shenzhen, Vienna, Zamboanga and Zhengzhou to present their cities’ response in ensuring an inclusive recovery from the crisis. The discussion focused on solutions to protect peoples’ jobs, especially those of vulnerable groups, and to support measures for MSMEs that will assist urban development in the long term.
The second Mayors’ Roundtable moved the spotlight onto the topic of a green economic recovery. Mayors and representatives from Amman, Budapest, Colombo, Damietta, Manizales, Sarajevo, Sihanoukville and Tunis offered diverse perspectives on the issue, including opportunities to decouple industrial production and urban infrastructure growth from environmental degradation by making the necessary investments now.
The event was enriched by a series of workshops and exhibition booths organized by partner cities, international organizations and innovative start-ups, showcasing ground-breaking solutions for the future of smart cities’ development.
Rebuilding Cities to Generate 117 Million Jobs and $3 Trillion in Business Opportunity
COVID-19 recovery packages that include infrastructure development will influence the relationship between cities, humans and nature for the next 30 to 50 years. With the built environment home to half the world’s population and making up 40% of global GDP, cities are an engine of global growth and crucial to the economic recovery.
Research shows that nature-positive solutions can help cities rebuild in a healthier and more resilient way while creating opportunities for social and economic development. The World Economic Forum’s new Future of Nature and Business Report found that following a nature-positive pathway in the urban environment can create $3 trillion in business opportunity and 117 million jobs.
“Business as usual is no longer sustainable,” said Akanksha Khatri, Head of the Nature Action Agenda at the World Economic Forum. “Biodiversity loss and the broader challenges arising from rapid urban population growth, financing gaps and climate change are signalling that how we build back can be better. The good news is, there are many examples of nature-based solutions that can benefit people and planet.”
Cities are responsible for 75% of global GHG emissions and are a leading cause of land, water and air pollution, which affect human health. Many cities are also poorly planned, lowering national GDP by as much as 5% due to negative impacts such as time loss, wasted fuel and air pollution. However, practical solutions exist that can make living spaces better for economic, human and planetary health.
The study, in collaboration with AlphaBeta, highlighted examples of projects deploying nature-positive solutions and the business opportunities they create.
Cape Town: Cape Town was just 90 days away from turning off its water taps. Natural infrastructure solutions (i.e. restoring the city’s watersheds) were found to generate annual water gains of 50 billion litres a year, equivalent to 18% of the city’s supply needs at 10% of the cost of alternative supply options, including desalination, groundwater exploration and water reuse
Singapore: Singapore’s water leakage rate of 5% is significantly lower than that of many other major cities thanks to sensors installed in potable water supply lines. Globally, reducing municipal water leakage could save $115 billion by 2030. Returns on investment in water efficiency can be above 20%.
Suzhou: Suzhou Industrial Park’s green development in China has seen its GDP increase 260-fold, partially through green development. The park accommodates 25,000 companies, of which 92 are Fortune 500 companies, and is home to 800,000 people. The park has 122 green-development policies, including stipulations on optimizing and intensifying land use, improvement of water and ecological protection, and the construction of green buildings. As a result, 94% of industrial water is reused, 100% of new construction is green, energy is dominantly renewable and green spaces cover 45% of the city.
San Francisco: San Francisco requires new buildings to have green roofs. The “green” roof market is expected to be worth $9 billion in 2020 and could grow at around 12% annually through 2030, creating an incremental annual opportunity of $15 billion.
Philippines: The loss of coastal habitats, particularly biodiverse and carbon-rich mangrove forests, has significantly increased the risk from floods and hurricanes for 300 million people living within coastal flood zones. A pilot project in the Philippines, one of the countries most vulnerable to climate change, is monetizing the value of mangroves through the creation of the Restoration Insurance Service Company (RISCO). RISCO selects sites where mangroves provide high flood reduction benefits and models that value. Insurance companies will pay an annual fee for these services, while organizations seeking to meet voluntary or regulatory climate mitigation targets will pay for blue carbon credits. Overall, restoring and protecting mangrove forests in human settlements can reduce annual flood damage to global coastal assets by over $82 billion while significantly contributing to fighting climate change.
The report identifies five complementary transitions to create nature-positive built environments and outlines the business opportunities and potential cost savings for programmes targeting urban utilities for water, electricity and waste, land planning and management, sustainable transport infrastructure and the design of buildings.
Office space the size of Switzerland
Global examples call out areas to be improved. For example, an estimated 40 billion square metres of floor space is not used at full occupancy during office hours – an area roughly equivalent to the size of Switzerland. The COVID-19 upheaval has prompted a surge in flexible and remote working models in many countries – greater application of such models could help reduce the need for private office space in the future.
Governments’ role to raise and steer finance
The report calls for both government officials and businesses to play their part in raising and steering finance for sustainable urban infrastructure. “Regulations in areas including urban master planning, zoning and mandatory building codes will be critical to unlocking the potential of net-zero, nature-positive cities and infrastructure,” said Khatri. “We are at a critical juncture for the future of humanity. Now is the time to treat the ecological emergency as just that. A net-zero, nature-positive path is the only option for our economic and planetary survival and how we choose to use COVID-19 recovery packages might be one of our last chances to get this right.”
City Climate Finance Gap Fund Launches to Support Climate-smart Urban Development
Today, the City Climate Finance Gap Fund (“The Gap Fund”) was launched jointly by ministers and directors of the Governments of Germany and Luxembourg together with the World Bank, European Investment Bank, and Global Covenant of Mayors. It paves the way for low-carbon, resilient, and livable cities in developing and emerging economies by unlocking infrastructure investment at scale.
The Gap Fund will support city and local governments facing barriers to financing for climate-smart projects. Filling a gap in available project support, the Gap Fund offers technical and advisory services to assist local leaders in prioritizing and preparing climate-smart investments and programs at an early stage, with the goal of accelerating preparation, enhancing quality, and ensuring they are bankable.
With a target capitalization of at least €100 million, the Gap Fund will accelerate investments supporting cities in developing and emerging economies, as they determine goals and objectives for low-carbon and well-planned urbanization. The Gap Fund investment is aiming to unlock at least €4 billion of final investment in climate-smart projects and urban climate innovation.
“What cities do today will forever shape our climate tomorrow,” said Mari Pangestu, World Bank Managing Director for Development Policy and Partnerships. “Cities in developing countries urgently need resources to realize their climate ambitions. Through the Gap Fund, the World Bank is supporting low-carbon, resilient, inclusive, healthy, creative, and sustainable communities for all.”
Cities are on the frontlines of the climate emergency and currently account for around 70 percent of global CO2 emissions. Urban centers’ share of emissions is expected to grow as 2.5 billion people migrate from rural to urban areas by 2050. Before the COVID-19 pandemic struck, it was estimated that more than $93 trillion in sustainable infrastructure investment was needed by 2030 to meet climate goals. As cities strive to recover from the economic impacts of COVID-19, investments in clean energy, climate-resilient water and sanitation, and urban regeneration projects will play an important role in eliminating pollution, improving local food systems, and creating green jobs. They will also lead to cleaner, healthier, and more equitable communities – conditions that can help prevent future pandemics.
Climate investment projects are an indispensable opportunity to improve lives of the millions who live in cities around the world. However, cities frequently lack the capacity, finance, and support needed for the early stages of project preparation – especially in developing and emerging economies. This leads to impasses where cities cannot move project ideas to late-stage preparation and implementation. This hurdle is frequently overlooked by national and international support – a challenge the Gap Fund will seek to overcome.
The Gap Fund is an initiative of the governments of Germany and Luxembourg together with the Global Covenant of Mayors for Climate and Energy (GCOM), in partnership with several other key players in the climate finance arena (including C40, ICLEI – Local Governments for Sustainability, and Cities Climate Finance Leadership Alliance). It will be implemented by the World Bank and the European Investment Bank. The Gap Fund was announced at the UN Climate Action Summit 2019 as a key initiative of LUCI, the Leadership for Urban Climate Investment, which promotes financing for ambitious urban climate action until 2025. Core donors to the Gap Fund are Germany (€45 million – including €25 million from the Ministry for the Environment, Nature Conservation and Nuclear Safety, and €20 million from the Ministry for Economic Cooperation and Development) and Luxembourg (€10 million).
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