Overview
Cities are engines of economic growth and social change.
About 85% of global GDP in 2015 was generated in cities. By
2050, two-thirds of the global population will live in urban
areas. Compact, connected and efficient cities can generate
stronger growth and job creation, alleviate poverty and reduce
investment costs, as well as improve quality of life through
lower air pollution and traffic congestion. Better, more resilient
models of urban development are particularly critical for
rapidly urbanizing cities in the developing world.
International city networks, such as the C40 Cities Climate
Leadership Group, Local Governments for Sustainability (ICLEI)
and United Cities and Local Governments (UCLG), are scaling
up the sharing of best practices and developing initiatives to
facilitate new flows of finance, enabling more ambitious action on
climate change. Altogether, low-carbon urban actions available
today could generate a stream of savings in the period to 2050
with a current value of US$16.6 trillion.
Recommendation
The Global Commission on the Economy and Climate
recommends that cities commit to developing and
implementing low-carbon urban development strategies by
2020, using where possible the framework of the Compact
of Mayors, prioritising policies and investments in public, nonmotorised and low-emission transport, building efficiency,
renewable energy and efficient waste management.
Donor agencies, city networks and organisations, multilateral
and regional development banks and others should develop
an integrated package of at least US$1 billion for technical
assistance, capacity-building and finance to support commitments
by the world’s largest 500 cities. The package could directly
mobilise at least US$5–10 billion in private investment through
project preparation support, and leverage significant further
large-scale capital for a low-carbon urban transition. The package
should build on existing leadership and efforts by cities using
their own resources, and prioritise filling critical resource gaps in
smaller cities and cities in developing countries.