Towards a green economy Key messages

1. Urban development will have to fundamentally change to facilitate the transition towards a green economy. Urban areas are now home to 50 per cent of the world’s population but they account for 60-80 per cent of energy consumption and a roughly equal share of carbon emissions. Rapid urbanisation is exerting pressure on fresh water supplies, sewage, the living environment and public health, which affect the urban poor most. In many cases, urbanisation is characterised by urban sprawl and peripheralisation – which is not only socially divisive, but also increases energy demand, carbon emissions and puts pressure on ecosystems.

2. Unique opportunities exist for cities to lead the greening of the global economy. There are genuine opportunities for national and city leaders to reduce carbon emissions and pollution, enhance ecosystems and minimise environmental risks. Compact, relatively densely populated cities, with mixed-use urban form, are more resource-efficient than any other settlement pattern with similar levels of economic output. Integrated design strategies, innovative technologies and policies are available to improve urban transport, the construction of buildings and the development of urban energy, water and waste systems in such a way that they reduce resource and energy consumption and avoid lock-in effects.

3. Green cities combine greater productivity and innovation capacity with lower costs and reduced environmental impact. Relatively high densities are a central feature of green cities, bringing efficiency gains and technological innovation through the proximity of economic activities, while reducing resource and energy consumption. Urban infrastructure including streets, railways, water and sewage systems comes at considerably lower cost per unit as urban density rises. The problem of density-related congestion and associated economic costs can be addressed and offset by developing efficient public transport systems and road charges.

4. In most countries, cities will be important sites for the emerging green economy. This is for three main reasons. First, the proximity, density and variety intrinsic to cities deliver productivity benefits for companies and help stimulate innovation. Second, green industries are dominated by service activity – such as public transport, energy provision, installation and repair – which tends to be concentrated in urban areas where consumer markets are largest. Third, some cities will also develop high-tech green manufacturing clusters in or close to urban cores, drawing on knowledge and skill spillovers from universities and research labs.

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