Net Zero Carbon Cities

Dynamic Briefing
Generated 20 September 2022 for Jens Helstrup
Net Zero Carbon Cities
About

This dynamic briefing draws on the collective intelligence of the Forum network to explore the key trends,
interconnections and interdependencies between industry, regional and global issues. In the briefing, you
will find a visual representation of this topic (Transformation Map – interactive version available online via
intelligence.weforum.org ), an overview and the key trends affecting it, along with summaries and links to
the latest research and analysis on each of the trends. Briefings for countries also include the relevant
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projects communities and activities.

Net Zero Carbon Cities Briefing, September 2022

Executive summary
Cities form the frontline in the battle against climate change - representing both the biggest related
challenges, and the best opportunities to keep global warming well below 2°C. More than half of the
global population lives in cities, where people consume 78% of the world’s primary energy, generate
more than 70% of all carbon emissions, and are disproportionately vulnerable to climate impacts. By
2050, more than two-thirds of the global population is expected to be living in cities, with over 90% in
urban locales in Africa and Asia. The mission of the World Economic Forum’s Net Zero Carbon Cities
programme is to enable clean electrification in these places, and a circularity that contributes to
decarbonization and greater resilience.

1. Ultra-Efficient Buildings
The Net Zero Carbon Cities initiative aims to work with
everyone from building managers to real estate developers on
decarbonization.

2. Compact Cities
COVID-19 has pointed to a future where more urban
residents may appreciate compact, mixed-use
neighbourhoods.

3. Clean Electrification
It can sharply reduce emissions, but requires a significant
amount of renewable energy generation.

4. Urban Resilience
The Net Zero Carbon Cities initiative is collaborating with
partners to bolster infrastructure and align priorities.

5. Urban Emissions
Cities produce the bulk of emissions, and the Net Zero
Carbon Cities initiative aims to shift the perceived value in
addressing this.

6. Smart Energy Infrastructure

The Net Zero Carbon Cities initiative aims to enable buildings
to better integrate into overall energy systems.

Net Zero Carbon Cities Briefing, September 2022

Ultra-Efficient Buildings

The Net Zero Carbon Cities initiative aims to work with everyone from building
managers to real estate developers on decarbonization

Buildings contribute a significant portion of global annual CO2

emissions - 28% of emissions are accounted for by building
operations, and 11% by related materials and construction
(“embodied carbon”). Buildings also account for almost 55% of
all electricity consumption. With total building floor area set to
more than double by 2070, or the equivalent of adding space
the size of New York City each month, improvements in building
efficiency (and net-zero buildings) are key to achieving Paris
Agreement targets. Embodied carbon is particularly important to
abate; most emissions come from the manufacturing of cement
and steel, while aluminium, glass, and insulation are secondary
contributors. Demand for materials is influenced both by the
rate of construction as well as building framing, or the way in
which buildings are made. Design for the use of alternative
materials where appropriate can significantly reduce embodied
carbon; for example, the Gare Maritime, a former freight-train
station in Brussels, was transformed into a mixed-use
commercial centre using responsibly-sourced wood - avoiding
some 3,500 tonnes of embodied carbon in the process.

The World Economic Forum’s Net Zero Carbon Cities initiative

aims to expand the perception of urban decarbonization
investment to include greater consideration of social and
environmental outcomes. Abating direct emissions from the
combustion of fossil fuels for water, space heating, and cooling
in buildings can be achieved through clean electrification and
switching to “clean district” heating. More compact designs are
being developed, but there is still room for improvement and
further innovation to scale up to significant use in the residential
market. Clean district heat is best deployed in very densely
populated cities, which can make the best use of waste heat -
particularly in places where current infrastructure can be
retrofitted to run on electricity rather than fossil fuels. The
decarbonization of heat creates a significant challenge for
maintaining electricity supply, as demand is expected to surge
as more electrified heating systems are installed. Cities around
the world are setting targets for building decarbonization; New
York City has a requirement for buildings larger than 25,000
square feet to cut their greenhouse gas emissions by 40% (from
2005 levels) by 2030.

Related insight areas: Advanced Materials, Fourth Industrial

Revolution, Innovation, Water, Infrastructure, Manufacturing,
Energy, Electricity, Economic Progress

Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

World Economic Forum

China’s Climate Challenge: Financing
the Transition to Net Zero
21 July 2022

China holds a critical and outsized role in helping the global

community achieve the targets of the Paris Agreement and
preserving the planet’s biosphere. At the same time, China’s
available financing mechanisms and its financial system
remain somewhat distinct. A nuanced understanding of
prioritized net-zero technologies and potential pathways to
financing these technologies in Greater China is therefore
critical to ensure the country can achieve its net-zero
ambitions.

Net Zero Carbon Cities Briefing, September 2022

Compact Cities

COVID-19 has pointed to a future where more urban residents may appreciate
compact, mixed-use neighbourhoods

The “compact city” concept of making the places where urban

residents live, work, and relax relatively dense has been a
prominent principle of sustainable urban development since the
1990s. It has been touted as a means to make transportation
more sustainable, to make more efficient use of resources, to
boost personal health, to elevate cultural life, and to bring
people together. Mixing residential, leisure, and commercial
spaces reduces commute times and dependence on cars,
maximizes the benefits of urban design, and provides
opportunities for foster a greater sense of community by
keeping people closer to their homes and workplaces. Cities
with relatively dispersed, segregated population centres, many
of which were planned around cars (as is particularly the case
with many American cities) can be problematic for people living
relatively far from employment opportunities - and from places
where they can buy nutritious food. This can limit prospects for
people who are forced to spend large portions of their day and
their incomes on commuting. As compact cities solve these
issues, they also reduce reliance fossil fuels - making cities both
more liveable and sustainable.

According to the Organisation for Economic Co-operation and

Development, there is no single model for a compact city
applicable everywhere; each urban area must take local
circumstances into account. The OECD has said most national
governments have aspects of compact city policies in place,
though related urban planning must proceed carefully. It can be
challenging for cities to reconfigure themselves into denser,
mixed-use neighbourhoods - though COVID-19 has pointed to
a future where residents potentially working more from home
may see added benefit in a compactness that enables them to
more readily access services locally without having to obtain
them during a commute. In fact, greater access to local
services in proximity to one’s home, and to green space, have
been found to have significant positive impacts on well-being
during the pandemic - a period when many people have
struggled with stress and mental health issues. As the worst of
the pandemic has receded in many places, several large cities
have pursued compact city models in some fashion, for
example by adding bicycle paths for easier (and healthier) short
trips.

Related insight areas: Pandemic Preparedness and Response,

Innovation, Workforce and Employment, Future of
Consumption, Agile Governance, Retail, Consumer Goods and
Lifestyle, Cities and Urbanization, Health and Healthcare,
Diversity and Inclusion, Infrastructure, Mobility, COVID-19

Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

EOS
Despite Improvements, China’s Air
Remains Unsafe
23 June 2022

Toxic particulate matter has decreased by about a third over

the past decade, but levels are still above what’s considered
healthy. Fine particulate matter (PM2.5) and ozone exposure
are major public health problems in China. Although useful,
atmospheric models used to analyze these and other air
quality concerns over the years are expensive to run, limiting
how often researchers can use them.

Net Zero Carbon Cities Briefing, September 2022

Clean Electrification

It can sharply reduce emissions, but requires a significant amount of renewable energy
generation

The clean electrification of heating, cooling, transportation, and

light industry is a key means to both sharply reduce fossil-fuel
emissions and improve air quality in urban areas. The
International Energy Agency has projected that “final energy
consumption,” or all of the energy supplied to buyers for all
purposes, will rise at a rate of 1% annually between 2020 and
2050 - with electricity and natural gas accounting for most of
the increase. Clean electrification can unlock greater systemic
efficiency in cities, as transportation and building operations
move away from fossil fuels to electricity and integrate more
renewables. In effect, buildings and transportation systems can
serve as tools for greater electrification, by providing ancillary
services to the grid - both drawing and providing energy as
needed to regulate frequency and demand, and enabling the
use of variable renewables that generate intermittently.
Meanwhile the electrification of light industry through “Power to
Heat” (PtH) is essential for the decarbonization of industry; one
study suggested that electric steam generation alone has the
potential to eliminate 13% of industrial CO2 emissions in
Germany.

A systemic approach is necessary to facilitate clean

electrification, however. The electrification of transportation,
buildings or industry is not actually beneficial unless it involves a
significant amount of renewable electricity generation - and is
done in a way that facilities a path to 100% renewable
generation. “System Value,” a concept developed by the World
Economic Forum in collaboration with Accenture as part of the
Electricity Industry Action Group in 2020, posits that end-use
electrification is best made part of an integrated energy system.
To facilitate clean electrification, a market must feature a focus
on energy efficiency, a high proportion of renewable energy
generation, and a strong electricity grid that can provide
renewables that meet demand. The transformational elements
of smart flexibility, power-market reform, and demand
optimization can pave the way to full end-use electrification, and
a system ready to support such high levels of electricity usage.
While technology exists for the electrification of most end-use
applications, challenges remain in terms of grid capacity,
economic and policy incentives for electrification, and consumer
behaviour. These will all need to be addressed.

Related insight areas: Electricity, Green New Deals, Energy,

Manufacturing, Agile Governance, Sustainable Development,
Mobility, Climate Change

Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

Inside Climate News

Inside Clean Energy: E-bike Sales and
Sharing are Booming. But Can They
Help Take Cars off the Road?
23 June 2022

E-bikes, already taking off during the pandemic, are getting a

big boost from states that hope they will reduce driving,
energy consumption and emissions.

Net Zero Carbon Cities Briefing, September 2022

Urban Resilience

The Net Zero Carbon Cities initiative is collaborating with partners to bolster
infrastructure and align priorities

Climate change can disproportionately impact cities with hotter

temperatures, extreme weather events, and rising sea levels -
making adaptation necessary alongside decarbonization efforts.
Major urban areas such as New York City, Mumbai, Lagos,
Shanghai, Miami, Dhaka, and Tokyo are at risk of major
flooding even if global warming is kept well below 2°C (by 2020
the average global temperature was about 1.2°C above pre-
industrial levels). It is expected that by the end of this century
sea levels could be 1.1 metres higher, putting low-lying and
coastal cities under water; 190 million people are at risk of
flooding-related displacement. In addition, in the next 30 years
more than 1.6 billion people in nearly 1,000 cities will regularly
face extreme heatwaves. Long periods of extreme temperatures
will make it difficult to go outside, work outside, or be in a
building without air conditioning - creating a risk of increased
energy consumption in cities where air conditioning has
previously not been needed. The World Economic Forum’s Net
Zero Carbon Cities initiative has collaborated with the Resilient
Cities Network to help address these challenges.

The network has focused on a number of key areas including

making climate risk assessments more widely available, making
health systems more resilient, and aligning critical infrastructure
to mitigate risk. One element of urban infrastructure that can aid
climate adaptation is green space - cities without much of it
tend to be warmer than surrounding areas due to the urban
heat island effect. Extreme weather events only compound the
impacts of heat and rising sea levels on cities, by causing flash
floods. In response, coalitions of cities such as the C40 Cities,
the Resilient Cities Network, and the Global Covenant of
Mayors for Climate & Energy are working on initiatives to boost
resilience while addressing concerns about inequality. Cities
can adapt to extreme heat by providing more shade and access
to cool buildings (in addition to green space), and developing
heat action plans and early-warning systems. Adaptation
measures for rising sea levels include building or re-enforcing
flood defence mechanisms, environmental solutions like
mangrove restoration, and re-planning urban areas to move
people out of the lowest-lying places.

Related insight areas: Air Pollution, BiodiverCities, Innovation,

Biodiversity, Infrastructure, Water, Energy, Risk and Resilience,
Climate Change

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Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

Mott MacDonald
Including nature-based solutions in
city-planning will help address the
climate and ecological emergency
facing the world
22 June 2022

An interactive nature based solutions map The recently

published BiodiverCities by 2030 insight report calls for cities
to reintegrate nature into their spatial planning decisions and
restore the ‘natural layer’ to development. A newly released
interactive nature based solutions map enables planners,
project engineers, owners and designers to plot how best to
replenish nature in their cities, building their resilience to
climate impacts and helping citizens reconnect with the
natural world. The many co-benefits include improved air and
water quality, temperature regulation, habitat compensation
and carbon sequestration, while access to green space and
nature is good for physical and mental wellbeing.

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Net Zero Carbon Cities Briefing, September 2022

Urban Emissions

Cities produce the bulk of emissions, and the Net Zero Carbon Cities initiative aims to
shift the perceived value in addressing this

Cities tend to be complex environments made up of both

multiple drivers of significant energy consumption and
emissions, and myriad stakeholders able to play a role in
reducing those emissions. A city’s emissions level will vary
depending on local land use, density, energy consumption, and
socioeconomic factors - but in general, the primary drivers of
urban emissions are combustion-related activities like energy
production, manufacturing, and transportation. The construction
and operation of buildings alone generate 38% of global
greenhouse gas emissions, for example, and the World
Economic Forum’s Net Zero Carbon Cities initiative seeks to
address this through the Building Value Framework - to change
the way the value of decarbonization investments are perceived
and defined. Urban emissions vary by region, with higher levels
in Asian countries that have relatively dense populations, in
emerging economies like India and China, and in parts of the
Middle East and North Africa. Cities in Europe and North
America generate a lower proportion of regional emissions, due
in part to locating high-emissions activities like power generation
outside of city limits.

Carbon dioxide is not the only type of urban emission. Fine

particulate matter (PM2.5) and Nitrogen Dioxide (NO2) are other
significant air pollutants generated by vehicles, wood burning,
manufacturing, and farming, which negatively impact the health
of city dwellers. Globally, pollutants have increased during the
past half-century not least due to increased emissions levels in
developing countries. However, some pollutants have actually
decreased in developed economies - as a result of energy-
efficiency improvements, new technologies, and abatement
measures. Still, substantial levels of airborne pollutants affect
half of all urban residents. Vehicles are the primary culprit
behind of these pollutants; a Harvard Center for Risk Analysis
report published in 2010 found that traffic congestion-related
PM2.5, nitrogen oxides, and Sulfur Dioxide emissions in 83
American cities had caused roughly 4,000 deaths. Vehicle
congestion has increased by as much as 35% globally since
that report was published. Mobility restrictions implemented in
response to COVID-19 in 2020 resulted in marked
improvements in urban air quality, as people generally drove
less - New York saw as much as 25% less PM2.5, while
Mumbai saw a 60% decline.

Related insight areas: Financial and Monetary Systems, Air

Pollution, Sustainable Development, Future of the Environment,
Infrastructure, Development Finance, Automotive Industry,
Mobility, Climate Change, Cities and Urbanization

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Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

Raconteur
The new consumer dilemma – lean or
green?
22 June 2022

Macro trends in today’s world have the power to pull and

push where people spend their money. As a result, consumer
attitudes are constantly evolving. Over the last few years, for
example, we’ve watched sustainability become a priority, with
eco products, services and experiences taking centre stage.
More recently, the rising cost of living has had a profound
effect on how shoppers navigate their budgets.

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Net Zero Carbon Cities Briefing, September 2022

Smart Energy Infrastructure

The Net Zero Carbon Cities initiative aims to enable buildings to better integrate into
overall energy systems

Future electricity grids must be able to manage higher loads,

while also accommodating a higher proportion of variable
generation from wind and solar sources. Smart energy
infrastructure includes a wide range of technologies, from
building management systems and smart meters to distributed
intelligence at the grid edge. The aim is to increase energy
efficiency, reduce waste, and enable demand to match supply.
The backbone of smart energy systems is the smart metre.
These can enable the monitoring of energy use in near-real
time, and send signals to consumers that may incentivize types
of energy use - for example, when the wind is blowing (while
these types of incentives have been available with multi-rate
conventional metres, they become much more sophisticated
with smart metres). They also promise an ability to reward the
saving of energy during certain periods of the day, and can
track actual usage rather than just a day versus night rates.
Buildings can contribute to the smart energy system through
smart building management systems, which optimize load
throughout the day, communicate with the grid operator (or
aggregator), and provide ancillary services.

The World Economic Forum’s Net Zero Carbon Cities initiative is

focused on ways to help reduce the considerable amount of
carbon emissions currently attributable to buildings While
energy efficiency has improved, opportunities remain to better
integrate buildings into overall energy systems. Smart energy
infrastructure can enable smart heat pumps, smart charging
systems, and on-site energy storage devices that support the
integration of renewables - without necessitating heavier
investment in grids. One emerging form of smart energy
infrastructure is distributed intelligence, which is designed to
overcome data latency and decision-making issues. As more
types of assets (including vehicles) become electrified, there are
more usage data points - and more network decisions being
assigned to control centres. If utilities want to provide more
reliable service to banks of electric-vehicle charging points
without overloading networks, for example, distributed
intelligence enables related decisions to be pushed from control
centres to the charging banks themselves - and set an hourly
usage limit on connections rather than managing each charging
point individually. This reduces the risk of overloading systems
due to data latency, and simplifies grid management.

Related insight areas: Sustainable Development, Mobility, Cities

and Urbanization, Internet of Things, Green New Deals, Energy,
Digital Communications, Electricity, Artificial Intelligence

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Net Zero Carbon Cities Briefing, September 2022

 Latest knowledge

International Institute for Sustainable

Development
Indonesia’s Energy Support Measures:
An inventory of incentives impacting
the energy transition
22 June 2022

The report serves as a starting point for the Government of

Indonesia, as well as all stakeholders, concerned citizens,
and the wider public to “follow the money”: to track the flow
of public funding and to understand how public money is
being spent on different types of energy. Through data
visualization of the flow and allocation of the support
measures throughout the period observed, this report also
aims to shed light on government spending on fossil fuels vis-
à-vis renewable energy and clean technology. The
Government of Indonesia provides a range of energy support
measures, incentives, and interventions that stimulate energy
production and consumption, some of which are directed to
support and protect the vulnerable segments of the
population (e.g., poor households and small businesses).

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Net Zero Carbon Cities Briefing, September 2022

References

1. Ultra-Efficient Buildings

China’s Climate Challenge: Financing the Transition to Net Zero, World

Economic Forum, www.weforum.org

2. Compact Cities

Despite Improvements, China’s Air Remains Unsafe, EOS, eos.org

3. Clean Electrification

Inside Clean Energy: E-bike Sales and Sharing are Booming. But Can
They Help Take Cars off the Road?, Inside Climate News,
insideclimatenews.org

4. Urban Resilience

Including nature-based solutions in city-planning will help address the

climate and ecological emergency facing the world, Mott MacDonald ,
www.mottmac.com

5. Urban Emissions

The new consumer dilemma – lean or green?, Raconteur,

www.raconteur.net

6. Smart Energy Infrastructure

Indonesia’s Energy Support Measures: An inventory of incentives

impacting the energy transition, International Institute for Sustainable
Development, www.iisd.org

Acknowledgements

Cover and selected images throughout supplied by Reuters.

Some URLs have been shortened for readability. Please follow the URL
given to visit the source of the article. A full URL can be provided on
request.

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Net Zero Carbon Cities Briefing, September 2022

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