The new report by the Global Commission on the Economy and Climate argues that cities are one of three key systems of the economy which offer an opportunity to produce greater efficiency, structural transformation and technological change.
The New Climate Economy, a global partnership of research institutes has published its report, Better Growth, Better Climate: The New Climate Economy Report. A central focus of the report is on the role of cities and urbanisation as part of a new climate economy. This forms the core theme of the cities workstream, which is led by LSE Cities’ Graham Floater and Philipp Rode.
The report was produced by a Global Commission of leaders from government, business and finance, advised by leading economists and supported by major international organizations. While many organizations have produced reports on the science of climate change or the costs of denying it, this report shows that climate action is, in fact, compatible with strong economic growth.
The report recommends that in order to create better growth and a safer climate, action should focus on three key economic systems: Cities, Land Use and Energy; and three drivers of change: Resource Efficiency, Infrastructure Investment and Innovation.
Cities are engines of economic growth. They generate around 80% of global economic output and around 70% of global energy use and energy-related GHG emissions. How the world’s largest and fastest-growing cities develop will be critical to the future path of the global economy and climate. But much urban growth today is unplanned and unstructured, with significant economic, social and environmental costs. As pioneering cities across the world are demonstrating, more compact and connected urban development, built around mass public transport, can create cities that are economically dynamic and healthier, and that have lower emissions. Such an approach to urbanisation could reduce urban infrastructure capital requirements by more than $USD3 trillion over the next 15 years.
The Commission has created a 10 point Global Action Plan aimed at governments and businesses: practical recommendations on how, by harnessing the power of markets, we can achieve prosperity and a safer climate together.
For full details on the report and the action plan, click here.