World Economic Forum Research Provides Comprehensive Blueprint for Future-Ready Cities

• The reports guide city leaders on a systems approach to delivering inclusive climate-preparedness through green and traditional infrastructure, transparent and secure technology adoption and new financing models

• Developed by cross-sector experts during the pandemic, the reports collectively provide a blueprint for mission-driven urban transformation

New York, USA, 1 September 2022 – The World Economic Forum has released a series of four reports on how cities can take a systems approach to finance and deliver urban transformation projects in the wake of COVID-19, widening inequality and global conflicts. Each report – on city financing models, technology adoption, urban inclusion, and climate preparedness – guides city leaders with case studies and toolkits to successfully manage digital projects and new financing models to achieve more climate-ready and equitable cities.

The Global Future Council on Cities of Tomorrow, which comprises 45 sector experts from around the world, collaborated throughout the pandemic to help struggling cities build more future-ready communities for all citizens.

“Cities are on the frontlines of climate mitigation and adaptation. They are also under pressure to improve residents’ standard of living and increase community cohesion while progressing towards sustainable development,” said Alice Charles, Lead, Urban Transformation, World Economic Forum. “To meet these high expectations, cities need to develop strategies using a systems perspective to deliver net-zero carbon and climate-resilient urban infrastructure. The Global Future Council on Cities has done an extraordinary job with these reports to provide cities with the tools they need right now.”

Implementing a systems approach across urban sectors:

• Rethinking City Revenue and Finance: A systems-approach to financing urban transformation depends on access to a diverse range of revenue sources to advance both traditional and green infrastructure, which also must include investment in operations and maintenance. The report is informed by a survey of 10 city administrations on potential revenue streams, planned initiatives and the policy interventions required to ensure that projects are financially viable.

For example, with support from UNHabitat and UNDP, Somaliland implemented a robust property tax and collection system to pay for infrastructure improvements, which increased the capital city’s property tax revenue from $384,115 in 2008 to close to $1.5 million in 2018. This represents up to one third of the city’s total revenue.

• Using Digital Technology for a Green and Just Recovery in Cities: To move towards a systems approach, this report recommends that city leaders should start by asking, “What are the most pressing unmet needs and challenges in cities” that technology can improve, rather than, “What can we do with digital technologies?”. A 10-step action plan and 31 case studies showcase best practices and innovative digital solutions that have already been applied in 28 cities worldwide.

For example, ModeliScale is an energy network digital twin that allows simulation of the future energy grid. The model covers multiple inputs and outputs, including buildings, solar panels, electric vehicles and storage. This realistic view of a city’s energy needs enables better planning for investment, operations and maintenance.

• Accelerating Urban Inclusion for a Just Recovery: Equity and inclusion are at the heart of a systems approach to every aspect of recovery and transformation. The report provides a 10-step action plan for urban inclusion to enable city leaders to create more inclusive spatial, digital, social/institutional and economic realms.

For example, São Paulo, Brazil, has successfully introduced an instrument called “Outorga Onerosa“, which offers property owners a density bonus to increase the maximum allowable development on a site in exchange for either direct funds or in-kind support for specified public policy goals.

• Delivering Climate-Resilient Cities Using a Systems Approach: This report finds that cities need to engage with relevant stakeholders from government, business, academia and civil society that interact with the urban value chain. The report provides a five-step action plan to guide cities in adopting a systems approach to climate-resilient urban infrastructure delivery.

For example, Mexico City is leading the way in Latin America by financing green infrastructure with social impact bonds. The success of these bonds is based in part on certification by internationally independent experts who also periodically collect and publish data on performance indicators.

Together the four reports provide a roadmap for cities to become more equitable and resilient to the shocks and stresses caused by global conflict, climate change and rapidly changing technologies. As the Global Future Council co-chairs Carlo Ratti and Maimunah Mohd Sharif point out, preparedness on one front often has unexpected benefits elsewhere. In the foreword to the climate preparedness report, they write: “Systems approaches are complex – more connections lead to more complications – yet the successes of cities such as Melbourne, Fukuoka and Helsinki demonstrate that extraordinary rewards can be attained, especially if siloed thinking is dismantled. The solution to a transport query might lie in housing; the unanticipated positive impact of a new park might be felt in a nearby water treatment plant. By pursuing a systems approach, we can bring fresh ideas to fields as diverse as housing, energy, mobility, public and green spaces, water treatment, stormwater management, waste management and many others.”

As stated by Global Future Council members

Yvonne Aki-Sawyerr, Mayor, Freetown City Council

“Climate change for cities means more frequent and dangerous extreme weather events for residents, such as heat, massive flooding and out-of-control wildfires. A systems approach can guide actions that mitigate climate risk, prevent climate disasters and build resilient systems and communities against the worst effects of climate change.”

Niels Lund, Vice-President, Global Prevention and Health Promotion, Novo Nordisk

“The private sector has an important role to play in making innovation work for everyone, especially those that are neglected by business as usual. One of the strengths of this report [Accelerating Urban Inclusion for a Just Recovery] is that it reflects the perspectives of a wide range of stakeholders, including businesses, that are leading the way in terms of urban inclusion.”

Robert Muggah, Co-Founder, SecDev Group and Igarape Institute

“Too often ‘smart cities’ focus on the large-scale deployment of digital technologies in all domains of life. Such a technocratic approach focuses too much on technology and its mesmerizing applications. This report [Using Digital Technology to Ensure a Green and Just Recovery in Cities] proposes an alternative approach that focuses on enabling city administrations to proactively address unmet needs in cities with digital technologies, while ensuring privacy and data protection by design.”

Hawazen Esber, Chief Executive Officer, Communities, Majid Al Futtaim Holding

Public-private partnerships (PPP) “offer the potential to deliver essential facilities and services to citizens. For every dollar of project value, developers typically invest the same dollar amount in both hard and soft infrastructure. For government and local authorities, planned residential or mixed-use communities not only help alleviate the housing shortfall but also, where the community is sizeable, include the provision of healthcare, educational and entertainment facilities that benefit both residents and the wider community. Enhanced transport links can also be part of the PPP delivery scope”

Global Future Council on Cities of Tomorrow

The Global Future Councils serve as a brain trust for leaders from government, business and civil society and support the Forum’s mission by bringing together experts bound by a shared goal to discuss the most critical issues, generate insights and analysis, and collaborate in shaping agendas.