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Urban Development

Pandemic and the lessons for global metro cities

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Across the world, cities are on the frontline of the unfolding COVID-19 crisis. Starting from metro cities with overwhelmed heath care systems, they are experiencing unprecedented strain across social, economic and environmental systems as economies grind to a standstill. Public transit systems are in a financial tailspin. Already a challenge at the best of times, the struggle to provide even basic access to water and sewerage is now especially acute in many growing cities across the global south. Daily wage earners and the urban poor of all stripes are suffering the most from the dual blows of lost income and a scarcity of city services and social safety nets that can protect them at a time of need.

Changes occurring in cities

Even before the current pandemic we knew cities needed to change significantly to meet the global goals outlined in the Paris Agreement, Sustainable Development Goals, or New Urban Agenda. The IPCC’s report on what it will take to limit global warming to 1.5 degrees Celsius argued that all cities need to be net zero carbon emitters by 2050. To reach these goals will require major alterations to how we build, manage and live in cities – not just change, but transformational change. Such change may seem beyond reach, but from energy to housing to mobility, sustainable, cost-effective, more inclusive solutions are at hand. We simply need to have a vision bold enough to change people’s understanding of what’s possible in cities and the courage to make it happen at scale. One of the unintended consequences of this crisis has been that we have seen, quite dramatically, that radical change to our everyday lives and systems is indeed possible. Amidst the fear and uncertainty, people are also seeing fragments of what a future city could look like. For example, people across the world are breathing better air than they have in decades due to a dramatic decline in vehicle traffic and factory output. In Jalandhar, an industrial northern city in India, people woke to see snow-capped Himalayan ranges 200 miles away, a sight not seen in generations. People are unwittingly enjoying “car-free street days” on a daily basis, finding that walking and biking are also viable and even preferred. Emergency workers are finding that cycling is simply the fastest and safest way to get around. Cities like Bogotá, Berlin and Mexico City have expanded pedestrianization efforts to encourage these activities. Learning a lesson from this national and city leaders should use this opportunity to focus on four key areas where transformational change is possible:

Planning and development of city system

The most immediate need is to work with partners to generate the data required at the city and neighborhood scales to better monitor and respond to changing conditions on the ground. Cities cannot fix what they do not understand, and this crisis has made clear just how little many municipal governments understand about what is happening in their cities, or the potential impact of different policy options. Creative partnerships with communities, NGOs, the private sector and universities are necessary to fill the gaps. Hong Kong and Singapore set up public health monitoring and response systems during the SARS outbreak, for example, that prepared them well to handle COVID-19 now.We are seeing that social, economic and environmental resilience are all closely linked as three interconnected systems with significant dependencies on each other.  Cities function as systems, and this pandemic has created a major opportunity to build back better, more inclusively and with greater resilience to future shocks. We should focus on giving cities the technical support and data to create integrated social, economic and infrastructure strategies at the local level. And at the national level, we need to improve governance to allow more seamless national-local coordination for emergency response and recovery. What happens in cities, does not stay in cities. But cities cannot do it on their own. They often need help from regional and federal authorities, including fiscal transfers and national sectoral policies, to realize significant change.

Required safety net of all types

This pandemic shows the fragility of many of the jobs that underpin urban economies, in cities of all types. In the United States, more than 26 million new jobless claims have been filed so far. In India, more than half a million migrant workers have left cities since the announcement of a nationwide lockdown. Informal workers, from day laborers to Uber drivers, have no employment contracts, insurance or income at times like this, and now face the impossible choice of exposure to the coronavirus or hunger. These jobs in the informal sector, the gig economy and numerous low-wage formal sector jobs are crucial to urban economies. But workers in these sectors lack the fiscal and social safety nets necessary to ride out a crisis. Cities need to shore up urban economies with stronger social and fiscal safety nets for informal and low-wage workers, including targeted income support and increased access to social and economic services. This pandemic is exposing existing fault lines with respect to poor physical infrastructure and inequalities in access to core urban services. It’s also raised questions about healthy density in cities. The most successful cities are able to achieve livable density – a balance where benefits of agglomeration are significantly higher than the cost of congestion. This crisis should make cities rethink how they can achieve livable density. In fact, density is a precondition for effective urban service provision. It’s the lack of access to essential services such as water, housing and health care, that has exacerbated the challenge of responding effectively to COVID-19. Large proportions of people don’t have decent housing to self-isolate, basic water and sanitation to wash hands, access to health care or transport options to get help, or jobs they can do at home. These challenges, which they cope with every day, are now exacerbated.

We need to bring laser sharp focus on investing in infrastructure and housing for better health, wellbeing and resilience for the urban poor. This involves identifying and investing in high-risk locations, including poor and under-resourced communities. It means improving infrastructure in informal settlements across the developing world to bridge the urban services divide. And it means building infrastructure that is intentionally geared towards a low-carbon future. If we want to maximize the chances for success, however, and have enough doses to end the coronavirus disease 2019 (COVID-19) pandemic, current piecemeal efforts won’t be enough. If ever there was a case for a coordinated global vaccine development effort using a “big science” approach, it is now. An initiative of this scale won’t be easy. Extraordinary sharing of information and resources will be critical, including data on the virus, the various vaccine candidates, vaccine adjuvants, cell lines, and manufacturing advances. Allowing different efforts to follow their own leads during the early stages will take advantage of healthy competition that is vital to the scientific endeavor. All of this will require substantial funding, which is the big ask of big science. Late-stage clinical trials are not cheap, nor is vaccine manufacturing. Ideally, this effort would be led by a team with a scientific advisory mechanism of the highest quality that could operate under the auspices of the World Health Organization (WHO). In many ways, COVID-19 is perfectly suited to a big science approach, as it requires multilateral collaboration on an unprecedented scale. In the race to develop a COVID-19 vaccine, everyone must win.

Urban Development

Bridge for Cities 2020: Mayors discuss urban development during COVID-19 crisis

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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.

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Urban Development

Rebuilding Cities to Generate 117 Million Jobs and $3 Trillion in Business Opportunity

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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.”

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Urban Development

City Climate Finance Gap Fund Launches to Support Climate-smart Urban Development

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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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