Report Points to Unlocking $24 Trillion in Making Zero-Carbon Cities Investment

September 19, 2019 – We are a week away from the latest United Nations’ effort to harness national governments to combat climate change. Prior to it the Coalition for Urban Transitions, a group of 50 leading institutions, has issued a report that shows how national government investments in low-carbon cities can enhance economic prosperity, make cities better places to live, and rapidly reduce carbon emissions.

It estimates the implementation of low-carbon policies would be worth nearly $24 trillion USD by 2050 and would reduce greenhouse gas (GHG) emissions from cities by 90%.

The Climate Emergency, Urban Opportunity examines the role of national governments in achieving equitable and sustainable economic development in cities, which today are home to over 50% of the world’s population, producing 75% of GHGs and 80% of world gross domestic product (GDP).

Stated António Guterres, Secretary-General of the United Nations, “This report shows how the right investments can build sustainable and liveable cities and communities that will help us achieve the Sustainable Development Goals and the objectives of the Paris Agreement. It is possible and realistic to realize net-zero urban emissions by 2050. But to get there, we will need the full engagement of city governments combined with national action and support.”

Net-zero GHG emissions by mid-century is key to avoiding the worst consequences of prolonged centuries of climate change. Low-carbon measures enacted by cities could reduce emissions globally by 50% in 2050, and with technologies and practices currently available to us, we could cut urban emissions by 90%.

To do this the nations of the world need to invest $1.8 trillion USD annually, equivalent to 2% of global GDP. This in turn would generate annual returns on investment worth $2.8 trillion USD by 2030, and $7.0 trillion USD by 2050 from cost savings alone. Many low-carbon measures would pay for themselves in under 5 years, things light more efficient lighting, widespread adoption of electric vehicles (EVs), improved transportation logistics, and changes to solid waste management. And zero-carbon cities will provide national governments with distinct competitive advantages in attracting new investment and the best in global talent. In addition, zero-carbon cities will yield higher standards of living, cleaner air, less traffic congestion, and with better working conditions support 87 million jobs annually by 2030. Net-zero cities will be more compact, and connected, will help conserve land for agriculture and forests, and will protect biodiversity.

Stated Eric Garcetti, Mayor of Los Angeles and C40 Cities Vice-Chair, “Mayors recognize the critical role that national governments can play to reverse the climate crisis, and are ready to partner with our federal leaders to advance our work to protect our most vulnerable residents, strengthen global health, and create a low-carbon, green economy that works for everyone.” Los Angeles as a member of C40 is committed along with nearly 10,000 other cities and local governments to set GHG reduction targets but they need the help of national, state, and provincial governments working together to achieve the targets stated above.

The report presents six key priorities for national government actions to take includng:

1. Develop an overarching strategy to deliver shared prosperity while reaching net-zero emissions – and place cities at its heart, which can guide all government ministries to incorporate urban development into their approach, de-risk low-carbon investment by providing clear signals to private actors, and empower local governments to go farther and faster.
2. Align national policies behind compact, connected, clean cities. Examples include removing land use and building regulations that limit higher, liveable density; banning the sale of fossil fuel-powered vehicles; and adopting green alternatives to steel and cement.
3. Fund and finance sustainable urban infrastructure. Examples include eliminating subsidies for fossil fuels and establishing a carbon price of $50–100 USD per ton to sharpen investment incentives; reforming land and property taxes; and shifting national transport budgets from road-building to public and active transport.
4. Coordinate and support local climate action in cities. Examples include authorizing local governments to introduce climate policies and plans that are more ambitious than national policies; and allocating at least a third of national R&D budgets to support cities’ climate priorities.
5. Build a multilateral system that fosters inclusive, zero-carbon cities. Examples include placing cities at the heart of enhanced Nationally Determined Contributions (the amounts in carbon reductions that countries have pledged since the Paris Climate Agreement) in 2020, and 2025, and ensuring that all international development assistance is aligned with national urban strategies compatible with the Paris Agreement and the 2030 Agenda for Sustainable Development.
6. Proactively planning for a just urban transition. Examples include using revenues from carbon taxes or fossil fuel subsidy reforms to compensate those who bear the costs of climate action; supporting community-led upgrading of informal settlements to reduce poverty and enhance climate resilience; and anticipating, protecting and supporting the workforce of the future, including by developing transition plans for fossil fuel-based workers and industries.

To read the key report findings click here. And for a full list of the report’s recommendation click here.