79325 v1 Sustainable Cities and Innovation At a glance Cities are critical in addressing local and global environmental ++  rbanization is the primary development challenge of the 21st U degradation that affect human well-being and poverty reduction. century. Today’s urban population of about 3.5 billion people Cities and their residents account for about two-thirds of global is projected to reach 5 billion by 2030. Ninety percent of this energy use and over 70 percent of GHG emissions. The economic growth is in developing countries. activities, consumption, and waste production by city residents have significant impacts on land use and agriculture, water ++  ities are the engines of economic growth, job creation, and C resources, air quality, and biodiversity. poverty reduction. The best cities improve living conditions through good governance, investments in infrastructure, and The need for action in cities is immediate, and delay is costly. Urban by building solid policy frameworks that encourage the private infrastructure and buildings are long-lived and generally “locked sector to thrive. Public-private partnerships can encourage in� for decades or more. Action is particularly urgent in the rapidly investment into sustainable cities. growing cities of developing countries, where most infrastructure will be built in the next few decades. Reversing course later is ++ S  ustainable cities are the most cost-effective, environmentally possible, but would be very costly. sound, and efficient way to provide basic services, opportunities, and a high quality of life for all. Although The future we want cities contribute to greenhouse gas (GHG) emissions and concentrate risk from the effects of climate change, Sustainable cities are urban communities that are committed to urbanization can create denser, more energy-efficient cities improving the well-being of current and future residents; they that are climate resilient. integrate economic, environmental, and social considerations. The inter-linkages among the three pillars of sustainable development The challenge are evident in cities, which function as integrated systems. Innovative solutions in the urban space would span multiple Cities are now home to more than half of the world’s population. This sectors, including buildings, energy, urban transport, water, and proportion will rise in the coming decades, with most growth taking solid waste. place in developing countries. Every year in developing countries, millions of people migrate to cities in search of jobs and better access With most of world’s gross domestic product generated in cities, to services. This growth will increase the demand for urban services, our economic future hinges on their productivity. Cities are engines infrastructure, and affordable housing. These needs must be met in of growth and innovation; they contribute to poverty reduction, order to address informal settlements and urban poverty. improved living conditions, cultural development, and knowledge generation. Building sustainable cities maximizes the economic Many cities are vulnerable to extreme weather events and other benefits from increased population concentration, while reducing natural hazards. An estimated 360 million urban residents live in negative impacts such as congestion, resource degradation, coastal areas, facing the risks related to storm surges and rising sea pollution, and the risks associated with natural disasters. levels. Cities in developing countries are often vulnerable due to the existence of informal settlements, lack of infrastructure, and limited Sustainable cities embrace innovation and cost recovery, and institutional capacity. The urban poor are most vulnerable as they use the best available information for decision making. Cities tend to occupy locations that are more exposed to hazards, and they would be smarter by using technology to manage resources and have limited adaptive capacity. by educating and informing citizens so they are better able to World Bank Group | Brief April 2012 participate and share the results of policy changes. These changes Cities need access to information and common diagnostic would promote more intelligent, inclusive, and participatory tools: governance in cities. ++  ata collection to provide a composite picture of city D Sustainable cities also address poverty reduction and social performance development by reducing slums, and improving the provision of basic services, and providing a safe living environment free of crime ++ D  iagnostics based on evidence and including adequate and other threats. Adequate and equitable access to services and consideration of risks opportunities would be provided for the urban poor, residents of informal settlements, and other vulnerable groups such as women, ++ B  enchmarking and relevant indicators, so that cities can assess children, the elderly and disabled, and minorities. where they are in terms of service delivery, productivity, and quality of life How do we get there? ++ A  ssessing alternatives to sustainability at the sector level—for Urbanization and density are key to growth and prosperity. example, buildings, energy efficiency Density, urban transport, and buildings are three important ways through which cities impact the local and global environment. ++  Costing the alternatives and acquiring the necessary financing Urban form has a profound impact on GHG emissions and the sustainability of cities; denser cities emit fewer GHGs per capita. ++ E  ngaging citizens in the definition of local sustainability goals Integrated transport and land-use development can deliver in planning processes and garnering public support economic, environmental, and social benefits. These include improved mobility, reduced energy use, better air quality, lower ++ E  stablishing and strengthening institutions to guide, share, GHG emissions, and improved access to jobs, housing and urban and monitor progress. services. Urbanization is an opportunity to include efficient designs and materials in new buildings and for urban planning that The World Bank Group is responding at many levels. To drive encourages higher-density living with less sprawl. sustainability, we promote urbanization that is efficient, equitable, and inclusive. Our urban strategy promotes knowledge products, Institutions, leadership, and an effective legal framework are standardized tools, and methodologies to help policy makers and necessary for sustainable cities. Institutions create the incentive city leaders make better decisions. We are increasing our focus framework that dictates individual and collective behavior in the on multisectoral approaches to development, with new business urban environment. The first step in the design of sustainability lines (such as cities and climate change) in response to emerging policies is to review the institutional capacity, identify obstacles, and challenges. We also work with the private sector through the build the strategy around these limitations. International Finance Corporation to encourage and promote innovative financing instruments to strengthen local-level capacity. Participation and inclusiveness are critical for sustainable cities. Understanding how the poor live in urban areas and References and suggested readings engaging them in the decisions that affect their development path will help build sustainable, inclusive cities. Cross-sectoral Hoornweg, D., M. Freire, J. Baker-Gallegos. Forthcoming. Toward a Partnership for Sustainable Cities. World Bank. cooperation is key for integrated economic development in cities. Sustainable urban policies will depend on the contribution of Hoornweg, Dan, L. Sugar, M. Freire, C. Anderson, P. Bhada-Tata, C. L. Trejos, R. Dave, M. Lee. 2011. Cities both public and private stakeholders and the incentives to guide and Climate Change: An Urgent Agenda. World Bank Urban Development Series Knowledge Papers, Vol. 10: 92. individual private action, including funding, new and innovative technologies, and sharing of information. OECD. 2011. Towards Green Growth. Suzuki, H., A. Dastur, S. Moffatt, N. Yabuki, H. Maruyama. 2010. Eco2 Cities: Ecological Cities as Economic Integrated technologies adapted to the way cities work Cities. World Bank. would help dense cities to perform efficiently. Smart, connected cities would take advantage of technology and World Bank Urban and Local Government Strategy. 2010. Systems of Cities: Harnessing Urbanization for Growth and Poverty Alleviation. World Bank. information flow to monitor and measure resource flows, predict future behavior, and simulate changes in demand in response UNEP. 2009. 2009 Annual Report: Seizing the Green Opportunity. to policy actions. Smart transport systems can be used to tackle UNEP. 2002. Melbourne Principles for Sustainable Cities. United Nations Environment Program, congestion and supply real-time information on traffic problems. Integrative Management Series, Vol. 1: 16. Innovations at the city level require appropriate national policies and an enabling environment that allows cities to experiment and be creative. Often, successful urban policies depend on enabling national policies. Some innovations will require significant investments, generating a need for new and innovative financial tools, including from national government resources. World Bank Group | Brief April 2012