Sustainable urban development is a strategy for cities to grow in a manner that is economically viable, socially equitable, and environmentally responsible, addressing current needs while ensuring future generations can meet theirs. This approach integrates people, activities, buildings, and public spaces into a cohesive network, promoting walkable communities with robust public transit, and creating equilibrium between natural ecosystems and urban settings to avert environmental degradation and urban heat island effects. Key objectives encompass climate change mitigation, enhanced quality of life, efficient resource management, social inclusion, and urban resilience. Cities generate over 70 percent of global energy-related CO2 emissions and approximately 50 percent of global waste, housing nearly half of the world’s population.
As the global urban population is projected to increase significantly in the coming decades, the environmental impact of cities—and their susceptibility to extreme weather events—will grow unless substantial actions are implemented. Cities also offer tangible solutions for addressing climate change and minimizing broader environmental impacts. They often exhibit strong leadership in various domains, establishing sustainability and CO2 reduction targets that frequently surpass those of national governments. Being closely connected to citizens and businesses, cities possess valuable insights into local conditions, positioning them to implement ambitious strategies in vital environmental sectors such as spatial planning, transportation, building, and waste and water management.
Reports indicate that 60 percent of public investment occurs at the subnational level, with nearly a third directed towards transportation systems, emphasizing the crucial role of cities in investing in green and resilient urban infrastructure. Sustainable urban development is essential for cities to combat climate change. It entails integrated urban spaces designed to unify people, activities, buildings, and public areas, with convenient walking and cycling connections and excellent transit services to other parts of the city. This approach means ensuring inclusive access for all individuals to local and citywide opportunities and resources through the most efficient and healthful combinations of mobility modes, at minimal financial and environmental costs, while maintaining high resilience to disruptive events.
Inclusive development forms a vital foundation for enduring sustainability, equity, shared prosperity, and civil society within urban areas. The sustainable urban development sector merges economic, social, and environmental factors to craft cities that fulfill present needs without jeopardizing future generations’ welfare. This encompasses a variety of practices and sectors, including eco-friendly construction, smart energy-efficient planning, waste and water management, integrated public transit, and the conservation of green spaces to cultivate resilient, livable, and inclusive urban environments. The sustainable urban development market is a rapidly expanding sector, propelled by a convergence of technological advancements, environmental issues, and swift global urbanization.
While market size estimates differ across analyses, research suggests that the broader smart city and green building sectors, integral to sustainable urban development, will reach trillions of dollars within the next decade. Currently, over half of the global population—more than 4 billion individuals—resides in cities. This trend is anticipated to persist, with urban populations expected to more than double by 2050, at which point nearly 70 percent of people will live in urban areas. Cities serve as engines for economic growth and development, acting as hubs for GDP generation and private sector employment. As cities expand, they contribute to the prosperity and productivity of entire regions and even nations. However, the swift pace and scale of urbanization pose considerable challenges.
Cities must satisfy the increasing global demand for enhanced job opportunities, efficient infrastructure and services, and affordable housing, particularly for the more than 1 billion individuals living in slums or informal settlements. The pressures on urban areas are further exacerbated by rising global conflict, with over half of forcibly displaced individuals residing in cities and urban locales.
