How cities are turning urban complexity into coherent climate plans

In the words of UN Secretary-General António Guterres: “Cities are where the climate battle will largely be won or lost.” Cities are home to the majority of the world’s population, and they are the engines of the global economy. On the other hand, they account for 70% of global energy-related greenhouse gas emissions and bear the brunt of climate impacts and extreme weather events.

These range from flooding in Moldova that devastated the capital, Chișinău, to mass migration to Ulaanbaatar in Mongolia following a dzud, in which temperatures drop below -30°C.

When we talk about cities, we are of course talking about diverse and disparate settlements. Cairo is very different from Vilnius; Istanbul from Chișinău. But while their context is unique, common challenges and opportunities emerge for cities aiming to both cut emissions and improve resilience.

How can cities devise projects that will tackle multiple issues and attract investment? Cities are complex, with many stakeholders – from citizens and businesses, to different levels of government – who all need to be brought on board. So collaboration is vital.

Equally important, as the World Economic Forum’s research has identified, is adopting a systems approach. To shape deliverable, bankable projects, cities need to develop a clear vision of what they want to achieve and a pipeline of prioritized projects that leverage the interconnections and interdependencies within city infrastructure.

Once identified, these projects need to be prepared for investment. If a city is targeting investment from a multilateral development bank (MDB), this requires a feasibility study and concept design. Does the new fleet of electric buses or the wastewater treatment plant make sense? What should the technical specifications be?

To ensure a project is bankable, financiers must be involved from the outset. Infrastructure requires sizable investments, and it takes time to build trust. If MDBs are to invest, they will need to ensure that, right from the feasibility stage, a project meets their requirements. The European Bank for Reconstruction and Development (EBRD)’s Green Cities programme fosters this kind of collaborative, long-term relationship with over 50 cities.

The Green Cities programme identifies, prioritizes and connects cities’ environmental challenges with sustainable infrastructure investments and policy measures. Its evidence-based Green City Action Plan (GCAP) methodology provides a toolkit for cities to identify actions and a framework to bring stakeholders – ranging from citizens to government officials – into the process.

Cities develop GCAPs with expert support. The EBRD and Arup have worked together to deliver GCAPs for 10 cities, including Vilnius, Tirana, Ankara, Warsaw and most recently Agadir. Here, a 15-year vision is underpinned by seven strategic goals focused on resource efficiency, social equity, climate resilience and digital innovation. The plan includes 31 actions across key sectors, supported by a monitoring and evaluation framework to track implementation and impact.

Taking ownership of their GCAPs, cities can use their budget for the projects, approach commercial lenders, or partner with an MDB like the EBRD. If the city chooses the EBRD, the bank will shape its approach around the needs of the municipality, the utility company (if they are the borrower), and the local regulatory regime. Its range of funding instruments enables it to de-risk projects and, as such, lower borrowing costs.

This approach enables the bank to invest as effectively in megacities such as Istanbul, Türkiye, as it does in smaller cities such as Chișinău, the capital of Moldova. In Istanbul, because of the city’s scale, the GCAP focuses on expanding the metro into areas including the financial district – reducing emissions, improving air quality and creating a strong economic impact.

In Chișinău, the GCAP led to the EBRD investing in an energy-efficiency programme for public buildings, upgrades to both the energy distribution and heating networks, and modern solid waste facilities. It also encompasses resilience, with improved stormwater drainage and flood defences along the Bîc River, providing more green space for citizens with an enhanced riverside walkway.

Like so many other challenges the world faces, effective climate action requires a clear vision, joined-up thinking and teamwork across organizations – from both the public and private sectors. Cities that adopt this approach can shape a socially, environmentally and economically sustainable future for their people.