Urban Transformation

Asia's megacities at a crossroads – and other urban transformation stories to read this month

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Dhaka, one of the world's 10 largest cities.

Without urgent and inclusive reforms, unchecked urban growth could deepen inequality, according to a new report. Image: Unsplash/Hasnan Monir

Jeff Merritt
Head of Centre for Urban Transformation; Member of the Executive Committee, World Economic Forum
Vivian Brady-Phillips
Head, Strategic Initiatives, Urban Transformation, World Economic Forum
  • This monthly round-up brings you some of the latest news on cities and urbanization.
  • Top city and urbanization stories: How Asia's megacities can build resilience; San Francisco innovators awarded; Why EVs don't always reduce CO2 emissions.
  • For more on the World Economic Forum’s city-focused work, visit the Centre for Urban Transformation.

1. Equity and resilience the way forward for Asia's megacities

Asia's urban powerhouses have long been the engine of growth in the region, but now risk hindering economic progress, warns a new report from the UN’s Economic and Social Commission for Asia and the Pacific (ESCAP).

Seven of the world’s 10 largest cities are in Asia, including Tokyo, Delhi, Shanghai, and Dhaka. Without urgent and inclusive reforms, unchecked urban growth could deepen inequality, overwhelm public services, and fuel social and environmental tensions, according to Urban Transformation in Asia and the Pacific: From Growth to Resilience.

Record heatwaves in 2024 pushed South and Southeast Asian cities to their limits, with the “urban heat island effect” making conditions especially dangerous for the elderly and low-income residents in informal settlements. Nearly half of all global heat-related deaths between 2000 and 2019 occurred in Asia and the Pacific, and shrinking green spaces are compounding the risks.

Demographic shifts are also reshaping cities: by 2050, the region’s older population is expected to nearly double to 1.3 billion. As birth rates fall and rural migration slows, some cities are even starting to shrink, putting pressure on planners to adapt infrastructure and services for ageing, often isolated, residents.

Ten largest cities in the world, 2024.
The majority of the world's biggest cities are in Asia. Image: ESCAP

Meanwhile, soaring housing costs and stagnant wages are pushing millions into expanding slums that are highly vulnerable to climate shocks.

ESCAP calls for integrated planning, better data, innovative financing, and stronger regional cooperation to help cities turn these mounting risks into opportunities for sustainable growth.

2. San Francisco innovators honoured

Twelve start-ups helping to transform San Francisco into a more sustainable city have been named winners of the World Economic Forum's UpLink 2024 Yes San Francisco, Urban Sustainability Challenge.

The challenge called for impactful solutions that are viable, scalable and advance sustainability in San Francisco, such as innovations using AI and solutions for infrastructure, urban green and blue spaces, renewable energy and water and waste management.

Among the winners are Airbuild, which makes wall-mounted panels to filter water, absorb CO2 and generate clean energy, and ChargeWheel, which has battery-equipped EV chargers to balance the load on local grids by storing energy when grid demand is high and selling it back to the grid as needed.

Now in its second year, Yes San Francisco has emerged as a powerful new model for climate-aligned economic revitalization. Developed with Citi, Deloitte, Salesforce and the San Francisco Chamber of Commerce, the initiative has grown into a coalition of more than 50 organizations.

Through Yes San Francisco, the Forum has supported two cohorts of Top Innovators, many of whom have begun piloting solutions in mobility, electrification, circular economy and adaptive infrastructure. The second cohort was announced for San Francisco Climate Week.

Discover

What is the World Economic Forum doing to promote sustainable urban development?

3. News in brief: More top city stories

Higher rates of electric vehicle (EV) use have been linked to increased CO2 emissions in several countries, according to a study conducted by researchers at the University of Auckland and Xiamen University in China. The study, published in the journal Energy, looked at data from 26 countries over a 15-year period. In many regions, EVs are still powered by electricity generated from fossil fuels. EVs begin to deliver significant reductions in CO2 emissions when the share of renewable energy in the grid approaches 48%.

It comes as China announced plans to launch pilot projects in nine cities that would use the country's growing fleet of EVs as batteries to shore up power supply on the grid during spikes in demand.

Cities in low and middle-income countries face worsening urban heat island effects due to rapid, unplanned growth, declining green spaces, and inadequate infrastructure, according to a new study.

Work is underway on Italy's high-speed railway, set to revitalize the country's underdeveloped southern region. The 145km line, due for completion by 2028, will connect the cities of Naples to Bari in just two hours - cutting the journey time by half.

Also in Italy, state railway company Ferrovie dello Stato (FS) announced plans to launch a high-speed service connecting London and Paris by 2029, in a challenge to Eurostar's monopoly of train services through the Channel Tunnel.

4. More on urban transformation from the Forum

The Forum's new report Nature Positive: Cities’ Efforts to Advance the Transition – San Francisco explores how urban centres can lead the shift towards ecological resilience by embedding nature-based solutions into city planning. It identifies key barriers - including fragmented governance and limited financing - and outlines actionable pathways forward, such as public-private partnerships, community engagement and standardized biodiversity data systems.

Urban nature restoration is transforming cities into more resilient, equitable and economically vibrant places – shifting from a trend to a strategic imperative. Forward-looking companies like Salesforce, Mastercard and Metlife are investing in urban greening to align sustainability goals with local impact, equity and climate resilience.

Around 80% of the buildings today will exist in 2050, raising concerns about safety, energy inefficiencies and costly maintenance. Enhancing buildings’ resilience requires owners and operators to have greater visibility of their assets. Case studies are emerging of the power of retrofitting to improve performance and sustainability by leveraging advanced construction and tech-based solutions.

The Forum's Shaping Tomorrow: Responsible Innovation for a Brighter Future report introduces an eight-principle framework that provides guidance for innovators on developing products, services and business models that are a net positive for society. Drawing on insights from leaders and real-world case studies, the report offers actionable strategies for embedding responsibility into every stage of innovation.

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Contents
1. Equity and resilience the way forward for Asia's megacities2. San Francisco innovators honoured3. News in brief: More top city stories4. More on urban transformation from the Forum

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