Climate Tech Is Reducing Emissions And Improving Urban Landscapes And Lives

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If we hope to see a climate-hardy world in the years to come, we must recast the way we design our urban environments — they must become ecologically sound and robust sustainable spaces. Possible pathways to achieve such goals are winding and tenuous, sure, and an array of novel innovations are needed to make urban net zero goals viable. Admittedly, progress toward urban decarbonization has been periodically disrupted and influenced by the ever-shifting landscape of climate change, geopolitical dynamics, and supply chain challenges. Yet life-changing solutions are emerging from the climate tech sector, and these solutions can transform cities across the globe.

With targeted research and development, climate tech is offering urban planners, architectural engineers, developers, and contractors a method to focus on a viable low-emissions urban environment. Indeed, clean energy innovation is no longer rare; urban leaders are now ready to deliver practical, climate tech-based solutions in their quest to create thriving, adaptable, and vertically integrated cities.

By channeling the power of climate tech, promoting transformative policies, and welcoming community input and policy, urban leaders can help us all to resist what is sometimes described an inevitable trajectory past the Paris Agreement goals of a 1.5°C temperature increase. Instead, we can reimagine our cities as a green oasis.

Moving from Burden to Epiphany: Urban Centers & Climate Tech

Cities are facing specific and often devasting consequences from the climate crisis – urban areas contribute 70% of global CO2 emissions and consume a staggering 75% of the world’s energy. This impact is set to grow due to rapid expansion: by 2050, more than two-thirds of the global population – around 6.5 billion people – will call cities their home. This will place immense strain on resources, demanding even more energy and intensifying urban environmental footprints.

What actions can cities take with their burden of CO2 emissions and the enormous amounts of energy they consume? Urban dilemmas surrounding decarbonization aren’t hopeless. Investments are needed to redirect urban landscapes toward net zero trajectories. Here’s an overview of recent publications from the Center for Urban Transformation at the World Economic Forum that offer some answers about cities, energy consumption, and climate tech.

Climate tech investments to date: Between 2020 and 2021, climate tech investments soared to $56 billion. Supportive policies and innovative financing models are vital for climate tech to thrive. Governments and private sector organizations must also collaborate to create incentives for green investments and ensure that regulatory frameworks facilitate, rather than hinder, sustainable development. In the US, the Inflation Reduction Act has sought to encourage wide-scale investment in the low carbon energy economy, enabling investments in clean technology to grow by 225% up to $303 billion since its enactment. As a result, big strides are being made. According to BNEF, global clean energy financing jumped by 17% to $1.8 trillion in 2023. Meanwhile, investment in the clean energy supply chain reached $135 billion and the electrified transport sector saw an increase in funding of more than 8% year-on-year.

Cities of the future and decarbonization: About 60% of the buildings that will exist in 2050 have not been built yet, so cities have a unique opportunity and responsibility to approach development in a smarter, more sustainable and more resilient way. This means building systems that can withstand future challenges. Experts estimate that global spending on the transition, including areas such as retrofitting buildings, could reach $275 trillion between 2021 and 2050. Bridging this funding gap will require game-changing climate technology solutions to accelerate the decarbonization of our urban environments.

Innovative sources for urban decarbonization: The pursuit of innovative clean energy technologies is essential for addressing the climate crisis and achieving sustainability goals. By investing in research, development and deployment of low-carbon solutions, countries can drive economic growth, enhance energy security and mitigate the impacts of climate change. To decarbonize, cities must also embrace innovative building materials, solar panels, green roofs, and nature-based climate technologies. A huge companion challenge lies in recycling large amounts of materials efficiently.

New regs spur climate tech innovation: New regulations are being implemented around the world to address the environmental impact of construction materials. This is compelling developers to reduce their carbon emissions to meet building standards. With enough support and investment from the public and private sectors, climate tech could help make the world’s cities more sustainable alongside city requirements.

The connection between buildings and embodied carbon: Understanding and addressing embodied carbon – the total GHG emissions generated to produce a building’s materials – is crucial. Embodied carbon can account for 80-90% of a real estate developer’s annual emissions but is often overshadowed by emissions from heating, cooling, and lighting.

What clean tech can do for cities: Aside from enabling the expansion and scalability of promising new resources, innovation can also have an invaluable impact on urban centers by improving the sustainability of existing resources. Current climate tech innovations tackle embodied carbon, make reclaimed materials more usable, and adapt green architecture to develop nature-based building materials.

Energy consumption reductions: As outlined in the IEA’s report on Energy Technology Perspectives, innovation is key to the sustainable development scenario. About 35% of CO2 reductions by 2070 depend on technologies in early stages, requiring more R&D, while another 40% depend on yet-to-be-deployed technologies. These advancements reduce energy consumption and create spaces that promote health and wellbeing. LEED-certified buildings are designed to be 25-30% more energy-efficient than conventional buildings. Tackling the climate crisis necessitates a fundamental reshaping of the existing energy framework, a groundbreaking shift that must consider global dependence on existing energy resources and infrastructure.

Nature-based construction materials: Nature-based construction technology can significantly decarbonize cities. Integrating biophilic design, which brings elements of nature into urban spaces, further enhances the quality of city living. Reclaimed lumber can significantly reduce timber’s carbon footprint and the demand for new timber. This not only preserves forests but also minimizes waste. A report in the journal Nature suggests that greening just 35% of the EU’s urban areas could reduce CO2 emissions by as much as 55.8 million tons annually. Incorporating nature-based building materials makes cities more comfortable to live in, helps clean the air, improves insulation, reduces pollution, and encourages ecosystems critical for habitats to thrive.

Final Thoughts

Navigating the journey towards net zero is not a linear path, the WEF warns. Yet, amidst this complexity, climate tech emerges as a “savior” and a critical facilitator in resource management. In fact, climate tech innovation holds the promise of expediting the processes of decarbonization and energy transition, propelling cities towards a sustainable future.

While some countries may be leading the race to develop and scale such cutting-edge solutions, the transition to a low-carbon economy is not solely the responsibility of individual nations. It requires collective action and collaboration on a global scale. Recognizing this reality, key global policymakers and business leaders are seizing every opportunity to contribute to the expansion of low-carbon climate technologies.