Climate change and development Cities and climate

Growing urbanisation means that new housing and new infrastructure needs to be built. The goals of the Paris climate agreement cannot be achieved if the cities of the future are built mainly from cement, steel and glass, as was the case in the past. Construction therefore needs to become more efficient, climate-friendly and resource-saving. By modernising existing buildings and ensuring that new ones meet sustainability standards, by 2050 the energy consumption of buildings could be reduced by half. Nature-based solutions offer a sustainable alternative or additional option to technological approaches.

In the next 15 years, an estimated 93 trillion US dollars will need to be invested worldwide in climate-friendly and sustainable infrastructure – more than 4.5 times the gross domestic product of the US.

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Residential house in Tirana, Albania

Accordingly, a major share of German financial cooperation is already being directed towards urban infrastructure or towards supporting the urban population in our partner countries. As part of these efforts, innovative financing instruments are increasingly being used to mobilise private capital.

In order to continue supporting cities in coping with this massive need for investment, Germany contributes to the global Cities Climate Finance Leadership Alliance (CCFLA). The Alliance brings private and public-sector players together who share the goal of capitalising more climate finance for cities. This is done partly via the City Climate Finance Gap Fund, which is to be used to mobilise up to four billion euros for climate-friendly infrastructure in cities. Furthermore, in collaboration with the cities network C40 (External link), the BMZ has been supporting cities’ efforts to prepare sustainable infrastructure projects via the Cities Finance Facility (CFF) for some time now.

The transport sector is the cause of more than a quarter of all greenhouse gas emissions. By 2050, the number of vehicles on the roads could have tripled to three billion. The consequences will be traffic jams, air pollution and higher emissions. Cities must therefore reduce motorised transport, promote public transport systems, cycling and walking, and make urban transport systems climate neutral, safe, accessible and affordable using innovative ideas and technologies.

With these goals in mind, German development cooperation activities are being used to support sustainable and innovative mobility in developing countries and emerging economies. The central implementation partnership for this is the Transformative Urban Mobility Initiative (External link) (TUMI), which was jointly launched in 2016 by the BMZ and ten partner organisations. TUMI combines investments in knowledge and infrastructure with the identification and promotion of innovative approaches in cities.

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Tram in Rio

The German government is supporting the expansion of modern and efficient transport systems like underground trains, trams and rapid transit buses, and the construction of footpaths and cycle routes. These measures are intended to make affordable, inclusive and environmentally-friendly forms of transport accessible to more people.

The switch to sustainable, climate-friendly mobility around the world calls for international cooperation and strong alliances. The transition to climate-friendly transport worldwide is being accelerated through the efforts of the Action towards Climate friendly Transport Initiative (External link) (ACT).

This alliance of more than 100 members – national and local governments, municipal associations, multilateral organisations, non-governmental organisations and businesses – is thus helping with the achievement of the Sustainable Development Goals and the Paris Agreement. German support within the framework of this alliance is being used, for example, to help prepare the procurement of 100,000 electric buses in developing and emerging countries.

By 2050, two-thirds of the global population will live in cities – and will consume 75 per cent of the natural resources and generate 50 per cent of global waste arisings. Yet it would be possible to reduce global greenhouse gas emissions by up to 20 per cent if systems were in place for avoiding waste and for a circular economy. Cities are therefore key players in all efforts towards a resource-conserving, low-carbon, circular economy.

German development cooperation is therefore focusing ever more on introducing closed-loop systems in consumption, production and trade. For example, the “Go Circular” project promoted by the BMZ fosters the transition to a circular economy, both at global level and in partner countries: Ghana, Colombia and Viet Nam. The project helps to roll out innovative business models and technologies that contribute to avoiding disposable plastic products and packaging.

To promote international exchange and cooperation on the circular economy, the BMZ has launched the PREVENT Waste Alliance (External link). PREVENT brings together private-sector companies, research institutes, non-governmental organisations and state institutions. Members engage in joint efforts to build functioning circular economies worldwide, exchange knowledge and develop innovative solutions.

For instance, a PREVENT pilot project is in progress in Indonesia to boost the proportion of waste that is collected and recycled and ensure that waste collectors receive fair payment for their work. In Nepal, the alliance is helping to prevent electronic scrap by promoting the repair, refurbishment and reuse of end-of-life electrical and electronic equipment.

Cross-sectoral cooperation on issues relating to a circular economy, for instance in urban and transport planning or in the energy sector, is a further priority of the BMZ’s activities.

Furthermore, the BMZ is supporting the efforts of partner countries and cities to provide their citizens with better waste management services, creating the groundwork for a circular economy that will help protect the environment and save resources. Local, regional and national institutions are being encouraged to adjust the necessary planning processes, legislative frameworks, and systems for fees and funding. Private companies as well as informal waste collectors are being involved here.